DECEMBER 2023
YEAR IN REVIEW
Looking Back at a Year of Success with Andrew Skehan and Home Franchise Concepts PG. 14 Moran Family of Brands Accelerates Expansion PG. 16 Navigating Growth and Innovation in 2023 with Wetzel’s Pretzels PG. 20 Spavia’s Year of Growth: A Journey of Redefining Wellness and Making a Positive Impact PG. 22
2024 IFA ANNUAL FEBRUARY 17–20
PHOENIX, AZ
IFA Annual Convention Preview PG. 10
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Are You Ready for 2023 Year-End? As the end of the year approaches, it’s important to ensure that your payroll year-end information is up to date. As you finalize your payroll activities and set compensation and benefits for 2024, use this year-end payroll checklist, which includes numerous steps for year-end payroll reporting and taxation, to help you stay on track.
Verify Business Information F State and federal employer identification number (EIN)
Verify Employee Information and Policies F Confirm employees’ identifying information, including:
F Company name and address
•
Full name
F State unemployment account number(s)
•
Social Security number
•
Address
•
Any additional contact information
Set Compensation and Year-End Bonuses Compensation for Next Year
F Verify and inform employees about unused benefits,
including:
F Set expected pay raises for your staff as you prepare
•
Vacation, sick days, or personal leave time
your budget for the coming year. The amount you offer depends on what you can afford after factoring in costs such as current employee compensation and payroll taxes.
•
Flexible spending accounts (FSAs)
Bonuses F If you are a cash-basis business: Deduct the bonuses
in the year in which they are paid. If you pay bonuses in 2023, they’re deductible for 2023. If you pay 2023 bonuses in 2024, they’re deductible in 2024. F If you are an accrual-basis business: Bonuses declared
(and accrued) before the end of the year are deductible this year if they are paid within 2½ months after the close of the year (provided that the employee is only required to be employed on the bonus declaration date and not on the bonus payment date). However, bonuses paid to S-corporation shareholder-employees are not deductible until paid. For owner-employees in a C-corporation, the bonus is deductible only when paid in the case of a personal service corporation or for the majority (more than 50 percent) owners.
Looking for the Full Year-End 2023 Checklist? Click or scan to download now.
F Review and update the following for next year:
•
2024 holidays
•
Time off policies
•
Employee schedules
F Confirm employees’ identifying information, including:
•
Full name
•
Social Security number
•
Address
•
Any additional contact information
F Determine payroll policies for 2024 and inform
employees F Review previous year-end pay stubs and past pay periods
to ensure that all amounts are logged accurately by verifying: •
Employee wage amounts
•
Benefits deductions
•
Child support or other miscellaneous deductions
•
Disability or other benefits payments
•
Special tax exemptions that may have occurred throughout the calendar year
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CONTENTS DECEMBER 2023 • VOLUME 55 • ISSUE 6
FEATURES
2024 IFA ANNUAL
10
Franchise Smarter: The 64th Annual IFA Convention
14
FEBRUARY 17–20
Looking Back at a Year of Success with Andrew Skehan and Home Franchise Concepts
By Andrew Skehan, Home Franchise Concepts
16
Moran Family of Brands Accelerates Expansion
By Pete Baldine, Moran Family of Brands
22
Spavia’s Year of Growth: A Journey of Redefining Wellness and Making a Positive Impact
20
Navigating Growth and Innovation in 2023 with Wetzel’s Pretzels
By Vincent Montanelli, Wetzel’s Pretzels
By Marty Langenderfer, Spavia Day Spa
26
Big Fun in the Big Easy: The Emerging Franchisor Conference in New Orleans was a Hit By Michelle Lange, IFA
4 FRANCHISING WORLD / December 2023
PHOENIX, AZ
®
WORLD
FRANCHISING INDUSTRY SPOTLIGHT AUTOMOTIVE SERVICES 28
Industry Spotlight: Franchised Automotive Services Sector Remain Stable
FRANCHISING GIVES BACK 38
The Power of Franchise Philanthropy: Bringing Joy this Holiday Season and All Year Long By Soraya Rivera-Moya, Ronald McDonald House Charities of South Florida
By Khadija Cochinwala, FRANdata
Automotive Franchising: Bright Future Promises Stability After Challenging Year for Auto Industry
INDUSTRY INSIGHTS 5 Questions You Need to Answer to Find the Right Franchise for You
By Chris DeJong, Big Blue Swim School
FINANCE
COLUMNS 4
From the Desk of IFA’s President and CEO
34
6
By Lisa Hafetz, Always Best Care
42
A Smart Investment for Business Success
36
Stopping the Scam: IRS Cracking Down on False ERC Claims
By Tricia Petteys, Payroll Vault Franchising, LLC
Associate Publisher Jennifer Brandeen Editor-in-Chief Courtney Pettinella MARKETING & PRODUCTION:
Graphic Designer Catherine Marinoff
40
TOPICS
Publisher Matt Haller
Creative Director Heather Bartlow
32
By Thomas A. Wolfe, Ziebart
EDITORIAL:
People & News Featured Franchisees
46
ADVERTISING & CIRCULATION: Advertising Senior Director Carly Wooley Technology & Operations Director Sara Williamson Manager, Advertising Lauren Smith
Franchising World (ISSN 1041-7311) “Volume 55, Number 6,” is published by the International Franchise Association, 1900 K St., N.W., Suite 700, Washington, D.C. 20006. For advertising information, call: IFA Advertising Department (202) 628-8000. Franchising World welcomes views and comments from its readers. Correspondence should be addressed to Editor, c/o Franchising World at 1900 K St., N.W., Suite 700, Washington, D.C. 20006. Franchising World reserves the right to edit letters for publication and also reserves the right to refuse advertising. With the publication of Franchising World, IFA is not offering legal, financial or any other professional advice or endorsements. Readers are encouraged to seek advice from professionals in specialized fields before acting on any information published herein. The views and opinions expressed in Franchising World are those of the author(s) and do not necessarily reflect the views and opinions of IFA members or staff. Copyright © 2023 International Franchise Association.
FranPAC Report Card
48
Welcome New IFA Members December 2023 / FRANCHISING WORLD 5
From the Desk of IFA President and CEO Matt Haller
W
hat a year it’s been for the International Franchise Association — and for franchising in general. Franchising remains a powerful business model for prospective business owners. In fact, our 2023 Franchising Economic Outlook report showed that franchise unit and job growth continues to outpace pre-pandemic levels, delivering vital jobs and business ownership opportunities across the United States. Almost 15,000 franchise establishment units were added in 2023, bringing the total to 805,000 units in the U.S. Franchising employment grew this year, too, adding nearly 254,000 jobs. Leading the growth are service-based industries and quick-service restaurants, which have witnessed higher growth than other industries. As for IFA, we stood firm in our mission to protect, enhance and promote franchising, and continued to support your growth and connect our community through events, advocacy and education. This year’s IFA Annual Convention in Las Vegas was our biggest and best yet and brought in 4,100 franchise professionals from over 40 countries. Additionally, we welcomed eight new board members at our first 2023 IFA Board of Directors meeting, and we awarded six individuals with the highest honors for their contributions to franchising. We built upon our renewed commitment to in-person events with plenty of other major events in 2023, including a slate of successful expositions across the country with MFV Comexposium, a gathering of the franchise legal community at the IFA Legal Symposium, and bringing together hundreds of advocates for the IFA Advocacy Summit. Standing side by side with you, our lobbying efforts over the past year were quite successful, resulting in: • Filing a legal challenge to the NLRB’s final joint employer rule and laying the groundwork for Congress to overturn the rule via the Congressional Review Act • Stopping the nomination of Julie Su for U.S. labor secretary. As a result of IFA’s advocacy, the Senate never held a vote for her confirmation due to bipartisan opposition. • Generating more than 5,000 positive comments in response to the Federal Trade Commission’s (FTC) Request for Information about the state of the franchisor/franchisee relationship and getting dozens of bipartisan members of Congress to write to the FTC about protecting the franchise model • State policy victories in Arizona, where we galvanized bipartisan opposition to a bill that would undermine current franchise contracts and cause uneven quality and brand standards; in Arkansas, where we helped pass an amended version of legislation that neutralized a change that could have devastated franchise operations; and in California, where we advocated for a legislative agreement that protects the franchise model by eliminating the creation of an industry-specific regulatory body and the joint employer threat • Strengthening policy positions by completing major research on the impacts of inflation, the joint employer standard, the labor shortage, and more • Increasing media attention and presence for dozens of franchisee voices, which were featured in major outlets across the country By the numbers, according to FRANdata, IFA’s advocacy work on behalf of the franchise business model has: • Preserved $8.8 billion of economic output • Preserved $111.6 billion in operational expenditures • Resulted in the growth of the industry by 70,000 new franchise businesses • Saved 1.9 million jobs • Protected $15.6 billion in business equity Education remained a top priority throughout 2023 as we grew our Certified Franchise Executive (CFE) program and launched the IFA Academy to provide members with professional development when and where they want it, including adding several new partners in academia and across the membership to deliver the CFE program. We also continue to educate the public about the franchise business model through the IFA Foundation’s VetFran and Diversity Institute programs, providing “Franchising 101” classes across the country with a specific focus on reaching veterans and members of underrepresented communities. The Foundation also continued to give back, partnering with IFA member Meals of Hope during the 2023 IFA Annual Convention and Blue Star Families during the IFA Advocacy Summit to make a difference in the communities that need it most. Last but certainly not least, we welcomed several new staff members to support our mission. Thank you for another incredible year — we couldn’t do any of this essential work without the support of all of our fantastic members. Sincerely, Matt Haller President and CEO, International Franchise Association
6 FRANCHISING WORLD / December 2023
IFA’S MISSION
The International Franchise Association protects, enhances and promotes franchising.
IFA’S VISION
The preeminent voice and acknowledged leader for franchising worldwide.
EXECUTIVE COMMITTEE David Humphrey Bill Hall, CFE Sam Ballas, CFE Ignite Fitness Holdings Treats Investment, LLC East Coast Wings Chair Treasurer + Grill Chair, Franchisor Steve Hockett Dan Monaghan, CFE Forum Great Clips Clear Summit Group Vice Chair Chair, IFA Foundation Jerry Akers Board of Trustees Great Clips of Iowa/ Mary Kennedy Nebraska Thompson, CFE Steve White Chair, Franchisee PuroClean Neighborly Forum Vice Chair, IFA Second Vice Chair Foundation Board of Geoff Seiber Trustees Charlie Chase FranFund, Inc. FirstService Brands, Chair, Supplier Forum Inc. and California Advisory Board Closets, Inc. Immediate Past Chair
BOARD OF DIRECTORS Tom Baber IHOP (Franchisee) Marcus Banks Wyndham Hotels and Resorts, Inc.
Ericka Garza Michael Gonda McDonald’s Daniel Halpern Jackmont Hospitality
Rob Branca Branded Management Dustin Hansen, CFE InXpress Group, Inc. Michael Browning, Jr. Jon Hixson Yum! Brands Unleashed Brands Mitch Cohen Jersey Mike’s Subs; Sola Salon Studios
Jim Holthouser Focus Brands
Todd Recknagel, CFE Three20 Capital Group Meg Roberts, CFE The Lash Lounge Gary Robins The G & C Robins Company Al Rodriguez Sport Clips Christina Russell, CFE
Azim Saju HDG Hotels Harvey Homsey, CFE Express Services, Inc. Luis San Miguel Adam Contos, CFE Area 15 Ventures Fresh Dining Concepts Earsa Jackson, CFE Clark Hill Strasburger Jyoti Sarolia, CFE Randy Cross, CFE Fish Window Cleaning Ellis Hospitality Group Tamra Kennedy Twin City TJ’s, Inc. Heidi Schauer Kimberly Crowell The Wendy’s Company Kalo Companies Aslam Khan Falcon Holdings Michael Seid, CFE Steve Danon CFW Clinics and One Restaurant Brands Tom Krouse Family Health International Donatos Pizzeria LLC Stephen Shields Jay Duke Todd Leff Express Employment BDO USA, LLP Hand & Stone Massage (Franchisee) and Facial Spa Clint Ehlers Omar Simmons FASTSIGNS of Willow Exaltare Capital Grove, PA and Cherry Ned Lyerly, CFE Starheel Ventures Partners Hill, NJ Dennis Maple Jeffrey Sopp Goddard Systems, Inc. Kensington Hill Partners Erin Martin Little Caesars Carolyn Thurston, Sean Falk, CFE Enterprises, Inc. CFE Just for Your Paws, Wisdom Senior Care LLC Kevin Morris Domino’s Pizza LLC Charles Watson Ron Feldman, CFE Tropical Smoothie Café ApplePie Capital Dave Mortensen Self Esteem Brands Graham Weihmiller, Karen Finberg CFE Marriott International Indi Nandhra, CFE BNI Mathnasium Greg Flynn (Franchisee) Tim Williams Flynn Restaurant Williams Fried Chicken Group and Flynn Caroline Oyler Properties Papa John’s Christopher Fuller Inspire Brands David Pepper Choice Hotels Robin Gagnon, CFE We Sell Restaurants Tom Portesy MFV Expositions Shane Evans, CFE Massage Heights Franchising
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PEOPLE & NEWS Top
5
People ON THE MOVE
Jackie Smith
Kevin Vesely
Jackie Smith is now the vice president of marketing for Pizza Factory.
Best Life Brands has welcomed Kevin Vesely as the new chief financial officer.
Brooks Speirs
Bojangles has appointed Brooks Speirs as vice president of franchise sales.
Dennis Leskowski
Goldfish Swim School Franchising, LLC has announced Dennis Leskowski as the chief technology officer.
Larisa Walega
Larisa Walega will now serve as senior vice president and chief growth officer for Ziebart.
Brands Expanding
70 Tint World Automotive Styling Centers continues their rapid growth in North Carolina with the opening of their newest location in North Raleigh. Tint World North Raleigh is owned by former software professional and entrepreneur Nicklaus Wynne. His location will introduce North Raleigh and neighboring communities to a robust selection of services and premium aftermarket solutions such as custom audio and video systems, wheels and tires, security upgrades, industry leading window tinting, paint protection films and more.
8 FRANCHISING WORLD / December 2023
ZIPS Cleaners has opened its 70th location in Newport News, Va. The new store is the fourth location operated by Tidewater Cleaners LLC, a franchise entity owned by partners Tony Akaras and Shahid Hashmi. The partners opened their first ZIPS store in Essex, Md., in 2014. Earlier this year, they purchased a second location in College Park, Md., from another franchisee, and opened a third in Glen Burnie, Md. They plan to open at least two more ZIPS locations in Virginia and Maryland over the next two years.
PEOPLE & NEWS Awards, Honors & Achievements Neighborly recognized its top performing franchise owners during the brand’s 42nd Annual Reunion Conference in October in Denver, Colorado, with more than 3,500 in attendance. The 2023 Neighborly Franchise of the Year award winners included: • Aire Serv: Sergio Rodriguez • Dryer Vent Wizard: Ed Rauch • Five Star Painting: Dan McMillan • Glass Doctor: Larry Patterson • The Grounds Guys: Jeff Baker • HouseMaster: Sergio Angione • Molly Maid: Sandy and Bill Willis • Mosquito Joe: Trey Powell • Mr. Appliance: Stephen and Kristy Hughes • Mr. Electric: Jeremy and Jenny Smith • Mr. Handyman: Cindy Parks-Talley • Mr. Rooter Plumbing: Buddy Carver, Synda Carver and Michael Medders • Precision Garage Door Service: Doug Kale • Rainbow Restoration: John Wheeler • Real Property Management: Sam Case • ShelfGenie: Kelly Barefoot • Window Genie: Gary Eenigenburg • Junk King: Ed Fogarty
Five Star Franchising recognized its high-achieving franchise owners during its annual Home Services Summit at the Caribe Royale in Orlando, Florida. Winners included: Franchise of the Year for the location(s) or franchise owner with the best overall performance and growth throughout the year: • 1-800-Packouts: David Collier (Southeastern Virginia) • Bio-One: Rebecca Phillips (Cherokee County, West Atlanta, and East Atlanta, Georgia) • Five Star Bath Solutions: Joe McSpadden (Marietta, Georgia) • Gotcha Covered: Svet and Larry Fussell (Winter Garden, Florida) • Mosquito Shield: Tina and Rick Brogan (Southeastern Pennsylvania) The D.R.I.V.E. Award for the franchise owner who best exemplifies the Five Star Franchising values (Driven, Real, Innovative, Vital and Enthusiastic) throughout the year: • 1-800-Packouts: Todd Tyler (San Diego) • Bio-One: John and Jen Symons (Charlotte, North Carolina) • Five Star Bath Solutions: Enrique Goldsmit and Craig Langdon (Toronto, Ontario) • Gotcha Covered: Becky O’Meara (Northwest Columbus, Ohio) • Mosquito Shield: Carrie Simpson (Dallas-Fort Worth)
Big Frog Custom T-Shirts & More has announced its 15th business anniversary. For a decade and a half, Big Frog has been at the forefront of delivering high-quality, customdesigned apparel to communities across the United States, with recent expansion into Canada.
Franchising Gives Back MY SALON Suite has raised more than $120,000 this year for St. Jude Children’s Research Hospital through the brand’s Suite Relief Fund™, an annual fundraiser held in September in honor of Childhood Cancer Awareness Month. This marks the fifth year of the fundraiser, and the third consecutive year the brand has surpassed its goal to raise more than $120,000. The long-standing partnership between St. Jude Children’s Research Hospital and MY SALON Suite began with the launch of the Suite Relief Fund™ in 2018. Now, the Suite Relief Fund has raised over $600,000 for St. Jude Children’s Research Hospital since the partnership’s inception. Continued support through financial donations helps St. Jude provide treatment, travel, housing and food to the more than 400,000 kids with cancer around the world each year, at no charge to their families.
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FEATURE
FRANCHISE SMARTER: THE 64TH ANNUAL IFA CONVENTION
2024 IFA ANNUAL FEBRUARY 17–20
PHOENIX, AZ
Register now for the 2024 IFA Annual Convention, Feb. 17-20 in Phoenix, Arizona
10 FRANCHISING WORLD / December 2023
I
f your New Year’s resolution for 2024 is to help your franchise grow and thrive, there’s one place you can go to get a major head start on achieving your goal: mark your calendar for February 17-20, 2024, for the IFA Annual Convention in Phoenix, Arizona. When it comes to growing your franchise, it’s time to start working SMARTer — not harder. And this year’s Annual Convention, themed Franchise SMARTer, will teach you how to do just that. Join us in Phoenix for the insights, education, solutions, and networking opportunities you need to increase impact and optimize operations for your franchise business. It’s never too late to start working smarter — for your career, for your business, and for your brand.
“
This year, everything will revolve around franchising SMARTer, helping each attendee develop their business — whether one location or a multinational brand — efficiently and in the right way. ”
As franchising’s #1 annual event — rated “Best Event” by Entrepreneur Media — IFA’s Annual Convention reliably draws the biggest names in the franchising world. This year’s lineup includes inspirational speakers including Founder of Culture for Profit Rafi Mohammed, bestselling author and longtime associate editor for Sports Illustrated Don Yaeger, and Global Practice Leader of Execution for FranklinCovey Chris McChesney. In years past, we’ve welcomed everyone from NBA star and Big Chicken franchisor Shaquille O’Neal to NFL legend Drew Brees and other high-impact speakers — not to mention the unparalleled networking opportunities. Growing every year, the 2023 Convention was the biggest and best yet, with 4,100 participants, featuring powerhouse breakout sessions, high impact networking receptions, and truly remarkable exhibitors — and our 2024 Convention is on track to be even more impressive. “The IFA Annual Convention is our chance to gather the entire franchise community in one place to learn and grow together,” says IFA President and CEO Matt Haller. “This year, everything will revolve around
franchising SMARTer, helping each attendee develop their business — whether one location or a multinational brand — efficiently and in the right way. We look forward to convening once again for the best event in franchising.”
What is the IFA Annual Convention?
International Franchise Association Annual Conventions are packed with some of the best programming in franchising, boasting a backto-back schedule of immersive workshops, educational breakout sessions, forum meetings, thought leadership roundtable discussions, and community service opportunities. Every year, IFA hosts a top-tier list of guests and speakers who deliver inspiration, information, and education tailored specifically to the franchise community. In 2023, we pulled together an exciting lineup of convention keynote speakers, including McDonald’s CEO Chris Kempczinski, Dine Brands CEO John Peyton, Bitty and Beau’s founders Amy and Ben Wright, former director of executive recruiting for Google Ginny Clarke, and Emmy-winning mentalist Oz Pearlman. A few highlights from the 2024 schedule include: • Rafi Mohammed. Sunday, Feb. 18 Super Session: “Implement Good-Better-Best Pricing to Generate Higher Profits.” Mohammed, founder of Culture of Profit, a Cambridge, Massachusetts-based company that consults with businesses to help develop and improve pricing strategies, is author of The 1% Windfall: How Successful Companies Use Price to Profit and Grow. • Don Yaeger. Monday, Feb. 19 Closing Keynote; Tuesday, Feb. 20 Immersive Workshop: “The Art of Story Telling: Increase Influence, Captivate Customers, Develop Deeper Relationships.” Eleven-time New York Times bestselling author, host of the Corporate Competitor Podcast, executive leadership coach, and longtime associate editor for Sports Illustrated, Yaeger has fashioned a career as one of America’s most provocative thought leaders.
December 2023 / FRANCHISING WORLD 11
• Chris McChesney. Tuesday, Feb. 20 Immersive Workshop: “The Four Disciplines of Execution: Achieving Wildly Important Goals.” As global practice leader of execution for FranklinCovey Co., McChesney is one of the primary developers of the 4 Disciplines of Execution and co-author of the bestselling book The 4 Disciplines of Execution: Achieving Your Wildly Important Goals. “Year after year, the IFA Annual Convention is an incredible event,” says Dan Monaghan, founder of Clear Summit Group. “The 2023 convention was filled with so many amazing stories and people.”
“
Year after year, the IFA Annual Convention is an incredible event,” says Dan Monaghan, founder of Clear Summit Group. “The 2023 convention was filled with so many amazing stories and people.”
Who should plan to attend the Annual Convention?
The IFA Annual Convention is for anyone and everyone in the franchise family. No matter where you are in your franchising journey, our educational tracks will equip you with sustainable, long-term strategies to stay ahead of the competition. In addition to content developed with CEOs and franchise developers in mind, you’ll find sessions tailored for operations and marketing leaders as well as finance, real estate, and tech professionals. Our offerings range from: • Emerging Franchisor Bootcamp sessions for those just getting started or wanting to learn more about what franchising has to offer • Intimate relationship development opportunities and networking receptions to connect mid-career franchisors to all the right people, from franchise brand high rollers to hand-picked and vetted suppliers • Certified education sessions for those working toward their Certified Franchise Executive (CFE) designation, the standard of excellence for franchise education. Come early and fast-track your CFE
12 FRANCHISING WORLD / December 2023
Register for the 2024 IFA Annual Convention at franchise.org/convention.
with CFE Special Sessions designed to satisfy the certification’s participation and engagement criteria
Why is this event a can’t-miss?
The Annual Convention offers a unique opportunity to build a true franchising community — as the saying goes, with franchising you’re in business for yourself, but not by yourself. Among fellow attendees and exhibitors, you’ll meet like-minded entrepreneurs, leaders, and industry trailblazers. You can begin to forge those relationships at Franchise City, our one-stop shop trade show, filled with exhibits, demos, and showcases from leading brands and franchise suppliers from around the world — there’s no place like it. You’ll develop new connections with brands and peers, and meet new vendors and partners to help grow your business and expand your impact. You can tailor your Annual Convention sessions to suit the specific needs of your business and your team. IFA offers nine educational tracks offering insights from industry leaders, panel discussions, summits, and breakout sessions, including: • Emerging Franchisor • Finance • Franchisee • FranDev • Industry Trends • International • Marketing • Operations • Real Estate The most successful franchises aren’t built by accident. They’re built by those who franchise smarter, employing the exact strategies this year’s industry leaders can’t wait to share with you. Save the date for the next can’t-miss franchising event. Registration for the 2024 IFA Annual Convention is now open at franchise.org/convention. 7
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FEATURE
LOOKING BACK AT A YEAR OF SUCCESS WITH ANDREW SKEHAN AND HOME FRANCHISE CONCEPTS By Andrew Skehan, Home Franchise Concepts
How the Home Franchise Concepts team excelled in 2023 growth development while reaching ambitious goals with the help of clear communication, brand-wide updates and data analytics
A
s 2023 comes to an end, Home Franchise Concepts is proud to look back at a year of notable accomplishments and advancements in development. For over 30 years, Home Franchise Concepts has been one of the world’s largest franchising systems in the home improvement goods and services space. This year, the family of brands which includes Budget Blinds®, The Tailored Closet™, PremierGarage®, Concrete Craft®, AdvantaClean®, Lightspeed Restoration™, Kitchen Tune-Up®, Bath Tune-Up®, Two Maids® and
14 FRANCHISING WORLD / December 2023
Aussie Pet Mobile®, has surpassed mid-year development goals and is set to expand in more than 220 territories by year’s end with new leadership and business strategies. Stepping into the role of President and CEO just over a year ago, I have been able to grow with the company and work with the leadership team to drive brand expansion, innovation and awareness. Our C-Suite team’s leadership embodies the brand values of consideration, cooperation, communication, innovation, and accountability. One goal of mine this year was to work closely with the brand leaders
consumer data to drive decision making has greatly contributed to our 2023 accomplishments across the brand portfolio. Through strong leadership and strategy, we have increased the presence of all 10 brands extensively, reaching 50 percent of the company’s growth goals prior to the mid-year mark with 118 new location openings in Q1 and Q2. In addition to hitting mid-year development goals, we expanded into the $210 billion restoration industry by adding Lightspeed Restoration to the brand portfolio. Since July, this new franchise brand has opened multiple locations across the nation and has ambitious plans for additional expansion in 2024 to fulfill consumer demand for fast response cleaning and restoration. This brand-wide trend of expansion is expected to continue with clear communication and effective guidance to meet the projected goals for the year. to gain a better understanding of where we could be more effective and what capabilities and tactics were needed to make that happen. I had the opportunity to work with both new and seasoned members within brand leadership teams and guide them towards the most effective route for growth.
“
Through strong leadership and strategy, we have increased the presence of all 10 brands extensively, reaching 50 percent of the company’s growth goals prior to the mid-year mark with 118 new location openings in Q1 and Q2.”
In order to accelerate growth in our target areas, we also implemented the use of multiple new CRM platforms this year to collect and analyze data, which was then shared throughout teams as a quantitative representation of audience reach and sales performance. Utilizing this
“
At Home Franchise Concepts, we aspire to run businesses with a personalized approach, providing both franchisees and consumers with support and community.”
At Home Franchise Concepts, we aspire to run businesses with a personalized approach, providing both franchisees and consumers with support and community. I am thankful to the leadership team, our associates, franchisees and their employees who have worked to create powerful growth momentum and cultivated a passionate company culture this past year. I am confident that we are building a foundation for continued success well into the future. 7
Andrew Skehan is the president and CEO of Home Franchise Concepts. Andrew is a seasoned leader in franchising who has led enterprises across several consumer-facing industries in both the U.S. and abroad including Krispy Kreme North America, Popeyes Louisiana Kitchen, Churchill Downs Incorporated, Nabisco and PepsiCo.
December 2023 / FRANCHISING WORLD 15
FEATURE
MORAN FAMILY OF BRANDS ACCELERATES EXPANSION By Pete Baldine, Moran Family of Brands
16 FRANCHISING WORLD / December 2023
The automotive aftermarket industry’s commitment to service and adaptability positions it for sustained growth and success.
M
oran Family of Brands and Turbo Tint has experienced consistent growth and development in 2023 as it expands its national footprint.
Turbo Tint Brand Gains Momentum
Turbo Tint provides advanced window-tint solutions for vehicles, commercial spaces and homes. By adding a protective layer to windows, these tints can significantly reduce internal heat, enhancing comfort and energy efficiency along with providing important UV protection. Moran introduced Turbo Tint in 2020, collaborating with Greg Goodman, a seasoned franchisee of the company’s Alta Mere brand based in Oklahoma City. Despite beta testing at the height of the pandemic outbreak, the one-hour automotive window tint concept and online offerings at Goodman’s existing store generated a 30 percent growth in sales year over year. The success of the beta test set up the launch of the concept for early 2021.
“
Turbo Tint plans to add more than 100 locations over the next several years.”
This year has been pivotal for Turbo Tint’s expansion. Its focus on customer convenience and comfort is helping fuel expansion. Turbo Tint’s growth trajectory started with the launch of outlets in Delray Beach and Orlando, Florida, and now spans nine locations nationwide. The brand has development deals in place to add 46 additional Turbo Tint units and plans to have a total of at least 14 shops open by the end of the year. Additionally, eight more Turbo Tint stores are projected to open in the first quarter of 2024. Moran’s strategic alliance with Clear Window Solutions LLC is set to amplify its presence in regions like Nevada, Arizona and Texas. As part of the partnership, Moran’s co-founder, Barbara Moran-Goodrich, teamed up with Franchise Update chairman Gary Gardner. Gardner will oversee market development, site selection and buildout, while Moran-Goodrich will manage the operations side of the business. Las Vegas will have two stores open by the end of the year along with a signed lease for a store in Arizona.
December 2023 / FRANCHISING WORLD 17
Turbo Tint plans to add more than 100 locations over the next several years. The concept’s limited product line presents franchisees with an opportunity for high profit margins and is a potentially lucrative investment for people who want to own a business in the auto industry. One of the primary appeals of Turbo Tint’s business model is the convenience and comfort for the consumer. Customers can purchase an automotive tint package and book their installation appointment online. Upon arrival for service, the custom installation process takes less than an hour to complete. All Turbo Tint locations boast modern and spacious customer waiting areas equipped with oversized leather chairs, flatscreen TVs, and computer workstations with complimentary Wi-Fi. Providing a great customer service experience is key to Turbo Tint’s success.
“
Providing a great customer service experience is key to Turbo Tint’s success.”
Turbo Tint franchisees take advantage of multiple revenue streams with residential and commercial tinting services, which can reduce storm or accident damage by helping to hold the glass in place and protect interiors from the harmful impact of ultraviolet rays. Beyond automotive window tinting, Turbo Tint also offers paint protection services. Paint protection protects cars against rocks, pebbles, salt, sand, and road debris damage. It also prevents paint chipping and fading to improve a car’s appearance.
Moran Champions One-Stop Shop Auto Repair
In addition to Turbo Tint, Moran is the franchisor of five aftermarket auto repair brands, including Milex Complete Auto Care and Mr. Transmission. As a leader in the aftermarket auto industry, Moran is catering to an increasing demand for electric vehicle (EV) repair and maintenance. In 2023, EV sales continued their upward trajectory, capturing a larger market share. EV sales jumped 50 percent during the third quarter versus the same period in 2022, according to Kelley Blue Book. Auto repair shops offering comprehensive services are primed for expansion. Moran’s emphasis on co-branding
18 FRANCHISING WORLD / December 2023
ensures that its franchisees offer a wide array of services, positioning them as the go-to solution in their communities. At the same time, the climbing prices of new cars are prompting many people to hold onto their vehicles. The average age of cars on the road climbed to a record high of 12.5 years in 2023. Even if purchasing an EV vehicle is out of reach, keeping older vehicles in tip-top condition remains a priority for consumers as it improves gas mileage and ensures the vehicles meet emissions standards.
The Road Ahead
As consumers prioritize maintaining and repairing their vehicles over purchasing new ones, the aftermarket auto industry is primed for continued success. For entrepreneurs, technicians, and consumers alike, it represents a sector full of opportunity and promise. 7 Pete Baldine is the president of Moran Family of Brands. For more information about IFA franchisor member Moran Family of Brands, please visit franchise.org/franchise-opportunities/ moran-family-of-brands.
FEATURE
NAVIGATING GROWTH AND INNOVATION IN 2023 WITH WETZEL’S PRETZELS By Vincent Montanelli, Wetzel’s Pretzels
Founded in 1994 in Pasadena, California, by Bill Phelps and Rick Wetzel, Wetzel’s Pretzels has grown into a beloved brand synonymous with both snacking delights and a commitment to growth and innovation. 20 FRANCHISING WORLD / December 2023
W
ith a record franchise development pipeline, a growing fleet of food trucks and strategic locations within retail giants like Walmart and Macy’s, the brand is weaving a diverse tapestry of success backed by innovative marketing, advanced corporate support, digital enhancements and flexible store formats. Let’s unravel the knot of achievements that mark Wetzel’s 2023 highlights:
Growth Highlights
Wetzel’s Pretzels expanded into Eastern Canada in 2023, a move made possible by MTY Food Group, Inc.’s recent acquisition of Wetzel’s, leveraging the expertise of
its seasoned Canadian development team. Wetzel’s food truck fleet experienced rapid growth, with operators adding multiple trucks to their territories due to the model’s low cost of entry and feasibility. The brand opened its doors to 17 new bakeries by the end of Q2 and will close the year out with approximately 40 new locations. Even further, Wetzel’s is setting out to achieve another enviable milestone — the opening of its 400th location in early 2024.
Twisted by Wetzel’s
Wetzel’s Pretzels thrives on innovation, as made evident by the launch of Twisted by Wetzel’s — a dynamic streetside concept that redefines the pretzel paradigm. Optimized for in-store dining, grab-and-go and online ordering, Twisted by Wetzel’s brings ‘pretzels to the people’ in a whole new venue while expanding menu offerings to increase customer acquisition. The first location in La Habra, California, sent waves of excitement through pretzel enthusiasts, followed by a location in Surprise, Arizona, and Southgate, California.
Technology and Training Initiatives
In a world dominated by digital trends, Wetzel’s Pretzels makes routine improvements to its tech stack. In 2023, Wetzel’s launched a new mobile app, which enabled mobile ordering. The implementation of technology for bakery operations showcases the brand’s commitment to operational excellence. Launching a digital training program with 1Huddle enhances the onboarding experience and strengthens the bonds within its franchise community. Continued adoption of third-party delivery throughout the chain is driving off-premise sales. Wetzel’s began to roll out a new POS system for company wide adoption by 2024, enabling much stronger reporting, faster processing speeds and compatibility with tools like self-ordering kiosks and mobile line-busters.
Menu Collaborations
Entering 2024, Wetzel’s remains committed to pushing the boundaries of flavor. Collaborations with renowned brands like Ghirardelli and Tajín have sparked fan-favorite creations like Frozen Horchata, Choco Churro Bitz, S’mores Bitz and the Guava Mangonada drink, all products of Wetzel’s ability to exceed diverse consumer preferences. Innovations from the Twisted by Wetzel’s menu development are helping create a solid library of innovative products that can be leveraged as LTOs in the years to come.
Access to Equity Program for Franchisees
Wetzel’s Pretzels’ Access to Equity Program makes franchise ownership accessible for women and ethnic minorities. This initiative goes beyond the pretzel business, emphasizing the importance of such opportunities for underrepresented groups. The inclusion in ownership initiative provides a discount on the initial franchise fee for all new women and minority owners, and for select owners who qualify, it may offer additional business education, mentoring, and discounts.
Awards
In 2023, Wetzel’s was named to Franchise Business Review’s 2023 Top Food Franchises, FSR’s Most-Beloved Restaurant Brands in America list, Franchise Times’ Top 400 list, Nation’s Restaurant News’ 2023 Creator list, and QSR’s Top 50 Contender list. The company also received a 2023 Franchising@Work Bronze Award from FBR for being the third highest rated franchise company in employee satisfaction measurements. As we anticipate 2024 and approach Wetzel’s 30th anniversary, the brand is strategically positioned for yet another successful year, beginning with the significant opening of its 400th store. In the spirit of Wetzel’s, here’s to the triumphs that await, with pretzels twisting and success rising. 7 Vincent Montanelli is the COO of Wetzel’s Pretzels. Vincent boasts nearly two decades of executive roles within Wetzel’s Pretzels, and his background includes operational positions at Jamba Juice, Baskin Robbins, and McDonald’s. For more information about IFA franchisor member Wetzel’s Pretzels, please visit franchise.org/franchise-opportunities/wetzels-pretzels.
December 2023 / FRANCHISING WORLD 21
FEATURE
SPAVIA’S YEAR OF GROWTH: A JOURNEY OF REDEFINING WELLNESS AND MAKING A POSITIVE IMPACT By Marty Langenderfer, Spavia Day Spa
From the introduction of new treatments to giving back to franchisees’ communities, Spavia’s remarkable year reflects a commitment to excellence in wellness. 22 FRANCHISING WORLD / December 2023
F
or nearly 20 years, Spavia has been dedicated to redefining the neighborhood spa experience. Our mission is to make a positive impact on the world, one guest at a time, by delivering an affordable luxury that bridges the gap within the wellness industry. Since 2005, the core of our success has been our commitment to offering result-driven treatments that help guests relax, recenter and renew. In 2023, the Spavia brand grew even stronger as we reinforced our reputation as a leader in accessible high-end wellness. From introducing new treatments to giving back to our communities through Spavia Cares, Spavia has seen a year of tremendous growth and is only poised to continue providing the best in day spa services to our markets.
Providing an Amazing Guest Experience
Our guests can indulge in monthly treatments, enjoy luxurious plush robes, find tranquility in retreat spaces, or shop top-tier retail offerings. It’s the ultimate destination for those seeking relaxation, rejuvenation and recentering, all within their own communities. We offer guests a variety of treatments and the ability to customize their spa experience while enjoying the serenity of themed aesthetics that carry throughout the day spa. Our retail products add to our guests’ experience with a wide range of options and diverse pricing to cater to a broad audience. Among the latest additions to Spavia’s portfolio of treatments is an innovative dermaflash treatment, specially designed to leave guests feeling revitalized and looking their best. The treatment uses award-winning sonic technology to delicately exfoliate dead skin cells and gently remove peach fuzz, unveiling smoother, glowing skin in an instant. Treatments such as our new dermaflash facial boost allow our guests to leave refreshed and feeling their best.
December 2023 / FRANCHISING WORLD 23
Giving Back to Our Communities
In addition to making a positive impact through wellness, we take pride in giving back to our communities through our Spavia Cares program and furthering that impact on the lives of our guests and the communities we serve. Whether it’s contributing to local charities, partnering with community organizations, or organizing fundraisers, Spavia consistently strives to enrich the lives of its guests and the communities they call home. It’s a testament to Spavia’s dedication to wellness not only in a spa setting but in the broader context of societal well-being, emphasizing that success goes hand in hand with giving back. Every September, we invite our franchisees to give back and make a positive difference. This year we had 100 percent participation from all our locations.
Growing the Spavia Leadership Team Giving back to our communities is only one way Spavia works to keep the brand moving forward. This year, Spavia has welcomed talented new leaders to our corporate team. A strong, experienced team is the backbone that ensures longevity, and Spavia recognized this. We welcomed Dana Benfield, chief marketing officer, and Courtney Allison, chief operating officer, to the Spavia family earlier this year, injecting fresh perspectives and energy into the organization. These new hires bring a wealth of knowledge and experience to the table, guiding Spavia to reach its goals as it continues to grow. Dana brings over 25 years of marketing experience to the Spavia team. Her journey began in the food industry, including a remarkable 16-year tenure at Red Robin. In 2019, Dana transitioned to the health, beauty and wellness industry with WellBiz Brands, discovering a passion for helping people feel their best. Throughout her career, Dana
24 FRANCHISING WORLD / December 2023
has excelled in national, brand, local, digital and gift card marketing, with a deep-seated enthusiasm for data-driven solutions. Dana is a proponent of transparency, fosters collaboration and is dedicated to building high-performing teams focused on achieving exceptional outcomes. Courtney has devoted her career to franchising, deeply valuing the business model’s potential. As the Chief Operating Officer at Spavia, she champions three core areas for successful franchise systems: Training and Education, Field Operations and Franchisee Communications. Courtney’s teaching background underscores the importance of ensuring consistent, exceptional spa experiences through team training. For her, effective coaching for delivering memorable customer experiences is central to boosting franchisee success, and she believes strong relationships and shared visions with franchisees drive the heart of franchising, emphasizing the power of collaboration. Courtney is dedicated to fostering Spavia’s growth and supporting franchisees’ achievements.
A Vision for Growth and Innovation
With new additions to our team, we are setting ourselves up for an era of exciting new growth. Spavia has a goal of reaching 200 locations in the next decade. We are focusing efforts to increase our presence in major metropolitan areas across the U.S. with an initial start in cities in Arizona and Texas. Part of our initiative to increase locations, Spavia is set for a refresh with the introduction of Sway by Spavia, a concept designed to connect with a younger urban demographic. Sway will offer affordable, trendy treatments and an Instagram-worthy atmosphere, reflecting our adaptability and commitment to innovation for this new era in the wellness industry. This expansion venture diversifies our offerings and extends our reach while ensuring the lasting success of the Spavia brand and staying true to our core values.
Spavia is excited for our growth within the next year with development plans for eight new day spas in the works. The world of wellness is evolving, and Spavia is leading the charge as it continues to transform lives and communities. Spavia’s unwavering commitment to affordable luxury and community enrichment is the driving force behind our brand’s success. We stand at the forefront of wellness and spa experiences, and we are proud to have bridged the gap between vacation spas and result-driven wellness. At Spavia, we provide an accessible high-end wellness experience, delivering a diverse range of treatments, personalized fragrances and themed relaxation spaces. 7 Marty Langenderfer is the CEO and co-founder of Spavia. Marty brings a wealth of expertise and innovation to the brand. With a background that includes serving as a CPA and obtaining an MBA from Cornell University, Marty’s journey led to executive positions in renowned companies such as Travelocity and DISH Network. As a leader at Spavia, he leverages his diverse skills in finance, marketing and operations to guide the Spavia National team, driving the brand toward new heights of excellence and success. For more information about IFA franchisor member Spavia, please visit franchise.org/franchise-opportunities/ spavia-day-spa.
THE PATH TO BECOMING A CERTIFIED FRANCHISE EXECUTIVE TM (CFE) APPLY TODAY! BEGIN TODAY! Visit: franchise.org/certification Email: cfe@franchise.org
Application.
Applications may be completed online at franchise.org/cfe
Acceptance.
Applicants will receive email notification regarding acceptance of CFE candidacy and next steps to launch your CFE journey.
Acquire credits.
You will be provided with a CFE Getting Started Guide that explains the program requirements and details for selecting the education courses that best fit your schedule and goals.
Program completion.
Program requirements can be satisfied through a combination of professional franchise experience, approved event participation, and authorized education courses.
Congratulations! You’re a Certified Franchise Executive!
You now join the ranks of thousands of franchise leaders worldwide who have earned the esteemed CFE designation!
December 2023 / FRANCHISING WORLD 25
FEATURE
BIG FUN IN THE BIG EASY: THE EMERGING FRANCHISOR CONFERENCE IN NEW ORLEANS WAS A HIT By Michelle Lange, IFA
2023 Emerging Franchisor Conference attendees tapped into the city of New Orleans for a full sensory experience this year. People who went really liked it. People who missed out will surely hear the stories.
26 FRANCHISING WORLD / December 2023
The Hilton New Orleans Riverside was filled with franchise industry leaders who are building longterm successes that create real wealth for franchisors and franchisees.
2023 Emerging Franchisor Conference attendees balanced structured learning by day with casual networking at night.
E
merging franchisors and curious entrepreneurs had Big Fun in the Big Easy at the 2023 Emerging Franchisor Conference (EFC). Typical networking and business connections happened with jazz music in the air, and members who came traded in conference rooms and buffet lines for art and fine dining. Those lucky enough to grab the first 25 seats for the Franchisor Field Trip got an exclusive behind-the-scenes look at a thriving franchise’s operations — a real-world case study in successful franchising. Conference coaches gathered with their groups throughout the event. People got to know each other and talk about their experiences in franchising over dinner at some of the city’s hottest spots.
Big Fun in the Big Easy
Mixed in with the music and meetings, EFC attendees also got down to business with structured learning during the day. Franchisors attended sessions such as “Brick by Brick: Your 7 Foundational Building Blocks to Franchisor Success,” an essential guide to establishing a strong franchising foundation. “Grow Fast, Further and More Efficiently” was an empowering opening session, setting the stage for what it means to scale up in today’s market and “Getting Ahead of Industry Trends that Impact Growth” detailed the evolving landscape of consumer behavior and technology, and what is working to make money. Over lunch, the C-Suite FRANHACK offered problemsolving roundtables for tackling real-time challenges and brainstorming solutions. EFC also included a round of “speed dating” in the form of franchise coaching. The Conference Coach Roundtables and Franchise Business Speed Dating event put potential collaborators face to face in rapid succession. There’s nothing like the adrenaline that comes from pitching and assessing under a time crunch. That alone was worth the trip.
Choose Your Path
EFC offered different tracks to address the challenges of the different stages of growth in emerging franchising. From the first few units to 100 or more, attendees were able to meet with their peers to identify opportunities for success and overcome the challenges of growth at every step. Those new to the franchise game attended sessions like, “Training Plan From Signing to Opening and First 30 Days,” while others with many units and years of experience tackled complex issues like “Leveraging Technology to Drive Franchise Growth.” The opening and closing sessions covered issues relatable to everyone in the industry, with topics like “The Easy Way Never Pays Well,” a profound reminder of the dedication and hard work required to excel in the franchising world. Everyone genuinely appreciated the power of meeting face-to-face with the leading minds and brands in franchising at IFA’s Emerging Franchisor Conference. If you were not able tomake it, there are more than 300 like-minded entrepreneurs who spent a week in New Orleans to ask.
Attend in 2024
IFA’s 2023 Emerging Franchisor Conference was an empowering event, jam-packed with opportunities for growth, learning, and connections. Don’t miss the 2024 Emerging Franchisor Conference in Austin, TX, Nov. 18-20. Check franchise.org for details soon. 7
December 2023 / FRANCHISING WORLD 27
INDUSTRY SPOTLIGHT: Automotive
INDUSTRY SPOTLIGHT: FRANCHISED AUTOMOTIVE SERVICES SECTOR REMAIN STABLE By Khadija Cochinwala, FRANdata
The U.S. is home to one of the largest automotive industries in the world, and mobility is synonymous with auto or car ownership.
28 FRANCHISING WORLD / December 2023
A
ccording to the Hedges Company automotive market research report statistics, there are over 292 million vehicles operating on the road in the U.S. as of 2023. New car and light truck sales were around 16.5 million in 2022 and projected at 15.1 million in 2023. Almost 38.4 million used vehicles changed owners in the U.S. between the first quarter of 2022 and the first quarter of 2023, while new registrations of vehicles came to about 13.9 million units during that period. The franchised automobile industry largely encompasses sectors focused on the automotive aftermarket segment including repair and maintenance of motor vehicles, auto detailing & car washes, auto parts retailing, appearance & restoration services, passenger rentals and leasing, fleet management and gas stations. Though several industries were impacted from the COVID-19 crisis, the automotive service franchises remained pandemic proof as they were dubbed essential businesses. According to a Mordor Intelligence industry report, the U.S. automotive
Average Unit Volume (AUV) $1,800
THOUSANDS
$1,600
CAGR: 3.7%
$1,400 $1,200 $1,000 $800 $600 $400 $200 $0
2018
2019
2020
2021
2022
Unlike other industries, the automotive franchise industry experienced an upward AUV trend from 2018 to 2022, growing at a CAGR of 3.7 percent, despite the pandemic. Source: FRANdata
brands have adopted the franchise business model in the automotive aftermarket services industry. More franchises have entered the market offering environmentally friendly services ranging from waterless car washes and electric car maintenance to
ultrasonic cleaning of emission filters. There is an increasing number of brands that have shifted from a licensing model to a franchising model, driving overall franchise growth in recent years to a five-year high of 17,774 total franchise establishments in 2022.
Total No. of Franchised Establishments (Automotive Industry) $19,000 $17,000
$16,877
$17,221
$17,277
2018
2019
2020
$17,674
$17,774
2021
2022
THOUSANDS
service market is estimated at $177.51 billion in 2023, and is expected to reach $237.33 billion by 2028 — growing at a CAGR of 5.98 percent during the forecasted period (2023-2028). With the current stormy economic climate, high inflation, rising interest rates and the global microchip shortageinduced imbalance in the supply and demand chain, both new and used car prices have skyrocketed, with consumers favoring comparatively more affordable used cars over their expensive brand-new counterparts. It is also no surprise that consumers are inclined to keep their existing vehicles longer as indicated by the S&P Global Mobility research that found that the average age of light vehicles in operation has risen to an all-time high of 12.2 years in 2022, a nearly 2 percent increase from 2021. During the pandemic, social distancing practices led to a shift from public transportation and carpooling to personal mobility, which also accelerated the demand for used cars amidst a shortage of new vehicles. After the pandemic, carpooling and ride-sharing services regained popularity, in part due to the increase in hybrid workplaces, resulting in higher annual mileage for these cars. There was also a renewed demand for recreational driving and a return to the quintessential American road trip experience, which automatically spurred the need for vehicle service. All of these factors equated to more older cars on the road, which meant more regular maintenance versus replacement, fueling the potential for the diversified franchised automotive aftermarket businesses. The performance of the automotive services franchise industry is expected to continue its upward trajectory, as evidenced by FRANdata’s New Concept Reports for the period 20182023, which revealed that 41 new
$15,000 $13,000 $11,000 $9,000 $7,000
The automotive franchise industry has thrived pre and post pandemic with an increasing number of franchised units year over year. Source: FRANdata
December 2023 / FRANCHISING WORLD 29
Trends
1
Escalation in Brand M&A Activity
The consistent expansion of the automotive franchised sector, both during the pandemic and in preceding years, has garnered the attention of private equity groups. According to the Jefferies 2022 Global Automotive Aftermarket Report, there were 352 M&A dealings in the automotive aftermarket sector in 2022, 310 of which were strategic transactions. Although the decrease from 2021 is attributed to the limited availability of capital due to rising interest rates in 2022, investor interest is expected to remain high as the aftermarket segment is fragmented and offers multiple opportunities for platform creation. Some transactions to note: • Warburg Pincus’s acquisition of El Car Wash is just one of the many private equity-backed multiple platform and consolidation investments in the automotive aftermarket industry in 2022 • Mavis Tire Express acquiring Tuffy Tire & Auto in 2021, which is now affiliated with Express Oil Change, ultimately backed
30 FRANCHISING WORLD / December 2023
by an investor group led by BayPine in partnership with TSG Consumer Partners and West First Management (WFM), with former majority shareholder Golden Gate Capital continuing to retain a minority stake in the company • Franchise Equity Partners securing a minority stake in Parks Automotive Group in June 2023, marking its second investment in the automotive retail sector
Additionally, the industry has witnessed the emergence of multi-care programs and co-branding as strategies employed by franchisors to attract consumers. This involves partnering with brands in related industries that serve a similar demographic. Co-branding facilitates the operation of two or more franchises under one roof, allowing them to leverage multiple service offerings and enhance profit margins.
2
Digitalization and Technology
Digitalization of automotive repair and component sales is making inroads as electric car sales increased by 60 percent in the first quarter of 2023 — compared to the same period in 2022
— with predictions of it reaching over 1.5 million by the end of 2023 (according to the International Energy Agency). As more Americans (over one-third according to a Reuters poll) consider buying an EV for their next model spurred by tax credits offered by the Inflation Reduction Act of 2022 and rising gas prices, the aftermarket automotive industry needs to shift gears to make the most of the transitions towards a rapidly growing greener market. The fleet management franchises’ services in taking charge of innovative, autonomous, highly functional and interconnected vehicles on the roads will become indispensable. Lucrative EV charging franchise opportunities, yet in the nascent stages, are a promising trend for entrepreneurs looking for solid return on investments and wanting to stay ahead of the competition. Advancements in vehicle and hybrid technology are driving innovation and compelling franchisors to adapt and evolve. For instance, Big O Tires and Midas are including electric vehicle tires in their offerings and Valvoline has begun piloting services such as 12-volt battery replacement; tire rotations; key fob battery, cabin air filter & wiper replacements and state safety inspections to service the increasing hybrid and EVs on the roads. While the automotive franchise market and the vehicles driving it are evolving, they will remain an important part of everyday life for the foreseeable future. The auto repair franchise industry is in a stable, in fact, thriving position, but franchisors should be prepared to incorporate key changes with newer technologies to remain profitable in the long haul. 7 Khadija Cochinwala is a Research Analyst at FRANdata. She is part of a team of analysts who measure, track, and analyze franchisor performance. Khadija is committed to producing quality franchise insights that enable strategic decision making and propelling business growth.
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INDUSTRY SPOTLIGHT: AUTOMOTIVE
AUTOMOTIVE FRANCHISING: BRIGHT FUTURE PROMISES STABILITY AFTER CHALLENGING YEAR FOR AUTO INDUSTRY By Thomas A. Wolfe, Ziebart
There’s no doubt about it, it’s been a challenging time for the automotive industry, with a year full of ups and downs.
J
ust as the industry was seeing signs of recovery from the chip shortage and other supply chain struggles, inflation hit the country in a big way. Meanwhile, interest in electric vehicles skyrocketed just as workers at the big three auto dealers took to the picket lines. With a new year on the horizon, the auto industry faces a mountain to climb.
On the Picket Line
Of course, perhaps the biggest story taking over the automotive industry as of late is the United Auto Workers strike, impacting the three largest car manufacturers in the country: General Motors, Stellantis (formerly Fiat Chrysler) and Ford Motor Company. After six weeks of negotiations, workers came out with a record 33 percent pay increase. But the damage to consumers had already been done. The strike cost
32 FRANCHISING WORLD / December 2023
GM alone roughly $1.1 billion, and triggered a shortage of parts that many local dealers rely on to make repairs.
Cost-Saving Measures
Adding to the pain in consumers’ pockets throughout the year, inflation continues leading to sticker shock at car dealerships — with the average price of a new car reaching record highs of nearly $50,000, according to Kelley Blue Book. Consumers are now looking for alternative options, like purchasing a more affordable, pre-owned vehicle, or re-investing in their current vehicle in attempt to preserve it and delay a large purchase. However, this shift in dynamic greatly impacted the automotive aftermarket industry in a positive way. Instead of shoppers embarrassed at the thought that they just bought someone else’s trash, or feeling like they’re stuck with their old, beat-up car, drivers invested in services like detailing and paint correction to still fulfill that new car look and feeling for a fraction of the cost.
Electric Vehicle Movement
Though it was a trying year for the automotive space, there’s much to
be said about the industry’s bright future ahead, particularly when it comes to updated technologies in the form of electric vehicles (EVs). While automakers push to boost EV production, the auto aftermarket sector of the industry is quickly learning and adapting to ensure they can still provide the same quality, protective services without compromising the unique technology found in EVs.
The Future of Automotive Franchises
That continuous innovation is exactly where we find stability in the automotive franchise space, setting franchisors up for success for years to come as long as they’re willing to stay up to date with the latest trends. A thorough dedication to adaptation is what’s helped companies like Ziebart International Corporation accomplish a milestone 65 years in business, with no signs of slowing down. 7
Thomas A. Wolfe is the CEO of Ziebart. For more information about IFA franchisor member Ziebart, please visit franchise.org/ franchise-opportunities/ziebart.
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FINANCE
A SMART INVESTMENT FOR BUSINESS SUCCESS By Lisa Hafetz, Always Best Care
Groups of 8-10 owners meet quarterly throughout How Financial Education other. the year. They review a group benchmark report that shows how they are doing in comparison to their peers, their past and Accountability performance, and the goals they have set for themselves. Franchisors typically provide a lot of operational, Can Help Franchisee marketing and training support to their franchise owners, but they do not give specific financial advice and guidance. In fact, Profitability very few franchisors have an entire department dedicated to
M
ost franchise owners don’t get into their business because they love to do the bookkeeping. They may understand the importance of regularly reviewing financial statements and setting monetary goals for the company, but they don’t necessarily come in armed with financial acumen. While all owners seek to improve the financial rewards they receive from their business, few know where to start in developing a strong company management strategy. It takes discipline and knowhow to gather the necessary information and integrate effective benchmarking into their process. At Always Best Care, my role is to support our franchisees in having a better understanding of business financials and increasing their profitability and success. I oversee a Performance Group program, which brings together franchise owners to discuss finances, bounce ideas off one another and create strategies for operational improvements. What it’s really creating is accountability, to themselves and to each
34 FRANCHISING WORLD / December 2023
helping franchisees with the financial side of their business. The financial information tells the story about what’s going on in a company. Franchise owners must understand it, invest in it, and know they can use that information to change the way their business is operating. Whether or not they have a formal program to follow, here are the top tips I recommend to get started.
Invest In the Financial Part of the Business
Outsource the bookkeeping so the information you have about your numbers is accurate and reliable. When it’s not, it’s very difficult to use that information to help achieve different results. A payroll vendor is also an important partner to have so you don’t spend valuable time ensuring paychecks and payroll tax deposits are correct. Leave that to the experts!
Educate yourself on how to interpret your financial information. Once you understand that, the data becomes a tool you can use to run the business rather than annoying paperwork you have to suffer through. There are numerous ways to start putting your financial information to work. For instance, you can run a sensitivity analysis to illustrate how certain operational changes might affect your profitability. Most importantly, you need to make sure you are focusing your time and attention in the places that will optimize your ability to be more profitable and successful.
Measure So You Can Manage
There’s a classic saying in the business world that “what gets measured gets managed.” Key financial data that you want to be able to read and understand includes measuring profitability, productivity, financial position and cash flow. An effective Benchmark Report would provide a summary of this data for your business and follow a standard format that allows you to record goals, set action plans, and assess progress at meeting goals. This level of detail will show where you have been, where you are now and where you want to go. The one thing that doesn’t change from industry to industry is financial information and what you need to know about it. Once you have that financial acumen, you can take it anywhere you go. But to actually put a plan in place that will get you there, you must be willing to make changes in the way you operate. That is why I recommend that all franchise systems put together a financial education program.
Applying this process with a group of peers provides a pool of best practices, or standards, from which to draw when implementing plans. You’ll achieve your goals far more quickly and efficiently than doing it on your own. With consistent accountability, you can integrate financial benchmarking into the ongoing process of monitoring and managing your business. By sharing experiences, peer groups can learn new approaches to old issues and develop a network they can call on for advice, support, and as a sounding board for new ideas. By focusing efforts toward a plan, you can go beyond crisis management and actually create the company you want to own. 7 Lisa Hafetz joined Always Best Care in 2022 as the vice president of franchise financial management. She was introduced to the senior services company as a contractor with Profit Mastery, where she gained extensive experience providing financial education and establishing and facilitating franchisee financial performance groups. For more information about IFA franchisor member Always Best Care, please visit franchise.org/franchise-opportunities/always-bestcare-senior-services.
Create an Accountability Group
Putting together an informal “board of directors” can provide ongoing support and direction, adding discipline, structure, and accountability to keep you focused and committed to your goals. Ideally, this would be a group of small business owner peers, and regularly scheduled discussions would focus on finances and goals. The Always Best Care performance groups use accountability sheets. Each person selects at least two items that came up at the meeting that they’re going to implement, and they state on the sheet exactly what they’re going to do, when they’re going to do it and what the expected outcome will be. Then the group holds them accountable to those intentions by asking questions and following up on those commitments at the upcoming meetings. Once the goals are established, the performance groups look at areas that need improvement and prepare activities to help fill in those gaps.
December 2023 / FRANCHISING WORLD 35
FINANCE
STOPPING THE SCAM: IRS CRACKING DOWN ON FALSE ERC CLAIMS By Tricia Petteys, Payroll Vault Franchising, LLC
Franchisors and franchisees alike need to stay on top of recent changes that could affect their bottom line — namely, receiving Employee Retention Credits (ERC), aka COVID credit.
T
he IRS has made several big announcements recently. First, in September, it enacted a moratorium for processing new claims, due to a huge backlog and rampant fraudulent filings. In October, they announced a claim withdrawal process for business owners who may have been the target of a credit filing scam or who have doubts after filing that they actually qualify for the tax credit. As chief operating officer and co-founder of a payroll service company that specializes in serving small businesses, we have successfully processed tens of millions of dollars of ERC credits for clients. But we also know many small business owners who were convinced to file for ERC by heavy-handed marketing used by questionable tax filing companies. It’s more important now than ever for business owners to know the facts about ERC qualifications, how to spot a filing scam attempt, and how to withdraw a filing if they think they’ve made a mistake.
36 FRANCHISING WORLD / December 2023
ERC Situation Overview
To recap, ERC is a special tax credit offered to employers who paid wages between March 13, 2020, and December 31, 2021, during the COVID-19 pandemic shutdown. To qualify, an employer must have experienced one of the following during this time period: • Sustained a full or partial suspension of operations due to an order from an appropriate governmental authority limiting commerce, travel, or group meetings because of COVID-19 during 2020 or the first three quarters of 2021. • Experienced a significant decline in gross receipts during 2020 or a decline in gross receipts during the first three quarters of 2021. • Qualified as a recovery startup business for the third or fourth quarters of 2021. Additional information on ERC qualifications and how to file a claim are available on the IRS website. Due to the large number of claims filed, the IRS announced on September 14 that it had a backlog of about 600,000 claims, and it was seeing an alarming number of fraudulent claims. To address the problem, the IRS put a moratorium on processing new claims, extending the original 90-day waiting period for valid claims to 180 days. Deadlines for filing and processing remain unchanged, however, which means business owners must be vigilant to avoid scams.
Spotting a Scam
Business owners have a limited time to file for ERC. According to the IRS, the filing deadline for the 2020 tax period is April 15, 2024, and the deadline for the 2021 tax period is April 15, 2025. Because of this shrinking window, unscrupulous filing companies will pressure business owners to file quickly and without doing their due diligence to ensure they’re
qualified. To avoid being taken in by these scams, business owners should watch for these warning signs of an ERC scam: • Unsolicited contact from companies claiming to help with ERC filings. • Instant eligibility determination promises, i.e., “We can do it in minutes.” • Large upfront fees or fees based on refund size. • A refusal to sign the ERC filing. • Misleading claims about ERC risks, i.e., “There’s no penalty for an ineligible filing.” • A lack of clarity on ERC eligibility. As a payroll professional whose company does business tax filings, I highly recommend business owners only work with reputable tax professionals when filing any claims. Make sure to check the eligibility and computation worksheet and perform a self-evaluation. Business owners shouldn’t file a claim if they have doubts about their qualifications. However, if they’ve already filed a doubtful claim, there is a solution.
Business owners who have received a refund check can still withdraw a claim if they do so before cashing or depositing. They should mail the voided check with their withdrawal request, using the instructions available on the IRS website. ERC is a valuable benefit to employers who kept their employees through a difficult economic period. Unfortunately, there will always be those who will take advantage of goodwill efforts and programs designed to help others. It falls to business owners to watch out for attempts to lure them into filing unqualified claims — so this financial assistance can reach those who need it most. 7 Tricia Petteys is the chief operating officer and co-founder of Payroll Vault Franchising, LLC. For more information about IFA franchisor member Payroll Vault Franchising, LLC, please visit franchise.org/franchise-opportunities/payroll-vaultfranchising-llc.
Withdrawing Questionable Claims
On October 19, the IRS announced a new withdrawal system for business owners who suspect their ERC filings may not be valid. Fraudulent claims that were filed willingly won’t exempt the filer from criminal investigation and subsequent prosecution, but business owners won’t be penalized or fined. Employers can withdraw an ERC claim if they meet four criteria: • They filed an adjusted employment return (Forms 941-X, 943-X 944-X, or CT-1X). • They filed the return only for ERC with no other adjustments. • They are withdrawing the entire amount of the ERC claim. • Either the IRS hasn’t paid the employer’s claim, or the employer hasn’t cashed or deposited the refund check. An employer that wants to withdraw an ERC claim should follow special instructions, which are available on the IRS website. To summarize, employers who filed through a professional payroll company should consult their payroll service provider; the provider may need to file the withdrawal request, depending on whether the claim was filed individually or batched together. Employers who file claims on their own should fax their withdrawal requests by computer or mobile device; requests may also be mailed, though this takes longer. Lastly, employers who have been notified that they’re under audit may send the request to their assigned examiners or respond to the audit notice if they don’t have an assigned examiner.
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December 2023 / FRANCHISING WORLD 37
Franchising Gives Back
THE POWER OF FRANCHISE PHILANTHROPY: BRINGING JOY THIS HOLIDAY SEASON AND ALL YEAR LONG By Soraya Rivera-Moya, Ronald McDonald House Charities of South Florida
As the holiday season approaches, the air is filled with a sense of joy, togetherness and the spirit of giving.
I
t’s a time when we can make a profound impact on the lives of those in need, particularly families with sick children staying at Ronald McDonald House. As a franchise owner, you have a unique opportunity to make a positive impact on the communities
38 FRANCHISING WORLD / December 2023
you serve. Beyond business success, engaging in philanthropy and actively participating in community initiatives can foster goodwill, build stronger customer relationships and boost employee morale. Here are a few tips and strategies on how to get started with your
own philanthropy initiatives this holiday season and all year long: 1. Identify your local needs: identify specific needs in your community. Learn about demographics, socio economic factors and local challenges. Align your philanthropic initiatives to local issues and how this can make a more significant impact. 2. Build a partnership: Partnering with local nonprofits, community centers and government agencies. Attend community meetings and events to network and gather information. These can create mutually beneficial relationships. Think about what makes your franchise unique. Do you offer products or services that could address specific local needs? 3. Employee involvement: Involve your staff in the decision-making and volunteering. They may have insights and passions related to local needs. Consider holding brainstorming sessions and surveys among your staff. This can foster a sense of pride and teamwork. 4. Prioritize and set goals: Once you have a list of potential initiatives, prioritize them based on their feasibility, alignment with your brand and potential impact. Set clear, measurable goals for your philanthropic efforts.
5. Plan and implement: Develop a detailed plan for your chosen initiative, including budget, timeline and responsible parties. Ensure that your initiative is well organized and sustainable in the long term. 6. Communicate your philanthropic mission: Have transparent communication with customers and the community about efforts. This can inspire others to get involved and support your franchise. 7. Celebrate success and inspiring stories: Celebrate your philanthropic achievements with the communities and staff. Share ideas of recognition and celebrations which can foster a sense of pride and motivation and how collective efforts can create a more compassionate and thriving community. Partnering with organizations like Ronald McDonald House Charities of South Florida provides an opportunity for companies to support families with sick children by being together at the house during challenging times. The Ronald McDonald House offers a welcoming and comfortable environment for families to stay near the hospital while their child receives medical treatment. This helps reduce stress and allows parents to be close to their child when they need them the most.
Meet the Mina Family
In April 2021, Mina and his wife, Manar, traveled with their two young children, Noah, 3 and Adam, 8 from Cairo, Egypt to West Palm Beach, Florida to visit friends for vacation. Unfortunately, while on vacation,
“
As a franchise owner, you have a unique opportunity to make a positive impact on the communities you serve.”
3-year-old Noah had a burn accident. A microwavable soup spilled on his chest and part of his arms, causing a third-degree burn. After being rushed to the local hospital, it was recommended they travel to Miami to seek treatment at the Miami Burn Center located in Jackson Memorial Hospital. The family was unable to be airlifted due to harsh weather conditions. Scared and nervous, they quickly drove towards a city they had never been to and left their other son, Adam, behind. Noah was admitted and suffered severe burns to his chest and arms which required extensive treatment. Back in West Palm Beach, Adam stayed in the care of friends and it was the first time the family had to be separated. The days quickly turned into weeks and when the treatment required months of doctor visits, it was clear the family needed to move to Miami in order to stay together and close to Noah as he underwent treatment. The unexpected costs and the emotional toll the accident had on the family was stressful. Fortunately, the family was referred to
RMHC of South Florida where they were able to safely check-in and stay together as Noah began healing. “We are grateful for the lovely staff and volunteers that treat us and take care of us like the nicest family members,” said Mina. Today, Noah is slowly healing, and the family has been able to stay together and close to the pediatric hospital where he is being treated. Volunteers not only offer practical help but also emotional support, joy and laughter to the children and families. Each month, hundreds of individuals share their time and talent to make sure families experience the comforts of home while caring for their hospitalized children. Typical individual and corporate volunteering includes preparing a meal or activity for families, cleaning, painting, participating in any special events, collecting wish list items, preparing care kit packages, or hosting a fundraiser. Community engagement and philanthropy can be a win-win situation for franchise owners, their businesses and the communities they serve. Take that first step towards a more socially responsible and engaged franchise.
“The best way to find yourself is to lose yourself in the service of others.” — MAHATMA GHANDI
Due to a high demand, the Ronald McDonald House Charities of South Florida will be building a new house to help more families and eliminate its waiting list. To learn more on the Capital Campaign “Hope Has a New Home”, such as how to volunteer, schedule an activity for families and or donate to the Ronald McDonald House, visit www.rmhcsouthflorida. org or call 305-324-5683. 7 Soraya Rivera-Moya is the executive director of Ronald McDonald House Charities of South Florida.
December 2023 / FRANCHISING WORLD 39
Industry Insights
5 QUESTIONS YOU NEED TO ANSWER TO FIND THE RIGHT FRANCHISE FOR YOU By Chris DeJong, Big Blue Swim School
According to data from the U.S. Census, franchises make up 10.5 percent of all businesses in the U.S.
W
ith a built-in support network and a proven business model, franchising is often considered a reliable path to business ownership that carries significantly less risk than going it alone. However, success is never a guarantee. Selecting a franchise that fits your goals, resources and lifestyle is a crucial part of the puzzle. You need to have a solid idea of what you want and where you want to go before selecting the best partner to get you there. Here are five questions you need to answer before buying a franchise.
How involved do you want to be in operations?
1
Franchising can be very hands-on or hands-off — it depends on the model. Some owners like to be on the frontlines of the business, building relationships with customers and their team and maintaining an active role in operations well after things are up and running. Other owners, especially serial investors, prefer to set things up and walk away, letting the business
40 FRANCHISING WORLD / December 2023
operate independently. While they still have an active role in the overall growth and strategy of the business, day-to-day responsibilities are left in the hands of the management team. With a hands-on role, you can ensure that the details of the business are running the way you want them to, but it also means taking on more of the work. A hands-off role gives you more freedom to do other things but requires a strong management team and a lot of trust.
What kind of investment can you make?
2
Capital is an important consideration when franchising. High-capital opportunities provide larger returns, but they also cost more upfront. The returns of a low-capital franchise may be smaller, but they’re more obtainable, especially for those just starting out or working with a limited budget. Another consideration when deciding on an investment is whether to do a home-based or brick-and-mortar business. When property or real estate becomes involved, there tends to be more responsibility put on the franchisee regarding capital requirements. How much time you can invest is also a thing to be mindful of — not just in terms of operations involvement, but long term. Many franchise contracts have a minimum time commitment, often a decade or more. This means you can’t decide to sell off the business and leave if you lose interest in a year or two.
is your 3 What long-term plan?
Always think about your long-term goals when considering a franchise. There are many ways you can approach this kind of investment. It’s common for more seasoned investors to build up
a location and sell it off later. Others look at them as a long-term investment to pass along to their kids for reliable income. Scaling up to purchase more units is another approach. While your plans can change over time, having an idea of what you’d like to do with your business in the long term will help inform your decisions. For example, if you have young kids and want to build a mature business model to help pay for their college later, you may choose to go with a high-capital franchise over a low one.
“
Always think about your long-term goals when considering a franchise.”
kind of 4 What support and
infrastructure do you need to make it happen?
Once you know what you’re looking for in a franchise and what you’d like to do with it, you need to consider what kinds of support and resources you will need from the franchisor. Training and onboarding are always important to look at, especially if you are new to the industry or franchising in general. If you want a hands-off investment,
you will want a brand that knows its business model from the inside out and can educate you on the internal drivers so you can maintain your responsibilities while being remote.
kind of 5 What people do you
want to work with?
Even though you’ll own your business, as a franchisee, you’ll still be part of a larger corporation. There will still be a culture and tone you need to interact with relatively often, so it’s wise to find one that is a good fit. Some organizations thrive on competition, while others are very close and want high-contact relations with their franchisees. Some encourage experimenting and innovation, while others favor doing things entirely by the book. There is no wrong answer; every model can be successful with the right people at the helm. You just have to decide if you want to be on the ride. At the end of the day, franchising is a partnership between a brand and a business owner. And like any successful partnership, it requires good communication. They can’t help you if you don’t tell them what you need. But how can you tell them without first knowing the answer yourself? 7 Chris DeJong is the founder and president of Big Blue Swim School.
December 2023 / FRANCHISING WORLD 41
FEATURED FRANCHISEES The International Franchise Association is proud to celebrate our franchisee members. See below to learn more about some of our Featured Franchisees — why they got into franchising, their unique backgrounds and how they contribute to their local communities.
COURTNEY AND WENDI FORESTER
Courtney and Wendi Forester, Floor Coverings International Franchisees, Seattle, WA
Courtney and Wendi Forester are co-owners of Floor Coverings International in Seattle, the #1 Mobile Flooring franchise in North America. After opening their business in the beginning of 2023, the pair quickly rose in the ranks and are now in the top third of the franchise network in terms of gross sales performance. Wendi has 25 years of experience in the business world, where she re-vamped and managed brands such as Blockbuster and Amazon. Courtney is a seasoned construction professional who knows just how important it is to prioritize the customer experience. He brings vital industry knowledge such as regulation and safety practices, and Wendi has added to their business’ success with her project management and process-oriented skills.
42 FRANCHISING WORLD / December 2023
The husband-and-wife duo decided on franchising with Floor Coverings International after a six-month vetting process which included conversations with both franchise brokers and existing franchisees. They were pleased to learn that FIoor Coverings International had owners who were willing to share their experiences, discuss the company and give them a peek behind the curtain. Floor Coverings International’s proven business model combined with its unparalleled coaching and support from the leadership gave the Forester’s all the right reasons to invest. Part of Courtney and Wendi’s success was being intentional and selective during the recruiting and hiring process to build out a team that aligned with their own work ethic. The Forester’s believe in the power of accountability – both from themselves and their team – and aren’t afraid to hold their business to high standards. Equally important to their growth has been a willingness to go back to the drawing board with processes and operations, something they did after their first few jobs and continue to do when needed. What will remain key to the Forester’s success with Floor Coverings International is their commitment to their people, top-tier customer service and offering pristine services.
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FEATURED FRANCHISEES appreciated. They also use pep rallies and special training events to equip and encourage staff as the “pros in men’s hair.”
TODD AND MELISSA BAIN
Todd and Melissa Bain, Sport Clips Franchisees
Todd and his wife Melissa own 10 Sport Clips locations in two states. Prior to investing in Sport Clips, Todd was with a local car dealership for 15 years. During that time, the couple also started a local pet resort where they learned the ins and outs of owning and operating a business that included developing their own systems, policies, and procedures. When comparing the benefits of being a franchisee to starting and building a business on your own, Todd believes it comes down to culture and leadership. Building and maintaining culture is key in each of the Bains’ Sport Clips locations. They have grown their franchise investment by acquiring previously owned stores, so in the first 90 days they make sure nothing changes from the previous ownership. He uses this opportunity to observe and to establish trust with the team. Todd then sits down with the store managers one-on-one to see what they like and dislike about store operations. He interviews the team members, asking questions and easing them into any changes. The two mottos the Bains have for their Sport Clips teams this year are “have fun” and “no one left behind.” Together, they ensure team members receive the attention they need, talk with them to set both family and personal goals, and reward top performers. Through these intentional actions, Todd is seeing positive impact on retention in his stores. They host dress-up days in the stores and reward team members through Sport Clips’ new THNKS recognition program that offers gifts of coffee, movie tickets and other items that let stylists know they’re
44 FRANCHISING WORLD / December 2023
ANNETTE PAYNE CEO of Golden Corral, Lance Trenary, with Jace Stickdorn and Annette Payne.
Annette Payne, Golden Corral Franchisee
In our journey through the restaurant industry, my partner Jace and I have experienced remarkable professional growth, moving from restaurant operators to franchise owners. Jace’s journey with Golden Corral began in 2002, serving as a multi-unit director for nearly two decades. I joined Golden Corral in 2007 to oversee the operations of one restaurant location, and in 2016, I became a franchisee with three buffets in Dayton, Ohio. By 2022, we became co-CEOs of Vitall Partners, quickly growing to nine Golden Corrals across three states, with plans for further expansion. We, like 80 percent of other restaurant owners, began in entry-level roles. A great way to learn about the opportunities and pathways to professional development within the industry is to ask other general managers or restaurant owners about their journeys. The key to our success was our deep-rooted connection to Golden Corral, which offered unwavering support for our transition to franchise ownership and ongoing assistance in operations, training and marketing. Our growth wouldn’t have been possible without Golden Corral’s strength, national presence, and growth potential. For those considering a career in the industry, finding the right company and mentors is crucial. The restaurant sector offers numerous opportunities, and with the right support, aspiring entrepreneurs can achieve significant success. 7
PREFERRED VENDORS
IFA's preferred vendors offer franchisors and franchisees products and services to advance their brands. View a list of our preferred vendors below. AnswerConnect Franchise is an Industry leader in Live Reception Franchise services. AnswerConnect can help you 24/7/365 to answer calls, set appointments, qualify leads, transfer calls, CRM integration, and more. Let AnswerConnect work IN your business, so you can work ON your business growth.
As the authority in franchise funding, Benetrends has been funding America’s most popular brands for 40 years. Benetrends' innovative and comprehensive suite of funding solutions not only helps franchisees successfully launch their dreams, but also helps catapult growth of franchise systems.
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FRANPAC’S CURRENT FINANCIAL SUPPORT OF FEDERAL CANDIDATES AS OF DECEMBER 7, 2023. =
REPORT CARD
IFA’s political action committee, FranPAC, supports pro-franchise, pro-business candidates for U.S. Congress.
2023-2024 Cycle Expenditures: $495,500 Republicans................ $362,500 (73%) Democrats................... $119,500 (24%) Independents..................$13,500 (3%) U.S. House of Representatives
Dina Titus
$1,000
NV001
Democratic
Donald Norcross
$4,000
NJ001
Democratic
Drew Ferguson
$1,000
GA003
Republican
Ed Case
$1,000
HI001
Democratic
Elise Stefanik
$5,000
NY021
Republican
Elizabeth Fletcher
$1,000
TX007
Democratic
Erin Houchin
$2,000
IN009
Republican
Glenn Grothman
$1,000
WI006
Republican
Glenn Ivey
$1,500
MD004
Democratic
Aaron Bean
$2,000
FL004
Republican
Glenn Thompson
$1,000
PA015
Republican
Andy Barr
$1,000
KY006
Republican
Greg Murphy
$1,000
NC003
Republican
Anthony D’Esposito
$5,000
NY004
Republican
Greg Pence
$1,000
IN006
Republican
Anthony Garbarino
$5,000
NY002
Republican
Guy Reschenthaler
$1,500
PA014
Republican
Ami Bera
$5,000
CA006
Democratic
Hakeem Jeffries
$10,000
NY008
Democratic
Ashley Hinson
$6,000
IA002
Republican
Haley Stevens
$1,000
MI011
Democratic
Barry Moore
$1,000
AL002
Republican
Hank Johnson
$1,000
GA004
Democratic
Beth Van Duyne
$4,000
TX024
Republican
Henry Cuellar
$5,000
TX028
Democratic
Blaine Luetkemeyer
$1,000
MO003
Republican
James Comer
$1,500
KY001
Republican
Brad Schneider
$2,000
IL010
Democratic
James Lankford
$1,000
OK000
Republican
Brandon Williams
$6,000
NY022
Republican
Jason Smith
$5,000
MO008
Republican
Brett Guthrie
$2,500
KY002
Republican
Jay Obernolte
$3,500
CA023
Republican
Bryan Steil
$1,000
WI001
Republican
Jen Kiggans
$1,000
VA002
Republican
Buddy Carter
$1,000
GA001
Republican
Jerry Carl
$3,000
AL001
Republican
Carol Miller
$5,000
WV001
Republican
Jim Banks
$1,000
IN000
Republican
Cathy McMorris Rodgers
$10,000
WA005
Republican
Jim Costa
$4,500
CA021
Democratic
Chris Pappas
$2,500
NH001
Democratic
Jimmy Panetta
$2,500
CA019
Democratic
Chris Smith
$1,500
NY004
Republican
John Curtis
$1,000
UT003
Republican
Chrissy Houlahan
$3,000
PA006
Democratic
John James
$1,000
MI010
Republican
Chuck Edwards
$1,500
NC011
Republican
John Joyce
$2,500
PA013
Republican
Dan Newhouse
$2,000
WA004
Republican
John Moolenaar
$1,000
MI002
Republican
Darin LaHood
$1,000
IL016
Republican
Josh Gottheimer
$1,000
NJ005
Democratic
David Rouzer
$4,500
NC007
Republican
Juan Ciscomani
$2,000
AZ006
Republican
Debbie Dingell
$1,000
MI006
Democratic
Julia Brownley
$4,000
CA026
Democratic
Debbie Lesko
$1,500
AZ008
Republican
Julia Letlow
$2,000
LA005
Republican
Diana Harshbarger
$3,500
TN001
Republican
Kay Granger
$5,000
TX012
Republican
46 FRANCHISING WORLD / December 2023
U.S. Senate
Keith Self
$1,000
TX003
Republican
Kelly Armstrong
$1,000
ND
Republican
Kevin Hern
$5,000
OK001
Republican
Amy Klobuchar
$2,500
MN
Democratic
Kevin Kiley
$3,500
CA003
Republican
Angela Alsobrooks
$2,500
MD
Democratic
Kevin McCarthy
$5,000
CA020
Republican
Angus King
$3,500
ME
Independent
$5,000
LA
Republican
Larry Bucshon
$2,000
IN008
Republican
Bill Cassidy
Laurel Lee
$1,000
FL015
Republican
Bill Hagerty
$1,000
TN
Republican
$3,500
DE
Democratic Republican
Lisa Blunt Rochester
$1,500
DE001
Democratic
Chris Coons
Lisa McClain
$2,500
MI009
Republican
Dan Sullivan
$1,000
AK
Lloyd Smucker
$5,000
PA011
Republican
Kevin Cramer
$6,000
ND
Republican
Lou Correa
$2,500
CA046
Democratic
Gary Peters
$1,000
MI
Democratic
Marc Molinaro
$5,000
NY019
Republican
Jerry Moran
$3,500
KS
Republican
Marie Glusenkamp Perez
$2,500
WA003
Democratic
Josh Hawley
$1,000
MO
Republican
Lori Chavez-Deremer
$5,000
OR005
Republican
JD Vance
$1,000
OH
Republican
$5,000
IN
Republican
Mary Miller
$1,000
IL015
Republican
Jim Banks
Matthew Cartwright
$1,000
PA008
Democratic
Joe Manchin
$10,000
WV
Democratic
Michelle Steel
$2,500
CA045
Republican
John Boozman
$1,000
AR
Republican
Mike Bost
$2,500
IL012
Republican
John Barrasso
$5,000
WY
Republican
Mike Lawler
$5,000
NY017
Republican
John Thune
$10,000
SD
Republican
Morgan McGarvey
$4,000
KY003
Democratic
Kyrsten Sinema
$10,000
AZ
Independent
Nathaniel Moran
$1,500
TX001
Republican
Marco Rubio
$1,000
FL
Republican
$2,000
AZ
Democratic
Nicole Malliotakis
$5,000
NY011
Republican
Mark Kelly
Nick LaLota
$5,000
NY001
Republican
Marsha Blackburn
$5,000
TN
Republican
$2,000
IN
Republican
Nick Langworthy
$5,000
NY023
Republican
Mike Braun
Nydia Velazquez
$1,000
NY007
Democratic
Mike Rounds
$1,000
SD
Republican
Raja Krishnamoorthi
$2,500
IL008
Democratic
Roger Marshall
$4,500
KS
Republican
Richard Hudson
$5,000
NC009
Republican
Ted Budd
$5,000
NC
Republican
Rick Allen
$3,500
GA012
Republican
Ted Cruz
$1,000
TX
Republican
Rick Crawford
$1,000
AR001
Republican
Tim Scott
$2,500
SC
Republican
Robert Aderholt
$1,000
AL004
Republican
Tommy Tuberville
$2,000
AL
Republican
Ron Estes
$2,500
KS004
Republican
Rudy Yakym
$1,000
IN002
Republican
Scott Fitzgerald
$1,000
WI005
Republican
Scott Peters
$3,500
CA050
Democratic
CHC BOLD PAC
$5,000
Democratic
Steve Scalise
$2,500
LA001
Republican
Blue Dog PAC
$5,000
Democratic
Tim Walberg
$6,500
MI005
Republican
CMR PAC
$5,000
Republican
Tom Emmer
$5,000
MN006
Republican
Hoosier PAC
$1,000
Republican
Tony Cardenas
$2,500
CA029
Democratic
2024 Republican Senate Victory
$15,000
Republican
Troy Balderson
$3,000
OH012
Republican
E-PAC
$2,500
Republican
Troy Carter
$5,000
LA002
Democratic
National Republican Senatorial Committee
$30,000
Republican
Virginia Foxx
$5,000
NC005
Republican
National Republican Congressional Committee
$1,500
Republican
Zoe Lofgren
$1,000
CA018
Democratic
HOUSE CONSERVATIVES FUND
$5,000
Republican
New Democrat Coalition
$5,000
Democratic
CONGRESSIONAL BLACK CAUCUS PAC
$5,000
Democratic
Leadership PACs/Party Committees
December 2023 / FRANCHISING WORLD 47
WELCOME
NEW IFA MEMBERS
Franchisors 101 Smoke Shop
Columbus, GA Contact: Gail Deleede www.101smokeshop.com
Cafe & Bakery Group
West Salt Lake City, UT Contact: Mr. Randy Clegg www.applespice.com
Cost Cutters
Minneapolis, MN Contact: Angie Henning www.costcutters.com
The Covery Wellness Spa Baton Rouge, LA Contact: Alissa Gray www.thecovery.com
Driverseat Inc.
Kitchener, ON Contact: Mr. Luke Bazely www.driverseatinc.com
First Choice Haircutters (U.S.) Inc. Minneapolis, MN Contact: Angie Henning www.firstchoice.com
First Day Franchising, LLC Flint, MI Contact: Emily Wiechmann www.firstdayfranchising.com
Floral Franchising LLC
Los Angeles, CA Contact: Michael Jacobson www.frenchfloristfranchise.com
Pita Pit Franchising LLC Coeur d’Alene, ID Contact: Meghan Haugen www.pitapitusa.com
Roosters Men’s Grooming Centers Minneapolis, MN Contact: Angie Henning www.roostersmgc.com
SMARTSTYLE
Minneapolis, MN Contact: Angie Henning smartstyle.com
Stiltz Franchising, Inc. Bethlehem, PA Contact: Zana Murad www.stiltzlifts.com
Supercuts
Minneapolis, MN Contact: Angie Henning www.supercuts.com
Tea Time Cafe NOLA
Mandeville, LA Contact: Craig Gonzalez www.teatimecafenola.com
Valvoline Instant Oil Change Franchising, Inc. Lexington, KY Contact: Ms. Sidney Lyman www.viocfranchise.com
Wed Society
Edmond, OK Contact: David Lewis franchise.wedsociety.com
Suppliers The Accessibility App by IBCCES Jacksonville, FL Contact: Mr. Ryan Barry ibcces.org/access-app
Athena Assessment
Spartanburg, SC Contact: Elizabeth Murphy www.AthenaQ.com
Bookkeeping Brands, LLC Weston, CT Contact: Bruce Patz mcobookkeeping.com
Budget Blinds Commercial Solutions Irvine, CA Contact: Michael Hamacher www.budgetblinds.com
Cinch
Draper, UT Contact: Justin Rae cinch.io
CoolVu Glass and Surface Solutions Marietta, GA Contact: Mr. Michael Herrera www.coolvu.com
CTI - Corporate Tax Incentives Folsom, CA Contact: Mr. Patrick Cooney, III www.ctillc.com
CyberMark International Phoenix, AZ Contact: Gordie Hunt www.cybermark.com
Get A Haircut
dbaPlatform
Let’s Get Moving USA LLC
Dot It
Las Vegas, NV Contact: Traci Simon getahaircutfranchise.com Pompano Beach, FL Contact: Tiam Behdarvandan letsgetmovingcanada.com
48 FRANCHISING WORLD / December 2023
St. Petersburg, FL Contact: Ms. Kellie Henson dbaplatform.com Fort Worth, TX Contact: Maysa Ismail www.dotit.com
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Celebrating over 60 years of excellence, education, and advocacy, the International Franchise Association (IFA) is the world’s oldest and largest organization representing franchising worldwide. IFA works through its government relations and public policy, media relations, and educational programs to protect, enhance and promote franchising and the approximately 790,492 franchise establishments that support almost 3 percent of the Gross Domestic Product (GDP). IFA members include franchise brands and franchisees in over 300 different business format categories. Join us, and together we can continue to protect, enhance and promote franchising.
JOIN IFA TODAY franchise.org/membership
NEW MEMBERS
Suppliers (Continued) eb3.work
New York, NY Contact: Mr. John Dorer eb3.work
Emerging Franchise Group LLC dba Emerging Franchise Brands Podcast Tampa, FL Contact: Mr. Frank Fiume, CFE www.EFBpodcast.com
Franchise Altitude LLC
Melbourne, FL Contact: Mr. Dustin Railey www.Franchisealtitude.com
Franchise Captial Solutions
Columbus, NE Contact: Mrs. Lynsay Luchsinger www.franchisecapitalsolutions.com
PiinPoint
StorePay Inc.
PromoRepublic Oy
StructureM
Pryze
Triou Marketing, LLC
SFV Services
Workstream Technologies, Inc.
Kitchener, Ontario Contact: Jim Robeson www.piinpoint.com
Redwood City, CA Contact: Pete Crouse goscanpay.com
Palo Alto, CA Contact: Val Grabko promorepublic.com/en
Bixby, OK Contact: Holly Alvidrez www.structurem.com
Arlington, VA Contact: Tim Hylton www.pryzeapp.com
Lancaster, PA Contact: Erin Dimitriou Smith www.trioumarketing.com
Redford, MI Contact: Ms. Megan Rosen www.sfvservices.com
Lehi, UT Contact: Natalie Jin www.workstream.is 7
Franchise Surgeon, INC
Scottsdale, AZ Contact: Mr. Joshua Schure, CFE franchisesurgeon.com
FranchisePULSE
Red Bank, NJ Contact: Ms. Marianne P. Murphy, CFE murphyconsulting.com
HouseAccount
Brooklyn, NY Contact: Ms. Tina Glickman www.houseaccount.com
myHRcounsel LLC
Plymouth, MN Contact: Mark Young www.myhrcounsel.com
NCCO
St. Paul, MN Contact: Angela Henchen www.ncco.com
pHranchiseLaw
Philadelphia, PA Contact: Mr. William Graefe, Esq. www.pHranchiseLaw.com
50 FRANCHISING WORLD / December 2023
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