Franchise Business Review's annual report, Veterans & Franchising, provides insight into what it takes for a veteran to be satisfied and successful running a franchise, and a list of the 100 top companies for vets based on franchisee satisfaction.
Franchise Business NOV 2014 Ratings & Reviews of Today’s Top Franchises REVIEW VETERANS & FRANCHISING Franchisee Satisfaction Study SPECIAL REPORT: Airforce veteran Terry Jackson (3rd from left) served 11 years in Iraq, Afghanistan, South America, and East Africa before buying his BrightStar Care franchise in 2013. THE LIST: Top 101 Franchises For Vets Rated By Vets PAGE 8 Mosquito Joe’s Robert Rummells: ‘I’m Not a Cubicle Kind of Guy’ PAGE 7 Systems Transfer: From the Army to A All Animal Control PAGE 13
Transcript
Franchise Business
NOV 2014
Ratings & Reviews of Today’s Top FranchisesREVIEW
VETERANS & FRANCHISINGFranchisee Satisfaction Study
SPECIAL REPORT:
Airforce veteran Terry Jackson (3rd from left) served 11 years in Iraq, Afghanistan, South America, and East Africa before buying his BrightStar Care franchise in 2013.
THE LIST: Top 101 Franchises For Vets Rated By Vets PAGE 8
Mosquito Joe’s Robert Rummells: ‘I’m Not a Cubicle Kind of Guy’ PAGE 7
Systems Transfer: From the Army to A All Animal Control PAGE 13
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SPECIAL REPORT: Veterans & Franchising
Features //November 2014
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4 Letter from the Editor The Pride of Franchising
5 Finding The Right Fit: The Best Franchise Brands for Military Veterans
8 THE LIST Best of the Best: Top 101 Franchises for Veterans
Franchisee Profiles
6 Mark and Dawn Kelly, TeamLogic IT
7 Robert Rummells, Mosquito Joe
12 Jim Giuffre, National Property Inspection
13 Steve Carey, CertaPro Painters
13 Vincent D. Cunningham, A All Animal Control
15 Chris Parker, Sport Clips
VetFran, a program run by the International Franchise Association, helps returning service members access franchise opportunities through training, financial assistance, and industry support. VetFran’s ranks have grown to include more than 500 franchise systems that voluntarily offer financial incentives and mentoring to prospective veteran franchise small business owners. Thousands of veterans have become franchise owners through VetFran and other programs. Learn more about VetFran programs at www.VetFran.com.
Helping Veterans Succeed in Franchising
Reviews, interviews, satisfaction awards, and more resources available at: www.franchisebusinessreview.com
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ON OUR COVER
Terry Jackson was born and raised in Lewisburg, TN, and joined the military after graduating from Middle Tennessee State University in 2002. He served as both an officer and combat systems officer for 11 years in Iraq, Afghanistan, South America, and East Africa. Terry supervised more than 50 junior and senior officers along with scheduling 300+ aviators over a 5-continent area of responsibility. He also served as a demonstration officer for the Office of Foreign Military Sales and most recently supervised special air operations in East Africa.
Terry received a buyout package from the military in mid-2013, which provided the funds he and his wife, Shannon, needed to open their own business. With a goal of owning/operating their own business and because of the personal experience Terry had with his grandmother needing in-home care after a stroke, Terry and Shannon began looking into the in-home care industry. After conducting extensive research, Terry and Shannon chose BrightStar Care because of the brand’s passion for providing the highest standards and successful track record.
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SPECIAL REPORT: Veterans & Franchising
Investing in a franchise can be a great opportunity for military veterans. Many franchise com-panies offer special incentives and discounts to veterans to help get them started in business. But keep in mind, great incentives don’t always equate to happy franchisees. What really matters is what happens after you buy your franchise—does the special attention and support you receive before you buy actually carry over once you’re a franchisee?
One of the best ways to know if a franchise opportunity is really as good as it appears is to look at its third-party franchisee satisfaction data. That’s where we come in. Franchise Business Review surveys all kinds of franchisees at all types of franchises to come up with our list of top franchises based on franchisee satisfaction. This report—focused on veterans in franchising— is the only report in the industry that highlights the best franchises for vets based on actual franchisee feedback. The franchise companies featured in this report are the brands that really do support vets—not just in the purchase of a franchise but in their day-to-day operations.
Finding the right franchise opportunity is no easy task, and it can be even tougher if you’re stationed halfway around the world. It may not be easy to conduct the necessary due diligence—calling current franchisees, visiting local stores, and meeting with the corporate office—from afar, but I hope this report can be a starting point for your conversations.
The Pride of Franchising
Thank you for your service—and happy franchising!
Molly Rowe, Editorial Director
The franchise companies featured in this report are the brands that really do support vets—not just in the purchase of a franchise but in their day-to-day operations.
Franchise Business Review is the leading market research company in the franchise industry, assisting prospective franchise buyers through the examination process of today’s leading franchise systems. Before you invest in any franchise opportunity, get the facts from Franchise Business Review. Our independent franchisee satisfaction reports measure the health of any franchise system, based exclusively on the feedback of today’s franchise owners ... the real franchise experts!
To compile data for this report, Franchise Business Review surveyed 3,679 franchisees, representing nearly 350 leading brands across the United States and Canada. We contact all active franchisees within a franchise system and ask them to complete our satisfaction survey. Franchisees answer 33 benchmark questions ranking their franchise system in the areas of financial opportunity, training and support, leadership, operations and product development, core values (e.g., honesty and integrity of franchisor), general satisfaction, and the franchisee community. An additional 16 questions ask franchisees about
their market area, demographics, business lifestyle, overall enjoyment running their franchise, and role in the franchisee community. From this data, we identify our list of top food franchises with above average satisfaction.
It is important to note that all Franchise Business Review research studies are open to any North American-based franchise company with at least 10 operating franchisees at absolutely no cost. The franchise companies listed in our reports are based solely on franchisee satisfaction ratings.
OUR RESEARCH
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SPECIAL REPORT: Veterans & Franchising
Not a lot of people can say they met their spouse while salsa dancing in Afghanistan, but Josh Lien can. Lien, who retired from the Army as a captain in 2007, spent three years in Iraq and Afghanistan doing government contract work before meeting and marrying his wife, then having his first child. He split his time between Texas and Afghanistan, until his wife became pregnant with their second child, and Lien decided it was time he found some-thing local. That something was a Mosquito Joe franchise.
“Purchasing a franchise seemed like a logical next step because I wanted to have the flexibil-ity in my schedule that business ownership provides, without having to develop a business from scratch,” Lien said.
One in seven franchises is owned by a vet, according to the International Franchise Association (IFA), and a growing number of franchisors actively recruit for military experi-ence. Why the effort to bring veterans into franchising? The answer is two-fold, franchisors tell us—they want to give back to vets and they see a real synergy between the skillset required for the military (the ability to follow direc-tions, work in teams, and lead) and the skills necessary to succeed in franchising.
“Being a vet is a special thing, and we certainly appreciate their service to our country,” said Roland Bates, CEO of National Property Inspections (NPI), which offers a 10% discount on its franchise fee for military veterans. “At the same time, vets like any other entrepreneur have to work hard and be smart to be successful. We have many successful vets who are NPI owners and who have had a great talent for franchising.”
Franchisors tell us there are typically two types of military candidates—those who complete their service commitment and move on to civilian jobs and those who have long military careers and reach leadership positions. Depending on the franchise, one type may be a better fit than another.
Finding The Right Fit: The Best Franchise Brands for Military Veterans
Army veteran Brian Moss and his wife, Josie, are A All Animal Control franchisees in North Houston, TX.
“I wouldn’t agree that just being a veteran necessarily makes a person a good candidate for franchising. The low-level ranks in the military do not develop the same planning and leadership skills that higher ranks do, so I feel that individuals need to have achieved a certain rank or have held the right positions that develop these skills,” Lien said.
This is not to say some people with short military histories won’t be as successful in franchising as career vets. It really depends on the person and the franchise.
“We have a great mix of both,” said Kevin Wilson, president & CEO of Mosquito Joe, which offers veterans a $2,500 discount on their initial franchise fee. “On one end, we have a 22-year Army Ranger veteran, and, on the other, individuals serving the minimum time required. The common theme we hear from our vet franchisees is ‘I want to own my own business, and I don’t want to sit at a desk.’”
RESEARCHING A FRANCHISEThere are countless franchise opportunities for veterans, and with hundreds of brands offering special incentives specifically for vets, deciding on just the right franchise can be an arduous task.
Top 5 Franchise Industries for Veterans
1. Services
2. Senior Care
3. Home Services
4. Advertising and Marketing
5. Food
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SPECIAL REPORT: Veterans & Franchising
The 101 franchise companies listed in this report are a great place to start, because these are the brands rated highest in franchisee satisfaction by actual veteran franchisees (and the entire system of franchisees). This goes beyond incentives and sign-on discounts and really provides the true story of what it’s like to be a franchisee. Another resource is IFA’s VetFran program, which has a number of research tools and resources for vets and active-duty military to help research brands. VetFran was started in 1991 to encourage franchisors to recruit veterans for franchise ownership. In the last three years alone, more than 5,000 veterans have become franchise business owners.
Many prospective franchisees begin their search for a franchise while still on active duty. This can make the due diligence process especially difficult and long (franchisors told us the franchise sales process can take twice as
long with active-duty candidates). It’s not easy for an enlisted prospect to pick up the phone and call a franchise development person or 20 current franchisees for validation. They need online tools—on-demand webinars, a PDF of franchisee satisfaction reports, easy-to-access educational materials—that they can look at wherever and whenever they want.
Office Pride offers print and online materi-als specifically for veterans and appears at
military exhibitions and bases to tell people about their franchising opportunity. National Property Inspections and Christian Brothers Automotive, which offers a $12,500 discount to qualified vets, will facilitate interviews and Discovery Day meetings outside of the regular schedule for active-duty candidates.
“We do anything we can to help them and make the process as smooth as possible,” said Bates.
If a franchise doesn’t offer vet-specific recruitment resources, prospective franchisees should ask for them. Many franchisors told us they will go out of their way to provide infor-mation to a candidate who is based overseas.
“We can and have adjusted our recruitment process so the entire diligence phase, includ-ing Discovery Day, can be completed virtually using Skype and a series of webinars,” said Mosquito Joe’s president and CEO Wilson.
CONCEPTS/SECTORSOur research on veterans in franchising falls closely in line with our franchise research in general—the most successful franchisees don’t necessarily have direct experience in their particular industry, and they aren’t necessarily drawn to sectors or services that match their military specialties. We see a lot of veterans in service businesses, like Jan-Pro and Heaven’s Best Carpet Cleaning. We also see many vets in senior care, real estate, and the food sector.
The franchisees we interviewed for this report emphasized the importance of prospec-tive franchisees looking first at the business model and corporate structure of a franchise and then at the service offering because not all franchise concepts require the franchisee to actually do the service they provide.
Chris Parker, for example, a 22-year Air Force vet, bought a Sport Clips franchise with no prior experience running a salon or cutting hair. Parker and his wife Karen worked
For most military veterans, “retirement” doesn’t mean golf and early bird specials. For vets like Mark Kelly, it means diving into a whole new career after spending your entire adult life following very specific procedures and being part of a tight-knit team. It’s not always an easy transition.
“It was a little difficult to come back and enter straight into the job market,” said Kelly, who retired in 2009 after 25 years flying planes for the U.S. Air Force.
Kelly and his wife Dawn (also a vet) started exploring business opportunities in 2011 and happened upon franchising after hearing a presentation by a franchise broker. Franchising immediately made sense. Both Kellys had joined the Air Force right out of high
school, so systems, checklists, and procedures were an integral part of most of their adult lives.
“The military is a large corporation with its own systems and processes,” Mark said. “Typically, when you spend a whole career there, you get used to working with systems. You develop a great appreciation for what a system can do for you.”
The Kellys were drawn to TeamLogic IT because of its technology-focus (Dawn worked with computers in the Air Force, and Mark has computer science and engineering degrees), but the biggest reason for selecting their franchise was the corporate office, Mark said.
“When I was doing my due diligence and talking to other franchisees, the one thing they all mentioned was the supportiveness of the franchisor,” Mark said. “This has proved true since we signed on—the corporate team bends over backward to help us out in so many ways—especially in marketing and sales.”
Like many vets going into franchising, the Kellys didn’t have much experience in the marketing and sales side of running a business so TeamLogic’s support in this area was critical to their success.
While no career will ever be exactly like military service, the Kellys say franchising reminds them of their days in the military.
“In the military, you are connected everywhere and their goal is to make you successful. TeamLogic’s goal is also to help you do well. It reminds you of being part of something like the military,” Dawn said.
MARK AND DAWN KELLY — U.S. Air Force Veterans & TeamLogic IT Franchisees
In The Trenches
Many prospective franchisees begin their search for a franchise while still on active duty. This can make the due diligence process especially difficult and long. It’s not easy for an enlisted prospect to pick up the phone and call a franchise development person or 20 current franchisees for validation.
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SPECIAL REPORT: Veterans & Franchising
with a business ownership coaching firm and researched dozens of franchise opportunities before settling on Sport Clips.
“It was a giant step for us because neither Karen nor I had any experience in either busi-ness or hair care. For us to do this, we needed to make sure we were comfortable enough to execute the game plan,” Parker said.
CertaPro Painters franchisee Steve Carey has a similar story. He came to franchising after 30 years in the Air Force. He had no experience painting, but he was drawn to the CertaPro system and the life of a franchisee.
“I would recommend when you choose a path, don’t focus on the exact nature of the industry; focus on what you have to do in that industry. Be sure that the industry represents the things you enjoy doing. I spend a tremen-dous amount of time on the road talking to folks—it can be exciting if you enjoy that,” Carey said. (Both CertaPro and Sport Clips offer 10% discounts for qualified veterans.)
Of course, many vets are drawn to hands-on concepts that require skills similar to what they did in the military. This is true of TeamLogic IT’s Dawn Kelly. Dawn was a computer technician in the Air Force before opening her computer consulting business with her husband.
INVESTMENTFranchise Business Review’s 2014 Top 101 list includes a diverse group of investments, starting as low as $500 for a Cruise Planners franchise and exceeding $3 million for a day-care center like The Learning Experience. The median investment level is just over $100,000 before any special veteran discounts.
Generally speaking, we see younger vets (or those with shorter military careers) invest-ing in lower-priced franchises. This makes sense since they’ve had less time to save the capital required by higher-cost franchises, and because many of the hands-on service concepts that are popular with this group cost less to launch and run.
A number of franchise businesses offer in-house financing programs to help prospec-tive franchisees pay for their start-up.
“So far this year, most new franchisees have taken us up on our in-house financing,” said Heaven’s Best Carpet Cleaning CEO Cody Howard. “We require $14,450 up front, and we will finance the balance of $14,450 over a five-year period.”
In addition to providing financing assistance, many franchise companies have taken steps to reduce the financial burden of
Please describe your past military experience.I enlisted in the United States Army in 1988 and served as an Army Ranger. Once off active duty, I served as a Ranger instructor for the Virginia Army National Guard. I retired after 22 years of service and did a couple defense contractor jobs before finding Mosquito Joe in 2013.
Why did you choose your franchise?It came down to three main things: marketing, support, and the lifestyle of the opportunity. I’m not a cubicle kind of guy. I’m an outdoor kind of guy, so doing battle with pesky mosquitoes and creepy crawlers made sense. That’s my new enemy. I also wanted to pair my strengths with the strengths of my wife in a business we could run and enjoy together. She handles the office, and I’m in the field. Lastly, I appreciated that Mosquito Joe is part of the VetFran program and offers a franchise fee discount for veterans.
How has your military training helped with running a business?In the military, Army Rangers are often considered jacks of all trades so while I had never run a business before or worked in pest control, I was used to learning new skills quickly and felt confident in my ability to do that. There are a lot of operational skills from the military that translate well into running a business. Perhaps most importantly, each day in the military brought new challenges, and my military training gave me the confidence and flexibility to attack those challenges head on. I do the same with running my business.
For more information on Mosquito Joe opportunities, call (855) 564-6563 or visit www.mosquitojoefranchise.com.
“ There is nothing else we would rather be doing. We are completely ‘sold’ on this franchise opportunity, the corporate vision, and our future years in business.” – Christian Brothers Automotive Franchisee
For more information on the companies in this report, visit www.FBR50.com | 9
SPECIAL REPORT: Veterans & Franchising
Survey Date
Start-Up Investment
Cash Requirement
Domestic Franchises
* Firehouse Subs — more on back cover Fast casual
Apr 2014
$169,414 – $989,553
$80,000 – $100,000
807
TeamLogic ITIT services
May 2014
$80,000 – $130,000
$50,000 54
* Sandler Training Business consulting & coaching
Jun. 2014
$73,000 $100,000 181
* Home Instead Senior Care In-home senior care
Dec. 2013
$100,000 – $115,000
$45,000 645
Home Care AssistanceIn-home senior care
Sep. 2014
$150,000 – $200,000
$20,000 100
* Our Town America — more on p. 15 Advertising services
Sep. 2014
$49,000 – $85,000
$89,000 47
Oxi Fresh Carpet cleaning
Oct. 2013
$33,495 – $55,950
$38,345 – $60,115
276
* CertaPro Painters Painting
Jan. 2014
$129,000 – $161,500
$75,000 452
Aire-Master of AmericaCommerical hygene service
Nov. 2013
$21,600 – $36,000
$30,000 – $50,000
106
WingstopQuick-service
Apr. 2014
$211,628 – $650,540
$200,000 650
* Mosquito Joe — more on p. 7 Mosquito control services
Aug. 2014
$63,850 – $119,250
$30,000 – $55,000
39
* Window Genie Window cleaning
Jul. 2014
$89,000 – $139,000
$60,000 – $80,000
176
* CruiseOne Travel agency
Apr. 2014
$4,625 – $9,800
$9,800 900
* Two Men and a Truck Moving services
Dec. 2013
$178,000 – $583,500
$150,000 – $600,000
261
Real Property ManagementProperty management
Sep. 2014
$75,000 – $100,000
$75,000 262
Pinch A PennyPool supplies retailer
Aug. 2013
$250,000 – $350,000
$50,000 222
Murphy Business & FinancialBusiness brokers
Dec. 2013
$45,750 – $113,600
$30,000 174
ActionCOACHBusiness coaching
Feb. 2014
$12,500 – $108,441
$35,000 237
* Signal 88 Security Home services
Nov. 2013
$85,350 – $135,650
$30,000 262
* Padgett Business Services Financial services
Dec. 2013
$99,975 $99,975 400
Truly Nolen of AmericaPest control
Oct. 2013
$45,200 – $355,000
$30,000 101
* Pillar To Post Professional home inspection
Sep. 2014
$33,500 – $41,500
$10,000 443
UnishippersBusiness shipping
Mar. 2014
$55,000 – $150,000
$75,000 329
* The Goddard School Early childhood education
Aug. 2014
$610,300 – $848,200
$150,000 417
LaRosa’s PizzeriaFull service restaurant
Jun. 2014
$500,000 – $850,000
$150,000 – $255,000
65
VetFran Member
“ Every aspect of this franchise is excellent, from helping to find a location, all the way to helping train employees how to run a business.”
– Wingstop Franchisee
SPECIAL REPORT: Veterans & Franchising
* View this company’s full satisfaction report at: www.FranchiseBusinessReview.com
THE LISTBest of the Best: Top 101 Franchises for Veterans
Survey Date
Start-Up Investment
Cash Requirement
Domestic Franchises
MathnasiumMath learning center
Jan. 2014
$99,750 – $139,375
$40,000 492
* Snap-on Tools — more on p. 1 Automotive services
* Happy and Healthy Products Distributer, healthy snacks
Feb. 2014
$45,000 – $90,000
$24,508 – $89,045
65
* Pinot’s Palette Wine & painting studio
Feb. 2014
$74,700 – $173,500
$80,000 95
Paul Davis Emergency ServicesEmergency home services
Feb. 2014
$41,784 – $147,824
$50,000 109
Sanford Rose AssociatesRecruiting services
Jan. 2014
$109,350 – $146,180
$109,350 – $146,180
60
VetFran Member
“ The training and support is really top notch. It is amazing how much we have learned in just one year of being a member.”
– Linc Service Network Franchisee
“ Right at Home is on the leading edge. There are no other franchises involved in home care that come close to Right at Home.”
– Right At Home Franchisee
— more on inside back cover
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SPECIAL REPORT: Veterans & Franchising
Survey Date
Start-Up Investment
Cash Requirement
Domestic Franchises
Auto Appraisal NetworkAutomotive appraisal services
Sep. 2013
$12,000 – $30,000
$3,000 – $10,000
25
Captain D’sQuick-service
May 2014
$700,000 – $900,000
$350,000 520
Anago Cleaning Systems (master franchisors)Commercial cleaning services
Nov. 2013
$125,000 – $171,000
$125,000 – $171,000
35
InXpressBusiness shipping
Dec. 2013
$49,700 – $59,700
$80,000 86
Boulder DesignsLandscape design
Sep. 2014
$54,725 – $68,085
40,000 90
9Round KickboxingFitness
Apr. 2013
$52,850 – $92,900
$18,000 159
Valpak Direct marketing
May 2013
$92,500 – $120,800
$92,500 – $120,800
167
PropertyGuys.comReal estate
Sep. 2014
$45,000 – $92,000
$40,000 – $70,000
119
Big Frog Custom T-ShirtsClothing retailer
Aug. 2014
$185,000 – $210,000
$75,000 67
Kid’s Closet ConnectionChildren’s consignment
Jan. 2014
$12,000 – $17,000
$12,000 – $17,000
40
The Grout DoctorGrout repair services
Dec. 2013
$20,405 – $33,415
$20,405 – $33,415
71
Jet-BlackAsphalt sealcoating & repair
Mar. 2014
$46,000 – $109,310
$16,475 – $36,035
96
* The Little Gym Early childhood education
Jun. 2013
$200,000 – $359,000
$75,000 – $100,000
214
Game TruckMobile gaming services
Sep. 2014
$115,250 – $320,500
$115,250 – $320,500
70
Sky Zone Indoor trampoline park
Feb. 2014
$811,000 – $2,400,000
$600,000 79
Orange Theory FitnessFitness
Feb. 2014
$327,600 – $634,100
$327,600 – $634,100
109
Bin There Dump ThatCleaning services
Sep. 2013
$150,000 – $225,000
$75,000 64
Computer TroubleshootersComputer repair services
May 2014
$17,200 – $37,900
208
ShelfGenieShelving solutions
Oct. 2013
$70,100 – $131,250
$45,000 156
Caring Senior ServiceIn-home senior care
Apr. 2014
$58,035 – $98,750
$35,000 60
The Learning ExperienceEarly childhood education
Mar. 2014
$495,299 – $1,040,049
$150,000 135
ASP – America’s Swimming Pool CompanySwimming pool maintenance
Jun. 2014
$52,781 – $89,840
$25,000 160
Renue Systems — more on p. 12Cleaning services
Aug. 2014
$95,600 – $143,600
$75,600 – $123,600
24
Wine and DesignWine & painting studio
Jun. 2013
$32,800 – $66,500
$32,800 – $66,500
44
Safe ShipBusiness logistics
Jun. 2014
$49,900 – $138,800
$49,900 – $138,800
31
VetFran Member
“ I love this company and the people who are drawn to it! The Little Gym people are some of the very best people that I have ever met!”
– The Little Gym Franchisee
“ As both a parent and longtime franchisee, I know The Leaning Experience is the best in the business. Because of this, I am rarely concerned with competition. They help us establish rates and make us look good!”
– The Learning Experience Franchisee
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SPECIAL REPORT: Veterans & Franchising
running a franchise by reducing franchise fees, eliminating office space and vehicle require-ments, and working with vendors to negotiate the best deals possible for franchisees.
“We have vendor relationships that give very healthy discounts to franchisees. And we also allow franchisees to do their shopping at the local level if they can find a better price,” added Robb King, vice president of opera-tions for Paul Davis (the parent company of franchise Paul Davis Emergency Services, which specializes in emergency mitigation and reconstruction).
WHAT IT TAKES TO BE SUCCESSFULRunning a franchise requires many skills—the ability to follow the franchisor’s established process, the ability to lead under pressure, and the ability to work with many types of people. In many ways, the military cultivates the ideal franchisee.
“There are a lot of intangible skills that military service imparts, and I rather like to distill this package of skills down a single phrase: the ability to make things happen,” said Mosquito Joe franchisee Lien.
National Property Inspection’s CEO Bates told us franchisees with military experience tend to be more methodical, which helps in the home inspection business. Catherine Monson, CEO of FASTSIGNS, told us vets usually have the perseverance, commitment, and work ethic that is required in the early stages of opening a business.
However, while vets can be a great fit for franchising because they are used to following a set process and structure, it’s important to note that most franchisees need to learn addi-tional skills to run their business.
Franchisors frequently need to train franchi-sees of all types in basic business principles, marketing, and sales. This is where the franchise model becomes helpful because strong franchise
In The Trenches
Jim Giuffre joined the Army in 1977, right out of high school, but, by the age of 21, he’d gained many of the traits that are often hard to find in young employees.
“Being in the service taught me how to follow rules, be on time, do the best job I could do in anything that was required of me, and respect my superiors,” Giuffre said.
He also learned one skill that would later be a key to his success as a National Property Inspection franchisee: how to operate heavy equipment. Giuffre says he frequently has to conduct inspections on machinery and his Army training gives him an advantage over others without that experience.
That doesn’t mean everything was roses when he and his wife finally bought their franchise in 2006. They purchased their business at the start of the housing industry downfall, which had a big impact on the inspection business.
“Without being the owner of the National Property Inspections franchise, I don’t think we would have survived in business. Many of our competitors who are not franchise owners shut their businesses down,” Giuffre said.
Giuffre and his wife researched many inspection franchises before going with NPI. Ultimately, Giuffre says, they liked NPI’s training programs, corporate support, initial cost, and royalty structure. The franchise system helped Giuffre and his wife set up their home office and learn the basics of running a business.
“The keeping track of accounting information was difficult at first because I had no training in my past to be able to know what to do,” Giuffre said.
It was also challenging, Giuffre said, to rely so much on others (like realtors) for success. Today, however, some of the Giuffres’ closest friends are realtors and past clients.
“It is the American dream to be able to work for myself and be with my family,” Giuffre said. “I am working hard for my growth, not someone else’s growth. It is actually fun to see how my company has grown … That is a huge sense of pride for me.”
JIM GIUFFRE — Army Veteran & National Property Inspection Franchisee
Continued from page 7.
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SPECIAL REPORT: Veterans & Franchising
brands have an effective system in place to train new franchisees in these areas.
“We teach commercial cleaning, opera-tions, sales and marketing, financial planning, and time and operations management,” said Jeff Burridge, marketing and branding manager of Office Pride. Office Pride offers veterans a 10% discount off the franchise fee.
For veterans coming straight from active duty to franchising, there may be an adjust-ment period as they transition to the lifestyle of running a business.
“As a rule, and assuming they are not deployed to some hot spot, most work a set schedule. In any service business, you must learn to work more of a flexible schedule. In the property inspection business for example, working a straight 8 a.m. to 5 p.m. schedule, would be a disadvantage,” said NPI’s Bates.
Office Pride’s Burridge says a veteran’s ability to think logically and fast is an advantage in franchising, but some franchisees told us it
may be a challenge for some veterans to learn not to react too quickly.
“Flying an F16, there were times I had to make pretty quick decisions,” said CertaPro franchisee Carey. “I make quick decisions in business, too, but you have time to sort out facts. There’s a balance. You want to respond to customers, but the first step is to listen and then offer suggestions or action plans.”
Beyond the personality traits it takes to be successful in franchising, it also requires enough money. It is critical that prospective franchisees (vets and non-vets) know exactly what they are getting into financially when they buy a franchise. Franchisees often have unrealistic expectations going into a busi-ness, especially related to their earnings and expenses, which is reflected in their overall satisfaction later on.
“Culturally, running a franchise is quite different from the military,” said TeamLogic IT franchisee Mark Kelly. “Regardless of what
In The Trenches
As a fighter pilot then colonel in the United States Air Force, Steve Carey relished strategy, leadership, and taking calculated risks. When it came time to retire from the military in 2007, he was drawn to business ownership because it required those same skills.
“My wife and I went through a multitude of options on what we could do as business owners. Should we start our own niche store somewhere? Or did we want to go to corporate America? Or did we want to follow along with a franchise?” Carey explained. “We came to the resolution that we didn’t want to start a brick-and-mortar business where we were tied to it from 8-5. We wanted something that was engaging, where we could connect with people, and where we had the decision-making ability to grow the business to whatever level we chose.”
That something was franchising, the Careys decided. Soon after, a franchise headhunter introduced them to several franchise opportunities, and they quickly settled on CertaPro Painters, even though they hadn’t been looking specifically for a painting business.
“I saw things in CertaPro that paralleled my vision, both at the corporate level and franchisee level. They were focused on ensuring success for franchisees, and they were a people-oriented organization in which it was very easy to connect with people at the corporate level. They were really focused on trying to grow a culture of good businessmen and women.”
Carey’s first impression of CertaPro proved true, and five years later, he’s still relishing the opportunities to lead, strategize, and take risks in his Alabama-based painting business—even as he follows the CertaPro model and system.
“At no point have I felt like the corporate office was going to come in and say, ‘No, don’t do that,’ if I wanted to do something,” Carey said. “They understand it’s my business, but they do a great job of mentoring us.”
STEVE CAREY — Air Force Veteran & CertaPro Painters Franchisee
Please describe your past military experience.My military career spanned over 20 years. I enlisted in the Army in August of 1991 as a Reconnaissance and Surveillance Specialist and retired as a First Sergeant in October of 2011. I have had numerous assignments around the world, and I am a combat veteran of Operation Enduring Freedom (Afghanistan) and Operation Iraqi Freedom (Iraq).
How long have you been a franchisee?I started with the purchase of the Columbia, SC, office in 2011, and with the help of the A All Animal Control (AAAC) support system, I was able to grow that office from start-up to one of the top five offices in the nation. I have also purchased the Louisville, KY, franchise market.
Why did you choose your franchise?It was a proven system in the very competitive industry of nuisance wildlife control. Their support services have developed a proven system of taking a new AAAC office from start-up to a fully operational and profitable franchise.
How has your military training helped with running a business?My military experience has been instrumental in my success in many ways. From the basics of managing my schedules to the complexities of managing administrative tasks and employees. Military experience also instills a level of professionalism in you that your customers will notice and want to hire.
Where do you see yourself in five years?I see myself continuing to run a very successful AAAC franchise here in Louisville, KY, and expanding into other cities throughout the state.
For more information on A All Animal Control opportunities, call (866) 380-9453 or visit www.aallanimalcontrol.com.
F E AT U R E D
Franchisee
Louisville, KYA All Animal Control Franchisee since 2011
Vincent D. Cunningham
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SPECIAL REPORT: Veterans & Franchising
you do, there’s a basic safety net in the military. When you go into any small business, it’s all you. You have to be prepared for that safety net to be gone and be able to work without a net.”
Our research shows that veteran franchi-sees earn 14% less annually than non-vets ($69,498 compared with $81,107). While veteran franchisees earn less money from their non-veteran peers, it’s not because they are below-average performers. The real reason appears to be tied to the fact that veteran fran-chise operators are less likely to own multiple franchise units, and it is multi-unit owners that have the highest incomes in franchising, and skew the income averages higher.
If you’re considering a franchise opportu-nity, pay close attention to two sections of the franchise disclosure document (FDD): Item 7 and Item 19.
Item 7 outlines the estimated expenditures needed to establish a business, but all Item 7s
are not equal. Some companies will outline the necessary working capital in great detail, but others— who might want to keep the stated investment level as low as possible— don’t. Investors must understand and plan for the fact that it might cost three to four times more than what is listed in the Item 7 to actually run the business. If you’re considering a franchise opportunity, you could ask franchisees if their experience and expenses were in line with Item 7 in the FDD. You should also ask both the franchisor and current franchisees about the company’s cost-cutting initiatives that
directly relate to franchisees.Item 19 is optional for franchisors and,
therefore, isn’t always included in a company’s FDD. However, we recommend all potential franchisees thoroughly review and under-stand this document, if available, because it can shed some light on your potential business profitability. It’s designed to provide financial data to give you more insight into the earning potential of a particular brand. Like Item 7, every Item 19 is different, but it can provide invaluable information if the franchise com-pany publishes accurate revenue and cost
If you’re considering a franchise opportunity, pay close attention to two sections of the franchise disclosure document (FDD): Item 7 and Item 19.
Army veteran Joshua Lien is a Mosquito Joe franchisee in Austin, TX.
For more information on this report, visit: www.FranchiseBusinessReview.com | 15
SPECIAL REPORT: Veterans & Franchising
figures. Most important, keep in mind that the profits of a business (if any) are often substan-tially more than what the business owner gets to take home in personal income. Be sure to include appropriate allowances for franchise royalties/fees, taxes, debt repayment, and business reinvestment funds when putting together your business plan. These are key financial items often overlooked by prospec-tive franchise buyers.
FRANCHISEE SATISFACTIONOne of the best ways to know if a franchise opportunity is really as good as it appears is to look at its third-party franchisee satisfaction data. Franchise systems that don’t provide third-party data may have deeper issues, and those that do provide data offer a wealth of information on the system’s leadership, culture, training and support, financial outlook, and franchisee community.
In our recent survey of close to 3,000 military-trained franchisees, we found ten brands that especially stand out when it comes to franchisee satisfaction: Jan-Pro,
Visiting Angels, Heaven’s Best Carpet Cleaning, Sotheby’s International Realty, Kona Ice, Proforma, Precision Concrete Cutting, Christian Brothers Automotive, Cruise Planners, and Palm Beach Tan. Not surprisingly, many of these names are the same brands that top our annual list of Top Franchises for all of franchising. It makes sense that brands focused on overall franchisee satisfaction would also have high satisfaction among franchisees who are veterans.
Veterans tend to rate their satisfaction about the same as non-vets on average. Eighty-two percent of all veterans said they enjoy being a part of their franchise organizations, and 79 percent say they would recommend their franchise to others. Seventy-three percent of all vets said “they would do it again today” related to investing in their franchise.
The areas where satisfaction runs the highest include marketing & promotional programs, effective use of technology, and training and support programs. In all of these areas, veteran franchisees are at least 6% more satisfied than their non-vet counterparts
In The Trenches
On the surface, Chris Parker’s life as a Sport Clips franchisee seems worlds away from the 22 years he spent in the Air Force (mostly flying planes), but it’s not as far away as it seems. That’s because Sport Clips CEO Gordon Logan was actually a pilot like Parker before starting the franchise, and the sports-oriented hair business is run more like a fighter jet than a barber shop.
“Gordon and his team did a great job making sure that everything was planned out. He was a pilot like I was, and our lives depended on checklists. Everything was dictated to us. If regulations say we can do something, we can. That’s the type of thinking that Gordon put into this franchise,” Parker said.
Parker and his wife, Karen, (who’s also his business partner) opened their San Antonio-based Sport Clips franchise in 2008. Although they had no previous experience in hair care before buying the franchise, they liked the way it was set up and felt it would be easy to run.
“For us to do this, we needed to make sure we were comfortable enough to execute the game plan. It is a very simple concept—it’s one thing,” Parker said. “We liked that it was an owner investment and that we were building equity in the future.”
Even with a simple concept, Parker said the early days of running his franchise were scary. He and his wife spent many hours in the store, and when they weren’t there, they were thinking about it.
“Basically what you’re doing is marrying the franchise, and your kid is the store. You’re always checking to make sure they’re well and they’re fed,” Parker said. “If you don’t like being a parent, you shouldn’t be a franchisee.”
That’s why he recommends prospective franchisees take their time to find a franchise that will provide the support and guidance—or in Parker’s case, the checklists—that will make the early days of business ownership less stressful.
CHRIS PARKER — Air Force Veteran & Sport Clips Franchisee
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SPECIAL REPORT: Veterans & Franchising
(6.4% more satisfied in training and support; 8.4% more satisfied with technology; and 10.8% more satisfied with marketing). This could be because vets are more likely to follow the instructions and system set up by their franchisor early on than new franchisees who don’t have military training.
When you’re researching a franchise, the ins and outs of the marketing program are important. Common complaints related to marketing are that the franchise brand doesn’t do enough marketing at the local level and marketing fees aren’t justifiable (at least in the eyes of the franchisee). You’ll want to answer a number of questions related to marketing: How does the franchisor approach marketing and does it meet your expectations? How is the marketing budget used (and do they share that budget with franchisees)? What do local and national efforts look like? Do they provide local support and training or do they leave that up to the franchisees (sometimes, it makes sense to leave local efforts up to the franchisee but you should know this going in)?
You’ll also want to look at the franchise’s plan for long-term support and training. We often see franchisees at the 3- to 5-year mark becoming less satisfied or less engaged. When looking at a particular franchise concept, potential franchisees should carefully research what they’ll be getting out of the brand not just at start-up, but three, five, and ten years out.
Communication is another big topic of discussion in our survey. As a prospective franchisee, you should carefully research a franchisor’s communication (methods, frequency, two-way communication, level of franchisee input, etc.). You may get a sense of a system’s communication strengths and weaknesses as you conduct your research—are they quick to respond to your questions, do they provide lots of materials online and in-person? Remember, however, that the person you’re communicating with is most likely a salesperson who has a stake in the game and who won’t be your point of contact once you’re a franchisee. Ask for examples of how the corporate office communicates with franchisees on an ongoing basis, and talk to current franchisees about the accessibility of the executive team and whether they listen as much as talk.
When it comes to franchisee satisfaction, we usually see a correlation between satisfac-
tion and franchisee expectations. Franchise brands that set clear, realistic expectations with prospective franchisees tend to have hap-pier franchisees. This is especially true related to satisfaction with financial performance—franchisees who go into business with realistic expectations of what they will make, and how much work it will take, as operators are more satisfied (and those who go in with unrealistic earning expectations are, not surprisingly, less satisfied). Be sure you understand the profitability model of your business. Take a close look at the Item 19 (part of the Franchise Disclosure Document), if available, and be sure it tells the true story. Ask current franchi-sees what the ramp up is like, how long it took them to earn a salary, how they rate their franchisor’s financial opportunity, and whether your financial expectations are realistic.
SUMMARYFranchisees with military experience aren’t guar-anteed success, but they may have more charac-teristics for success than non-veterans because of their familiarity and comfort with systems, teamwork, and following a step-by-step protocol.
Although many franchisors aggressively recruit veterans through discounts and other special offers, it’s important to note that not all of them provide great opportunities for vets. Only thorough due diligence—especially research into how other vets have fared in the system—can adequately reveal how a system treats franchisees once they sign that franchise agreement.
Prospective franchisees (especially those stationed abroad) should ask franchisors for online company materials and financials, franchisee satisfaction reports, webinars, and anything else you need to make the research process easier from afar. Perhaps most impor-tantly, you should contact existing franchisees who are veterans to get the true picture of how well the system supports vets.
Most of all—and this is true whether you’re a veteran or not—it’s important you have realistic expectations for your business—what the lifestyle will be like, how much money you’ll make, and what your expenses will be. This will have a huge impact on your overall satisfaction as a franchisee.
For more information on franchising or the companies featured in this report, please visit www.FranchiseBusinessReview.com.
A Look at Veteran Franchisees
live/work in the south
38%3%
Median age is 55 – 64
hold an associates degree or higher
would recommend their franchise brand to someone else
79%
would do it all over again
73%
Vets earn 14% less annually ($69,498 for vets vs. $81,107 for non-vets)
but are also more likely to be single-unit operators
(70% of vets own one unit, vs. 63% for non-vets), which is probably what accounts
