FRANCHISE FEATURE

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My Kingdom for a Dog Trainer

No matter interest rates, fluctuating fuel prices or international conflict. You know things can’t be so bad when you can actually make a living as a pet butler or junk hauler.
    Those are just two among thousands of business concepts available by franchise, with new ideas and “better mousetrap” variations churning out daily.
    Franchises dominating today’s marketplace fit snugly into four boomer-driven categories: personal services, fast and fresh foods, home improvement, and those businesses virtually insulated from economic ups and downs.
    It’s no surprise that the aging and affluent Boomer generation is driving new economic opportunity. They’ve got the dough, are on the go, and can’t say no to anything that might make life easier.
    1-800-GOTJUNK franchises have thrived in this era of extreme makeovers. The way local franchisee Chris Heffington sees it, his company saves people a lot of valuable time. [ finger: 1800gotjunk.com ]
    “People’s time is worth a lot of money nowadays, and they’ll pay for a service that will help them out,” says Heffington. “What would you rather do, take all day or pay a hundred bucks to get rid of something in a half hour?”
    Personal services that save time or provide a benefit include housekeeping, yard care, and dog training  (C’mon, you’ve heard it, “It’s Uncle Matty to the rescue”).
    In-home senior health care services are also atop this leader board. For one Sacramento-based health services franchisor, Always Best Care, the growth curve is swelling. [ finger: alwaysbestcare.com ] “There’s a need for this service – the fastest sector is over 65,” says Carly Moore, franchise development director for ABC. “We have over 38 competitors in this area alone, and business is great!”
    Staving off the rest home as long as possible means healthier fast, fresh and casual food businesses will do well. Port of Subs, a Reno, Nevada-based deli sandwich franchise, has 10 locations in the Sacramento-metro region, with plans for more. Mike Powell, Vice President of Operations, says, “We’re confident it’s a market we have to be in, and one that’s well situated to the public’s move towards more healthy food.”
    Then there are the stores with stuff homeowners can’t seem to live without. Remodeling is thriving indoors and out, from koi ponds and bocce courts to bidets in the bathrooms. San Rafael-based California Closets is a fast-growing installed closet storage franchise. Outside, a synthetic putting green by Tuff Turf is pet friendly and never needs mowing.
    Lastly, businesses unfazed by interest rates or climate change include hair cutting, copy and shipping shops, and janitorial services.
    Steve Fryslie and his wife Star plan to open a Sport Clips hair salon, where barbershop meets sports arena. Stores feature sports memorabilia and individual TVs at each cutting station.
    Fryslie says Sport Clips is a solid company that will fit into this sports-happy market. “Obviously there’ll be more Kings memorabilia than anything else,” says Fryslie. The proprietor doesn’t necessarily do the day-to-day work. As for picking up a scissor and comb, Fryslie laughs and says “I’m being strongly encouraged not to even go down that road.”

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Critical Thinking

Dig Deep
• Assess what’s in your skill toolbox and bank account.
• Search, read, breathe franchise background information.
• Consult with a franchise business expert or business development center.

Build An Advisory Team
• Prepare your family for big changes in the daily routine.
• Line up legal, financial and social support network.

Set Clear Goals
• Will it be a livelihood or a hobby? Your time and money are on the line. You make out the paychecks.
• Determine your income requirements and how soon you expect to break even.

Research the Franchise
• Attend a “Discovery Day” at the company HQ.
• Know its history, degree of success and reputation.
• Understand the contractual obligations of both seller and buyer.
• Ask whether any significant copyrights may expire soon.
• Analyze territorial rights or limitations, what you can and cannot sell and other exclusivity clauses.
• Find out how many franchises have been closed or repurchased by the franchiser.

Talk Turkey
• Visit several franchise operators.
• Ask if the franchiser has delivered as promised.
• Ask if the franchisee would do it again.
• Ask if advertising and promotional campaigns have been productive.

Watch Your Back
• Something’s up if the franchiser is slow to disclose all necessary documents.
• Be aware of high-pressure tactics – remember, it’s your money on the table, not theirs.
• Startup fees should be clear and convincing.
• Use your advisory team to help translate the fine print.
• Don’t sign before it’s time.

Great Expectations – Not
• Franchisers are not required to include an earnings claim in the UFOC. If they do, be skeptical anyway, grab the scalpel and dissect the figures. Other franchisees will help gauge revenue, too.

What’s the End Game?
• Can the franchiser terminate or refuse to renew a contract?
• Can you sell or transfer ownership of your business?

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Web Exclusive Resources

corp.ca.gov
• The California Dept. of Corporations regulates the offer and sale of franchises in California – to file a complaint or ask questions, call 866-ASK CORP.

ftc.gov
• The Federal Trade Commission regulates franchises on a national level.

franchising.com
• An online listing of franchising opportunities, plus links to news and online resources for additional information.

franchiseworks.com
• Online franchise listings by category, from accounting and tax services to wedding and event planning; offers advice, articles and resources for potential franchisees.

franchisee.org
• Established in 1993, the American Franchise Association provides educational and business resources, legal advocacy and networking opportunities for franchisees.

startupjournal.com
• In addition to its list of franchises-for-sale, the Wall Street Journal’s Center for Entrepreneurs provides columns, blogs, financing and business information, how-to’s, and an “ideas” section designed to help get your upstart juices flowing.

entrepreneur.com
• Includes franchising opportunities, tips to grow your business, an encyclopedia of terms, e-newsletters, and even financial calculators to help you assess your investment.

blackenterprise.com
• Franchise Solutions Inc. allows visitors to search through franchise opportunities by industry, category, or capitol investment; also features online tutorials, success stories and a financing directory.

franchise.com
• Franchise listings, directories for lenders, attorneys and executives, plus tools such as FAQs, net worth and capital calculators, news and blogs, and a glossary of terms.

franchise.org
• Founded in 1960, the International Franchise Association offers a variety of information for potential franchisees and current franchise owners alike; the site also includes franchising news and events, plus educational resources and government relations information.

aafd.org
• Check out the Fair Franchising Standards, the American Association of Franchisees & Dealers’ “comprehensive guidelines for balanced franchise relationships”; additionally, the website provides tips on buying a franchise, links to accredited franchisers, and advice on markets and financing, legal issues and current legislation.

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