FBR Emerging Franchises 2015
A look at the top brands that have been franchising since 2010 or later. Ratings are based on franchisee satisfaction research. Only the brands with happy franchisees are included!
A look at the top brands that have been franchising since 2010 or later. Ratings are based on franchisee satisfaction research. Only the brands with happy franchisees are included!
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SPECIAL REPORT: <strong>Emerging</strong> <strong>Franchises</strong><br />
goals, visit www.fbr50.com/free-franchiseconsultation/.<br />
“I recommend that anyone considering<br />
buying a franchise work with a franchise<br />
broker”, says John Suazo, who co-owns a<br />
The Exercise Coach franchise in Colorado<br />
Springs, CO with his wife. “Ours spent a tremendous<br />
amount of time working with my<br />
wife and me in order to learn what we were<br />
interested in, how much we could afford,<br />
where we wanted to live and much more.<br />
Eventually she presented us with five options<br />
and helped us evaluate the pros and cons of<br />
each. We narrowed our choices down to three<br />
with the intent of going to two discovery<br />
days. Our broker worked with us through our<br />
interactions with franchisors and franchisees<br />
during the entire process. If it wasn’t for her,<br />
we would not be in the system we are in today.”<br />
Suazo and his wife signed a multi-unit The<br />
Exercise Coach franchise agreement to open<br />
three units within 14-month intervals. They<br />
opened the first one in March of <strong>2015</strong>. Their<br />
goal is to have 100 clients by April 2016 and<br />
they are above pace to achieve this metric.<br />
Franchise expos are another way some<br />
potential franchise investors find their perfect<br />
franchise match.<br />
“We went to a franchise expo in New York<br />
City and happened upon two companies in<br />
the paint and sip industry,” says Pinot’s Palette<br />
franchisee, Reed Alewel. “We did discovery<br />
day at each and chose Pinot’s Palette due to the<br />
simplicity of the business plan and its robust<br />
proprietary technology that helps us interact<br />
with our customers and manage our business.”<br />
HOW PROFITABLE WILL YOUR<br />
FRANCHISE BE?<br />
Financial Performance Representations, which<br />
are outlined in Item 19 in the FDD, may give<br />
you an idea of how much you will make as<br />
a franchisee. It is, however, important to keep<br />
in mind that many variables come into play,<br />
such as your business experience, how much<br />
time and energy you commit to being successful,<br />
market area, location, franchisor support<br />
and more. Our Franchise Buyer’s Toolkit<br />
includes the 3-hour How Much Money Can<br />
You Make? online course, available at www.<br />
FranchiseBusinessReview.com/Toolkit, is a<br />
great tool when it comes to determining how<br />
profitable you might be.<br />
“Our previous sign and lighting maintenance<br />
business was a small segment of our<br />
business. It is seven times larger since we<br />
became a YESCO franchisee,” says Deters.<br />
“Through its unique lead generation program<br />
and relationships with national chains, YESCO<br />
generates business for us.” Deters believes that<br />
the price advantages YESCO’s purchasing<br />
program has provided have contributed<br />
greatly to his profits and cover the 6% royalty<br />
fees he pays. He states that becoming a YESCO<br />
franchisee has also made his revenue, which<br />
previously was impacted by economic and<br />
seasonal changes, more predictable since each<br />
signage and lighting component has a predictable<br />
life. In addition, unlike custom sign<br />
fabrication clientele, Deters says he receives<br />
income from his YESCO clientele every few<br />
months. “Whenever they need interior or<br />
perimeter lights fixed, we get a call.”<br />
Mosquito Joe franchisee Clark also says<br />
that becoming a franchisee has helped him<br />
successfully contend with the seasonal aspect<br />
of his pre-existing lawn care business. “My<br />
first year goal was to make forty thousand in<br />
sales, instead we did one hundred thousand,”<br />
says Clark. “We anticipate the business will<br />
make a 15% profit next year and be making a<br />
25% profit by the fourth or fifth year.”<br />
How involved your franchisor is in your<br />
success will have a significant impact on your<br />
financial performance and profitability.<br />
“Performance monitoring is a staple of what<br />
we do. We have daily performance monitoring<br />
and quarterly financial reviews for all clubs.<br />
Surprisingly, some of the largest franchisors<br />
in our space don’t even pull their franchisees’<br />
P&Ls (Profit and Loss income statements)<br />
which means they have NO clear visibility on<br />
the profitability and true performance of their<br />
clubs and no means to have a meaningful<br />
review with their franchisees,” says Midgley.<br />
“We have in-person visits from a member of<br />
our team to all locations annually as well as a<br />
fully integrated secret shopper program. We<br />
are constantly monitoring the membership<br />
blends of all of our clubs to be sure that their<br />
average dues are trending properly. We also<br />
monitor all social media monthly to help the<br />
franchisees manage their overall customer<br />
satisfaction.”<br />
Continued on page 8.<br />
How Satisfied are<br />
<strong>Emerging</strong> Sector Franchisees?<br />
“I enjoy operating this business”<br />
91 %<br />
Agree or Strongly Agree<br />
90% Agree or Strongly Agree with<br />
“I enjoy being part of this organization”<br />
“I respect my franchisor”<br />
89 %<br />
Agree or Strongly Agree<br />
“I believe my franchisor acts with a<br />
high level of honesty and integrity”<br />
86 %<br />
Agree or<br />
Strongly Agree<br />
Overall Satisfaction with Franchise:<br />
replied Good, Very Good,<br />
or Excellent<br />
84%<br />
84 %<br />
would “do it again”<br />
knowing what they know today.<br />
Overall Satisfaction with Franchisor<br />
and the opportunity provided<br />
by this franchise system:<br />
replied Good, Very Good,<br />
or Excellent<br />
87%<br />
88 %<br />
would recommend<br />
their franchise brand to others.<br />
For more information on this report, visit: www.FranchiseBusinessReview.com | 5