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New and inexperienced franchisees often feel lost or unsure whenthey're just starting out. To ease the anxiety, King ofPrussia, Pennsylvania-based Maaco Auto Painting and Bodyworks hascreated an annual five-day convention where new franchisees pair upwith veteran franchise owners to network and share ideas.
Lisa and Jeff Brennen, Maaco franchisees in Richmond, BritishColumbia, first met their "mentors" at lastNovember's convention. Charlesan Neugebauer and Jan Marshallwere very helpful, offering advice on subjects from financing toadvertising, says Jeff. "Mentors have been franchisees for aminimum of five years," he explains. "They have a lot ofexperience they can pass on to someone who's just startingout."
Since its inception four years ago, the MaacoMentor program hasbecome a vital element in integrating new owners into the Maacosystem. "The new and established owners often stay in contactbeyond the convention," says Bill Silverman of Maaco.
Jeff Brennen, who says the Mentor program goes far and beyondwhat he expected, hopes someday he, too, can become a mentor andoffer insight to new franchisees. "[The mentoringrelationship] gives you a sense of belonging," he says."You feel that you're now part of the Maacofamily."
Shining Example
Owning a franchise means working within a system-but sometimes afranchisee has to go beyond the expected and take a chance on a newidea. That's the lesson franchisee Phil Grossfield learned whena man who lived in a shelter for homeless people asked him for ajob.
Grossfield, who owns two Big City Bagels franchises inMinneapolis and St. Paul, was leery at first, but after checkingthe man's references, decided to give him a chance. He'snever regretted that decision. Far from it, in fact: Grossfield hassince hired four employees from the Salvation Army's HarborLight Center for homeless adults. One of those four, John Stokke,is being considered for an assistant manager position.
"I've had a real difficult time finding people who wantto work and who show enthusiasm for the job," Grossfield says."To find somebody who's down and out, who's lookingfor a job-these are people who really want to work, and it shows intheir performance and their loyalty."
Loyalty works both ways for Grossfield: He plans to continuehiring Harbor Lights residents. "It's veryrewarding," he says. "It's good for us, and it'sgood for them."
On The Rise
Franchising is fueling growth in the staffing industry-at leastaccording to a recent survey by Los Altos, California-basedStaffing Industry Analysts Inc. The results, which appeared in thecompany's Staffing Industry Report, revealed that the number offranchised and licensed offices in the staffing industry increasedby 11.4 percent last year.
"This year, the office count was up significantly, whichmeans franchisors were adding at a faster rate [than lastyear]," says Theresa Daly, an editor for the report."It's a reflection of the overall health of the staffingindustry."
Conducted since 1992, the annual survey monitors growth andfranchising trends of staffing firms across the United States andCanada.
"Most franchise directors don't expect anything to slowdown," says Daly. "The industry is growing in alldirections."
'Net Sales
Franchisees and business opportunity owners looking to selltheir existing units have a new way to spread the word to potentialbuyers. Franchise Solutions Information Services, a franchiseconsulting firm in Portsmouth, New Hampshire, has created theNational Franchise and Business Re-Sale Network, a monthly for-salelisting that's posted on two Internet sites and circulated onpaper to about 600 readers.
Listing your business costs $225 for the first three months. Andyou won't be bombarded with calls: Franchise Solutions protectsthe identities of the businesses, so you have control of contactingpotential buyers. "We get pre-qualifying information [aboutbuyers] and relay it to the [seller]," says Calvin HaskellJr., president and CEO of Franchise Solutions. "It's thenup to the franchisee to make contact."
The network, which started in January, currently has about 50business listings; Haskell expects this number to double in thecoming months.
And with thousands of franchise locations and businessopportunities going on the market every year in the United States,the listing has the potential to grow even further.
For more information, visit one of Franchise Solutions' homepages at www.bluefin.net/~fransale.
Lending A Hand
Socially and economically disadvantaged individuals in Marylandwho want to own a franchise but lack the necessary funds shouldcontact the Maryland Small Business Development Financing Authority(MSBDFA). Since 1986, the government agency has provided about $2.8million to help underprivileged people become franchisees throughits Equity Participation Investment Program FranchisingComponent.
For a $50 fee, prospective loan recipients receive anapplication and suggestions on how to formulate a successfulbusiness plan. Once the application is completed and the businessplan developed, both are sent, with a $100 application fee, to theMSBDFA. The fees are nonrefundable, and the entire process takesabout two months.
"We're looking for individuals who have strongmanagement capabilities, financial management and marketingstrengths, and general 'relating to people' skills,"says program manager Randy Croxton.
Those accepted to the loan program receive 45 percent or less ofthe total financing needed, to a maximum of $100,000.
For an application, call Croxton at (410) 333-4270.
Duke Of Oil
These days, a dollar usually won't get you very far. But ifyou're a Valvoline Instant Oil Change (VIOC) franchisee, forjust a dollar per year you can lease up to $20,000 worth of lubeequipment, including everything from compressors and oil guns totanks and drain pans.
Although such leases are not uncommon in the industry, what setsValvoline apart is the method of repayment. Some companies offerlow-priced leases, but then increase the prices they chargefranchisees for oil and lubricants. With Valvoline leases, saysJeff Malicote, manager of franchise sales, "We know we'regoing to be repaid through royalties and through a 15-year supplyagreement with the [franchisee]," which is part of the leasingagreement.
Offered since VIOC began franchising in 1988, the lease optionhas garnered a positive response from franchisees-more than 95percent currently lease equipment. Says Malicote, "Anyonequalified to become a franchisee is qualified to fit into thisprogram."
Small Fries
Holly Celeste Fisk
When Julian S. Garza realized his employees were having problemsjuggling work and child care, he did what any boss would do: Hebought a day-care center. Garza subsidizes the costs of child careat the center for parents who work at any of his fourMcDonald's restaurants in the Albuquerque, New Mexico, area."Many parents would like to work but for the fact that theyhave little ones at home," says Garza. His employees pay about89 cents an hour, compared with more than $2 for nonemployees. Sofar, eight children of McDonald's employees are cared forthere; Garza expects that number to increase as he incorporates thechild-care subsidy into his recruitment efforts.
