Franchise Today

John Smolen, Senior Vice President of Global Distribution Sales at Atmosphere TV, joins us today to discuss the streaming platform’s benefits for franchises and businesses, like restaurants, bars, grills, taverns, and gyms.Atmosphere TV is known for replacing daytime TV in public spaces with engaging short-form content across 40+ channels and is recognized for its rapid growth and impact on customer engagement and incresed unit-level sales. 

Smolen, with a background transitioning from psychology to sales, outlines Atmosphere’s ad-supported revenue model that provides free, family-friendly programming, along with marketing tools enabling franchisors and franchisees, to manage content across various locations. The service’s ability to target specific audiences based on venue type enhances its value as an advertising platform, offering flexibility and affordability with no minimum investment constraints.

The episode also touches upon the broader digital landscape, noting the scrutiny of foreign-owned social media platforms like TikTok by bi-partisan entities, underlining the importance of oversight in the digital content sphere.

In September, 2019, Ace Hardware successfully expanded its business by acquiring Handyman Matters and rebranding it as Ace Handyman Services, with a refreshed business strategy focused on expanding home improvement services. Under the leadership of Andy Bell, co-founder of Handyman Matters and CEO of the rebranded entity, Ace Handyman Services has capitalized on the surge in home services since the pandemic and increased sales, in large part, due to the rebranding and commitment by Ace, of new resources.  Since then, the company has experienced significant growth in franchise territories too and is ambitiously aiming to extend its reach to 1,000 territories over the next few years, while prioritizing responsible and sustainable expansion through well-considered franchising practices. Colette Bell, co-founder of Handyman Matters and Vice President of Franchising for Ace Handyman Services Franchising, is here to tell us all about it.

John Francis, a franchise expert, advisor, and speaker with over 30 years of experience, shares his deep understanding of the franchising world. Born into a franchise family, he was a franchisee and franchisor multiple times. His parents pioneered the franchise model in the hair salon industry, creating a global empire. John's diverse background includes working in various franchise brands, consulting, and serving on boards. He talks about his journey in franchising, from working in his family’s business to consulting and advising franchise brands. John also discusses his involvement with Zor Forum, a mastermind group for franchisors, and reflects on the industry's future, emphasizing that franchising remains a successful model when executed properly. Additionally, he highlights his personal life, celebrating 25 years of marriage and his two daughters, and introduces Fathers Eve, a holiday he created for dads. John is open for contact and collaboration, offering his wealth of experience to help others in the franchising field.

 

 

 

John Francis, a franchise expert, advisor, and speaker with over 30 years of experience, shares his deep understanding of the franchising world. Born into a franchise family, he was a franchisee and franchisor multiple times. His parents pioneered the franchise model in the hair salon industry, creating a global empire. John's diverse background includes working in various franchise brands, consulting, and serving on boards. He talks about his journey in franchising, from working in his family’s business to consulting and advising franchise brands. John also discusses his involvement with Zor Forum, a mastermind group for franchisors, and reflects on the industry's future, emphasizing that franchising remains a successful model when executed properly.

This week Alia Alston, founder of Icebox Cryotherapy Studios, shares her personal journey and business insights on Franchise Today. A car accident and childbirth complications led her to discover the pain-relieving benefits of cryotherapy, prompting her to open the first retail cryotherapy studio in the United States. Despite her lack of experience in owning a retail store, her background in product development, retail marketing, and real estate, coupled with her entrepreneurial spirit, drove her to pursue this venture.

Fast forward the tape and her wildly successful first studio in ATL, has beocme the first of 20, as she is successfully franchising the brand and changing lives for both clients and franchisees, as the business successfully scales.  .  .   .

Initially targeting professional athletes in Atlanta, Icebox quickly attracted a broader clientele seeking natural anti-inflammatory solutions and chronic pain relief. Alia’s vision for Icebox was to create a scalable and simple model for services that could be easily replicated by franchisees, inspired by the success of brands like SoulCycle. Despite initial hesitations, she decided to franchise Icebox, which proved successful even through the challenges posed by the 2020 pandemic, thanks to the dedication of franchisees and a focus on strategic growth.

In running the franchise, Alia emphasizes the importance of passionate franchisees who are also disciplined, meticulous in client experiences, and involved in daily operations. The discussion extends to the critical role of the right team management and the excitement surrounding the partnership with Impact Brands for scaling the business. Finally, Alia' reflects on her drive to balance work and family life, aspiring to be a role model for working moms and leave a legacy for her children.

Last week in Phoenix, I invited attendees from various facets of the franchising community to share the impact IFA has had on their careers. Collectively, I am calling this the Many Voices of IFA and presenting it as this week's episode of Franchise Today.  Seasoned industry professionals like Frank Fiume, Nick Friedman, Rocco Fiorentino, and others spoke to the value of the relationships, mentorship, community, and access that IFA facilitates within the industry. Key figures such as Omar Soliman, John Francis, Terry Braun, Dave McDougall, Scott Perry, and Ron Bender emphasized the organization’s role in providing educational resources, protecting the franchise model, and supporting “smart growth,” including the encouragement of veteran participation through the IFA’s Vet Fran program.

The significance of the IFA was further underscored by contributions from Ralph Yarusso, who expressed his passion for giving back after 20 years of involvement, and Josh Wall, who noted the importance of learning from industry leaders’ mistakes. Mike Kelly valued the networking opportunities and client connections made possible by the IFA, while newcomer Michael Friedman, son of yours truly, brings his decade of software sales experience with him, into the FRM business.

Enthusiasm for the IFA was also echoed by Ron Feldman, Aslam Khan, David Kurkjian and Marty Welch, who collectively praised the association for its role in fostering knowledge exchange, support, and insight-sharing among franchising professionals. The IFA was celebrated as a platform that not only enables connections with seasoned experts but also welcomes voices from emerging franchise businesses.

Doug Willmarth shares his career journey from being a navy pilot to finding his passion in marketing and the restaurant business, leading to various roles including chief marketing officer at Wingstop and President at Mooyah Burgers, Fries, and Shakes. With experience in brand management at companies like Kraft Foods and PepsiCo, Willmarth transitioned into franchising, gaining a deeper appreciation for its impact while at Wingstop. He later worked with Rave Cinemas and Pizza Hut before joining Mooyah, where he learned the intricacies of running a smaller company, preparing him for executive leadership.

At Mooyah, Willmarth focuses on high-quality food, particularly burgers, fries, and shakes, adopting a specialization strategy akin to successful brands like Chipotle and Chick Fil A. He emphasizes the use of certified Angus beef and the importance of streamlined operations for consistent service across franchises. Despite challenges during the COVID pandemic, Mooyah thrived due to a robust digital and delivery infrastructure, without losing any franchisees, and even fostered stronger collaboration between franchisor and franchisees.

Wilmarth discusses the success of franchisees from other brands like Freddy’s and McDonald’s, noting the trend towards multi-unit operations and the goal to open 16 to 18 new locations annually, eventually reaching 25 to 30. He acknowledges current labor market challenges post-COVID, such as cost and labor inflation, underscoring the need for flexibility and support for franchisees and the importance of employee development in the hospitality industry.

As president of Mooyah, Willmarth encourages those interested in franchising opportunities to reach out for more information and expresses eagerness to share the brand’s delicious offerings over lunch, highlighting the rewarding potential of making a difference in communities through franchising.

This week on Franchise Today, Matt Haller, President and CEO of the International Franchise Association (IFA). offered a deep dive into various critical topics, notably the eagerly anticipated IFA Convention set to take place in less than two weeks in Phoenix. Haller shared insights into the convention, which aims to "franchise smarter" by fostering responsible business practices and enhancing the franchising community, attracting nearly 4,000 participants, including the celebrated Coach Prime.

Haller, emphasized the industry's collaborative spirit and the vital role of sharing experiences to forge long-term, mutually beneficial relationships. He highlighted the IFA's role in setting realistic expectations, promoting trust, particularly among suppliers seeking immediate returns, and navigating the evolving franchising landscape. This includes adapting to the influx of external capital and its effects on operations, exemplified by successful franchises like Neighborly and School of Rock.

The conversation also touched on significant challenges facing the franchise industry, such as joint employer issues and the Federal Trade Commission's (FTC) review of franchising regulations. Haller urged for active participation in the Franchise Action Network to address these concerns. The upcoming convention will feature Sen.Joe Manchin as a keynote speaker, recognizing his support for small businesses and bipartisan legislative efforts. Additionally, the event will celebrate various speakers and award winners, and offer over 70 breakout sessions covering a wide range of business topics, including multiunit franchising and team building.

Heather Anderson shares her journey from working at a digital marketing agency to becoming Vice President of Marketing and Operations at The Little Gym, and then transitioning to a VP role at Eulerity, a supplier of efficient marketing platforms. She underscores the importance of adaptability in franchising and marketing, especially during the pandemic, and stresses the need for brand consistency and creating a passionate customer base. Heather highlights the blurred lines between marketing and IT, the necessity of data management, and privacy concerns.

Discussing her move to Eulerity, Heather explains how the company’s AI-powered digital marketing platform helps businesses manage their digital presence and streamline operations, improving agility and reducing the need for outsourcing. Eulerity enhances strategic focus while optimizing media spend through machine learning, benefiting brands with multiple locations.

The rapid evolution of technology and consumer behavior, the importance of AI in marketing, and the challenges of brand clustering by private equity are also addressed. Heather talks too, about the consolidation of family-run businesses and the need to maintain their original culture and vision after acquisition. She emphasizes listening to franchisees and merging different business cultures. Finally, Heather touches on her involvement with the International Franchise Association and the Women’s Franchise Network, and the origin of Eulerity’s name, inspired by mathematician Leonard Euler, reflecting the company’s goal to simplify complexity. The conversation ends with a nod to future discussions with Heather to further explore her insights.

Meet Dave Mortensen, the visionary co-founder and president of Self Esteem Brands, who along with partner and co-founder Chuck Runyon, have taken the franchise world by storm with the renowned Anytime Fitness brand, now over 5,500 locations strong, across 41 countries!

From being inspired by the structure of companies like Pizza Hut and McDonalds, to creating a global fitness phenomenon, Dave’s story is a testament to the power of passion and perseverance. He and Chuck transformed a college dropout story into a consulting firm, and then into a franchising legacy!

Even in the face of adversity, like the sudden pivot during the COVID-19, Anytime Fitness demonstrated unmatched resilience, transitioning from celebrating major achievements to navigating a world in lockdown - and emerged stronger! 

Commitment runs deep, literally under the skin, with customers inking their allegiance at the brand’s very own tattoo parlor.  With a diverse portfolio that includes Waxing the City, Basecamp Fitness, and The Bar Method, the focus remains on global expansion, now with more locations opening internationally than domestically.   Pioneering the digital transformation of fitness, Anytime Fitness integrates cutting-edge Apple Fitness Plus content into their app, offering digital gym access and solidifying their bond with consumers.

Dave celebrates the spirit of franchising and service-oriented brands, emphasizing the importance of listening to franchisees. With AI-driven personalization, the brand aims to revolutionize member motivation and health improvement.

As for community impact, Dave is actively educating policymakers on the value of franchising and supporting both franchisees and franchisors. In a heartfelt conclusion, Dave encourages following your passions and is generously offering personal insights to those interested in the franchise industry.

As we enter 2024 franchising as a business model is navigating a complex landscape of challenges, including new legislation that affects their operations and various factors that influence business decision-making. The labor market has experienced significant shifts as the result of the pandemic, with many companies turning to technological automation to adapt, especially in the restaurant space.  This trend towards technology-driven operations is part of a broader movement involving brand consolidation and evolving franchising strategies.

Amidst all of these developments, my conversation today with iconic franchise finance expert and IFA Government Affairs Advocate, Ron Feldman highlights the ongoing issues faced by franchising, but concludes with the expectation that franchisor valuations will remain stable, nonetheless.  .

 

Ron Feldman, this week on Franchise Today.