Tag: Entrepreneur

WITH 15 NEW STORES, ACAI EXPRESS CONTINUES IT’S IMPRESSIVE GROWTH IN THE HEALTHY QUICK SERVICE INDUSTRY

Posted on by Franchise Strategist

We believe this expansion in uncertain financial times is a testimony to the brand loyalty of our customers, our support efforts with our franchisees, and the result of consumers looking for more accessible and quick healthy food options.

WITH 15 NEW STORES, ACAI EXPRESS CONTINUES IT’S IMPRESSIVE GROWTH IN THE HEALTHY QUICK SERVICE INDUSTRY
BY ANA REINA

Growing from a single trailer to a nation-wide movement, Acai Express continues it’s dynamic expansion in the middle of a pandemic that has decimated numerous small businesses.

There is virtually no sector of the economy that has gone unaffected by the repercussions of the COVID-19 pandemic that has swept the world. Many businesses have been forced to reevaluate their business plans and offerings, while unfortunately others have been forced to close altogether. At the beginning of the pandemic, we didn’t know how these changes would affect our growing business, but we are happy to report we are continuing to expand and thrive amid these uncertain times.

As we’ve previously covered, uncertain times make people gravitate towards craving comforting foods, and acai bowls fall under that category. We are opening 15 new locations in Puerto Rico, and continuing our US expansion in: Miami, North Carolina, South Carolina.

We believe this expansion in uncertain financial times is a testimony to the brand loyalty of our customers, our support efforts with our franchisees, and the result of consumers looking for more accessible and quick healthy food options.

More Stores Mean More Healthy Food Options
As a result of this pandemic, consumers have been seeking out healthy food options to sustain better health and immune systems during a time when it’s the most crucial. Shelter in place and lockdown measures have allowed people to slow down and make more conscious lifestyle and food choices.

Communities are looking for on-the-go food options that can sustain these lifestyle changes.

With some franchise owners opening in the midst of this pandemic, dedication and grit have been crucial in the store launches. New owners have taken full advantage of the marketing tools and material, and the support given by our headquarter team.

Growth With No Signs Of Stopping
The organic quick food service industry keeps expanding and is poised to surpass a 70 billion valuation by 2025 at this rate. There’s never been a better time to open an Acai Express franchise with a brand that is at the forefront of this industry.

When you open with Acai Express you’ll enjoy the benefits:

* A simple and proven business model that anyone can work with
* Delivery partnerships with UberEats, GrubHub, and DoorDash
* An established brand following with high engagement across all social media channels

Acai Express is one of the fastest growing concepts in the industry, and we can’t wait to keep spreading the benefits of the healthy living lifestyle across the country.
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For Franchise Information: [email protected] (917) 991 2465
“Offer By Prospectus Only”

TWO REASONS YOU WILL NOT BE GRANTED A FRANCHISE LICENSE

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When I was vetting my smoothie business, my dad said, “who is going to buy frozen drinks in the winter in New York? The funny thing is, consistently, we sold more in the winter than we did in the summer.

TWO REASONS YOU WILL NOT BE GRANTED A FRANCHISE LICENSE

By TOM SCARDA, CFE
🔑Education 🔑 insight 🔑 inspiration – I help people escape the corporate rat race and control their own destiny through business ownership. 516-322-1435

Thinking that talking to a franchise company is like a timeshare presentation.

If you invest in a franchise, you are buying a business, but they are not selling one. Speaking with the franchisor and performing due diligence is like dating. If you hope to be sold something, you’ll be disappointed, or you’ll waste some time, and your right franchise will break up with you because of your awkward or bad behavior.

Top franchise systems view the vetting procedure as a mutual dating exercise. Both parties judge each other before formalizing a long-term relationship. The dating rules are pretty much as they’ve always been:

Care to learn about each other while respecting each other’s boundaries and timelines.
Ask many questions and observe behaviors to learn each other’s values and identify potential opportunities and deal breakers.
At any time, you or the franchisor can decide that another date isn’t the best idea. If one of you says “No”, there are no hard feelings. After all, it takes both to make the relationship great.
As in dating, the courtship could end with a final “No”, or if at the altar one of you says, “I still want to think about it.” If you still have to think about it while one of you is at the altar, then it means something’s wildly amiss.
However, as in dating, the courtship could also result in a wonderful partnership that creates for you a comfortable, prosperous, and peaceful future.
Lastly, one doesn’t marry while planning for divorce.
Consensual validation or third party opinions

Family, friends, lawyers, accountants, financial planners, a friend in the industry, someone you respect because they built a business. Why would a friend and/or someone you know who hasn’t performed any due diligence tell you that the business you’re considering is a good idea? Deep inside, they know there are too many variables to predict whether you’ll be successful or not. For the most part, people will share all the negatives about a business or an industry, and in the back of their minds, they feel that they gave you “safe, solid advice.” Besides, if you change nothing and instead do what you’ve always done, no one loses… right?

When I was vetting my smoothie business, my dad said, “who is going to buy frozen drinks in the winter in New York? The funny thing is, consistently, we sold more in the winter than we did in the summer. That is because in the winter we had less competition in an indoor venue. We had to compete with ice cream, lemonade, beer, and other summer treats during the warm months.

You are doing the research. I suggest forming friendly relationships with the people you talk with at the franchise company. If you buy, they will be the ones helping you be successful. A great franchise company will never try to sell you a franchise. That is against the philosophy of the best franchisors.
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About Tom Scarda:Tom is now a nationally recognized small business and Certified Franchise Expert (CFE), motivator and dynamic speaker. Tom has authored three books: Franchise Savvy, The Road to Franchise Freedom and The Magic of Choosing Uncertainty: How to Manage Change, Embrace Fear and Live a Fulfilled Life.

30 years ago, searching for his inner drive, Tom left college and submerged himself in the motorcycle underworld in lower Manhattan. This made his mother worry. It was the first time Tom chose uncertainty over the status quo.

After four years of life in the outlaw motorcycle subculture in NYC, Tom got a haircut, took a shower and landed a respectable job in the New York Subway system. After more than 13 years in the subway Tom became frustrated with the bureaucracy and politics. So he quit his job and left his pension behind to pursue his dreams of business ownership. This also made his mother worry.

In 2000, he purchased a smoothie franchise, which he built into three units and sold five years later for a considerable profit. He was the #1 franchisee of the year in Maui Wowi Smoothies in 2002. He purchased a second franchise in 2006 called Super Suppers and failed miserably in that franchise concept. The lessons he learned from failure is what makes him such an expert. Tom has owned and operated both franchised and non-franchised businesses and has years of knowledge and wisdom to share with you.

WHAT’S YOUR SUPERPOWER?

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A superpower should be super. It should be something that very few other people can match. For example, a lot of people can play a guitar pretty well. But Eddie Van Halen can coax sounds from the instrument like few others.

WHAT’S YOUR SUPERPOWER?
By Jeff Morrill

Superman can fly, Wonder Woman can deflect bullets, Spider-Man can sense danger. Real people can’t leap tall buildings in a single bound, but we can develop special abilities that form the backbone of our success over a lifetime.

It usually takes a few superpowers to make a superhero, because even a monumental talent will not, by itself, guarantee success. For example, towering athletic ability won’t get you very far unless you also have the long-term discipline to sharpen your skills and match your competition. I use the term “superpower skill set” to describe a cluster of a few exceptional strengths that add up to a whole greater than the sum of its parts. Imagine a person with unusually high levels of manual dexterity, stamina, and intellect—those qualities would combine to make very good surgeon, or a pilot. The set of faculties work together to create quite a competency.

When identifying your superpowers, keep these things in mind:

There’s a difference between the things you want to be good at and things you actually are good at. As a boy I wanted to be a great baseball player. I persisted through my little league years on modest talent, hoping that that my genetics would eventually deliver me the physique necessary for real success (you know—big butt, powerful upper body). It was not to be. I made it to six feet but never to even 140 pounds. I permanently abandoned my efforts on the diamond after I failed to make the Blacksburg High School junior varsity team.

A superpower should be super. It should be something that very few other people can match. For example, a lot of people can play a guitar pretty well. But Eddie Van Halen can coax sounds from the instrument like few others. You probably do a lot of things well. But what do you do really well? What’s easy for you but hard for others? That’s where you can really make things happen.

In my case, I have always been freakishly organized, I have a feral risk tolerance, and I can remain intensely focused on goals for years on end. This skill set is ideal for entrepreneurship. I have depended upon those qualities my whole life, and they have helped me compensate for many deficiencies in other areas.

Be respectful of your superpowers. Use them for good, to make the world better for you and everybody else. Don’t waste them, because they don’t necessarily last forever. There might come a time in your life when you regret screwing around with your prime years instead of discovering the frontier of your potential.

What are the handful of special abilities that comprise your superpower skill set? Have you developed each to its full potential? Are you making the highest and best use of your overall capability?

About the Author:
Jeff Morrill co-founded Planet Subaru, “your undealership,” in 1998, and built it into one of the most successful privately-held car dealerships in the United States. He later started other businesses in automotive retail, real estate, telecommunications, and insurance that generate over $100,000,000 in annual revenue. His achievements in building profitable and ethical companies have been featured in a variety of national media including USA Today, Entrepreneur Magazine, Automotive News, The Boston Globe, and others.

Jeff is a strict vegetarian, even though people tell him it’s a big missed steak to eat that way. However, he does like his puns well done. Jeff lives with his wife, Julie, outside Charlottesville, Virginia, on a mountain he refers to as “The Morrill High Ground.”

TOP 15 DIFFERENCES BETWEEN A FRANCHISE AND GOING OUT ON YOUR OWN

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As you are new to the world of franchising, you might find it difficult to narrow down the franchise options. This is where a franchise consultant can help you.

TOP 15 DIFFERENCES BETWEEN A FRANCHISE AND GOING OUT ON YOUR OWN
By Tom Scarda, Certified Franchise Executive – Founder The Franchise Academy

To start a business, you have two options – a) Franchising or b) Starting a new business on your own.
Franchising refers to becoming a part of an established company by getting a license to use their company name, business model, marketing tools, etc., from the franchisor.

On the other hand, if you start a new business, you have to develop a product or service, business plans, marketing strategies, etc., by yourself.

There is a myth that franchising is more expensive than starting from scratch because of all the fees. However, in the long run, it may prove to be less expensive, especially if you fail.

Are you wondering – which one is the best? Are franchise consultants correct in saying – Franchising is better than starting a new business?

Read along; our list of top 15 differences between franchising and traditional business will answer all these and much more.
Sr. No Details Franchising Traditional Business
1 Business Idea In franchising, you leverage an already existing idea, no need to recreate the wheel. In a traditional business, you have to start from scratch and develop an idea by trial and error.

2 Workflow and processes Tried and tested workflows and operations are already established. You have to create all the processes and workflows on your own.

3 Support You will be given total assistance from the company/franchisor. There will be no external help in a traditional business until your business becomes successful.

4 Marketing In franchising, you will get better reach as the franchisor will provide you with effective marketing designs and collateral. You will know exactly who your customer is and where they live. You have to design several marketing campaigns and apply the most effective campaign. This will drain your bank account.

5 Required time With franchising, you can launch your business operations immediately in some cases. Initially, you will require at least 12 – 24 months or more to set up a business. You have to try and experiment with ideas and marketing campaigns while managing finances, logistics, and more.

6 Risk There is less risk in franchising because the business model is successfully running in multiple locations and you’re just plugging in. Traditional businesses come with higher risks as you are experimenting with new ideas that may or may not work upon launch.

7 Upgrades and development The company will provide you regular updates to scale your franchise. Moreover, the company will recommend new upgrades and innovations that have passed their R&D phase. You have to update your technology and workflows to suit the ever-changing consumer demand. No other company will push updates for your business.

8 Business plans, marketing guidance, training, etc. You will be guided by the company experts in all aspects of the business from marketing to recruitment, everything A to Z. In a traditional business model, you have to chalk out plans, discover new marketing campaigns while also training yourself. In simple words, you have to do everything by yourself.

9 Investment required As the business model is well-established, you get a clear picture of your initial and recurring expenses before you buy the franchise. Here, everything is based on trial and error; thus, you never get a clear estimate of your business expenses. As a result, you spend a much higher amount in setting up a new business.

10 Expert advice, feedback, and testimonials You will receive feedback, testimonials, and expert advice in a franchising model as there already exists a community of franchises. Getting expert opinions is a distant dream in a traditional business model. YouTube videos, blogs, and books will not help much as they are not directly related to your new business idea.
If you wish to get one-on-one advice from an expert, you have to pay out extra bucks.

11 Brand Identity Your franchisor has an established brand with recognized processes, trademarks, Intellectual property, and Google awareness. As a franchisee, you will enjoy all the benefits of an established brand. Starting a new business will take a few years to establish yourself as a brand with trademarks, confirmed processes, and IP and get on Google’s first page search.

12 Chances of success In franchising, you have proven business processes, marketing tools, and well-researched business upgrades. Also, if you face any challenges, you have a community of franchises to take help from.
All of these factors increase the chances of success by manifolds. You will face unforeseen challenges at every step of your business. Reinventing the business wheel with no external support makes it difficult to grow a business. Now you know why do 9 out of 10 startup businesses fail in the first couple of years.

13 Return on investment As you have a clear idea of expenses and a tried-and-tested business model in your hands, the return on investment for a franchisee is much higher. In a startup business, you will hardly make profits in the initial years. Also, if your business does well, you will have to re-invest a sum of your profits to further grow your business. As a result, your ROI remains negligible in the first few years of your business (and who knows whether the business will last long).

14 Customer base As a franchisee, you will benefit from the loyal customer base of the company. You don’t need to develop trust among customers; instead, you need to stand up to their loyalty to the company while developing trust among new customers. In a new business, you have to establish a customer base from scratch.

15 Easy access to finance Banks are more likely to approve loans as you are associated with a reputable franchise brand. New businesses come with high risks. As a result, banks will hesitate to bet on a startup business.
 
Which is better for you?

The Bottom Line – How to Choose a Franchise?

Now understand that franchising has several benefits over starting a new business, you must be wondering – How to choose a franchise?

To filter a franchise option, you should – 
1. Research – Enquire about the policies, credibility of the franchise, work culture, terms and conditions, etc.
2. Weigh your pocket – Research the expenses and choose a franchise that suits your budget.
3. Read the FDD – Before finalizing a franchise, you must carefully read the Financial Disclosure Document (FDD).

As you are new to the world of franchising, you might find it difficult to narrow down the franchise options. This is where a franchise consultant can help you.

A reputed franchise consultant, one who has owned and operated franchises and has a CFE at the end of his or her name, will handhold you through the entire franchising process, from finding a franchise to setting up a franchise and beyond. Or the result is that you find out that franchising is not the right fit for you. If that is the case, at least you made that decision to not move forward based on facts and not myths and misnomers.

If you wish to avoid any missteps when starting your franchising journey, you can chat with me . It’s always free of charge! Book a time today: www.GetWithTom.com
 
ABOUT THE AUTHOR:
Tom is a Certified Franchise Expert. He was the #1 franchisee of the year in one franchise concept and failed in another. The lessons learned from failure is what makes him an expert. Tom is the author of several books including the #1 Bestseller, Franchise Savvy: 6 Strategies that Pros Use to Pick Top Performing Franchises. He has helped more than 1500 people figure out if franchising is for them since 2005.

#FranchiseOpportunities #controlyourdestiny #changeyourlifetoday

5 Key Reasons To Franchise Your Restaurant Concept

Posted on by Franchise Strategist

As a Franchisor, your income is not derived from the operation of a restaurant. The Franchisor’s primary revenue source is a royalty payment made by the franchisee to the parent company. Also, this royalty is paid on top-line sales, not bottom-line profit. As a Franchisor, your role is to help franchisees increase their sales and increase the number of operating units.

5 Key Reasons To Franchise A Restaurant Concept
By Gary Occhiogrosso Managing Partner – Franchise Growth Solutions

Suppose you have a proven restaurant concept with a successful business system. Think McDonald’s, Panera Bread, Applebee’s, or Halal Guys. In that case, your next move may be to open additional locations. Franchising your restaurant and awarding others’ the rights to use your brand name, recipes, and procedures is a great way to expand. Why do restaurant owners choose to franchise their business? For the most part, it comes down to capital, time, people, and geography.

Lower Investment To Grow Your Brand

You can add additional restaurants while at the same time, you minimize your capital investment. Becoming a Franchisor and using franchising as the method to grow means other individuals (franchisees) will pay a franchise fee to gain access to your brand. Also, the franchisee will fund building the restaurant and assume the location’s financial responsibility. According to Harold Kestenbaum, a Partner with Spadea Lignana Franchise Attorneys: “Building out company units can get very expensive. Having a franchisee invest their own funds not only saves the franchisor money but allows the franchisee to have skin in the game. This is crucial for the success of a franchise system.”

Exponential Growth

Building corporate restaurants is limited to your capital, human resources, and, in many cases, geography. However, when you franchise, your brand may be growing more rapidly and in multiple markets. Once ramped up, some franchisors open as many as 20, 50, or more than 100 new restaurants a year. Michael Einbinder, founding Partner of Einbinder & Dunn, states: “Franchising restaurant concepts allows for fast growth. If you expand your brand through franchising, the investment in new outlets come from franchisees. Critically, franchising gives you an opportunity to grow in multiple markets simultaneously.”

Owners vs. Employees

In many cases, the most challenging aspect of running a restaurant is; recruiting, training, and maintaining good employees. As the Franchisor, that effort rests with the franchise owner of the individual location. Unlike owning and operating corporate locations, it’s the franchisees that have “skin in the game,” and unlike employees, they usually do a better job. Also, they can’t just quit at will because they have a vested interest in the business, usually in the form of personal cash and loan commitments. Franchisor, Charles Watson, CEO of Tropical Smoothie Cafe says: “Having franchisees who are aligned with your mission and willing to invest in their own success are critical for quality growth. You may not always have the same level of commitment from employees because their work does not impact their bottom line. Dedicated franchisees are often eager to execute the new initiatives that the franchisor rolls out systemwide to their local markets, which inevitably inspires guests to keep coming back to your concept, no matter what location is nearby. The franchisee/franchisor relationship is always evolving and is typically mutually beneficial.”

Residual, Royalty-Driven Income

As a Franchisor, your income is not derived from the operation of a restaurant. The Franchisor’s primary revenue source is a royalty payment made by the franchisee to the parent company. Also, this royalty is paid on top-line sales, not bottom-line profit. As a Franchisor, your role is to help franchisees increase their sales and increase the number of operating units. When done correctly, the Franchisor benefits, and the franchisee’s chances of higher profit through better operations and broader brand recognition are increased. The general public loves and trusts “Name Brands” and can sometimes be skeptical of the one-off mom & pop operations.

Better Selling Price At Exit

Suppose you’ve built your franchise company with reliable franchisees, a tight operating model, and strict enforcement of brand standards. In that case, the chance is a potential buyer will pay a higher price based on a multiple on your profits. All too often, non-franchised restaurant owners sell their corporate-owned restaurant chain at a price based on two or three times multiple of their bottom line profit. However, many investors, particularly private equity firms, are attracted to franchise companies whose revenue is driven by royalties.

According to Michael Einbinder: “Many franchisors build their concepts with the ultimate goal of creating value in the long term for an exit. In the last several years as private equity firms have become more involved in franchising, the trend has been that the multiples paid on franchisor EBITDA are higher than on company operations.”

Investment firms are often willing to buy based on a multiple double and sometimes triple that of an independent restaurant chain. Why? Because unlike profit earned by restaurant operations, royalty driven profit is virtually endlessly scalable. Franchisors usually have a lower operating cost with less overall risk compared to corporate-owned chain restaurant companies.

Closing Thought

Although each owner has their own reasons to franchise a business, these are the key motivators why restaurant owners franchise their concept. However, franchise companies are not without unique challenges. There are numerous other considerations, such as the cost to set up and maintain legal compliance, marketing & the cost of recruiting new franchisees, franchisee relations, and developing a unique skill set as a Franchisor. We’ll cover that other side of franchising in another article.

LEARN ABOUT FRANCHISING YOUR BUSINESS, check out our website: www.franchisegrowthsolutions.com

ABOUT THE AUTHOR:
Gary Occhiogrosso is the Founder of Franchise Growth Solutions, which is a co-operative based franchise development and sales firm. Their “Coach, Mentor & Grow Program” focuses on helping Franchisors with their franchise development, strategic planning, advertising, selling franchises and guiding franchisors in raising growth capital. Gary started his career in franchising as a franchisee of Dunkin Donuts before launching the Ranch *1 Franchise program with it’s founders. He is the former President of TRUFOODS, LLC a multi brand franchisor and former COO of Desert Moon Fresh Mexican Grille. He advises several emerging and growth brands in the franchise industry. Gary was selected as “Top 25 Fast Casual Restaurant Executive in the USA” by Fast Casual Magazine and named “Top 50 CXO’s” by SmartCEO Magazine. In addition Gary is an adjunct instructor at New York University on the topics of Restaurant Concept & Business Development as well Entrepreneurship. He has published numerous articles on the topics of Franchising, Entrepreneurship, Sales and Marketing. He was also the host of the “Small Business & Franchise Show” broadcast in New York City and the founder of FranchiseMoneyMaker.com Read Less

What You Need to Consider Before Opening Your Own Restaurant

Posted on by Franchise Strategist

The amount of work it takes to not only survive but also make an impact with a restaurant is massive. According to FSR Magazine, 60 percent of all restaurants fail in the first year. A restaurant that lasts for years takes humility. You must acknowledge daily how bad you are at restauranting, until one day you’re not bad anymore.

What You Need to Consider Before Opening Your Own Restaurant
The following is adapted from Unsliced.
By Mike Bausch

Opening a restaurant is a huge decision—one of the biggest decisions you’ll ever make. It’s hard work, full of risk and failure, and can be disappointing and frustrating. It can also be rewarding and fun, and if you do it correctly, can be profitable.

But you may have a 9-to-5 job right now that brings in steady income. How do you trade that for the uncertainty of the restaurant business? For most people, it’s not a trade they’re willing to make. To know whether you’re one of those people—or the type of person who should try their hand at restaurant ownership—here are few important considerations.

Two Types of People: Which One Are You?
First, look at the two statements below. Which one best fits you?

I am a person who tries hard, and the effort is what counts.
I am a person who likes setting my mind to things and accomplishing them.

At first glance, both seem like positive, motivational statements. But the second statement is actually better because the mindset is results-oriented. You’re focusing on a goal, and just trying hard and giving it an effort isn’t enough.

This means that when things get bad, you enjoy finding a way out of it. I’m pretty sure that being a glutton for punishment isn’t necessarily normal or healthy. However, it’s an essential trait of anyone looking to own their own business—especially a restaurant.

Owning a Restaurant for the Right Reasons
You may have decided to own your own restaurant hoping to become a celebrity chef. Or maybe you just don’t like your job and think owning a restaurant will be fun. If these are your reasons, then forget it. A restaurant is not the answer to your problems. It’s asking for a lot of new problems—problems you’ve never encountered or imagined.

The amount of work it takes to not only survive but also make an impact with a restaurant is massive. According to FSR Magazine, 60 percent of all restaurants fail in the first year. A restaurant that lasts for years takes humility. You must acknowledge daily how bad you are at restauranting, until one day you’re not bad anymore. That’s a lot for the average person to absorb.

Asking Yourself the Big Question
The restaurant life will affect your home life drastically. Restaurants sometimes destroy relationships and consume your mental health and quality of life. This life choice is a gamble—a gamble you might succeed in, in your hope to serve people food in an industry with a meager financial return rate and as I said, an extremely high failure rate.

If you haven’t committed to a restaurant yet, please pause and say this out loud:

“I need this; I need to own a restaurant. I don’t just want to own a restaurant. I absolutely need to do this. This is my calling. I got this, and nothing else will suffice.”

If that statement sounded stupid when you said it out loud, restaurant ownership isn’t for you. If you don’t believe what you said, you aren’t ready to do this. If you’ve never even operated or worked in a restaurant, then don’t assume for a second that you know anything. In fact, your best move is to concede you know nothing so you can be a blank canvas ready for paint.
Make the Best Decision for You

So what’s it going to be? Safety or risk? The same old routine or unpredictability? Don’t feel bad if you choose to opt for that cubicle job. It usually offers a lot less stress and heartbreak than opening your own restaurant. The world needs people in those office chairs.

But if you choose to be a restaurant owner, be ready for a roller coaster ride. Be ready for long days and nights, unexpected changes, and some lean times. But you knew that, or you wouldn’t have made that decision, would you?

For more advice on deciding to open a restaurant, you can find Unsliced on Amazon.

About the Author:
Mike Bausch is an industry leader whose restaurant, Andolini’s Pizzeria, is a top ten pizzeria in the US, as named by TripAdvisor, BuzzFeed, CNN, and USA Today. Andolini’s began in 2005 and has grown to five pizzerias, two gelaterias, two food hall concepts, a food truck, and a fine dining restaurant by 2019. Mike is a World Pizza Champion, a Guinness Book world record holder, and a writer for Pizza Today. Mike is part of a Marine Corps family who has lived across America from New York to California. Mike calls Tulsa home and lives with his wife, Michelle, and son, Henry.

Tips on How a Franchise Brand Can Become a Top-Performer in the Franchising Industry

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How a Franchise Brand Can Become a Top-Performer

By Ed Teixeira.
VP Franchise Development FranchiseGrade.com , Author, Franchise Expert, MA Economics, Industry Partner of Stony Brook University Center of Entrepreneurial Finance, Pace University Lubin School of Business Advisory Board

For a franchise brand to become a top performer, franchisors must adhere to certain operating principles. One of the most important ones is to grow the number of franchise locations to promote the franchise brand. In the case of certain well-known franchise brands, system size alone doesn’t always convert to a top performing franchise brand.

Franchisors that want their franchise to be recognized as a top brand need to follow a set of building blocks that can serve as the foundation for a successful franchise system. Utilizing these building blocks will strengthen the franchise program, provide its franchisees the best opportunity for financial success and help establish the franchise brand as a top performer.

1. Equitable franchisee ROI must be a priority

The foundation of the franchise program operationally and financially must provide franchisees an opportunity for success that does not require extraordinary performance. If franchisees follow the franchise program and do not earn an ROI commensurate with their original investment, then the franchise may be flawed.

2. If the franchise program is flawed, then it must be fixed

Franchisors should adjust a franchise program that isn’t “working.” There is no reason why a royalty or advertising fund contribution can’t be changed. If certain products or services aren’t successful, then find alternatives. Conduct franchisee surveys to measure franchisee satisfaction levels.

3. The franchisor must control the franchise sales process and adhere to its ideal franchisee profile

Establish a franchisee profile and if franchise candidates don’t fit this profile say no! If the franchisor utilizes brokers, the franchisor must maintain control over the franchise sales process.

4. Be transparent with prospective franchisees

Provide prospective franchisees full disclosure about the franchise opportunity and what’s needed to be successful. The franchisor sales staff should act as more consultant and less salesperson.

5. Franchisor leadership must be engaged in the franchise operation

Franchisor leadership should be accessible and involved in the franchise operation, so they are aware of franchise system performance. There shouldn’t be surprises when it comes to franchisee performance.

6. Franchisee input should be solicited for important operational and marketing strategies

Significant changes or alterations to franchise operations and marketing, should involve the franchisees. This can be done using the FAC, advertising committee or other representative body.

7. New products and services should be evaluated and measured by franchisees before introduction

The franchisor should test new products, services or equipment in representative franchisee locations before introducing them. This process leads to objective and credible results that will earn the franchisees buy-in.

8. Obtain financial results from franchisees on a regular basis

Use franchisee financial statements to identify individual and collective franchisee performance. A lack of important financial information prevents a franchisor from knowing which franchisees are profitable and which are not.

9. Uphold and protect the integrity and standards of the franchise program

It’s critical that the franchisor uphold the standards of the franchise. The franchisees that follow the program deserve it and the customers that use the product or services provided by the franchisees are entitled to consistency. Franchisors that don’t protect the brand are not respected by their franchisees.

10. Invest in franchisee training and support

Top notch franchisors have viable and effective training programs. Training and support don’t end with start-up franchisee training but should be a continuing activity. When franchisor staff identifies weaknesses in the execution of franchisee operational practices the Training Department should implement programs to address these problems.

To build a top- performing franchise program franchisors can use these 10 building blocks, which requires implementing policies, practices and procedures to improve franchisee performance and success.
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Learn more about the author and Franchise Grade:
Ed Teixeira. VP Franchise Development FranchiseGrade.com , Author, Franchise Expert, MA Economics, Industry Partner of Stony Brook University Center of Entrepreneurial Finance, Pace University Lubin School of Business Advisory Board

Investing in the COVID-19 Recession Era

Posted on by Franchise Strategist

Investing in the COVID-19 Recession Era
By Patrick Findaro, Co-Founder and Business Development Director of Vetted Biz

An analysis on the industries with the strongest likelihood of a rapid recovery from the recent lockdown-induced recession

Introduction

The recent COVID-19 induced lockdown led to a rise in a nationwide recession of which the country is only now beginning to recover from. Nevertheless, after researching and analyzing more than 2,900 businesses at Vetted Biz, we have found a select few industries that were able to remain stable despite social distancing restrictions. Additionally, there are also other industries expected to thrive once restrictions finish being lifted and the worst of the pandemic has passed.
The criteria used for this article when evaluating these industries addressed several factors. First, it looked at how successful each industry’s businesses were in adapting to these new restrictions. Then, it studied what opportunities these industries offered for its businesses to diversify during difficult times; and also speculated on what curve model best suited each industry’s recovery process once lockdown restrictions finish being lifted. Finally, in cases where this was possible, this study also cross-referenced industries’ performance predictions with the historical data on their SBA loans, which can be found here.

Main Findings: 3 Characteristics, One Outcome

The findings from this initial research concluded that COVID-resilient industries normally contain the following three characteristics: 1. Secure payments, which refers to having recurring revenue ensured by having either periodic contracts or offering services deemed “essential”; 2. Market leverage, which concerns having a strong brand and industry performance prior to lockdown restrictions being imposed so that businesses do not have to disburse additional costs in marketing during this time; and 3. An efficient budget, which encompasses factors such as high margins, strong liquidity and overall profitability. The article below will address in-depth, industries that are deemed either “COVID-resilient” or that will likely bounce back in the short-term once local restrictions finish being lifted. It will provide pertinent examples on how each industry is adapting accordingly, and will conclude by showing how the industries selected all have the three characteristics previously deemed necessary by this article.

COVID-Resilient Industries

Ghost Kitchen Restaurants

Ghost Kitchen restaurants – which are professional food preparation and cooking facilities set up for the preparation of delivery-only meals – have not only remained open during the recent lockdown, but also saw an increase in sales throughout this period. Amongst the numerous benefits that come with investing in a Ghost Kitchen concept, two specific ones particularly created optimal conditions for them to continue to thrive during the current situation: their efficient budget, and market leverage. Because Ghost Kitchens focus solely on servicing delivery and takeout orders, not only is the kitchen’s site required by the restaurant smaller, but also, the location of the kitchen is not as important seeing the business is not as dependent on foot traffic – both of which allow for lower costs associated with real estate.
Additionally, Ghost Kitchens can be run by as little as 2 to 3 employees, a fact that given the current situation not only further reduces costs associated with payroll, but also mitigates any contamination risks which remain a predominant concern during COVID-19. In terms of this sector’s market leverage, it is important to consider recent studies showing that 31% of consumers use delivery services at least once a week, and that 59% of millennial orders every week are either for takeout or delivery.
Beyond that, a recent study on SBA Loans found that between 1991 and 2019, 61% of food and beverage franchise loans were paid-in-full – a relatively high value when compared to other industries such as fitness centers or home services. The characteristics outlined above shows that Ghost Kitchen models are a sector of the restaurant industry that should only be expected to continue to strengthen as social distancing growingly becomes a greater part of the population’s reality.

Landscaping

The landscaping industry, which includes installing, cleaning and maintaining any territory’s green area, is another industry that has remained stable throughout the recent lockdown restrictions. Because the landscaping industry was not shut down during the recent lockdown, it was able to keep servicing its clients and generating revenue. The fact that state and municipal laws require businesses to maintain the landscaping orderliness of the territory they are operating in, means businesses offering landscaping services are treated as a priority by its commercial clients.
Additionally, as commercial businesses open, landscaping businesses are once again able to leverage their presence and ensure they can hold existing clients while adding on new ones as well. Another important factor to consider is that most services contracts within this industry are signed on a long-term basis, meaning recurring revenues is a strong characteristic of this industry. Finally, because the services provided by this industry are at the client’s specific location, the business can be operated from a small office space and is consequently able to optimize its budget by not having to allocate a great percentage of it towards real estate costs, which normally make up a large sum of a business’ expenses.

Property Management

The Property Management industry, which offers services that manage commercial and residential properties on a large scale on behalf of homeowners, is an additional industry that has proven to be COVID-resilient. Property management businesses manage owners’ commercial or residential real estate properties on their behalf through long-term contracts. These businesses deemed essential by homeowners and their long-term contracts allow for greater stability and makes it harder for clients to go back on their service contracting decisions. This allows for a strong inflow of recurring revenue.
Additionally, property management businesses can be run from a home office and by 1 or 2 employees only. SBA studies show SBA loans disbursed to businesses within the Real Estate industry also had a relatively high paid-in-full rate of 60.1% – thus further corroborating the industry’s strength despite recent circumstances.

Bookkeeping & Tax Preparation

Finally, the bookkeeping and tax preparation industry has thrived during this most recent recession. With most of the population rushing to have tax returns filed to receive government stimulus packages, this industry has recently seen an increased demand that has allowed for its businesses to leverage their market presence.
Secure payments have also been a feature of the industry due to monthly payments and renewals from businesses in need of bookkeeping services as they adapted to recent conditions and prepared to apply for stimulus packages as well. Finally, these businesses can also be run from a home office and with as little as 2 to 3 employees. Once again, bookkeeping and tax preparation businesses have shown that with an efficient budget, secure payments and strong market leverage, an industry is able to remain afloat even throughout a COVID-induced recession.

Cleaning & Maintenance

While cleaning and maintenance services might have been suspended or diminished as lockdown restrictions were put in place, this industry is likely to see the strongest and fastest recovery curve as these same restrictions begin being lifted. ¬With one of the most important conditions for reopening being ascertained cleanliness at all times, it is likely the cleaning and maintenance industry will experience the strongest market leverage, as their services are considered the utmost priority of any business looking to reopen.
Additionally, cleaning services do not require an extensive employee count or entirely sophisticated equipment. When cross referencing this industry’s performance prediction with its historical data on SBA Loans disbursed between 1991 and 2019, the cleaning and maintenance franchise industry had the highest SBA paid-in-full rate at 67.8%, once again reiterating the industry’s strength and likelihood of recovery once lockdown restrictions have been lifted.

Barber Shops & Beauty Salons

Although beauty salons and barber shops were not deemed an “essential service” during the recent lockdown and consequently had to shut down their services throughout most of the quarantine, they are likely to see a strong recovery curve as restrictions are lifted and people begin to resume their normal lives.
Grooming services especially for men, will likely peak as they return to work in need of a haircut. Additionally, women will likely seek beauty salons to address services in need such as waxing, haircut, and eyebrow design. By leveraging its market presence as people begin leaving their homes and resuming their regular self-care routines, the barber shop and beauty salon industry will likely see a strong recovery.

Children Programs

Children education and after school programs is another industry that will likely experience a strong bounce back once lockdown restrictions are lifted. Because most businesses have remained open and transitioned to online platforms, they have been able to maintain their market presence and secure a steady inflow of revenue as their help in keeping their children entertained or providing additional reinforcement to online schooling efforts became an unprecedented priority to parents also working from home.
Additionally, it is likely their market leverage will be even further elevated once families resume their daily life and parents begin to push their children towards reestablishing their regular routines. Finally, as children return to school in the Fall and parents see the education gaps left from online schooling during the spring semester, education programs in particular should experience an even greater growth rate.
Children education and after school programs have a strong leverage to secure a steady growth once restriction lockdowns are lifted, a fact that is corroborated by its relatively low SBA default loan rate, which was at only 4.2%.

Conclusion

As lockdown restrictions are lifted, a business’ ability to adapt and grow under current circumstances will likely become a strong factor in any investment process being pursued. By outlining some of the industries we have seen thrive during these difficult times, we hope to have clarified and mitigated any uncertainty that may have risen during your entrepreneurial pursuits amidst COVID-19. In sum, businesses and their respective industries that have been able to secure payments, optimize their budgets, and leverage their market presence should be considered the strongest candidates for investment as the country begins to recover from this COVID-induced recession.

Learn more here: https://www.vettedbiz.com/

Pandemic Spurs Innovation for Small- to Mid-Sized Businesses

Posted on by Franchise Strategist

Set up your business in the right entity and state. Mistakes in formation or taxation can have a lasting negative impact on business growth and viability. Before starting a new business, consider the best structure for asset protection and tax minimization. For example, a limited liability company (LLC) gives business owners time to operate at a loss for the first few months and write off the loss on their individual 1040 forms against other forms of income.

Pandemic spurs innovation for small- to mid-sized businesses

By Brandpoint

(BPT) – As COVID-19 continues to disrupt normal day-to-day operations of small- to mid-sized businesses and nearly half of the U.S. workforce hangs in the balance, employers are taking creative measures to reset their go-to-market strategies and offerings. By changing their operations to meet the demands of their customers, businesses can not only stay relevant but keep their staff employed and thrive in the new economy.

This pandemic offers business owners, investors and solopreneurs the opportunity to take a critical look at their overall business model, offerings and operations and reset the entire business structure, creating new opportunities to serve and prevail. This is the perfect time to explore new legal solutions to the most common business obstacles to help companies preserve and protect their brands and prosper for generations to come. There are great examples of resets happening within many industries.

With the pandemic closing summer camps throughout the country, ACA-accredited Adventure Links, a 23-year-old summer camp in Virginia, has found a way to replace its usual summer adventure camp programs with

The CampCloud(TM) , an experiential online alternative. The company is now offering its virtual camping programs to individuals and employers to assist employees working from home by keeping their kids engaged, learning and delighted all day from virtually anywhere. The program is being offered to other camps as a customizable, online option for their campers.

Ensuring the health and safety of employers when stay-at-home orders are lifted, and business resumes, is critical. Thanks to a team of entrepreneurs, Disinfect & Shield(TM), an FDA-registered, EPA-approved and eco-friendly disinfectant used in surgical suites for the last decade, is now available to businesses worldwide to kill SARS-CoV-2, the virus that causes COVID-19 and other dangerous organisms. It works by creating a permanent anti-microbial shield, preventing the virus from attaching to surfaces where it has been applied without risk to humans, animals or crops. With Disinfect & Shield(TM), employees, customers and visitors can feel safe knowing that their space has been properly disinfected and treated for optimum health and safety.

Clint Coons, founder of Anderson Business Advisors, offers 5 financing and entity creation tips to help entrepreneurs and small business owners:

  1. Know how to use loans: CARES Act loans have specific guidelines like having to use at least 60% of the loan within 24 weeks of receipt for payroll expenses. Concerned that money would dry up, many small business owners applied with no way of utilizing them because their business cannot reopen under the strict guidelines imposed on the industry.
  2. Alternate cash sources: Borrow from a 401(k) or IRA to keep businesses afloat, as it does not need to be paid back for at least 3-6 years. However, pulling money out of a retirement plan comes with some risk, such as if the business does not see profitability, then retirement funds were wasted on a failed business venture.
  3. Beware of increasing liabilities: Because insurance will not cover claims brought under COVID, reopening comes with risk and business owners are wondering how they will operate under strict COVID-19 related guidelines and still make a profit. Now is the time to pivot and reset.
  4. Consider restructuring: Set up your business in the right entity and state. Mistakes in formation or taxation can have a lasting negative impact on business growth and viability. Before starting a new business, consider the best structure for asset protection and tax minimization. For example, a limited liability company (LLC) gives business owners time to operate at a loss for the first few months and write off the loss on their individual 1040 forms against other forms of income. There are different entity funding options with protection ramifications.
  5. Utilize Privacy Shield Protection by creating anonymity with trusts.

COVID-19 has shown that many businesses aren’t prepared for worst-case scenarios and make common mistakes that can affect their ability to grow and borrow money. If approached strategically, small- to medium-sized businesses can take this time to implement changes and help their operations succeed and thrive.

An Interview With Tropical Smoothie Cafe’s CEO, Charles Watson

Posted on by Franchise Strategist

An Interview With Tropical Smoothie Cafe’s CEO, Charles Watson

By Gary Occhiogrosso
PHOTO COURTESY OF TROPICAL SMOOTHIE CAFE

CEO Shares His Story & Insights On Taking The Reins.
Amid all the pandemic news and stories of how the foodservice business is coping with the crisis, I thought I’d attempt to redirect our attention today, even if only for a short while. As a 35 year veteran of the restaurant and franchise industry, I have always been fascinated by the challenges, risks, rewards, and day to day “work” a CEO faces when first taking the helm of an ongoing franchise organization. Today’s post focus’ on that topic in an interview with Charles Watson, the CEO of Tropical Smoothie Café.

Mr. Watson was appointed the CEO position of Tropical Smoothie Cafe in December 2018. Since that time, he has led the company on its quest towards $1billion in sales by 2023. He’s no stranger to franchise development, nor is Charles Watson an outsider, having served four years as the company’s Chief Development Officer in addition to his prior role as VP of Franchise Development. He is directly responsible for selling more than 800 franchises.

As their franchise website states: “Tropical Smoothie Cafe’s menu boasts bold, flavorful smoothies with a healthy appeal, all made-to-order with quality ingredients. We find that real fruits, veggies, and juices just taste better.” The offerings have evolved over the years to include a menu of breakfast and lunch items beyond smoothies. From wraps to flatbreads to salads, Mr. Watson continues to solidly position Tropical Smoothie Cafe as a leader in the fast-casual, healthier lifestyle food category.

Gary Occhiogrosso: Tell us a little about your background before joining Tropical Smoothie?

Charles Watson: “Prior to joining Tropical Smoothie Cafe, I worked for several hotel and hospitality-centric companies, including Wyndham Hotels & Resorts, Intercontinental Hotels Group, US Franchise Systems, Inc. and Hospitality Real Estate Counselors. I joined Tropical Smoothie Cafe in 2010 as the Vice President of Franchise Development and, in 2016, became the Chief Development Officer, where I was responsible for all aspects of the development of the brand. In July 2018, I was named interim CEO, and then permanent in December 2018.”

Occhiogrosso: Please give our readers the “Elevator Pitch” for Tropical Smoothie Cafe?

Watson: “Tropical Smoothie Cafe is a national fast-casual cafe concept inspiring healthier lifestyles with more than 850 locations in 44 states. Beyond just smoothies, we serve better-for-you wraps, sandwiches, and flatbreads, and pride ourselves on living at the “intersection of taste, convenience, and hospitality.” In a highly competitive segment, we’re one of the fastest-growing quick-casual brands, opening 124 new locations in 2019 alone and singing 213 development agreements to open hundreds of businesses over the next few years.”

Occhiogrosso: What was the condition of the company before you were named CEO?

Watson: “We were in a good place! In 2018, when I was named CEO, we had more than 720 locations open nationwide. By year-end 2018 we opened 110 cafes and signed 191 new franchise agreements. Building off this momentum, in 2019, we celebrated the openings of our 750th and 800th locations, but taking over during such a monumental time for our brand certainly brought opportunities to improve. Each year, franchisees complete the Franchise Business Review to essentially grade us here at the Support Center on how we’re serving them. We gathered that feedback and used it to set goals and action plans for the company. Areas we wanted to attack immediately with our rapid growth were direct franchisee support as well as technology support and menu innovation. We set company-wide strategic imperatives around these issues immediately.”

Occhiogrosso: What were the one or two unique challenges that you faced upon taking over as CEO?

Watson: “As a first time CEO, learning to view the business from a thinking vs. a doing mentality was a challenge I faced. The success of our brand is about the talent and drive of our talented executives and Support Center team. It was not possible for me to get involved in every project – so I had to learn to let go and delegate. I would say that understanding the viewpoints and drivers of the different stakeholders I was serving was important. A presentation for a board is focused on very different things than a franchisee roadshow. Really trying to understand how to see the world through a different stakeholders’ eyes is something I still work on.”

Occhiogrosso: What was your plan for the first 90 days?

Watson: “I wanted to further instill a franchisee-first mentality. When our franchisees are successful, the brand is successful. When I became CEO, I launched a formal franchisee advisory council, known in our organization as the Tropical Franchisee Council (TFC). While we had always involved franchisees, I felt it needed to be formalized and more visible to our franchise system. In short, franchisees needed to know that there was a formal mechanism of their peers that was constantly feeding back to us at the Support Center. From there, we set up committees, reporting into our TFC, around the major parts of our business, and included more franchisees to provide feedback and work with us on further improving IT, Marketing, Design, and Construction, etc. It was important to me that we have franchisees themselves share their feedback and align on system initiatives and goals. In a franchise system, without broad franchisee buy-in, you cannot move as efficiently and effectively as is required in today’s business environment.”

Occhiogrosso: How is taking the reins of an existing company different than being part of a startup or a founder?

Watson: “I think when taking over any brand where you worked alongside your predecessor, there’s a certain level of pressure to continue carrying the torch, but also to make necessary changes to the brand to evolve with the changing economy and consumer trends. I was lucky enough to work with the founders of the business (and still do as they are board members) as well as work under our first CEO, who did an amazing job. Because 99% of Tropical Smoothie Cafe’s system is franchisee-owned and operated, it was my goal to maintain consistency for them and move the company forward in the right direction, with a lot of reverence and respect for the past. In my case, because I already had nearly a decade with Tropical Smoothie Cafe on the franchise development side, I had the unique advantage of personal relationships with our franchise community. We had a high level of mutual trust and respect for each other that existed before I assumed the role of CEO. I may have been, in fact, the person responsible for awarding them a franchise! My experience with the brand up to that point was beneficial because I was already very immersed in the operations and processes that had contributed to its success at that time. That created a kind of blueprint that served as the foundation for me to take the reins and lead the company the way I felt was best. Yes, I am putting my mark on the brand and culture, but I have been around long enough not to stray too far from the DNA of the brand.”

Occhiogrosso: What challenges, if any, did you face in getting “buy-in” from the existing franchise community once you became CEO? Were any of the franchisees reluctant to follow the system or embrace a new direction?

Watson: “Like I said, I was very fortunate to have had already developed relationships with our franchise community prior to becoming CEO. My predecessor did a great job, so most of the hesitancy candidly was, “will this guy be as good, will we have the same amount of success?” Luckily in my first two years as CEO, we continued to expand the footprint of the brand, and increase brand awareness, drive profitability for our franchisees and drive our comp sales…. So that was helpful! The impact of the more formalized committees we have set up, and the close connection I have with TFC has gotten the system more comfortable with my style and thinking, and I believe, since trust is earned, I still have a long way to go, but am off to a good start. Without our franchisees, committees, and council, I simply could not do this job. Those franchisees are serving our guests on the front lines – I can’t run this business without their candid feedback.”

Occhiogrosso: How do you feel about franchise advisory councils? And was one in place already?

Watson: “I’m a huge advocate for franchise advisory councils, specifically when nearly 60% of all franchise agreements at Tropical Smoothie Cafe come from existing franchisees. The Tropical Franchisee Council (TFC) was established in 2018 and has been invaluable for our growth. “Relationships Rule” is one of our core values, and because of that, people are at the heart of our company. Our relationships are founded on trust and respect for the unique talents of our teams, franchisees, and vendors alike. We strive to continue to harness these relationships in this way and feel that this approach will continue to fuel our success. The TFC works hand-in-hand with Tropical Smoothie on all facets of the business from operations, IT, marketing, construction, and beyond, and their genuine feedback continues to establish the open communication we strive for, helping us to enhance our business model on an ongoing basis. This process only helps our individual franchisees and their bottom line, respectively.”

Occhiogrosso: What is the mission and goal of the company over the next few years?

Watson: “At Tropical Smoothie Cafe, it’s our mission to inspire a healthier lifestyle by serving amazing food and smoothies, with a bit of tropical fun. We want to be an escape for our consumers in this hectic world we live, and an incredible business model for our franchise partners It’s an exciting time to be a fast-casual concept within this segment, specifically as the market size of the juice and smoothie bars industry is expected to increase by 2.3% in 2020, reaching nearly $3 billion in revenue across the globe. We consider ourselves to be an approachable, healthier option for the average American, and our customer loyalty system-wide continues to climb. Our company sells about 200 franchises, opens over 120 cafes a year, and has more than 500 locations in the pipeline. As a brand, we strive for excellence in service and creating a culture of hospitality for our business no matter which location you visit, and this year we’re prioritizing them even further by enhancing pillars of our hospitality-centric culture and the technology we use to create convenience for our guests in order to reinforce our position as the leader in our segment. Over the next five years, our goals are to reach 1,500 cafes open across the U.S., with over 18% profitability for our franchisees on average volumes in excess of $1M, all with very high operational satisfaction for our guests. Our annual tactics are focused around delivering those results.”


Although I did not want to focus on COVID-19 in this interview, it is difficult to ignore its impact on the restaurant community as well as franchisees in general. So I was compelled to ask Mr. Watson his thoughts on the pandemic and the company’s response.

Occhiogrosso: During the current COVID-19 crisis, what steps have you taken to ensure that Tropical Smoothie Cafe supports the local community?

Watson: “When COVID-19 struck the restaurant landscape in mid-March, we closed all dining rooms and shifted our focus to drive-thru, curbside pickup, and delivery where available. Then we determined two focus areas, giving back to the community and prioritizing support for our franchisees. Some of our franchisees had the idea to donate smoothies to first responders and hospital workers in Atlanta. We loved the idea so much we launched a nationwide campaign to donate 100,000 smoothies across the country and the response has been incredible. Within the first day, several local franchisees jumped on board and donated more than 600 smoothies each, and the donations just kept growing from there. On April 16 we met our goal of 100,000 smoothies, but our franchisees haven’t stopped there, and the new challenge is to donate a total of one million smoothies by the end of May. Knowing that those essential workers are not only in the healthcare fields, we’ve also extended our giving to grocery store, warehouse and post office employees. We’re proud to report that as of today, we’ve donated more than 200,000 smoothies to these hometown heroes, and we’re not done yet! In support of National Nurses Appreciation Month in May, we have also pledged to donate $100,000 to the American Nurses Foundation’s COVID-19 Response Fund upon reaching our goal of giving away 1,000,000 smoothies.”Our franchisees are the heart of our brand, so we wanted to make sure we were doing everything we could to help them stay afloat through the crisis. We decreased royalties and deployed hyper-local marketing strategies to drive business within a 1–to 2-mile radius of cafes. While our projected 2020 growth might take a step back due to the coronavirus, I believe our approach to navigating through this will help us emerge quickly once it passes.”

Occhiogrosso: What are some of the additional support initiatives you put in place for your franchise community during the pandemic?

Watson: “Our franchisees are the heart of our brand, so we wanted to make sure we were doing everything we could to help them stay afloat through the crisis. We’ve implemented various franchisee support initiatives, including decreased royalties by 50%, ongoing support with PPP loans and real estate deferrals and abatements, rolling out curbside delivery systemwide, deployed hyper-local marketing strategies to drive business within a 1–2-mile radius of cafes, among many others. While our projected 2020 growth might take a step back due to the coronavirus, I believe our approach to navigating through this will help us emerge quickly once it passes.

Occhiogrosso: How do you see the company moving forward?

Watson: “As you know, the restaurant industry has taken a huge hit. Although COVID-19 has directly impacted our business, some days being down more than 50 percent, we consider ourselves lucky to have a business model that allowed us to easily transition to grab-and-go, curbside, and delivery only. I think the biggest shift will take place for those restaurants that can’t be open right now. The guests who support local businesses in and around their communities are the ones we give the credit to because their loyalty to our cafes is what has ultimately maintained our ability to serve. Because of our amazing guests, our franchisees, and the communities they serve, including those on the front lines of this pandemic, we will get through this. As reopening guidelines are being determined, we plan to move forward with an abundance of caution.”

In conclusion, I believe the growth of Tropical Smoothie Cafe over the last two years demonstrates Mr. Watson’s steady leadership and a clear understanding of building on the momentum that has made the brand a leader in its category. In my experience, making franchisee success and profitability the priority is the key to the longevity of any franchised brand. The fact that nearly 60% of all new Tropical Smoothie Cafe units are opened by existing franchisees underscores the franchise owner’s satisfaction with the concept, the company, and it’s leadership. It’s almost all you need to know about the results of Mr. Watson’s work and commitment to the franchisees. Successfully taking the reins on an existing franchise company can be a daunting task, but in the case of Charles Watson, he continues, as their franchise website claims, to create waves for a brand that started on the beach.

About Charles Watson:

Charles Watson was named CEO in December 2018. In this role, he is responsible for the brand’s strategic vision and overall franchise performance. He was previously Tropical Smoothie Cafe’s Chief Development Officer since 2016, after serving as VP of Franchise Development since 2010. In these roles, Charles was responsible for all development of the Tropical Smoothie Cafe brand. A veteran hospitality professional, Charles has worked for several hospitality-related companies, including Wyndham Hotels & Resorts, Intercontinental Hotels Group, US Franchise Systems, Inc., and Hospitality Real Estate Counselors. Charles is a graduate of The Hotel School at Cornell University and also holds a Masters of Business Administration from The Terry School of Business at The University of Georgia.