Author: Rebecca

by Michele Rempel

One thing I believe we can all agree on right now is that 2020 has been a memorable year for small businesses. I’ve talked to very few business owners or franchisees who have said that it has been “business as usual” for them. Add a traditional summer “lull” for many industries, and it could be a slow year indeed. As I mentioned in my previous article, marketing during difficult times becomes even more vital to the health of your business. Rather than thinking of this as a marketing “downtime,” think of it as a marketing “uptime.” Here are some ways you can take advantage of a slowdown:  

Reward your loyal customers 

This could be the perfect time to develop a loyalty program, especially if your franchise is in the service industry. We’ve worked with franchisees who ordered a few different gift items (usually with their logo) to give to customers on their start date “anniversaries” (“Thanks for being a loyal customer for 2 years!”) or who have used their services after a certain number of times. We have seen customers post about the gesture on social media or even use it as the impetus to post a review on Google or Facebook. Your local promotional items rep will be overjoyed and probably extremely helpful in selecting the best gifts for your loyalty program.  

Write about your successes  

Have you been thinking about those customer success stories from the last year or so? Now is a good season to turn those stories into case studies that you can share on your website and social media.  Case studies can be in print or video format and are perfect for sharing on social media, in emails and on your website (if you can add content to your site). They are also helpful for your sales agents to review and even share with prospects.  

Build a new marketing channel 

Consider branching out into a new social channel. We have seen several of our clients decide that this is the time to embrace Instagram or LinkedIn as an additional way to reach potential customers and clients. Others have been using this opportunity to reconnect via regular email newsletters to past customers.  

Do some sleuthing about your competition 

If you haven’t been paying attention to what your competition is doing online, you might have some extra resources (time, if nothing else) to do that now. Whenever we talk to prospective clients about helping them market their businesses, we always spend some time checking out their competition. When your business is humming along, it is easy to get micro-focused on what’s happening in your own business and lose sight of what others are doing. You might discover new opportunities or threats, or a new approach to marketing that you had not considered before. 

Economic downturns or lulls can be frightening and frustrating. Responding to them with a fresh perspective can pay big dividends. “In the midst of chaos, there is also opportunity”. ~Sun Tzu  

by Elizabeth Dunham

“My business philosophy is that it is my employees’ job to keep customers happy, and it is my job to keep the employees happy.” 

This keen focus on culture and employee cultivation is what Laurie Spivack, CEO and President of Goodbye Graffiti USA, credits with the success of her business. Goodbye Graffiti USA is a franchise based in Seattle and offers graffiti removal, power washing, maintenance programs and anti-graffiti coating services.  

“Culture is critical in the success of a business,” Spivack said. “I work hard to create a family–feel among our employees. I want people to be excited to come to work.” 

Spivack uses training, personal responsibility and benefits to create the kind of atmosphere that keeps employees engaged.  She offers a robust benefits plan, public transportation subsidies and a living wage for every employee. 

“I measure the success of the Seattle operation by two main things: 1. More than half of our employees have been with us for more the three years, one for 14 years. 2. People call us and ask us to take care of them when they have graffiti issues. The trust us to show up and solve their problems.” 

Spivack is a unique business in that you never lack for jobs.  

“There is always graffiti,” she said. “And our business model offers several revenue streams. In addition to graffiti removal and power washing, we offer an anti-graffiti coating which makes it easier to clean surfaces. Once coated, you can use hot water to remove graffiti using less water and no chemicals which is good for the environment. The coating needs to be done every three years, so these customers keep calling.” 

Another recurring revenue stream is the Ever-Clean Program. This is a contracted service that puts customers on a weekly patrol route, and Goodbye Graffiti removes any graffiti they find for a flat-rate, monthly fee. 

Spivack has created a strong training program for her franchisees which includes training on how to find opportunities and write proposals for government contracts.  

“A lot of our customers are city governments and municipalities, so we include that assistance in our 200 hours of operations training,” Spivack said. “We wouldn’t be alive without government contracts.” 

New franchisees come to the Seattle office and immerse themselves in the operations. They learn technical processes, best practices for graffiti removal, software and operations procedures, marketing strategies and networking ideas. 

“I get great satisfaction out of creating and providing jobs to people,” Spivack said. “Recruiting new franchisees into business ownership and helping them create good jobs for people, that’s my dream. I offer generous territories because I want each owner to make a good living and feel satisfaction in helping others work.” 

by Julie Lusthaus

Tutoring is a booming business. In the U.S., it is reportedly a $4.9 billion industry. It is considered to be relatively recession-resistant in that parents are reluctant to cut education services to help their children. While in-person tutoring is likely to continue to experience strong growth, online learning may be even stronger. The size of the online tutoring market in the U.S. has been estimated at $608 million with an average growth of 6.9 percent between 2014–2019. However, because of COVID-19, e-learning may grow even faster. For those who have an existing tutoring business, this may present an opportunity to consider franchising. Before moving forward, there are costs and benefits to be weighed as with any franchise. These issues should be considered in relation to how they specifically apply to a tutoring franchise.  

Market size and location 

If you will be offering in-person tutoring, then you will want to target franchisees in optimal markets with a high percentage of parents who can afford tutoring services. With online tutoring, you may have more flexibility in terms of the location of your franchisee. However, either way, you must comply with both federal and state franchise rules. Many states have their own requirements for filing and registration and they may vary depending on where the franchisor is domiciled, where the franchisee is domiciled or where the business will be located. You will need to consult an experienced franchise lawyer about compliance with these rules. 

Staffing 

Typically, tutors have an educational background. For added credibility, you may want to require that franchisees hire tutors with tutoring certifications from the National Tutoring Association, American Tutoring Association and other certifying bodies. If the franchise will have a physical location, franchisees will need to access a good pool of candidates in the area at an affordable price. Note that tutors may be considered “employees” rather than “independent contractors,” which means they are subject to wage, hour and other employment laws.  

Reserving rights to online sales 

If you are franchising an online learning business or your in-person tutoring business also offers online tutoring as a separate service, you will need to decide if you want to reserve the right to sell online services yourself. This information will need to be included in the Franchise Disclosure Document (FDD). Item 12 of the FDD sets forth the geographical areas within which your franchises will/may operate. You must consider whether you want the ability to sell products and/or services within a franchisee’s territory through Internet activities or other channels of distribution. 

Start-up costs 

As the franchisor, you will have significant upfront costs related to business plans, legal documents, operations manuals, marketing materials, and other expenses. However, you also must consider the start-up costs for franchisees. An online learning franchise will have significantly lower costs for the franchisee than developing and maintaining a physical location. However, there may be added expenses related to training, software, tech support, and marketing for an online-only business.  

Franchising your tutoring business has great potential for growth, but it is important to discuss the specifics of your situation with a knowledgeable franchise attorney and business advisor.  

If you have questions about franchising your business, contact Lusthaus Law.