Posts Tagged ‘Is franchising for you’

Have You Considered Buying a Franchise? Learn More from Owners of a Top-rated National Franchise

Monday, July 17th, 2017

“My husband and I were in our mid-60s and retiring from corporate America when we considered opening a business together. Friends suggested that we go into franchising and offered resources that could help us decide if franchising would work for us,” explains Gale Cohen-DeMarco.

After lots of research and working with the franchise consultancy FranNet.com, Gale and her husband Peter began to clarify their interests, professional strengths and goals. They identified three possible franchise opportunities. One was Sport Clips Haircuts, which focuses on men and boys’ haircuts in a sports-themed environment. “After more research into Sport Clips, we were comfortable with its business model and potential for us, challenging as this new venture would be.”

“Peter and I also complement each other’s strengths. He understands the financial side of businesses, and I am experienced in operations, and sales and marketing.”

Started with 3 Locations  – Growing & Learning

“We chose to start with 3 licenses which gave us the potential to open 3 stores.  When we looked at the financial impact of the Sport Clips business model, and spoke to existing owners, it was apparent that we needed 3 sites to be profitable enough for us.”

Gale and Peter’s new venture began in 2010 with lots of training and significant Sport Clips support. “We learned more about their local and national franchise policies, technical concerns, business, marketing, and real estate issues. We interviewed current franchise owners, former owners, and much more.”

“We had applicable skills and experience, we knew ‘best practices’ that were transferable to different businesses, and we accepted that we would be working long hours. We realized there was no such thing as a dumb question and could have gone on much longer asking more and more questions!”

Among the challenges in the hair stylist profession is the availability of licensed stylists who want to cut men’s hair. “We’re always in the hiring, referral and marketing mode, and there’s lots of competition.” To address this, Cohen-DeMarco’s marketing activities include Facebook, advertising, referrals from stylists and clientele, networking, membership and volunteering in local organizations.

Is Franchising for You?

Gale offers important advice as you consider franchising. “Peter’s financial experience has been critical, including his understanding of due diligence required by both franchisor and franchisee.”

Sport Clips gave them a list of current and former franchise owners who could explain the pros and cons of owning a franchise. “Over the past 7 years the business has continued to evolve. We currently face a national shortage of licensed stylists which has become the most limiting factor to growth that we now deal with. Even though we investigated the Sport Clips opportunity for several months, there was no way we could have seen this issue developing. Ultimately, you make the best decision you can with the information you have at hand, and then you dive in and work your heart out!”

“Being financially capable is very important, because it took us three years for our franchises to become profitable.  It’s an expensive learning process, but our success has been rewarding.” Today, the Cohen-DeMarco’s own 6 locations and plan to open 2 more.

To succeed in franchising, Gale offers tips and insights:

  • Lots of research is necessary before making a decision.
  • Being self-directed is important.
  • You should understand finances and requirements in franchising.
  • Do you have good relationships with other people?
  • Would you like being in a store-front business?
  • Do you have lots of time, which is required?
  • Networking in your community is important.
  • Marketing and a positive feedback is critical and ongoing.

And, Gale adds, remember this:

  • People – clients, staff and others – are your most important resource.
  • Don’t just think about money. How can you be the best and contribute to your community? Reciprocity becomes profitability.

Gale Cohen-DeMarco, gcdemarco1@comcast.net