Franchise of the Month – March 2022
This month’s franchise of the month is actually a manufacturing business with a direct to consumer product. The business was started in 1958, and there are still 5 company stores operating successfully today.
The size of this industry is over 17 billion dollars in annual sales. And while the competition is everywhere, no one is doing it the way this company does! There’s a very strong differentiation.
Financial Information
- Franchise fee: $40,000
- Investment range: $109,350 – $408,183 usually coming in at the mid range and that includes the franchise fee and working capital
Description of the business
This product has been sold direct-to-consumer for over 60 years, so this concept benefits the Franchisee with a higher profit margin and benefits the customer with lower prices. You are the local expert, and will help your customer find the right comfort to meet that customer’s needs, no more compromising. And with your Lifetime Comfort Guarantee that you offer you will dispel any doubts the customer may have with the product they choose. No other competitor can offer this level of personalized service and guarantee.
Key features and competitive advantages
- Strong Item 19
- Unique Go-To-Market Strategy
- Requires Few Employees
- Low Capital Requirements
- Stable Supply Chain
- Robust Training and Support
- High Percentage of Franchisee Renewal – many owners have been in the system 20 and even 30 years – with next generation owners now
Day in the life of a franchisee
At the center of our Franchisee’s daily activities is managing their business. This is the most important part of being a successful business owner.
Single-unit operators will spend most of their time working in the store. This includes selling to customers, providing service, basic bookkeeping, and actively marketing using tools the franchisor provides you.
Multi-unit operators do a lot of the same things single-unit operators do. However, less time is spent on personally doing the day-to-day activities, and more time is spent on managing and coaching the people that are doing the daily activities. Many of their multi-unit operators started as single-unit operators and grew their businesses.
Background of successful franchisees
Their most successful franchisees are owner-operators that take a hands-on approach and want to be the face of the brand in their community. They also enjoy problem-solving and have some business or sales experience.
Number and type of employees
All your team members are cross-trained, which reduces the required number of full-time employees (FTE). The Owner/Operator is one of the FTEs in the below examples.
- One unit franchise (Retail/Assembly Store)
- Showroom = 1.5 FTE
- Delivery & Production = 2 FTE
- Total = 3.5 FTE
- Two unit franchisee (Retail/Assembly Store and Satellite Store)
- Showroom = 3 FTE
- Delivery & Production = 3 FTE
- Total = 6 FTE
- Three unit franchisee (Retail/Assembly Store and Two Satellite Stores)
- Showroom = 4.5 FTE
- Delivery & Production = 4 FTE
- Total = 8.5 FTE
Ongoing support
Over their 60 year history, the company has developed many integrated tools that offer franchisees an easy and reliable way to understand what is happening within their business so they can make critical decisions with confidence.
The Franchise Support team will provide in-depth training on a wide range of topics, including how to manage teams, operate your business, utilize their state-of-the-art ERP system, and follow best practices for managing delivery and inventory. In addition to ongoing support and training, the Franchise Support team will be dispatched to assist with store openings, ongoing support, quarterly onsite visits, and phone calls. They also can assist with developing strategic goals, as well as recruiting and training new team members.
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