IFE Offers Interesting Look at the Future of Franchising (updated)

June 28th, 2013

For the second straight year the annual International Franchise Expo took place in New York City from June 20 – 22, 2013, and it seemed even bigger and better than ever! This post highlights interesting young franchisors on display at the franchise expo.

One aspect of the Expo that is notably improved is the depth of seminar and educational offerings. I attended a seminar called “Maintaining Brand Standards When Franchising”, presented by Mark Siebert, CEO of the iFranchise Group of franchising consultants and by Harold Kestenbaum, a senior attorney from Long Island. They provided some great “war stories,” but the gist was Siebert’s “Four Pillars of Quality Control,” which are (1) Franchisee Selection, (2) Documentation & Training Tools, (3) Support, and (4) Compliance Program backed by Legal Documents. The most memorable “punch line” was Siebert’s: franchisors are generally better if they choose franchisees who have been married for a long time, because “they can handle pain.”

The exhibit hall featured many well-known large franchisors such as Choice Hotels and 7-Eleven. However, as a counselor for emerging franchisors and for many franchisees of emerging systems, I always find innovative newer brands to be interesting. Here are a few that intrigued me, with the proviso that none of the descriptions are an endorsement of the franchise:

Restoration 1: tested by handling flood, water and mold damage remediation in the very busy south Florida area, this franchise combines high-quality restoration services with unique marketing methods to differentiate itself from incumbants in this industry such as ServiceMaster and ServPro. It also offers large exclusive territories not available from the established restoration services franchisors.

America’s Taco Shop: an authentic Mexican fast casual restaurant founded by America Corrales Bortin, who is originally from Culiachán, Sinaloa, Mexico. This is a repeat from last year, but their food is incredibly great! I once again talked with the founder’s husband Terry who told me about their steady expansion from Arizona. They are owned by Kahala Corp., which is a highly experienced franchisor with a strong team for site selection and location development.

Ping Pong Dim Sum: an apparently hip, upscale version of the traditional Chinese version of “tapas,” with an interesting mix of teas and mixed drinks. There are company owned locations in Washington D.C. (Dupont Corner and Chinatown) plus in London and Dubai.

Cooperstown Connection: a sports apparel and souvenir shop founded in Cooperstown, New York, the home of the National Baseball Hall of Fame. As a baseball fan I like the name, which this franchisor has registered as a trademark. When I asked why there would be an advantage to operating this store, as opposed to many other sports apparel shops, the franchise seller claimed to have a wide variety of custom products as well as strong buying power. Prospects should put them to the test on those selling points!

CPR Cell Phone Repair: Getting quality service at stores that focus on selling smart phones and tablets is not a pleasant experience, and the demand and need for repair of mobile devices just keeps growing. I have no idea the quality of service provided at CPR stores, but this franchise seems intriguing because of the name and the need.

Taziki’s Cafe: a fast casual Greek and Mediterranean Café from Birmingham, Alabama (not a typo). The youthful founders, who definitely sound like Alabama natives, honeymooned in Greece in 1998 and decided to imitate their favorite café when they returned. The franchisor claims average store level gross sales of $1.45 million and average “gross profit” of $502,000.

Grade Power Learning: an off-shoot of the well-established Canadian tutoring chain Oxford Learning, this new U.S. competitor is being franchised by the same team that runs the Minuteman Press franchise system. The company’s literature says, “Our cognitive approach to learning, designed by educational experts, is based on proven scientific research into how children actually learn. Learning is not about memorizing facts. It’s about knowing, really understanding, how to integrate and retain new information.” While this competes in a crowded supplemental education field, the need for this type of service continues to be great.

Web XL: a website developer with a twist – focused on creating efficient e-Commerce and payment gateway solutions, along with Internet marketing support, on a monthly plan basis. While anyone can make a website, if this company really provides efficient e-Commerce solutions, then affiliating with them may be a great opportunity for a good salesperson. The franchisor offers “no money down” one year financing on the Initial Franchise Fee.

Froyo World: yes, I know, what’s interesting about another self-serve frozen yogurt chain? This one’s flavors are unique and the quality is truly outstanding, the most distinctive I’ve tasted.

Bed Bug Chasers – could be an excellent add-on to pest management or disaster restoration.

Churro Mania – mall food court or small location dessert business, specializing in Mexican Churro products, which given U.S. demographics only figure to get more popular!

If you decide to pursue these opportunities or a different one, we stand ready to assist you with due diligence, evaluation of the franchise offering, and contract negotiation.

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