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Monthly Archives: May 2019

8 05, 2019

Big Blue Swim School Partners With Shorewood Development Group For 16-Unit Deal

2019-05-08T15:56:09-04:00May 8th, 2019|Tags: , , , , , |

Nation’s Leading Swim School Franchise’s Newest Franchise Partners Led by Louis Schriber III and Aaron Roth to Bring 10 Locations to Chicagoland, Six More to Twin Cities

CHICAGO — Big Blue Swim School, the nation’s leading swim school franchise, is excited to announce a new partnership with Shorewood Development Group to bring 10 new locations to Chicagoland and an additional six locations to the Minneapolis-St. Paul area.

Shorewood Development Group, a Buffalo Grove, Illinois-based commercial real estate firm specializing in infill retail shopping center development, brings a wealth of relevant experience to the Big Blue Swim School franchise family. Led by Louis Schriber III and Aaron Roth, SDG Swim, LLC’s 16 locations will be managed by Jeff Plazak and Rachel Chavez.

“I was first introduced to Big Blue Swim School when my children attended lessons in Glenview. Being in real estate development, we knew some early investors in the brand and were intrigued,” said Schriber. “Once the Level 5 team got involved with Big Blue, we knew this was of significant interest to us and started pursuing the brand as another business to grow within our Shorewood investment model.”

Added Roth, “My excitement about the opportunity and the brand increased after flying down to Atlanta and meeting the Level 5 team. Their energy, passion and vision for Big Blue Swim School was contagious, and made me a believer of the model, culture and future of the brand.”

Like Big Blue Swim School co-founder Chris DeJong, Schriber has a long history with competitive swimming. Raised on the water in Oshkosh, Wisconsin, swimming has always been a part of his life.

“Growing up both on and in the water, I recognize that not only is water safety extremely important, but also that being a skilled swimmer opens the doors to adventure and fun,” said Schriber. “As a result of always being in the water, I was a natural at swimming. I swam varsity all four years of high school and continued to swim competitively in college for the University of Wisconsin-LaCrosse.”

Fast forward to 2019, and the team at Shorewood Development Group is prepared and excited to tap into its vast knowledge and network in the commercial development space to expand Big Blue Swim School’s presence throughout Chicagoland and into the Twin Cities market.

“We have a deep understanding of the Chicago market and are extremely well-connected here, which gives us confidence in our ability to select the ideal locations for our swim schools,” said Schriber. “Signing on for the exclusive rights to the remaining Chicagoland territory was critical for us to be able to be hands-on and grow our schools to both our and Big Blue’s high standards.”

Thanks to Roth’s roots in Orono, Minnesota, Shorewood Development Group has a strong familiarity with the Minneapolis-St. Paul area and feel that is one of the premier markets in the Midwest for expansion. Coupled with Big Blue Swim School’s analytical ability to identify top markets, the brand’s new franchisees are well-equipped to execute.

“Other than just being my home state, Minnesota is truly an amazing, thriving market full of active, family-oriented people that really focus on their kids,” said Roth. “It also doesn’t hurt that Minnesota is ‘The Land of 10,000 Lakes’ — where people love the outdoors and regularly interact with water, marking swimming a must-have skill. This makes our schools and services very important to the families in the community.”

“Aaron and Louis both have large families, each with five children all under the age of 14. They are intimately familiar with the important role swimming plays in kids’ lives,” said Scott Thompson, Chief Development Officer of Big Blue Swim School. “Their experience as business owners and ability to take existing real estate, envision a totally new product and execute in accordance to that vision are exceptional. They have the same vision for Big Blue Swim School and there’s no doubt in my mind that their locations will be something to behold. Their ability to grow and retain top-tier employees gives us the utmost confidence that our schools will be in great hands with Jeff and Rachel leading the way.”

“We feel confident that our partnership has the necessary market knowledge, analytics and personnel to make the right decisions and get open quickly with the right locations,” Schriber said. “Our immediate goal is to fulfill our commitment to these 16 schools while continuing to evaluate new market options to expand into. We couldn’t be more excited to begin our journey with Big Blue Swim School and feel these 16 schools are just the beginning.”

ABOUT BIG BLUE SWIM SCHOOL

Big Blue Swim School was founded in 2009 by competitive swimmer Chris DeJong. The first location opened in Wilmette, Illinois, followed by Niles, Buffalo Grove and Hoffman Estates. In 2017, Level 5 Capital Partners acquired a majority stake in the brand, and is rolling out an aggressive strategy to grow through franchising to 150 locations by 2020. Big Blue Swim School’s real estate footprint, proprietary technology Lesson Buddy, coupled with its practice of employing full-time child engagement specialists that teach based on a proprietary distance-based swimming methodology sets Big Blue up for long-term success. To learn more about franchise opportunities with Big Blue Swim School, visit http://YourBigMomentStartsHere.com.

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7 05, 2019

FASTSIGNS International, Inc., Targeting Aggressive Growth throughout the Northeast

2019-05-07T16:56:11-04:00May 7th, 2019|Tags: , , , , , |

Award-winning Franchisor Expanding into More Urban, Downtown Markets As Demand for Comprehensive Signage and Visual Communications Solutions Soars

CARROLLTON, Texas — FASTSIGNS International, Inc., franchisor of FASTSIGNS®, the leading sign, graphics and visual communications franchise, announced it is aggressively targeting franchise growth throughout the Northeast, particularly in urban, downtown markets as the demand for comprehensive signage and visual communications solutions continues to grow rapidly.

Over the next few months, FASTSIGNS will open new centers in downtown Mineola/Westbury on Long Island and in White Plains, New York. In 2018, FASTSIGNS opened its first location in downtown Hartford, Connecticut, as well as additional centers in cities like East Brunswick, New Jersey; Patchogue, New York; and South Burlington, Vermont. The downtown Hartford location celebrated its Grand Opening on April 30th.

FASTSIGNS is currently seeking qualified entrepreneurs to grow the brand in other urban areas throughout the Northeast, such as New York City; Buffalo; Meriden, Danbury and Norwalk in Connecticut; Cranston and Providence, Rhode Island; Boston area and Holyoke, Massachusetts; Nashua, New Hampshire; and Portland, Maine, among others.

“FASTSIGNS’ business model is focused on providing custom marketing and graphics solutions for local businesses, so franchisees that operate centers in urban areas are well-positioned to serve the countless organizations right in their backyard,” said Mark Jameson, Executive Vice President of Franchise Support and Development. “Whether a new center, conversion, or co-brand, FASTSIGNS franchisees in these areas continue to experience strong sales and growth.”

Franchisee Shishir Mehta has owned and operated a FASTSIGNS center in Waltham, Massachusetts, for 17 years.

“When I was considering making the transition to be an entrepreneur, franchising made a lot of sense. There’s a proven model, so you’re set up for success,” said Mehta. “I loved FASTSIGNS because of its strong track record, and it was a similar B2B, relationship-focused environment I was used to from having worked in IT sales. I’ve always enjoyed helping customers, and with FASTSIGNS, there’s no limit to how big my business can become. We serve every industry, from foodservice and education to healthcare and finance. The product line is so deep that you can offer so many different solutions to the customer. It’s exciting.”

FASTSIGNS is continuing to grow worldwide with a focus on the Northeastern United States and Southern California, as well as finding master franchisees for Québec, New Zealand, Brazil, North Africa, Southeast Asia, India, Europe, and Latin America. For any existing business looking to expand into this fast-paced market, FASTSIGNS offers co-brand and conversion programs to help owners diversify their product lines and services to meet the growing demand for comprehensive signage and visual communications solutions. FASTSIGNS has helped countless owners of print shops, photography studios, camera stores, embroidery shops, and more, add a FASTSIGNS to their existing business or fully convert their store to a FASTSIGNS franchise. FASTSIGNS franchisees receive ongoing training and support to stay ahead of the competition and exceed the needs of their local business community. Both the co-brand franchise opportunity and conversion can be started with only $15,000 down on the initial franchise fee.

FASTSIGNS is known in the industry for equipping its franchisees with tools vital to securing the ongoing success of each individual location. In 2018, FASTSIGNS announced the launch of its partnership with 1HUDDLE, a workforce-training platform that converts unique training content into science-backed, quick-burst training games that are proven to accelerate workforce productivity. Additionally, FASTSIGNS announced the launch of a special incentive for first responders, including paramedics, emergency medical technicians, police officers, sheriffs, and firefighters, which includes a 50-percent reduction on the franchise fee — a savings of $24,875.

FASTSIGNS International, Inc. was ranked the #1 franchise opportunity in its category and 95 overall on Entrepreneur magazine’s 2019 Franchise 500®, the world’s first, best and most comprehensive franchise ranking. Acknowledged by entrepreneurs and franchisors as a top competitive tool of measurement, the Franchise 500® recognizes FASTSIGNS, the only sign, graphics, and visual communications franchise to be recognized in the top 100, for its exceptional performance in areas including financial strength and stability, growth rate, and brand power. FASTSIGNS also made Franchise Direct‘s list of the Top 100 Franchises 2019 and ranked #2 on this year’s Franchise Gator Top 100 list, both ranking the best franchises for 2019. FASTSIGNS also has been ranked by Franchise Business Review as one of the “Best of the Best” for franchisee satisfaction for the last 10 years. Additionally, FASTSIGNS also was named to Franchise Business Review’s “Innovative Franchises” list in 2017 and a “Best-in-Category” franchise by Franchise Business Review in 2018. In 2019, the Canadian Franchise Association (CFA) awarded FASTSIGNS International, Inc. the Franchisees’ Choice Designation for the seventh consecutive year for its strong relationship with Canadian franchisees, as well as extensive franchisee training and support.

About FASTSIGNS®

FASTSIGNS International, Inc. is the leading sign and visual communications franchisor in North America, and is the worldwide franchisor of more than 700 independently owned and operated FASTSIGNS® centers in nine countries including the United States, Canada, Chile, England, Grand Cayman, Mexico, Saudi Arabia, the United Arab Emirates and Australia (where centers operate as SIGNWAVE®). Locations are slated to open in two additional countries – Malta and Spain – in 2019.

FASTSIGNS locations provide comprehensive signage and visual graphic solutions to help companies of all sizes and across all industries attract more attention, communicate their message, promote their products, help visitors find their way and extend their branding across all of their customer touch points.

FASTSIGNS centers provide architectural and interior decor graphics, fleet vehicle graphics, digital signs and digital signage content, event graphics, displays, banners, posters, ADA signage, safety and identification signs and much more, as well as handle everything from design to project management to installation.

FASTSIGNS International, Inc. is a recipient of many awards, including being ranked the #1 franchise opportunity in its category in Entrepreneur magazine’s Franchise 500 for the past three years, and Best-in-Category in the business services sector on Franchise Business Review’s list of the top 200 franchises for multiple years.

Learn more about sign and visual graphic solutions or find a location at fastsigns.com.

Follow the brand on LinkedIn at linkedin.com/company/fastsigns, Twitter @FASTSIGNS or Facebook at facebook.com/FASTSIGNS.

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7 05, 2019

National Survey Reveals Areas in the Home Most People Forget to Clean

2019-05-07T16:48:57-04:00May 7th, 2019|Tags: , , , , |

The Cleaning Authority polls homeowners and cleaning experts on consumer cleaning habits

COLUMBIA, Md. — With spring in full swing, consumers across the country are continuing their yearly spring cleaning tasks and while the kitchen, floors and countertops are getting some much-needed attention, other areas around the home aren’t so lucky. To shed light on those neglected areas and educate consumers on how to clean them,  The Cleaning Authority commissioned a national survey asking homeowners what areas they most often overlook when cleaning. The company also surveyed its cleaning experts to see the areas they believe to be most overlooked, based on what they notice before beginning service in a home.

The results of the survey, which was conducted by Google Consumer Surveys, showed that nearly 30% of homeowners forget to clean ceiling fans and light fixtures, while 50% of cleaning experts said most baseboards go untouched.

“The survey gave us great insight that broadened our understanding of consumer cleaning habits and reinforced the need for professional services,” said Leanne Stapf, chief operating officer at The Cleaning Authority. “Dust, dirt and grime can be harder to see in certain spots, so it didn’t come as a surprise to see baseboards, as well as ceiling fans and light fixtures, among the most popular responses from both groups. It’s easy to forget to clean these areas when the buildup is less obvious, unless you know to look for it.”

Additional data from the survey found that curtains, blinds and behind the toilet are among the areas most people intentionally avoid cleaning, with more than 50% of consumers saying they skip over these spots because cleaning them is too difficult or not a priority.

“Cleaning is a very daunting task for most people, but there are a variety of hacks they can use in between professional cleans to make the process more simple and enjoyable. You just have to know what areas to focus on and find the methods that work best for you,” said Stapf.

The Cleaning Authority has put together the ultimate spring cleaning guide to make the spring cleaning process easier for consumers and is offering the following expert tips to help them clean the forgotten and more difficult areas around the home:

  • Baseboards: The quickest method for removing dust from baseboards is to use the brush attachment on your vacuum. To remove any scuff marks, gently scrub the baseboards with a cleaning sponge like a Mr. Clean Magic Eraser.
  • Curtains: A simple way to freshen up curtains in between washes is to use a vacuum. Use the vacuum’s brush extension to remove any dust or debris from the curtains.
  • Blinds: Grab a pair of tongs, wrap two microfiber cloths around them and fasten with rubber bands. Clasp the tongs around each blind and drag across to remove dust.
  • Ceiling fan: Instead of using a rag to clean the fan, try using a pillowcase. Slip it in between the fan blades and swipe one at a time. You can then just throw your pillowcase into the washing machine.
  • Behind the toilet: Given the hard to reach crevices and grout lines located behind the toilet, it’s beneficial to purchase an extendable scrubber. This eliminates any back strain or bruised knees from trying to fit behind the toilet. When using the scrubber, dip into a solution of warm water, ¼ cup vinegar and 1 tablespoon of dish soap for a thorough clean.

More information on The Cleaning Authority is available at www.thecleaningauthority.com. Follow The Cleaning Authority on Facebook, Twitter and Instagram for the latest news and trends.

About The Cleaning Authority

Founded in 1977, The Cleaning Authority currently operates more than 225 locations across North America. As one of the only cleaning companies to use all environmentally responsible products, The Cleaning Authority places an emphasis on protecting the environment while simultaneously providing consumers with a thorough clean. The Cleaning Authority utilizes its own Detail-Clean Rotation System, which focuses on the four major areas of the home and has been proven effective in more than 25 million cleans. For more information, visit https://www.thecleaningauthority.com and http://franchise.thecleaningauthority.com.

About Authority Brands

Headquartered in Columbia, Maryland, Authority Brands, LLC is the parent company of seven leading home service franchisors, America’s Swimming Pool Company, Benjamin Franklin Plumbing, The Cleaning Authority, Homewatch CareGivers, Mister Sparky electric, Mosquito Squad, and One Hour Heating and Air Conditioning. Together, these brands provide home services through more than 1675 locations operated by 920 franchise owners in the U.S., Canada, Latin America, Kenya and Indonesia. Authority Brands is dedicated to supporting individual franchisee growth through providing strong marketing, technology and operational support.

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6 05, 2019

AtWork Group Opens New Location in Houston

2019-05-06T16:34:40-04:00May 6th, 2019|Tags: , , , , |

Leading staffing franchise expands national footprint into Texas’ hub city

HOUSTON — AtWork Group, one of the nation’s largest and fastest-growing staffing franchises, announced today the opening of its new office in Houston, its only location in the city. The new location will offer staffing solutions for the communities of the greater Houston area and Harris County.

“We are excited to see AtWork continue to expand in Texas’ most populous city,” said Jason Leverant, president and COO of AtWork Group. “America’s fourth most populated city is also one of the best staffing markets and we’re eager to bring our best-in-industry service to Houston. By coupling a strong, local franchise owner with the experience, tools and resources of AtWork’s national franchise network, clients and associates alike will be able to quickly realize why AtWork has been named a Best of Staffing award winner for multiple and consecutive years.”

The new location will be led by General Manager Mark Johnson, who spent more than 20 years in the United States Air Force in personnel. The office has significant ties to the Houston community and is owned by a University of Houston alumni and current UH Bauer School of Business Board member. The team is eager to reinvest in the Houston area, providing new opportunities for the local economy.

The new office is located at 5959 Westheimer Road, Suite 151. It will provide staffing assistance to the professional, clerical, light industrial and sports industries, facilitating temporary, temp-to-hire and full-time placements. The business may be reached at 346-802-4097.

AtWork Group was recently ranked in: Forbes’ America’s Best Executive Recruiting Firms and America’s Best Professional Recruiting Firms, Entrepreneur Magazine’s Franchise 500®, Franchise Times’ Fast & Serious, Franchise Times’ Top 200+ and Inc. Magazine’s Inc. 5000.

For more information please visit https://www.atwork.com.

About AtWork Group

AtWork Group is an industry leading staffing franchise, based in Knoxville, Tennessee. Providing temporary, temp-to-hire and direct-hire services across industries, AtWork specializes in three lines of service – AtWork Personnel, AtWork Medical and AtWork Search. There are 75 locations across 27 states, with the goal to reach 325 by 2029. AtWork franchisees execute region-based decisions that make a difference in their local economies to strengthen their communities. The company facilitated 50,000 hires last year. For more information about franchise opportunities, visit www.AtWorkfranchise.com.

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6 05, 2019

It’s never too late to pursue your dreams

2019-05-06T13:10:44-04:00May 6th, 2019|

36669394_MWhen you’re young, it seems like time inches forward. Every day is a year and every year an eternity.

However, this concept of time quickly changes once we enter the workforce, start families and begin working toward our life goals. One moment you’re graduating college and celebrating with friends, the next you’re blowing out the candles at your 45 birthday party and wondering where all of the time went.

Too often men and women alike put their dreams on the back burner, hoping at some point in the future they’ll be able to dedicate their time and energy to the things they love. While this is nice in concept, life is too short to assume you’ll eventually make time for the things you truly love. Why wait when you can take action today?

If you’ve always dreamed of owning your own business and are tired of running the 9 to 5 rat race, now is the perfect time to consider pursuing a franchise business opportunity. Hundreds of successful entrepreneurs didn’t even start their businesses until after their 50th birthday, some even later.

What we’re trying to say is this: age is just a number and everyone deserves to be happy. If your current career trajectory doesn’t get you excited, set aside some time to research franchising opportunities. No matter your age, now is the time to act. Will you heed the call?

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2 05, 2019

When a Franchisor Goes Dark…

2019-05-03T14:53:02-04:00May 2nd, 2019|Tags: , , , , , |

When a Franchisor Goes Dark…

by Jason Power

Certain states require that franchisors register their offerings before they can sell a franchise there. Those same states then require the franchisors to file annual renewals in order to continue selling franchises.

So what happens when you’re prepared to buy a franchise but the franchisor’s state registration hasn’t been renewed yet?

First off, be aware that most franchisors are required to update their franchise disclosure documents in the first few months of each year depending on when their fiscal year ends. This means that these registration states are flooded with documents to review—both renewal applications and new FDDs.

Although the employees in these states work tirelessly to review applications, the process takes time. When franchisors do not file their renewal applications early enough, they may have to stop selling franchises, or “go dark,” until their renewal is approved. (Note that going dark is not a negative reflection on the franchise, but it can delay a sale and frustrate everyone involved.)

What can you do when your franchisor goes dark? Don’t panic. This situation can be a great opportunity for you to reflect on the franchise, call more franchisees for validation, talk in more detail with the franchisor, and work with an accountant or franchise attorney to analyze the opportunity. Sometimes the delay may also present an opportunity to negotiate some terms in the franchise agreement.

What to expect
Also know that this is a process and that many franchisors have this issue each year due to delays in gathering information. You should discuss with the franchisor what, if any, changes are being made to the franchise disclosure document and franchise agreement. A franchisor often will increase fees or change the size of territories during these annual updates. If the expected terms are less favorable than what you’ve already been shown, ask the franchisor to give you the more favorable terms.

Once the state approves the renewal application, the franchisor will be required to send you the new franchise disclosure document and franchise agreement. Usually you will be asked to sign a new FDD receipt and wait for the required disclosure period to lapse before you can sign the new franchise agreement, but some states have exceptions to this requirement. For instance, California and New York will allow franchisors to send a copy of the franchise disclosure document as long as they have filed for renewal, include certain disclaimers, and follow other directions required by the states.

This is in no way a comprehensive explanation of the requirements for all registration states. If you are involved in a pending franchise sale with a franchisor that has gone dark, the best thing you can do is talk with the franchisor about its process during this time period and talk with a franchise attorney who can guide you through the few weeks until the franchisor’s application is renewed.

Jason Power exclusively practices franchise law as a partner at Barber Power Law Group in Charlotte, North Carolina. He has assisted hundreds of franchisees with their FDDs and buying into franchises all over the country. Power also represents emerging and established franchisors. For more information contact Power at jason@franchise.law or call 980-202-5679. Visit www.barberpowerlaw.com.

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2 05, 2019

Franchising and the E-2 Investor Visa

2019-05-03T15:00:36-04:00May 2nd, 2019|Tags: , , , , , |

Franchising and the E-2 Investor Visa

by Jerry Rieder
Certified Franchise Consultant

What is one of the best ways to secure an E-2 Investor Visa? Franchising. The systems, structure, training, and support that
franchises offer create a winning formula for those seeking to immigrate to the United States. Because franchised businesses have a high success rate, E-2 Visa applications are more likely to be approved and renewed.

Defining an E-2 Investor Visa
The E-2 Investor Visa is a type of U.S. immigration visa available to citizens or nationals of one of 80 countries that have treaties with the United States. The E-2 Investor Visa allows an individual to enter and work in the United States based on an investment he or she will control while inside the United States. The E-2 Investor Visa is good for two to five years based on the country of origin and can be extended indefinitely provided the applicant’s business/franchise remains viable.

The investment must be “substantial” (defined later) as stated in U.S. Citizenship and Immigration Services (USCIS) E-2 investor requirements.

Investment visas are available only to citizens of the specified treaty countries. An E-2 visa allows for the applicant to include immediate family and non-investor employees of the business if those involved are of the same nationality as the investor and are destined for a role in the U.S. business.

How to qualify
Following are the main criteria for obtaining an E-2 Investor Visa.

Covered by treaty: The applicant must prove that there is a valid commerce and navigation treaty between his country of
citizenship and the United States. Next, the investor must prove that the funds that are being used to invest in the enterprise were in the possession and control of a national or nationals of a treaty country and were lawfully acquired.

Investment size: The E-2 visa does not require a minimum investment amount. Instead the investment must be substantial in
relation to the total cost of the business. While this is not defined by the USCIS, the investment is generally recommended to be $100,000 or more.

Investment status: At the time of the application, the foreign national applicant must have either already invested in the
enterprise/franchise or have taken steps toward investment. This may include signing leases or contracts, purchasing equipment, or incorporating a business. The applicant will be required to make the investment without knowing whether the E-2 visa will be granted unless an escrow agreement is utilized with the sole contingency being the approval of the E-2 visa. The funds must be irrevocably committed to the business, however.

Enterprise/franchise is a real, operating, non-marginal commercial enterprise: A marginal business is an operation that may make enough money to support the investor and his or her family but is not necessarily a thriving operation. To prove that the business is a real, operating, nonmarginal commercial enterprise, the applicant must present a five-year plan showing how the business will operate, earn a profit, grow, and contribute to the economy. Generally the business will also need to hire employees in order to meet the interpretation of the marginality requirement from USCIS or the consulate.

Applicant is able to develop and direct the enterprise/franchise: Finally, an applicant must show that the investment is active and that he or she will directly participate in the operation of the commercial enterprise.

With these criteria in mind, the advantages of buying a franchise as the investment vehicle for the E-2 Investor Visa process are evident, particularly when it comes to the last two requirements. A franchise is part of an existing business model that generally has an already established record of success in the United States. An E-2 visa consular officer who will ultimately review the applicant’s case is typically familiar with a franchise and is inclined to treat an investment in a franchise as a real, operating, non-marginal commercial enterprise.

Unlike other types of businesses, a franchise is typically a more traditional investment, with a storefront, inventory, and assets/equipment. The E-2 consular officer evaluating the application will be less inclined to see this as a speculative business, be more likely to approve this type of business, and ultimately the candidate’s E-2 visa.

In addition, because franchising agreements typically require oversight and guidance from the franchisor, it may be easier for foreign nationals to meet the requirement of being in a position to develop and direct the enterprise/franchise.

Jerry Rieder, CFC, has been a franchise consultant since 2012 and is an E-2 Investor Visa expert. He became part of the FranServe Training and Development Team in 2013 and has helped a large number of consultants become successful. He serves as a trainer, a mentor, and also as a facilitator for FranServe’s Power Teams. Contact Jerry at jerry@franserve.com.

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2 05, 2019

Nine Alphagraphics Locations In The Phoenix Metro Area Were Ranked Among The 2018 Printing News Top 100 Quick And Small Commercial Printers List

2019-05-02T18:32:39-04:00May 2nd, 2019|Tags: , , , , |

This Investment Further Underscores the Company’s Commitment to Growth

LAKEWOOD, Colo. — AlphaGraphics, Inc. – a worldwide print and marketing franchise – announced today that it has acquired a majority interest in one of its franchisees, Wet Ink Corporation, which operates three centers located in the Greater Denver Metro area. The centers, located in downtown Denver, Arvada and Golden will continue to be operated by long-standing founder and operator Edward Rothschild as part of a strategic growth initiative for the brand.

Mr. Rothschild is enthusiastic about the collaboration and working closely with AlphaGraphics under this new structure. “I’m excited about the opportunity to continue with the brand through continued growth of these three centers,” Rothschild said, “and – more importantly – to be able to partner in new ways with AlphaGraphics Headquarters on strategic initiatives and growth programs that can benefit and help drive growth for the entire AlphaGraphics network.”  Ryan Farris, President and COO, added, “I could not be more excited about this acquisition. AlphaGraphics has aggressive growth targets and this investment, combined with Ed’s continued leadership, will contribute to our achievement of those goals and to continue to drive the growth of this great brand.”  Paolo Fiorelli, AlphaGraphics’ CEO, commented, “This investment represents a further commitment to the AlphaGraphics brand and our confidence in its continued growth, and will also allow us additional ways to have real-time, up close insight into market demands.” 

About AlphaGraphics

AlphaGraphics, Inc., with more than 250 locations in 5 countries, is one of the largest U.S.-based networks of locally-owned and operated Business Centers offering a complete range of print, visual communications, and marketing products and solutions including: full-service digital, offset, and large format printing; design services; mailing; one-to-one marketing solutions; promotional products; web to print solutions. For more information about AlphaGraphics services and/or franchise opportunities, visit  www.alphagraphics.com.

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2 05, 2019

Bank on It!

2019-05-03T15:10:28-04:00May 2nd, 2019|Tags: , , , , , |

Bank on It!

Find help landing your SBA loan

by Shay Mora

Even a low-cost franchise can require $100,000 to get up and running, and some need considerably more. Entrepreneurs often must line up financing for their start-ups or other major expenses. Many of them seek Small Business Administration loans but find the process challenging.

One source for assistance is FranFund, which has used its portfolio of top SBA lenders and SBA Express/7(a) Small Loan programs to help hundreds of new and existing franchisees receive funding. These loans are ideal for service-based businesses requiring $150,000 or less for a start-up, expansion, or working capital loan; some lenders go as high as $350,000.

Although the fast-tracking of SBA Express attracts many borrowers, the specifics of these loans often create confusion over eligibility, requirements, and terms. Following are answers to common questions about SBA Express/7(a) Small Loans.

Are all SBA Express Loans the same?
Yes. All SBA Express loans follow the same SBA rulebook regardless of lender. Many lenders advertise an SBA Express program, but most actually submit those loans as SBA 7(a) Small Loans to secure a larger SBA guaranty (up to 85% vs. 50% Express) as additional security because these typically don’t require personal collateral. Also, with the SBA guaranteeing 85% up to a loan amount of $150,000 and only 75% for loans from $150,000 to $350,000, many banks cap their programs at $150,000.

Where can I get an SBA Express/7(a) Small Loan?
Banks can be selective about the industries they work with, number of startups they lend to, and kinds of business costs they cover. Because it is challenging for borrowers to find a bank that is a good fit for their specific franchise, it’s wise to work with a lending consultant such as FranFund, which specializes in SBA loans and can match franchisees with the right lender.

Can I receive an SBA Express/7(a) Small Loan if I have bad credit?
Banks look at business owners’ personal credit score (FICO) and small business credit score (SBSS). If your personal credit score is below 680, you’ll need a good explanation and good liquidity/income. The SBSS scores a small business by its likelihood of making payments on time. You’ll need an SBSS score of 165+. A past bankruptcy, short sale, or judgment is not an automatic disqualifier as long as it is at least 3 years old and you’ve re-established clean credit (680-plus). You must not have any open collections, past-due student loans, unpaid child support, or tax liens.

Is a cash injection required?
If you have a business that has operated longer than two years and is successful, then a cash injection typically isn’t required. For start-ups, you can expect to contribute 10% to 20% of personal funds, meaning you can’t use borrowed funds such as a home equity line of credit or personal loan. Funds from a 401(k) or IRA rollover can satisfy this requirement, however.

How is the loan secured?
A lien on your business assets secures the loan. No personal collateral is needed, but a personal guaranty (an individual’s legal promise to repay the debt) is required from each owner with 20% or more ownership of the business as well as spouses, if their assets and/or income will be used to qualify.

What’s needed to close the loan?
The business should be within 60 days from generating revenue, which means these items need to be complete:

  • Training certificate (required by some lenders).
  • Business insurance.
  • Signed franchise agreement and SBA franchise addendum.
  • Signed lease agreement (if applicable) and the bank’s landlord consent waiver.
  • Business licenses/permits required by state and county.
  • Proof of equity injection (down payment).
  • Additional requirements if the business has a build-out.

How soon will I receive funds?
Funding can occur five to 10 days after all closing requirements above are completed. This allows time for SBA document completion, bank review and approval, and final signatures on the closing documents.

FranFund helps franchisees put the right funding strategy in place as a framework for long-term success. With ex-bankers on its team, quick preapprovals, and a 99% loan approval rate, FranFund makes the lending process as painless as possible.

Want to learn more about SBA loans and other financing options? FranFund designs all-in-one funding plans that grow with your franchise and set you up for long-term success. Whether you are considering leaving your current job to start a new venture or if you want to expand your existing operation, we are here to help. Get started today at bit.ly/frandfund-fd or email info@franfund.com.

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2 05, 2019

Dig Into Due Diligence

2019-05-03T15:21:35-04:00May 2nd, 2019|Tags: , , , , |

Woman on Phone

Dig Into Due Diligence

by Diana Capirano
Certified Franchise Consultant

When exploring a resale, the level of due diligence will be driven by the complexity of the business model and how the owner is performing. Evaluation of resales must be comprehensive, even granular to mitigate risk. Although franchise systems are the same, owners are not, which leads to a great degree of variability in financial and operational performance.

A holistic approach is best in assessing the overall health of the business. Many buyers think they just need to evaluate financials. Not so! If you’re not prepared to ask the how and why behind the numbers, you may miss a whole lot more.

Following are the 3 most important categories and items that are fundamental in disclosure.

Financial
Standard disclosure is the past three years’ tax returns and corresponding profit-and-loss statements (P&Ls) and balance sheets. Also request current YTD (Year-to-Date) information. Tax returns tend to be of most value because they are holistic. Make sure the financials are verifiable or reviewed by a CPA as they are not audited. In some cases, a cash-flow analysis may be available. If not, view bank statements to verify money in and money out.

  • If the business carries accounts receivable (AR), you’ll need an AR aging report to see money that’s due, collection trends, and the largest outstanding AR sources considered an asset in the purchase that may not attach to the sale.
  • A current asset list should be documented in the tax returns if they are still being depreciated. These items may be cars, equipment, computers, furniture, etc. Get an updated list from the seller, and an inspection should occur later in the process.
  • Other supporting information will be required for owner salaries or distributions; adjustments to earnings before interest, tax, depreciation and amortization (EBITDA), and any irregular items that don’t really attach to running the business. These should be discussed with the seller as they were discretionary, not necessary (examples: extravagant staff party or personal expenditures). These numbers will help you validate the Seller Discretionary Earnings (SDE), which is significant because some sellers set their asking price based on a multiple of the SDE.

Operational
Leases, organizational charts, contracts, price lists, payroll, staff records, third-party companies utilized, and a review of SOP are just a few on my checklist. The more complex the business model, the more items you can expect to dig into.

Compliance/Legal
You’ll need to verify the business license(s), insurance policies, lawsuits/claims, liens, and other licensures (if required). Even if not planning a stock sale, any litigation is important as it can speak to the reputation of the brand name or future financial vulnerabilities. Businesses related to health and the trades tend to have more regulations. Make sure you check federal, state, and local requirements to operate this business. Verify that the existing business has been complying and is in good standing through past surveys or copies of licenses.

Opportunity Value

This is more about you than the seller. It’s how you can improve the top and bottom lines. Financials are a great indication of how the current owner is operating but not how you will run business. For example, if the seller has been in business for two to four years and revenue is declining rather than growing—why? This is a prime time for a great growth trajectory. For an owner after 10-plus years, declining sales may indicate burnout, not utilizing new or updated franchise processes, or in some cases, the competitive landscape changed and the owner did not adapt. Good data does not lie, and intangibles are harder to value but just as valuable!

Don’t be afraid if your due diligence doesn’t reveal great results. They may serve you well as leverage in negotiating. The nightmare would be not knowing the real deal and entering blindly into a sale.

 

Diana Capirano, CFC, has an expansive career which includes corporate and franchise sales and development, marketing and operations, merger and acquisitions, structuring and negotiations as well as business ownership. As a highly-respected consultant and mentor, Diana espouses a profound commitment to help prospective business owners and investors understand and navigate the process of deciding on a franchise business. Contact Diana at 941-999-0095, email diana@focusfranchise.com, or visit http://www.focusfranchise.com.

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