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Opportunities to be your own boss with a tried and true business are hot

OPPORTUNITIES TO BE YOUR OWN BOSS WITH A TRIED AND TRUE BUSINESS ARE HOT

 

Published by the Indianapolis Star

By Dana Hunsinger Benbow

Apr 24,2011

 

They deal in sandwiches and recycled batteries. They whip up loaded meat pizzas and fill new neighbors' mailboxes with packets of coupons.

 

They're all franchise companies popping up in Indianapolis, changing the retail landscape at a time when franchising is only expected to get hotter.

And why wouldn't it?

 

For young businesspeople, laid-off professionals, boomers not ready to retire and career switchers, the franchise business model makes perfect sense.

 

Take a proven company that's done all the homework for you and copy it, yet still feel like a real entrepreneur.

 

"We like to say you're going into business for yourself but not by yourself," said Alisa Harrison, with the International Franchise Association. "It's a good place to be right now. We expect franchising will continue to grow at a faster rate than other business segments."

 

It already has. In the past decade, the industry has seen 40 percent growth.

 

This year, sales are expected to jump to $740 billion, up 13 percent from 2007. And the total number of franchise establishments is expected to return to pre-recession levels of 785,000 after dropping to 763,000 during the economic crisis.

 

Take a look at four franchise companies in various industries and stages of franchising, all with an eye on Indianapolis.

 

The veteran

For Susan Manwaring, opening a Batteries Plus store in Fort Wayne nearly 20 years ago was a definite gamble.

 

After all, she had the Wisconsin-based company's first-ever franchise store.

 

"The company itself was a startup at the time, and there was a lot of risk involved," Manwaring said. "I took a leap of faith that they were going to do what they said they would do. They haven't let me down."

Today, she has nine stores, including five in the Indianapolis area. Batteries Plus has 420 franchised locations.

The company has just 30 corporate-owned stores and sees franchising locations as a smart business strategy.

"From a corporate perspective, you can many times create more locations and brand awareness by deploying to a franchise," said John Twist, vice president of franchise and business development.

"Franchising has helped us grow very steadily even in the face of a very difficult economic environment."

The store, which recycles and sells batteries, is a concept that capitalizes on a rapidly growing technological world. Batteries are everywhere.

"It seemed like an industry that was only going to grow," Manwaring said. "And it has, and it will."

 

The up-and-comer

He spent his 20s in the buttoned-up world of commercial real estate working on the East Coast on big-name accounts such as CVS.

Then the entrepreneurial spirit he seemed born with hit him.

"I knew I wanted to venture out on my own and start my own company," said Courtney Galyan, whose family founded Galyan's Trading Co., a chain of sporting goods stores that was sold in 2004. "I wasn't really in the business of wanting to reinvent the wheel in starting a new company from scratch."

So he started researching franchises and found a company that fit him perfectly -- Marco's Pizza.

Today, he has one Marco's open in Indianapolis, with a second location set to open this summer.

With franchising, he said he has something else, too.

"You have a set of systems you can implement into your own business," said Galyan, 29, who signed a 10-store development agreement with the Toledo, Ohio-based company. "It's kind of a security blanket because you don't go through all the pitfalls of doing your own startup."

After all, starting a company takes skills in operations, marketing, advertising, support, real estate, construction -- and more.

"There's not a reason in the world anybody would be an expert in all that," said Harold Patrick with Circle City Hospitality, the Marco's developer in Central Indiana. "With franchising you avoid all those 'I got yas.' You have a proven system and a track record you already know works."

And Galyan said he has another proven system: his dad, Pat, who ran Galyan's for nearly 30 years.

"My dad is my consultant," Galyan said. "I continue to learn skills from him every day."

 

The rookie

 

He's a lifelong military guy. Not a lot of retail experience. Not much time spent in the business world.

But Chuck Brewer probably knows his business -- Potbelly Sandwich Shop -- just about as well as anyone.

That's because right behind his house in Chicago was a Potbelly shop. Every day after school, he would take his young son there to drink a chocolate milkshake together.

"That's my sandwich shop, and I love it," said Brewer, who will open Indianapolis' first Potbelly store on Monument Circle by early May. "I fell in love with the brand."

And Potbelly fell in love with Indianapolis.

After all, the company has more than 200 corporate shops but is new to franchising. Brewer's store is only the third franchise location.

"We targeted Indianapolis because we believe there is a cult and a core group of Potbelly customers in that marketplace," said Mike Walters, franchise zone manager. "We are not in an immediate rush to say we need to have 1,000 of these by tomorrow."

For Brewer, having just one shop is a dream for him.

"I've always wanted to create my own business. I've always wanted to be my own boss," said Brewer, who likes the flexibility franchising gives him to spend time with his son. "I love this idea of bringing that neighborhood tradition to Indianapolis."

And after 20 years in the U.S. Marine Corps, he hasn't a worry in the world about running his shop.

"At the end of the day, I'm a good leader," he said. "I may not have a long history in running restaurants, but I'm a good operations guy."

 

On the lookout

Indianapolis may not have a Welcomemat Services franchise yet, but its founder is ready to move in as quickly as possible.

After all, 5,000 to 6,000 families relocate to the Indianapolis area each month. "Indianapolis looks exactly like a place where we would be successful," said Brian Mattingly, president and founder.

Why? Well, Welcomemat is a company that delivers gift certificate packages filled with invitations, offers and coupons to new residents that can be redeemed at local businesses.

But it's not one of those cheesy coupon packages. Welcomemat uses sophisticated technology to barcode each invitation, which allows businesses to track responses to their marketing dollar and gives insight into people and moving trends in the area.

Launched in 2003, the company just started franchising at the end of 2010. It has 12 company-owned stores and plans to open 15 franchise locations this year.

Could one be in Indianapolis?

"We sure hope so," said Mattingly, who said he is currently seeking an Indianapolis franchisee.

Who that might be is anybody's guess because franchising appeals to all sorts of people, he said.

"It really runs the gamut," he said. "We see a lot of people who have been in corporate sales. A lot of people from the real estate world. Moms looking to get back in the workforce. We see couples."

But it all comes down to someone who is good at getting out in the neighborhood and selling the business, someone who is a self-starter, can work independently and likes to work from home.

And because franchisees run the business from their homes, there is another perk to the company -- a lower cost.

Welcomemat franchises range from $49,900 to $77,050.

 

 

 

 
Marketing Strategies

Welcomemat Services has been recognized time and time again by the media. Mentions and feature stories have been included in:

• Inside Arts Magazine
• American Salon Magazine
• Beverage Retailer Magazine
• Pizza Marketing Quarterly
• American Spa Magazine
• Wash Street Journal
• Auto Services Operator Magazine
• Charlotte Business Journal
• Among many others…