Entrepreneurs use franchises as framework

Published by The Tennessean

By Josh Adams

Date: August 5, 2011

For many, the time is right as banks thaw lending…

After taking a few years to raise her kids, Kathy Suttle was ready to return to work.

She was interested in going into business for herself, but she wasn’t interested in trying to build a company from scratch.

Suttle spent 20 years in corporate finance and consulting, and often saw how difficult it was for aspiring entrepreneurs to keep the cash flowing.

A career counselor recommended she consider becoming a franchisee, and after researching various business models, Suttle made her move and now sells window treatments through a company called Budget Blinds.

“Every day that I work ... that’s an investment in me,” Suttle, a Franklin resident, said of her new gig. “It’s a 100 percent investment in me and my future.”

Opportunities grow

Franchise operations offer prospective entrepreneurs a structured environment in which to build a new business, and the outlook for these opportunities is improving, according to the International Franchise Association.

Throughout the United States, the number of new establishments is expected to grow by

2.5 percent this year, according to a projection by the IFA, creating nearly 200,000 jobs.

Already, about 26,600 jobs in Tennessee’s 7th Congressional District (which includes Williamson County) are directly tied to franchises, according to a third-party report paid for by the association. Those workers collectively take home $892 million annually while the shops contribute more than $2.3 billion to the economy.

Alisa Harrison, vice president of communications for the IFA, headquartered in Washington, D.C., said one of the reasons for the optimism this year is the renewed availability of start-up capital.

The recent recession was unusually tough on franchises, Harrison said. Banks weren’t lending, and people were reluctant to dip into already depleted retirement accounts to fund a franchise.

Area is on the radar

A thawing credit market is critical to Brian Mattingly’s ability to grow his business, Welcomemat Services. Mattingly started his company in 2003 and though he is headquartered in Atlanta, he has his sights set on the Nashville market as part of an expansion.

Welcomemat Services targets new homeowners with advertising from local businesses. Mattingly is keenly aware of the growth in Williamson County. Strong schools and corporate offices — two of the county’s calling cards — also are important factors in deciding where to expand his business.

That Mattingly and Suttle are providing services to residential property owners bodes well for them, according to the IFA. Franchise businesses that cater to this sector, as well as after-market automotive companies and fast-food restaurants, are expected to be among the top performers. Retailers and lodging franchises also are projected to see gains.

Companies that offer services and products to other businesses, however, will shed jobs and shrink overall, according to the IFA.

Long-term potential

Like Suttle, Jo Clark is a Franklin resident who has years of experience in corporate finance and who recently made the leap into the franchise world.

Clark was attracted to the multi-level marketing structure of direct sales with Rodan + Fields Dermatologists, a cosmetics company. Earlier this month, she was commended in a company newsletter for recruiting several new consultants.

However, Clark turned to Rodan + Fields only after she was unable to get the financing for her own company. Selling cosmetics was not part of the grand plan, Clark said, but now she sees some long-term potential. What she enjoys most is teaching other women how to find their own success.

“You have to show up for work every day,” Clark said of getting started. She began working with Rodan + Fields in November and struggled initially, but now seems to be getting the hang of the business.