FBR Emerging Franchises 2015

SPECIAL REPORT
FranchiseBusinessREVIEW
Ratings and Reviews of the Best Franchise Opportunities by Franchisees
2015
TOP EMERGING
FRANCHISES
Rated by the Franchisees Who Own Them
Owning The Exercise Coach franchise enables John and Nikki Suazo to
successfully balance business and family.
How Satisfied Are
Emerging Franchise
Owners?
PAGE 5
The List:
Top Emerging
Franchises
PAGE 6
Advice for
choosing the best
franchise for you
PAGE 4
#1

YOU HAVE
FRANCHISE QUESTIONS.
WE HAVE
IMMEDIATE ANSWERS.
Finding the right franchise fit requires research, lots of it.
Luckily, 33 key questions ranging from financial opportunity and training to leadership
and core values, are immediately answered by those who know best — franchise owners —
within the Franchise Reviews section of www.FranchiseBusinessReview.com.
Not all of Franchise Business Review’s top franchises share their
full franchisee satisfaction research findings. These nine emerging brands do.
Get your questions answered by visiting www.FranchiseBusinessReview.com.

SPECIAL REPORT: Emerging Franchises
Younger Franchises With Staying Power
Each year we see dozens of companies that decide to try their hand at franchising. Often these
new franchises do not have the established systems necessary for long-term success, which
makes them a risky proposition. By researching emerging franchises and determining which
ones have the leadership teams and systems in place to be successful, we hope to reduce your
investment risk. The 40 up-and-coming brands that made our Top Emerging Franchises list
this year scored highly in areas we know to be crucial to a system’s long-term success, including
leadership, core values, training and support.
In addition to providing you with a list of top rated emerging franchises on page 6, this report
provides you with in-depth insight regarding what it is like to be a franchisee and what franchisors
look for in prospective franchisees. To learn more about the featured franchises in this report,
visit www.FranchiseBusinessReview.com.
Informed franchising is happy franchising!
By researching
emerging franchises and
determining which ones
have the leadership
teams and systems in
place to be successful,
we hope to reduce your
investment risk.
Emma Pearson, Editorial Director
Franchise Business Review is the leading national franchise market research
firm that performs independent surveys of franchisee satisfaction and
franchise buyer experiences. Before you invest in any franchise opportunity,
read our reports to get the facts from those who know best—the franchisees.
We publish six annual research reports: Guide to Today’s Top Franchises,
Top Multi-Unit Franchises, Low-Cost Franchises, Top Food Franchises,
Veterans & Franchising, and Top Emerging Franchises. All are available for
free at www.FranchiseBusinessReview.com.
Eric Stites, CEO & Managing Director
Michelle Rowan, President & COO
Emma Pearson, Editorial Director
C.J. Fleck, Senior Web Developer
Michael Kupfer, Online Marketing Manager
Ali Forman, B2B Marketing Manager
Nicole Kenney, Client Services Manager
Julie Nelson, Client Consultant
Linda Lorrey, Client Consultant
Chris Poirot, Client Consultant
Amy LaLime, Office Manager
Margot Doering, Accounting
The Secret Agency, Design and Production
Call us at 603-433-2270
ABOUT OUR RESEARCH
Participation in Franchise Business Review’s franchisee satisfaction
research is free for all North American franchise systems with a minimum
of 10 franchisees. For this report, we surveyed over 1,300 franchise
operators from companies that have been franchising for less than five
years. We asked each franchisee to answer 33 benchmark questions
ranking their franchise in the areas of financial opportunity, training and
support, leadership, operations and product development, core values
(e.g., honesty and integrity of franchisor), general satisfaction, and the
franchisee community. We also asked them to answer an additional
16 questions about their market area, demographics, business lifestyle,
overall enjoyment running their franchise, and role in the franchisee
community. From this data, we identified our list of top low-cost
franchises with the highest franchisee satisfaction. Surveys to determine
the Top Franchises for 2016 are underway. If you are a franchisor
and would like to participate, please call 866-397-6680 or contact
info@FranchiseBusinessReview.com.
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SPECIAL REPORT: Emerging Franchises
Newer Can Be Better
A Look at the Strongest Up-and-Coming Franchise Brands
There are a variety of reasons people seeking
to be self-employed purchase a franchise
instead of creating a business from scratch.
The primary one is that franchises tend to
have a higher success rate than start-ups do
because they offer a blueprint for success—
proven systems and ongoing support.
“After working on Wall Street for 23 years,
I had the opportunity to accept a severance
package. I had seen too many Wall Street guys
in transition waiting around for another job,
often for a long time, and knew I wanted
to have my own business. A career coach said
that starting one from scratch fails 90% of the
time and that franchises had a much higher
success rate because of the support structure.
He gave me four franchises to look at. I threw
out two immediately and went to the discovery
day for the other two. When I met the CEO of
101 Mobility, I knew it was the franchise for
me for several reasons. With 10,000 people a
day turning 65 the marketplace is huge, the
size of the territories and price point really
appealed to me, and I’d be able to give back
to people who are facing desperate times,” says
John Michielini, who opened his 101 Mobility
franchise in August of 2013 in his New
York territory.
“At first I thought I’d add a mosquito and
pest control division to my existing lawn care
business, Southern Lawn,” says Steve Clark,
who purchased his Tennessee based Mosquito
Joe franchise in January 2014. “I’m glad I didn’t
because it took me eight years to reach $250
thousand in sales with Southern Lawn and we
plan to hit that same figure with Mosquito Joe
this year. It’s clear that Mosquito Joe’s existing
systems trump me trying to figure out what to
do on my own. In fact, I’m now applying them
to Southern Lawn.”
“It’s a lot of work to have a franchise, but
it would have been even more work if we tried
to create a similar business on our own and
it would have cost more, since the tools and
infrastructure wouldn’t be there for us,” says
Judy and Reed Alewel, owners of Pinot’s Palette in Las Vegas, at their Phantom of the Opera themed event.
Franchises tend to have a higher success rate
than start-ups do because they offer a blueprint
for success.
Pinot’s Palette franchisee, Reed Alewel. He
and his wife, Judy, left well-paying corporate
jobs to open their two franchise locations in
the Las Vegas metropolitan area.
ESTABLISHED VS. EMERGING FRANCHISES:
THE EARLY BIRD GETS THE WORM
Franchisees that invest in a newer concept
tend to be less risk averse than those who are
only interested in franchises that have been
around longer. They often see opportunity
where others see risk and have confidence in
themselves and their ability to make things
work within a franchise system that may
still be working out its kinks. The potentially
greater risk franchisees of emerging franchise
concepts take on is often offset by their ability
to obtain larger territories and more locations
for lower fees than those who come on board
later.
“Franchisees who invest in an emerging
franchise get in on the ground floor, pay lower
start-up costs and are part of creating the
brand model,” says Amy Wasney, Director of
Operations at Men In Kilts Window Cleaning.
“As an emerging franchise we need to
ensure that not one franchisee falls by the
wayside. We do so by listening to our franchisees
input and ideas for better growth.
Once a franchise system gets larger, these
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SPECIAL REPORT: Emerging Franchises
Men in Kilts Window Cleaning franchisees keep
communities sparkling.
things become harder to do and perhaps not
as urgent,” says Ciara Stockeland, COO of
MODE, a designer outlet store franchise.
When considering whether you should
invest in an emerging franchise versus a more
established brand, it might be helpful to realize
that just because a franchise has existed
longer, does not always mean it is better.
“There are many other fitness franchises
that have been around longer than ours, but
clearly have a less organized system, a less
competitive model and less engaged leadership,”
says Ben Midgley, CEO and Co-Founder
of Crunch Fitness Franchise.
The Top Emerging Franchises list on page 6
may well have only been franchising for five
years or less, but our research indicates they
are checking off all the right boxes to establish
themselves as long term players. 87% of the
emerging franchisees we surveyed replied
“Good”, “Very Good”, or “Excellent” in
response to: “Overall, how would you rate
your franchisor and the opportunity provided
by this franchise system?”
HOW DO YOU CHOOSE?
The sheer number of franchises available for
you to consider can be overwhelming. There
are 40 brands in this report alone. The easiest
way to narrow down the field is to seek out
franchises that have staying power due to a
strong leadership team and proven systems.
Finding out which ones they are requires due
diligence.
“First and foremost, I think potential
franchisees should look for engaged leadership.
They should meet the CEO and all other
executives before joining the brand in order
to get a good feel of the team they would be
relying on for their personal success as well
as that of the overall brand. If the franchise,
regardless of its size, does not facilitate meeting
the executive team, a potential franchisee
can be pretty sure where he will stand once he
becomes a franchisee,” says Midgley. He also
suggests that potential franchisees find out
what the track record for the opened stores
is and how the earnings claims look, which is
sometimes available in the Franchise Disclosure
Document (FDD). In addition, Midgley
stresses the importance of speaking with
multiple franchisees to get their perspectives
and a feel for if they seem genuinely happy
and successful.
Mosquito Joe franchisee, Steve Clark,
echoes this sound advice. “Meeting the corporate
staff at Mosquito Joe sold it for me. They
seemed trustworthy and friendly,” says Clark.
“I also spoke with franchisees and asked them
three questions: Does it really work? What
were your first year sales? When do you expect
to make a profit?”
Another way to obtain insight into franchisee
satisfaction is to see if the brand does an
annual survey of their franchisees to measure
feedback. If it is a brand we have researched,
you can see if they make their franchisee satisfaction
results available at www.Franchise
BusinessReview.com or ask if they have
a report they can share with you directly.
Each of the franchises on the Top Emerging
Franchises list in this report have very high
franchisee satisfaction as a result of investing
in their success.
“We believe our franchisee satisfaction is so
high because we support our franchisees with
their businesses,” says Wasney of Men In Kilts
Window Cleaning. “We do our best to make
ourselves as accessible as possible to our franchisees
and their overall needs. Our leadership
team lives our core values, which are People,
Passion, Integrity, Gumption and Growth, and
all share the same vision and end goal.”
To further narrow down your options,
look for franchises that will best meet your
personal and financial objectives.
“I was not looking to invest in a franchise,
but when YESCO franchised the lighting and
maintenance side of its business, it was a perfect
fit for our existing custom sign manufacturing
and installation business,” says YESCO franchisee
Paul Deters, who has five territories in
Michigan and has signed an agreement to
purchase more over the next three years.
You can also work with a franchise broker,
who connects people looking to become
franchise owners with opportunities that
seem like a good fit for free since they receive
a commission from the franchisor. Unlike real
estate brokers, who can access information
on all of the houses in a market, franchise
brokers typically have a limited portfolio of
franchise brands that they work with and
know have a good track record. To work with
our experienced franchise consultant partner
who will guide you through the franchise
search process, help answer your questions,
and understand your needs and business
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SPECIAL REPORT: Emerging Franchises
goals, visit www.fbr50.com/free-franchiseconsultation/.
“I recommend that anyone considering
buying a franchise work with a franchise
broker”, says John Suazo, who co-owns a
The Exercise Coach franchise in Colorado
Springs, CO with his wife. “Ours spent a tremendous
amount of time working with my
wife and me in order to learn what we were
interested in, how much we could afford,
where we wanted to live and much more.
Eventually she presented us with five options
and helped us evaluate the pros and cons of
each. We narrowed our choices down to three
with the intent of going to two discovery
days. Our broker worked with us through our
interactions with franchisors and franchisees
during the entire process. If it wasn’t for her,
we would not be in the system we are in today.”
Suazo and his wife signed a multi-unit The
Exercise Coach franchise agreement to open
three units within 14-month intervals. They
opened the first one in March of 2015. Their
goal is to have 100 clients by April 2016 and
they are above pace to achieve this metric.
Franchise expos are another way some
potential franchise investors find their perfect
franchise match.
“We went to a franchise expo in New York
City and happened upon two companies in
the paint and sip industry,” says Pinot’s Palette
franchisee, Reed Alewel. “We did discovery
day at each and chose Pinot’s Palette due to the
simplicity of the business plan and its robust
proprietary technology that helps us interact
with our customers and manage our business.”
HOW PROFITABLE WILL YOUR
FRANCHISE BE?
Financial Performance Representations, which
are outlined in Item 19 in the FDD, may give
you an idea of how much you will make as
a franchisee. It is, however, important to keep
in mind that many variables come into play,
such as your business experience, how much
time and energy you commit to being successful,
market area, location, franchisor support
and more. Our Franchise Buyer’s Toolkit
includes the 3-hour How Much Money Can
You Make? online course, available at www.
FranchiseBusinessReview.com/Toolkit, is a
great tool when it comes to determining how
profitable you might be.
“Our previous sign and lighting maintenance
business was a small segment of our
business. It is seven times larger since we
became a YESCO franchisee,” says Deters.
“Through its unique lead generation program
and relationships with national chains, YESCO
generates business for us.” Deters believes that
the price advantages YESCO’s purchasing
program has provided have contributed
greatly to his profits and cover the 6% royalty
fees he pays. He states that becoming a YESCO
franchisee has also made his revenue, which
previously was impacted by economic and
seasonal changes, more predictable since each
signage and lighting component has a predictable
life. In addition, unlike custom sign
fabrication clientele, Deters says he receives
income from his YESCO clientele every few
months. “Whenever they need interior or
perimeter lights fixed, we get a call.”
Mosquito Joe franchisee Clark also says
that becoming a franchisee has helped him
successfully contend with the seasonal aspect
of his pre-existing lawn care business. “My
first year goal was to make forty thousand in
sales, instead we did one hundred thousand,”
says Clark. “We anticipate the business will
make a 15% profit next year and be making a
25% profit by the fourth or fifth year.”
How involved your franchisor is in your
success will have a significant impact on your
financial performance and profitability.
“Performance monitoring is a staple of what
we do. We have daily performance monitoring
and quarterly financial reviews for all clubs.
Surprisingly, some of the largest franchisors
in our space don’t even pull their franchisees’
P&Ls (Profit and Loss income statements)
which means they have NO clear visibility on
the profitability and true performance of their
clubs and no means to have a meaningful
review with their franchisees,” says Midgley.
“We have in-person visits from a member of
our team to all locations annually as well as a
fully integrated secret shopper program. We
are constantly monitoring the membership
blends of all of our clubs to be sure that their
average dues are trending properly. We also
monitor all social media monthly to help the
franchisees manage their overall customer
satisfaction.”
Continued on page 8.
How Satisfied are
Emerging Sector Franchisees?
“I enjoy operating this business”
91 %
Agree or Strongly Agree
90% Agree or Strongly Agree with
“I enjoy being part of this organization”
“I respect my franchisor”
89 %
Agree or Strongly Agree
“I believe my franchisor acts with a
high level of honesty and integrity”
86 %
Agree or
Strongly Agree
Overall Satisfaction with Franchise:
replied Good, Very Good,
or Excellent
84%
84 %
would “do it again”
knowing what they know today.
Overall Satisfaction with Franchisor
and the opportunity provided
by this franchise system:
replied Good, Very Good,
or Excellent
87%
88 %
would recommend
their franchise brand to others.
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SPECIAL REPORT: Emerging Franchises
THE LIST
Best of the Best:
Today’s Top
Emerging Franchises
* Pinot’s Palette — more on inside front cover
Painting class
Best In Class Education Centers
Tutoring services
Survey
Date
March
2015
July
2014
Startup
Investment
$74,100 –
$194,100
$56,700 –
$96,800
Cash
Requirement
Total
Units
$80,000 142
$30,000 32
* Amada Senior Care
In-home senior care
May
2015
$92,210 –
$171,654
$50,000 53
* Mosquito Joe
Mosquito control services
Aug.
2014
$62,850 –
$125,750
$30,000 190
Fit Body Boot Camp
Fitness
April
2015
$35,000 –
$75,000
$9,997 222
Men In Kilts
Window cleaning
Aug.
2014
$39,000 –
$75,000
$50,000 12
“This is a great franchise.
There is a tremendous
energy to continuously
improve and a great deal
of operational value from
the franchisor. The team
goes above and beyond
to accommodate
the franchisees.”
* YESCO — more on p. 12
Visual business communications
The Exercise Coach
Fitness
* FirstLight HomeCare
In-home senior care
WOW 1 DAY PAINTING
Painting
* Qualicare Family Homecare
In-home senior care
Aug.
2015
Aug.
2014
May
2015
Jan.
2014
Oct.
2014
$66,500 –
$240,000
$95,000 –
$236,000
$87,181 –
$131,459
$90,000 –
$140,000
$65,800 –
$149,450
$60,000 91
$95,000 –
$236,000
34
$65,000 159
$50,000 32
$75,000 58
– Supporting Strategies Franchisee
The Mosquito Authority
Mosquito control services
Jan.
2015
$50,000 –
$70,000
$20,000 –
$40,000
375
Chicken Salad Chick
Quick-service
Aug.
2014
$336,500 –
$539,200
$125,000+ 42
Family Fare
Convenience store retailer
Sep.
2014
$31,800 –
$201,700
$27,800 –
$131,700
86
Taziki’s Mediterranean Cafe
Fast casual
Sep.
2014
$313,000 –
$809,000
$500,000 48
Bottle & Bottega
Wine & painting studio
April
2014
$94,300 –
$146,100
$75,000 18
Supporting Strategies
Bookkeeping services
May
2015
$50,400 –
$75,400
$50,400 –
$75,400
36
Realty ONE Group
Real estate
Aug.
2014
$30,000 –
$195,000
$30,000 –
$195,000
62
*This brand’s Franchisee
Satisfaction Report is available at
www.FranchiseBusinessReview.com
Welcomemat Services
Printing & marketing services
* Payroll Vault
Payroll services
June
2015
Oct.
2014
$56,000 –
$83,850
$42,000 –
$69,000
$75,000 54
$50,000 27
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SPECIAL REPORT: Emerging Franchises
Survey
Date
Startup
Investment
Cash
Requirement
Total
Units
Image One
Commercial cleaning services
BlueGrace Logistics
Business logistics
* Mosquito Shield
Mosquito control services
APEX Fun Run
School fundraising program
* Crunch Fitness
Fitness club
Orange Theory Fitness
Fitness
Jan.
2015
July
2015
July
2014
Oct.
2014
Oct.
2014
Feb.
2014
$34,350 –
$103,208
$39,500 –
$181,250
$73,100 –
$91,800
$60,500 –
$86,200
$1,200,000 –
$1,500,000
$327,600 –
$634,100
$24,750 –
$103,208
76
$50,000 58
$100,000 35
$10,000 62
$300,000 –
$400,000
$327,600 –
$634,100
119
272
“Apex has created an
extremely strong network
between franchisees.
Anyone would help
another at the drop
of a hat and all take
the time to teach and
support each other.”
– Apex Fun Run Franchisee
The MAX Challenge
Fitness
You Move Me
Moving services
* Your Pie
Fast casual
101 Mobility — more on p. 12
Mobility equipment services
NYS Collection Eyewear
Eyewear retailer
Kid’s Closet Connection
Children’s consignment
July
2015
Feb.
2015
Sep.
2014
July
2015
Oct.
2014
Jan.
2015
$80,575 –
$107,650
$138,000 –
$187,200
$400,000 –
$450,000
$113,560 –
$205,830
$80,695 –
$99,398
$12,000 –
$17,000
$25,000 55
$125,000 35
$250,000 25
$100,000 150
$13,580 –
$97,148
$12,000 –
$17,000
53
40
“I could not be more
impressed with the
character and integrity
of the senior leadership
at CBAH. They have the
background and wisdom
to make this a very
successful franchise.”
– CareBuilders At Home Franchisee
CareBuilders at Home
In-home senior care
Aug.
2014
$80,300 –
$99,300
$75,000 15
MODE
Designer retail store
Teriyaki Madness
Fast casual
Trumi
Fitness
Live 2 B Healthy Senior Fitness
Senior fitness
Iron Tribe
Fitness
Forever Yogurt
Frozen treats
Aug.
2015
July
2015
Aug.
2015
March
2014
July
2014
Sep.
2014
$170,000 –
$274,000
$255,199 –
$560,850
$6,367 –
$20,100
$37,695 –
$48,135
$305,000 –
$438,500
$243,800 –
$516,700
$170,000 –
$274,000
7
$52,500 22
$6,367 –
$20,100
$37,695 –
$48,135
$305,000 –
$438,500
$243,800 –
$516,700
26
36
40
25
“The thought ‘to good
to be true’ only begins to
paint the picture. Without
exception, purchasing a
Live 2 B Healthy franchise
has been the best
financial decision I have
ever made.”
– Live 2 B Healthy Franchisee
Executive Image Building Services
Commercial cleaning services
Aug.
2015
$8,500 –
$73,000
$8,500 –
$73,000
26
For more information on the companies in this report, visit www.FBR50.com | 7

SPECIAL REPORT: Emerging Franchises
Left: Crunch Fitness franchisee, Steve Block, owns and operates several clubs in Oregon.
Right: Dustin Shackleford makes the outside fun again for his Charlotte, NC Mosquito Joe clients.
Continued from page 5.
“We make a tremendous effort to increase
profitability for our franchisees. We understand
that if they are successful, we are successful,”
says Stockeland of MODE. “We receive weekly
store reports and monthly P&L statements
from each of our franchise locations that we
compile and analyze on a monthly and quarterly
basis. After reviewing the data internally,
our Franchise Relations Director visits with
each owner to discuss their highs and lows,
their goals, and their struggles.”
Despite buying into a strong system, it’s
important to have a financial cushion to support
your business and yourself until your
franchise is stable and profitable.
“My wife, daughter and I all manage
various aspects of our two franchises,” says
FirstLight HomeCare franchisee Danny
Feldman. “We were able to meet our expenses
of our Mobile, Alabama location, which we
opened in September 2013, within four to five
months. None of us took a salary the first year.
My wife and daughter took a nominal salary
in year two and are taking a ‘less than market
rate’ salary today. By next August their salaries
should reach market rate.” Feldman, who has
a successful law practice, has not received
a salary for his FirstLight HomeCare work,
but will do so. He believes the business will
be more profitable now that his team’s focus,
which was initially on getting their Mobile
location successfully off the ground, has
shifted to growing their Birmingham location,
which they opened in October 2014.
“My business was self-sustaining by year
one and started to show a profit by the end of
year two,” says 101 Mobility franchisee Michielini.
“As I enter year three, I plan to hire more
sales and marketing staff as well as installers.”
Michielini says between year one and two, his
business generated 25% more revenue. He is
hoping for a 30% to 40% increase by the end
of his third year in business. Michielini did
not take a salary for two years and instead
reinvested all the profit back into the business
while living off private investments. He will be
taking a salary in the third year.
IS FRANCHISING RIGHT FOR YOU?
Savvy franchisors know that the health of their
systems relies heavily on their selecting the
right franchisees. Every franchise company has
specific criteria for who they feel will succeed
in their business.
“We look for franchisees who have solid
character, good business sense, and a passion
for the industry that we are in,” say Midgley of
Crunch Fitness Franchise. “We ask ourselves
if the person would be enjoyable to work with
and add positively to the culture we have
created with our franchise partners.”
“We only consider potential franchisees
who have an entrepreneurial spirit, are hardworking
and embody our core values,” says
Wasney of Men In Kilts Window Cleaning.
Once you know what a franchise is looking
for in a candidate, it’s crucial to dig deep within
yourself to determine if you would be a good
franchisee.
Do you have the necessary grit? Success
does not come without a tremendous amount
of work and accountability.
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SPECIAL REPORT: Emerging Franchises
Franchisees who invest in an emerging franchise
get in on the ground floor, pay lower start-up costs
and are part of creating the brand model.
“The start-up phase of any new business
in any market is not for the faint of heart.
Starting a business is exciting, but never
underestimate the focus, faith and effort that
are required to succeed during the start-up
phase of a business,” says You Move Me CEO,
Brian Scudamore.
“You’re sticking your neck out and assuming
a lot of risk when you open a franchise.
It’s really important to have the funds available
and the grit to keep at it,” says Pinot’s Palette
franchisee Judy Alewel. “You don’t want to be
in a position of choosing between investing in
the business or making your house payment.”
To mitigate their risk, Judy stayed in her full
time nursing job for a year and worked on the
business at night while her husband, Reed,
left his job as a VP of Sales Operations for a
gaming company to work on it full time.
“First time franchisees need to be aware
that although they are buying blueprint to a
business, it is their responsibility to be actively
involved in their business and to take 100%
ownership of their successes and failures, “says
Stockeland of MODE. “They must have a willingness
to roll up their sleeves every day and
work with an ‘all hands on deck’ mentality.”
Do you have enough patience? From the
time you sign the franchise agreement to the
time you make a profit varies greatly from
franchise to franchise.
“We were in business for four weeks before
we got our first client who only needed four
hours of service a week. We got our second
client two months in, who also only needed
four hours of service a week,” says FirstLight
HomeCare franchisee, Feldman. “July 2015
was our best month. We had 2,100 hours of
service. Essentially we went from eight hours
of service after being open for two months
to 2,100 hours of service after 22 months.”
Feldman feels like he and his family have only
touched the tip of the iceberg when it comes
to growing the business and is shooting to
increase growth by 1,000 service hours a week
within a year. He finds the volatility in hours
to be very challenging since it impacts revenue
as well as his company’s ability to maintain
good employees.
“It will take time to build your business.
You must be patient,” says Pinot’s Palette franchisee,
Judy Alewel. “We opened in August
and did not have our first sold out class until
December. We started to break even six
months in.”
Can you follow a system? Most successful
franchise owners are able to balance their
entrepreneurial spirit with an understanding
that they must adhere to the franchisor’s
system.
“If I could offer one bit of advice to new
franchisees, it would be that you bought a
franchise for a reason. Do not join a franchise
trying to make it your own independent business.
Be part of the whole and participate in
the franchise system to its fullest extent,” says
Stockeland of MODE.
“We struggled our first year because we
tried to manage our existing signage business
and YESCO business with the same amount
of staff we had always had, which went against
the franchise model YESCO had laid out for
us,” says Deters. “Once we staffed up the way
YESCO had told us to, our sales exploded.”
Deters says his two companies share administrative
and HR staff, but that each has
dedicated sales people.
“If you think you know more than the
franchisor, don’t go into franchising,” says
Dale Wasem, who along with several partners,
owns seven Taziki’s Mediterranean Cafe
locations in the Nashville, TN metropolitan
area. “Taziki’s Mediterranean Cafe already
has best-in-class policies, procedures, recipes
and more in place. I came in and followed
the system and remain committed to doing
so.” His advice to prospective franchisees is:
1) Be hands on and engaged in your business.
2) Integrate yourself into the community since
building relationships helps your success more
than advertising. 3) Select the right location
since it will impact your profitability.
Can you handle a 24/7 job? Even though
many of the franchisees who were interviewed
for this report said their actual working hours
were similar to those they had when they held
corporate positions, several said the difference is
that as a business owner your brain is going 24/7.
“We enjoy more day-to-day flexibility then
we did in corporate America, but we think
about our business 24/7,” says Pinot’s Palette
franchisee, Judy Alewel. “Thinking about
work, however, can be fun. We plan events and
enjoy talking about how we are going to grow
the business.”
“The hardest thing is to shut off the business,”
says Mosquito Joe franchisee, Clark.
“My phone is always ringing and since my
office is in my home, employees come by.”
Clark says he believes having an office in your
home is a great way to start, but not good for
a work life balance since separating yourself
from work is harder.
Although people who invest in emerging
franchises come from all walks of life, we noted
that when we compared franchisees from all
franchise sectors with those in the emerging
sector there is a greater concentration of franchisees
with bachelor’s degrees or higher in
the emerging sector (75%) compared to all
franchisees (66%). This makes sense since
individuals who have worked in the corporate
arena, which many graduates do, may well
have more confidence in their ability to make
things work and therefore be less risk adverse.
The faith of emerging franchisees in their
business is also highlighted by the fact that
when asked to score the “long-term growth
opportunity for my business” in our Franchisee
Satisfaction Benchmark Survey they selected
“very strong” 40% more frequently than all
franchisees who responded across all brands.
SIGNING ON THE DOTTED LINE
When it comes to making the final decision
regarding which franchise is best for you, it
will come down to two factors: what you discovered
during the due diligence process and
your gut instinct. You will need to believe in
the concept, have faith in the team that is driving
it, and feel it will fulfill both your business
and personal objectives.
“Take your time and do your research.
Shop the business that you are interested
in and all its competitors,” says Midgley of
Crunch Fitness Franchise.
For more information on this report, visit: www.FranchiseBusinessReview.com | 9

SPECIAL REPORT: Emerging Franchises
Left: A YESCO technician works on fixing a sign.
Right: John Michielini, owner of a 101 Mobility franchise in New York, is honored to serve his community.
Once you decide you are ready to sign on
the dotted line and get started in franchising,
you will most likely have two major hurdles to
overcome. The first will be finding the funds
necessary to purchase the franchise. The
median investment range for the emerging
brands we surveyed was $72,500 to $147,000,
but many franchise concepts require much
more startup capital. How will you get the
money? Friends and relatives, home mortgages,
veterans’ loans, bank loans, Small Business
Association loans and finance companies are
all sources of funds and come with different
risks. It is crucial that you understand
the possible implications of each option.
Our Franchise Buyer’s Toolkit, which is available
at www.FranchiseBusinessReview.com/
Toolkit, provides a detailed franchise funding
walkthrough as well as other tools that will
help you successfully navigate a franchise
purchase. We also offer a full suite of financing
services to ensure you get the capital you
need at www.fbr50.com/franchise-financingoptions/.
“There are ample funding options available
to potential franchisees who have a good credit
profile. The challenge is that it isn’t always easy
and often takes time to navigate the lending
process,” says Midgley. “In our case, franchisees
we have invited to join our system can
access our own vendor backed Crunch Fitness
Franchise funding pool, which consists of
tens of millions of dollars. It enables them to
quickly obtain financing at some of the most
aggressive rates and terms in the market.”
The second will be deciphering the overwhelming
amount of paperwork ranging from
the FDD, a potential lease, and the franchise
agreement.
“The biggest adjustment for many people
who have never been in franchising before
is simply signing the franchise agreement.
Most franchisors don’t allow the agreement
to be modified and this can make a franchisee
uncomfortable,” says Midgley. “In addition a
lot of franchisors have 700 to 1,000 page FDDs
that prospective franchisee should read and
understand before they sign an agreement.”
Many franchisees engage the services of
professionals to help them understand and get
through the paperwork that stands between
them and franchise ownership.
“Getting to opening was a long process,”
says The Exercise Coach franchisee, Suazo.
“I hired a franchise lawyer to help me review,
understand and ultimately help me negotiate
my franchise agreement. I also hired a real
estate attorney to review the lease agreement.
Not having owned a business before, my
feeling was that paying lawyers thousands
of dollars was well worth it and mitigated
my risk.”
Once you decide to open a franchise, it’s
important that you, your family, and your friends
know it will require most of your time and energy.
“You’ll have to commit yourself 100% to
the success of your business, especially in the
first two years. This perseverance and momentum
will allow you to build something great
over the long term,” says Scudamore of You
Move Me.
Some franchise concepts require more
time than others.
“Until you get to where you are paying
your bills, you’ll probably be working 60 to 70
hours or more a week,” says Wasem of Taziki’s
Mediterranean Cafe. “Once you can pay them,
you can go down to 50 hours a week.”
“The Exercise Coach’s corporate office
recommends that its corporate and franchisee
owned locations should close on all
major holidays and every Saturday afternoon
through Sunday. This enables my wife and I,
our staff, and our clients to have some time to
relax,” says Suazo.
SURPRISING REWARDS
While income potential of a franchise business
may be your biggest concern, many franchise
systems offer non-monetary rewards as well.
“I enjoy hearing the amazing stories our
clients share,” says FirstLight HomeCare franchisee,
Feldman. “It is also very rewarding to help
them and their families by enabling them to stay
in their homes and feel like they are not alone.“
“The flexibility is great. I don’t have to
be in the office all the time because I have a
10 | For more information on this report, visit: www.FranchiseBusinessReview.com

SPECIAL REPORT: Emerging Franchises
full time office manager and technician,” says
101 Mobility franchisee, Michielini. “I can
work from home and make my kids’ games.”
His advice to franchisees is that investing in
staff helps you grow your business faster.
Pinot’s Palette franchisee, Judy Alewel, says
“It’s very rewarding to see our guests leaving
with big smiles on their faces because they had
a phenomenal experience.”
In the end, investing in the right franchise
could turn out to be the best business decision
you’ve ever made.
“I know that every hour I work is for my
family’s future. It’s exciting,” says Suazo.
Visit www.FranchiseBusiness Review.com
to learn more about the top performing
emerging franchises featured in this report,
including seventeen that made our Top
Emerging Franchises list for the first time—
Apex Fun Run, 101 Mobility, BlueGrace,
Executive Image, Family Fare, Fit Body
Boot Camp, Forever Yogurt, Image One,
Live 2 B Healthy, MODE, NYS Collection,
Payroll Vault, Supporting Strategies, Teriyaki
Madness, The Mosquito Authority, Trumi
and Your Pie.
WARNING:
BUYING THE WRONG FRANCHISE
CAN SERIOUSLY DAMAGE YOUR FINANCIAL HEALTH.
When you invest in a franchise, you have only one chance to make the RIGHT choice —
one that will give you and your family a bright future. Franchise Business Review can help.
Our Franchise Buyer’s Toolkit provides all the resources you need to make an informed franchise
investment. Learn the ins and outs of buying a franchise, get tips from the pros, and access insider
insights that you won’t find anywhere else.
Learn more at FranchiseBusinessReview.com/Toolkit
For more information on this report, visit: www.FranchiseBusinessReview.com | 11

SPECIAL REPORT: Emerging Franchises
Target the service
market in your area
with a YESCO sign and lighting franchise. Our
aim is to help you build your business by providing
proprietary software, unique purchasing power,
and a model that works. Call us today and join our
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Please note that the information in this advertisement does not constitute an offer for a
YESCO Franchise; such an offer will be made only in conjunction with the presentation of a
Franchise Disclosure Document. A YESCO Franchise may not be available in your state.
yescofranchise.com | 866-777-6988
Copyright 2015 by YESCO Franchising LLC. All rights reserved.
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*Source: Pew Research Center. This advertisement is not an offer to purchase a franchise. An offer may only be made after the delivery and receipt of a Franchise Disclosure Document in accordance
with applicable federal and state laws. ** The 101 Mobility® system’s total system-wide revenues grew 58% year over year (2013/2014).
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