Local franchises fly under the radar
By Jeffrey T. Lavery
When Joanna Meiseles left a disgruntled customer from her child’s hair salon, she went beyond finding a new stylist. She started her own company.
Natick-based Snip-Its began as a five-store operation. After researching different ways to build the company, Joanna decided to sell franchise opportunities, and now has 45 stores in operation across the country.Several other entrepreneurs caught the franchise bug in recent years, like Christine and Richard Shock, president and vice president of Hopkinton-based Shock PR Intl. Inc., a PR agency franchise. Then there’s Acton-based Learning Express, a educational toy store. Others have bought into a franchise, like the proprietors of Dream Dinners, a one-stop meal-making shop for busy families.
"Some will make an investment in an idea and be 100 percent at risk," says Arthur Pressman, co-chair of the franchise and distribution practice at Nixon Peabody, a Boston-based law firm. "Others choose to buy a franchise where a brand has already been created."
Video gamers need not apply
The Learning Express in Acton offers educational toys not commonly found in larger retailers, and the first store began as a local franchise offering support to the Groton Community School. The sales supported the school, and after the success of the program, Sharon DiMinico, CEO and founder of Learning Express, decided to go national with the concept.
"We had a choice between opening up corporate stores or a regional owner program," says DiMinico. Learning Express went with the latter, and seven regional owners oversee several territories.
In addition to having $100,000 in cash to put down, interested franchisees must visit corporate offices in Ayer for interviews to determine if the applicant has the right skills. DiMinico notes that the human portion of a franchise is the biggest determining factor to its success.
"We do have a well-oiled machine, but the most frustrating aspect is getting our store owners to do what they should," says DiMinico. "You can bring a horse to water, but you can’t always make it drink."
The firm will celebrate its twentieth anniversary in March of 2007 with over 100 stores in operation. DiMinico expects the company to make between $80 and $90 million in sales this year, 5 percent of which she’ll collect in royalties and divide among regional owners. "I’d do it all over again," says DiMinico.
PR on a budget
In 2005, fast food, retail and service industry stores represented the top three of franchised businesses, according to the International Franchise Association. However, a new model exists in Hopkinton. Meet Shock PR Intl. Inc., a public relations franchise offering advertising specialists a way out of the corporate jungle.
For $25,000, franchisees can purchase a turnkey operation, which covers training, educational material, ongoing management support and the use of the registered Shock PR trademark. They can opt to work out of their home or purchase office space, but previous experience in the public relations field is a must. In any case, a careful evaluation of the candidates is necessary, says Christine Shock.
"Our goal is to work with our franchisees and make them successful," says Shock. "We’re looking for people who understand what they’re getting into."
When the couple realized that larger PR firms were charging top-dollar rates for services, they saw a new opportunity for experienced agents to offer services at a better price. The first group of franchisees will meet for training later this summer, and Richard hopes to have a crop of agents who will bring a well-stocked client list to their new venture.
Richard notes that PR specialists want to get out of the chrome and glass buildings, and find themselves running their own firm. The motivation is there, says Shock, especially with monthly fees to pay and regular check-ins with the franchisee’s clients.
More than a barber shop
Most hair salons contain a standard arsenal of equipment: Chairs, sinks and dryers. However, a new breed of styling centers has emerged. Snip-Its, a themed salon for kids, is the brainchild of Joanna Meiseles, founder and president. After successfully operating 5 stores, Meiseles had a conversation with the Babe Ruth of franchisers, Bob Rosenberg, Dunkin’ Donuts CEO.
"If my unit level economics work, and it’s an appealing business model, than that’s a good indication it’s a franchisable business," says Meiseles. "Rosenberg told me I was on to something, and that was one of my main inspirations."
Forty-five stores currently operate across the country. Each store features unique design elements, part of a mandatory package that includes decorative versions of Snip-Its characters, distinct waiting areas, counter designs and other identifying traits. So far, the firm breaks even, but hopes its franchisees will build their business to a profitable level by 2008.
"Getting people to sign a franchise agreement is one thing," says Derek Skaletsky, vice president of franchising, "but actually getting them to operate a good store is another."
Buying in instead of building up
While these examples build from the ground up, others opt to become franchisees. Meet Ann Marie Parness, Tiffany Duta and Michele Guilmette, co-owners of Dream Dinners
stores in Milford and Framingham. DreamDinners provides ready-made ingredients that customers purchase and store for future meals. After sampling the cuisine at a friend’s house, Tiffany got hooked. The three then decided to sign on as a franchisee instead of starting their own company from scratch.
"We jumped into a package completely drawn out instead of trying to figure it out ourselves," Ann Marie notes. The total franchise fee costs $35,000, with the home office taking care of marketing needs and providing ongoing support from its headquarters in Seattle.
The Milford store was the first in New England, and the uniqueness of the idea makes it difficult to market, says Parness. However, persistence paid off and business is booming, with the two stores ranked 5 and 6 in the country in November of 2005. While it’s more work than they ever anticipated, the co-owners agree the investment has been worth it.
"It’s gratifying to know we established a brand new industry in this area," says Tiffany.
Jeffrey T. Lavery can be reached at jlavery@wbjournal.com
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