Think tanning salons, computer repairs, senior care, “ugly” houses; toss in a touch of reality TV, and you have a sampling of what’s going on in franchising today. Originally designed to expand fast food and hotel chains efficiently, over the years franchising has evolved to meet ever-changing trends in society. Marc Kiekenapp offers one example:
Being on TV was the furthest thing from Kiekenapp’s mind when, as a franchise consultant, he drew up an agreement last year to package a franchise for LA Sunset Tan. The Hollywood-based chain of upscale tanning salons is featured in “E!” Entertainment network’s reality show, “Sunset Tan.”
“When I arrived in Hollywood, we started touring some of the salons,” he recalls, “and I was sitting in one with Jeff Bozz, one of the shows owners, pops out and says, ‘What do you think about being on the show?’” Twenty minutes later Kiekenapp was in the West Hollywood salon appearing on reality TV. “After the show they said, ‘You nailed it!’ and signed my agreement and we packaged the company,” Kiekenapp said of his introduction to franchising Hollywood style.
Co-founders Devin Haman and Jeff Bozz plan to duplicate their five existing salons throughout the nation, so to accomplish this Kiekenapp, now LA Sunset Tan President, has already recruited several experienced area developers.
Area developers also will play a pivotal role in the growth of computer repair franchise Friendly Computers, which last year acquired Computer Renaissance, a chain focusing on reconditioned and used equipment. “You will see a lot of Friendly Computers/Computer Renaissance combos coming out in major cities,” said Bryan Ward, president.
Much of Friendly Computers’ business is from consumers who are frustrated with long telephone hold times and service delays form manufacturers. “That’s where we come in,” Ward said, pointing to his company focus on customer service. “We train our technicians on what to look for, how to deal with customers, and how to fix a problem right the first time.”
A company built on fixing a different kind of problem, that of hard-to-sell houses, HomeVestors (the “We Buy Ugly Houses” company) is looking to increase market penetration by offering part-time franchisee opportunities. The company, whose franchisees buy, repair and re-sell houses, recently rolled out its new associate franchisee program said, Jason Killough, vice president of development. “This allows someone to keep their ‘day job’ and get their toes into real estate investing without having to invest the full franchise fee.”
Top HomeVestors franchisees will be Development Agents, recruiting, supporting and mentoring associate franchisees. The only franchise company of its kind, HomeVestors has 230 franchises and is expecting dramatic growth over the next few years.
The coming years will also see tremendous growth in home health care for seniors as the 65+ population burgeons to around 70 million by 2030. Still, making seniors aware of home care services remains a challenge said Jim Booth, CEO of in-home care franchise company Comfort Keepers, which has grown to 550 franchises since it began in 1999.
“Many seniors today look at care and think of it as going into a nursing home,” Booth said. “They are not aware they can have someone come into the home and help with daily activities.”
Booth attributes much of his company’s success to the franchise business model. “The franchising concept allowed Comfort Keepers to get brand recognition in an early market and take a leadership role.”
