Opinions expressed by BIZ Experiences contributors are their own.
Many high school students have after-school or weekend jobs, butstudents at Fosston High School in Northwest Minnesota can workduring school hours--and get educational credit for it. Fosston ishome to Tunes N Technology, the only student-run RadioShackfranchise in the world.
The idea arose when the school district's EducationalVisions Committee recommended that students be provided with bothentrepreneurial and employee work opportunities. A survey ofstudents indicated that a RadioShack franchise would be verypopular, but convincing Ft. Worth, Texas-based parent company TandyCorp. that it would work was another story. "Their initialreaction was `You want to do what? Where?' But after they foundout how thoroughly the kids had researched and planned this, theysent some people to talk to us," says Sandy Steile, theteacher who led the effort.
After obtaining funding, the store opened for business inOctober 1995. Although the student workers make minimum wage, amajor perk of their employment is a wealth of knowledge."I've learned a lot from working there," says PatrickSchmidt, a Fosston freshman. "Managing money, doing securityand customer service [is] good experience."
Steile agrees: "It may not be a typical classroom, but thelearning I see these students achieving is monumental."
Smooth Sailing
By Elaine W. Teague
The ocean breeze, sumptuous meals, the sun, the fun . . . andthat's just the franchisee and employee training. With 26 majorcruise lines and 125 ships to choose from, Anthony Persico andCharlotte Luna, co-founders of Deerfield Beach, Florida-basedCruiseOne Inc., have recently given their cruise specialistfranchisees new incentive to grow: discounted training fees forfranchisees who wish to add employees.
And a comprehensive training program it is. In five days,employees inspect six to nine ships, sample a variety of meals andacquaint themselves firsthand with the product they'll soon beoffering customers. "[Employees] get an idea of what thecabins and all of the amenities are like--the spas, the fitnessclubs, nightclubs and everything else that makes a cruise acruise," says Persico. Employee training, which used to costfranchisees $995 per employee, has been reduced 40 percent underCruiseOne's new program.
Of CruiseOne's 320 franchisees in 45 states and Puerto Rico,the majority work from home. But that doesn't stop them fromfeeling like part of something larger. Capitalizing on the benefitsof volume, the franchisor purchases cruises at reduced rates,allowing the franchisee to pass the savings on to his or hercustomers. CruiseOne also negotiates the franchisee's newspaperadvertising.
For would-be franchisees, success could be on the horizon.CruiseOne reports that only 7 percent of Americans have ever takena cruise. So come on in--the water's fine.
Creme De La Creme
By Natasha Emmons
Whisper the words "Krispy Kreme" in the ear of anyonewho grew up in the South, and their eyes glaze over as theyremember the yeast-raised doughnuts of their childhood. Southernicons from comedian Jeff Foxworthy to Elvis Presley, who reportedlykept a dozen of the tasty pastries on hand at all times, havetrumpeted their devotion to Krispy Kremes.
Now, after 60 years of being a purely Southern staple,Winston-Salem, North Carolina-based Krispy Kreme Doughnut Corp. isexpanding with franchises nationwide.
"The brand awareness nationwide is unbelievable," saysPhil Waugh, Krispy Kreme's vice president of franchising. Thereare currently 125 shops operating in 17 states, and the company hascommitments from new franchisees to open more than 100 shops overthe next several years.
To keep the ingredients of Krispy Kreme's batter a secret,the dry mix is prepared at one location and shipped tofranchisees.
Despite its move into new territory, Krispy Kreme plans to keepits traditions alive. Says Krispy Kreme's Mike Cecil, "Thecompany has a rich heritage and a lively, vibrant culture that wedon't want to lose as we grow outside the Southeast."
Beauty Marks
By Elaine W. Teague
Like mother, like daughter--and grandmother andgreat-grandmother. Los Angeles-based Merle Norman Cosmetics hasleft its beauty mark on four generations of a Greenville, SouthCarolina, family. It was during the late '50s when BerylHiller, then 52 and recently widowed, left her job at the cosmeticscounter of a local department store and purchased her first MerleNorman franchise. Within a decade, she was the proud owner of threesuccessful Greenville-area Merle Norman Cosmetics Studios.
Hiller, who died in 1980, retired in the mid-Seventies, passingon the joys of skin care and makeup artistry to her daughter, JoyceTucker, 66, who retired in 1990 and sold two of the studios to herdaughters, Elaine Finley, 44, and Susan Grant, 43. Hiller'sgreat-granddaughters Jessica Finley and Stephanie Grant, both 16,help out the store--albeit behind the scenes.
"[After] 28 years, I love it as much now as I everhave," says Elaine, who, along with her sister Susan, beganworking after school at her grandmother's Merle Norman Studioswhile still in her teens. "We've all been able to benefitfrom the steps [our grandmother] took," says Finley.
On the other side of the beauty counter, you'll findmultiple generations as well: Women in their 60s, 70s and 80s,original customers of Beryl Hiller's, whose daughters andgranddaughters shop at Merle Norman, too. Tucker, who is nowenjoying semi-retirement with her husband, still helps herdaughters Elaine and Susan when she's needed. "It'ssort of a switch to work for my daughters, [but] I'm verysupportive of what they do," says Tucker. And, she adds,"I still enjoy selling Merle Norman cosmetics."
Brushing Up
By Elaine W. Teague
For Matt Coughlin's old neighbors, it must have seemed likedéjà vu. Every four years since he was 10 yearsold--until his family moved out of the area--Coughlin followed hisfather's orders and repainted the family home in Deerfield,Illinois. In those days, as Coughlin is quick to point out, he didit all wrong. But with the help of a strongif-at-first-you-don't-succeed philosophy, Coughlin improvedwith each attempt.
Fast forward several years, and none of those neighbors wouldhave been surprised to learn Coughlin had become a successful CertaProPainters franchisee. But they were surprised one day earlierthis year when Coughlin and employees of his Arlington Heights,Illinois-based franchise showed up to once again paint hischildhood home. The home's new owners were happy to acceptCoughlin's sentimental offer of a free paint job, and Coughlinfeels he has finally satisfied his father's original request.Says Coughlin, "I definitely had the right tools and equipment[this time]."
On The Double
By G. David Doran
Being a franchisee doesn't mean you have to besingle-minded. Franchisees who have diversified into otherbusinesses are often more savvy, have increased sales and typicallysuffer less during economic downturns. According to Valvoline'sGreg Pitkoff, more than 33 percent of the 132 franchisees ofLexington, Kentucky-based Valvoline Instant Oil Change have aninterest in one or more businesses besides Valvoline, but thecompany's executives don't view this as a sign ofdisloyalty. On the contrary, they see it as a sign of wisdom.
"People who have franchises besides a Valvoline bring abusiness expertise that some of the newer franchisees don'thave," says Jerry Wipf, president of Valvoline. "He orshe already knows what a franchisor expects from afranchisee."
When the "other" business is placed on the same siteas the original store, the two often complement each other. HenrySahakian, a Valvoline franchisee in State College, Pennsylvania,placed Valvoline centers next to some of his pre-existing Uni-Martconvenience stores. "Having two businesses on one site tendsto bring in many more people," says Sahakian. "We do agreater volume of business, and both stores benefit."
Diversification can also be a franchisee's saving grace whenbusiness slumps. According to Jay Rutherford, a Lexington,Kentucky, Valvoline franchisee who also owns several Taco Bellrestaurants, "If you have all your eggs in one basket and yourbusiness has a setback, you risk losing everything you have. But ifyou spread out a little bit and have some diversification, thenyou'll have some breathing room."
Video Game
By G. David Doran
As an Auburn University student, Kelly Ryan dreamed of workingbehind the scenes at a TV studio. She considered applying at CNN,but a summer spent as an intern at a Pensacola, Florida, TV stationmade it clear there was no room for creativity in a studio controlbooth. A family friend suggested that she purchase a Video DataServices (VDS) franchise. Though much younger than a typicalfranchisee, Ryan didn't let this dissuade her.
"I have a degree in radio and TV production, buttechnically, I didn't have a clue. VDS showed me theropes," says Kelly, who now videotapes and edits weddings,fashion shows and theatrical events. "I get to work at homeand keep my own hours. I love being my own boss."
Kelly's enthusiasm for her work has not gone unnoticed. In1996, her first year with VDS, she won the "Most OutstandingNew Affiliate in the Nation" award from the company. Recently,she was hired as the official videographer of the PensacolaChildren's Chorus--a group CNN doesn't usually get tocover.
What's New
By Connie Cousins
When a commercial cleaning franchise goes into residentialcleaning, no one blinks an eye. But when Memphis, Tennessee-basedServiceMaster launched Minneapolis-based senior assistancefranchise Caring Companions in 1995, it wasn't yourrun-of-the-mill expansion.
The 26-plus-unit franchise system serves those who needaffordable assistance in the home, rather than hospitalization ornursing care. "Understanding the importance of caring isessential for our franchisees," says founder and presidentDale Peterson. The franchisor provides orientation, training andsoftware applications for operating the business.
Clean Sweep
By Natasha Emmons
Looking to clean up? Check out the opportunities that came outin the wash in a recent survey commissioned by Memphis,Tennessee-based cleaning franchisor ServiceMaster.
Half the 700 U.S. households polled by Message Factors Inc., aMemphis, Tennessee, market research firm, use professional cleaningservices for some projects. Fifty-one percent of homecarpet-cleaning jobs go to outside companies--more than any othercleaning service. Rugs, however, are the least likely to receive aprofessional sprucing up, at only 20 percent.
Southwesterners were least likely to hire a professionalcleaning service, while the Western region likes its textiles tidy,spurring above-average drapery and furniture/upholstery cleaning(see "Neat Notes," left). Age matters little in who hirescleaning professionals: Respondents over age 50 are only slightlymore likely than younger respondents to hire dust busters. Rather,income emerged as the deciding factor, with 51 percent ofrespondents who earn $75,000 or more per year using cleaningservices vs. only 25 percent of households earning less.Entrepreneurs, start your vacuums!
Neat Notes
A growing percentage of Americans are relying on professinalcleaning services:
Northeast Midwest Southeast SouthwestWest
Carpets 49%* 49 57 43 58
Draperies 26 42 39 26 56
Rugs 24 16 23 10 25
Furniture/ 27 30 33 21 39
Contact Sources
Caring Companions, 5353 Wayzata Blvd., #510, Minneapolis,MN 55416, (888) 227-3077
Certa ProPainters, 4238 Arlington Heights Rd., ArlingtonHeights, IL 60004, (847) 604-0409
Complete Video Services, 6821 Kitty Hawk Cir., Pensacola,FL 32506, (904) 453-3422
CruiseOne Inc., (800) 892-3928, ext. 219, http://www.cruiseone.com
Krispy Kreme Doughnut Corp., http://www.krispykreme.com
Merle Norman Cosmetics, 700 Haywood Rd., #220,Greenville, SC 29607, (864) 297-1753
ServiceMaster, 860 Ridge Lake Blvd., A2-1834, Memphis, TN38120, (901) 684-7607
Tunes N Technology, 116 E. First St., Fosston, MN 56542,(218) 435-2126
Valvoline Instant Oil Change Franchising Inc., 3499Dabney Rd., Lexington, KY 40509, (800) 622-6846
