Category Archives: Franchise Business News

Articles, blog entries and other tidbits you need to know to keep yourself up to date on the industry.

From Freeing Your Toes to Freeing You From Stress

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The CEO of one of our long-time clients, Flip Flop Shops, gave us a shocking and abrupt scare last year when we learned he was to undergo open heart surgery. While serious surgery is shock enough, Brian’s age made it more astonishing: he was only 38.

Now fully recovered, Brian has taken the time to examine what motivated his necessary, lifesaving surgery. After great introspection, he’s realized that the fast pace of entrepreneurship and a successful corporate career is nothing without health.

Through “Heart to Sole: Creating a Stress-Free America” Brian and Flip Flop Shops are dedicated to “freeing your toes” and to freeing your workplace of stress.

 

Stress, Work and Heart Disease: One Company President’s Mission to Stop the Madness

Flip Flop Shops teaches Americans to “Pace” Not “Race”; Offers Five Tips to Slow it Down

ATLANTA (March 18, 2013) – It took a recent scare involving lifesaving open-heart surgery at age 38 to make Brian Curin realize that stress – most likely from a previous, fast-paced career – had taken its toll on his relatively young heart. But because he had been in fast mode, he missed the signs – until it was nearly too late.

 

Never known to do anything small, the President and Co-Founder (Size 10) of Flip Flop Shops has embarked on a massive, passionate mission – alongside the American Heart Association (AHA) – to help Americans reduce stress, a common link to heart disease. Through “the Heart To Sole: Creating a Stress-Free America” campaign, officially launched last month, Curin has pledged to help the nation create a more balanced lifestyle, and is raising money online and at Flip Flop Shops locations to support the AHA’s My Heart. My Life. ™ healthy living initiative.

 

The Heart To Sole campaign’s overall message is: “pace” not “race.” The theme fits well with the Flip Flop Shops brand personality, which encourages a Free Your Toes® mentality and a balanced, active lifestyle.

 

“It’s no secret that Americans work longer days, take less vacation and retire later than any other country in the world,” Curin said. “With stress playing a role in so many different diseases and accounting for more than half of the country’s healthcare-related expenses, it’s time to take stress reduction seriously.”

 

Flip Flop Shops offers the following five tips to reduce stress at home and in the workplace:

 

1)       Schedule “You” Time – It’s easy to get caught up in pleasing everyone else – your boss, your co-workers, your wife, your kids. Making time for you will alleviate stress big time. What do you like to do? Make sure you do something solely for yourself at least once a day even if it’s just for 15 minutes.

 

2)       Laugh … a lot! – A simple laugh can go a long way. Laughing enhances your intake of oxygen-rich air and stimulates your organs, circulation and aids in muscle relaxation. So next time you feel stressed, find your favorite comedian on YouTube or visit a funny co-worker. Is there a photo that always makes you laugh no matter what? Keep it in your drawer and pull it out when needed.

 

3)       Get Moving – Any form of exercise will act as a stress reliever, and being “too busy” is no excuse not to get moving. Exercise is proven to boost endorphins and for some people, acts as an opportunity for meditation. Regular physical activity may improve sleep, increases self-confidence and lowers symptoms of depression and anxiety – all things that correlate to stress levels. You can fit exercise into every day even if you only have a 10 minute break that reduces sedentary time such as taking a brisk walk, running the stairs in your office building or doing jumping jacks in place.

 

4)       Slow it Down (“Pace” Not “Race”) – Life is not a race, so why rush? Slow down and your stress levels will drop significantly. Leave plenty of extra time to get places. Plan ahead for work deadlines so you are not always cramming under pressure. Even simple tasks like eating … slow down and enjoy your food. Take a moment to enjoy the company of those around you at work, your family, or a quiet night at home.

 

5)       Just Do It! – While it might feel good to put off a task that you don’t feel like doing, procrastination eventually catches up with you and creates tremendous stress. Piles of work and lengthy to-do lists that never get crossed off are huge stress triggers. Try to get important tasks done in a timely, efficient manner. Keep your desk and your inbox clean at all times and keep checking things off the list. When you find yourself putting something off, stop yourself. Use a post-it note that says, “just get it done!” as a constant reminder.

 

About the Heart To Sole: Creating a Stress-Free America Campaign

Starting last month, customers who donate $5 to the campaign through www.FlipFlopShops.com will receive 20 percent off their next online purchase. In June, during Flip Flop Shops’ newly declared “Stress-Free America Month,” Flip Flop Shops customers can make donations at the register in increments of $1, $2, and $5. Plus, Flip Flop Shops will donate $1 for every pair of SANÜK Yoga Mat or Beer Cozy flip flops purchased throughout the month. For more information about Flip Flop Shops and “the Heart To Sole” campaign visit the company’s Facebook page at https://www.facebook.com/FlipFlopShopsFanpage. More information on reducing stress can be found on the American Heart Association website.

 

About Flip Flop Shops

Founded in 2004, Flip Flop Shops is North America’s first retail chain exclusive to the hottest brands and latest styles of flip flops and sandals from big names such as SANÜK, REEF, Cobian, Quiksilver, ROXY, OluKai and Cushe. Flip Flop Shops began franchising in January 2008 and continues to be recognized by industry leaders as one of the fastest-growing franchises and retailers in the nation. Company accolades include: the International Council of Shopping Centers’ prestigious “Hot Retailer Award” and ranking No. 170 in the 2012 Inc. 500 | 5000 list of fastest-growing private companies in the United States, as well as the sixth fastest-growing franchise and ninth fastest-growing retailer in the nation.

 

Growing the brand to more than 70 shops in operation and 110-plus in the development pipeline, the executive team boasts more than 50 years of franchise experience building and growing some of the world’s fastest-growing franchise concepts, category leaders and some of the world’s most well-known brands, including Cold Stone Creamery, Moe’s Southwest Grill, Nike and OfficeZilla.com. The lifestyle franchise is an Environmentally Responsible Retailer™ encouraging the nation to Free Their Toes®. For more information on the franchise opportunity, visit http://franchise.flipflopshops.com/.

 

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At a Glance: Franchise and Small Business Situation in America

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First, the election. Then, the Fiscal Cliff. Now, as the nation faces the repercussions of the proposed sequestration, franchise and small business owners prepare themselves for what may or may not happen next. Here’s a look at the good, the bad and the undecided for franchise and small business owners across the U.S.

 

THE COULD GO EITHER WAY:

 

Several industry experts feel the sequestration could severely hit small business owners, which includes franchisees, harder than other businesses because of their dependence on the local economy and, in some cases, government spending.

 

Why is this a concern? Well, for the most part small businesses are specialists– they’re not the Proctor & Gambles of their communities. You would be hard pressed to find an accountant who also happens to share his office with the dry cleaning franchise he owns. Also, small businesses are often hired on a contractual basis for government projects. If and when government spending is significantly reduced small businesses contracts could be among the first to go. In turn, small businesses often have a harder time securing lines of credit. As we saw during the Great Recession, that becomes even harder when economic times are tough.

 

If the sequestration does happen, that could result in $35 billion in payroll costs and $50 billion in procurement expenses. Those added expenses could result in 1.4 million lost jobs for the private sector, half of which would come from small business and franchise owners.

 

Groups supportive to small businesses, like the Small Business Administration, would have to scale back programs turning away an estimated 33,000 small business owners looking for help and guidance.

 

On the other hand, members of the National Federation of Independent Business (NFIB), feel it is impossible to predict what will actually happen and that, most importantly, a large percentage of small businesses do not work in for or in concert for the government.

 

THE GOOD:

 

The Franchise Business Index (FBI), which indicates the health of the franchise industry, increased 0.7 percent in January, a 2.1 percent rise from January of last year. Nearly all components (listed below) improved.

 

In a statement released by the IFA, association President & CEO Steve Caldeira commented that, “The uptick in January is reflective of pent-up demand for growth felt by many franchisors and franchisees who held back on investments in the second half of 2012 because of the uncertainty surrounding the Fiscal Cliff.”

 

The IFA expects to add over 10,000 new establishments and 162,000 new jobs this year.

good time to buy a franchise

MORE GOOD:

 

Finding adequate sources of capital has plagued the franchise industry and other hopeful small business owners. Now, thanks to the dramatic increase in deposits, banks are more liquid and desperate for growth. (Aren’t we all?) Commercial and industrial loans were up 4.4 percent in the fourth quarter and up 16 percent overall in 2012. Competition amongst banks has made the loan environment more palatable for small business owners as bank loan rates decrease.

 

 

Current Policy Agenda for the International Franchise Association

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In a recent luncheon meeting the IFA’s CEO and President Steve Caldeira announced the International Franchise Association’s policy priorities for 2013: tax reform, health care, labor relations, immigration and activism.

 

TAX REFORM

The franchising industry has been extremely vocal about the fiscal issues facing the U.S. as it pertains to small businesses, like franchises, that operate as pass-through entities. The rise in income tax rates for high income earners will greatly affect franchisees, especially those who own and operate multiple units. Consumers now shoulder a 6.2 percent Social Security payroll tax, which has reduced take-home pay by 2 percent or more.

 

Caldeira was among those small business advocates and representatives present at a meeting with Gene Sperling, director of the National Economic Council, to discuss the tax concerns of small businesses.

 

HEALTH CARE

Many small businesses, particularly franchises, are dreading the 50 employee threshold of the Patient Protection and Affordable Care Act that will become law in 2014. Steve Caldeira is seeking to change the mandate, as it would prove expensive for franchisees who operate establishments with 50 or more full-time employees.

 

LABOR RELATIONS

As a major player in the Coalition for a Democratic Workplace, the IFA has helped to neutralize various election-related legislation. Now, Caldeira’s objective is to protect the franchise industry against the National Labor Relations Board. The IFA’s CEO cited micro-unions, small bargaining units carved out for workers in departments of large institutions, as a specific opponent.

 

IMMIGRATION

The IFA is currently advocating policies that would expedite visas for workers.

Praise For Franchise Buy From Chyten Franchising, Inc.

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We’ve done it again folks! We couldn’t be more pleased that one of our clients is this kind of happy:

“Wow.  In a matter of a couple of weeks, we have quadrupled our lead flow (versus other .com franchise portals) with the addition of the FranchiseClique.com and FranchiseBuy.com franchise lead portals.  I’ve been in the franchise industry for 22 years now with major brands, and when I state that this site(s) produces, I know from years of experience.  We are a small franchise company with 40 units open to date;  I didn’t think we would draw the candidate interest of the major brands I’ve worked for….this was key to us, and it “clicked” immediately.  Our leads have been ‘qualified’ too.  Not the usual tire kickers.  In addition, my representative from this company (Guy Norcott) far exceeds my service expectations, which is important to me.  He proactively keeps me well informed at all times how to increase exposure.  Enough said…I highly recommend FranchiseClique/FranchiseBuy”.

– Randy Blue, Director of Franchise Development

Chyten Franchising, Inc.

AMEX Excludes Franchises From Small Business Saturday

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“With every dollar we spend, we cast a vote.”

 

My economics teacher used to repeat this whenever the question of spending came up. If only it really were that simple. She was right, though, in that with every purchase we make (and don’t make) we vote businesses on and off of America’s economic island. The holiday season is a retailer’s chance at surviving the tribal council.

 

As I’m sure many of you in the franchise industry have heard, American Express (AMEX) excluded franchises from participating in Small Business Saturday this past weekend on November 26, 2011. While many are understandably upset about the exclusion of their business from AMEX’s economic initiative, the situation opens the door to several important questions, including but not limited to where franchising fits into America’s spending psyche.

 

Many blogs, articles and forums have focused how this happened and how it can be remedied next year. I’m personally more interested in why it happened. If the franchise industry can figure out what inspired AMEX to exclude an entire industry, in which many businesses in my opinion qualify as small businesses, perhaps the thought process behind the decision can be resolved as opposed to simply the situation.

 

First and foremost, while the success of fast food franchises has certainly helped the industry as a whole, it hasn’t helped the industry’s reputation as a small business job creator. The general public most likely doesn’t understand what franchising truly entails. The term “franchise” often conjures images of McDonald’s golden arches, not mom and pop independently owned businesses.

 

The term “franchise” should first make us think of an agreement rather than a fast food restaurant. For those who don’t know, the franchise agreement is made between two parties: the franchisor and the franchisee. The franchisor lends his trademark or trade and accompanying business model to the franchisee who in turn compensates the franchisor with a royalty fee, and often an initial fee, for the right to do business under the franchisor’s name and use of the business model. In some cases, but not all, the franchisor takes responsibility for creating marketing materials and implementing marketing strategies to further the success of the franchise. That being said, marketing isn’t free and may factor into the franchise’s royalty fee.

 

Aside from the extraneous fees, franchises aren’t so different from small businesses. They are are owned and operated by the same kinds of people as small businesses. They serve and employ the same local residents. Lately, they’ve been facing the same economic challenges. It’s understandable why so many franchisees and franchisors are upset.

 

We’re all, consumers and businesses alike, pinching pennies right now. There certainly isn’t much profligate spending happening this holiday season. The Wall Street Journal hinted that only 29 percent of small businesses are able to give year end bonuses this year. As I said before, every dollar we do or do not spend really matters.

 

From what I’ve read and heard, marketing has been another issue within the franchise exclusion situation with AMEX. AMEX’s Small Business Saturday offered $25 dollar credits to shoppers who shopped at qualifying establishments, those independently owned and operated businesses that don’t have the budget for national marketing campaigns. These credits didn’t extend to those who supported chains or franchises during Small Business Saturday.

 

Then again, it’s an understandable mistake. For those of us who are part of the franchise industry that may be difficult to digest. While we recognize the hard work and long hours franchisors and franchisees put into their respective roles, many outsiders can’t see beyond the brands and logos we have pushed to make mainstream.

 

It is my hope that next year AMEX helps the franchise industry’s small business owners financially by including them in Small Business Saturday. I also hope AMEX helps the franchise industry’s reputation by putting a Main Street face on mainstream logos, so everyone, including industry veterans, remembers who’s behind the cash registers and counters.