DailyFranchiseNews.com

Bypassing the Corporate Rat Race

With entry-level corporate positions few and far between these days, many new entrants to the business world are turning to franchising and building a future with a different kind of venture: their own.

Reuters reported Neil Ehrlich, 23, is one of those individuals. He owns and operates an Express Oil Change franchise in a suburb of Austin. "I'm the youngest franchisee in this chain," says Ehrlich, who graduated with a business degree from Sonoma State University in May 2008, just as the recession was kicking into full swing. "I love the challenge and I can't wait to see what happens." Ehrlich, whose entrepreneurial bent began at the tender age of 14 when he helped start up a contracting firm, always knew he wanted his own business. He and his father, a corporate executive, spent a good part of Ehrlich's junior year in college researching franchises in the automotive service sector, including Meineke, Midas and Jiffy Lube, before making their selection. He says they were impressed by Express Oil's commitment to supporting its operators.

Throughout the country, more twentysomethings are considering franchising as an alternative to the corporate grind or riskier notions of starting an independent business. "Consistently year over year we're seeing a gradual increase in younger franchisees in our system," says Maribel Guiste, vice president of franchise operations for Toronto-based WSI, short for We Simplify the Internet. The company operates a global franchised network of some 1,500 one-stop-shops that provide Web consulting and development targeted at small to medium-sized companies. In 2008, about 8 percent of WSI's operators were under the age of 30, up from just 2 percent in 2006, says Guiste, who estimates an increase to more than 12 percent this year. She says members of the so-called Generation Y and Millennial sets are particularly well-suited for the company's business model because they have grown up with a natural degree of comfort in the virtual world. "Because we're an Internet marketing company, they get this," she says, adding that many in the age bracket are more confident and focused than their predecessors. "They're so in tune. They do it easily."

The time-tested operations of franchise systems seem to work in their favor. Franchises, whose corporate managers define strategic direction for all operators, foster the entrepreneurial spirit while also establishing parameters for what works and what doesn't. Those guidelines are important for those cutting their chops for the first time. Greg Meyer, the 26-year-old owner of a CertaPro Painters franchise outside St. Louis, says such a structure helped him develop business acumen. Meyer, who has been painting homes since he was a teen, brought solid technical skills to the table, but says he lacked some of the knowledge necessary to keep a business on the growth track. "I saw that a franchised system would fill in the missing pieces that would make me successful," says Meyer, who graduated from the University of Missouri with a degree in marketing. "It puts you in an environment around other franchisees."

Fake Can Be Great!

No, we’re not talking about personalities here…we’re talking about tans!

TLC’s Slice of Life blog reported that with the increased attention on the risks of traditional outdoor and indoor tanning, sun worshipers are seeking other ways to keep their bodies bronzed. There are several ways to do this – professional spray tans, booth spray tans, self-tanners and makeup/bronzers, to name a few – but in order to make the color last as long as possible, follow these tips from Todd Beckman, founder of The Tan Company:

1) Wait at least four to six hours before showering or swimming
2) Use moisturizer daily
3) Avoiding exfoliation until your next session
4) Stay away from salt water and chlorine

To Tan or Not to Tan?

By now, everyone has heard about the recent Associated Press report which deems tanning beds as deadly as arsenic and mustard gas. But what do those in this $5 billion industry have to say about it? One tells the St. Louis Post-Dispatch that he doubts the claims will hurt business.

"These reports have been coming out since I got in the business in 1984. This is very usual this time of year [but] there is no proof a tanning bed causes cancer," said Todd Beckman, chief executive officer of The Tan Company, a Fenton, Mo.-based chain with over 70 U.S. locations. He said that there isn't any way to discount the amount of time people have been exposed to natural sunlight and that there are other considerations like hereditary factors and environmental influences which should be taken into account. "We've all been outside since we were toddlers.”

Dan Humiston, president of the Washington-based Indoor Tanning Association, disputed the findings as well – so much so that the group is running a full-page ad in today's New York Post condemning the "hype" related to the article. "A sunburn is bad for you. Everybody knows not to get a sunburn. But that's a benefit of professional tanning salons," said Humiston, who lives in Buffalo, N.Y. "We reduce your risk to overexposure because we control your environment."

What are YOUR thoughts, DFN readers?

The Right Way to Tan

Independence Day weekend is almost here, which means countless individuals will be hitting the beach to soak up some sun and have some fun. Before setting foot on the sand, however, consider the effects those UV rays can have on your skin.

"There's been much debate over the 'right' amount of UV exposure but despite statistics, many people still want that summer glow," said Todd Beckman, founder and CEO of The Tan Company, one of the fastest growing tanning chains in the U.S. "Research shows that vitamin D plays a huge role in overall health and those with low vitamin D levels have double the risk of dying from heart disease and other causes over an eight-year period. However, this is a clear case of where you can get too much of a good thing. It's imperative to take precautions any time you tan, especially when skin hasn't been exposed to UV rays in some time like this long winter. Protecting your skin during indoor and outdoor exposure should be your number one priority no matter your age."

Here are some tips from Beckman and his network of certified skincare consultants on tanning the right way this Independence Day weekend:

1. Slather on sunscreen. Apply a lotion with at least SPF 15 a minimum of 30 minutes before exposure and reapply after swimming or towel-drying - even if the product is waterproof.

2. Protect eyes and lips. Closing your eyes while tanning isn't enough; opt for FDA-compliant eyewear instead. The same goes for lips: They produce less melanin so slick on balm with SPF every time you tan.

3. Build a base. To ensure an even tan, begin by exfoliating skin and consider a few initial indoor tanning sessions: The gradual exposure can prevent a painful sunburn.

4. Note medications and family histories. Certain medications can increase the likelihood of a burn. Discuss their possible effects as well as any abnormal moles or family history of skin cancer with your physician before UV exposure.

Photo: Tan Company founder and CEO Todd Beckman.

Lay Back and Relax with MassageLuxe

Did you know that according to the 2007 American Massage Therapy Association Consumer Survey, almost a quarter of all adult Americans (24 percent) had a massage at least once in the last 12 months and 34 percent of adult Americans received a massage within the last five years. That’s a lot of people that enjoy their relaxation – good news for Todd Beckman and his latest venture.

Looking Fit magazine reported that Beckman, the founder of St. Louis-based The Tan Company – a tanning franchise that’s grown to over 70 U.S. locations since its inception in 1994 – has embarked on a complementary path with MassageLuxe. He had the idea after a mediocre massage experience in 2007 and decided to take matters into his own hands, so to speak. “I thought we could do massages so much better,” Beckman recalls. “It was the same thing I thought about before getting into the tanning industry 14 years ago. Recognizing the fragmented nature of the massage-therapy industry, I saw a great opportunity to bring premier massage services to markets all across the country.” So, in April 2008, Beckman developed MassageLuxe, a massage-therapy spa that offers affordable yet high-quality massages in an upscale environment. Beckman started the first MassageLuxe in Rock Spring, Mo., and introduced the business model to his current franchisees. As he says, “tanning and massage are a perfect fit because they attract the same type of audience.” The company now expects to have 10 percent of The Tan Company franchisees adding MassageLuxe, contributing toward a goal of 400 MassageLuxe locations either open or in development nationwide by the end of 2012.

Katie Burland Gross, a franchisee for The Tan Company, is currently in lease negotiations to open her first MassageLuxe in Brentwood, Mo., just west of St. Louis. Gross, who had been a tanning franchisee for several years, explains that the strategic similarities between The Tan Company and MassageLuxe drew her to the concept. “The fact that MassageLuxe would be membership-based, customer service-oriented and have comparable marketing strategies to that of The Tan Company increased my comfort level even more. After learning of the multiple health-related benefits and the staggering increase in the massage-therapy industry, I was positive this was the right move.” 

Photo: Todd Beckman and Katie Burland Gross.

Stress Happens

According to a recent study, the first day back at work after New Year’s is the most stressful day of the year. This makes sense (the holidays are over, resolutions are in place, it’s January and usually very cold) but what about those other times when you need a little relief? Thankfully, help is here and it looks like it's here to stay.

Franchise Times reported that when discretionary income becomes scarce, people start cutting back on things they deem luxuries and the challenge for personal-care franchises is to find ways to convince customers facials, massages, regular haircuts and tanning are necessities that should be part of their budgeted expenses. So far, the industry appears to be holding its own and concepts like The Tan Company, Facelogic, Elements Therapeutic Massage and Knockouts are flourishing. 

Todd Beckman, founder of The Tan Company says his franchisees are reporting good sales. "Our same-store sales have really been holding their own. We're pretty happy with them," he said. Beckman opened a second concept last year, MassageLuxe, as a complement his 80-unit tanning chain. Its first franchisee opened in St. Louis and there are approximately 100 in development. He doesn't believe massage therapy is discretionary spending anymore, either. "It's something they don't want to do without. It makes them feel so much better," he said.

NO MORE EXCUSES! Anytime Fitness stays open late so people can work out at all hours

With January already half way over, many people are trying to hold onto their New Year's resolutions for dear life. Two weeks ago people were more motivated than ever to get fit.  But once the novelty has worn off and the reality of busy schedules settle in, so do the excuses. “I’m just too busy” or “I don’t have enough time.” Sound familiar?  People better enjoy those excuses while they can because 24-hour gyms like Anytime Fitness are opening all over the country.

The Beloit Daily News today has a story on the city's new Anytime Fitness which already has 150 members. Since 2002, when Anytime Fitness began franchising, the company has sold over 640 locations and projects to open upwards of 800 more. This means the time challenged are going to have to get creative with their excuses because with so many locations and convenient hours, people are going to run out of reasons for skipping the gym!

Home Care Services are Still Booming—Thanks to Boomers!

According to the Sioux City Journal, non medical home care services are still on the rise.  This blogger is a boomer and for sure when Subway only had 140 stores we did NOT see this type of franchise on the horizon!  However, there are now several and they each have a few unique features, but all in all, the concept caters to boomers and others who work all day and need help caring for elderly family members, for just one example. From transportation to doctors appointments, help with prescriptions and simple house chores to daily companions – many people need an extra hand at home and this has become big business for smart franchisors.

Home Instead, Comfort Keepers and Synergy HomeCare are just a few leaders in this industry.  Synergy HomeCare, founded in 2002 by Peter Tourian, began franchising in 2005 after experiencing explosive growth in its home state of Arizona. Fueled by the aging of the nation's 76 million baby boomers who will begin retiring in the next few years, the Bureau of Labor Statistics estimates the home health industry will increase by more than 55 percent between 2002 and 2012.  More than 50 million family members currently care for a chronically ill, disabled or aged family member, according to the National Family Caregivers Association.

Beauty Remains Big Business in Franchising

The number of new franchisors in the “beauty” arena says a lot about us as a society but skincare, hair salons and tanning outposts are becoming big franchise businesses.

Women probably won’t like the idea of their husbands getting their hair cut by bikini-clad stylists, but a handful of new chains are betting men will flock to their salons in droves.

Paradise Cuts (right), Knockouts and Sports Cuts are a far cry from your franchised salons of the past (think Fantastic Sams, Great Clips, Hair Cuttery). These "men's" salons offer much more than a haircut you would receive at the neighborhood barber. Paradise Cuts features women in bikinis in a beach themed environmment and while the Washington, D.C. area chain is not franchised, it may be down the road. For those looking to buy into a similar concept, there's Knockouts where men can receive haircuts from women in boxing shorts and have free rein of the remote control and Sport Clips where female stylists are trained to "talk sports" to their male customers.

Today's Washington Post features an article about this niche and includes a hilarious quote that speaks volumes about our priorities.  Paradise Cuts co-founder Rudy Lilly said, "Life's too short for an ugly barber."