You are on page 1of 84

E NT RE P RE NE UR’ S START UP S

START
New
Business
Ideas
P.16
How to
Beat Big
Competitors
P.10

YOUR
START YOUR OWN BU S INE S S

Inventors: Why
Wham-O Poke Bars Are
Wants You! Booming
P.36 P.66

OWN
The
Guide to
Bootstrapping
P.22
Power Up
Your
Emails
P.18

BUSINESS
Hottest Spend Time
Franchises Like You
S UM ME R 2 0 1 8

to Buy Spend Money


P.49 P.80
Summer 2018
DISPLAY UNTIL 9/17/18
CONTENTS
FEATURES
SUMMER 2018

30
36
THE INVENTORS’ HIT
42
SHE’LL DO IT HER WAY
66
FRANCHISING’S BIG
MACHINE IS BACK Women have increasingly NEW THING: RAW FISH
Wham-O made its name on turned to franchising to take Poke restaurant concepts
quirky toys sourced from charge of their careers as have exploded nationwide.
inventors’ garages. Now it’s well as their lives. But will the trend last?
OPPORTUNITY IS primed to produce a new BY KRIS FRIESWICK BY BOYD FARROW
EVERYWHERE! generation of wacky ideas.
Two friends take a vaca- BY JOE KEOHANE
tion to Mongolia, get stuck
for a month in the middle
of nowhere, and then
concoct a better way to
buy raw cashmere. The
$45 million apparel brand
came three years later.
BY ADAM LAUKHUF
P H O T O G R A P H C O U R T E SY O F N A A D A M C A S H M E R E

pg. 30
Unlikey cashmere
kings Diederik
Rijsemus (left) and
Matt Scanlan.

S TA R T U P S S u m m e r 2 0 1 8 1
CONTENTS

pg. 28
Fridababy’s queen
of snot, CEO
Chelsea Hirschhorn.

DEPARTMENTS
07
TRANSITION
16
GET STARTED
20
TEAM
28
DEVELOPMENT
74
FRANCHISE
A men’s yoga brand CEOs share six business When your staf knows Necessity was and is SUCCESS
pivots after discovering ideas they wish some- the company better than the mother of new baby What’s it like running a
it misunderstood males. one, somewhere would you do, you should listen. products for this mom. business with family?
BY BOYD FARROW bring to market. BY JASON FEIFER BY JOE KEOHANE These duos can tell you.
P H O T O G R A P H BY J E F F O L S O N

10
OPPORTUNITY
18
MARKETING
22
MONEY
49
THE LIST
80
BACK PAGE
Startups can proit How to turn your No money? No problem! Entrepreneur’s top 10 You can’t do everything,
hugely when their giant email signature into a These bootstrappers franchise categories but you can do more than
competitors fail. lead generator. built companies without of 2018. you think you can.
BY KRIS FRIESWICK BY BLAIRE BRIODY pursuing investors. BY TRACY STAPP HEROLD BY JASON FEIFER

2 S u m m e r 2 0 1 8 S TA R T U P S
PROTECTED
I N T H E FAC E O F T H E U N E X P E C T E D

Customized business insurance for more peace of mind


As a small business owner, you know irsthand that each day can bring its
challenges. With over 30 coverage options for customized insurance, we can
ProgressiveCommercial.com
build a policy that’s tailored for your business—from a full line of Commercial
Auto insurance to General Liability, Workers’ Compensation, Business Owners
policies, and more. Because when your unique business needs are covered,
you can focus on what matters most—running your business.

Progressive Casualty Ins. Co. & afiliates. Business and Workers’ Compensation coverage provided and serviced by afiliated and third-party insurers.
EDITOR IN CHIEF Jason Feifer
CRE ATIVE DIRECTOR Paul Scirecalabrisotto
E XECUTIVE EDITOR Joe Keohane
PHOTO DIRECTOR Judith Puckett-Rinella

EDITORIAL BUSINESS ENTREPRENEUR MEDIA NATIONAL


ADVERTISING SALES OFFICES
MANAGING EDITOR Grant Davis CEO Ryan Shea
SENIOR EDITOR Stephanie Schomer PRESIDENT Bill Shaw NEW YORK CITY (212) 563-8080
REGIONAL SALES MANAGER
SPECIAL PROJECT S EDITOR Tracy Stapp Herold CHIEF RE VENUE OFFICER James Clauss
COPY CHIEF Stephanie Makrias Justin Koenigsberger
CHIEF OPER ATING OFFICER EASTERN ONLINE SALES MANAGER
COPY EDITOR Shayna Sobol
Michael Le Du Brian Speranzini
RESE ARCH Carol Greenhouse
ASSOCIATE PUBLISHER /MARKE TING CHICAGO (312) 897-1002
MIDWEST DIRECTOR STRATEGIC PARTNERSHIPS
Lucy Gekchyan
Steven Newman
DESIGN NATIVE CONTENT DIRECTOR
Jason Fell DETROIT (248) 890-8888
PRODUCTION MANAGER Monica Im MIDWEST ADVERTISING DIRECTOR
CONTRIBUTING ART DIRECTOR Nancy Roy INTEGR ATED MARKE TING MANAGER Lori K. Flynn
Wendy Narez
CONTRIBUTING WRITERS ATLANTA (770) 209-9858
SOUTHERN ADVERTISING DIRECTOR
Blaire Briody, Boyd Farrow, Kris Frieswick,
Kelly Hediger
Adam Laukhuf, Amy Wilkinson MARKETING
LOS ANGELES (310) 460-6900
VP, INNOVATION WEST COAST SALES MANAGER
ENTREPRENEUR.COM Deepa Shah Richard L. Taw
SENIOR MARKE TING
EDITORIAL DIRECTOR Dan Bova
& ACCOUNT MANAGER
NE WS DIRECTOR Stephen Bronner Hilary Kelley FR ANCHISE AND BUSINESS
SPECIAL PROJECT S DIRECTOR Andrea Huspeni OPPORTUNITIES
INSIGHT S EDITOR Liz Webber ADVERTISING SALES
CONTRIBUTORS EDITOR Peter Page ENTREPRENEUR PRESS VP, FR ANCHISE Paul Fishback

ASSOCIATE EDITORS Lydia Belanger, EDITORIAL DIRECTOR SENIOR DIRECTOR FR ANCHISE SALES
Hayden Field, Matthew McCreary, Joan Oleck Jennifer Dorsey Brent Davis
STAFF WRITER Nina Zipkin SALES AND MARKE TING DIRECTOR DIRECTOR FR ANCHISE SALES
Vanessa Campos Simran Toor
SOCIAL MEDIA EDITOR Andrea Hardalo (949) 261-2325, fax: (949) 752-1180
AD OPER ATIONS DIRECTOR Michael Frazier MARKE TING SPECIALIST
PRODUCT S AND SERVICES ADVERTISING
Danielle Brown Direct Action Media,
DIGITAL SALES MANAGER Jenna Watson
Tom Emerson (800) 938-4660
AD OPER ATIONS COORDINATOR Bree Grenier
ADVERTISING PRODUCTION MANAGER
CHIEF TECHNOLOGY OFFICER Jake Hudson
Mona Rikin
PRODUCT DIRECTOR Shannon Humphries
CUSTOMER SERVICE
DIGITAL MEDIA DESIGNER Monica Dipres entrepreneur.com/customerervice EXECUTIVE STAFF
ENGINEER Angel Cool SUBSCRIP TIONS CHAIRMAN Peter J. Shea
FRONTEND ENGINEERS
subscribe@entrepreneur.com
DIRECTOR OF FINANCE Paul White
Warren Dugan, John Himmelman REPRINT S PARS International Corp.,
CORPOR ATE COUNSEL Ronald L. Young
SENIOR GR APHIC DESIGNER
(212) 221-9595, EntrepreneurReprints.com
VP, BUSINESS DE VELOPMENT
Christian Zamorano ADVERTISING AND EDITORIAL
Entrepreneur Media Inc. Charles Muselli
PROJECT MANAGER, DIGITAL PROPERTIES
18061 Fitch, Irvine, CA 92614 DIRECTOR OF BUSINESS DE VELOPMENT
Jim Rupe
(949) 261-2325, fax: (949) 752-1180 Gildardo Jimenez
ENTREPRENEUR.COM ACCOUNT & PRODUCT COORDINATOR
Sean Strain
Printed in the USA GST File #r129677027
FACILIT Y ADMINISTR ATOR
Rudy Gusyen

Vol. 33, No. 2. Entrepreneur’s Startups (ISSN 1533-743x) is published by Entrepreneur Media Inc., 18061 Fitch, Irvine, California 92614. Entrepreneur Media Inc. (“Entrepreneur”) considers its sources reliable and veriies as much data
as possible, although reporting inaccuracies can occur; consequently, readers using this information do so at their own risk. Each business opportunity and/or investment inherently contains certain risks, and it is suggested that the prospective
investors consult their attorneys and/or accountants. Entrepreneur’s Startups is distributed with the understanding that the publisher is not rendering legal services or inancial advice. Although persons and companies mentioned herein are
believed to be reputable, neither Entrepreneur nor any of its employees accept any responsibility whatsoever for their activities. Entrepreneur’s Startups is printed in the USA, and all rights are reserved. ©2018 by Entrepreneur. No part of
this magazine may be reproduced or transmitted in any form or by any means without written permission of the publisher. Unsolicited manuscripts and photographs will be returned only if accompanied by a stamped, self-addressed envelope. All
letters sent to Entrepreneur will be treated as unconditionally assigned for publication, copyright purposes and use in any publication or brochure, and are subject to Entrepreneur’s unrestricted right to edit and comment.

4 S u m m e r 2 0 1 8 S TA R T U P S
LOWCOST
FRANCHISE
AMAZING
REWARDS

CHOOSE KUMON TO FULFILL YOUR DREAMS OF


OWNING A SMALL BUSINESS.
Kumon is the after-school learning center where kids can start as young as 3 and stay through
completion of the program–at calculus and Shakespeare. If you value academic excellence,
find satisfaction in helping kids long term, and enjoy being part of a community, you’ll find
everything you’re looking for when you open a Kumon Center.

RANKED #2 FRANCHISE Entrepreneur magazine has ranked us the #2 Top Low-Cost Franchise
UNDER $100K under $100K. Our franchise fee is only $1,000!

We’ve been awarded the honor of being Entrepreneur’s #1 Tutoring


Franchise 17 years in a row, earning us the “Best of the Best” ranking.

With $19K in incentives, we are the education franchise to consider!

Talk with us today about opening your own business!

CALL 888.627.2115 EMAIL Franchise@Kumon.com


TEXT KumonBiz to 63975 VISIT KumonFranchise.com

For information on enrolling your child in Kumon, please visit Kumon.com

© 2018 Kumon North America, Inc. All rights reserved. This information is not intended as an offer to sell or a solicitation of an offer to buy a franchise.
We offer franchises solely by means of our Franchise Disclosure Document. The United States Federal Trade Commission and certain states have laws
governing the offer and sale of franchises. We will not offer you a franchise unless and until we have complied with all applicable legal requirements
in your jurisdiction.
YOUR
BIG
BREAK
Avg. Second Year
Total Revenue for Top Quartile

$656K Avg. Second Year


Net Income for Top Quartile

$108K
Contact Brynson Smith
877-224-4349
Franchising@uBreakiFix.com
*As published in Item 19 of our FDD dated May 16, 2018, these iJures represent the aYeraJe total reYenue and net inFome (total
reYenue, minus Fost of Joods sold and minus e[penses e[FludinJ interest, inFome ta[es, depreFiation and amorti]ation) for the
top Tuartile of 134 out of 326 franFhise-operated 8%5(A.IFI; stores that submitted unaudited proit and loss statements. Median
seFond year total reYenue for top Tuartile of stores Zas $654,665. Median seFond year net inFome for top Tuartile of stores Zas
$90,493. 7he data presented is from -an. 2014 throuJh DeF. 2017. 2f the stores inFluded in the top Tuartile for the seFond year,
15 (or 50%) attained or e[Feeded the aYeraJe total reYenue and 9 (or 30%) attained or e[Feeded the aYeraJe net inFome. 7he
bottom Tuartile year-2 aYeraJe total reYenue Zas $320,602 (median $349,890), and aYeraJe net inFome Zas $(437) (median
$15,545), Zith 20 stores or 63% of those in the Tuartile e[FeedinJ both aYeraJes. <ou should reYieZ our FDD for details about
these numbers. <our results may differ and there are no assuranFes you Zill do as Zell and must aFFept that risN.

**7his information is not intended as an offer to sell, or the soliFitation of an offer to buy a franFhise. If you are a resident of or
Zant to loFate a franFhise in a state that reJulates the offer and sale of franFhises, Ze Zill not offer you a franFhise unless Ze
haYe Fomplied Zith that appliFable pre-sale reJistration and disFlosure reTuirement in your state. 7his adYertisement is not an
offerinJ. An offerinJ Fan only be made in 1< by a prospeFtus filed first Zith the Department of /aZ of the 6tate of 1eZ <orN;
suFh filinJ does not Fonstitute approYal by the Department of /aZ.
Franchise Opportunities
TRANSITION

Vuori founder
Joe Kudla.

WHO’S YOUR
In the fall of 2008,
after years of beating
himself up playing
football and lacrosse,
Joe Kudla took up yoga. But he
couldn’t find much to wear. “Out
of 17 million people doing yoga,

AUDIENCE?
six million were men—the
P H O T O G R A P H BY M A R K T ES I

fastest-growing demographic,”
says the 40-year-old Kudla.
“Yet there was not one brand
targeting that market.”

A men’s yoga brand learns it needs to be flexible.


BY BOYD FARROW

S TA R T U P S S u m m e r 2 0 1 8 7
TRANSITION

Vuori’s yoga apparel for


men became a casual
fitness clothing smash.

It was a weird contrast to, say, sent it to every person who itness regimen.” ing its clothing as “lounge,”
suring, an activity for which had ever bought from Vuori’s He’d misunderstood the “travel,” and “training.”
Kudla says four million surfers website. Among dozens of retail aspect, too: Most guys, it The new strategy seems to
are served by 50 clothing questions, such as what denim turns out, don’t want to hang be working. Vuori’s retailers
brands. So Kudla did some brands they favored and what out at a yoga studio. “They get range from REI to surf shops,
napkin math, borrowed activities they enjoyed, he in and they get out; they don’t running outlets, and itness
$300,000 from family, friends, asked them to list the occa- stick around,” Kudla says. clubs. A second store in
and the bank, and, in spring sions for which they wore All this forced Kudla to learn Manhattan Beach, Calif.,
2015, launched the startup Vuori Vuori. What came back a valuable entrepreneurial opened this summer, and
(“mountain” in Finnish) to shocked him. Customers lesson: “I realized I had been Nordstrom now carries the
produce men’s yoga clothes— weren’t really using Vuori for making assumptions about the line. The company has 20
moisture-wicking, quick-drying yoga. “Running, which we’d potential customers,” he says. employees and is anticipating
tops, shorts, and pants. never even thought about, was Now he had to reassess Vuori’s 125 percent sales growth this
“Our plan was to create the top activity,” he says. Yoga entire strategy. People liked year. Next year, revenues
clothes to move and sweat in, was far down the list. the product, but tying it so should climb to between
but styled for everyday life, Kudla organized focus closely to one activity was $30 million and $50 million.
like Lululemon and others had groups of ex-colleagues, limiting its potential market. What’s more, this past
done for women,” Kudla friends, and people he’d grab “I thought, What we really spring Vuori branched out
explains. “We were the only in the gym, and the results should be doing is making great beyond men and launched
P H O T O G R A P H S C O U R T E SY O F V U O R I

one entering a growing niche. were the same. “Our ‘pivot or lifestyle clothing and letting the women’s wear—tops, bottoms,
Textbook marketing, right?” die’ moment was when we customers choose where they and shorts—inspired by
Wrong. Though Vuori’s realized that while female want to wear the stuf.” customers who said their wives
gear won plaudits from consumers might want to That’s why, although it has and girlfriends were raiding
specialist yoga retailers, sales identify as yogis, men really not ditched a single product, their wardrobes. It’s another
were slow. Soon he was don’t,” he says. Even if they’re Vuori is no longer a yoga brand. surprise discovery the brand is
burning through cash. doing yoga regularly. “Men Since the end of 2015, it has happily leaning into. Although
Kudla needed to igure out identify as surfer guys or been making what it calls Kudla now proceeds with
why his assumptions about his CrossFit guys, for which yoga “activewear, designed with hard-earned caution.
customers were so of base. So is just another tool used to West Coast daily life in mind.” It “It’s just a few items,” he
he wrote a questionnaire and supplement their overall celebrates versatility, categoriz- says. “We’re not Lululemon.”

8 S u m m e r 2 0 1 8 S TA R T U P S
OPPORTUNITY

LEAP OVER
Daniel Miller is at a
disadvantage. As the
cofounder of Empow-
ered Staffing, a bou-

YOUR MAJOR
tique recruitment firm in Evanston,
Ill., he has to go head-to-head with
giant rivals who have greater name

COMPETITORS
recognition and a bigger media
presence—not to mention resources
that his tiny team of seven will
never be able to match. To keep his
With the right mix of speed, timing, and pipeline filled, he has to get cre-
guts, smart founders can profit hugely from ative. When Miller kept seeing the
their gigantic rivals’ misfortune. same jobs being posted by one big
BY KRIS FRIESWICK rival over and over again, he
decided to find out why.

1 0 S u m m e r 2 0 1 8 S TA R T U P S Illustration Viktor Koen


®

®
OPPORTUNITY

After some sleuthing, he


discovered that his rival was
having problems. It was
assigning inexperienced
recruiters, who, Miller says,
weren’t getting adequate
training, to large client
accounts. As a result, the
candidate selection was
consistently missing the mark,
causing the job searches to
drag on and on.
Miller smelled an opportu-
nity. To ind out who his
rival’s client was, he copied
the language from the job
posting, googled the exact
words, and found the listing
on the client’s in-house career
site—verbatim, which was
part of the problem. (Good
recruiters, Miller says, know
how to tweak job descriptions
to attract the right talent.) He
reached out directly.
“I said, ‘I know you guys are
working with this irm,’” Miller
recalls. “‘I’d love to have a
chance to work with you. You
don’t pay us until you make
the hire. Compare our
candidates to theirs, and if you
like ours better, let us have a
chance to ill more positions.’”
The pitch worked, and
Empowered won the client’s
business. Miller went on to
poach a number of large
clients this way, including one

“IF COMPETITORS AREN’T SERVING—OR


that boosted his company’s

P H O T O I L L U S T R AT I O N BY I S T O C K P H O T O.C O M / N O M A D S O U L1
revenue by more than
$500,000 in a single year. CAN’T SERVE—CUSTOMERS WELL, YOU’RE
FEEL LIKE PROFITING from a
ON THE SIDE OF ANGELS IF YOU CAN.”
competitor’s woes is slightly
devious? “That’s capitalism,”
says Rita Gunther McGrath, tor created. Companies big and major music label sued particular kind of consumer’s
strategy consultant, professor small pull of the trick, and wedding videographers for needs. In January, for example,
at Columbia Business School, entrepreneurs at all levels can using unlicensed music in Bank of America announced
and author of The End of beneit from studying their videos posted online, the that it would begin charging
Competitive Advantage. “It’s tactics. Sometimes it’s purely licensing company Musicbed some customers $12 a month
smart. If your competitors psychological. Last year, for ofered free music to anyone for its previously free checking
aren’t serving—or can’t serve— example, as Uber upset who wanted to keep those accounts, a move expected
customers well, you’re on the consumers with a series of videos on the web. to hit low-income customers
side of the angels if you can.” scandals, Lyft got a boost by In some cases, the most particularly hard. That set
The key, it seems, is to presenting itself as the nicer vulnerable companies are the Andrei Cherny, cofounder and
present yourself as a solution company. Other times, it’s by biggest ones; after all, they’re CEO of the 3-year-old online
to the problem your competi- acting as the hero. When a more likely to overlook a bank Aspiration, into motion.

1 2 S u m m e r 2 0 1 8 S TA R T U P S
OPPORTUNITY

He launched a Valentine’s
Day–themed promotion “COMPANIES THINK THEIR OBJECTIVE
called “Break Up with Bank of
America,” ofering to pay $12 a
IS TO KILL THE COMPETITION, THAT IT’S
month to any Bank of America THE PATH TO PROFITABILITY. THAT’S
customers who opened one
of Aspiration’s free online,
NOT THE OBJECTIVE. IT’S TO SUCCEED.”
high-interest checking or sav-
ings accounts. The company’s
low of former customers to Miller saw her tactic. She be based on how much eager to shop but didn’t need
Aspiration jumped 25 percent. founded the eco-friendly merchandise was purchased a registry.
“We’re using this moment to baby-gear seller PeuroBaby from the registry.) Her The idea of honoring
capture the public’s attention, and was handed a big announcement was covered in another brand’s gift cards may
to say that you don’t have to be opportunity when the the New York Post and sound prohibitively expensive,
satisied with a inancial high-end baby-gear store attracted 200 veriied but PeuroBaby’s promotion
institution that proits the most Giggle went bankrupt in 2017. registries, worth more than has proven surprisingly
when you do the worst,” She ofered to honor Giggle $200,000 in potential sales. cost-efective. “We are out of
Cherny says. “It’s less about gift cards—which were Even eight months later, Miller pocket a total of $1,000,” Miller
taking advantage of competi- technically worthless—if the still gets 10 to 20 inquiries a says. “But that has more than
tors’ stumbles and more telling customer opened a registry on week about the program. In been made up by the registry
people what we’re about.” her site. (The amount addition, she acquired 250 sales.” Although the small
That’s also how Marina honored, up to $200, would new customers who were online store, which launched

Earn a franchise
with NO FEES.
Unheard of, right?
At Town Money Saver, we’re about
rewarding excellence. If you have
strong sales skills and motivation,
we’ll award you a franchise.

 Operate from home  Help local businesses


 Set your own schedule  Earn unlimited income

We’re now expanding in all areas east of the Mississippi.

800.481.8696
tmsfranchising.com
in January 2017, isn’t yet bankrupt—not just small ones, companies think their intellectual property, or
proitable, Miller says this but big ones. They weren’t objective is to kill the competi- starting a rumor. That’s on the
program is going to get her being run by idiots, and they tion, that it’s the path to dark side of that line.”
there faster. weren’t being run by people proitability,” Chussil says. For Daniel Miller’s part, he
Still, while taking advantage who wanted to fail.” “That is not the objective. Your isn’t losing any sleep over his
of a competitor’s missteps He advises that before you objective is to succeed. If we recruiting irm’s continued
seems like an obvious way to jump into the breach and think about our rivals as our success. “Most of my competi-
boost your revenue, tread care- gobble up the business from enemies and we think it’s OK if tors are very large corpora-
fully, says Mark Chussil, an your stumbling competitor, they’re sufering, we can help tions that have hundreds, if
adjunct instructor at the make sure that the challenges them along with sufering by not thousands, of clients,” he
University of Portland and the that befell it aren’t about to taking advantage. I think it’s says. “When we acquire one,
founder of consulting irm whack you as well. “You need corrosive [to the industry].” they usually have not been
Advanced Competitive to make sure their problems It’s also important, McGrath getting the results they need
Strategies. “It’s tempting to are not indicative of larger echoes, to know the diference from another irm, so I do not
say, ‘Obviously, these people problems in the industry as a between spotting a problem feel guilty winning over that
are doing a lousy job, or they whole,” he warns. and creating one for your own business.” That’s great for his
wouldn’t be in trouble,’” he Founders also need to beneit. “It’s one thing if a bottom line: Since Miller
says. “It’s also a little danger- remember that while it’s easy business gets themselves into started strategically identify-
ous. You can say, ‘I would to point out competitors’ laws, trouble,” she says, “and quite ing competitors’ weak spots
never make those mistakes.’ as banking startup Aspiration another if you spark them to back in 2015, his revenue has
But we should remember that is doing, you also make get into trouble by poaching grown more than 30 percent
a lot of companies have gone yourself a target. “A lot of key talent, infringing on each year.

LARGEST
PET CARE FRANCHISE
****************
150+
OPEN CAMPS
****************
3.3 MILLION
ANNUAL PET VISITS
****************

DOGGY DAY CARE & BOARDING


(877) 700-2275
campbowwowfranchise.com hihh
GET STARTED

product marketing TARDIS: a


time machine that would
allow us to zip forward in time
to see if a newly conceived
product will be successful or a
lop, and the lessons learned
in getting there. Then we
could streamline our
go-to-market strategies. But
then again, the trials and
tribulations of product
development are part of the
fun and challenge, right?”
—Suzanne Miglucci, CEO and
president, Charles & Colvard

5 HAPPINESS TRACKER
“Are people happy? Satisied
with their work? Overwhelmed?
Stressed? As leaders, we
‘manage by walking around,’
launch surveys, and look to our
HR team for some measure of
employee morale, but I wish we
had a better sense of spirits in

FREE BUSINESS IDEAS


real time. The Smart Empathy
App, as I’d call it, would give an
instant read on how people are
feeling. The ultimate goal would
be for us to make quicker,
smarter, more empathetic
Entrepreneurs always need more—more help, more time, decisions that considered
more insight. So we asked: What’s the one product employee happiness as a real
business metric. If we detected a
you wish someone would create to help your business?
problem, we would be able to
Now maybe someone (you?) will make it. respond more quickly.”
—Harry West, CEO, Frog

1 EMAIL 911 2 DO-GOOD DATABASE ask for business advice 24 6 SOCIAL GROUPS
“Spending too much time on “I would love to see someone hours a day, for free. We have “As an online furniture brand,
your email is toxic, but we all create a thorough database access to countless resources we need to reach potential
do it. The joke is that ‘achieved and rating system for social- but constantly have to navigate clients in a targeted way.
inbox zero’ could be carved on good products. Ideally, this several outlets of information. Facebook and Instagram are so
someone’s tombstone, and it would be searchable through Having a digital mentor at your large now, the social media
hits a little close to home. the scanning of bar codes on ingertips to evaluate multiple message-delivery system is
Rather than trying to banish products. Many have situations and consolidate inundated with content. I want
email, though, or hoping to attempted versions of this but everything into one perfect to inspire people visually, in an
replace it with some other tool, have fallen short of market answer would be a dream. You industry-focused way. On
I wish someone would simply adoption. This would help could ask anything, from Instagram, you can follow a
build a smarter inbox—one that those brands in the social-good scaling advice to HR recom- hashtag like #interiordesign,
ingests emails and the space gain more visibility.” mendations and beyond. This but people can post anything,
important stuf in them, —Kohl Crecelius, cofounder and could deinitely alleviate some whether it’s related or not. We
organizes conversations, and CEO, Known Supply sleepless nights.” need a new social platform
marries them to projects, —Lana Hansen, chief growth with image recognition
chats, iles, to-dos, and events 3 ASSISTANT UPGRADE oicer, Ban.do technology to group content in
in an intelligent way.” “I’m going to call it ‘Siri for a meaningful way.”
—GREG COHN, cofounder business.’ Imagine if there 4 PRODUCT PREDICTOR —Christiane Lemieux, founder
and CEO, Burner were an app that would let you “I’d pay handsomely for a and CEO, The Inside

1 6 S u m m e r 2 0 1 8 S TA R T U P S Illustration Michele Marconi


MARKETING

with a long list of current


projects and your next three

MAKE YOUR
speaking engagements can
easily cross the line into
“annoying” territory for
plenty of recipients. The

EMAIL SIGNATURE
takeaway? Everything in
moderation.

Choose one item to

MATTER
highlight.
Think of it like a 30-second
elevator pitch, Hanna says.
People have diiculty remem-
bering more than one thing, so
The email signature can be a powerful marketing highlight a product you’re
tool—but it can quickly become an irritating known for, a recent award, or
vehicle of self-promotion. What’s the right balance? your company’s mission. “The
info should make you stand
BY BLAIRE BRIODY out,” Hanna says. “Everything
else is a distraction.”
Two years ago, Alaia Williams used a
Add color.
run-of-the-mill email signature: title, A study by EyeQuant and Sigstr
company, phone number. But as a business tracked where the eye goes in
systems strategist, she wondered if the irst six seconds of looking
she was overlooking an obvious opportunity. So she at an email. If a signature had a
colorful name, phone number,
The Fastest Way
started adding to her signature, piece by piece.
or image, people looked there
irst. Social media icons, as
to Annoy People
She placed social media icons Rich Hanna, a marketing Williams found, can do double What do people really
to link to her Facebook, professor at Babson College duty, drawing attention and not want to see in your
Twitter, and LinkedIn and the lead author of Email inciting action. email signature? Below,
accounts. She added a sign-up Marketing in a Digital World. a ranking of the 12 MOST
for her mailing list. She even “We’re engaged in reading Include a photo. IRRITATING ITEMS,
threw in a head shot and info material related to what we’re A book cover, a head shot, or a according to a survey of 1,006
on her product line. The doing, and we pay more banner with call-to-action text adults conducted by Ipsos for
results? Her followers and attention to the signature.” like “Sign up here” drives more Entrepreneur. As we said, a
little goes a long way. A lot?
opt-in rates immediately Email marketing irms like engagement than mere links.
Well, you’ve been warned.
increased. “I’m getting HubSpot, Sigstr, and Wise- According to the Sigstr
inquiries and referrals from Stamp ofer services to help eye-tracking study, head shots
people who don’t even know companies manage their draw the most attention. “The 1 Home address
me well,” she says. Williams’ employees’ email signatures human eye will look at a face 2 Award you’ve won
instinct was spot-on, it turns and weave marketing longer than anything else,” 3 Home phone number
out. Email signatures are no messages into them. “Brands Wade says. Just make sure the 4 Facebook link
longer just an afterthought; are realizing there’s this image is sized properly to get
5 Instagram handle
they’re a valuable marketing untapped marketing channel,” through spam ilters.
6 Head shot
opportunity. That’s because says Bryan Wade, CEO at
they typically come from a Sigstr. “An organization with Skip the inspirational quote. 7 Twitter handle
trusted source (or at least a 100 employees is sending You may love the Dalai Lama, 8 Personal website link
professional acquaintance), millions of emails a day. That’s but that doesn’t mean his 9 Cellphone number
and because getting a work a lot of interactions.” wisdom belongs in your email. 10 Higher-education
email is a fundamentally But how much is too much? According to Hanna, it could degrees
diferent experience than, say, According to a recent survey be useful if it builds the brand’s
11 Blog link
watching TV or scrolling by Ipsos for Entrepreneur, identity, but “you have to
12 Inspirational quote
through Twitter. more than half of U.S. adults believe it,” he says. “If you’re
or mantra
“When we read emails, don’t use an email signature at just putting it there to put it
we’re in work mode,” says all—which means signing of there, people see through it.”

1 8 S u m m e r 2 0 1 8 S TA R T U P S
Let’s make your dreams come true.
Baskin-Robbins is a world-class brand with powerful reach and nearly 8,000
locations worldwide. We provide franchisees with unbeatable training and support,
innovative products and lexible real estate options that it almost any space.

Take advantage of our special New Development and Military Veteran Incentives*.

Franchise opportunities in
San Diego and nationwide.

Visit BaskinRobbinsFranchising.com

Or contact the Franchise Recruitment Team for more info.


franchiseinfo@baskinrobbins.com | 781-737-5530
* Please see Baskin-Robbins Franchise Disclosure Document for details.
© 2018 BR IP Holder, LLC
TEAM

This would create a perverse for me not to give it to


years-long crisis for the them just because of what I had
company. And for Kelman, it in mind.”
would come to highlight an In 2006, Kelman decided to
often-unspoken business treat Redin like a true
challenge: Entrepreneurship brokerage—and so began hiring
means exploring unknown dozens of agents. But that
paths, and sometimes that sparked a culture clash:
leads an entrepreneur Redin’s engineers didn’t like
somewhere diferent from being at a real estate company,
where they started. The result and the agents didn’t think they
can challenge not just their were at a software company.
business philosophies but also The two sides had no shared
their very sense of identity. A language or understanding.
company’s future may end up And this created the true
riding on what happens next. moment of reckoning. Kelman’s
To Kelman’s credit, Redin identity crisis had become a
did start with software. In company-wide crisis. He’d have
2004, it was the irst to put to resolve it all.
local real estate listings onto a He started by telling both
searchable map for consumers sides: The word they is banned.
to use. But then Redin “I used to hear it all the

WHEN
decided to become a real time. Our software engineers
estate brokerage, too—building would say they”—as in, the real
a service in which someone estate agents—“don’t use our
could search for, view software because they just

YOUR STAFF
virtually, and then actually buy don’t get it,” Kelman says.
a home through the website. “And I would start by saying,
The company’s software was ‘Why don’t you say we aren’t
designed to allow a broker to using our own software?’
do everything a broker does, And the agents would do the

KNOWS
but remotely. And it confused same thing. ‘They built that
the hell out of customers. software without ever
“The level of dissatisfaction knowing how a real deal
in those early days was closes.’ And I would say, ‘We
intense,” he says. People would built that software.’”

BETTER
call Redin, asking for someone Slowly, this new thinking
to give them in-person tours of sunk in. The two sides worked
homes like a normal real estate together, collecting data on
agent would. But Kelman said how the agents engage with
no. “That would involve consumers, and then adjusting
How Redfin CEO Glenn Kelman discovered sending a human being and a the software to make the sales

P H O T O G R A P H BY I S T O C K P H O T O.C O M / BY M U R AT D EN I Z
that his vision for the company was not car out to the property,” he process more eicient. Revenue
the one his employees or customers saw. says, “and we weren’t willing to rose, Redin expanded
do that, because I thought of nationwide, and in 2017 it
BY JASON FEIFER myself as a software entrepre- went public. It last reported
neur.” The way he saw it, his $370 million in annual revenue,
software should be all a and now it employs more than
Glenn Kelman thought of himself as a customer really needs. 1,000 agents.
software guy. He loves software. He Eventually, some employees Today Kelman no longer
cofounded a company called Plumtree began pushing back. One asked thinks of himself as a software
Software. “When I applied for a passport or him to call customers and entrepreneur—or, for that
had to fill out my tax forms, I wrote down that I was a explain why Redin was only a matter, as a real estate
“software company.” The entrepreneur. “I think of myself
software entrepreneur,” he says.
demand stopped Kelman cold. as someone who’s trying to
So when he became CEO of a real estate startup “I thought about all those make things better,” he says.
called Redfin, he had a natural direction: “I wanted to people,” he says. “I knew what That’s a mission everyone on
solve every real estate problem with software.” they wanted. It seemed his team can relate to.

2 0 S u m m e r 2 0 1 8 S TA R T U P S
MONEY

“The idea of bootstrapping JASON BOCKMAN


is positive in the sense that it COFOUNDER Strange Donuts
forces you to sell before you LESSON LEARNED

NO MONEY?
build,” says Patrick FitzGerald, Engage in your community
a lecturer at the Wharton before you launch.
School and a serial entrepre-
neur. He sees an increasing JASON BOCKMAN wanted to

NO PROBLEM
number of his students boot- open a doughnut shop in
strapping—some to keep con- St. Louis—but not just any
trol of their company vision, doughnut shop. “We wanted to
and others because they’re have fun and attract people
Bootstrappers know: With enough buried in business-school debt who were into the same stuf
and can’t fathom taking on we were into: wrestling,
resourcefulness, there is always a path around
another loan. He sympathizes. cartoons, whatever,” he says.
any obstacle. Six entrepreneurs share “I myself have always boot- Lenders were less than
the brilliant, crazy, inventive ways they took strapped,” FitzGerald says. enamored by this countercul-
their companies from pennies to profit. “My parents are teachers, so tural doughnut shop idea; 13
I’ve never had the luxury of turned them down.
Reporting by JASON FEIFER, JOE KEOHANE,
not bootstrapping.” So Bockman got creative.
STEPHANIE SCHOMER, AND AMY WILKINSON
On the following pages, we “We had a Pog tournament,”
talk to entrepreneurs who he says. They gathered a
Strapped for cash? You’re not alone. igured out how to make it bunch of ’90s fad items,
The business press may make it seem work, inding creative and, at publicized the hell out of the
times, hilarious ways to grow event, and attracted 200
like every startup rakes in millions
their business. Whether locals to compete—and try the
from VC firms, but in reality, many more you’re self-funded or not, take doughnuts—for a small fee.
entrepreneurs build without any cash infusion. note: There’s plenty to learn “We were just testing the
And that often makes them smarter and scrappier. from a bootstrapper. market,” he says. “But it was a

2 2 S u m m e r 2 0 1 8 S TA R T U P S Illustration Alvaro Dominguez


AN OPPORTUNITY
THAT HITS ALL THE
HOT BUTTONS.

$4 Billion #1 Global Patented


Global Lice Clinic One-Hour
Industry Network Lice Cure

Lice Clinics of America is setting a new Join the only franchise with a single
standard of care with our FDA-cleared, treatment cure for parents who are
heated-air medical technology that desperate for an effective solution.
cures lice in about an hour.

Over 400,000 successful treatments Territories are limited.


and 300 clinics in 34 countries. Grab this opportunity while it’s hot.

CALL OR TEXT TODAY


800-230-8390
LiceClinicsOfAmerica.com
MONEY

crazy success.” JANE LU brand called Showpo. ANTHONY BYRNE


Six eclectic events followed, FOUNDER and CEO Showpo She built a website, bought COFOUNDER and CEO
including a wrestling night, LESSON LEARNED Don’t fold inventory on consignment, Product2Market
beer tastings, and a party after the first failure. and eventually paid store rent LESSON LEARNED Fake it till
commemorating the cult TV with credit cards. “I would get you make it (in many ways).
show V: The Final Battle. These AT AGE 24, Jane Lu took the up early in the morning, put
established Strange Donuts’ entrepreneurial leap. She quit on my suit, have breakfast ANTHONY BYRNE launched
obeat identity, and raised her corporate job, traveled, with my parents, carry my his Dublin-based sales-lead-
$20,000. A subsequent and pursued her side hustle. laptop bag, and ride the bus generation company back in
Kickstarter campaign brought But it lopped, leaving her into the city with my mom,” 2010—“probably the worst
in another $12,000, and then $60,000 in debt. She didn’t Lu says. She kept it up for time in the history of the
they inally got a small- want to admit that to her 18 months before telling her world to start a company,” he
business loan—from a bank parents, whom she lived with. parents about Showpo—which admits. But despite a low cash
whose executives happened to They’re Chinese immigrants by then was a successful, low, his team made it work.
be at one of their parties. who moved to Australia to fast-growing operation. And They bought furniture from
Strange Donuts opened its make sure their only daughter she cushioned the news. “I companies in liquidation and
doors in October 2013, and had more opportunity. So told them, ‘I’m going to pay sourced oice supplies…
they now have two locations as instead of disappointing them, of your mortgage, and I creatively. “We’d set meetings
well as a franchise in Mexico she lied and said she was bought you a car,’” she says. with companies we didn’t
City. These days lenders call working at Ernst & Young. “They couldn’t believe it.” even want business with,”
them to ofer loans. “Crazy Secretly, however, she was Today Showpo ships to Byrne says, “purely because
how it works,” Bockman says starting a fresh entrepreneur- 80 countries and projects we could ill our bags with
with a laugh. ial endeavor: a small retail $100 million in sales by 2020. pens and stationery.”
This scrappiness prepared ARION LONG considered her audience: “It’s ERIK HUBERMAN
them for a game-changing FOUNDER and CEO Femly not easy navigating the tech FOUNDER and CEO
moment. Microsoft wanted to LESSON LEARNED Investors sector, talking about periods to Hawke Media
hire them for a project but aren’t the only ones with money. a bunch of white men. They had LESSON LEARNED Tell the
irst wanted to conduct a to understand why this was story others want to hear.
site visit to make sure they INVESTORS weren’t taking important.”
had the manpower to handle Arion Long’s calls, and she She’d been opening her pitch ERIK HUBERMAN runs a
the contract. Truth be told, suspected she knew why: with a personal story about a fast-growing marketing
they didn’t. But that didn’t Less than 1 percent of venture cervical tumor. Now she asked, agency in Los Angeles, which
stop them. “We ushered capital goes to black female “Who knows what a condom is ofers itself as an outsourced
friends, family, and neighbors founders. As she looked for made of?” They all did. Then: CMO: It shapes a brand’s
into the oice to try and make ways to fund her line of organic “Who knows what tampons are messaging, and has done so
us look twice the size,” Byrne feminine hygiene products, made of?” They didn’t—so she for giants like Verizon
says. It worked. “Microsoft she entered a local pitch talked about the chemicals in Wireless and eHarmony. Back
was the irst blue-chip tech competition—and won. most tampons, and her organic, in 2011, when he was boot-
company to give us a Similar competitions happen compostable solution. strapping a very diferent
contract.” Product2Market across the country, so she Since 2016, she’s entered company, he learned a
now has a staf of 125 and thought, If I’m really good, I’ll get 30 competitions and won half, valuable lesson about pitching
works with brands like the check! But she lost the next earning $100,000 in cash and that he still taps today. At the
Twitter and Zendesk. “It ive. To improve, she studied prizes, a lot of press, and time, he’d launched a
wasn’t at all pretty,” Byrne the speaking styles of Steve Jobs intros to investors. “Though,” subscription service for men’s
says, “but it got us to the and Gary Vaynerchuk. But the she says, “nothing’s moved T-shirts called Swag of the
next level.” aha moment came when she forward yet.” Month but was having trouble
MONEY

BOOTSTRAPPING 101
No one ever called bootstrapping glamorous.
Patrick FitzGerald, a lecturer at Wharton, shares some brutal tips.

1 Have awkward conversations. living in my mom’s house for six months.


“Before you spend time and money It was humbling, but I saved a ridiculous
building a product or service, make sure amount of money. And Mom cooked!”
people want it. Have awkward conversa-
tions with your target customers. If 4 Sell your crap.
people are excited, then sell your organs “It’s tough, but sell your stuf. Your car.
and build the thing.” Things you have around the house. Get
an early $5,000, $10,000 in the bank. It’s
2 Forget the 9 to 5. not exciting, but it works.”
“It’s a common mistake to take on a
full-time job while you’re bootstrapping. 5 Ask for a deal.
There goes 50 percent of your day. It’s a “Barter for whatever you can. A good
recipe for failure.” example is, a lot of law irms will push
out the payment to the future. If you
3 Call Mom and Dad. need contracts set up but can’t pay them
“Move in with your parents. I did it. I went for eight months, many will say yes.
from making six igures as an attorney to Always ask.”
$1,507, 817
*

getting press for it. A friend pointed


out how easily companies get
tech-blog coverage when they raise
money, which seemed nuts. “It’s is the average annual gross revenue
a funny thing to praise people produced by our franchise owners.
for—taking out a loan, essentially,”
Huberman says.
But it gave him an idea. He wrote
to TechCrunch and claimed he’d
raised $100,000 (from what was
really his dad’s holding company). “I
knew no one would look it up. I got a
call within 30 minutes.” A post went
up within hours, and Swag of the
Month earned 600 new subscribers. Entrepreneur‘s 2018 Franchise 500 - Rank #172
He has never again misled the press, Franchise Business Review - 2018 Best Franchise Opportunity
but he learned a priceless lesson.
“Give outlets the headline they In addition to organic-based lawn care revenues,
want,” he says. “I learned how to you’ll gain access to an exclusive mosquito
pitch stories. It helped me learn the control and flea & tick control business!
entire press machine.”

Key Markets Available in Your Area—Call Today!


CHRISTINA STEMBEL Blaine Young | (800) 989-5444 | NaturaLawnFranchise.com
FOUNDER and CEO Farmgirl Flowers
*Based on 34 owners and the 2016 gross revenue report. ©2018. NaturaLawn of America, Inc. A division of NATURLAWN® Services and Products. All rights reserved.
LESSON LEARNED Even DIY marketing
produces useful data.

CHRISTINA STEMBEL’S schedule


was nothing short of grueling when
she launched her lower-delivery
service in San Francisco. “I’d hit the
lower market at 3 a.m., pick the
lowers, drive home, unload my SUV,
and ill buckets of water from my
bathtub,” she says. “I’d build all the
bouquets before the couriers started
coming at 9 a.m.”
That was just to fulill orders—the
basic stuf of business. But it’s what
she did next that really set her up for
success. She’d create extra bouquets
and deliver them for free to city
cofee shops along with a stack of
50 business cards. “I’d go back every
week and count how many business
cards were left,” she says. If most
were gone, she’d found a shop that
attracted her kind of customer—and
was worth illing with more lowers.
If not, she’d ind another shop to
replace it.
This went on for a year, and it was
well worth it: “All the initial chatter
about the company, all the inquiries,
was because of those cofee shops.
It was the cheapest thing I could
have done.”
DEVELOPMENT

needed “a really quick-and-


dirty way to expand the
portfolio with no resources.”
She found the solution close
to home, using her own life as
an R&D lab. Every time her
infant son did something gross
or unexpected, she’d dream up
a product to deal with it. When
her son kept spitting out
medicine, Hirschhorn created
MediFrida—a paciier with a
syringe attached to deliver medi-
cine. When he resisted having
his teeth brushed, she came up
with a three-sided toothbrush
that could do in one stroke what
Fridababy conventional brushes do in
CEO Chelsea three. “It was inspired by the
Hirschhorn.
way veterinarians brush dog
teeth,” she says, laughing.
Then she had an aha
Hirschhorn was interested in moment: American inventors
the business. She was not. are squeamish about creating

HOW TRAVEL
Then her son was born. “products you’re using at 3 in
He became congested, and the morning when you’re
Hirschhorn tried the Nose- elbow-deep in shit.” But
Frida. “I was like, This is amaz- Europeans were more

TURNS INTO PROFIT


ing,” she says. Her neighbor, open-minded. So Hirschhorn
it turns out, had something began attending baby trade
valuable: a practical tool for an shows in Europe, looking for
unpleasant childcare scenario products that it her niche.
How Fridababy went from a three-person no one talks about but every- When she found one, she’d
team with $10,000 in the bank to a baby-care one deals with. license it, tweak it, and bring it
Hirschhorn signed on as to the U.S., leveraging the
brand sold in 30,000 stores. CEO, renamed the company distribution she’d garnered
BY JOE KEOHANE Fridababy, and grew the with the NoseFrida.
product for two years—selling “There were times when I
to enthusiastic retailers, was cutting prototypes on my
parents, and pediatricians. But desk from scratch,” she says. “I
Chelsea Hirschhorn was in a bind. Her she and her partner saw the would take an existing product,
infant-products company, Fridababy, was business diferently. The Scotch-tape things together,
profitable. But for the business to grow, partner wanted to pocket the and send it to a factory.”
she needed more products. The problem proits; Hirschhorn wanted to The approach worked. She
invest in growth. “It was such added 18 new products and
was, she had no design experience, no R&D staff,
an unsexy, un-innovated tripled sales in three years.
no money, and no time. category,” she says. Today Fridababy’s wares—
Yes, you could get baby which she calls the “grossest
Like we said: a bind. One night in 2013, while toothbrushes and nail clippers products you’ll ever love”—are
P H O T O G R A P H BY J E F F O L S O N

She hadn’t started as an Hirschhorn was pregnant with and conventional nasal in more than 30,000 stores,
entrepreneur. In law school her irst child, a neighbor told aspirators, but they hadn’t along with a robust online
she did a stint with the New her about a product she was been updated in decades. business. And customers and
York Mets. Then she was a importing from Sweden, the “These are products that all pediatricians love them.
bankruptcy attorney during NoseFrida. It was “an oral parents are registering for,” she “We have a lot of credibility
the recession. After that, nasal aspirator”—that is, a tube says, and no one was paying in the snot space,” she says.
she moved to south Florida parents use to suck snot out of any attention to them. Then she laughs. “It’s alarming
and landed a gig with the their babies’ congested noses. So Hirschhorn bought out to me, the evolution of my
Miami Marlins. The neighbor wanted to see if her partner. From there she professional career.”

2 8 S u m m e r 2 0 1 8 S TA R T U P S
Never look at a house
the same way again.
(from now on, all you’ll see are dollar signs)
PROVEN SYSTEM TO BUY & SELL HOUSES
Be your own boss with continuous mentoring and franchise support.

FINANCING FOR QUALIFYING ACQUISITION & REPAIRS


We make it easy to keep your business running smoothly.

ONGOING SUPPORT
Learn business strategies from the franchise system that has purchased
over 85,000 homes since 1996.

VALUECHEK¨
Take the guesswork out of estimating repairs with a sophisticated software
system that helps you steer clear from making costly mistakes.

You are in the right location at the right time to be a


HomeVestors® franchisee, what are you waiting for?

HomeVestorsFranchise.com
888-223-9332

*Each franchise office is independently owned and operated.


3 0 S u m m e r 2 0 1 8 S TA R T U P S
P H O T O G R A P H S C O U R T ESY O F N A A D A M C A S H M E R E
In 2012, Matt Scanlan (left)
and Diederik Rijsemus (right)
got stranded in the Mongolian
desert while on vacation. When
they left a month later, they had
a wild story, lifelong friends,
and the seed of an idea that in a
few short years would turn the
cashmere business upside down.
by ADAM LAUKHUF

S TA R T U P S S u m m e r 2 0 1 8 3 1
Matt Scanlan loaded $2.5 million in Mongolian tögrögs into
32 plastic bags, stufed them into the back of a Toyota Land
Cruiser, and lit out into the desert.
Scanlan, the then-26-year-old cofounder and CEO of Naadam
Cashmere, was headed to Bayankhongor province, one of the most
remote regions in the world, located deep in the Outer Mongolian
Gobi desert. Each year around the same time, the nomadic
goatherds in the area gather in a local village to sell their yield,
which consists of some of the inest cashmere there is.
Leaving from the Mongolian capital of Ulaanbaatar, Scanlan
spent the next two days of-roading across unforgiving desert
terrain with the bags of money piled so high in the back, the driver
could hardly see out the rear window.
When he arrived, it was with a bold, risky plan, years in the
making. When he left, he and his colleagues had 100 tons of
cashmere, packed into a dozen tractor trailers, and the irm
foundations of a socially conscious, sustainably sourced, inge-
niously constructed clothing business that’s now on track to gross
$45 million in its third full year.
And like many great entrepreneurial adventures, it all started
with a phone call, a dive bar, a good friend, and some dumb luck.

SCANLAN WAS A few years out of NYU in 2012 when he quit his
job as a qualitative analyst at a small venture capital irm in
Manhattan. “It was way over my head,” he says. “Compared to a
real analyst, I was an idiot. I was faking it. So I left, not really sure
what I wanted to do. And that’s when Diederik called.”
Diederik Rijsemus, a Dutch friend, was heading to Mongolia
with a backpack. They irst met during Scanlan’s brief tenure at
Dickinson College before, as Scanlan puts it, “they politely asked
me to leave the institution and not come back.” (Ditto a certain
elite boarding school: “I was always mischievous as a kid and “SCANLAN yurt, and learned how to
ride motorcycles in the
more interested in knowing what the rules were so I knew how to AND desert, milk and herd goats,
break them,” he says—a mentality that would come in handy RIJSEMUS and perform a few Mongo-
later.) By the end of the week, the two were sharing a bunk at a
$20-per-night hostel in Ulaanbaatar. Soon after, they were out at SAW A WAY lian wrestling moves. “By the
last quarter of the trip, we
a bar and hit it of with some locals named Ishee and Bodio, who TO HELP THE had all become good
extended an invitation to join them on a trip to the countryside HERDERS friends,” Scanlan says. “We
the next morning.
“We assumed that meant, like, going out to Connecticut for the AND ALSO started asking a lot of
questions about how they
weekend,” Scanlan says, laughing. “We didn’t bring clothes or CREATE lived. And we came away
food. We thought we’d be back that night.” Instead, they drove A VIABLE with some really hard facts.”
of-road for 20 hours straight until the truck broke down in the
middle of the night. “After a few hours, a couple guys with BUSINESS.” Chief among them: While
Mongolian goatherds
motorcycles rode by and picked us up, and we drove for what felt produce some of the world’s
like another three hours.” most sought-after cashmere, it’s exceedingly tough out there. The
The journey inally ended deep in the Outer Mongolian Gobi, with million or so nomadic herders—who make up a third of Mongolia’s
nothing around for miles but a yurt belonging to a herder named population—must survive long, punishing winters with tempera-
Dash and his family, who came out to greet the visitors with a bottle tures of minus-40 degrees, relentless winds, and massive snow-
of goat’s-milk vodka. “We spent the night hanging out with these falls, with only the food they’d stored up over the summer. That
guys and had an amazing time. They were rowdy and so much fun,” harsh climate is actually part of what allows goats to grow their
Scanlan says. “When we woke up in the morning, we asked the two high-quality undercoats—the longer and thinner the ibers, the
gentlemen who drove us out there how we’d be getting home. They more money they fetch at market. But as global temperatures rise,
told us they were planning to stay for a month.” the quality of yields appears to be diminishing.
Scanlan and Rijsemus gradually came to accept the situation. Meanwhile, the worldwide demand for Mongolian cashmere has
They slept on the loor, living of meat from the tiny stove in Dash’s been skyrocketing. That would seem like a good thing, but in reality

3 2 S u m m e r 2 0 1 8 S TA R T U P S
Naadam is helping
struggling cashmere
goatherding families in
Mongolia get a better
cut of the raw fiber from
their goats—and lead
more sustainable lives.

it has created a host of new problems. From 1993 to 2016, Mongo- project Naadam, meaning “games,” a traditional festival in
lia’s livestock numbers, which includes cashmere goats, grew from Mongolia. It wound up generating more than $100,000.
23 million to 71.5 million, leading to the degradation of the native “We didn’t know what we were doing at that point,” remembers
grasslands on which the animals feed and trapping the herders in Scanlan. “We took all these orders and then we were like, ‘Oh,
what many fear is a vicious cycle. Bigger herds lead to undernour- shit; we have to make some sweaters.’” They sourced the sweaters
ished goats, which yield coarser, less desirable hairs, which bring from a manufacturer in Mongolia and eventually sent a thousand
lower prices, which force producers to breed even bigger herds to orders out from Scanlan’s apartment in the West Village, where
make up for it, which increases the pressure on the grasslands. Rijsemus had been living on the couch. “The boxes were stacked
Even more threatening is a mysterious periodic weather to the ceiling, and we were sleeping on the loor for a week illing
phenomenon known as a dzud, which causes severe summer orders,” Scanlan says.
droughts followed by even harsher winters. When one struck in They barely broke even, which meant there wasn’t much to
2010, nine million animals died, and a dzud in 2016 took out a send to Mongolia. But the experience showed them that people
million more, wreaking havoc on a population that already lives on seemed to care about the plight of herders and wanted ethically
the edge. sourced cashmere. The problem was, as Scanlan puts it, “we had
“We saw how hard it was for this family and how much they only 50 percent of the puzzle.” For the other 50 percent, they’d
cared about their animals,” Scanlan says. “And so by the time we have to head back to the desert.
left, we felt like we needed to ind a way to give back for this
experience—a month of them feeding us and clothing us and not SCANLAN AND RIJSEMUS RETURNED to Mongolia the next
asking for anything.” summer to check on the progress of their nonproit work. The
So Scanlan and Rijsemus decided to repay the favor. First, they news was not good. “We met with more families, talked to more
went around and raised money from family and friends to fund people. They were saying, ‘Thanks, but actually, it’s not changing
veterinary programs for the herders. Then, to see if they could anything. There’s no real impact.’”
support the cause but also build a business for themselves, they It was the time of year when local traders begin arriving in the
launched a Kickstarter campaign in 2013 with an initial goal of region to purchase huge loads of cashmere. And Scanlan noticed
$20,000, selling Mongolian-made cashmere sweaters with a piece that the traders were engaging in what amounts to price-ixing:
of the proceeds going to eforts to aid the herders. They called the deciding as a group beforehand not to pay herders more than, say,

S TA R T U P S S u m m e r 2 0 1 8 3 3
$20 a kilo for their yield. The traders would then sell that same
kilo to a broker for $50. The broker handled the exporting and
shipping and unloaded it to a mill for $70.
“So it’s worth $70, but the herder gets $20. The more we
understood the supply chain, the more we thought, This is
bullshit,” Scanlan says. “The herder doesn’t have the information
to negotiate, or any leverage whatsoever. They have to sell their
material. It’s been happening like this for a thousand years. That
was the other 50 percent of the puzzle.” Diederik
Scanlan and Rijsemus saw a way to help the herders and also Rijsemus
inspects raw
create a viable business. By cutting out the middleman and going cashmere in
directly to the herders for raw ibers, Naadam could produce its Mongolia.
own sweaters at dramatically lower costs. Instead of $20 per kilo,
they’d ofer herders $32 or $38, which would have a far greater
impact on their quality of life than any veterinary program could Saar also covered for Scanlan’s most glaring weakness as the
on its own. At that price, Naadam would have its pick of the head of a fast-rising clothing company. “I don’t really like cloth-
highest-quality material. And if Naadam controlled the processing, ing,” he admits. “I haven’t bought a new piece of clothing in
shipping, and manufacturing, it could remove several more layers probably two or three years. Most of mine has holes. I would wear
of markup and deliver a superior product at a better price than the same thing every day if I could. So the design and the fashion
any competitor could—boosting the herders’ bottom line while stuf I leave to Hadas.”
actually turning a proit for themselves. They’d then sink a portion
of those returns back into nonproit eforts like veterinary services WITHIN JUST A FEW SHORT MONTHS, Naadam was able to raise
and grassland management. another $6.5 million and build out a website. It launched in
“I thought that if we could actually pull it of, why wouldn’t September 2015 with an inventory of classic sweaters, hoodies,
someone want to buy the end result—a lower-priced, higher-value scarves, hats, and gloves that sell for a fraction of the cost of
brand that helps people and doesn’t screw everybody along the comparable garments from luxury labels like Loro Piana and
way?” Scanlan recalls. Brunello Cucinelli.
They spent most of the next year scraping together capital and Naadam took in $1.3 million in its irst four months and
iguring out logistics. “We had to put up some serious collateral $7.5 million the following year, becoming proitable in just its
and take really high interest rates,” Scanlan says. “It was hard second full year. For 2018, Scanlan projects revenues to hit
money to raise.” They managed to secure a $2.5 million loan, and $45 million—and grow to $82 million by 2019.
they lined up a designer to come aboard as a cofounder in the While roughly 68 percent of revenue comes from Naadam’s
event the scheme worked. Scanlan would be the face of the direct-to-consumer digital platforms—which ofer higher margins—
company. Rijsemus, who Scanlan describes as “the other half of the company has been careful to spread its risk across multiple
my brain,” would be COO. channels. It created a fashion-forward wholesale line, Studio by
Scanlan had the $2.5 million wired to Mongolia and returned to Naadam, which it sells to major department stores like Saks Fifth
the desert in 2015. The irst order of business was to put some of that Avenue, Nordstrom, Barneys, Bloomingdale’s, and Selfridges. But
cash into an envelope and slip it to the mayor who runs the cash- it also produces pieces for those same companies to sell under
mere auction. “We rigged the auction in favor of the herders,” their house brands. That way the cash low from the latter pays for
Scanlan says. “He was getting paid of to do the opposite.” the production of the former, meaning Naadam isn’t out a pile of
When the meeting opened, the traders were sitting at tables in money at the start of every season.
the front of the hall, and the herders were standing in back. “Our In 2017 Naadam also quietly launched an of-price label called
guy gets up, and he’s telling them what’s happening, and all of a Project, which it sells through discount retailers like T.J. Maxx,
sudden every single trader in the place turns around and stares at Nordstrom Rack, and Saks Of 5th. “They’re huge orders of 50,000
me. I have my sunglasses on, trying to hide in back, and they’re all or 60,000 pieces at a time,” Scanlan says. That, too, “spits of cash
looking at me like, What the hell?” Scanlan says. The mayor got up to fund the rest of the business.”
to conirm the price: The herders were about to get a major raise. Meanwhile, Naadam’s nonproit arm, now run by old friends
“We go to our spot, and all the herders start coming to us, lining Ishee and Bodio, is lourishing. Among its many eforts, the
up with their bags of cashmere, and we have a scale and are company manages the Gobi Revival Fund, which inoculated more
sorting on the spot. And we do this process from 6 a.m. to 12 a.m. than one million goats in the past three years. And this summer, it
every day for three weeks until we’re out of money. Herders from invested $25,000 to build a fence long enough that it could
all over the region started looding in.” encircle Manhattan as part of a grasslands-management project.
The material was cleaned and shipped to mills in Inner Mongolia It’s a lot to hold together—growing a successful company with
and Italy to be spun into yarn. Back in New York, Scanlan and so many moving parts—but Scanlan has come this far, learning as
Rijsemus got to work putting together a clothing line, an efort he goes.
spearheaded by their new designer and partner, Hadas Saar, the “All we have to do is not fuck it up, honestly,” he says with a
former head of global knitwear at the apparel conglomerate Li & laugh. “We’re still iguring it out on a daily basis. But we’re getting
Fung. “Early on, we thought we could just go to J.Crew and buy a a lot better at it.”
sweater we liked and send it over to a manufacturer and have
someone copy it,” Scanlan says. “But it’s hard to make a sweater.” Adam Laukhuf is a New York City–based writer and editor.

3 4 S u m m e r 2 0 1 8 S TA R T U P S
How one of America’s most beloved toy makers has rebounded from near
death—in part by tapping into the dreams of toy-making entrepreneurs everywhere.
by JOE KEOHANE

3 6 S u m m e r 2 0 1 8 S TA R T U P S
Illustration Doug Chayka
JOHN
HINNEN
T
odd Richards didn’t expect to wind
up running Wham-O.
A big, amiable guy and a talented

always wanted to
athlete, Richards was signed as a
free agent out of college by the San
Francisco 49ers but quickly

make things.
realized he was outclassed. So he
quit and started looking for other ways to
make a living in the sports business. He
worked some connections and ended up in
A born tinkerer, the son of Illinois spent snowballs, throw snowballs, and defend a sales role for Fleer, the trading card
the better part of his 20s designing toys yourself against snowballs. company. This was a golden age. “At that
and novelties in his parents’ garage. He This was the idea he’d been waiting for. time in the early ’90s,” he says, “selling
created a line of greeting cards and Hinnen and his son spent a year working trading cards meant you were doing better
peddled them all around downtown on it, even persuading a local grocery store than a stockbroker.”
Chicago in his cowboy boots. He created to let them scrape the “snow” out of their The bottom eventually dropped out of
an elaborate child’s educational toy that freezers so development could continue the trading card industry, and Richards
got good feedback but was so complicated apace during the warmer months. When landed a job with multinational toy-making
to build that he couldn’t make the they got the concept down, Hinnen made a behemoth Intex. He had a good run
economics work. He had a little wooden video of his son using the bat to throw a heading up sales, and then in 2002 he got
toy that twisted from a heart to an egg snowball some 80 feet at the back wall of a a call from his former boss at Fleer. He said
that, he says, he “thought was the next pet Kohl’s store. “From the parking lot,” he had just taken over a fund that had a
rock.” It wasn’t. Hinnen says, laughing. “This is a basement company that was disorganized, riddled
Life would go on. He married. In May of inventor thing. You do whatever you can.” with turnover, and just couldn’t seem to
1989, he and his wife were expecting their They called it the Snow Slugger. The get it together. He wanted Richards to
irst child. “I had to get real,” he says. He only question was to whom to submit it. come on as senior VP for sales.
got a job at the Diamond-Star Motors plant And the answer came as a surprise. “Well, what’s the company?” Richards
in Bloomington. He had two more kids, Through a peer, Hinnen had heard that asked.
bought a house by a park in Peoria. It was Wham-O—“the company of my youth,” as “It’s Wham-O.”
a happy life, though with a sacriice: “I he calls it, the one that created such Richards knew Wham-O well. He grew
kind of put the dream on hold,” he says. legendary toys as the Frisbee, the Hula up a few miles from its former headquar-
Then he turned 50, and that unrealized Hoop, the Superball, Silly String, and the ters in San Gabriel, Calif., and he and his
dream began to gnaw at him. “I thought, If I Slip ’N Slide—had recently resumed its friend used to ride their bikes over, sneak
get to 65 or whatever and never do anything long-discarded practice of accepting into the warehouse, and root around in the
with this, it’s going to be a bummer,” he says. submissions from random inventors. Dumpsters searching for treasure.
He’d never stopped sketching ideas, but Hinnen had never thought to send it “I’m in,” he said.
now he began in earnest—designing games anything before. Why would he? The When Richards arrived in 2002,
and dolls, and trying to sell them to the few company had slid into obscurity, having Wham-O had a lot of miles on it, but a lot
toy companies that accepted unsolicited spent the better part of 30 years being of history, too. The company was founded
ideas. For this he received an inbox full of passed from owner to owner, its business in a garage in 1948 by two prankster
rejection letters. prospects and cultural resonance ever geniuses named Richard Knerr and Arthur
Then, in 2015, his auto plant closed. fading. But recently it had come under a “Spud” Melin. They invented a wooden
Hinnen got a good severance package, but new regime, Hinnen had learned, one slingshot and named their company
still: Change was in the air. determined to restore its fortunes in part Wham-O after the sound its projectiles
One day Hinnen was watching the movie by tapping into the spirit of entrepreneur- made when they hit their targets.
Elf with his kids, and during the snowball- ship that made it great to begin with. The years that followed have gone down
ight sequence—when Buddy the elf turns That meant that for the irst time in in cultural history. The Frisbee in 1957. The
back an ambush on his half-brother by many years, Wham-O would lash its Hula Hoop in 1958. The Slip ’N Slide in
iring of snowballs like a Gatling gun—he fate to inspired basement inventors like 1961. The Superball in 1965. And later, the
had an idea. Hinnen and his youngest son, John Hinnen. John Hinnen, who after Boogie Board, the Hacky Sack. These toys
Nate, took a plastic bat they’d sawed the 30 years of nurturing a dream that never became full-on global phenomena.
top of of for a previous invention, took it came to fruition, walked in from the The trouble began when Knerr and
out to the snowy park, packed it with fresh Midwestern cold one day and sat down Melin sold the company in 1982 to toy
powder, and took turns swinging it at each to make his pitch. maker Kransco, which shifted production
other, unleashing “an arctic blizzard of “My name is John Hinnen, and I’m a to Mexico and laid of much of Wham-O’s
snow crystals.” product designer from Illinois,” he wrote staf. Mattel bought Kransco in 1994 and
Hinnen started getting excited. If in an email. “I’m writing for a couple of closed Wham-O’s fabled San Gabriel
tweaked and loaded with stickier snow, reasons…” warehouse but also seemed unsure what to
here was a bat with which you could make And lo and behold: It worked. do with the storied company. The toys

3 8 S u m m e r 2 0 1 8 S TA R T U P S
accounting missteps came to light right as
the money dried up, forcing Wham-O to
SNOW SLUGGER scramble to ind new partners. It wound
up with new owners, a Chinese irm

WAYS TO PLAY
called Cornerstone Overseas Investments,
in 2006.
The plan then was to go big in China,
with its well-known love for heritage
American products. But in reality, Wham-O
was in for more trouble. Richards says
Cornerstone slashed marketing and moved
1 operations to Hong Kong, leaving only the
sales department in California. So he quit to
go work at surf outitter Body Glove, where
the lifelong surfer would stay for a decade.
He kept an eye on Wham-O, however,
and what he saw dismayed him. The new
2 owners all but stopped introducing any
new products, he says. They pulled back
on the often eccentric, high-spirited
marketing and promotion for which
Wham-O had once been known. (Remem-
ber those Saturday-morning TV commer-
3 cials?) They never built an e-commerce
business, nor much of an online proile.
Quality standards fell, Richards says, as the
company started slapping the Wham-O
name on cheap, open-market products and
then sometimes failed to even deliver
4 those shipments to retailers. Competitors
ate at Wham-O’s market share by churning
out “lying discs” and Hula Hoop–like
objects. (Only the names and speciic
designs of Wham-O’s decidedly low-tech
products are copyright protected, making
them easy to knock of.)
More critically, he says, a gap had
5 opened up. “A great strength of Wham-O
as a heritage company is that kids develop
a relationship with its products, and when
they have kids, they buy those products for
them.” Wham-O has a generational
continuity that makes it if not a sexy
brand, then certainly an enduring one. But
that decade of neglect created a discon-
nect. A generation of kids grew up without
Wham-O. That meant their kids might, too.
All the while, business plummeted.
were too random, too seasonal. Mattel but quickly stumbled. That’s when, in When Cornerstone acquired Wham-O in
couldn’t build a big business around them 2002, it brought in Todd Richards. He 2006, sales were estimated at $80 million
like it had with Hot Wheels and Barbie. rebuilt relationships with retailers, and the company had 300 stafers. By
So in 1997, Mattel sold Wham-O, this launched some products that fared well, 2015, revenues had fallen a reported
time to a newly constituted Wham-O group and updated existing products like the Slip 75 percent, and the staf was a fraction of
in Emmeryville, Calif. “This was a small ’N Slide with new features. Revenue grew what it once was. “It was a complete
business for Mattel, but we think we can between 20 and 25 percent over his irst strip-mine,” Richards says. “As I watched
build it into something much bigger with two years, he says. this deterioration take place, I thought to
our more focused approach,” then-CEO But then: more problems. The owners myself, This is just too bad. This is such an
Mojde Esfandiari told the media. had set a time limit on funding Wham-O, iconic name.”
The company had some early success and, according to Richards, some So Wham-O, what was left of it, anyway,

S TA R T U P S S u m m e r 2 0 1 8 3 9
was sold again, this time to a group tioned lying discs and Hula Hoop–like says Richard Gottlieb, founder and
consisting of Hong Kong–based Stallion objects. They found that the quality was principal of Global Toy Experts, a consult-
Sport and California’s Intersport. And good, the packaging was good, and the ing and design management irm. “But
Todd Richards, erstwhile Wham-O items sold well. So why take the chance? they’re no longer known as a hit maker.
Dumpster riler, was tapped to come back For a company with no e-commerce arm to And therefore they’re less attractive to
once again, this time as president, to try speak of, and a heavy reliance on a inventors.”
to revive the fortunes of this beloved shrinking number of brick-and-mortar This is a signiicant handicap—especially
brand of his youth. stores, this was an existential problem. for a company looking to make a big splash.
So Richards’ team devised a plan. They Companies, including Wham-O, maintain

G
iven the company’s history, you’d would leave the big retailers alone and design departments, but a lot of the best
expect Wham-O HQ to be a instead go after midtier regional chains, toy ideas come from independent inventors
madhouse, as opposed to a quiet, which the company had ignored for years. represented by inventor agencies (Tickle
chilly slab of tinted glass and Unlike the bigs, these operations were Me Elmo came from outside, for instance),
polished concrete, located across stafed by older buyers who knew and in order to attract these agencies, you
the street from a yogurt factory Wham-O well. “We knocked on the door have to be seen as a hit maker.
south of L.A. But here it is. When and said, ‘Hi; we’re Wham-O,’” Richards “You want to be the irst place an
the new owners took over Wham-O, they says. “They said, ‘Really? We haven’t had inventor goes,” Gottlieb says. A place that
set it here. While “Frisbee Fridays” happen anyone here from Wham-O in years. Come has the vision, the relationships, the
in the parking lot on occasion, Richards on in.’ And we started making placements industry proile, and the marketing
says, and the occasional prototype is all over the place.” horsepower to take a toy to a big audience
hauled into the general population for The thinking was that if Wham-O proved and enrich its inventor. Wham-O needs to
testing, the 30-strong staf here mostly
spends its days working.
All to the good. Because, as Richards
recounts, sitting in a blue oxford shirt and
sneakers in a conference room of the
lobby, this was a company in dire need
“WE’RE LOOKING
of repair.
As it happens, yes, some people love
for people who have
Wham-O. And some haven’t heard of it and
can learn to love it. But there was a third
group, too. They actively disliked it. And
the next greatest thing.”
unfortunately, those people were central
to Wham-O’s fortunes.
That problem was buyers. Richards itself valuable to the little chains, that could get back to this position. Richards admits
quickly discovered that a lot of buyers for serve as proof to the big chains. And it did. as much. “The agencies work their way
big retail stores—the gatekeepers toy After six months, Richards says, he started down the coast,” he says. “They hit Mattel.
makers must win over in order to secure hearing back from those bigger corporate They hit this oice, that oice. And then by
space on store shelves—had been burned. buyers. They said they’d seen Slip ’N Slides the time they end up here, it’s like, ‘OK,
He recalls going into a sales meeting at a at Meijer stores, or Boogie Boards at here are three items I still have left that
major retailer (he can’t reveal which) and Modell’s. They wanted to talk. Pretty soon, nobody took.’”
being told, “Todd, I’ve known you a long Wham-O was even placing some products It’s certainly a problem, but to Rich-
time, you’ve had a long history of servicing at Target and Walmart. “We jokingly ards, it also represented an opportunity.
us, but my boss would ire me if I put this referred to it as our Ho Chi Minh philoso- In the early aughts, the company hosted
on the shelf.” He got this response at other phy,” Richards says. “Control all the villages monthly Inventor Days, when people
big chains as well. and the city falls, right? But it’s working.” would line up down the block for a
Making matters worse, some of the chance to pitch their creations. It was a

W
gatekeepers Wham-O needed to win over ith the retailers warming up, continuation of the founding spirit of
also fell into the generational gap that had Wham-O moved on to its next Wham-O, a company that was historically
opened up. “I remember our irst meeting critical problem: product. open to anything. Inventor Day was done
at one of the big chains,” Richards says. Wham-O’s core lines are away with in time—the success rate was
“The buyer had been hurt by not getting ageless. They can sell them- low, and there was a certain legal hazard
deliveries, and she had this new assistant. selves if you get them in front associated with accepting designs from
She’s 24, 25, and she’s like, ‘Wait a of enough people. But the toy people not represented by agencies. But
minute; Frisbee is a Wham-O product?’ business runs on hits and novelty—things now, all that be damned, Richards
She had no idea.” that have been in short supply at the brought it back. Only online.
Turned of by Wham-O, or just ignorant company for a long time. “Wham-O was “We made it very clear,” Richards says.
of it, the big retailers had begun carrying originally all about innovative new toys, “We’re interested in your ideas. We’re
competitors’ products—those aforemen- and then they became an evergreen line,” looking for people who have the next

4 0 S u m m e r 2 0 1 8 S TA R T U P S
greatest thing. Bring it to us.” they also, as a group, possess a widely one of the best she’d seen. “Sometimes it’s
And so they did—dozens of them, every remarked upon (if not mocked) nostalgia so bad—like, you can’t even understand
week, with some ideas arriving fully for retro products and traditions. Many what [the inventor] is talking about,” she
leshed out, others turning up as sketches belonged to kickball leagues, or Ultimate says. But Hinnen approached it like a pro.
on diner napkins or scraps of notepaper, Frisbee leagues, say. He even sent in a prototype with a fake
others still utterly defying understanding. “The group that we’re looking at is snowball, and the staf tested it out in the
They all came to Wham-O. largely responsible for the resurgence of oice. “It was like hitting people’s heads,”
vinyl records,” Richards says. “For us, it’s she says. “We all loved it.”
ironic. There’s nothing really diferent. So Pronin told Hinnen Wham-O was

J
ohn Hinnen hit send on his pitch for
the Snow Slugger, and it arrived in This has been around forever. You just now interested. The process would move in
the inbox of a sharp-dressed, discovered it.” stages after that. An agreement was signed,
blunt-talking Ukrainian woman If Wham-O could get millennials to and the design was sent to the Hong Kong
named Olyvia Pronin. She is engage with its products, it increased the oice—which handles engineering and
Wham-O’s head of marketing, and chance that that cohort, which is starting testing. If they liked what they saw and the
the point person for inventors. to have kids, would buy Wham-O toys for numbers worked, the Snow Slugger would
Much of the heavy lifting in helping turn them, thereby restoring the generational go to market.
around Wham-O these days falls to continuity the company had lost.
Pronin began by setting up social feeds

T
Pronin—whose oice, like the others, feels his year is Wham-O’s 70th anniver-
just-moved-into, heaped with catalogs, on Facebook and Instagram that allowed sary, and the company has a lot of
toys, newsletters, vintage marketing older people to share their memories of events and promotions planned.
collateral, and promo materials for Wham-O toys. It blew up, she says. “When There’s also a functioning e-com-
Wham-O’s big 70th-anniversary push. we started the Facebook page, we merce operation, an Amazon store,
Taped on the wall is a picture of a kid received so many messages from people a better website, and more profes-
jumping a bike over another kid lying on saying, ‘Are you the real Wham-O? Or is sional catalogs. According
his back on the sidewalk. It reads, “Before this a knockof? Do you really exist?’” to Richards, Wham-O has nearly tripled
video games and computers.” Pronin recalls. People started posting the revenue that was projected from
When Pronin took the job in 2016, the memories, photos, stunt videos. “Pretty the previous owner. The goal is to hit
brand strength of Wham-O was immedi- much all of our Instagram is consumer- $100 million by the end of its irst ive
ately evident to her. It had history; its generated content,” she says. years. “We’re way ahead of where we
products were low-tech or no-tech—which Essentially, Wham-O had igured out wanted to be,” he says.
set them apart from the profusion of how to harvest an older generation’s love It has new toys coming out, too,
screen-based entertainment—and they for its products in a way that established including a line of indoor family games
brought people of all ages together, usually them as suitably, authentically retro for called Stay ’N Play. (In one, players strap a
outside. But the rot inside the company younger people. From there, those younger box full of balls to their waists and try to
was signiicant. When Pronin joined, the people began engaging as well, egged on shimmy them out.) There’s a line of
company’s website looked “so bad.” It by stunts like a scavenger hunt where the Superballs with of-kilter weights inside
would have to be rebuilt entirely. Wham- company hid Frisbees all over Los Angeles them that cause them to bounce errati-
O’s catalogs were “so obsolete.” Those and laid clues on social media. The event cally, and Hula Hoops with LED lights.
would have to be redone. There was no garnered press coverage and a robust There’s a new Frisbee that deies descrip-
e-commerce site. That would have to be turnout. “It was crazy,” Pronin says. tion, except to say it’s sort of square-
built, too. Wham-O didn’t even sell directly “People were really looking for Frisbees— shaped and loats strangely when thrown.
on Amazon. “I know it sounds really crazy and I’m like, ‘Come on, it’s just $5.99. You It was launched on Kickstarter, also a irst
in the 21st century,” she says. can buy it!’ But people loved it. I loved it.” for Wham-O. “We want people to feel a
Worse, there was virtually no social It stood as proof that for Wham-O, part of this, and we want them to get it as
media presence. That also would have to success was going to be about more than soon as we make it,” Pronin says.
be built. And the company would need to just selling an item. It was about meeting And then there’s the Snow Slugger,
restore its proile in the industry, which an untapped demand for being outside, oicially due out in the fall. “It’s like, Pinch
had all but dissolved. That meant staking a among people, away from your computer me,” John Hinnen says. “When I would
more prominent presence at industry and your phone. And this narrative led develop toys in the past and tell people,
events and in trade publications to put perfectly into the company’s invitation to they’d get excited, and then it’s like, well—
Wham-O back in the minds of freelance inventors: Put pen to paper, draw up a toy then it never happens.” But this time it did.
designers and retailers alike. that isn’t another app, and send it to us. As His kids are thrilled, his wife is thrilled, and
And it needed customers. That, too, was of summer 2018, Wham-O is developing or Hinnen is thrilled. He’s working on new
complicated. Here it had a boomer- has released six items that came from this designs, new ideas. He’s getting involved in
approved product, for children, and a big class of basement inventor. One arrived as the startup community in Peoria. After all
doughnut hole between the generations. nothing more than a hand drawing on a these years, he has arrived.
To plug the hole, it had to win over piece of paper. “It’s taken me a long, long time to get to
millennials. Wham-O was in luck here. When Hinnen’s snowball-bat submission this point,” he says. “My whole mantra is
Millennials may live on social media, but arrived in Pronin’s inbox, she considered it ‘Never give up.’”

S TA R T U P S S u m m e r 2 0 1 8 41
THE RISE OF

4 2 S u m m e r 2 0 1 8 S TA R T U P S
FEMALE
FRANCHISEES
Women are buying franchises at
a rate far faster than men. Now
the industry is asking itself: Why?
And how can we keep it going?
By KRIS FRIESWICK
Illustration Magdiel Lopez
R
Mainer got her direction after all. Her attractive to women. There’s a stereotype
brother, who was in the auto industry, that women are risk-averse. Psychologists
suggested a couple of days later that have actually found that women take as
Mainer and Shepler buy an Honest-1 Auto many risks as men, but they tend to
Care. It pitches itself as a “female-friendly” prioritize risk mitigation more than men
auto care franchise, with child play areas, do. Why take a chance on HR when you
baby changing facilities, HDTVs, compli- can take a chance on something else more
mentary beverages, and other family- important instead?
friendly amenities. Before her brother Other women see franchising as a
could even inish explaining, she was particularly family-friendly kind of
already halfway to yes. business. Shelly Sun, founder and CEO of
franchisor Brightstar Group Holdings,
THERE ARE A LOT of women like Mainer which provides home and healthcare
and Shepler in franchising these days. The staing services, hears that a lot from
numbers tell a story of rapid change: female franchisees. “They felt they were
Between 2011 and 2017, female franchise losing out on opportunities at work
ownership jumped by 83 percent, while because they were trying to care for
male ownership increased by only parents and children. Not that they weren’t
13 percent. That’s according to FranNet, a willing to work, but they couldn’t do a
company that matches individuals with straight 9-to-5,” she says. “It was very
franchise opportunities. (And yes, FranNet diicult to not face a signiicant glass
Robin Mainer was a longtime commis- franchises, too.) Today, FranNet says, ceiling if you weren’t willing to put your
sioned salesperson for an insurance 26 percent of its placements are women, family to the side.”
company. But by the time she turned 51, compared with 18 percent in 2011. FranNet consultant and author Leslie
those commissions had dried up. She The International Franchise Association Kuban says she hears similar things,
needed to igure out what, as she says, she (IFA) is seeing a similar shift. Women particularly from women who come to her
wanted to do when she grew up. Mainer owned 27 percent of franchise locations in for help inding a good franchise opportu-
and her friend and coworker Kimera 2017, it says, compared with 20.5 percent nity. She credits social change for driving
Shepler decided to think hard on it and in 2007. The franchising world is eager to them through the door. In the past, she says,
come back with a plan. understand what’s behind the trend so that women and men were expected to have
“I went home and prayed about it,” the industry can help speed it along even diferent career paths. “This generation of
Mainer says. “I said, I want a clear further. But the answer isn’t a simple women has been brought up with this
direction. I’ll do whatever you want, but I one—in part because women come to unspoken expectation of equality,” she says.
need a direction.” franchising for so many reasons. That may mean they want to run a business.
The next day, she went to get her oil Many are attracted to franchising for the Smoothie King franchisee Tonya
changed—not expecting it to be part of that same reasons that men are. They like the Brigham, 47, from Bowie, Md., its a
new direction. And for a while, it wasn’t. ability to join a company that already has a slightly diferent mold. While she built a
The man who checked her in took her keys successful track record. They like the fact thriving career, she wished for one that
and told her to sit down next to two other that franchises come with a set of estab- worked better with her family life. Brigham
women in the waiting area. As they waited, lished operating procedures, vendors, HR was an events and meetings producer for
a male customer came in, greeted the policies, and other operational details that, large associations in the Washington, D.C.,
same man at the front desk, and told him if not done right, can be the death of the area, which involved a lot of travel. “One
he was in a big hurry. go-it-alone entrepreneur. But some experts night my 18-month-old woke up with a
“The employee asked the gentleman, speculate that these qualities are especially fever, and I had to do a cross-country trip
‘What kind of oil do you want? Do you the next day,” she says. “I had to be on a
need wiper blades?’ All this other stuf,” light at 9 a.m. I cried all the way across
Mainer recalls. “I asked the other ladies, the country.”
OF WOMEN HAS BEEN

‘Did he ask you those questions?’ They Seven years later, she inally quit that
job and was a stay-at-home mom for three
“THIS GENERATION

said, ‘He said the same thing to us that he


BROUGHT UP WITH

said to you.’” years before looking for her next profes-


EXPECTATION OF

Mainer confronted the man. “You asked sional challenge. Smoothie King held the
THIS UNSPOKEN

that male customer all those questions, promise of work-life balance—although,


and you didn’t ask us any,” she said. she admits, it took a little while to really
The man replied, “I didn’t want to have kick in. “In the beginning, there were
EQUALITY.”

to explain it all to you.” 16-hour days,” she recalls. Some nights,


There was an audible gasp from the her kids would do homework and nap in
women in the waiting area. “Oh, no, he the back room while she worked. “But
didn’t,” said one. Then they all pounced on now I’m three miles away from home,
the hapless employee. not 3,000 miles away. All day long, I’m
Mainer and her two sisters-in-outrage swapping between businesswoman
ended up getting their oil changed and and Mommy. It’s just a much better
their tires rotated for free that day. And quality of life.”

4 4 S u m m e r 2 0 1 8 S TA R T U P S
IT’S NOT ALL good news. Women still
represent just more than a quarter of total
franchise ownership. Many say they were
driven to it by bad experiences in the general
workforce—or, like Mainer, encountering
sexism as a consumer. And once women get
into franchising, they very frequently come
up against a barrier: diiculty securing loans.
This problem was referenced by every
single woman interviewed for this story.
Banks, they say, still make it tough for
females on the whole to build businesses as
large as those of their male counterparts. For
Mainer, the problem emerged before she had
met with Honest-1 executives to discuss
buying a franchise. “One bank oicer told us
that little boys grow up in a garage and little
girls don’t,” Mainer recalls. “When I asked if
he wasn’t loaning me money because I was a
woman, he said yes.”
Mainer was fortunate; the “female-
friendly” Honest-1 was well-equipped to
handle the problem. Honest-1 corporate
stepped in to help Mainer and her friend
secure funding from a bank that had loaned
money to other Honest-1 franchisees, and
they opened their irst facility in Lewisville,
Tex., in January 2017. The company told them
to expect to make $750,000 in revenues in
their irst year; they did $1.3 million.
They’re already making plans to open
more locations.
And that bank that turned them down
because they were women?
“They’ve already called us asking
about being part of location number two,”
says Mainer.
It’s hard to know exactly how this problem
gets resolved, or how often it stymies
potential female franchisees. But this much
is clear: Even when women get funding, they
receive smaller loans for their franchises
than men do. Yet even that stat is problem-
atic. Bill Manger, associate administrator for
the oice of capital access at the Small
Business Administration (SBA), says, “It’s
possible that women may have historically
opened businesses that don’t require as
much capital as those opened by men.”
It’s a kind of chicken-and-egg situation—are
small loans causing women to open low-capi-
tal franchises, or do women gravitate toward
such franchises because they know it’s easier
for them to get smaller loans?
That issue seems to be resolving itself as
more women become franchisees, albeit
slowly. The average SBA loan given to a
female franchisee acting as the sole owner
has risen from an average size of $463,944 in
2013 to $568,475 in 2017, an increase of
roughly 22.5 percent. For male franchisees,
over the same period, that number has gone
from $689,387 to $729,093, a 5.76 percent industry, the rate that they’re entering is has noticed another plus. Female franchi-
increase. In other words, the women are raising an especially intriguing question: sees “look at their businesses from various
catching up with the men. How will franchising be diferent as the angles, rather than just being driven by one
genders even out? aspect of the business, like proit,” she says.
OF COURSE, not every female franchisee’s “They’re good at looking at how a particular
story contains an element of work-life AS IT TURNS OUT, we don’t need to issue afects the brand from, say, a PR and
balance, sexual harassment, or glass wait for an answer; many industry vets say marketing perspective. They look at how
ceilings. Sometimes it’s simply the power they’re already seeing a diference. decisions afect all areas of their business.
of the brand. Cassidi Brown, a 26-year-old Gigi Schweikert, president and COO of That is a huge positive for owners.”
Forney, Tex., resident and married mother Lightbridge Academy, an early- In fact, says Sun from the IFA, it’s a huge
of two, is about to open her irst Cool- childhood-education daycare franchise, positive for all.
greens franchise, a fast-casual chain says that women owners change the way a “In my perspective, I think women tend
restaurant featuring fresh ingredients. franchisor needs to do business. Women, to be better managers, leaders, and
Why? Because she has just always wanted she says, tend to be more collaborative and inspirers of talent,” Sun says. “Every
to own a Coolgreens. will share ideas more freely than male business needs employees to scale. In a
She fell in love with the concept the irst owners typically will. Franchisors need to small-business environment, where it feels
time she visited one. But the company wasn’t be able to accommodate that style. like family, women tend to create that
franchising, so she set out to start her own They’ll also need to be ready with dynamic to get the most of their people.
restaurant. “I tried to build my own similar answers. “One thing that’s refreshing with They make them feel cared for. People root
concept from the ground up,” she says. the amount of women we have as franchi- for that leader, including her employees.”
“Everything I did, I was comparing it to sees is that they’re not afraid to pick up the Brigham, the Smoothie King franchisee,
Coolgreens.” In mid-2017, the day she was phone and say, ‘How do we do this?’” says she feels that all the time. “The
planning to ile the paperwork to start her Schweikert says. “We’re able to smoke out a people I hire are from my community,”
company, her best friend called and told her lot of potential problems because they ask a she says. “I love it when my employees
that Coolgreens just announced it was going lot of questions.” tell me they’ve never had a boss make
to start franchising. She stopped what she was Courtney Sinelli, executive vice president them feel so important.” Though if trends
doing and reached out to her beloved brand. of Which Wich Superior Sandwiches continue, there may indeed be many
But no matter why women enter the (cofounded with her husband, Jef Sinelli), more bosses like her.
Average Annual AUV Per Store
1
$
2.2 M

PETS ARE RECESSION RESISTANT OWN YOUR OWN PET SUPPLIES PLUS FRANCHISE
2
• $72 billion industry and groZing • $Pericaos favorite neighborhood pet store
• 21 consecutive years of groZth2 • 430+ stores in 33 states Zith great territories available
r 6ingle and Pulti-unit opportunities available
For more information visit us online at www.petsuppliesplus.com/franchise/learnmore
or contact Christine Schultz at 734.793.6656.
PSP Franchising, LLC, 17197 N. Laurel Park Dr, Suite 402, Livonia, MI 48152

1 The figures above are for calendar year 2017. Of the 118 Reporting Franchised 6tores, 26 Reporting Franchised 6tores have been open 1 year and 50% e[ceeded $verage $nnual *ross 6ales of $1,524,609; 13
Reporting Franchised 6tores have been open 2-3 years and 38% e[ceeded $verage $nnual *ross 6ales of $2,109,398; 22 Reporting Franchised 6tores have been open 4-7 years and 36% e[ceeded $verage
$nnual *ross 6ales of $2,252,473; 17 Reporting Franchised 6tores have been open 8-11 years and 47% e[ceeded $verage $nnual *ross 6ales of $2,376,868; and 40 Reporting Franchised 6tores have
been open 12+ years and 43% e[ceeded $verage $nnual *ross 6ales of $2,647,941. Of the 118 Reporting Franchised 6tores, 36% e[ceeded $verage $nnual *ross 6ales of $2,228,312. The 0edian $nnual
*ross 6ales 9alue for Reporting Franchised 6tores that have been open 1 year is $1,523,780. The +ighest $nnual *ross 6ales 9alue is $2,363,595. The $verage $nnual *ross 6ales 9alue is $869,385. The
0edian $nnual *ross 6ales 9alue for Reporting Franchised 6tores that have been open 2-3 years is $1,811,045. The +ighest $ nnual *ross 6ales 9alue is $3,688,667. The /oZest $nnual *ross 6ales 9alue is
$1,026,563. The 0edian $nnual *ross 6ales 9alue for Reporting Franchised 6tores that have been open 4-7 years is $2,109,760. The +ighest $nnual *ross 6ales 9alue is $3,939,665. The /oZest $nnual *ross
6ales 9alue is $1,213,191. The 0edian $nnual *ross 6ales 9alue for Reporting Franchised 6tores that have been open 8-11 years is $2,347,422. The +ighest $nnual *ross 6ales 9alue is $3,903,289. The /oZest
$nnual *ross 6ales 9alue is $1,340,956. The 0edian $nnual *ross 6ales 9alue for Reporting Franchised 6tores open 12+ years is $2,158,718. The +ighest $nnual *ross 6ales 9alue is $6,273,905. The /oZest
$nnual *ross 6ales 9alue is $893,783. The 0edian $nnual *ross 6ales 9alue for all Reporting Franchised 6tores is $1,880,737. The +ighest $nnual *ross 6ales 9alue is $6,273,905. The /oZest $nnual *ross
6ales 9alue is $869,385.
2 $ccording to the $33$: http://ZZZ.aPericanpetproducts.org/pressBindustrytrends.asp.
This advertisePent is not an offer to buy a franchise. $n offer to buy a franchise can be Pade by prospectus only.
©2018 3et 6upplies 3lus. $ll rights reserved. 3et 6upplies 3lus and 0inus The +assle are tradeParNs of 363 Franchising, //&.
FRANCHISE
ON
TREND
OUR
TOP 10
FRANCHISE
CATEGORIES
OF 2018
P H O T O G R A P H BY S H U T T E R S T O C K /A R T H I M E D E S

BY TRACY
STAPP
HEROLD

S TA R T U P S S u m m e r 2 0 1 8 4 9
FRANCHISE

W
hat types of franchises are thriving right now? The Pho Hoa
Vietnamese food
ones that give customers what they need (like
STARTUP COST
employment and health services), what they want $158K-$295.9K
(entertainment and beauty), and what they didn’t TOTAL UNITS
(FRANCHISED/CO.-OWNED)
even know they wanted until just a minute ago 65/10
(acupuncture and poke bowls). From emerging
industries to those that just keep going strong, we’ve The Poke Company
Poke
picked the 10 franchise categories we believe are
STARTUP COST
shining brightest in 2018. $280K-$365K

P H O T O G R A P H C O U R T E SY O F L E M O N S H A R K P O K É
As you read through this list, keep in mind that it is not intended as a TOTAL UNITS
(FRANCHISED/CO.-OWNED)
recommendation of any particular franchise. Before jumping into a trending 0/1
business—or any other opportunity—it’s vital that you do your due diligence.
Carefully review the company’s legal documents, consult with an attorney and Pokéworks
Poke
an accountant, and talk to current and former franchisees to find out whether
STARTUP COST
the franchise is right for you before you invest. $250K-$850.5K
TOTAL UNITS
(FRANCHISED/CO.-OWNED)
7/12
Keo Asian Cuisine
Asian restaurants
CONTENTS ASIAN FOOD STARTUP COST
Samurai Sam’s Teriyaki Grill
Japanese food
$221K-$425K
Asian Food / P.50 STARTUP COST
TOTAL UNITS $106.3K-$432.1K
Beauty/Grooming Services / P.51 For evidence that the American (FRANCHISED/CO.-OWNED)
palate has evolved, look no further 0/2 TOTAL UNITS
Children’s Enrichment / P.53 (FRANCHISED/CO.-OWNED)
than the Asian food category. You’ll
Entertainment/Recreation / P.55 ind concepts that never would 23/2
Komotodo Sushi Burrito
Fitness / P.57 have been franchised 20 years ago, Burrito-style sushi
inspired by a wide variety of cul-
Frozen Desserts / P.59 STARTUP COST
tures and cuisines, including sushi
Health Services / P.61 and the latest culinary craze, poke. $167.7K-$438.5K
Pest Control / P.62 TOTAL UNITS
(FRANCHISED/CO.-OWNED)
Pets / P.62 The Flame Broiler 0/1
Chicken, beef, and tofu rice bowls
Staing/Recruiting / P.64
STARTUP COST
L&L Hawaiian Barbecue
$256.7K-$408.5K
Asian-American food
TOTAL UNITS
(FRANCHISED/CO.-OWNED) STARTUP COST
190/0 $133.7K-$527K
TOTAL UNITS
(FRANCHISED/CO.-OWNED)
Ginger Sushi Boutique 184/0
Sushi
STARTUP COST
LemonShark Poké
$270.8K-$381.2K
Poke
TOTAL UNITS
(FRANCHISED/CO.-OWNED) STARTUP COST
140/0 $232.9K-$473.7K
TOTAL UNITS
(FRANCHISED/CO.-OWNED)
Gyu-Kaku Japanese 3/3
BBQ Restaurant
Japanese barbecue restaurants
Maki-Mee
STARTUP COST
Sushi
$785.3K-$2.1M
STARTUP COST
TOTAL UNITS
(FRANCHISED/CO.-OWNED) $251.1K-$356.99K
702/20 TOTAL UNITS
(FRANCHISED/CO.-OWNED)
0/2
HuHot Mongolian Grills
Mongolian grill restaurants
STARTUP COST
$984K-$1.2M
TOTAL UNITS LemonShark
(FRANCHISED/CO.-OWNED) Poké
49/12

5 0 S u m m e r 2 0 1 8 S TA R T U P S
Sriracha House Deka Lash In-Symmetry Spa
Asian fusion food Eyelash extensions Massages, acupuncture,
STARTUP COST
BEAUTY/ STARTUP COST facials, waxing
$222.3K-$402K GROOMING $199.5K-$359.9K STARTUP COST
TOTAL UNITS SERVICES TOTAL UNITS $128.5K-$285.7K
(FRANCHISED/CO.-OWNED) (FRANCHISED/CO.-OWNED) TOTAL UNITS
0/1 20/4 (FRANCHISED/CO.-OWNED)
0/1
They say beauty is in the eye of the
Sushi Runner beholder. Maybe that’s the reason Face. Brow & Beauty Bar
Sushi and Thai food for the sudden surge in franchises Makeup, eyebrow shaping and Island Society
STARTUP COST ofering lash and brow services. microblading, body waxing, facials, Spray tanning
$268.4K-$362.9K Other beauty and grooming ser- eyelash extensions STARTUP COST
vices, like hair care, waxing, and STARTUP COST $39.7K-$191.4K
TOTAL UNITS skin care, continue to grow as well.
(FRANCHISED/CO.-OWNED) $106K-$231.7K TOTAL UNITS
0/2 TOTAL UNITS (FRANCHISED/CO.-OWNED)
Amazing Lash Studio (FRANCHISED/CO.-OWNED) 0/2
Eyelash-extension salons 0/1
Teriyaki Madness
STARTUP COST J’adore
Asian food
$270.4K-$584.2K Fantastic Sams Cut & Color Eyebrow microblading, scalp
STARTUP COST micropigmentation, semipermanent
$270.7K-$651.4K TOTAL UNITS Hair salons
(FRANCHISED/CO.-OWNED) makeup, aesthetics
STARTUP COST
TOTAL UNITS 181/0 STARTUP COST
(FRANCHISED/CO.-OWNED) $145.4K-$317K
45/1 $81.3K-$106.4K
TOTAL UNITS
BeRaediant (FRANCHISED/CO.-OWNED) TOTAL UNITS
Facial aesthetics, anti-aging and 1,045/3 (FRANCHISED/CO.-OWNED)
Thai Express skin-rejuvenation services 0/1
Thai food
STARTUP COST First Choice Haircutters
STARTUP COST $83.1K-$243.5K The Lash Lounge
$330.4K-$731.7K Family hair salons
Eyelash extensions, cosmetic products,
TOTAL UNITS STARTUP COST
TOTAL UNITS (FRANCHISED/CO.-OWNED)
apparel, accessories
(FRANCHISED/CO.-OWNED) 0/1 $168.9K-$282.6K
STARTUP COST
302/0 TOTAL UNITS $147.6K-$297.5K
(FRANCHISED/CO.-OWNED)
Camille Albane Franchising 197/210 TOTAL UNITS
Upscale hair and beauty salons (FRANCHISED/CO.-OWNED)
11/3
STARTUP COST Flirty Girl Lash Studio
$245.9K-$424.8K Eyelash extensions and brow services
LaVida Massage
TOTAL UNITS STARTUP COST
(FRANCHISED/CO.-OWNED) Massages, skin care
270/0 $147.4K-$259.95K
STARTUP COST
TOTAL UNITS $284.8K-$476.4K
(FRANCHISED/CO.-OWNED)
Cookie Cutters Haircuts for Kids 0/2 TOTAL UNITS
Children’s hair salons (FRANCHISED/CO.-OWNED)
57/0
STARTUP COST Great Clips
$100K-$260K Hair salons
LunchboxWax
TOTAL UNITS STARTUP COST
(FRANCHISED/CO.-OWNED)
Body waxing
42/1 $136.9K-$258.3K
STARTUP COST
TOTAL UNITS $172.1K-$395.9K
(FRANCHISED/CO.-OWNED)
Cost Cutters Family Hair Care 4,285/0 TOTAL UNITS
Family hair salons (FRANCHISED/CO.-OWNED)
30/3
STARTUP COST Hammer & Nails -
$139.4K-$290.2K Grooming Shop for Guys
Massage Envy
TOTAL UNITS Men’s grooming services
(FRANCHISED/CO.-OWNED)
Massage therapy, stretch therapy,
STARTUP COST skin care, facials
382/236
$246.7K-$599.9K
STARTUP COST
TOTAL UNITS $434.8K-$1M
(FRANCHISED/CO.-OWNED)
1/1 TOTAL UNITS
(FRANCHISED/CO.-OWNED)
1,189/0
Hand and Stone
Massage and Facial Spa
Massage Heights
Massage and spa services
Therapeutic massage, facials
STARTUP COST
STARTUP COST
$480.5K-$583.6K
$430.1K-$637.4K
TOTAL UNITS
(FRANCHISED/CO.-OWNED) TOTAL UNITS
(FRANCHISED/CO.-OWNED)
325/1
144/5

S TA R T U P S S u m m e r 2 0 1 8 5 1
FRANCHISE

MassageLuXe
Therapeutic massage, facials, waxing
STARTUP COST
$399.2K-$550.6K
TOTAL UNITS
(FRANCHISED/CO.-OWNED)
42/5

My Salon Suite/Salon Plaza


Salon suites
STARTUP COST
$371.2K-$959.3K
TOTAL UNITS
(FRANCHISED/CO.-OWNED)
40/24

Namaste Nail Sanctuary


Nail salons
STARTUP COST
$220.6K-$470.3K
TOTAL UNITS
(FRANCHISED/CO.-OWNED)
0/0

Nikita Hair Amazing


Hair salons Lash Studio
STARTUP COST
$162.3K-$268.6K
TOTAL UNITS
(FRANCHISED/CO.-OWNED)
Salons by JC Snip-Its Supercuts
0/1
Salon suites Children’s hair salons, party services Hair salons
STARTUP COST STARTUP COST STARTUP COST
Palm Beach Tan $545.6K-$1.1M $129.98K-$239.4K $144.3K-$296.9K
Tanning
TOTAL UNITS TOTAL UNITS TOTAL UNITS
STARTUP COST (FRANCHISED/CO.-OWNED) (FRANCHISED/CO.-OWNED) (FRANCHISED/CO.-OWNED)
$479K-$789.1K 72/10 62/2 1,721/944
TOTAL UNITS
(FRANCHISED/CO.-OWNED) Salon Studios Beauty Mall spa810 Laser, Skin & Massage Tan Republic
257/189 Salon suites Laser hair removal, facials, skin care, Tanning, sunless tanning,
STARTUP COST massage, body contouring skin-care products
The Palms Tanning Resort $274K-$786K STARTUP COST STARTUP COST
Tanning $556.2K-$920.7K $96K-$388.5K
TOTAL UNITS
STARTUP COST (FRANCHISED/CO.-OWNED)
TOTAL UNITS TOTAL UNITS
$489.8K-$517K 2/6 (FRANCHISED/CO.-OWNED) (FRANCHISED/CO.-OWNED)
TOTAL UNITS 20/0 63/1
(FRANCHISED/CO.-OWNED) Seva Beauty
0/4 Eyebrow shaping, eyelash extensions, Spavia Day Spa VIP Laser
facials, tinting, makeup, spa services Massage, skin-care, and spa services Laser hair removal, facial aesthetics,
Phenix Salon Suites Franchising and products anti-aging and skin rejuvenation
STARTUP COST
Salon suites STARTUP COST $273K-$596.1K services, injectables
STARTUP COST $114.7K-$301K STARTUP COST
TOTAL UNITS
$293.2K-$965.8K TOTAL UNITS (FRANCHISED/CO.-OWNED) $151.1K-$362.1K

P H O T O G R A P H C O U R T E SY O F A M A Z I N G L A S H S T U D I O
TOTAL UNITS
(FRANCHISED/CO.-OWNED) 21/1 TOTAL UNITS
(FRANCHISED/CO.-OWNED)
180/0 (FRANCHISED/CO.-OWNED)
199/3 0/1
Sport Clips
Sharkey’s Cuts For Kids Men’s sports-themed hair salons
Pigtails & Crewcuts Children’s hair salons V’s Barbershop Franchise
STARTUP COST
Children’s hair salons STARTUP COST $189.3K-$354.5K Upscale men’s barbershops
STARTUP COST $124.9K-$151.99K STARTUP COST
TOTAL UNITS
$93.8K-$205.3K TOTAL UNITS (FRANCHISED/CO.-OWNED) $195.2K-$363.3K
TOTAL UNITS
(FRANCHISED/CO.-OWNED) 1,638/54 TOTAL UNITS
(FRANCHISED/CO.-OWNED) 53/1 (FRANCHISED/CO.-OWNED)
49/1 33/1
Sugaring NYC
Sirius Day Spa Franchising Sugaring hair removal
Roosters Men’s Grooming Centers Spa services Waxing the City
STARTUP COST
Men’s grooming services and products STARTUP COST $118.7K-$200.6K Facial and body waxing
STARTUP COST $477.95K-$698.8K STARTUP COST
TOTAL UNITS
$173.8K-$303.4K TOTAL UNITS (FRANCHISED/CO.-OWNED) $108.2K-$491.4K
TOTAL UNITS
(FRANCHISED/CO.-OWNED) 0/5 TOTAL UNITS
(FRANCHISED/CO.-OWNED)
1/1 (FRANCHISED/CO.-OWNED)
85/0 75/1

5 2 S u m m e r 2 0 1 8 S TA R T U P S
The Woodhouse Spas Bricks 4 Kidz CompuChild Goldfish Swim
Spa services and treatments; bath, Lego-engineering classes, STEAM classes School Franchising
body, and wellness products camps, parties STARTUP COST
Infant and child swimming lessons
STARTUP COST STARTUP COST $18.3K-$33K STARTUP COST
$597.4K-$793.7K $34.3K-$52.8K TOTAL UNITS
$1.3M-$3M
TOTAL UNITS TOTAL UNITS (FRANCHISED/CO.-OWNED) TOTAL UNITS
(FRANCHISED/CO.-OWNED) (FRANCHISED/CO.-OWNED) 29/1 (FRANCHISED/CO.-OWNED)
48/4 631/0 64/1
ConfidentLee
YeloSpa British Swim School USA Confidence-building courses HappyFeet Legends International
Massage, skin care, Swimming lessons for ages 3 months for children and adults Soccer programs for ages 2 to 18
sleep therapy, facials and older STARTUP COST STARTUP COST
STARTUP COST STARTUP COST $7.1K-$17.1K $22.5K-$29.4K
$438.3K-$1.2M $92.2K-$179K TOTAL UNITS TOTAL UNITS
TOTAL UNITS TOTAL UNITS (FRANCHISED/CO.-OWNED) (FRANCHISED/CO.-OWNED)
(FRANCHISED/CO.-OWNED) (FRANCHISED/CO.-OWNED) 0/1 116/3
0/1 103/0
D-BAT Academies Hi-Five Sports Franchising
Challenge Island Indoor baseball and softball training, Youth sports programs
Educational enrichment programs batting cages, merchandise
CHILDREN’S STARTUP COST STARTUP COST
STARTUP COST
$29.2K-$567.5K
ENRICHMENT $47.6K-$62.5K $315.2K-$611.6K TOTAL UNITS
TOTAL UNITS TOTAL UNITS (FRANCHISED/CO.-OWNED)
(FRANCHISED/CO.-OWNED) (FRANCHISED/CO.-OWNED) 9/4
From coding to cooking and 54/3 49/0
swimming to science, there’s an High Touch-High Tech
enrichment franchise for just about Chef It Up!/Chef It Up 2 Go! Drama Kids International Science enrichment activities for
every interest under the sun. And Allergy-friendly cooking parties, After-school drama classes and schools/parties
with parents more than willing to classes, and events summer camps STARTUP COST
pay for their kids to learn (and
have fun doing it), it’s no surprise STARTUP COST STARTUP COST $62.8K-$69K
this has become one of the fastest- $36.1K-$95.7K $28.8K-$49.5K TOTAL UNITS
growing franchise categories. TOTAL UNITS TOTAL UNITS (FRANCHISED/CO.-OWNED)
(FRANCHISED/CO.-OWNED) (FRANCHISED/CO.-OWNED) 29/4
10/4 233/0
Abrakadoodle
Art-education programs Ho Math Chess Tutoring Center
CodeFu Engineering for Kids After-school math, chess, and puzzle
STARTUP COST Computer-science enrichment STEM activities learning programs
$37.9K-$80.6K programs STARTUP COST STARTUP COST
TOTAL UNITS STARTUP COST $27.3K-$93.7K $2.5K-$31.6K
(FRANCHISED/CO.-OWNED)
397/2 $40K-$64K TOTAL UNITS TOTAL UNITS
TOTAL UNITS (FRANCHISED/CO.-OWNED) (FRANCHISED/CO.-OWNED)
(FRANCHISED/CO.-OWNED) 171/1 13/1
Amazing Athletes 0/1
Educational sports programs
Flour Power Kids iCode Computer Science
STARTUP COST Code Ninjas Cooking Studios School for Kids
$30.9K-$43.9K Computer-coding learning centers Children’s cooking classes, parties, Computer programming, robotics, and
TOTAL UNITS STARTUP COST and camps; adult cooking classes creative arts training for ages 8 to 17
(FRANCHISED/CO.-OWNED)
96/0 $109.5K-$210.5K STARTUP COST STARTUP COST
TOTAL UNITS
$131.7K-$241.7K $240K-$343K
(FRANCHISED/CO.-OWNED) TOTAL UNITS TOTAL UNITS
Aqua-Tots Swim Schools 0/1 (FRANCHISED/CO.-OWNED) (FRANCHISED/CO.-OWNED)
Swimming lessons 5/0 0/1
STARTUP COST the Coder School
$493.2K-$1M Coding classes for ages 7 to 18 Fun Bus Fitness Fun on Wheels IDEA Lab International Franchise
TOTAL UNITS STARTUP COST Mobile children’s fitness STEAM enrichment classes, camps,
(FRANCHISED/CO.-OWNED)
$65.3K-$150.7K and entertainment and parties
72/1
TOTAL UNITS STARTUP COST STARTUP COST
(FRANCHISED/CO.-OWNED) $140.5K-$171.8K $60.2K-$281K
Bach to Rock 17/3 TOTAL UNITS TOTAL UNITS
Music schools (FRANCHISED/CO.-OWNED) (FRANCHISED/CO.-OWNED)
STARTUP COST 25/1 8/3
Color It In
$340.5K-$507.5K Art supply stores; children’s
TOTAL UNITS art workshops and parties Genius Kids i9 Sports
(FRANCHISED/CO.-OWNED)
STARTUP COST Preschool, daycare, public-speaking Youth sports leagues,
17/6 enrichment programs camps, and clinics
$83.4K-$141.5K
STARTUP COST STARTUP COST
TOTAL UNITS
Bear Paddle Swim School (FRANCHISED/CO.-OWNED) $239.9K-$619.5K $59.9K-$69.9K
Child swimming lessons 0/1 TOTAL UNITS TOTAL UNITS
STARTUP COST (FRANCHISED/CO.-OWNED) (FRANCHISED/CO.-OWNED)
$1.5M-$2.1M 25/8 128/1
TOTAL UNITS
(FRANCHISED/CO.-OWNED)
0/10

S TA R T U P S S u m m e r 2 0 1 8 5 3
FRANCHISE

JumpBunch Little Kickers Mighty Kicks NZone Sports of America


Mobile children’s sports Preschool soccer programs Mobile soccer programs Sports leagues and programs
and fitness programs STARTUP COST
for ages 2 to 12 for ages 2 to 18
STARTUP COST $23.2K-$34.6K STARTUP COST STARTUP COST
$45.8K-$59.3K TOTAL UNITS $10.2K-$16.2K $41.1K-$56.1K
TOTAL UNITS (FRANCHISED/CO.-OWNED) TOTAL UNITS TOTAL UNITS
(FRANCHISED/CO.-OWNED) 278/2 (FRANCHISED/CO.-OWNED) (FRANCHISED/CO.-OWNED)
43/0 34/1 37/0

P H O T O G R A P H C O U R T E SY O F S C H O O L O F R O C K
Little Medical School
Kidokinetics Healthcare-themed after-school and My Gym Children’s One River School of Art & Design
Mobile children’s physical education summer-camp programs Fitness Center Art classes and camps for all ages
programs STARTUP COST Early-learning/fitness programs STARTUP COST
STARTUP COST $36.4K-$53.2K STARTUP COST $204.8K-$296K
$42.9K-$57K TOTAL UNITS
$36.8K-$249.7K TOTAL UNITS
TOTAL UNITS (FRANCHISED/CO.-OWNED) TOTAL UNITS (FRANCHISED/CO.-OWNED)
(FRANCHISED/CO.-OWNED) 36/3 (FRANCHISED/CO.-OWNED) 1/2
5/10 503/0
Mad Science Group One Sports Nation
Kids Can CAD Science education Nutty Scientists Youth sports leagues
Technology education programs and entertainment programs Science enrichment STARTUP COST
for grades 3 through 12 STARTUP COST and entertainment programs $42.2K-$89.6K
STARTUP COST $74.8K-$109.5K STARTUP COST TOTAL UNITS
$38.4K-$45.7K TOTAL UNITS $50.7K-$263.1K (FRANCHISED/CO.-OWNED)
TOTAL UNITS (FRANCHISED/CO.-OWNED) TOTAL UNITS 21/1
(FRANCHISED/CO.-OWNED) 141/0 (FRANCHISED/CO.-OWNED)
0/1 271/5

KidzArt
Art-education programs, products,
and services
School of Rock
STARTUP COST
$21.5K-$34.1K
TOTAL UNITS
(FRANCHISED/CO.-OWNED)
64/0

Kidz On The Go
Mobile children’s fitness programs
STARTUP COST
$100K-$125K
TOTAL UNITS
(FRANCHISED/CO.-OWNED)
2/2

Kinderdance International
Children’s dance, gymnastics, fitness,
and yoga programs
STARTUP COST
$17.95K-$46.1K
TOTAL UNITS
(FRANCHISED/CO.-OWNED)
134/2

LearningRx
Learning enhancement, cognitive
training, reading training
STARTUP COST
$83.5K-$198K
TOTAL UNITS
(FRANCHISED/CO.-OWNED)
70/1

The Little Gym International


Development/fitness programs
STARTUP COST
$181.5K-$428.5K
TOTAL UNITS
(FRANCHISED/CO.-OWNED)
389/0

5 4 S u m m e r 2 0 1 8 S TA R T U P S
Parisi Speed School RedLine Athletics Franchising STEM For Kids Tutu School
Youth sports performance training Youth athletic training centers Engineering, computer programming, Children’s ballet schools
STARTUP COST STARTUP COST and robotics programs for ages 4 to 14 STARTUP COST
$67.8K-$167.8K $188.3K-$270.5K STARTUP COST $68.3K-$135.2K
TOTAL UNITS TOTAL UNITS $19.9K-$48.7K TOTAL UNITS
(FRANCHISED/CO.-OWNED) (FRANCHISED/CO.-OWNED) TOTAL UNITS (FRANCHISED/CO.-OWNED)
95/0 11/1 (FRANCHISED/CO.-OWNED) 27/3
32/5
Parker-Anderson Enrichment RoboThink Young Rembrandts Franchise
Enrichment programs STEM programs SwimLabs Swim School Drawing classes for ages 3 to 12
STARTUP COST STARTUP COST
Child and adult swimming lessons STARTUP COST
$37.4K-$109.5K $40.7K-$110.5K STARTUP COST $41.3K-$48.1K
TOTAL UNITS TOTAL UNITS $494.5K-$1.2M TOTAL UNITS
(FRANCHISED/CO.-OWNED) (FRANCHISED/CO.-OWNED) TOTAL UNITS (FRANCHISED/CO.-OWNED)
14/1 11/2 (FRANCHISED/CO.-OWNED) 105/0
11/0
Professor Egghead SafeSplash Swim School
Science and engineering classes, Child and adult swimming lessons, Taste Buds Kitchen
camps, and parties for ages 4 to 10 parties, summer camps Cooking events for children and adults ENTERTAINMENT/
STARTUP COST STARTUP COST STARTUP COST
$206.6K-$360.2K
RECREATION
$22.3K-$34.5K $39K-$866K
TOTAL UNITS TOTAL UNITS TOTAL UNITS
(FRANCHISED/CO.-OWNED) (FRANCHISED/CO.-OWNED) (FRANCHISED/CO.-OWNED)
Some franchises just want to have
8/0 115/18 8/1
fun—or at least they want their cus-
tomers to. While kids and families
School of Rock TGA Premier Junior Golf are often the target audience for
Music education Youth golf programs these types of businesses, enter-
STARTUP COST tainment activities aimed strictly at
STARTUP COST
$21.5K-$62.8K adults, like paint-and-sips and
$136.9K-$339.1K escape rooms, have gained popular-
TOTAL UNITS TOTAL UNITS ity in recent years.
(FRANCHISED/CO.-OWNED) (FRANCHISED/CO.-OWNED)
179/30 55/2
Adventure Kids Playcare
Child-care/entertainment centers
Skyhawks Sports & Supertots TGA Premier Sports
Sports Academy Youth sports programs STARTUP COST
Sports camps and programs $344.3K-$589K
STARTUP COST
$29.8K-$68.2K TOTAL UNITS
STARTUP COST
(FRANCHISED/CO.-OWNED)
$25.8K-$58.4K TOTAL UNITS 9/4
(FRANCHISED/CO.-OWNED)
TOTAL UNITS
(FRANCHISED/CO.-OWNED)
13/1
62/63 AirTime International Franchise
Trampoline parks/entertainment
TGA Premier Youth Tennis
centers
Snapology Youth tennis programs
STEM education programs STARTUP COST
STARTUP COST
$1.3M-$1.99M
STARTUP COST $21.5K-$62.8K
$34.5K-$185K TOTAL UNITS
TOTAL UNITS (FRANCHISED/CO.-OWNED)
(FRANCHISED/CO.-OWNED)
TOTAL UNITS 4/2
(FRANCHISED/CO.-OWNED) 43/1
37/1
American Poolplayers Association
Tippi Toes
Recreational billiard leagues
Soccer Shots Franchising Children’s dance classes
Soccer programs for ages 2 to 8 STARTUP COST
STARTUP COST
$20.8K-$28.6K
STARTUP COST $52K-$62.5K
$41K-$53.95K TOTAL UNITS
TOTAL UNITS (FRANCHISED/CO.-OWNED)
(FRANCHISED/CO.-OWNED)
TOTAL UNITS 320/4
(FRANCHISED/CO.-OWNED)
32/0
183/8
Board & Brush Creative Studio
Tumbles
DIY wood-sign workshops
Children’s fitness and STEAM classes
STARTUP COST
STARTUP COST
$62.3K-$89.4K
$258.2K-$337.5K
TOTAL UNITS
TOTAL UNITS (FRANCHISED/CO.-OWNED)
(FRANCHISED/CO.-OWNED)
124/7
8/0

Bottle & Bottega


Paint-and-sip studios
STARTUP COST
$97.8K-$162.3K
TOTAL UNITS
(FRANCHISED/CO.-OWNED)
24/2

S TA R T U P S S u m m e r 2 0 1 8 5 5
FRANCHISE

centertec Dream Vacations Luv 2 Play


Virtual-reality entertainment centers Travel agencies Indoor playgrounds
STARTUP COST STARTUP COST STARTUP COST
$597.8K-$1.8M $3.2K-$21.9K $288.5K-$1.1M
TOTAL UNITS TOTAL UNITS TOTAL UNITS
(FRANCHISED/CO.-OWNED) (FRANCHISED/CO.-OWNED) (FRANCHISED/CO.-OWNED)
0/1 1,119/0 6/1

ClimbZone Franchising Expedia CruiseShipCenters Monkey Joe’s Parties & Play


Climbing-wall family entertainment Retail travel agencies Family entertainment centers
centers STARTUP COST STARTUP COST
STARTUP COST $167.4K-$264.4K $918.1K-$1.5M
$1.9M-$2.99M TOTAL UNITS TOTAL UNITS
TOTAL UNITS (FRANCHISED/CO.-OWNED) (FRANCHISED/CO.-OWNED)
(FRANCHISED/CO.-OWNED) 221/1 49/0
0/1
Freedom Boat Club Nailed It Franchising
Color Me Mine Enterprises Membership boat clubs DIY studios
Paint-your-own-ceramics studios STARTUP COST STARTUP COST
STARTUP COST $144.2K-$193.7K $90.6K-$188.5K
$146.1K-$193.8K TOTAL UNITS TOTAL UNITS
TOTAL UNITS (FRANCHISED/CO.-OWNED) (FRANCHISED/CO.-OWNED)
(FRANCHISED/CO.-OWNED) 121/19 0/2
131/10
Fun Fieldz Painting with a Twist
Complete Weddings + Events Mobile sports-themed Paint-and-sip studios
Photography, DJ, video, and parties and events STARTUP COST
photo-booth services Wine & Design
STARTUP COST $89.3K-$188.3K
STARTUP COST $29.8K-$50.1K TOTAL UNITS
$26.4K-$48.7K TOTAL UNITS (FRANCHISED/CO.-OWNED)
TOTAL UNITS (FRANCHISED/CO.-OWNED) 285/4
(FRANCHISED/CO.-OWNED) 0/1 SailTime Group
194/2 Membership boat clubs
Paniq Room
Funtopia Escape rooms STARTUP COST
the Coop Franchise Group Indoor playgrounds $70.7K-$151.95K
STARTUP COST
Play and party spaces STARTUP COST $164.9K-$264.9K TOTAL UNITS
(FRANCHISED/CO.-OWNED)
STARTUP COST $627.1K-$1.3M TOTAL UNITS 26/1
$130.5K-$283.5K TOTAL UNITS (FRANCHISED/CO.-OWNED)
TOTAL UNITS (FRANCHISED/CO.-OWNED) 1/8
(FRANCHISED/CO.-OWNED) 4/4 Share My Coach Franchise
4/1 Rental management of
Pinot’s Palette privately owned RVs
GameTruck Licensing Paint-and-sip studios
Cruise Planners Mobile video-game theaters STARTUP COST
STARTUP COST $62.8K-$84.2K
Travel agencies STARTUP COST $63.4K-$204.2K
STARTUP COST $146.6K-$311.2K TOTAL UNITS
TOTAL UNITS (FRANCHISED/CO.-OWNED)
$2.1K-$22.9K (FRANCHISED/CO.-OWNED)
TOTAL UNITS 6/1
TOTAL UNITS (FRANCHISED/CO.-OWNED) 135/4
(FRANCHISED/CO.-OWNED) 69/0
2,564/1 Silvercloud Trailer Events
RentMotoped Mobile photo booth and bar services
Kampgrounds of America Motorized-bicycle rentals using vintage-style trailers
Ctrl V Campgrounds and RV parks STARTUP COST
Virtual-reality arcades STARTUP COST
STARTUP COST $180.2K-$223.8K $138.7K-$204K
STARTUP COST $210.95K-$4.5M TOTAL UNITS
$151.1K-$248.1K TOTAL UNITS
TOTAL UNITS (FRANCHISED/CO.-OWNED)
(FRANCHISED/CO.-OWNED)
P H O T O G R A P H BY A N N A R O U T H / W I N E & D E S I G N

TOTAL UNITS (FRANCHISED/CO.-OWNED) 0/0 0/1


(FRANCHISED/CO.-OWNED) 465/30
13/1
Rockin’ Jump Sky Zone
Launch Trampoline Park Indoor trampoline arenas Trampoline playing courts
DivaDance Trampoline parks/entertainment and party spaces
Adult dance classes and parties centers STARTUP COST
STARTUP COST $1.3M-$2.7M
STARTUP COST STARTUP COST $1.4M-$2.9M
$28.5K-$42.5K $1.1M-$2.2M TOTAL UNITS
TOTAL UNITS (FRANCHISED/CO.-OWNED)
TOTAL UNITS TOTAL UNITS (FRANCHISED/CO.-OWNED) 180/1
(FRANCHISED/CO.-OWNED) (FRANCHISED/CO.-OWNED) 38/4
1/2 11/2
Sugar Plum Parties
Birthday party venues
STARTUP COST
$89.9K-$149.9K
TOTAL UNITS
(FRANCHISED/CO.-OWNED)
2/1

5 6 S u m m e r 2 0 1 8 S TA R T U P S
Baby Boot Camp Crunch Franchise
Prenatal and postpartum Fitness centers
fitness and nutrition STARTUP COST
STARTUP COST $304.5K-$2.1M
$5.1K-$12.7K TOTAL UNITS
TOTAL UNITS (FRANCHISED/CO.-OWNED)
(FRANCHISED/CO.-OWNED) 167/17
90/1
CycleBar
Blink Fitness Indoor cycling classes
Health and fitness centers STARTUP COST
STARTUP COST $251.9K-$489.2K
$637K-$2.1M TOTAL UNITS
TOTAL UNITS (FRANCHISED/CO.-OWNED)
(FRANCHISED/CO.-OWNED) 130/0
0/55
Epic Hybrid Training
Bodytek Fitness Fitness centers
Gyms STARTUP COST
STARTUP COST $64.7K-$142.3K
$222.6K-$373K TOTAL UNITS
TOTAL UNITS (FRANCHISED/CO.-OWNED)
(FRANCHISED/CO.-OWNED) 2/2
0/3
ETF Fitness
Body Therapeutix Fitness studios
Outdoor fitness centers STARTUP COST
STARTUP COST $241.5K-$567.5K
$44.1K-$90.7K TOTAL UNITS
TOTAL UNITS (FRANCHISED/CO.-OWNED)
(FRANCHISED/CO.-OWNED) 0/3
Urban Air Adventure Park 0/1
Trampoline parks/entertainment
centers
FITNESS F45 Training
Burn Boot Camp Fitness studios
STARTUP COST Women’s fitness centers
$1.5M-$2.2M STARTUP COST
Even as it continues to grow year STARTUP COST $210K-$289K
TOTAL UNITS after year, the itness industry is $105.6K-$168.9K
(FRANCHISED/CO.-OWNED) slimming down. Giant gyms are TOTAL UNITS
23/5 TOTAL UNITS (FRANCHISED/CO.-OWNED)
giving way to small studios and 611/2
(FRANCHISED/CO.-OWNED)
even mobile, in-home training. That 71/4
Wine & Design means more afordable opportu-
Paint-and-sip studios nities, too. More than a quarter of Fit Body Boot Camp
these franchises can be started for The Camp Transformation Center Indoor fitness boot camps
STARTUP COST Fitness/weight-loss services
less than $100,000. STARTUP COST
$52.8K-$105K
STARTUP COST $37.7K-$87.5K
TOTAL UNITS $181K-$326.5K
(FRANCHISED/CO.-OWNED) Alkalign Studios TOTAL UNITS
71/1 Group fitness classes, streaming TOTAL UNITS (FRANCHISED/CO.-OWNED)
fitness classes, nutrition coaching (FRANCHISED/CO.-OWNED) 405/0
66/19
X-Golf Franchise STARTUP COST
Indoor golf simulators $173.3K-$521K Fit36
TOTAL UNITS CKO Kickboxing Group fitness training
STARTUP COST Kickboxing fitness classes
(FRANCHISED/CO.-OWNED) STARTUP COST
$400K-$900K 2/2 STARTUP COST $161.9K-$278.95K
TOTAL UNITS $112.99K-$378.4K
(FRANCHISED/CO.-OWNED) TOTAL UNITS
9/0 Anytime Fitness TOTAL UNITS (FRANCHISED/CO.-OWNED)
Fitness centers (FRANCHISED/CO.-OWNED) 12/0
74/1
Yogi Bear’s Jellystone Park STARTUP COST
Camp-Resorts $89.4K-$677.8K Fit4Mom
Family camping resorts TOTAL UNITS Club Pilates Franchise Prenatal and postpartum fitness
(FRANCHISED/CO.-OWNED) Reformer Pilates classes and wellness programs
STARTUP COST
3,969/38 STARTUP COST STARTUP COST
$52K-$3M
$220.3K-$310.7K $6.2K-$23.7K
TOTAL UNITS
(FRANCHISED/CO.-OWNED) Atlas Fitness TOTAL UNITS TOTAL UNITS
85/0 24-hour fitness centers (FRANCHISED/CO.-OWNED) (FRANCHISED/CO.-OWNED)
353/0 259/1
STARTUP COST
$184.2K-$707.5K
TOTAL UNITS
(FRANCHISED/CO.-OWNED)
0/1

S TA R T U P S S u m m e r 2 0 1 8 5 7
FRANCHISE

Fitness Together
Personal training
STARTUP COST
$147K-$192.4K
TOTAL UNITS
(FRANCHISED/CO.-OWNED)
144/0

Gold’s Gym
HEALTH AND FITNESS CEN-
TERS STARTUP COST
$2.2M-$5M
TOTAL UNITS
(FRANCHISED/CO.-OWNED)
571/148

GymGuyz
Mobile personal training
STARTUP COST
$56.7K-$220.8K
TOTAL UNITS
(FRANCHISED/CO.-OWNED)
167/4

Hard Exercise Works


Fitness programs
STARTUP COST
$126.7K-$457.6K
TOTAL UNITS
(FRANCHISED/CO.-OWNED)
17/1

Honor Yoga
Yoga and meditation classes
STARTUP COST
$116.7K-$205.6K
TOTAL UNITS
(FRANCHISED/CO.-OWNED)
5/4

iLoveKickboxing
Kickboxing fitness classes
STARTUP COST
$157.9K-$398.5K
TOTAL UNITS
(FRANCHISED/CO.-OWNED)
208/6

Iron Tribe Fitness


Group personal-training gyms
STARTUP COST
$300K-$433.5K Jazzercise
TOTAL UNITS
(FRANCHISED/CO.-OWNED)
30/8
P H O T O G R A P H C O U R T E SY O F J A Z Z E R C I S E I N C.

Just You Fitness Live 2 B Healthy Senior Fitness 9Round


Jazzercise Personal training Exercise programs for seniors Kickboxing circuit-training programs
Group fitness classes, conventions, STARTUP COST STARTUP COST STARTUP COST
apparel, and accessories $26K-$39.4K $37.7K-$48.1K $87.2K-$128.8K
STARTUP COST TOTAL UNITS TOTAL UNITS TOTAL UNITS
$3.7K-$32.8K (FRANCHISED/CO.-OWNED) (FRANCHISED/CO.-OWNED) (FRANCHISED/CO.-OWNED)
3/1 35/0 657/7
TOTAL UNITS
(FRANCHISED/CO.-OWNED)
9,077/2 Legacy Fit The Max Challenge Ninjakour
Group interval-training classes 10-week fitness and nutrition programs Obstacle-course and gymastics
STARTUP COST STARTUP COST training and exercise facilities
$207.7K-$381.5K $131.9K-$280.6K STARTUP COST
TOTAL UNITS TOTAL UNITS
$272.3K-$445.6K
(FRANCHISED/CO.-OWNED) (FRANCHISED/CO.-OWNED) TOTAL UNITS
2/1 54/1 (FRANCHISED/CO.-OWNED)
0/1

5 8 S u m m e r 2 0 1 8 S TA R T U P S
Orangetheory Fitness Shred415 Workout Anytime 24/7 Cold Stone Creamery
Group personal training Fitness studios 24-hour health clubs Ice cream, sorbet
STARTUP COST STARTUP COST STARTUP COST STARTUP COST
$488.4K-$994.4K $440.3K-$959.2K $449.8K-$865.5K $50.2K-$467.5K
TOTAL UNITS TOTAL UNITS TOTAL UNITS TOTAL UNITS
(FRANCHISED/CO.-OWNED) (FRANCHISED/CO.-OWNED) (FRANCHISED/CO.-OWNED) (FRANCHISED/CO.-OWNED)
714/17 0/9 129/1 1,238/10

PickUp USA Fitness Snap Fitness The Zoo Health Club Creamistry
Basketball-focused fitness clubs 24-hour fitness centers Fitness centers Ice cream
STARTUP COST STARTUP COST STARTUP COST STARTUP COST
$337.3K-$794.1K $148.8K-$462.8K $71.1K-$415.5K $224.5K-$576.5K
TOTAL UNITS TOTAL UNITS TOTAL UNITS TOTAL UNITS
(FRANCHISED/CO.-OWNED) (FRANCHISED/CO.-OWNED) (FRANCHISED/CO.-OWNED) (FRANCHISED/CO.-OWNED)
5/0 1,376/34 22/0 50/2

Planet Fitness StretchLab Franchise Culver Franchising System


Fitness clubs Stretching classes and Frozen custard, specialty burgers
STARTUP COST related therapy services FROZEN STARTUP COST
$857.1K-$4.2M STARTUP COST DESSERTS $1.8M-$4.3M
TOTAL UNITS
$153.1K-$223.5K
TOTAL UNITS
(FRANCHISED/CO.-OWNED) TOTAL UNITS (FRANCHISED/CO.-OWNED)
1,353/58 (FRANCHISED/CO.-OWNED) There’s no denying the appeal of 623/8
3/0 all things cool, sweet, and creamy.
Polestar Pilates Studio Franchise While frozen-yogurt franchises that Dairy Queen
Pilates studios Sudore Wellness survived the saturation of the mar- Ice cream, burgers, chicken
Group interval training ket a few years back are still going
STARTUP COST STARTUP COST
strong, the trend today is toward
$121.8K-$196.95K STARTUP COST
more indulgent treats like frozen $1.1M-$1.9M
TOTAL UNITS
$355.2K-$745K custard and gelato. TOTAL UNITS
(FRANCHISED/CO.-OWNED) TOTAL UNITS (FRANCHISED/CO.-OWNED)
6/2 (FRANCHISED/CO.-OWNED) 6,905/2
0/1 Bahama Buck’s
Shaved ice, fruit smoothies
Pure Barre Dippin’ Dots Franchising
STARTUP COST
Barre fitness classes and apparel Tapout Fitness Specialty ice cream, frozen yogurt,
Fitness and martial arts $233.3K-$770.5K
STARTUP COST ices, sorbet
$168.1K-$300.7K TOTAL UNITS
STARTUP COST STARTUP COST
(FRANCHISED/CO.-OWNED)
TOTAL UNITS $83.6K-$597.5K 104/4 $112.2K-$366.95K
(FRANCHISED/CO.-OWNED) TOTAL UNITS TOTAL UNITs
454/13 (FRANCHISED/CO.-OWNED) (FRANCHISED/CO.-OWNED)
6/2 Baskin-Robbins 212/1
Ice cream, frozen yogurt,
Retro Fitness frozen beverages
Health clubs Title Boxing Club Freddy’s Frozen Custard
Boxing and kickboxing fitness classes, STARTUP COST
STARTUP COST & Steakburgers
personal training, apparel $93.6K-$401.8K
$941.4K-$1.9M Frozen custard, steakburgers, hot dogs
STARTUP COST TOTAL UNITS
TOTAL UNITS (FRANCHISED/CO.-OWNED) STARTUP COST
$162.8K-$423.1K $592.8K-$1.99M
(FRANCHISED/CO.-OWNED) 7,982/0
148/0 TOTAL UNITS
TOTAL UNITS
(FRANCHISED/CO.-OWNED)
(FRANCHISED/CO.-OWNED)
161/2 Ben & Jerry’s 249/18
Row House Franchise Ice cream, frozen yogurt,
Indoor rowing classes sorbet, smoothies
TruFusion
STARTUP COST Group fitness studios Happy & Healthy Products
STARTUP COST
$231.6K-$353.8K Frozen fruit bars
STARTUP COST $156.4K-$486K
TOTAL UNITS STARTUP COST
$687.4K-$1.3M TOTAL UNITS
(FRANCHISED/CO.-OWNED) (FRANCHISED/CO.-OWNED) $50.1K-$92.6K
2/1 TOTAL UNITS
(FRANCHISED/CO.-OWNED) 557/29 TOTAL UNITS
1/2 (FRANCHISED/CO.-OWNED)

Self Made Training Facility 52/0


Bruster’s Real Ice Cream
Private personal training and UFC Gym Ice cream, frozen yogurt,
supplement sales Fitness, boxing, kickboxing, ices, sherbets Happy Cow Frozen Yogurt
STARTUP COST and MMA classes Frozen yogurt
STARTUP COST
$179K-$435.7K STARTUP COST $270.2K-$1.3M STARTUP COST
TOTAL UNITS $295.1K-$4.9M $210.4K-$392.5K
TOTAL UNITS
(FRANCHISED/CO.-OWNED)
TOTAL UNITS (FRANCHISED/CO.-OWNED) TOTAL UNITS
8/4 (FRANCHISED/CO.-OWNED) 195/2 (FRANCHISED/CO.-OWNED)
123/11 0/2
Carvel Ice Cream
Ice cream, ice-cream cakes
STARTUP COST
$250.6K-$415.5K
TOTAL UNITS
(FRANCHISED/CO.-OWNED)
398/0

S TA R T U P S S u m m e r 2 0 1 8 5 9
FRANCHISE

Freddy’s Frozen
Custard &
Steakburgers

Kona Ice Paciugo Gelato Caffe Reis & Irvy’s sweetFrog Premium
Shaved-ice trucks Gelato, pastries, beverages Frozen-yogurt vending machines Frozen Yogurt
STARTUP COST STARTUP COST STARTUP COST Self-serve frozen yogurt
$120.2K-$143K $103.5K-$455K $160.95K-$593.9K STARTUP COST
TOTAL UNITS TOTAL UNITS TOTAL UNITS $221K-$439.5K

P H O T O G R A P H C O U R T E SY O F F R E D D Y ' S F R OZ E N C U S TA R D & S T E A K B U R G E R S
(FRANCHISED/CO.-OWNED) (FRANCHISED/CO.-OWNED) (FRANCHISED/CO.-OWNED) TOTAL UNITS
894/14 32/4 0/3 (FRANCHISED/CO.-OWNED)
200/71
Kremo Ice Cream Popbar Rita’s Italian Ice
Ice cream Gelato, sorbetto, and frozen Italian ice, frozen custard Yogurtland Franchising
STARTUP COST yogurt on a stick STARTUP COST
Self-serve frozen yogurt
$180.9K-$273.5K STARTUP COST $150.5K-$440.9K STARTUP COST
TOTAL UNITS $217K-$458.4K TOTAL UNITS
$309.3K-$702K
(FRANCHISED/CO.-OWNED) TOTAL UNITS (FRANCHISED/CO.-OWNED) TOTAL UNITS
0/1 (FRANCHISED/CO.-OWNED) 605/0 (FRANCHISED/CO.-OWNED)
28/1 316/12
Marble Slab Creamery Stricklands Frozen Custard
Ice cream, frozen yogurt, baked goods Red Mango - Cafe & Juice Bar Frozen custard, ice cream, Yogurt Mountain
STARTUP COST
Frozen yogurt, smoothies, yogurt, sorbet Frozen yogurt, ice cream, gelato,
$293.1K-$376.1K juices, wraps STARTUP COST custard, sorbet, Italian ice
TOTAL UNITS STARTUP COST $188.5K-$315K STARTUP COST
(FRANCHISED/CO.-OWNED) $193.5K-$466K TOTAL UNITS $247.99K-$470.3K
335/0 TOTAL UNITS (FRANCHISED/CO.-OWNED) TOTAL UNITS
(FRANCHISED/CO.-OWNED) 4/0 (FRANCHISED/CO.-OWNED)
315/0 25/12
Morano Gelato Franchise
Gelato, espresso, granita Sub Zero Franchise
STARTUP COST
Ice cream, Italian ice,
$301.2K-$533.7K frozen yogurt, custard
TOTAL UNITS STARTUP COST
(FRANCHISED/CO.-OWNED) $239.5K-$484.5K
2/1 TOTAL UNITS
(FRANCHISED/CO.-OWNED)
49/3

6 0 S u m m e r 2 0 1 8 S TA R T U P S
CryoNow HealthSource Lifeologie Franchising
Cryotherapy, massage, ozone steam Chiropractic, rehabilitation, nutrition, Mental-health therapy
HEALTH sauna treatments and wellness services services
SERVICES STARTUP COST STARTUP COST STARTUP COST
$122.7K-$197.9K $60.6K-$250.7K $15K-$85K
TOTAL UNITS TOTAL UNITS TOTAL UNITS
Whatever the political future may (FRANCHISED/CO.-OWNED) (FRANCHISED/CO.-OWNED) (FRANCHISED/CO.-OWNED)
hold for healthcare, it’s clear the 0/1 264/0 3/3
franchise world believes it will con-
tinue to mean big business for years Dentalvana The Joint Medi-Weightloss
to come. And now in addition to Dental care Chiropractic services Franchising USA
traditional medical services, we’re Medical weight-loss
STARTUP COST STARTUP COST
seeing more alternative therapies, and wellness programs
like acupuncture and cryotherapy, $222.6K-$740.9K $211.4K-$339.9K
STARTUP COST
venture into franchising. TOTAL UNITS TOTAL UNITS
(FRANCHISED/CO.-OWNED) (FRANCHISED/CO.-OWNED) $215.3K-$417.8K
0/1 337/47 TOTAL UNITS
American Family Care (FRANCHISED/CO.-OWNED)
Urgent-care centers 86/12
East West Lice Clinics of America
STARTUP COST
Family healthcare centers Lice-treatment clinics
$821K-$1.3M Miracle Leaf
STARTUP COST STARTUP COST
TOTAL UNITS
$139.8K-$206.4K $64.6K-$104.5K Health centers providing medical
(FRANCHISED/CO.-OWNED) marijuana cards
119/66 TOTAL UNITS TOTAL UNITS
(FRANCHISED/CO.-OWNED) (FRANCHISED/CO.-OWNED) STARTUP COST
0/1 193/1 $78.3K-$93.3K
ApexNetwork Physical Therapy
TOTAL UNITS
Physical therapy (FRANCHISED/CO.-OWNED)
First Care Franchises Lice Squad.com
STARTUP COST 0/1
Family medical care Head-lice-removal services
$165.7K-$352K and urgent-care clinics and products
TOTAL UNITS
STARTUP COST STARTUP COST
Modern Acupuncture
(FRANCHISED/CO.-OWNED)
$567.6K-$786.9K $25.8K-$95.5K Acupuncture
29/32
STARTUP COST
TOTAL UNITS TOTAL UNITS
(FRANCHISED/CO.-OWNED) (FRANCHISED/CO.-OWNED) $193.8K-$349K
BeBalanced Hormone 0/7 16/19 TOTAL UNITS
Weight Loss Centers (FRANCHISED/CO.-OWNED)
Hormone-based weight-loss 1/0
and wellness services First Choice Pediatrics
Pediatric primary medical care
STARTUP COST
$122.4K-$176.7K STARTUP COST
$479.9K-$653.1K
TOTAL UNITS
(FRANCHISED/CO.-OWNED) TOTAL UNITS
18/1 (FRANCHISED/CO.-OWNED) Modern
0/6 Acupuncture
The Biostation
Medical spas Flawless Icon
Medical spas
STARTUP COST
$302.7K-$779.4K STARTUP COST
$131.4K-$193.2K
TOTAL UNITS
(FRANCHISED/CO.-OWNED) TOTAL UNITS
0/1 (FRANCHISED/CO.-OWNED)
0/1
P H O T O G R A P H BY E V E R A R D O K E EM E / M O D E R N A C U P U N C T U R E

CellsNowMD
Medical spas Fyzical Therapy
STARTUP COST & Balance Centers
$549.6K-$864.4K Physical therapy, balance and
vestibular therapy, preventive
TOTAL UNITS wellness services
(FRANCHISED/CO.-OWNED)
0/1 STARTUP COST
$82.3K-$390K
Chill Cryosauna TOTAL UNITS
(FRANCHISED/CO.-OWNED)
Cryotherapy
252/17
STARTUP COST
$75K-$250K
Glace Cryotherapy
TOTAL UNITS Whole-body cryotherapy
(FRANCHISED/CO.-OWNED)
1/1 STARTUP COST
$124.7K-$202.5K
TOTAL UNITS
(FRANCHISED/CO.-OWNED)
1/1

S TA R T U P S S u m m e r 2 0 1 8 6 1
FRANCHISE

My Eyelab Structural Elements Mosquito Squad Aussie Pet Mobile


Eye care and eyewear Orthopedic wellness clinics Outdoor pest control Mobile pet grooming
STARTUP COST STARTUP COST STARTUP COST STARTUP COST
$248.1K-$495.1K $185K-$632.9K $29.6K-$69.6K $139.9K-$148.9K
TOTAL UNITS TOTAL UNITS TOTAL UNITS TOTAL UNITS
(FRANCHISED/CO.-OWNED) (FRANCHISED/CO.-OWNED) (FRANCHISED/CO.-OWNED) (FRANCHISED/CO.-OWNED)
0/75 1/2 220/0 245/0

OrthoNow Superior Mosquito Defense Ben’s Barketplace


Orthopedic and sports-medicine Outdoor pest control Pet health-food stores
urgent-care centers PEST CONTROL STARTUP COST STARTUP COST
STARTUP COST $16.3K-$27.7K $188.6K-$360.6K
$491.3K-$990K TOTAL UNITS TOTAL UNITS
The newest breed of pest control (FRANCHISED/CO.-OWNED) (FRANCHISED/CO.-OWNED)
TOTAL UNITS franchises—largely focused on
(FRANCHISED/CO.-OWNED) 13/1 0/1
5/1 outdoor pests like mosquitoes and
ticks—continue to grow steadily,
thanks in part to their relatively low Camp Bow Wow
Pearle Vision startup costs and a rising demand Dog daycare, boarding, training,
Eye care and eyewear for their services due to health PETS grooming; in-home pet care
STARTUP COST concerns surrounding insect-borne STARTUP COST
$400.3K-$605.2K illnesses. $859.6K-$1.1M
Pets are no longer seen as prop-
TOTAL UNITS TOTAL UNITS
erty but as part of the family, and
(FRANCHISED/CO.-OWNED) Lawn Doctor (FRANCHISED/CO.-OWNED)
421/102 franchises that feed, groom, train, 134/9
Lawn, tree, and shrub care;
and care for them are reaping
mosquito and tick control
the rewards of that cultural shift.
Perspire Sauna Studio STARTUP COST According to the American Pet Camp Run-A-Mutt
Infrared sauna studios $101.9K-$115.9K Products Association, spending on Dog daycare and boarding
STARTUP COST TOTAL UNITS our furry friends will reach almost STARTUP COST
$218.5K-$304.3K (FRANCHISED/CO.-OWNED) $70 billion this year. $187.7K-$466.9K
537/0
TOTAL UNITS TOTAL UNITS
(FRANCHISED/CO.-OWNED) Auntie Jo’s Pet Sitting (FRANCHISED/CO.-OWNED)
0/3 Mosquito Joe Franchise Group 8/1
Outdoor pest control Pet-sitting, dog-walking,
Physical Therapy Now STARTUP COST horse and farm care
Physical therapy $66.6K-$127.5K STARTUP COST
STARTUP COST TOTAL UNITS $39.4K-$49.3K
$116.7K-$190K (FRANCHISED/CO.-OWNED) TOTAL UNITS
234/2 (FRANCHISED/CO.-OWNED)
TOTAL UNITS 0/1
(FRANCHISED/CO.-OWNED)
11/4

Profile by Sanford
Weight-loss and wellness services
STARTUP COST
$356.5K-$622K
TOTAL UNITS
(FRANCHISED/CO.-OWNED)
11/25

The Salt Suite


Salt therapy
STARTUP COST
$186.2K-$305.6K
TOTAL UNITS
(FRANCHISED/CO.-OWNED)
P H O T O G R A P H C O U R T E SY O F M O S Q U I T O J O E

3/2

Soul Focus
Wellness centers
STARTUP COST
$1.4M-$2.2M
TOTAL UNITS
(FRANCHISED/CO.-OWNED)
0/1

Mosquito Joe

6 2 S u m m e r 2 0 1 8 S TA R T U P S
Dee-O-Gee
Pet supplies and services
STARTUP COST
$161.5K-$387.5K
TOTAL UNITS
(FRANCHISED/CO.-OWNED)
0/2

D.O.G.
Dog daycare, boarding, grooming
STARTUP COST
$429K-$548.5K
TOTAL UNITS
(FRANCHISED/CO.-OWNED)
2/1

Doggies Gone Wild


Dog daycare and grooming
STARTUP COST
$145.6K-$618.8K
TOTAL UNITS
(FRANCHISED/CO.-OWNED)
0/2
Camp
Bow
The Dog Stop Wow
Dog daycare, boarding, walking,
grooming, training, products
STARTUP COST
$254.4K-$488.3K Groom & Go K9 Resorts Pet Supplies Plus
TOTAL UNITS Mobile pet grooming Luxury dog daycare and boarding Retail pet supplies and services
(FRANCHISED/CO.-OWNED)
STARTUP COST STARTUP COST STARTUP COST
5/4 $50.1K-$63.3K $915.7K-$1.3M $555.4K-$1.3M
TOTAL UNITS TOTAL UNITS TOTAL UNITS
Dogtopia (FRANCHISED/CO.-OWNED) (FRANCHISED/CO.-OWNED) (FRANCHISED/CO.-OWNED)
Dog daycare, boarding, 0/1 6/1 198/210
and spa services
STARTUP COST Hounds Town USA Mobile Pet Imaging Pets Warehouse
$416K-$1.1M Dog daycare, pet boarding, Mobile CT-scan services for animals Pets and pet supplies
TOTAL UNITS pet grooming STARTUP COST STARTUP COST
(FRANCHISED/CO.-OWNED)
STARTUP COST $554.9K-$624.6K $175K-$425K
45/5 $127.3K-$193K TOTAL UNITS TOTAL UNITS
TOTAL UNITS (FRANCHISED/CO.-OWNED) (FRANCHISED/CO.-OWNED)
The Dog Wizard (FRANCHISED/CO.-OWNED) 0/1 0/6
Dog training 3/1
STARTUP COST Petland Pet Wants
$47.8K-$64.3K Husse Pets, pet supplies, boarding, Natural pet-food stores/delivery
TOTAL UNITS Pet-product delivery daycare, grooming
STARTUP COST
(FRANCHISED/CO.-OWNED)
STARTUP COST STARTUP COST $56.8K-$191K
21/0 $34K-$90.5K $280K-$1M
TOTAL UNITS
TOTAL UNITS TOTAL UNITS (FRANCHISED/CO.-OWNED)
EarthWise Pet (FRANCHISED/CO.-OWNED) (FRANCHISED/CO.-OWNED) 70/0
Pet food and supplies, grooming 506/0 176/13
and self-wash services
P H O T O G R A P H BY C H U C K T R AV E R S / C A M P B O W W O W

Preppy Pet
STARTUP COST In Home Pet Services Pet Passages Pet daycare, boarding, grooming
$233K-$568K Pet-sitting, dog-walking Pet funeral and cremation
STARTUP COST
TOTAL UNITS services and products
STARTUP COST $100.95K-$248.2K
(FRANCHISED/CO.-OWNED)
$9.2K-$35.1K STARTUP COST
45/0 TOTAL UNITS
TOTAL UNITS $40.5K-$375K (FRANCHISED/CO.-OWNED)
(FRANCHISED/CO.-OWNED) TOTAL UNITS 15/1
Fetch! Pet Care 12/1 (FRANCHISED/CO.-OWNED)
Pet-sitting, dog-walking 2/1
Rabocao
STARTUP COST Jordan’s Pet Care Pet grooming
$37K-$44.3K Dog-walking, pet-sitting, dog training Pets Are Inn
STARTUP COST
TOTAL UNITS Pet care in private homes
STARTUP COST $70.9K-$164.1K
(FRANCHISED/CO.-OWNED)
$36.3K-$46K STARTUP COST
79/8 TOTAL UNITS
TOTAL UNITS $59.95K-$85.2K (FRANCHISED/CO.-OWNED)
(FRANCHISED/CO.-OWNED) TOTAL UNITS 0/2
0/1 (FRANCHISED/CO.-OWNED)
15/0

S TA R T U P S S u m m e r 2 0 1 8 6 3
FRANCHISE

Sit Means Sit Dog Training Wag N’ Wash Natural Labor Finders
Dog training Food & Bakery Industrial staing
STARTUP COST Pet food and supplies, grooming STAFFING/ STARTUP COST
$49.8K-$145.9K STARTUP COST RECRUITING $128.5K-$217.96K
TOTAL UNITS $525.3K-$751.5K TOTAL UNITS
(FRANCHISED/CO.-OWNED) TOTAL UNITS (FRANCHISED/CO.-OWNED)
119/1 (FRANCHISED/CO.-OWNED) Staing companies hire nearly 15 193/0
13/5 million temporary and contract em-
ployees annually, industry growth
Sitter4Paws Link Staffing Services
that has outpaced overall job growth
Pet-sitting, dog-walking Wild Birds Unlimited Staing, HR solutions
according to the American Staing
STARTUP COST
Bird-feeding supplies STARTUP COST
Association. And franchises make up
$21.3K-$46.8K and nature gift items $99.5K-$174K
a signiicant—and still expanding—
STARTUP COST chunk of that industry.
TOTAL UNITS TOTAL UNITS
(FRANCHISED/CO.-OWNED) $146.7K-$228.4K (FRANCHISED/CO.-OWNED)
7/1 TOTAL UNITS 32/8
All About People Staffing
(FRANCHISED/CO.-OWNED)
Temporary and direct-hire staing
316/0
Splash and Dash STARTUP COST Nextaff
Groomerie & Boutique $269.5K-$295.1K Staing
Pet products and grooming Zoom Room STARTUP COST
Indoor dog training and socialization, TOTAL UNITS
STARTUP COST (FRANCHISED/CO.-OWNED) $95.3K-$125.5K
$118.3K-$218.5K pet products
17/1 TOTAL UNITS
STARTUP COST (FRANCHISED/CO.-OWNED)
TOTAL UNITS
(FRANCHISED/CO.-OWNED) $137.1K-$290.6K 10/0
AtWork Group
16/0 TOTAL UNITS Temporary, temp-to-hire,
(FRANCHISED/CO.-OWNED)
and direct-hire staing Patrice & Associates
8/2
STARTUP COST Hospitality, retail, and sales recruiting
$152K-$211.5K STARTUP COST
TOTAL UNITS $84.95K-$93.9K
(FRANCHISED/CO.-OWNED) TOTAL UNITS
94/1 (FRANCHISED/CO.-OWNED)
Express 107/0
Employment
Professionals Express Employment
Professionals PrideStaff
Staing, HR solutions Staing
STARTUP COST STARTUP COST
$130K-$206K $112.6K-$237.5K
TOTAL UNITS TOTAL UNITS
(FRANCHISED/CO.-OWNED) (FRANCHISED/CO.-OWNED)
761/0 72/3

Fortune Personnel Remedy Intelligent Staffing


Consultants (FPC) Staing
Executive recruiting STARTUP COST

P H O T O G R A P H BY D AV I D M C N E ES E / E X P R E S S E M P LOY M E N T P R O F E S S I O N A L S
STARTUP COST $151.8K-$258.3K
$86.3K-$130.1K TOTAL UNITS
TOTAL UNITS (FRANCHISED/CO.-OWNED)
(FRANCHISED/CO.-OWNED) 121/0
65/1
Sanford Rose
Global Recruiters Network Associates International
Executive search services Executive search and recruiting
STARTUP COST STARTUP COST
$94.4K-$135.8K $108.3K-$143.6K
TOTAL UNITS TOTAL UNITS
(FRANCHISED/CO.-OWNED) (FRANCHISED/CO.-OWNED)
175/0 87/0

Jomsom Staffing Services Spherion Staffing


Temporary and permanent staing, Staing, recruiting
employment services STARTUP COST
STARTUP COST $100.5K-$167.9K
$84.1K-$127K TOTAL UNITS
TOTAL UNITS (FRANCHISED/CO.-OWNED)
(FRANCHISED/CO.-OWNED) 182/0
5/1

6 4 S u m m e r 2 0 1 8 S TA R T U P S
INVEST IN A BUSINESS THAT INVESTS IN COMMUNITY.

OVER 140 TRANSCENDS FITNESS TERRITORIES


OPEN LOCATIONS FOSTERS COMMUNITY AVAILABLE

39 MONTHS. 35 STATES. OVER 360 AWARDED LOCATIONS. NATIONWIDE TRANSFORMATION.


BURNBOOTCAMP.COM/OWN-A-BURN
CALL OR TEXT: 980-292-0771 EMAIL: FRANCHISEDEVELOPMENT@BURNBOOTCAMP.COM
This advertisement is not a franchise offering. The offer of a franchise can only be made through the delivery of a franchise disclosure document. Certain states require that we register the franchise disclosure document in
those states. We will not offer or sell franchises in those states until we have registered the franchise (or obtained an applicable exemption from registration) and delivered the franchise disclosure document to the
prospective franchisee that complies with applicable law.

C ATHER INE M AR C INIAK P HOTOG R AP HY - C ATHER INEM AR C INIA K.C OM


HOW A

RAW-
FISH
SALAD GOT SO

HOT
POKE RESTAURANTS —virtually unheard of five years ago—are suddenly
all over the place. But as many franchisors have learned before, going
from concept to phenomenon almost overnight holds both promise and peril.
by BOYD FARROW

6 6 S u m m e r 2 0 1 8 S TA R T U P S
ILLUSTRATION Burn & Broad
WHEN POKÉWORKS opened in midtown
Manhattan in December 2015, its
A poke bowl from
cofounder Kevin Hsu wondered if he had Pokéworks.
made a huge mistake. “The irst evening,
no one stepped foot inside, apart from two
drunk college kids asking if we sold shark,”
remembers the 36-year-old entrepreneur.
The answer was no. His fast-casual eatery
served the traditional Hawaiian bowl of
marinated raw ish. “I thought maybe we
were trying to introduce a food that the
masses were just not ready for. No one had
a clue what poke was or how to say it.”
(“Poke” rhymes with “OK,” for the record.)
But business picked up once nearby
oice workers learned they could get a
large bowl of lavishly seasoned ahi tuna for
$13.50—less than the price of two sushi
rolls in other restaurants in the neighbor-
hood. Introducing an Instagram-worthy,
seaweed-wrapped poke burrito also
helped. “One freezing day in January, I
arrived to see a line outside that stretched
past a neighboring Chick-il-A,” Hsu recalls.
“I thought, Wow, if this many New Yorkers
prefer raw ish in the middle of winter, this
could work anywhere.”
A little more than two years in, there are
19 Pokéworks locations in key North
American cities such as Seattle, Chicago,
and Vancouver, British Columbia, seven of
which are franchises, and the busiest
locations average 700 to 800 servings a day.
In January, the company embarked on
an expansion program to open another
100 locations, primarily franchised, across
“WE’VE BEEN WATCHING IT GET
the U.S. “This isn’t some trendy, bicoastal
thing,” Hsu says. “People everywhere are
CRAZY IN L.A.,” SAYS AN
eager for diverse foods, and they want
healthier fast and fast-casual dining.”
EARLY ENTRANT TO THE MARKET.
Pokéworks is far from alone. In the past “MANY CHINESE OR KOREAN PLACES
few years, poke has become ubiquitous in
America. In 2016, 585 American-Hawaiian ARE TURNING INTO POKE
restaurants dotted the U.S.; 43 of those had
“poke” in their name, according to the RESTAURANTS OVERNIGHT.”
food industry market research irm
Datassential. In 2017 there were 1,093;
422 had “poke” in their name. Mentions of a bowl. (In 2016, the Wall Street Journal would have been more diicult with any
poke on U.S. restaurant menus have declared that “bowls are the new plates.”) other type of restaurant.”
P H O T O G R A P H C O U R T E SY O F P O K É W O R KS

increased 102 percent from four years ago. There’s the priming of Americans’ palates: But no matter the reason for the dish’s
Signiicantly, more than 35 million Much of the work of familiarizing diners popularity, poke restaurant owners are
Americans have tried the stuf. with raw ish had already been done by the about to learn something that many
If this kind of growth continues, it would U.S.’s 4,000 or so sushi restaurants. Then cupcake, fro-yo, juice bar, or salad shop
seem poke is poised to join cupcakes, there’s the simplicity of what’s required to entrants learned the hard way: Trying to
frozen yogurt, cold-pressed juice, and prepare the dish; all anyone needs to open turn a proit from the latest food trend is
customizable salads as seemingly a location is a refrigerator, a rice cooker, not for the faint of heart. And if you’re
out-of-nowhere exploding food trends. and a bit of elbow room. (Not having to going to jump in, you’d better understand
And of course, theories abound on what ventilate a commercial space illed with exactly what’s in the water.
makes poke the new hot food. There’s industrial ovens can shave a few hundred “When something is hyped in the media,
Americans’ increasing interest in healthier thousand dollars of the cost.) “We started you often see incredibly high growth for a
lunch options, of course. There’s the in one location and opened almost 20 while before attention shifts to the next
narrative that millennials love anything in within our irst two years,” Hsu says. “That thing,” says Aaron Allen, a third-generation

6 8 S u m m e r 2 0 1 8 S TA R T U P S
It’s not just a
membership.
It’s a partnership.

For over 57 years, the International Franchise Association (IFA) has worked to
promote, protect and strengthen franchising worldwide. With our legislative
and advocacy arm ighting for you on key issues, top-notch educational
opportunities, and access to a network of business leaders through events and
the IFA community, you’ll receive tangible support and information to grow
your business.

Because of partners like you, IFA is the world’s oldest and largest trade
association representing the franchising community. Together, we can continue
to move franchising forward.

JOIN IFA TODAY


franchise.org/join-ifa
restaurateur and founder of industry who want a relaxed, casual evening meal.”
consultancy Aaron Allen & Associates. Almost half of LemonShark’s business is
“How fast something takes of can some- done after 5 p.m., and it caters to the
times indicate how quickly it might fall.” evening crowd by ofering beer and sake.
Miller is convinced that poke can become
IN HAWAII, poke is a classic and ubiqui- an enduring fast-casual staple by appeal-
tous street food—tubs of chopped ish, ing to both health-conscious, middle-aged
tossed with salt, seaweed, and kukui nuts. consumers who see it as bargain sashimi
The dish was popularized more broadly in and the younger people who want endless
the early ’90s by Hawaiian chef Sam Choy, mash-ups.
who literally wrote the book on poke “The economics of running these
(Poke: Hawaii’s Food) and created an restaurants are very good. You only need
annual poke festival and recipe contest. two or three employees, there’s no real
While the basic recipe is simple, poke is cooking required, and the price point—
almost endlessly versatile: You can around $12 a head—is incredible,” he
customize the ish, the toppings, and the says. “Now it’s the Wild West, but within
base at the bottom of the bowl. 10 years, just like with most restaurant
Before this decade began, if you wanted concepts, there will probably be a couple
to buy poke in the U.S., you had to venture of regional poke players and two national
Offerings from
to the continental haunts of Hawaiian Aloha Poke Co. brands. We will deinitely be one of those
natives—places such as Takahashi Market, national brands.”
originally a Japanese general store, in San But as the industry inevitably shakes
Mateo, Calif. This changed in 2010, when Swinghamer as a strategic adviser to turn out, the issues poke restaurants face run
Texas-born Jason McVearry followed his its concept into a nationwide chain. deeper than competition.
wife, Trish Fortuna, to Los Angeles after Additionally, a handful of regional poke
living in Hawaii. They’d discovered poke restaurants are embarking on expansion KERRY CHAO opened a restaurant called
only six months earlier in Hawaii before this year, raising the competitive bar. Poké Papa in Washington, D.C., in April
they decided to make and sell poke from a As with any hot new franchising or food 2017. The place has been popular—“partly
walk-up counter in Venice Beach. They trend, competitors are already staking their because we were irst in,” he says—and
named the venture Poke-Poke and, territories and touting their diferentiators— now Chao is considering franchising his
inevitably, made a sign from a surboard. even if those diferentiators aren’t exactly brand. “I feel like we should be rolling out
“We had great fun making big batches of game-changing. For example: Tobi Miller, to New York and some other cities while
poke, but no one knew what it was at irst,” the cofounder of Beverly Hills–based they are underserved,” he says, “but I’m
McVearry says. “We were having to throw LemonShark Poké, notes that his company concerned with maintaining quality.”
it away at the end of the day.” is the “only poke restaurant with cushions He’s right to worry. Stocks of most tuna
Nevertheless, through word of mouth— on the seats.” varieties are declining dramatically
and just as McVearry anticipated—poke Aside from those comfy seats, though, worldwide, and prices are going up. Even
proved the perfect food for faddish, LemonShark represents exactly the kind of in Hawaii, ahi is now regularly supple-
health-obsessed Southern Californians. entrant that buzzy food concepts attract— mented with alternative local ishes.
Soon, a dozen copycat poke shacks opened well-inanced people with their ear to the Already, some in the industry are calling
around them, and even Poke-Poke’s ground. LemonShark was launched by this “the poke efect.” So this is the poke
landlord evicted it so he could open his Miller, a founding member and lead entrepreneur’s long-term challenge: What
own poke restaurant in early 2017. By that guitarist in the band the Walllowers, and to do about an increasingly limited supply
time, the couple had already moved to the former race-car driver Richard of their core ingredient?
Austin, Tex., where they’d open two more Gottlieb. Both men are now successful real Perhaps unsurprisingly, many owners
restaurants. “We’ve been watching it get estate developers who have put up more talk about sustainability, and their menus
crazy in L.A.,” McVearry says. “Many than 25 strip malls in Southern California. are manifestos for “marine conservation,”
Chinese or Korean places are turning into Their poke chain has six locations—ive in seasoned with phrases like “responsibly
P H O T O G R A P H C O U R T E SY O F A LO H A P O K E C O.

poke restaurants overnight. Bigger, slicker California and one in Orlando, Fla.—and 23 sourced” and “socially responsible.”
operators are getting in and planning more set to open over the next 12 months. LemonShark’s tuna is line-caught in the
bigger chains.” The company says it has sold 180 units so Paciic, while its salmon is certiied to be
Indeed they are. Chicago’s 13-outlet far, and it’s aiming to have 500 locations in traced to a boat or a farm. Pokéworks’ Hsu
chain Aloha Poke Co.—including outlets in key U.S. cities within the next ive years. says sourcing sustainable ish is one of the
Denver, Minneapolis, and Costa Mesa, They’re also thinking about diferentia- tenets of the company’s business plan. In
Calif.—is planning to open eight restaurants tors that go beyond seating. “We’re evaluating vendors, he says, the company
in Florida, Washington, D.C., and Wiscon- dealing with the problem of the low looks at everything from aquaculture
sin courtesy of a “strong seven-igure barrier to entry in this market by sourcing management to the packaging used for ish
investment” by Chicago-based Levy Family the best food, securing the top locations, feed. But in the long term, poke restau-
Partners. And Sweetin Poke, a slick chain and developing the most comfortable rants will also need to ensure that vendors
that has opened eight locations in environments to spend time in,” Miller are behaving responsibly; it is their
Southern California since 2015, recently says. “We’re not just targeting the lunch businesses, after all, that could be
tapped former Shake Shack CEO David takeout crowd; we’re after the clientele jeopardized by overishing.

7 0 S u m m e r 2 0 1 8 S TA R T U P S
MAKE TIME
WORK FOR YOU
Formula for calculating the cost
of your time (and put a meter
on those consuming it)

Tools to drive a stake through


the hearts of time vampires

Time management techniques


you probably know but don’t
know how to employ

5 time-defense tactics to
stop interruptions and
multiply productivity

8 No B.S. time truths to live by


and find success with

Learn how time can make you successful


beyond your wildest dreams.

Available at ™

entm.ag/timemanagement
Pokéworks is trying to delect criticism “It will be interesting to see how much
by sourcing wild-caught ish from the East Poke-Poke, in Venice,
people will pay for top-quality poke,”
Coast. It has also brought on Hawaiian- Calif., helped launch McVearry says. “I know one recently
born chef Sheldon Simeon to get creative the poke craze. opened business that has quality, amazing
with the menu. Simeon, a Top Chef darling, ish, and it was lambasted in the press for
recently added a white ish, bora—also its high prices.”
known as the less exotic-sounding
mullet—to Pokéworks’ menu. The ish can IF THERE IS any inevitability in trends, it is
live in fresh and salt water, and keeps this: At some point, the market will mature.
shorelines clean by munching on algae. Although LemonShark’s Miller says it
“We’re deinitely trying to use under- another way: “There will be a lot of losers.”
utilized ish,” Hsu says, adding that the Miller knows the irst ones to go. They’ll be
company further beneits from this by early, competitive players that serve
keeping menus fresh and generating “low-quality ish in an uninviting, overlit
positive PR. (Fast-casual salad restaurant space”—much like the frozen-yogurt shops

P H O T O G R A P H C O U R T E SY O F P O K E - P O K E
and media favorite Sweetgreen deployed a of the 2000s, hastily launched businesses
similar tactic by choosing to feature that couldn’t be supported by low-check
steelhead, an alternative to salmon.) purchases. And he should know; he was
And yet, while poke restaurants may ill one of those fro-yo franchisees. “I bought a
out their menus with ish such as red a very good ish supplier. This is a high- Yogurtland franchise in California—a total
snapper, blue marlin, and octopus, the tuna cost, delicate product that involves very disaster,” he says. “It’s a modern candy
bowl is ultimately the star attraction—and little waste. Take our bigeye tuna: It’s store. The yogurt has a ton of sugar, and
almost always the most expensive item. lash-frozen in the hull of the boat and people pile a bunch of candy on top. I still
“When poke is made properly, it is freighted overnight from Hawaii.” He says if can’t get out of it.”
actually an extremely diicult market to he had more outlets, he may not be able to Those giddy fro-yo days should serve as
succeed in,” says Poke-Poke’s McVearry. ensure the ish is consistently high-quality a warning both for franchisees not to be
“You have to have a good relationship with or be able to ofer seasonal specials. gullible and for franchisors not to be

CREATE
LEGENDARY
ADS
Capture customers,
promote your brand,
and boost sales.

BUY THE BOOK


Visit entm.ag/advertisingsolution
overzealous. Owning the franchise, company experienced a well-documented mind, Pokéworks’ Kevin Hsu says the
nevertheless, taught Miller the beauty of lameout, eventually iling for bankruptcy company is hedging its growth by balanc-
the franchise business—how a concept can in 2014. Today it has 2,100 locations. ing more expensive, bigger spaces for
grow exponentially in a very short period So how well can poke really scale? fast-casual dining with smaller takeout
of time. And it taught him how to be a Howard Penney, a restaurant analyst at joints. “We want a mixture of sizes. Poke is
better franchisor. Hedgeye Risk Management, is circumspect now mainstream, and we’re competing for
LemonShark, for instance, sells about it. He thinks there could be ive good the same prime sites as other restaurants.”
franchise territories with an average of years ahead for well-run irst-to-market Whether poke ends up taking of in
three to ive sites, not single locations. The restaurants, especially in L.A. and San franchises or as part of a broader menu
company locked down sites near Chipotle Francisco, cities that share some lifestyle ofering at established seafood or Japanese
outlets, which have a similar price point, similarities with Hawaii. But still, he says, restaurants, it’s too early to say. But no
and close to big gyms and malls with restaurateurs should be realistic. “You’re matter what happens, this much is
high-end grocery stores. not going to have a Starbucks-like trend, guaranteed: Poke won’t have this spotlight
However, LemonShark is taking a break because everybody drank cofee before forever. “There is $4.6 trillion sitting there
from adding more franchises until it Starbucks came along,” Penney says. in private equity funds, and everyone is
perfects the logistics behind serving its “Mexican food was reasonably popular looking for the next food fad to invest in,”
current units. The move is based partly on before Chipotle made it more mainstream. Allen says. “You can ind a small market
the past experience of Randy Blue, the Poke is completely new for most Ameri- for every kind of food, but they can’t all
company’s former VP of franchise cans. In time, it could be viewed as work on the same scale.”
development. Blue had previously worked another iteration of sushi.” Miller, for his part, is sanguine. He
in franchise development for Quiznos. This doesn’t mean that poke restaurants points out that not so long ago Americans
“The company had a hot concept, but it can’t make good money; analysts say the hadn’t heard of sushi, and now there are
was impatient,” he says. It grew from 100 good ones can. But even if the number of thousands of sushi restaurants in the U.S.
units to 4,000 in three years. At its peak, it Hawaiian-American restaurants grows doing $3 billion in revenue. “Is this the
had more than 5,000 locations, but tenfold, that still makes for only 8,000 cupcake craze?” he says. “No. It’s not a
franchisees iled a class-action lawsuit locations, compared with the almost novelty. It’s a delicious, healthy cuisine
alleging market overcrowding, and the 80,000 pizza joints in the U.S. With that in that Hawaiians have enjoyed for years.”

Discover the
independence of
running your own
business while receiving
ongoing support.

Experience the difference Raeanne R.


LaVidaMassageFranchise.com | 248.360.6157 Co-Owner of LaVida Massage of Seattle
FRANCHISE SUCCESS

Before their family moved a marketing degree in addition


to the United States from to running the restaurant.
Mexico in 2005, their parents During Wing Zone training, I
owned a laundromat, a close was literally in the hotel room
cousin owned a hair salon, until, like, 3 in the morning
and other members of the inishing my homework, and I
family ran everything from would have to wake up at 7 to
restaurants to marketing go to training.
irms. The practicality of
providing a service that Have you already
people would always need was encountered unexpected
drilled into the Perez sisters’ challenges?
heads as a smart, safe road to ANDREA: Owning a restaurant
success. Which is why in May is like having little kids—if the
2017, they took ownership of parents aren’t watching, they
what they hope will be the get into trouble. Recently our
irst of multiple Wing Zone heater, the AC, and one of our
units. It wasn’t easy, but a fryers all went out. That was a
strong family and robust lot of unexpected cost, and
corporate support system we’re working to make that
helped them through. money back. When you’re
starting out as a restaurant
You got into this industry owner, you’ve already made a
without much experience. big investment and you don’t
How did you convince anticipate having to invest that
Wing Zone to work with you much more. But we’ve quickly
as franchisees? realized restaurants are a
ANDREA: We made it very penny business. If a lime
clear that we’re doing this as a goes missing, that translates
family. It’s not going to be just to dollars.
me and Jessica. One of our
cooks is my aunt; another is How has franchising

WING ZONE
my cousin. My husband works provided you with a support
here as well. The company system that extends
realized we were coming in beyond your family?
with a built-in support system. ANDREA: All our food comes
Thankfully, they approved us. from Houston, and when

WUNDERKINDS
Two weeks after that, we were Hurricane Harvey hit, our
of to Atlanta for training. supplier was looded. Only
one truck could get up here,
How has life changed and since we have the only
since you became full-service location in San
As young Wing Zone franchisees, sisters business owners? Antonio and everything would
JESSICA: I was always going it here, they dropped of all
Jessica and Andrea Perez are getting a crash
out with my friends, going out the food for the entire region,
course in the restaurant business, and fearlessly to eat, going out to nightclubs. and the other franchisees in
climbing the steep learning curve. But now I only go out one day the area had to ind a way to
a week. You have to give up get it. It was a whole day of
BY LYDIA BELANGER
your personal life. And we driving back and forth for
both have other jobs, too. If everyone, making sure other
Some may be surprised to learn that I’m not here in the restaurant, franchisees had what they
Jessica and Andrea Perez, at just 25 and Andrea’s here. If Andrea’s not needed. There have been
here, I’m here. But working other occasions when we’ve
22 years old, respectively, are the owners
for yourself is diferent—it’s borrowed ingredients from
of a Wing Zone franchise in San Antonio. something I always wanted, each other when we’ve run
But to the young women, it’s unremarkable: even if it’s hard. out of something. We’re just a
Entrepreneurship is in their blood. ANDREA: I’m working toward big, happy family.

74 S u m m e r 2 0 1 8 S TA R T U P S Photograph Bobby Fisher


ADVERTISEMENT

THE 4-PHASE SALES FUNNEL YOU NEED TO

Leverage Your Business


BY ROBERT W. BLY

AT T E N T ION DE S IRE
D E
Marketing funnels are the var- Your funnel must start with Int
nterested
nt
Interested d leads
leads who sseseee how
w
ious paths potential customers awareness. You need to get the your
ourur pr
product will help them mayy
travel on to reach their desti- prospect’s attention, let them want
w a t to
to try
tr it out
o for them-
nation: buying from you. Each know you exist, and show them selves,
elves, learn
arn even
e en more
mor ab about
b ut
potential customer enters the a product they might like. A it,, or com
compare pricing
are the pr icingg and
icin
funnel from a diferent point few ways to garner attention features to similar
imil products
ducts in
of product awareness and after setting up your website the marketplace. Research your
then continues along the path, or blog are Google AdWords, competitors and ofer some-
intersecting with other paths search engine optimization, and thing unique to your prospects
of potential customers. social media advertising. Once that competitors don’t have.
Along the way through the potential customers click on any Continue to engage with these
funnel, you need to engage of your call-to-action (CTA) but- leads to keep them focused
these potential customers and tons or links, then the process and excited about your product
drive them to the next step so of gaining and retaining their so they take the inal step. You
they move down into the neck attention begins. could even host a webinar to
of the funnel toward conver- let viewers see your product in
sion. Some will get to the goal IN T E RE S T action.
sooner than others. But con- Once you have aware poten-
tinuing to engage customers in tial customers, use every piece A C T ION
some way is essential to keep- of your platform to give them Create an ofer that they simply
ing them on the path through more information and prove cannot refuse so you earn their
the funnel—no matter how your product’s value. Show the business. For instance, you can
slow the journey. beneits of your product in a create a sense of urgency in your
free white paper, demonstrate email ofers by giving a short
A classic funnel is the AIDA
product features or applications time span to buy or by telling
model: Attention, Interest,
in a video, tell a customer suc- customers there are only a few
Desire, and Action. Let’s take
cess story in a blog post, or share books or software packages left.
a closer look at each and dive
exciting news about product You can also add perks like a
into what they mean for you.
improvements with your email 60-day money-back guarantee,
subscribers. Any of these could an appointment with your inter-
lead your potential customers to ested customer for a product
click on a CTA to ind out more demo, if applicable, or a free
or even buy from you. phone consultation. 

Written to help marketers—from the Fortune 1000 to small


business owners and solopreneurs—turn their websites from
cost centers into profit centers, Robert W. Bly teaches you the
proven models and processes for generating a steady stream
of traffic, conversions, leads, opt-ins, and sales in The Digital
Marketing Handbook.

Visit entm.ag/digitalmarketing
FRANCHISE SUCCESS

KURT: We ofer a prepaid


program for customers. At the
end of a season, if you sign up
for next season, you get a
discount. We always did this via
email, and a franchisee down in
Arkansas told us, “We send
everything in snail mail so they
can’t delete it. They have to at
least open the envelope.” So
now we combine our thank-you
letter for the year and our
prepay option for the next.

What are some unexpected


hurdles in this business?
KURT: We’re seasonal, and that
presents some staing
challenges, because toward the
end of the season, people start
thinking, Oh, I’m going to be out
of a job; I’d better get out of here.
We used to have an issue
keeping employees at the end
of the season. So we created a
virtual bank system where for

A BUZZING BUSINESS
Mosquito Joe franchisees Kurt and Melissa Godwin turned a longtime
every month a seasonal
employee works for us, a small
bonus goes into their virtual
bank. At the end of the season,
provided they’ve stayed with
annoyance into successful second careers in pest control. BY LYDIA BELANGER us, they get the money. It’s a
good incentive and a good way
for us to thank them—and those
Kurt and Melissa Godwin didn’t have much in common—at least, not employees who stuck around
professionally. Kurt was an airline pilot, and Melissa had spent decades are usually the irst ones ofered
jobs in the spring.
working for the state of Pennsylvania. But the married couple wanted
to take control of their careers and spend more time with family. By How else do you energize
running their own business, they figured, they’d be able to accomplish both. So your team?
they decided to focus on a subject they each had experience with: outdoor pests. KURT: We solicit input from
our top managers as well as the
guy who’s at the bottom of the
Melissa is a self-described What’s the key to your families do. We constantly talk totem pole as a new-hire
“mosquito magnet”—she success? about Mosquito Joe and how technician. If they bring us a
avoids spending time outside KURT: We’re all-in. Melissa to grow. MoJo is always in the great idea, we will listen in the
on summer nights—and Kurt’s retired from her previous job back of our heads. When we same way our franchisor does.
oldest son twice battled Lyme and was all-in from day one. I break out a nice bottle of We’re in the process of looking
disease from tick bites. In 2013, still lew for a couple of years, wine, the ideas start to low. for a summer intern. That
the Godwins signed on as just to pay the bills, but the person is going to interview
franchisees of Mosquito Joe, a minute I could be full-time at Do you also share ideas with with all the top managers, and
provider of outdoor mosquito, Mosquito Joe, I was. other franchisees? then we’ll come to a consensus
tick, and lea treatment MELISSA: We’ll often talk with and decide whom to hire.
services. Today they own six Is it tough being “all-in” when them, bounce ideas around, We’re empowering our team to
territories throughout the you’re business partners as and just gather as much help us pick people they’re
Baltimore and Annapolis areas. well as spouses? information as we can to ind going to get along with, not just
In 2017 they were the compa- MELISSA: We don’t just go inventive ways to continue to people we think might do a
ny’s Franchisee of the Year. home and do what normal grow our business. good job.

7 6 S u m m e r 2 0 1 8 S TA R T U P S Photograph David Yellen


ADVERTISEMENT

Free Information
From Advertisers
Visit entrepreneur.com/freeinfo now to receive more information from
the franchise and business opportunities advertisers in this month’s
Entrepreneur®. Simply take a minute to quickly enter your selections online
to learn more about any of these opportunities!

1. Bubbakoos 14. Kumon North America


2. CMIT Solutions 15. LaVida Massage
3. Camp Bow Wow 16. Lice Clinics of America
4. Code Ninjas 17. Luv 2 Play
5. Cookie Cutters Haircuts for Kids 18. Natural Lawn
6. Cruise Planners 19. Nekter Juice Bar
7. Dippin’ Dots 20. Pet Supplies Plus
8. Doc Popcorn 21. Pet Wants
9. Dream Vacations 22. Pillar To Post
10. Dunkin Donuts 23. PuroClean
11. FastSigns International 24. Totally Nutz
12. FunTopia 25. Town Money Saver
13. HomeVestors of America 26. UBreakiFix
HOW TO
SUCCEED
IN 2018
Tim Ferriss,
Gary Vaynerchuk,
and 15 Others
Reveal Your
Next Big
Opportunity
Go to entrepreneur.com/freeinfo now to make your selection and get more
information fast! Or, you can also fill out this form, circle your selections
Venus
Williams above, and then fax or mail back your request.
Redefines
Hustle December 2017
Entrepreneur.com

Please check appropriate boxes:


Freakonomics Reinvents Itself
Baked By Melissa Masters Holidays
Warby Parker Pleases Everyone

1. Are you considering starting/buying an additional business? 1/ Yes 2/ No


2. If “yes,” when are you planning to start/buy an additional business?
3/ In the next 6 months 4/ 7 to 12 months 5/ 13 to 24 months
6/ More than 24 months 7/ Not sure
3. How much do you plan to invest in the purchase of your business?
8/ Less than $50,000 9/ $50,000-$99,999 10/ $100,000-$499,999 11/ $500,000+

Please print clearly:


Name_____________________________________________ Title______________________________________________
Company____________________________________________________________________________________________
Address_________________________________ City______________________________ State______ ZIP____________
Phone (_____)__________________________________________ Fax (_____)____________________________________
e-mail ______________________________________________________________________________________________

Fax to (888) 847-6035 or mail to Entrepreneur®, P.O. Box 413050, Naples, FL 34101-3050

Expires 10/31/2018
LAUNCH, BUILD, AND GROW
THE BUSINESS OF YOUR DREAMS
Entrepreneur’s Startup Series has everything you need to know about
starting and running more than 55 of today’s hoest businesses. From
available opportunities to the latest trends and equipment, our experts
present the details on what it takes to take your passion to the next level.
Each book includes research, resource lists, and priceless realities from
practicing entrepreneurs.
If you know you want to start a business—start here.

CREATIVITY CUSTOMER SERVICE DETAILS & LOGISTICS

Bring your ideas to life Use your people skills to Put your Type-A personality
with businesses that provide superstar service to work for you through
thrive on your inspiration for a pet business, as a businesses like imports/
and imagination. travel service provider, exports, wholesale
through your own restaurant distribution, freight
Arts and Crafts Business or in a retail store. brokerage and medical
Event Planning Business
claims services.
Automobile Detailing Business
Fashion Accessories Business eBusiness
Bar and Club
Freelance Writing Business Freight Brokerage Business
Bed and Breakfast
Photography Business Green Business
Clothing Store and More
Self-Publishing Business Import/Export Business
Hair Salon and Day Spa
Wedding Consultant Business Medical Claims Billing Service
Food Truck Business
Online Coupon/Daily Deal Business Vending Business
Microbrewery, Distillery, or Cidery
Specialty Food Business Wholesale Distribution Business
Pet Business and More
Staffing Business
Restaurant and More
Transportation Service
Retail Business and More
Travel Business and More
Stop dreaming
and start doing

COMMUNICATION HANDS ON TEACHING HELPING OTHERS

Put pen and paper to work Bring in the bucks while Share your knowledge Lend a hand and make
in a grant writing business, experiencing the satisfaction and expertise through a difference in people’s
use your networking skills in of tackling hands-on projects child-care services, lives—whether through
a public relations business, through cleaning services, information marketing personal training, senior
or have your graphic design landscaping, construction or tutoring services. care or coaching ventures.
speak a thousand words. and more.
Child-Care Service Coaching Business
Blogging Business Cleaning Service College Planning Consultant Personal Concierge Service
Consulting Business Coin-Operated Laundry eLearning or Training Business Personal Training
Grant Writing Business Construction and Contracting Information Marketing Business Senior Services Business
Graphic Design Business Lawn Care Or Landscaping Online Education Business
Nonprofit Organization
Public Relations Business Tutoring and Test Prep Business

Find the Business That’s Right for You


For more business ideas visit entm.ag/startyourown
EntBookstore @EntBooks
BACK PAGE

But this year, I didn’t myself: What do I get for this


watch a single Heat game. I hour spent? What can I show
probably couldn’t name half for it later? Time with family
the players on the team. And and friends has an obviously
I missed the entire playofs. valuable outcome: My
Why? Because I was forced relationships are stronger.
to make a decision. My life But other times, my options
had become too busy. might be watching a game,
Something had to go. That scrolling through Twitter, or
thing was basketball. So writing the script for the next
when people ask me how I episode of my podcast.
do so much, that’s my So I started to think about
answer. I quit basketball. what I’d rather say I did in a
I’ve taken on a lot recently. week. Watched the game?
I run this magazine, host two Read the tweets? Or worked
podcasts, give keynote on a new podcast for people
speeches, have a novel to listen to?
coming out this fall (quick Now I have my answer.
plug: it’s called Mr. Nice Guy), I know this can sound
and have a toddler. And hey, joyless. It isn’t. Instead, it’s
I know the least interesting what keeps me motivated
thing in the world is hearing during times when I’m tired.
someone talk about how I’m excited for people to
busy they are. But I am, and listen to that next podcast, or
so are you. So is everyone. to read that next article.
Our calendars are horror Tomorrow’s accomplish-
shows. And we all need to ments don’t just happen—
ind ways to cope. they happen today. Hell, I’m
At irst, I really had no idea doing it right now: I’m
how to manage the problem. writing this from a restaurant
This is a little embarrassing in Chicago’s Midway airport,
to admit, but I started and although I’d like to order
imagining myself as an old a second beer, I know that’ll
boat with too much cargo— make it harder to keep

WE HAVE
wooden planks creaking writing this column. And I’m
under the weight. But then more excited for you to read
I started to think about the these words than I am for
entrepreneurs I’ve met, who another beer.
are often as methodical about Most important, this

TO LET GO
themselves as they are about philosophy isn’t limiting. It’s
their companies. Sonny built for lexibility. Some-
Caberwal, the head of digital times, I will have that second

P H O T O G R A P H BY S H U T T E R S T O C K / KO N O N T S E V A R T E M
business development at (and third) beer—if I’m out
Newell Brands, once showed with friends, if there are
It’s time to admit we can’t do everything. me a spreadsheet of his week, memories to be made. And at
in which he plans out how to some point, it will also allow
And that’s for the better.
spend every hour. He thinks me to get back to my Miami
BY JASON FEIFER, EDITOR IN CHIEF, ENTREPRENEUR of time like a budget: It Heat. My toddler son is a
should be spent wisely, not sporty kid. He might grow up
haphazardly. and love basketball. Then we
The NBA season just ended, which in years That got me thinking about can watch together, and
past would have left me drained and my own time. I don’t want to those games I dismiss today
disoriented. I would have just come off a work nonstop—that only ends will become worthwhile
in burnout—but I want to tomorrow. There may never
season-long fanaticism—tuning in for my
make sure I’m using my time be time for everything, but
beloved Miami Heat’s games, or watching on my phone as wisely as possible. So I there is always time for
if I was out. I’d even follow games on Twitter. This goes started measuring time in plenty. It’s just a question of
back to childhood. I was obsessed. terms of outcome. I’d ask priorities.

8 0 S u m m e r 2 0 1 8 S TA R T U P S
FRANCHISES AVAILABLE
• FASTEST GROWING 4th year in a row
• #1 IN CATEGORY 5th year in a row
• FRANCHISE 500 17th year in a row

• TOP FOR VETERANS 5th year in a row

A franchise opportunity
for home and life
Get more of what you want as a Pillar to Post franchise owner.

Pillar To Post offers the opportunity for you to create a business, a career,
and the life you want for yourself and your family. Our franchise owners enjoy
a great work-life balance and the power of the most recognized brand in the
home inspection industry. Joining a business where helping yourself and other
people realize their dreams is one of the best decisions you’ll ever make.

Learn more about why the Pillar To Post franchise opportunity


might be right for you. Contact us today!

franchise@pillartopost.com
877-963-3129

pillartopostfranchise.com
Each office independently owned and operated.

You might also like