If you could go back in time, what business advice would you tell your younger self? Chad Olson, COO of NTY Franchise Company, shares what he has learned and more in this excerpt from USA Weekly.
Starting a business is a big achievement for many entrepreneurs, but maintaining one is the larger challenge. There are many standard challenges that face every business whether they are large or small. It is not easy running a company, especially in a fast-paced, ever-changing business world. Technology advances, new hiring strategies, and now, political changes coming with the new administration, all add to the existing business challenges that entrepreneurs, business owners, and executives have to deal with.
Maximizing profits, minimizing expenses and finding talented staff to keep things moving seem to be top challenges for both SMBs and large corporations. We have been interviewing companies from around the world to discover what challenges they are facing in their businesses. We also asked each company to share business advice they would give to a younger version of themselves.
NTY Franchise Company Founded in 2006 by Ron Olson, NTY Franchise Company is the gold standard in resale franchising companies. NTY franchises five brands, all with a different focus: Clothes Mentor, Children’s Orchard, Device Pitstop, New Uses, and NTY Clothing Exchange. The brands are all resale-based and cover women’s designer fashions, children’s apparel and accessories, furniture and household goods, electronic sales and repair, and clothing for teens and young adults. All are great business opportunities with cutting-edge technology, unmatched support, and lucrative resale franchises. NTY Franchise Company has helped individuals to establish resale stores throughout the United States in many communities, and it has territories available to develop nationwide.
What is your role? What do you enjoy most about your role?
I am the COO of NTY Franchise Company. What I enjoy most about my role is working through the different challenges and opportunities that arise every day. There is constant problem solving and coaching opportunities and I am fortunate enough to hopefully make a difference. Our franchisees have invested a lot of money to open their business, achieve their goals of being their own boss and generate success. The thrill for me is having the opportunity to help them realize these goals.
Click here to read the full article on usaweekly.com.
Check out this article from altoonamirror.com about why franchising is a smart business move. For one, it allows you to build your own business with the support of a proven system. Learn more:
Mirror photo by J.D. Cavrich.
Franchises gaining in popularity
By Walt Frank
After his family business was sold, Mike Folcarelli said he was “looking for something to do.”
So in 2014, Folcarelli opened a HoneyBaked Ham Co. and Cafe franchise in the Pleasant Valley Shopping Center.
“I thought at my age (49 at the time), this was the best way to go, instead of starting something from scratch. They have proven marketing and brand recognition,” Folcarelli said. “I looked at others (franchises), not just in the food business. I just decided on this — it just fit my lifestyle.”
Mike Burgmeier worked at the Greenwood Meadows while in high school and college.
“I have an entrepreneurial flair. I knew I always wanted my own franchise,” Burgmeier said.
Burgmeier is the franchise owner of the Chick-fil-A restaurant set to open in March at 106 Sierra Drive, the site of the former Montezuma Mexican Restaurant.
“I started to pursue this in 2013. I looked at several other types of franchises, but I wanted to be in the food retail industry. Chick-fil-A is dedicated to customer service. Their core values and my core values lined up,” Burgmeier said. “I am pleased I have the ability to bring in a franchise like Chick-fil-A, which does tremendous things for the community. It will be a nice place for people to sit down and enjoy a good product. I am excited about that.”
Between 12,000 and 15,000 new franchise businesses open every year in the United States, or between 30 and 40 per day.
There are an estimated 733,000 franchise business establishments in the U.S., meaning about 3 percent of all businesses are franchises, and franchise businesses employ about 7.6 million people directly, said John R. Reynolds, president of the Franchise Education and Research Foundation.
Reynolds said the franchising industry has averaged about 2 percent to 3 percent growth per year in the past few years.
Franchises are very popular these days.
“Franchises are popular because they provide business owners with a systematic approach to owning and operating a business that provides branding, marketing, training and support. It combines the resources of the franchisor and franchisees in the network to get a multiplier effect,” Reynolds said. “Many people buy into a franchise because they want to go into business for themselves, but not by themselves. Being part of a franchise system gives them advantages of not going it alone.”
Judy and Anthony Branda have owned the Greenwood Meadows franchise for about nine years.
“My husband had talked to the people who owned it and told them if they ever wanted to sell it, to let us know. We thought it would be a fun business to get into; when people come in for ice cream, they are happy,” Judy Branda said.
Melvin Milne has owned the Budget Blinds franchise in Altoona for nine years, and the one in State College for five years.
“I was in the construction business. I normally worked for someone else and this was a way to get started; a franchise helps you jump-start a business,” Milne said. “I’ve been in this nine years. The economy was not the greatest when I started. It was difficult at first, but the last couple of years it has been nothing but referrals and repeat business.”
David Rosen is the owner of the Griswold Home Care franchise in Hollidaysburg. He also owns two other Griswold franchises.
“I was a do-it-yourself type of person and I wanted to be more of a franchise person. I liked the idea of partnership. The company was moving in the right direction, and I felt it was a solid company,” Rosen said. “Partnerships bring some expertise and help you achieve success. For me, I really liked the mix and felt it was a good fit.”
Owning a franchise has advantages.
According to the International Franchise Association, owning a franchise allows you to go into business for yourself, but not by yourself. A franchise provides franchisees with a certain level of independence where they can operate their business. A franchise provides an established product or service that might already enjoy widespread brand-name recognition. This gives the franchisee the benefits of a pre-sold customer base that would ordinarily takes years to establish. A franchise can increase the chance of business success because it is associated with proven products and methods. Franchises also offer consumers the attraction of a certain level of quality and consistency because it is mandated by the franchise agreement.
“You have a proven product and the system is in place. You don’t have to re-invent the wheel, just follow the system and try to improve on it in your local market. It comes down to hiring the right people and training them and serving the customers,” Folcarelli said.
But there can be some disadvantages to owning a franchise.
The franchisee is not completely independent. Franchisees are required to operate their businesses according to the procedures and restrictions set forth by the franchisor in the franchisee agreement. These restrictions usually include the products or services which can be offered, pricing and geographic territory, according to the IFA.
“You have to recognize that you don’t have the luxury to mess with branding and changes,” Rosen said.
Owning a franchise can take a lot of work.
“You do put in a lot of long hours. In this small business, you are the HR guy, the purchasing guy, the sales guy. There is a lot more responsibility than at a larger company. You wear all of the hats,” Folcarelli said.
It is important to do your research before purchasing a franchise.
“Do your homework on any franchise. There are good ones, there are bad ones, there are great ones and horror stories out there,” Milne said.
The first step is to develop a business plan.
“There are many franchise businesses to choose from. What are the types of businesses that appeal to you that also meet your personal and financial goals in your business plan? Lastly, get advice from a qualified franchise attorney before accepting any franchise offers or signing any franchise agreements,” Reynolds said.
“Check out the company as a whole, its financial situation, how long they have been in business, what kind of talent do they have. Talk to other franchise owners to see if they are willing to talk to you about the franchise. Talk to new ones and others who have been in it for three to five years to get their perspective on the franchise,” Rosen said. “I looked at four or five organizations; Griswold emerged for me. I liked its vision and mission of serving people.”
Reynolds said it is not difficult to get a franchise.
“There are franchises available for less than $100,000, and others for more than $1 million. It’s important to consider a franchise business that meets your personal and financial goals and plans,” Reynolds said.
Clothes Mentor was recently featured in an article from The News & Observer about lesser-known franchises that offer big opportunities to today’s entrepreneurs. Check out excerpt from the article below and prepare to be inspired. You can also read the full article on newsobserver.com.
Beyond fast food: New franchising ideas draw entrepreneurs
They’re not household names like McDonald’s or The UPS Store, but small franchises beyond the usual restaurant groups and retailers are attracting buyers who want something new or different and see greater challenges and opportunities with lesser-known businesses.
[…] Adam Scott looked at several relatively small companies before deciding on Clothes Mentor, which has nearly 140 shops in about two dozen states that sell women’s used clothing. Scott, who previously owned a franchise that shipped packages, was looking for a team atmosphere that he felt huge franchises with thousands of locations didn’t offer.
“I wanted a certain culture,” says Scott, who lives in Knoxville, Tennessee. “I could tell they really have an interest in the success of their franchisees.”
Scott asked other franchise owners about their experience with Clothes Mentor, something that’s recommended anyone do before buying a franchise. What he heard persuaded him that even though Clothes Mentor isn’t on the tip of consumers’ tongues, it was a good fit for him.
“I have to feel that I’m going to like who I’m in business with,” he says.
Watch this video message from Chad Olson, NTY Franchise Company’s Chief Operations Officer, and be inspired to open your own resale business! Find out what makes NTY’s five resale brands unique as well as get a feel for our company values. Check it out now:
Clothes Mentor was recently named Franchise of the Day by Entrepreneur. Read the brief write-up here, or check it out at entrepreneur.com.
Franchise of the Day: Up Your Style With Some New Duds
When it comes to style at a low cost, Clothes Mentor has got ya covered.
The chain isn’t the first resale franchise founders Lynn and Dennis Blum opened. Previously working on two others, Once Upon a Child and Plato’s Closet, the duo sold them to Grow Biz International (now Winmark Corporation).
Clothes Mentor opened its doors in 2001 offering a place for women to buy and sell shoes, purses, clothing and other delightful duds. It caught the eye of Grow Biz co-founder Ronald Olson, who had left the company in 2000. He began franchising Clothes Mentor in 2007.
Today, the franchise is ranked as No. 260 on Entrepreneur’s Franchise 500 list for 2016.
Learn about franchisee Mark Hoon and how he manages multiple resale stores in Minnesota. Read the Franchise Players article below or click here to see it on entrepreneur.com.
What’s Old Is New Again for These Two Resale Franchisees
Mark Hoon has never been an employee. He was only 16 years old when he started selling vacuum cleaners door-to-door, 18 when he opened his first vacuum cleaner distributorship. His wife, Barb, has been by his side professionally for more than three decades. And, together, the Hoons owned businesses ranging from cleaning appliances to real estate before finding their calling as resale franchisees in 2008. Today, they are pioneers in the resale home furnishings market as owners of one of the nation’s first New Uses franchises.
Name(s): Mark and Barb Hoon
Franchise owned: New Uses, in Maple Grove, MN; and Clothes Mentor locations in Maple Grove, St.Cloud, and Woodbury, MN. Both brands are under the umbrella of NTY Franchise Co., an upscale consignment/resale company.
How long have you owned a franchise?
[Mark responding] I’ve been a franchise owner since 2008. [New Uses dates back to June 2013.]
Why franchising?
Both Barb and I are great copiers, but not great inventors. We bought into the fact that a person can take years to invent and perfect a model. Franchising takes years off the time, expense and risk that comes with opening a new business. Franchising also allows us the lifestyle of being in business for ourselves with a system in place to give us direction and accountability.
Finally, having our daughter and son involved and preparing them to take over one day is very rewarding. Our children are earning the right to take over the business, and that makes us very proud.
What were you doing before you became a franchise owner?
Both Barb and I began our professional lives as independent contractors working as a distributor for Kirby Vacuum.
Why did you choose this particular franchise?
We were already familiar with the parent franchisor, NTY Franchise Company. We had initially purchased three Clothes Mentor stores, another of their resale franchise brands, and were pleased with the model. We decided on a New Uses store because it offered the same proven system, with a different product base. We also wanted a new business for our son to grow into, since he was graduating from college.
How much would you estimate you spent before you were officially open for business?
The total cost was $224,000. The breakdown was: franchise fee, $20,000; buildout, $100,500; inventory, $40,000; deposit and rent: $13,500; labor, $10,500; advertising, $15,000; and miscellaneous, $24,500.
Where did you get most of your advice/do most of your research?
Mentors! My father, Carl — for raising me with ethics and care. Gene Windfeldt, business owner and entrepreneur — for work ethic, discipline, focus and big thinking. My wife — for teaching me structure, honesty and follow-through.
What were the most unexpected challenges of opening your franchise?
Barb and I really didn’t have any unexpected challenges. We went into the business having done the research and understanding what we were getting into; and we had a comprehensive three-year business plan. There were some tweaks we had to work on, but not anything I would call a challenge.
What advice do you have for individuals who want to own their own franchise?
Buying a franchise is not “buying a business”; it is buying an opportunity to own a business. Your actions, attitude and work ethic are what will make it a business. You are not a business until you are able to be paid and make a profit. Until that happens, it is only an expensive hobby.
What’s next for you and your business?
Winters in Florida!. Over the next five years, we will be working with our kids to help them to understand what entrepreneurship is, the lifestyle it creates and how to manage the two. Both Barb and I expect to be active in the business for years to come. Our business is like a child to us. You can’t just kick it out of the house and never see it again. Years of both physical and emotional work will keep us connected in some capacity, even as we transition out of full-time operation.
Michelle Vaudrin is the Senior Director of Operations for Children’s Orchard and Clothes Mentor. Before joining Children’s Orchard in 2016, she worked in leadership roles for Burlington, American Eagle, and Macy’s.
Michelle attended the University of Wisconsin-Stout with a Retail Merchandising and Business Administration degree. She brings an extensive background in training in strategies, merchandising, customer service, and multi-unit store operations to the team.
Jenny Mann
Vice President of Operations | Executive Director of IT
Jenny Mann is the Vice President of Operations for Clothes Mentor and Children’s Orchard. In January of 2020, Jenny also took on the role of Executive Director of IT, overseeing BST, our Point of Sale system, and the e-commerce platforms for both brands. Prior to this, Jenny was the Director of Marketing for NTY Franchise Company since January 2013. Jenny started with the NTY Franchise Company in 2008 with Clothes Mentor and has held many roles, including; Store Manager, New Store Opener, and Regional Operations Manager. Before joining NTY Franchise Company, Jenny worked for Old Navy (Gap, Inc.) and Target in management roles.
Chad Olson
Chief Operations Officer
Chad Olson has been Chief Operations Officer of NTY Franchise Company since January 2007. From May 1994 to December 2006, he held various positions for Winmark Corporation (f/k/a Grow Biz International, Inc.), including Field Operations Manager for the Once Upon a Child concept from 1999 to 2002, and Regional Operations Manager for the Plato’s Closet concept from 2002 to 2006.
Sean Marrs
IT/Tech Administrator
IT/Tech Administrator
Marissa Stacy
Jr. Graphic Designer
Jr. Graphic Designer
Ashlyn Aarness
Social Media Specialist
Social Media Specialist
Ashley Huebner
Director of Marketing
Ashley Huebner oversees Children’s Orchard’s marketing and advertising efforts to drive sales, build brand awareness, and lead the planning on how to market the brand effectively. She leads creative initiatives by driving the brands’ vision in aesthetics, tone, and trends to elevate our brand position as a leader in the resale category.
Ashley joined the Children’s Orchard team in 2015. Ashley has 10+ years of Graphic Design experience. Ashley holds a strong background in design, user experience, and a passion for creativity. She holds a BA degree in Advertising and Art.
