Franchising seemed like an impossible mountain to climb. While it is very difficult in the beginning, it is possible.

By John Evans

ATTENTION MILLENNIAL ENTREPRENEURS! 
YEAH, YOU!

Have you considered franchising your business? You’ll be faced with many significant questions that will pose as obstacles. Where do you start? How much will it cost? What legal documents are required? Is my business even ready or able to be franchised at all?

At first glance, these questions make the idea of franchising your business seem impossible. You are busy operating your own day-to-day model of your business (which is hard enough as it is) and you’re now expected to go through a whole new level of development within your business that may seem alien. How do you even begin?

There is a lot of support that answers these questions, one of which is the International Franchise Association’s NextGen in Franchising contest. In 2015, EverLine Coatings and Services (Canada) became one of the first five grand prize winners for the program, along with Tot Squad (USA), Jibu Water (Uganda/USA), Le Mime (Mexico) and Panarium (UK). All emerging brands there were finalists at different stages of franchising. These millennial-based emerging franchise systems all had the opportunity to get direct answers to their questions, share ideas and grow and learn together through the NextGen experience.

It’s a Big Deal

Being a part of the NextGen in Franchising contest is a big deal. If you have a business that has even the slightest chance of being scaled up through the wonderful world of franchising, you must apply and give it your best shot. NextGen is a global competition that invites aspiring millennial-business owners and emerging franchisors to attend the IFA Annual Convention, take part in an accelerator program led by CEOs, and gets you connected to the “inner circle” of the IFA right away.

You will be pointed to network and meet with the top established franchisors related to your industry. They will share with you some of the major challenges they have faced, and will give you invaluable advice on how to avoid those challenges and show you the paths of least resistance. This is by far the most valuable aspect of the whole experience, as it could result in saving considerable time and money as you develop your franchise business.

Being a winner in the NextGen in Franchising competition gives you major boosts in credibility, exposure, and networking opportunities compared with your peers. This is particularly more meaningful to millennial entrepreneurs that are looking for a big break into the industry. It’s not all handed to you however, you have to hustle. You’ll need to review the registration list, do your research on the contacts who are attending, and have a pointed direction for what you would want to learn from the experience.

EverLine Coatings and Services had this opportunity and ran with it, and it has produced a fast-growing brand across Canada with it opening two new locations in its first year of actively franchising, with a forecast of five locations for 2018, and 10 for 2019.

Before NextGen:

Stand-alone Business

EverLine Coatings and Services’ story of growth and entrance into the franchising world may sound similar to yours. It was a very humble beginning and you’ll find that the steps that it took to become a franchisor are very attainable with the right advice, direction and support that the NextGen in Franchising contest and IFA provides.

EverLine was founded in 2012 in Calgary, Alberta, Canada. It is a parking-lot line painting and maintenance company that provides industry-leading communication, credibility, professionalism and quality. As the company grew, basic systems, checklists and policies were developed to help the company run smoother, train employees faster, and
increase profitability.

These were the very early seeds being planted that transitioned into best practices across an entire franchise system. Developing internal systems will make growth far easier for the owner-operator entrepreneur who is always looking for ways to improve the business. Did your team develop a better way to do something? Test it, set the policy, make it gospel, train it, and enforce it. These are the building blocks that are necessary to even think about franchising.

2015 IFA Convention: Learning How to Franchise

To apply for the NextGen contest, EverLine put together an executive summary as to how it sees a franchise system could work, and a three-minute video. It was accepted as one of the grand prize winners and invited to the 2015 IFA Convention in Las Vegas.

It was a tremendous opportunity. Not only was there exposure to what the franchise community looks like, but attending enabled us to learn from those who have “been-there-done-that” at all different stages of franchising. In EverLine’s case, as a stand-alone business exploring franchising, it was a matter of joining roundtable discussions, reaching out to experienced mentors, and having those important follow-ups to build on the conversations. After consulting a panel of experts, it was established that the company needed to test its systems in a separate corporately owned location, and begin the development of a franchise agreement and a disclosure document.

Testing Your Brand: Corporately Owned Location

The purpose of the corporately owned location is to prove that your system and concept can work in a separate market without you running it yourself while maximizing profitability and consistency across locations. Emulating the test location as a franchise is valuable, as a general manager is brought on as a “guinea pig,” and the location can be left to be run as a “simulated” franchise. The learning from this experience is invaluable and necessary. It forced the adjustment of training schedules, what was trained when, how to support the franchisees, what type of franchisees to recruit, and how the financials of a franchise location work compared to a headquarters.

After having the opportunity to learn from The Dwyer Group, a multi-brand franchise service company, during the IFA Convention in 2016, EverLine knew it needed to develop strong, clear values that everyone in the brand could come together and champion. By operating with a higher set of clear, fundamental values, your people will feel a sense of pride, accomplishment, and will show much more enthusiasm for your brand. In 2016, EverLine introduced its DRIVEN Principles as a result of the corporate test location, as it ensures that there is a uniform assignment to higher values brand-wide.

Becoming a Franchisor

Once the systems were proved, and all necessary legal documents and financials were in place, it came down to selling franchises. Generating value and recruiting your first few franchises is a unique challenge. You’re expecting someone to buy in on a franchise business that is not widespread or totally proven.

The first few franchisees can be described as “pioneers” and are more risk tolerant than most, so engaging people with that in mind with the right expectations is key. EverLine utilized the strategy of reaching out to a variety of organizations to recruit from that have shared values, experiences and ideals. It has been successful so far with all franchisees being found this way, versus traditional trade-show or magazine advertising. It allows for a more targeted approach. EverLine is now off to the races.

Franchising seemed like an impossible mountain to climb. While it is very difficult in the beginning, it is possible. The development to the franchise model will make you grow into a much more rounded entrepreneur and there is a lot of fun in the process (and tears). This journey was supported the entire way by the connections made at the NextGen in Franchising experience and the IFA Convention. It is certainly an experience worth sharing. 

John Evans is President of Everline Coatings and Services Ltd.

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