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Franchises for dummies
For your start-up investment, you get a proven business model and a lot of hand-holding.
July 6, 2004: 8:44 AM EDT
By Les Christie, CNN/Money contributing writer

NEW YORK, (CNN/Money) - Some people have a genuine head for business. Their minds race with ideas for squeezing ever more sales and profits out of whatever pursuit they're engaged in.

Those folks need not apply for most franchise operations, which more often prefer their partners to check their entrepreneurship at the door.

"Franchisers typically do not want someone to reinvent the wheel, just someone who will faithfully execute a tried-and-true business plan," says Matt Alden, president of Franchise Solutions, a franchise marketing firm.

Of course, there are thousands of franchise opportunities, and some are harder than others. For potential franchise buyers who want to buy into a turnkey operation, here is a sampler of six that fill the bill.

(For an idea of how much you can earn as a franchise owner, and how to finance the initial investment, click here.)

The Cleaning Authority: Cleaning up

You can find some of the most exciting, and easiest, opportunities in the most mundane of businesses. Steve Hockett, president of franchise referral service FranChoice, points to The Cleaning Authority as a perfect example of a formula that gives franchisees a high chance for success. "All you need to do is follow directions," he said.

The company assumes franchisees know nothing about running a residential housecleaning business. The two-week training program teaches how to start and run a small business, operate the company's computer system, hire and train personnel, use the proprietary Package Plan Rotation System (which directs the cleaners to adhere to a regular, comprehensive schedule of tasks), and get the most out of the direct-mail program that drives customers to the franchisees.

Approximate start-up investment required: $70,000.

Pump It Up: Party on

Jeff Elgin, CEO of FranChoce, says Pump It Up has become a very successful operation very quickly. The company runs centers with safe, air-filled equipment for children's parties. Toddlers can bounce on trampoline-like mats or go down slides, and older children and teens can climb through obstacle courses or joust on a mushroom-like platform.

Pumped-up kids  
Pumped-up kids

"It's a great turnkey operation," says Elgin. "New franchisees can get up and running in a month or two."

Founder Brenda Dronkers says the company finds potential locations for its franchisees, does all the site drawings, and sends a team to take delivery of the equipment, assemble it, and help in the grand opening. Pump It Up gives ongoing support in the form of a franchise relations manager and a help line. All a potential buyer need is enthusiasm for the concept and a love of children.

Approximate start-up investment required: $150,000 to $200,000.

AIM Mail Centers: Check's in the mail

AIM Mail Centers president, Michael Sawitz, says his franchisees -- which run storefronts where small and home-based businesses and consumers can buy stamps, ship packages, and make copies -- need continuous company guidance to ensure that they keep up with changes in the practices of its vendors, such as FedEx, UPS, and the Post Office.

"When we started the business nearly 20 years ago, we had limited use of computers and a very limited price structure," said Sawitz. "Now our point of sales system contains 72,000 prices, based on how far a package will travel, how delicate it is, the weight, and so on."

So the company has to constantly update, motivate, and educate franchisees. Any innovations to the business plan are thought through in the home office, vetted in the field, and only then presented to franchisees. "I hate giving anything to a franchisee I haven't tested," said Sawitz.

Among AIM's franchisees are a few non-profit organizations, including Elwyn Inc., which provides services to people with special needs. Elwyn uses their AIM outlets to train and employ the handicapped, and to help produce funds to run the organization.

Approximate start-up investment required: $100,000

Maui Wowi: One for the road

Maui Wowi started out selling fruit smoothies out of carts and kiosks at concerts and sporting events, but has branched out into storefront locations. The company recently opened franchise stores in Rockefeller Center and Mall of America, according to CEO Michael Haith.

Haith said Maui Wowi provides a high rate of return on investment, and the simplicity of the business model reduces the risks for those franchisees with little business experience.

The company helps new owners find and build out locations, and its training program, which includes the usual lessons of how to hire and keep books, also goes into very basic ABCs such as the best ways to move product back and forth from stores or warehouses to carts and kiosks.

Helping too is that the company has designed both the kiosks and carts to be easily portable so they can be moved from one seasonably busy location to another or from event to event.

Approximate start-up investment required: $50,000 to $75,000.

Fish Window Cleaning: They do windows

Linda Merrick of Fish Window Cleaning said franchises need not much more than motivation to be successful.

The parent company has put together a business model that attempts to position the brand as the most professional window cleaning service for each territory it operates in. Competition in most markets tends to be "fragmented," Merrick said, "mostly small mom and pop operations."

"Entrepreneur" magazine named Fish one of the 101 fastest growing franchise businesses in the country. It's economical to get into and the company supervises new franchisees with a 13-week program with specific steps to follow -- such as sending out mailings and how to call on retail and commercial locations with free estimates -- to keep the success rate of new owners high.

The company also helps by feeding franchisees business from national accounts. "As we move into more markets we become more attractive to national chains," said Merrick. "They can get centralized ordering and billing -- one stop shopping -- for more of their locations."

Approximate start-up investment required: $60,000 to $100,000.

Abrakadoodle: The business of art

When many school systems cut back on art education, veteran franchise operator Mary Rogers (she co-founded Computer Tots) spotted an opportunity. In April 2004, she launched Abrakadoodle, which teaches art to children age 20 months to 12 years. Franchise owners conduct classes at private and public schools, community centers, day care centers, and other locations.

The company has seven franchisees.

Rogers says her company's support and training enables new owners to start up quickly. Abrakadoodle offers regular updates in the form of marketing plans and new curriculums.

Approximate start-up investment required: $45,000.  Top of page




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Most stock quote data provided by BATS. Market indices are shown in real time, except for the DJIA, which is delayed by two minutes. All times are ET. Disclaimer. Morningstar: © 2018 Morningstar, Inc. All Rights Reserved. Factset: FactSet Research Systems Inc. 2018. All rights reserved. Chicago Mercantile Association: Certain market data is the property of Chicago Mercantile Exchange Inc. and its licensors. All rights reserved. Dow Jones: The Dow Jones branded indices are proprietary to and are calculated, distributed and marketed by DJI Opco, a subsidiary of S&P Dow Jones Indices LLC and have been licensed for use to S&P Opco, LLC and CNN. Standard & Poor's and S&P are registered trademarks of Standard & Poor's Financial Services LLC and Dow Jones is a registered trademark of Dow Jones Trademark Holdings LLC. All content of the Dow Jones branded indices © S&P Dow Jones Indices LLC 2018 and/or its affiliates.