Franchisor Spotlight: Pet Supplies Plus

FranchiseWorks presents Pet Supplies Plus, the next franchisor to be featured on our Franchisor Spotlight Series. As a leading resource for prospective entrepreneurs, FranchiseWorks is dedicated to providing information that any individual can use to find the right franchise or business opportunity for them.

Franchise 500 Ranking – 2013-2015

Franchise Times Top 200 – 2014 and 2015

VetFran Discount of $6000 off franchise fee

At Pet Supplies Plus, we’re crazy for pets, too. With more than 320 franchise and company locations in 26 states, Pet Supplies Plus is America’s favorite neighborhood pet store. Each location offers a wide array of pet food, pet products, grooming services and animal expertise all at a great value, allowing customers to spoil their pets even more. Friendly, knowledgeable staff get to know each pet and their owner by name and provide playful store experiences to remind them just how fun it is to own a pet. Pet Supplies Plus stores are large enough to house an incredible variety of food and equipment, yet small enough to still feel neighborly. 

Interview with David Leonardo, Senior Vice President of Franchising with Pet Supplies Plus.
Check out the interview with David Leonardo as a podcast episode!

How has your company evolved since the first store opened in Redford, MI in 1988?

When we first opened in 1988, we had some pretty revolutionary ideas:

• Locate our stores in neighborhoods, so they were convenient to get to.
• Build on a smaller, more efficient footprint (5,500 to 10,500 sq. ft.) to make our stores easier to shop and less expensive to run.
• Locate our stores around distribution centers so that we could offer customers a wider selection at more attractive prices and quicker inventory turns.
• Over the years, those ideas have served us well. We can tout our wide array of pet food, supplies and toys, services like grooming, self-service pet washes, and adoptions. But what really sets us apart is the retail experience itself. We're neighborly, we're knowledgeable, and our customers trust our advice.

Neighbor's loved Jack and Harry's novel retailing concept. Within five years of opening their first Pet Supplies Plus pet center in Redford, Michigan, they had 30 locations. Soon, they were joined by a third partner, Harvey Solway, and the business continued to grow. In September 2010 PSP was bought by a private equity firm called Irving Place Capital. Today, there are over 320 Pet Supplies Plus pet centers in 26 states. Our goal is to grow the PSP brand significantly over the next 5-years and beyond.

What are some common misconceptions about being an owner in the pet care industry?

There seems to be three misconceptions:

1. "Since it’s retail, I’ll need to be in the store all the time.” Not so. Our “investor model” allows franchise owners—particularly the 65% who are multi-unit owners—to supervise remotely while an on-site operations manager runs the business day to day.
2. “Retail is a grind.”  Many retail concepts have earned that reputation. At Pet Supplies Plus, it’s not a grind; it’s a grand time. We’re Petcentric—we love pets and pet people. Our neighbors come in our stores happy and leave happier. We make the shopping experience FUN: fun for our team members, our neighbors and their pets. (Yes, pets are welcome in our stores.)
3. “You can’t make any money—not fast food money—in the pet business.” The October 2015 issue of Franchise Times lists its Top 200 Franchise Chains by worldwide sales. Pet Supplies Plus ranks #102 noticeably ahead of many well-known food franchises. And according to the ITEM 19 in our 2015 Franchise Disclosure Document financial performance representation, the average annual gross sales of a Pet Supplies Plus store is $2,548,565*. Compare those numbers to any other franchise to see if you can make money as a Pet Supplies Plus owner.

What options do candidates have when looking into your franchise opportunities?

• Single unit – franchisees focus on the day to day operations; staffing, marketing, inventory management, customer engagement, etc.  This is more of a hands-on roll.
• Multi-unit – franchisees focus on working with their store managers and growing their business.  Emphasis on marketing, financial management, real estate and growth. Each store manager handles the day to day operations.

How many franchised units do you have?

148 franchised units and 175 company units.

What are some competitive advantages of your business?

• Buying power of 320+ stores allows the stores to offer a greater variety of products at lower prices
• Smaller stores and local ownership allows for a much greater level of customer service and engagement, building relationships with our neighbors and their pets
• Smaller stores mean lower rent, lower labor costs, lower prices to neighbors, higher profits.
• Twice the selection of natural, holistic and organic foods.
• According to the American Pet Products Association report, pet industry spending is at an all-time high with overall spending for 2015 expected to exceed $60 billion.
• Recession resistant - More families are getting pets and they are spending more on them as pets take an increasingly more prominent role in our lives.
• Convenience, value and fun.

What are the desired qualities of your ideal candidate?

• Must align with PSP mission and culture: to be America’s Favorite Neighborhood Pet Store. 
• Has strong values, is hard working, fair, honest, and caring. 
• Should have prior retail experience customer service, food service, banking, or other service based industries. 
• Has an intrinsic, service orientation and a natural desire to provide excellent customer service.
• Train and lead their employees in providing and meeting exceptional service standards. Is 
• comfortable marketing their products to customers using a product knowledge expert approach.
• Multi-Unit franchisees should have strong management background with a history of consistent career growth achieving or exceeding business goals.

What do you hope for the future of Pet Supplies Plus?

Our goal is to grow the PSP brand significantly over the next 5-years and beyond.

What are ways to learn more about Pet Supplies Plus and how to become an owner?

Visit us at www.pspfranchise.com, or contact us directly:

Steve Olson

Franchise Development Manager

734.793.6532 | solson@petsuppliesplus.com

David Leonardo

Senior Vice President, Franchising

734.793.6608 | www.pspfranchise.com

*Item 19 of PSP Franchising, LLC’s 2015 FDD provides that $2,548,565 is the average gross sales achieved by 119 franchised PSP stores during the measurement period beginning 12/29/13 and ending 1/3/15. Your results as a new franchisee may differ. Of the 119 franchised PSP stores, 44 PSP stores, or 37%, exceeded the average annual gross sales.

Franchisor Spotlight: Meet Anago Cleaning

FranchiseWorks presents Anago Cleaning, the next franchisor to be featured on our Franchisor Spotlight Series. As a leading resource for prospective entrepreneurs, FranchiseWorks is dedicated to providing information that any individual can use to find the right franchise or business opportunity for them.

Anago’s vision is to be the very best in all aspects our services while being the superior choice of our clients by providing a clean, safe and healthy environment.




As the name Anago implies, our mission is to ”lift up” our Franchise Owners to achieve financial freedom and security as they provide superior service to our clients. Anago Cleaning Systems’ comprehensive systems and people work together to guarantee success for our Franchise Owners, as well as total satisfaction for our clients.

Judy Walker, CFE for Anago Cleaning Systems:

How has your company evolved since 1991?

In addition to our significant growth over the years, Anago has evolved into the technology leader for our industry. We perfected and implemented proprietary, cloud-based software systems to manage every aspect of the business, which enable our Master Franchise Owners to run their operation from wherever they are. We also have a proprietary mobile app used for janitorial quoting and customer service. 

What are some common misconceptions about being an Anago Master Owner?

One of the biggest misconceptions is that the Master Franchise Owner is in the cleaning business. A Master Franchise Owner is NOT in the cleaning business – their Unit Franchisees are. This is an Executive model franchise and the Master Owner is in the sales and marketing business.

Another misconception is that the Master Franchise Owner must spend time cold calling and knocking on doors for cleaning contracts. Anago has completed years of research and identified the businesses within a Master territory that contract with a cleaning service and produce higher revenue for both the Master and Unit Franchisees. These leads are pre-loaded into our proprietary cloud-based software systems for the telemarketer to call and set an appointment for the Master or his/her salesperson to bid on.

How many franchised units do you have?

Anago Cleaning Systems currently has 37 Master Franchise territories located in the U.S., Canada, and South America with over 2,400 Unit Franchisees.  Entrepreneur Magazine has recognized Anago multiple times as one of the fastest growing franchises in the U.S.

Are you available in Canada and Internationally?

Yes, we have available territories in Canada and internationally.

What are some competitive advantages of your business?

• 12 primary revenue streams.
• No royalty payments for the first 6 months of operation, so the Master can concentrate on building his or her business.
• One of the lowest franchise fees in the industry.
• 20+ page fully search engine optimized (SEO) website, specific to the territory is included in the franchise fee.
• Technology leader in the industry – proprietary mobile app used for janitorial quoting and customer service.
• Name brand with over 25 years of experience in the franchised commercial cleaning

http://www.anagocleaning.com/

What is the desired background/qualities of your ideal candidate?

Anago’s ideal Master Franchise candidate is a mid-to-senior level executive with a strong background in sales and marketing. Many of our Master Owners are former CEO’s Directors and VP’s of large, nationally recognized companies. The ideal candidate will also have the ability to recruit, direct and manage highly motivated sales personnel.

What do you hope for the future of Anago Cleaning?

Anago Cleaning Systems plans to expand substantially in the next several years, both in the U.S. and internationally. We plan to stay on the cutting edge of the latest in technological advances in our industry as well. 

What are ways to learn more about Anago Cleaning?

Please visit our brand new franchise development website, www.AnagoMasters.com which is full of great information and answers to most of the frequently asked questions about our business model. There are also great video testimonials from some of our Master Franchise Owners. You can also reach our office directly at 800-213-5857.

Learn more about Anago Cleaning Systems!

The Truth Behind Franchise Business Ownership

What does it take to own a franchise? In many ways, the responsibilities of a franchise owner align quite similarly with those of a small business owner. Even though they are essentially the same, the franchise owner starts of with a few more advantages.

There are many franchise concepts and some of them offer a type of product or service that connects directly with the customer. Depending on which franchise you choose, you could be very involved with the public on a daily basis. If you don’t have the patience or personality to deal with complaints, demands and the occasional attitude, then you might want to look for a franchise that does not need you on the front lines. Carefully understand the outline of your responsibilities and don’t settle for something you aren’t passionate about.

As an owner you need to make sure you have a strong team of employees, so you need to prepare for effectively training and motivating your team. The franchisees’ training and on-going support will come from the franchisor; however, the franchisee must pass on their knowledge and use it to better their individual operation.

You’ll also need to consider the marketing of your business. Your franchisor may have national or regional advertising, which they will handle. However, you may be also tasked with leading local marketing activities to actively promote your business. Are you prepared for this?

You will also need to plan for additional costs in starting of your business. There are the expenses of the initial investment, but keep in mind the royalty fees, equipment costs and the expense of keeping your business running day to day. Don’t set yourself up to fail — money is important and so is time. You will be pulled a lot of different directions and you will need to dedicate a great deal of time on your business so your business can get up on its feet the right way.

Simply put, a franchise owner is a leader with an inability to quit. They take initiative, communicate effectively and are pro-active. Expect to fill this role wholeheartedly and you’re setting yourself up for great success.

Are you ready to be your own boss? Perhaps it’s time for a free consultation with a qualified and experienced franchise consultant. FranNet has a great track record of assisting individuals on their path to business ownership. Make arrangements to speak with one of our representatives today!

4 Types of Questions to Ask Franchisees, Before You Become One

You’ve gone through the process of narrowing down the franchise concepts that fit you best. Now it’s time to start the research process.

Before you invest any money, it’s important to carefully and thoroughly perform your due diligence. Make calling and visiting with franchisees part of this process. Franchisees are invaluable resources when it comes to truly understanding how you will fit within a particular franchise.

In other words, you’ll want to speak with at least eight to 10 franchisees in the franchise you are considering. Ask the franchisor which owners have similar backgrounds to you, who the most successful owners are and those who may be struggling. You’ll also want to include a couple franchisees on your call list who are no longer with the franchise and gain more insight into why they left.

By conducting this type of research, you are able to gain a greater perspective of the business you are considering buying. Plus, you’ll have a better idea as to where you might fall on the performance spectrum within that franchise model – top, middle or low performing.

So how should you prepare for these calls? Gather your questions! Here are four types of questions to consider including on your list to get the most out of your conversations:

Getting to Know the Individual
When meeting with a franchisee, the first type of questions you’ll want to ask should be centered on getting to know the individual. Their answers will help you get a better feel for how similar or different from that person you are. And this information may help you predict how you might perform in this same system. Ask questions like:

• How long have you been in business? 
• What were you doing previously? 
• What made you choose this franchise?

Try to get an idea of how it’s going for them, and in general, if they like what they do.

The Rating Questions 
The rating questions are a great way to get a better sense of franchisor provided programs and support. For example, if a franchisee says that the support is great but then rates it a five out of 10, then you know you may want to dig a little deeper into the type and consistency of support provided. 

Use the rating-based questions to gather more information on the franchisor-franchisee relationship. And when a rating is exceptionally low or high, take that as an opportunity to ask them to elaborate. Sample questions might include:

• How would you rate the initial training?
• How would you rate the ongoing support?
• How would you rate the marketing programs?
• What do you like best and least about the business? 

Get a Sense of the Numbers
This is your opportunity to get real-life numbers on the annual revenue, expenditures, and revenue breakdowns. Remember how your list of franchisees to contact represented a good cross section of top, middle and low performers in the system? Well, this will give you a good idea of what you could expect in the best and worst of cases should you decide to move forward. Questions you might include on your list are as follows:

• How do you compensate employees (benefits, paid time off, etc.)?
• What is your annual revenue expectation for the year?
• Approximately how much per year do you spend on …?
• How much could I reasonably expect to gross/net in the first year, second year and third year?
• What are your costs of goods sold as a percent of sales? 

If You Could Only Ask One Question 
The answer to this question speaks volumes, “If you had to do it over again, would you?”

Just because a franchisee is considered a “rockstar” in a particular franchise system does not mean that that individual’s answer to this question would be an automatic “yes.” It’s important to remember that a franchise is a small business. It may come with a turnkey business model, but you still have to be prepared to put in the hours and the work. What is the cost/reward ratio, and is that something you would be comfortable with.

Once you’ve completed your calls and visits, and you’ve reviewed your notes, it’s time for a little reflection. Try to determine if you are more similar to the successful owners or if you relate more to those who are struggling. Ultimately, you want to be able to determine if this is something that you could see yourself doing and that you would enjoy doing. The business that is meant for you is one that will help you achieve your goals and vision.

Do you feel that you’re ready to get started? Let FranNet connect you with the business you’ve been looking for. Ask us about a free consultation with a qualified and experienced franchise consultant. Our purpose is to connect the dots and make the transition from corporate employment to the freedom of business ownership manageable and safe.

Still Unsure Of The Millennial Generation?

It’s not set in stone, but generally “millennials” are said to be born somewhere between 1982 and the early 2000's. The exact dates may not be consistent, but the words used to describe this young group of individuals are. Millennials are said to be lazy, narcissistic, living with their parents, incapable of following rules, unemployed, unprepared and (here’s a popular one) in debt. These are just a few descriptions that encompass the people entering or participating in the modern workplace. Also, the US Bureau of Labor Statistics predicts that millennials will make up approximately 75% of the workforce by 2030. 

These harsh accusations are how the professional community imagines this generation. It is understandable why some millennials could feel defensive or angry, yet what should trouble them even more is the truth those words carry.

A study by PNC Financial Services Group confirmed millennials carry an average $45,000 in debt. Pew Research Center’s analysis of the 2012 U.S. Census Bureau data shows 36 percent of the nation’s young adults (ages 18 to 30) live with their parent’s. Forbes explained 68 percent of corporate recruiters say it’s difficult for their organizations to manage millennials because they don’t like red tape, arbitrary hierarchical structures, or being forced to follow a specific process. There is no denying the facts and it’s clear why companies feel the need to arm themselves with articles on “how to deal with them.”

In response, here are a few tips about millennials:

·      Keep an open mind. Not every young person to come before you will have the aforementioned qualities. You might find them to be very open to feedback, tech savvy, creative, flexible and ambitious.

·      Come to terms with the fact that millennials are going to move on. Instead of focusing on stopping them, look for ways to optimize the time they spend with your organization.

·      In a recent Deloitte poll, 70 percent of millennials say they'd reject traditional business to work independently. They are more likely than other generations to study majors related to entrepreneurialism, which shows their entrepreneurial spirit.

·      They look for immediate satisfaction and live heavily in the moment. Instead of trying to change this, integrate their energetic and participatory personality into your workplace.

·      They are optimistic, have high expectations and want to forge their own path. Use their drive and perspective to inspire positive company culture for your business.

The worst thing you could do is fear this generation of excited, hopeful young people. It’s fear and a lack of encouragement, challenges, open minds and lowered expectations that enforce the notion that it’s okay for millennials to have this reputation. It’s not okay.

To the millennials I say: prove you’re a hard worker and strive for success. To everyone else: Let them.

Franchising doesn’t have an age barrier. Out of the thousands of franchises to choose from, there is one that is right for you. Call about a free consultation with a qualified and experienced franchise consultant. 

Michael Martuza Discusses His New Book, "The Franchise Rules"

Michael Martuza is the owner of FranNet New England and the author of recently released The Franchise Rules: Find a great franchise that ‘fits’ your goals, skills, and budget. As a franchise consultant, Mike works with individuals considering business ownership to match them with franchise businesses in the local market. The book (paperback, ISBN 978-1500615734, $5.99) is the culmination of “rules” he’s gathered over his career to help others discover their ideal business opportunity.

What made you decide to write The Franchise Rules?
While working with clients, I continually come across the same situations and questions. Everyone tends to get hung up on similar issues, so I thought I would write about the underlying guidelines that I recommend clients follow when considering franchise ownership. Not only does it help me as a consultant, but it helps the client be better prepared and educated when they begin their investigation.

Much of the book's content was taken from my franchise business ownership seminars, which feature three basic rules. The book expands on that idea and is really a culmination of all of the rules I’ve figured out over my years of doing this.

How long did the book take you?
Three to four months.

What was your writing process?
I had all of these thoughts and stories I wanted to tell to clients before they began to look at a specific franchise. Prior to outlining the book, I really had to consider how to organize it. How do I make it easy to read and follow?

The book is formulated along the lines of a client’s thought process, beginning with what a client should do or how they should decide if a franchise is the right opportunity. And finally, how best to approach the due diligence process.

I would say 90 percent of the effort was in the organizing and editing. The goal was to provide a lot of great information in a very easy to read book.

How did the title come about?
I was sitting there with this list in my hand thinking about how best to get readers/potential clients to really understand that finding a great franchise is a step-by-step process. It occurred to me that this wasn’t just a list or a process, but for the most part "rules" that should always be followed. I think the title really sums up the contents of this book.

Your first rule, “Don’t Do Anything Stupid,” is pretty blunt. What was the inspiration behind that?
I often talk about people who end up making emotional buying decisions. What I mean are those potential business owners who, without doing any research, think “I want to be in this type of business because …” or “I saw this concept when I was on vacation and it worked there.” I stress that it’s important to inform them so they know what they’re doing and what they’re getting into.

It’s the first rule and phrased that way, because I don’t want readers to rush into a buying decision. Read the book. Read all of the book, and come away better educated on the process before making any decisions.

If there were one thing you would want readers to take away from The Franchise Rules, what would it be?
Utilize experts. They can help the potential franchise owner find the right opportunity; something that will ‘fit’ their goals, skills and budget.

How do these rules come into play when you’re working with clients at FranNet? 
Before a client comes in for a consult they are required (call it homework) to read the book. If they have attended a seminar, I will give it to them in person, otherwise I send it (via Amazon Prime) immediately after a Personal Franchise Assessment (PFA) review call. It takes about two hours to read, so if they are serious about looking at franchises, there is no excuse.

It’s great prep work. Not only does it help educate clients on the process they’re about to start, but it sets expectations and commitments for both parties.

Where can The Franchise Rules be purchased?
The book is available on Amazon, both in electronic ($2.99) and paperback ($5.99) versions.

Many Businesses Thrive in All Economic Conditions

If you’re considering franchise business ownership, then you’re most likely aware of the number of options available to you. From quick-service restaurants to IT services and health and wellness businesses, there are more than 3,000 concepts available across more than 90 industries.

Having experienced an economic recession, you may be among the potential business owners thinking, “What about the economy?” Fortunately, the franchise industry is expected to see a continued increase in employment growth and franchise units established for 2014, according to a report released by the International Franchise Association.

Even so, if the economy is on your mind, you should know that there are many businesses that thrive in all economic conditions. So what are they and why is that the case? Below we discuss three areas of franchise businesses considered to be recession-resistant.

Growing markets driven by demographics
Senior care, residential repair and cleaning are just a few of the markets that continue to see steady growth within the franchise industry. What sets these markets apart is how they are driven by demographics.

Take senior care, for example. There are nearly 76 million baby boomers, those born between 1946 and 1964, in the U.S. They make up approximately 24 percent of the U.S. population. As a matter of fact, there’s a person who turns senior age every seven seconds in the U.S. As this generation ages, we will continue to see a growing need for specialized services, care and products. These are needs that, regardless of the economic climate, will need to be met.

Essential services
Essential services are those things that, for the most part, we have to have. These types of services range from the automotive and damage restoration industries to health and wellness, and even hair care.

Let’s look at the automotive industry. From getting to work, to driving to school or dropping the kids off at practice, many of us depend on our cars daily. The best way to keep your car in tip-top shape is to perform routine maintenance, cleaning and detailing.

If you’re thinking, “I can do an oil change myself,” consider that cars today can have fairly advanced issues. Problems with the electrical or fuel system, for instance, may require the expertise of a professional. Plus, many people just don’t have the time, even if they have the knowhow, for DIY. In other words, if you’re a car owner, it’s likely you’ll make needed financial adjustments in order to keep your vehicle up and running.

Businesses that help other small businesses
Franchise opportunities that help other small businesses are things like business coaching, professional consulting, expense analysis and sales training. These types of franchise businesses are great for taking the skills you’ve developed over your tenure and applying them through your own business to help others succeed in theirs.

In an economic downturn, companies may need to re-budget, improve their sales process or decide how best to retain current clients. Often times, additional expertise is needed in these situations. But if you think about it, even in a good economy, these types of business issues are equally important, helping companies focus on business growth or staff development.

There are more than 3,000 concepts to choose from in the franchise industry. We’ve touched on just a few. If the thought of an uncertain economy makes you weary about business ownership, remember that many businesses thrive in all economic conditions.