A Tribute to Erv Keup, author of the Franchise Bible, by Rick Grossman.

Franchise industry legend Erwin "Erv" Keup

A Lifetime of Achievement: Remembering Erwin (Erv) Keup

By Rick Grossmann

When I was in college I had a small business.

I wanted to expand my business and was evaluating the different methods of business expansion when I was introduced to franchising in one of my classes. I immediately fell in love with the model and started researching different ways to franchise my existing business. At that time being a young college student, resources were tight and the options were few.

I contacted numerous franchise development companies, consultants, and attorneys just to find out that the investment was way beyond anything I could ever come up with. One day, I went into a bookstore and was searching in the business section for books on franchising when I came across Franchise Bible. The author was, of course, Erwin J. Keup. I read the book in one day and started putting together my thoughts and vision for a franchise.  Even though we were a young start up company and had very few resources, we believed we could really make a franchise happen.

On a long shot, I started a little primary research and looked on the back of the book and saw the picture of Erv Keup and his address. I was able to find his phone number with a little hard work and research (this was way before Google). I contacted his office and expected to leave a message. But, when I explained to his secretary what we were trying to do, he immediately took my call and graciously spent over an hour talking to me about our franchise model and shared some money saving tips and ideas to get us started. After we were able to have a few phone conversations, Erv volunteered to drive over 100 miles to Santa Barbara, which is where I lived. But he didn’t mind because his passion for franchising and the enthusiasm that we had made the trip worthwhile.

“Erv Keup’s passion for the franchise industry, the people who worked within it, and his overall belief in franchising and its contribution to the economy, has helped countless people realize their dreams through business ownership.” – Rick Grossman

He was able to show us cost effective ways to create our franchise model and was flexible with helping us put our franchise documents together. We launched our franchise and had successful growth over several years. We never would have been able to do it without the help and assistance and the belief that Erv Keup gave to us.

Erv and I quickly became friends and started working on other franchise projects over the years. Erv took me under his wing and acted as my mentor. He taught me the business. I then started my own franchise development and consulting company and Erv and I worked on many projects together over the years and became friends in the franchise business. We knew when our wives were tired of hearing us talk about franchising we could always call each other and spend hours talking about the ins and the outs of our industry.

At the end of last year, I decided that, as Erv entered into his retirement years, it would be a good time to nominate him for a lifetime achievement award. I started working on it several months before the end of 2011 in hopes to present it to him in November of 2011. Unfortunately, we were all surprised and shocked when Erv suddenly took ill and passed away on October 16, 2011.

Even on his deathbed, he was instructing his sons on how to finish the 7^th edition of Franchise Bible. Erv Keup’s passion for the franchise industry, the people who worked within it, and his overall belief in franchising and its contribution to the economy, has helped countless people realize their dreams through business ownership.

While crafting ideas for the Franchise Bible 7^th edition, Erv told me that he really wanted to emphasize how franchising is such a huge part of the backbone of America, such a part of the success of the American dream, and how it could be a big part of pulling us out of the current economic situation that we’re in today. Erv was a great man and he’ll be greatly missed. This lifetime achievement, remembering Erv Keup, is our dedication and memorial to a great franchise believer and to a man who was always there to aid others in the pursuit of their franchising dreams.

Erv was most proud of his loving family. He would often tell me stories of their many adventures.

He is survived by his wife Mary of 54 years, his eight children, and his 17 grandchildren.

He told me he often teased his kids that 17 grandchildren was a good start but if they followed his pattern he should have had 64.

I had the privilege of attending his funeral service and getting to know other members of his family. They are a family of strong believers in God and his service was a beautiful celebration of his life.

Erv Keup practiced franchise law for over 45 years and helped countless franchisors and franchisees through the discovery and evaluation processes both personally with his firm and through the Franchise Bible. The 7^th Edition of the Franchise Bible is due to be published by Entrpreneur Press in Fall of 2012 and it will be dedicated to the life and legacy of Erwin J. Keup.

Goodbye my friend.

Thank you for being my mentor.

-  Rick Grossmann

Did you know Erv Keup? Feel free to add a remembrance or comment below.

ABOUT THE AUTHOR:  Rick Grossman is founder and owner of franchise development firm Franchise Matchmaker.

Which of these 50+ BBQ (Barbecue, BAR-B-Q, Bar-b-que) chains are your favorites… and why?

FranBest.com is putting together the definitive guide to BBQ and related restaurant franchise opportunities, and we need your input.

We know some BBQ aficionados and purists out there may turn up their noses at chain barbecue joints, but we want to know which chains have been able to successfully duplicate great bbq taste and atmosphere across multiple locations and operators.

Leave a comment, accolade and/or endorsement for your favorite(s) below.  Franchise owners, franchisees & employees are welcome to brag on their own chain (after all, you eat it all the time).

Here’s our list so far.  Have we missed any?

LOVE BARBECUE?  WHICH CHAIN DO YOU RECOMMEND AND WHY?

BBQ franchisors, for advertising info on the upcoming guides, please email Sean Kelly at info[at]franbest.com.

Despite the recession, hair care franchise company Great Clips is growing at, well, a great clip.

According to Vice President of Franchise Development Rob Goggins:

• Great Clips has posted same-store sales increases for 22 straight quarters.
• Great Clips is on target to recruit more than 100 new franchisees this year.
• Great Clips is track to sign close to 200 leases.

Yet not only are they awarding new franchises at an impressive rate, Great Clips is also receiving awards… the latest being for business ethics.

Great Clips Receives 2010 Minnesota Business Ethics Award (MBEA)

Wednesday, May 19, 2010, Great Clips was presented with the 2010 Minnesota Business Ethics Award (MBEA) for “ethical excellence.”

The MBEA was established in 1999 by the Twin Cities Chapter of the Society of Financial Service Professionals and the Center for Ethical Business Cultures at the University of St. Thomas.  The purpose of the award is to raise the standards for business ethics in Minnesota and to honor companies that exhibit the highest standards of ethical performance.  In 2009 the Minnesota Society of Certified Public Accountants joined as an award sponsor.

MBEA recipients are selected based on company size.  Certes Financial Pros received the small-company award.  Edina-based Great Clips Inc. received the midsize-company award.  Imation Corp. received the large-company award.

Congratulations, Great Clips

In tough times, maintaining a reputation for ethics and honesty is more important than ever.  Obviously, the commitment Great Clips has made in building a reputation for fair-dealing and good business practices is playing a key role in their success.

Congratulations to Great Clips and its franchise owners for the MBEA award and for setting a winning example.

Are you familiar with Great Clips? Share a comment below.

In the long run, there are many criteria to consider when evaluating a franchise opportunity. But initially there are just three main questions I ask in order to determine whether a given opportunity warrants further investigation. In attending a Discovery Day, I want to know:

Is this the right market to get into?

It doesn’t matter if a franchise has the greatest products or services in the world if consumers aren’t ready, willing and able to buy. Are industry sales growing? If so, do credible sources predict that growth will continue? This was one of my main concerns about the Hand & Stone Massage concept: Isn’t massage one of those luxury items that gets cut in recessionary times?

Is this the right concept to meet the market need?

If you determine that there is a market need, then ask: Is this concept designed to meet the needs of both the consumer and you – the operator? The best franchise concepts are streamlined for both operational efficiency and profitability. They are designed to provide value and a superior experience for your customer, and growth through multiple revenue streams for you.

Is this the right management and support team to guide my growth… now and in the future?

This is a critical consideration for several reasons. When you purchase a franchise you are agreeing to follow the systems and policies set forth by the franchisor for the duration of your franchise contract. For that reason, it’s critically important that you are confident that the leadership team has both the experience and judgement to make the right strategic decisions, and that they are truly committed to franchisee success. Additionally, you should consider the franchise fees and royalties you will pay as fees for services rendered and evaluate them on that basis. Does this management team have the experience and expertise to provide value to your business not only in the start-up phase, but on an ongoing basis? Can they provide benefit in excess of the monetary contributions you will make?

NEXT: Part 2: The Booming Market for Massage & Facials
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Meeting the market need for affordable massage & facials.

So how does Hand & Stone Massage & Facial Spa meet the growing demand for massage, spa and skin care services?

According to presenter and VP Bob McQuillan, the strategy is based on a simple premise: provide a wide range of top quality spa services – therapeutic massage, facials & waxing – at affordable prices and unmatched convenience.

Previous: Part 2: The Booming Market for Massage & Facials

Hand & Stone Massage & Facial Spa locations provide a varied menu of quality massage options, from Sports to Swedish to Pre-natal massage. The signature hot stone massage is Hand & Stone’s ultimate massage experience. In a hot stone massage, heated river stones are skillfully used with massage strokes to add a unique and effective enhancement to the overall massage experience.

Facials and skin care are relatively new additions to the service offering. At Hand & Stone Massage & Facial Spas, certified aestheticians evaluate the condition of clients’ skin and customize treatments for optimal results. Clients can experience a dramatic difference in the quality and texture of their skin after just one visit, and can return for a variety of facials to accommodate needs ranging from basic skin maintenance to acne, rosacea, sun damage, scarring or aging.

The pricing and scheduling system for the Hand & Stone Massage & Facial Spa is designed to provide convenience and value to the spa members and operational simplicity and recurring, predictable revenue flow for franchise owners.

Once new clients experience Hand & Stone through an attractive, introductory offer, they are encouraged to join the membership program, allowing clients to enjoy a 35% savings on spa service packages each month.

While scheduling in advance is recommended, members are welcome to visit on a walk-in basis to better accommodate their busy schedules and to increase their visit frequency. During the Discovery Day presentation, it was clear that there are many strategies and elements built into the system that simultaneously enhanced the health of Hand & Stone Spa members and the financial health of each individual franchise.

In addition, the marketing team has done a great job developing the Hand & Stone gift card program and using industry exclusive promotions like Hand and Stone’s new Spa Party concept to drive new customer traffic.

Next: Part 4: The Powerhouse Team Behind Hand & Stone Massage

The market for massage & spa services is surprisingly huge… and growing.

You may be surprised (as I was) that despite these tough economic times the demand is booming… and strong, continued growth is projected. No longer considered a luxury reserved for the affluent or the splurging vacationer, massage and related spa services have gone mainstream.

Previous: Part 1: What to Look For in a Franchise

According to industry statistics provided in Discovery Day (and which I independently verified), massage is now a $12 billion industry, and has experienced a 15% compound annual growth rate over the past three years. An estimated 24% of all US adults had a massage in the past year. 32 million active spa-goers made 138 million spa visits last year alone

Fueling industry growth is the use of massage for health and wellness reasons, in addition to enjoyment alone. According to industry sources, 85% of consumers believe massage is beneficial to health and wellness. Of the people who had at least one massage in the last five years, 31 percent report they did so for health conditions such as pain management, injury rehabilitation, migraine control, or overall wellness.

According to a recent survey, 13% of adult Americans reported discussing massage therapy with their doctors or healthcare providers. Of those 13%, more than half (57%) said their doctor strongly recommended or encouraged it. More than half of massage therapists (69%) receive referrals from healthcare professionals. Almost one-fourth of adult Americans say they’ve used massage therapy at least one time for pain relief.

According to statistics cited at Hand & Stone’s Discovery Day presentation, as long as your physician prescribes it, 74% of HMOs are now reimbursing their members for massages.

The market for Hand & Stone Massage & Facial Spa also includes skin care, which has an even more compelling story. The skin care industry achieved $18.7 billion in revenue in 2007 and is projected to grow 40% by 2012.

Sources: American Spa Industry Insider, August 2009; Massage Magazine Buyer’s Guide 2009 – AMTA Study; Spa Finder Survey 2009; 2009 U.S. ISPA Industry Update

Next: Part 3: How Hand & Stone Meets the Market Need

What is a “Discovery Day”?

Previous: Part 4: The Powerhouse Team Behind Hand & Stone Massage

“Discovery Day” is a franchise industry term used to describe the presentation most franchisors conduct for groups of prospective franchise owners. Discovery Day presentations vary by franchisor. Some are very slick sales events with scripted presentations made to large groups. Others are less formal and more personal, consisting of smaller groups with lots of interaction, dialogue and time for questions.

I was pleased to find that Hand & Stone Massage Discovery Day falls into the latter category, a experiencing presentations that were informative (rather than salesy) and personal, with a friendly and relaxed tone.

In total, there were 3-4 groups in attendance, and Hand & Stone VP of Franchise Development Bob McQuillan laid out the agenda: an “icebreaker” & attendee self-introductions over coffee and bagels, short presentations and Q&A’s by the training, operations & marketing department heads, a working lunch with senior executives, and an on-site tour of a nearby Hand & Stone Massage & Facial Spa. After a brief wrap-up and final Q&A, attendees would have the opportunity to experience a hot stone massage firsthand.

What I discovered at Hand & Stone Spa Discovery Day

I came away from the Hand & Stone Massage & Facial Spa impressed on a number of levels.

I was impressed with the Discovery Day experience itself. The people were friendly, open and helpful. It was not a dog and pony show or sales pitch, but an exchange of information from both sides to help determine whether the franchise was a good fit for the attendee’s business goals and skill sets. If you are seriously exploring business start-up options of this type, you will find the investment of time and travel expenses well worth it.

I was impressed by the industry growth statistics, which I verified independently after the presentation.

I was impressed by the simplicity and the operational efficiency of the concept itself, as well as the customer experience and reactions I witnessed.

I was impressed by the care that was exhibited in not making any earnings claims or representations outside of the Financial Performance disclosure provided in the Franchise Disclosure Document (FDD).

Most of all, I was impressed by the knowledgeable, experienced and dedicated team in place to support and guide franchisees from day one.

Listening to the presentations of this highly experienced management team, I had to keep reminding myself that this is a young franchise chain with less than 50 units.

Most of these professionals have experience supporting many times the number of franchise locations they currently serve, and I was impressed by the fact that John Marco and Todd Leff are willing to invest in establishing a solid foundation and infrastructure prior to embarking on the energetic growth that is almost a certainty in the next few years.

Hand & Stone Massage & Facial Spa is poised and ready for growth.

Hand & Stone Massage & Facial Spa appears to be poised and ready for growth.

Does that mean that the Hand & Stone Massage & Facial Spa is the right franchise opportunity for your personal and business goals? Is it the perfect match for your particular market?

Those are decisions that only you can make. All I can say is that the Hand & Stone franchise is definitely worth consideration… whether it’s the right opportunity is for you to discover.

Read all: Hand & Stone Massage Franchise: Discover the Potential

Elegant simplicity and a powerhouse team

Previous: Part 3: How Hand & Stone Meets the Market Need

The best franchise concepts have what I call an elegant simplicity.

They are easy to describe, and quickly understood.

They appear to have relatively few moving parts.

Each major element – like Hand & Stone’s simple menu of services, its membership-based approach, or the gift-card program – seems to equally and effortlessly benefit both the customer and the franchise owner/operator.

Founder John Marco

And, like best-in-class athletes, the teams that design, fine-tune and operate these franchise concepts make it look deceptively easy. While the systems and strategies often look like they occurred naturally and effortlessly, they are almost always the result of a management team that is equally strong in right-brain creativity, innovation,passion, left-brain practicality, organization and bean-counting.

As was abundantly clear in the Discovery Day executive meetings, Hand & Stone Franchise Corp. has plenty of both.

Founder and COO John Marco [pictured, left] is the source of the vision and passion behind the Hand & Stone Massage concept. As a physical therapist with 25 years of experience, John perceived the increasing public acceptance of massage services – and along with it the need for an alternative that provided a convenience and value without sacrificing quality or ambiance. He opened the first Hand & Stone Massage concept in Toms River in 2005.

Todd Leff

From the start, he recognized the appeal of hot stone massage and hired a leading expert and trainer in hot stone technique, Colleen Bryan, to head up his training department. Having received numerous inquiries from entrepreneurs interested in opening their own Hand & Stone locations, John Marco began offering franchises in 2006.

The business and franchise development side of Hand & Stone Franchise Corporation was recently supercharged by the addition of franchise industry veteran Todd Leff who joined the organization as both President, CEO and stockholder.

Todd Leff’s track record and 20 years of experience building successful franchise organizations is formidable. From 1990 through 2006, Leff grew Cottman Transmission from a small regional chain of 120 stores to national powerhouse with 400 stores. Most recently, Leff served as the president and CEO of AAMCO Transmissions and Cottman Transmission who had combined sales of almost $600 million in 2008. Leff supervised all operations and management of the 1,100 franchised stores operating under both brands and was instrumental in bringing Cottman and AAMCO under common ownership in 2006.

In his lunchtime presentation, Todd Leff referred to himself as the “numbers guy” who’s obsessed with business metrics, keeping operating and investment costs low, and maximizing the franchisees’ bottom lines. One of his first initiatives was the addition of the facial services as a new potential revenue center, and rebranding the spas “Hand & Stone Massage & Facial Spa “to reflect the expanded product line. The line expansion has reportedly already made a significant positive impact on unit level financials.

In speaking with Todd Leff, it’s clear that the man who created one of the country’s largest complete car-care

Bob McQuillan

companies has his sights set on controlled but aggressive national growth and positioning of Hand & Stone Massage & Facial Spa as the industry leader. To that end, he has bolstered the existing management team with experienced industry executives, and together they are ready to take the Hand & Stone Massage & Facials Spa franchise system to the next level.

Shortly after taking the reins as CEO, Leff announced the appointment of respected industry veteran, Bob McQuillan as Vice President of Franchise Development.

McQuillan most recently served as Vice President of Franchise Development at tanworld® where he was responsible for both franchise sales and operational improvements. From 2002 through 2007, McQuillan served as VP of Franchise Development for Hollywood Tans where he helped develop hundreds of franchise locations and was himself a franchise owner and operator.

Industry and Hand & Stone veteran Colleen Bryan continues to head up the growing training department, and has recently been joined by other key management additions, including Debbi Worton & Tara Kelly.

Debbi Worton, Tara Kelly & Colleen Bryan

Hand & Stone Director of Operations Debbi Worton has an impressive professional background with such leading companies as Maybelline, Proctor & Gamble and the Lawn Doctor Franchise system. Debbi oversees implementation of the “Spa in a Box” development program that enables turnkey spa development typically in 4-6 months.

In 2009, Hand & Stone announced the addition of Tara Kelly as Director of HSM Advertising, the in-house advertising agency exclusively serving Hand and Stone franchisees.

Tara has 15 years of retail advertising and media buying experience, and previously headed up in-house ad agencies for both AAMCO and Cottman Transmission. Tara is highly experienced in developing content, media plans and promotions for franchise owners throughout the country.

Next: Part 5: Franchise Discovery Day at Hand & Stone Massage

The demand for affordable spa services is booming… This powerhouse team is ready to seize it.

My search for the most promising new and emerging franchise opportunities recently led me to the seaside town of Toms River, New Jersey, and to Discovery Day at the home office of The Hand & Stone Franchise Corporation.

This series of short posts will give you a glimpse into this fast-growing new franchise opportunity that has attracted some of the top talent in the franchise industry.

Part 1: What to Look For in a Franchise

Part 2: The Booming Market for Massage & Facials

Part 3: How Hand & Stone Meets the Market Need

Part 4: The Powerhouse Team Behind Hand & Stone Massage

Part 5: Franchise Discovery Day at Hand & Stone Massage

Image:  Hand & Stone Massage

BrightStar Founder CEO Shelly Sun is definitely one of franchising’s rising stars.

Since she and her husband JD began franchising in 2005, the healthcare staffing company has grown from one company-owned store to over 160 locations in 31 states and plans to have 400 franchise locations sold by the end of 2011.

Through Sun’s leadership, BrightStar opens 7-12 territories each month and has experienced 811% system-wide revenue growth between 2006 and 2008.  In August 2005, they launched BrightStar’s franchising efforts, becoming the first franchising company in the United States to specialize in both medical and non-medical care and healthcare staffing.

And now, Shelly Sun can add IFA Entrepreneur of the Year to her accomplishments.  Here’s an excerpt from the company news release:

International Franchise Association Names Shelly Sun ‘Entrepreneur of the Year’

CHICAGO – BrightStar Co-Founder and CEO Shelly Sun received one of the franchising industry’s highest honors yesterday by the International Franchise Association as its Entrepreneur of the Year during its 50^th Annual Convention in San Antonio, TX….

“It is a tremendous honor to receive this recognition from my peers,” said Sun, addressing the more than 2,000 attendees at the convention. “This award is a result of our franchisees relentless daily efforts in providing our clients quality of life, and providing peace of mind to families across the country.”

Working as a CPA in 2001, Sun, along with her husband and co-founder of BrightStar, JD, found themselves looking for quality care for JD’s grandmother who was suffering from cancer in Florida. The experience inspired Sun, a 13 year veteran of corporate America, to develop a healthcare staffing business that would provide reliable care to those in need and who wanted to remain in the comfort of their own home.

Founded in 2002, BrightStar is a full-service healthcare staffing agency that provides the full continuum of care, from homecare to supplemental staffing for corporate clients such as hospitals, nursing homes, and doctors offices. In August 2005, they launched BrightStar’s franchising efforts, becoming the first franchising company in the United States to specialize in both medical and non-medical care and healthcare staffing.

Today, BrightStar has grown from one company-owned store to over 160 locations in 31 states and will reach 400 franchise locations sold by the end of 2011.  Through Sun’s leadership, BrightStar opens 7-12 territories each month and has experienced 811% system-wide revenue growth between 2006 and 2008.

“I am truly humbled to be receiving it after just a few short years franchising,” Sun added. Sun thanked her mentors, peers and staff and went on to say, “We are blessed to be in the business of providing peace of mind to our clients by providing the highest quality, compassionate care and service; and we look forward to entering new cities and new markets where we’ll be able to bring that service to families giving them dependability and comfort knowing their family is well cared for.”

Sun is a member of the IFA Finance, Audit and Budget, Membership and FranPAC committees. She was selected as the Entrepreneur of the Year by the National Association of Women of Business Owners in 2006, was on the 50 fastest-growing woman-owned companies listed in Entrepreneur magazine in 2007, 2008 and 2009 and was honored as an Ernst & Young Entrepreneur of the Year Finalist in 2008 and 2009.

Join us in congratulating Shelly Sun and the BrightStar franchise team.