Contractormag 1962 Franchisebluefrog
Contractormag 1962 Franchisebluefrog
Contractormag 1962 Franchisebluefrog
Contractormag 1962 Franchisebluefrog
Contractormag 1962 Franchisebluefrog

Franchising offers contractors stability in business operations, processes

Aug. 6, 2014
As one might expect, during the recession, interest was high in franchising.  Most franchising companies conveyed that their business was/is recession-proof. The future looks strong for franchising, and the industry overall.

CHICAGO — In a robust $2 billion industry with approximately 9,000 employees, franchising offers strong business opportunities. Even with past economic bumps in the road, according to information provided by IBISWorld’s Plumbing Service Franchises in the U.S.: Market Research Report, with a rebounding economy and an increase in construction rates, this industry was expected to return to positive growth in 2013, which will continue through 2017.

Benjamin Franklin Plumbing is part of the Direct Energy family.

Couple this with statistics from the U.S. Department of Labor’s Bureau of Labor Statistics — employment of plumbers, pipefitters, and steamfitters is projected to grow 21% from 2012 to 2022 — 82,300 new jobs — faster than the average for all occupations — and the future looks strong for franchising, and the industry overall.

Recession tough

Interestingly enough, most franchising companies conveyed that their business was/is recession-proof. “Roto-Rooter's business proved to be recession resistant; our business was either flat or improved each of the past six years,” said Paul Abrams, director of public relations, Roto-Rooter Services Company. “Because of our efforts to continually diversify and tweak our service offerings, the company has performed admirably during the economic downturn.”

bluefrog Plumbing + Drains’ president and CEO, Mark Dawson, agreed. “This is a recession-proof business; the economy doesn’t have as much of an effect as it does on other businesses.” Even as technology rapidly advances, plumbing is simply a necessity and essentially recession proof.

Mr. Rooter is one of seven franchise brands owned by The Dwyer Group.

“The recession has not affected Mr. Rooter as our same stores sales have increased each of the last four years, and we have added between 17 and 19 new franchises each year during that time,” said Doug Dixon, vice president, marketing and operations, franchise development, The Dwyer Group. “Franchisees like the stability of a known brand, especially in a challenging economy.”

As one might expect, during the recession, interest was high in franchising. “During the economic downturn we saw an increased interest, but a decline in qualified applicants,” said Mark Baker, president of franchise, Benjamin Franklin Plumbing.

Believing in the system

Chris Horney, the No. 1 bluefrog Plumbing + Drain franchisee, confides in the infrastructure, operational support, training and leadership of the franchise.

“I am smart enough to trust the people who have done it in the past,” said Horney.

He bought master franchise rights for a majority of the market and currently has one location open inside a Wal-Mart in Washington, Pa. Horney displays and markets bluefrog, in part, through his Re-Bath display at the local Wal-Mart. “I am building a relationship before there is ever a need,” said Horney.

bluefrog Plumbing + Drain is the newest brand from Home Brands Group LLC.

A Benjamin Franklin Plumbing franchisee for six consistently growing franchises in Texas, Keresa Richardson contends that there is more stability with franchising as a result of being associated with a national brand with more name recognition.

“People look at a franchise as a viable business during an economic downturn,” said Richardson. “You want an attractive name and logo to convey your message to gain the confidence of your target market. In addition, some contractors don’t know how to put a complete business package together. A franchise allows you to buy that package.”

Q&A Interviews

CONTRACTOR continues a discussion on franchises with Paul Abrams, director of public relations, Roto-Rooter Services Company; Mark Dawson, bluefrog Plumbing + Drains’ president and CEO; Doug Dixon, vice president, marketing and operations, franchise development, The Dwyer Group (Mr. Rooter); and Mark Baker, president of franchise, Benjamin Franklin Plumbing.

As a Benjamin Franklin Plumbing franchise, franchisees will have access to proven systems, best practices and being on the same team as like-minded contractors.

John Mesenbrink: What are some of the main benefits of franchising?

Abrams: Roto-Rooter's independent contractors get advertising assistance, telephone equipment and paid monthly phone bills. They also get to use the Roto-Rooter name and advertising jingle and they receive a complete computer system and software with 24-hour software support. Contractors are trained on proven business methods and get Roto-Rooter's identity items such as truck decals, uniform patches and other branding. Roto-Rooter also equips contractors with equipment such as drain cleaning machines, water jetters, sewer inspection cameras, backhoes, pump trucks and other heavy equipment where necessary. Management, accounting and marketing support and an established sales base are also benefits of becoming a Roto-Rooter independent contractor.

Dawson: bluefrog Plumbing + Drain launched in February 2014 and had 27 franchise agreements in the first four months. With marketing, social media and the Internet changing every day, prospective franchisees come to us for sales and marketing expertise. In general, there are three characteristics of clients looking to us for franchising: those that are already in the business and looking for an exit strategy; those already in the business and looking to expand their business portfolio; and those looking for a new business opportunity. The benefits we provide are a brand name that resonates with the customer, marketing services provided, operational processes in place, and we are driven to make clients realize their goals.

Dixon: Potential franchisees are joining an organization of more than 320 Mr. Rooter franchises. They are buying into an established system and brand. We also offer strong purchasing power, and we are able to get the best possible prices on parts, supplies, equipment and fleets and vehicles, which provides a bottom line benefit for our franchisees. Our experience in marketing, finance and operations can be a great benefit to a contractor who may not have experience in these areas. We look at franchise ownership as a long-term proposition, long-term relationship. It is a mutual evaluation process. If the franchisee is successful, we are successful.

Baker: Last year, Benjamin Franklin Plumbing franchises had an average “same store growth” of 13%. This means that on average, they grew top line sales by 13% of the previous year. Having access to proven systems, best practices and being on the same team as like-minded contractors, who are not in direct competition with you, are just a few of the benefits. You are the expert in plumbing.  We support you with state of the art training, marketing, operations and collective buying power to help you grow your business, and to help all of us, collectively, grow this brand.

bluefrog Plumbing + Drain launched in February 2014 and had 27 franchise agreements in the first four months.

JM: What are some strategies in place to facilitate expansion?

Abrams: Roto-Rooter has a track record of anticipating growth areas and helping its locations exploit them. The company has continually added new services and will continue to do so. Roto-Rooter began as a sewer cleaning company. Today, it is a full service plumbing repair company serving both residential and commercial customers. Roto-Rooter has expanded into sewer repair and replacement, basement waterproofing and most recently, water restoration services.

Dawson: bluefrog Plumbing + Drain is the newest brand from Home Brands Group LLC, which boasts more than 35 years of franchise success in the bathroom and kitchen remodeling industries. Our franchisees have complete access to the strategic, operational and marketing support needed to be successful in this thriving industry. Many small businesses don’t understand the numbers. We have everything from A to Z to help our customers such as our proprietary software with iPad support to help franchisees and their clients.

Dixon: We facilitate expansion two ways: 1. By helping our existing franchisees continue to grow, and 2. By identifying new franchisees join our system.  Starting with franchisee growth, our support team is focused on helping our franchisees become more profitable.  This begins with helping them make the phone ring with quality business opportunities.  In fact, our marketing team is creatinig more leads than our Mr. Rooter franchisees can currently handle.  Each franchisee has a franchise consultant who is also focused on helping to create a more efficient and profitable business.  Regarding the addition of new franchises, because approximately 65% of the U.S. territory is sold for Mr. Rooter, our franchise development team is very targeted in their approach.  We know exactly what areas we want to sell.  We also assist existing franchisees who wish to retire or sell their businesses by matching them up with buyers.

Baker: Benjamin Franklin Plumbing is part of the Direct Energy family. We have a very forward thinking partner in Direct Energy. DE is one of North America’s largest energy and energy-related service providers with more than seven million residential and commercial customers. Because of this, we can offer products and services others cannot. We have new products and offerings, which are facilitating the expansion of Benjamin Franklin Plumbing, which include leasing, a national advertising campaign, public relations, field marketing managers, regional business consultants, in-house marketing team and collective buying power.

JM: Do you feel that there is an unfair stigma with the term “franchise” with other contractors in the industry?

Abrams: No. Roto-Rooter's independent franchises and contractors have continually shown themselves to be great business operators who put customer service first. We cannot speak for other franchise businesses but we believe that our franchises have solid reputations in their communities.

Dawson: There may have been in the past, but I think many are now seeing the value of franchising and how it might benefit their own independent business. For instance, if you’re looking to sell your company, prospective owners aren’t going to want to buy Joe’s Plumbing, they’re going to want a brand name with creative marketing to support it. Franchising gives independents the opportunity to join a franchise and convert their branding and operating systems to yield a higher return. Franchising also makes it easier for independents to expand their service offerings without having to do all the guesswork. When you join a franchise, you get a proven business model, a brand name, marketing support, ongoing training and more. It’s financially a more effective route than going it alone.

Dixon: No. But I do think there are some misconceptions about franchising.  When those misconceptions are cleared up and someone actually puts a pencil to paper and calculates the value they are receiving as a franchisee compared to what it would cost to create or purchase those benefits outside a franchise system, most people come to the conclusion that franchising is a pretty good value proposition. 

Baker: With franchising, it is important to remember you are still in business for yourself, just not by yourself. Some may have the misconception you lose control of your business, and this could not be farther from the truth. Based on our experience, we know each business is different, each market is different, and each contractor has different goals and dreams. Our team is here to help individuals achieve their goals, and we take a unique approach with each business. We are committed to helping our franchises grow.

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