The company began franchising in 2005 and today has 20 locations. While many are in the New York area, they range from Ontario, Canada, to Dallas. Several more are under construction, generally in the northeast, with particular emphasis on casinos, airports, and other high traffic locations.
DVDNow Kiosks self-service movie-rental machines are in locations ranging from the United States to South Africa. The Vancouver, British Columbia-based company sells the kiosks as business opportunities, and has recently added to the offering, according CEO Scott McInnes. "One of the new initiatives that we are very excited about is our corporately run digital signage advertising program that is intended to drive generate additional revenue to our kiosk operators through the sale of national and regional multimedia advertisements," McInnes says. In addition to the U.S. and South Africa, DVD Now Kiosks are in 2,000 locations in Canada, Ireland, Norway and the Netherlands, McInnes says. For the next year, DVDNow will focus on the United States while also growing internationally, he says.
U.S.A. Mobile Drug Testing of Tampa is growing a brand-new business of going to local businesses to test employees for the presence of illegal drugs. John Cohen, executive vice president of franchise development for the company, says employers like the service because it's less expensive and less disruptive than sending employees elsewhere for testing, and because on-location testing makes it harder for employees to tamper with results.
For franchisees, Cohen says, several components of the opportunity make it attractive. One is that has a low cost of entry. Because it is mobile and can be operated from a franchisee's home and vehicle, it requires no real-estate investment, he notes. Further, a U.S.A Mobile Drug Testing franchisee requires few employees and those employees don't have to have advanced skills. Finally, the concept offers the potential for rapid return on investment, Cohen says.
U.S.A Mobile Drug Testing began offering franchises in 2010 and has seven locations on the East Coast. Within the next year, Cohen anticipates selling 30 to 50 additional units. "We're prepared, and this is a viable concept throughout the country," he says.
Rob Israel thinks Doc Popcorn is a viable concept anywhere people are interested in healthy snacks. The co-founder and co-owner of the Boulder, Colo.-based franchiser says, "The idea was to give moms, kids, and dads an indulgence and wonderful snack that's better for you in high-traffic venues."
Doc Popcorn franchisees work out of malls, shopping centers, stadiums, and similar locations selling popcorn flavored with high-quality cheese, gourmet peanut butter, jalapeno, cinnamon, and other natural flavors out of mobile units. "Our goal was to make the business model very simple," Israel says. "We wanted high margin, great turn--and a great smell to bring folks to the area."
The company began franchising in 2009 and today is up to 16 locations, including the likes of Denver's Investor Field and Pepsi Center, in addition to sites in Arizona, California, Georgia, Indiana, Illinois, Michigan, Minnesota, Texas, and Florida. Israel says the future looks good. "I'd like to be at 100 units in a year, and I think that will happen," he says.
The future is bright by definition at LED Source, a Wellington, Fla., company that is the first national franchiser of LED (light emitting diode) lighting products. Marcel Fairbairn, president and CEO says the company offers evaluations, retrofits, and consultation in addition to supplying energy-efficient, cost-saving, environmentally sustainable LED lighting.
The mushrooming appeal of LED lighting helped boost the company to an average growth rate of 40 percent a year since its 2005 founding. The company was started by Fairbairn, who is also CEO of Gearsource.com, a source for pre-owned lighting, audio, video, and other production and concert equipment.
LED Source began franchising in October 2009 and has signed agreements for franchises in Chicago and Canada. Current development efforts include franchises in New York, California, and Texas. "The company expects to have a network of 150 franchise offices throughout North America within three years," Fairbairn says.
When it comes to the future for new franchise opportunities, Haith's expectations are positive for businesses that have what potential franchisees are looking for. That is, something new and exciting that grabs their interest, along with sufficient veteran sat the helm to inspire confidence. "If I were a franchisee," he says, "it would be a concept that I would be passionate about and a management team I could respect."
Haith's own credentials include more than a decade with Maui Wowi Fresh Hawaiian Blends, which he introduced to franchising and guided to over 600 franchised units worldwide. In contrast to the easy-money environment during much of that period, today, sound business economics and, nearly as important, creative approaches to helping franchisees obtain financing are critical, he says.
New business franchisers are increasingly exploring all kinds of ways to enable potential franchisees to obtain the financial wherewithal to become entrepreneurs. Those tactics include introducing would-be franchisees to lenders, arranging equipment leasing deals, and, in some cases, self-financing startup fees.
Haith expects challenging times to bring out the best in the industry. "It's a bit Darwinian," he says. "The strong concepts will see growth, the weaker concepts won't. But it won't be pell-mell like it was. Everyone's being smarter about it."
