Entrepreneurial dreams with help of franchising’s proven blueprint
In the landscape of American entrepreneurship, franchising stands as a beacon of opportunity. Northwest Indiana is a shining example.
The seven-county Region sits in the corner of a state voted the seventh best in the country for franchising by the International Franchise Association. This ranking, in tandem with economic growth projections, positions Indiana as fertile ground for small business and franchise expansion.
“There is tremendous opportunity in Indiana for franchise growth. I see a lot of white space for all sectors — service, retail and restaurant,” said Nick Powills, CEO of Mainland, a content marketing company based in Chicago.
Powills is also the founder of 1851 Franchise, a publication about the franchising industry. 1851 is the year the Singer sewing machine company pioneered franchising.
“There are two areas of opportunity — small businesses that want to become a franchise brand, and franchise buyers who want to shortcut business ownership and become a franchisee,” Powills said.
Franchise appeal
Regional entrepreneurs are seeing the value of franchising and taking the chance to realize their business dreams with an established business blueprint and a safety net. From pet care to tutoring services, cookie shops to fitness clubs, the world of franchising is as diverse as the communities it serves.
“There’s some beauty in this thing called a franchise,” said Tara Walston, owner of five Biggby Coffee stores.
Walston carved a niche with Biggby Coffee in the bustling franchise scene of Northwest Indiana and Southwest Michigan. In addition to being a multi-unit franchisee, she is Biggby Coffee’s area representative. After working in the banking industry, and with her children grown, Walston discovered franchising as her encore career.
“I wanted to do something fun, something heartfelt with meaning to me,” she said. “I wanted to connect with the community and fill my heart at the same time.”
To Walston, starting her first Biggby Coffee franchise in 2016 offered that chance.
Business blueprint
Entrepreneurship has long been synonymous with innovation, risk taking and a desire for independence. For many aspiring business owners, franchising provides the opportunity to harness these qualities within established frameworks. It’s a business in a box.
Unlike starting a business from scratch, franchisees inherit a map for success that has been tested and refined by the franchisor, reducing a level of risk.
“I love that the idea is already baked. It’s a proven business concept out there,” said Rich Naponelli, owner of Fetch! Pet Care and Dog Training Elite, two franchises serving Michiana. “The brand is built and you’re buying into that brand.”
Before becoming a franchise owner, Naponelli worked as an attorney in Chicago and a fundraiser at the University of Notre Dame. A lifelong animal lover, he had long been interested in running his own business. After caring for his dog with medical issues, Naponelli opened a Fetch! Pet Care franchise, an in-home pet care service. A year ago, he opened a Dog Training Elite franchise.
“It’s still a ton of work,” Naponelli said. “But I don’t have to worry because it’s a proven business model.”
Franchising also offers a supportive ecosystem. Franchise owners have the benefit of corporate training, marketing, experience and knowledge. As an area representative, Walston offers onboarding assistance and ongoing mentorship for Biggby Coffee franchisees. She ensures that new owners are equipped with the tools and resources needed to navigate challenges and capitalize on growth opportunities.
“There’s a support system through the whole process,” Walston said. “We help people grow to become business owners. We help them learn how to get there.”
Some people liken franchise ownership to being part of a big family. Franchise owners reach out to each other with questions. They get advice and learn from each other’s successes and failures.
Such resources are invaluable for entrepreneurs who may have limited business experience but possess the drive and ambition to succeed.
“They’re still in charge; they’re the entrepreneur; and they can see the path and make the decisions,” said Walston of Biggby Coffee franchise owners. “They sell specific items, there’s a certain process and marketing, but within that, there’s still the opportunity to create your own coffee store with your own vibe.”
Buying into a franchise can also provide an affordable option for many people, not just those with deep pockets.
“First-time franchisees are buying into low-cost franchises at an unprecedented pace. This is good and bad,” Powills said. “The good is that many people are entering home service brands (pool service, landscaping, window washing, power washing) at a high frequency. The bad is, it is really tough to build wealth with these brands.”
Powills recommends entrepreneurs think in threes.
“Have enough money to buy one, scale to two and have a rainy-day fund,” Powills said.
Multi-unit franchisees owned 53.9% of the total franchise units in 2022, according to Forbes.
Community value
Franchise ownership can also benefit the community. Terry and Becky Cuzzocrea are redefining what it means to serve their community in Elkhart through franchising. Their franchise, Seniors Helping Seniors, is not just a business venture; it’s a testament to the power of community engagement and the impact of franchise models in today’s economy.
Three years ago, the Cuzzocreas embarked on their franchising journey. They researched franchise options but were hesitant.
“It felt like somebody else controlling your entrepreneurial spirit. We weren’t jumping in with both feet,” Terry Cuzzocrea said.
After personal experiences with aging family members, the Cuzzocreas were drawn to the franchise Seniors Helping Seniors. The franchise matches seniors who need assistance with seniors who are eager to provide it. Services range from meal preparation to personal care, tailored to match clients with caregivers who share similar interests and hobbies.
The franchise model has enabled the Cuzzocreas to stay connected to their community.
“We get to help people we’ve known for a long time, like a former middle school shop teacher,” Becky Cuzzocrea said. “We walk away with a lot of great stories.”
This sentiment is echoed across various franchise sectors. Franchisees can forge meaningful connections and contribute to the socio-economic fabric of their communities.
Before Walston opened her first Biggby Coffee in 2016, other Biggby Coffee franchises pitched in to help her serve 500 cups of coffee to runners in a 5K that supported a local school.
“When you get in and start local and support the community, they support you,” Walston said.
Franchisor motivation
The relationship between franchisees and franchisors is symbiotic, driven by diverse motivations that shape the industry’s landscape.
“Franchisors are motivated by selling more franchises and building unit-level economics,” Powills said. “Franchisees are motivated by their families, building wealth and protecting their financial strength through the totality of life.”
Franchisees and franchisors find each other through a dating process that lasts weeks or months. It’s a dual interview, with both sides looking to be sure they’re compatible.
According to Powills, franchisors select their franchisees by looking at three aspects.
“Financial, passion and culture,” Powills said. “And it works the other way around for a franchise buyer picking the right franchise.”
Naponelli did his due diligence before opening his first franchise. He made sure the plan was viable in his market, reviewed contracts, talked to other franchisees and looked at numbers.
“What’s more is finding something you’re passionate about,” Naponelli said. “Prospective clients see that. Your passion comes through.”
With Dog Training Elite, he has found his passion.
“Dog training is a blast, and it can literally change lives,” Naponelli said.
Finding the right fit is important to franchisees and franchisors. For the Cuzzocreas, the organization culture at Seniors Helping Seniors matched their goals.
“The leadership is in it for the same reasons we are,” Terry Cuzzocrea said. “They weren’t telling us how much money we could make, but they were telling us what a difference we could make with people and with our employees.”
Today, their franchise serves 120 seniors and employs about 60 active seniors. Their company is breaking financial records and fulfilling their mission of serving others.
“Our days are normally more full of victories than stress,” Becky Cuzzocrea said. “We’re going to continue to walk this path and help.”
Franchise growth
Jason Markowicz’s vision for Fitness Premier Clubs illustrates the growth-oriented franchisor mindset. Markowicz is a multi-unit franchisee turned franchisor and franchising coach. He is the CEO of Fitness Premier Clubs, a regional fitness club, with 18 locations across Illinois and Indiana.
Markowicz has plans to add 100 locations across the Midwest, including Northwest Indiana and Southwest Michigan. By recruiting new franchisees and opening additional locations, franchisors can capitalize on untapped markets, increase brand visibility and solidify their position as industry leaders.
“We look for communities that are growing, thriving and underserved with fitness centers,” Markowicz said. “We can do a really strong business in a smalltown USA setting.”
Many franchises are poised to expand their footprint in the Region.
Biggby Coffee exemplifies how local impact can scale through franchising. Biggby Coffee is opening stores in Westville, Crown Point, Portage and Valparaiso.
The company is planning for another 15 to 20 stores in the next few years in Northwest Indiana alone. It is on track to have 1,000 stores by 2028.
Other franchises are also trying to break into Northwest Indiana. Crumbl Cookies has opened several locations. Pollo Campero, Atomic Wings, Big Frog and Crust Pizza Co. are just a handful of others eying locations in the Region.
By 2024, the International Franchise Association predicts there will be 821,000 franchise establishments in the U.S. The association forecasts total franchise employment to reach 8.9 million, with an economic output of roughly $860 billion.
Hoosiers are doing their part. Indiana added about 400 new franchised businesses last year, creating over 6,000 new jobs. Nearly 195,000 employees in Indiana work at franchises. Personal services and quick-service restaurants are experiencing the strongest growth.
Franchise evolution
For entrepreneurs across the country, franchising is a pathway to business ownership. As the franchise industry evolves, driven by innovation and community-centric values, entrepreneurs like Terry and Becky Cuzzocrea illustrate the transformative power of franchising.
Whether through senior care or coffee shops, franchising is shaping local economies and driving growth.
“We’re building a life we love for us, for our employees, for our partners and for our communities,” Walston said.
Read more stories from the current issue of Northwest Indiana Business Magazine.
