Every business should have processes, procedures, and systems in place such that the business owner(s) can franchise the business and ultimately dominate the market. Whether you want to formally franchise your business or not, you create enormous leverage for yourself when you have a system in place that lets others grow your business for you. Here is one case study in how to do that.  

This article is based on correspondence with Shane Evans, founder of the franchise massage company Massage Heights. I learned of this company because I get frequent massages for some chronic neck and back pain (and the relaxation is great, too!). Recently while driving down the main road in our town, I saw a professionally dressed woman with a sign that offered a $39.95 one-hour massage from Massage Heights. I had never heard of this new company, had no idea it was a franchise, and yet couldn’t resist. 

While I usually feel a bit of trepidation whenever I go to a new massage therapist, I was instantly delighted with my experience at Massage Heights. There was a professional greeter at the front desk. The lobby was clean and elegant. Once I went past the lobby doors into the massage area, I would never have guessed I was in a strip mall. The surroundings were up there with top massage facilities in elegant hotels. Best of all, my masseuse was professional and did a great job. I was very pleasantly surprised.

More interesting, Massage Heights offers some unique offerings not found in competitive establishments. You can pay one-time rates that are competitive, or you can sign up as a member and get unbeatable rates on massages. For a loyal massage client like myself, that kind of deal – in a professional environment – is of value to me.

The massage business seems like a tough one to franchise. It is highly fragmented, and most massage therapists are independent businesspeople (but often with no business experience and even a disdain for the idea of generating profits). Each massage therapist has their own style, and quality is all over the map. Everything from music, cleanliness, type of massage bed, and pricing varies. Some therapists talk to you throughout the massage, sometimes sharing personal life stories that fall into the category of “too much information.” In short, you never know what you are going to get when you make an appointment for a massage, and have to hope for the best.

The founders and executive team of Massage Heights are working to change this situation, and I think they have an outstanding chance of transforming this industry. Their ambitious goals call for 1620 stores up and running by 2013, and they are signing deals with regional franchise developers. 

Founder Shane Evans originally founded the company without the intent of franchising. She saw an opportunity to provide therapeutic, non-spa facilities based on three principles that no other massage business brought under one roof: “”convenient, affordable and professional.”  

Evans quickly discovered that this model worked. “After we opened our first retreat, it was very apparent that there was a definite need, as people were coming from clear across the city in search of these core principles. Not only were people seeking out our services, but they were asking if were going to open any others and how could they get involved as partners.” 

The founders concluded that their concept was franchiseable soon after. Evans listed three factors that supported this conclusion, “First, the level of business success we had in a short period; second, the level of interest from the community not only as consumers, but as investors; and third, we had the business model evaluated by a group of franchise experts- a combination of business advisors, attorneys and franchise specific business consultants to determine viability and replication.” 

Evans offers the following advice to people who might be considering franchising as a way to build a business: “First and foremost, you must have a passion for whatever you do.  When deciding on a business, not only must you consider the probability of success, but what is going to make you happy, especially in a retail industry. Whether it’s food, clothing or massage, as an owner you either need to be able to hire the right people to run your business or run it yourself.  If you’re going to run it yourself, loving what you do is key because your passion is passed onto your staff and your customers and ultimately drives your success.”  

“Second,” Evans continued, “when considering various franchise concepts, it’s important to do your homework.  Call and visit as many franchise owners as possible and get as much of the right kind of information as possible.  If you come across an owner that says all the right things about the company, the training and support, but they tell you that they haven’t been successful, dig deeper to find out why.  Ask what their level of involvement in the business is, what kinds of marketing they do and how often they are doing it.  Are they involved in the training of new staff members at their location and what is the training period for those staff members?  What kind of people do they look for when hiring?  Many of these questions can help you determine what the owner really knows about running their business.  If they can’t answer the questions, then they may not know their business and may not be very successful.” 

Massage Heights decided to structure their franchise model with a Regional Developer/Area Developer model. Evans notes that this model is a way to quickly expand a market with a strategic partner that also provides a direct layer of support for the franchisees in a specific territory. She explains, “It’s much easier to control the customer experience and brand essence when you have a partner living in a market to inspect, communicate and support the larger group of franchisees.”

If you want to create an actual franchise for your business (after you have proven the concept so that your franchisees will succeed), then follow Evans’ path and take advantage of high-quality partners and advisors. Evans shares, “We have been very fortunate to work with some great partners. Many of the alliances we have are relationships formed thru the International Franchise Association.  I recommend that all franchisors and franchisees join and attend as many conferences and learning sessions as they can.  In addition, there are great on-line training programs and supplier sources - a wealth of information!  Also, as a franchisor, your training and operations staff is integral to the success of the system. A good training and support system will provide the right information, the right way, so that the franchise owner can execute effectively.  Committed, experienced support staff make all the difference!” 

Finally, I asked Evans to share the one or two things she wishes she had known before franchising that she knows now. 

She answered, “The franchisor/franchisee relationship is very unique in the sense of how it’s managed.  There is a tension because you want entrepreneurs in your system, but entrepreneurs are risk takers and often want to change things. Changing and evolving are not necessarily bad, and we’ve taken many suggestions and ideas from our franchisees that make our system what it is today. However, there has to be a methodical strategy in place when making changes to protect the brand, and the overall customer impression of the brand.  Entrepreneurs don’t necessarily think about how a change in their location may affect their colleagues. Like the Nike slogan, they often ‘just do it!’ Controlling that urge to do so would be simple if all of the retreats were corporate owned, but with franchise relationships, there is a fine line between dictating and managing.  Learning that early on is priceless!” 

The bottom line: You may or may not want to create an actual franchise, the way that Massage Heights is doing. Regardless, you can learn a lot from Massage Heights. First, have you proven demand for your concept? Second, do you have a business model in place that can dominate your marketplace and even transform your industry? Third, do you have systems and processes in place to assure the ongoing growth and success of your business? 

The members of The Profit Growth Club are all working towards the common goal of building a business that can run without them. Why not join us?