This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

A Franchise Veteran's Secrets to Success

NEW YORK ( TheStreet) -- Veteran franchise executive John Rotche began his career in franchising at Domino's Pizza (DPZ), where he spent many years under founder Tom Monaghan.

Domino's was sold to private equity firm Bain Capital in 1998 (it later went public), but Rotche's time in the pizza franchise kitchen was up, though he wasn't done cooking.

He left to serve as chief operations officer at Krispy Kreme Doughnuts (KKD), but left Krispy Kreme in 2002 to start DUCTZ, a single van air duct cleaning business following a severe respiratory illness of his son. In 2007, Rotche sold DUCTZ to Belfor, a property restoration company and later created the Belfor Franchise Group. Three years ago, he launched a second business, HOODZ Kitchen Exhaust Cleaning. The franchise has more than 150 locations.

Now he has put on the franchise gloves, becoming president of Title Boxing Club in May. Rotche had been consulting for retired pro-boxer Danny Campbell and now-CEO Tom Lyons when they approached him for advice on how to best execute franchise plans for their boxing workout classes, but the partners decided to bring him into the ring full time. Title Boxing Club is on pace to have 500 clubs open or in development by the end of 2012, and 1,000 clubs in the U.S. and Canada by the end of 2013.

Rotche shared his tips for finding and running a great franchise.

Who is an ideal person to be a franchisee?

Rotche: All the best franchisees are people who are used to following systems, whether it be folks from the military, police officers, firefighters, people who are process-driven. Those who don't do as well are the ones that want to just do it their own way and think they can do it better. In fact, talking to people during the discovery day process, many times I'm saying 'I don't think you will be really happy in the franchise industry.'

Very early on the franchisees are going to outgrow the franchisor in terms of knowledge because they have their life savings in the business and they are typically there morning, noon and night. At corporate, sometimes you can get a little distant from the brand or the product. The franchisees are so close to it. At the end of the day, the franchisor is really the band leader -- to catch the bad ideas and seek out the good ideas. We want to find people who are comfortable working within a process and who are also sharing ideas that they have. And they have to be okay if a franchisor chooses not to use the idea. You can't go rogue on us.

How has technology changed the franchise industry?

Rotche: It's made everything so much more transparent, which is good and bad. For example, if one Domino's Pizza goes and does something unthinkable when making a pizza and it goes viral, it can hurt a brand so quickly. Yet on the positive side, technology has reduced spending for small business owners. Whether you're using Facebook (FB) and Twitter or LinkedIn (LNKD) and different forms of social media, that's a lot more cost effective than the old days of buying newspaper inserts and direct mail campaigns.

In terms of the franchisor side, technology has brought franchised systems closer together because it's so much easier to communicate with your franchisees and for franchisees to communicate with each other.

1 of 2

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Try it NOW
Only $9.95
Try it NOW
14-Days Free
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
SYM TRADE IT LAST %CHG
AAPL $123.25 0.00%
FB $83.30 0.00%
GOOG $548.34 0.00%
TSLA $185.00 0.00%
YHOO $45.10 0.00%

Markets

DOW 17,712.66 +34.43 0.19%
S&P 500 2,061.02 +4.87 0.24%
NASDAQ 4,891.2190 +27.8570 0.57%

Partners Compare Online Brokers

Free Reports

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs