Fargo INC! August 2016 | Page 74

PROFILE OFFICE NEXT contacting people, and establishing that chamber-of-commerce relationship in each city, which I think is crucial to small business." There are, of course, drawbacks to the franchise model and one in particular that Stockeland says she still struggles with. "You're giving up your brand," she says. "You're putting it in the hands of other people and you have a very small window. It's like hiring a team. You have three interviews maybe—for a total of an hour and a half— and you have to figure out what that person's work ethic is, what their mindset is. It's the same thing with franchising. It's a longer process obviously, but it's still very limited. "You're giving them your brand that you built and saying, 'Here you go. Make this successful.' Having good systems and processes in place really helps with that. Good guidelines and parameters of, 'Here's what you can do. Here's what you can't do.'" And there are additional hurdles that newer franchises face, Stockeland explains. "With an emerging franchise, the difficulty is that those who want to franchise with you are most likely more entrepreneurial," she says. "If we had 100 units, that franchisee would be a different type of business owner. They're very process-driven. But those types of franchisees aren't going to buy into a new brand. "So you're bringing in people who have a lot MODE University 72 AUGUST 2016 "To us, culture is making sure our employees are taken care of." of ideas, and that's why they'll come on at the beginning. But then you also have the problem of a lot of ideas. It's a balancing act." NEVER COMPROMISE Stockeland says the appeal of her stores is simple: people are tired of choosing between shopping in a warehouse or paying full price. "What makes MODE unique is the small boutique atmosphere," she says. "When you have outlet or off-price, it's always a big-box like T.J. Maxx or Marshalls. And we said, 'Why can't we still have a beautiful environment and comfortable place to shop but then have the deals inside of it?' The idea is to make women feel like they have a comfortable and organized place to shop for deals." MODE's $40-$50 denim and $15-$30 tops—marked down from $90-$250 and $30-$120, respectively—resonate with Midwest shoppers, especially, who she says have a unique appreciation for a good deal and fierce brand fidelity. "Consumers in the Midwest are very valuedriven," says Stockeland, who is currently All MODE franchisee training is done in-house at the company's flagship Fargo store and even has its own postsecondary name: MODE University. Stockeland says MODE U is the culmination of years of planning, remodeling and space creation. "When we have a new store owner, they come to Fargo for a week," she says. "They train mostly out in the store, but they also come back and do book work. We set up their computers and all of their focusing MODE's expansion on the I-29 corridor, from North Dakota all the way down to Texas. "They like price and they're very loyal consumers. To build a retail brand with people who say, 'I love shopping at MODE. This is where I'll always shop.' There's something to that." Stockeland senses that there's more to it, though. She says that as a number of bigname brands have begun to manufacture products specifically for their outlet stores, consumers have caught on. "We always like to say that we are a true outlet," she says. "I think that's something that customers have become very disenchanted with is the idea of outlets. Because you go to a big outlet mall, and we all know that they produce now for those stores. It's different than how they started. But what you find (at MODE) was meant for a full-price store and is deeply discounted. "Coach is one that our customers always complain to me about. When they used to go to Coach outlets, they were buying things that were from a Coach store. And now they produce a lot for those stores, and the production is going to be a little different. They're not getting something that was systems and then do whiteboard sessions. Eide Bailly also comes in and teaches them different accounting principles. "It was kind of a dream I had because we used to just bring them into this space, and they would sit at a table while we would quietly work around them. I wanted a place where they could come and go back and forth between the store and the desks."