Franchise Update Magazine Issue I, 2016 | Page 44

Female Founders In 1998, they opened their first store. For the first few years they owned and operated it themselves and opened a second location, also in Las Vegas. When they decided to open a third location, in Phoenix, she inadvertently discovered one of the benefits of expanding through franchising, versus opening corporate stores and hiring managers to run them. “We had hired a manager to take care of the Phoenix store. I made a surprise visit one day and found the entire staff watching ‘Shrek’ on the manager’s computer in a back office,” she says. “That’s when I knew I needed a system in place that would ensure effective and successful operations.” She had been aware of franchising, but it wasn’t until after attending a Franchise Expo and speaking with several consultants that she fully embraced the franchise business model. Nothing Bundt Cakes began franchising in 2006. Shwetz developed the sales process, wrote the manuals, and created the system for opening and operating the bakery locations. Today, with more than 150 locations doing more than $100 million in revenue, she remains an integral part of the brand, not only through her leadership and founder’s vision, but also by assisting in sales, program development, franchisee support, franchisee relations, and strategic planning. “The franchising model is so effective,” she says. “It’s not just a way to grow a successful business, it also provides opportunities for people to realize their own dreams through owning and operating their own franchise location.” GETTING STARTED What inspired you to start your business? My friend and partner, Dena Tripp, brought a Bundt cake to my house for dinner one night. I had a great creamcheese-and-butter frosting recipe I had shared with her, so I asked her why she didn’t frost the cake with my frosting. She said she couldn’t figure out how to frost a Bundt cake and make it look nice, considering the shape and the peaks and valleys created by the Bundt pan. We started to discuss how this might be done, that it would be fun to figure out how to fill the middle, and the idea was born! Neither 42 of us could let it go. So we got together, wrote a business plan, and worked out of my kitchen for a year creating a quality, homemade-tasting product that would become the cornerstone of our business. What is your background? I come from a middle-class family. My dad was a salesman for U.S. Steel and my mom stayed at home. Both were well-educated and very hard-working. My grandfather owned his business and had 31 patents. I remember touring his business with him and watching him interact with his employees, make decisions on the spot, direct and lead, and then clean the bathroom. I graduated from the University of Washington in Seattle with a degree in psychology, worked in a multi-level marketing company, worked for my insurance agent, and was a medical transcriptionist. My goal in these positions was to supplement family income, yet still be able to pick my kids up from school. I was a mom first. How did it prepare you for starting your business? Growing up in my family, we all had to share in the work of maintaining our household. My job was yard work and weeding every Saturday morning before I could play with my friends. I clearly remember the moment I understood that I could put my nose to the grindstone and finish the job as quickly as possible or I could drag it out all day. This task taught me the value of do it now and you have more time for fun! I was also very close to my grandfather. He spent a lot of time with me as a mentor and shared with me some of his trials and tribulations, and he walked his talk. I admired him very much and was apparently soaking up his work ethic and entrepreneurial spirit as I grew. What’s the best and worst advice you got when starting out? Best: Put the time into understanding your brand as this is your message to the consumer; and, if you need to, re-brand your company before opening your first franchise. Worst: Don’t take the risk of opening a singleproduct, niche concept. It won’t work. How did you get started in franchising? We initially intended to grow cor- porately. We were headquartered in Las Vegas with two locations. We decided to open our third location in Phoenix as it was a community similar to Las Vegas, yet far enough away for us to begin to understand how to support a remote location. On a surprise visit we found the entire staff in the back of the bakery watching “Shrek” on the manager’s computer! Needless to say, we let the manager go, but we were left in a quandary. Many of our guests asked if we had considered franchising, so we decided to investigate this business model further by attending the Franchise Expo held at that time in Washington, D.C. At this show, we walked the floor, listened to every breakout session we could possibly attend, and met with two franchise consulting companies to better understand the process. Why did you choose franchising? After investigating the business model and understanding that we would be growing with people who were as invested in our concept as we were, it made great sense. Also, understanding there was an entire franchising community from which to draw [