Multi-Unit Franchisee Magazine Issue III, 2011 | Page 58

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An offer can only be made by us after receipt of the Franchise Disclosure Document.

56

Multi-Unit Franchisee Is s ue III, 2011

Jack in the Box locations to do the same.
“That’s the kind of community involvement I would like to have with all of my
stores,” says Sunita. “Getting involved in
the community lets them know about us
and helps us to increase sales. I believe
strongly in getting involved.”
There are opportunities for the Sagars
to share more than good ideas. Their
operation is large enough to warrant a
full-time financial staff to deal with all
three brand operations. Accounts receivable, accounts payable, human resources,
customer service, and other back-office
functions are all handled out of their
Fremont, Calif., headquarters.
Management training comes out of
Fremont as well, another synergy offered
by operating several concepts. Cross-training managers ensures that the businesses
always have backup in place. It also helps
to retain employees by grooming them
to move up as opportunities arise. “We
do look into promotion or opportunity
for growth within the organization first,”
says Sunita.
Cross-training is an important part
of Reimer’s hotel strategy, too. All three
of his hotels, which he operates in partnership with his brother, are located in
the same block of downtown Grand
Junction, Colo. Employees are trained
on all the computer systems so that, if
one hotel is busier, employees can be
shifted from another property to help
handle the extra traffic. Cross-training
also makes it easier to fill in for employees who are sick or on vacation. Plus,
there’s one administrative office for all
three hotels, so they can share maintenance and sales staff when necessary.
“We’ve seen a lot of cost savings in that
respect,” says Reimer.
Blass figured that, after adding Miracle Method, he could hire a full-time
bookkeeper for all his companies, but
that didn’t work out: he decided that
he didn’t want to risk putting all his
financial information into the hands of
one person. “Now, I use my accountant’s
office for the construction company’s
books, and the next step is to meet with
the accountant to hand over Miracle
Method’s books,” he says. “Actually,

they can do it cheaper, and if something
were to go awry, they’re licensed, and
they have something to lose if I had to
go after them.”
However, Blass does have a single administrative office that serves as a base
for all his companies, including the remodeling business and Miracle Method.
He’s in the process of opening a combination showroom and shop for Miracle
Method, and he maintains another shop
for Blass Residential Services. Eventually,
he’d like to combine them all. “The goal
is to someday, hopefully in the not-toodistant future, combine into one facility
and operate under one roof,” he says.
“That would offer a lot of leverage and
synergy to capitalize on.”
His centralized administrative office
allows Blass to share costs across the
businesses, basics such as sharing one
photocopier, costs on office supplies,
and so on. “Also, I have some ability to
shift costs to maximize my tax strategy,”
he says. “And Miracle Method, as a franchisor with 125 offices, has negotiated
some trade discounts with major suppliers. Once I have that relationship, I have
the option of asking for the discount for
my construction company.”
Another way Blass has found to double
up is with payroll costs. All of his employees are technically on the construction
company’s payroll. Miracle Method then
leases its employees from Blass Construction. That way, he has to pay for only one
payroll package. “I do the same thing with
vehicles,” he says.
Next up: advertising. Blass is exploring
ways to combine advertising for Miracle
Method and Blass Residential. “We’re
looking at paying a rate for one company
to get coverage for both,” he says.
Complement!

These diversified franchisees have some
words of caution for entrepreneurs considering similar moves. Choosing the
right franchise is paramount. “Number
one, you have to understand that the operative words are complementary, strategic,” says Blass. “So you stick with what
you know, and make sure that whatever
franchise you’re looking at doing, it will