Top Businesses You Can Manage in your Pajamas
June 25, 2007 by Sean Kelly
Filed under Business
(FranchisePick.Com) Other than Hugh Hefner, it’s tough to name successful business owners able to effectively operate multiple businesses in their pajamas. But, according to an excellent report published today by the Wall Street Journal’s Raymund Flandez and Gwendolyn Bounds, technology is changing that. Progressive franchise companies have harnessed new technologies to enable their franchisees to effectively operate multiple locations from almost anywhere (wearing almost anything).
The franchising world is letting loose. Gone are the days of one owner being chained behind the counter of a single store day in, day out. Today, there are absentee owners who oversee their operations from laptops and Treos, and owners who maintain dual careers or run multiple franchises. At Hollywood Tanning Systems Inc., more than half of the 330 franchise owners have another job…
Raymund Flandez interviewed Hollywood Tans franchise owner Bob McQuillen on how technology enables him to manage his tanning salons a couple of states away:
Bob McQuillan runs a tight ship at his Hollywood Tans franchise in Arlington, Va. He knows precisely when workers clock in and out, who each of his daily customers are and which employees are selling what products, at regular price, or discount. But there’s a twist: He’s doing all this micromanaging from home — 133 miles away in Mullica Hill, N.J….
While a manager handles the tanning salon’s day-to-day affairs, he pulls up data from afar by computer. A fingerprint scanner monitors workers’ arrivals and departures, while intricate software tallies sales data and pricing, almost in real time. “I’m down there once every three months,” he says.
In fact, McQuillen was so impressed by how Hollywood Tans facilitated remote ownership that he became the director of franchise development for the company. The article also featured another enterprising franchisor who has been featured on Franchise Pick: 7 Valleys Custom Blends. The engineering and tech backgrounds of founder Mark Tucci and his brother Chris enabled the small bulk tobacco shop franchise company to be early and effective adopters of the latest tech tools.
Likewise, Mark Tucci, 46, leads by example for his newly franchised company, Custom Blends Franchise Services, a seller of roll-your-own tobacco supplies based in York, Pa. Mr. Tucci lives in Hilton Head, S.C., where he keeps track of sales at his own store in York, often via his Treo 700w smartphone, and allows his two franchisees to also oversee their businesses from home. He says franchisers that require owners to be physically present in their stores “don’t put enough faith” in their owners’ abilities. “It assumes the franchisee doesn’t know how to remotely manage or hire effective managers who can manage in their place,” Mr. Tucci says.
Other companies profiled in the article include the Sports Clips franchise, the Decor & You franchise, the Postnet franchise, the Snap Fitness franchise, and the Cold Stone Creamery franchise (now Kahala-Cold Stone).
SEE THE VIDEO HERE: How Hollywood Tans Uses Technology to Manage Remotely
READ THE ARTICLE HERE: Why Running a Franchise Is Easier Than Ever
COMMENTS WELCOME. INSIGHTS APPRECIATED.
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Also visit:
FranBest.com: The relentless search for the best in franchising.
TopNewFranchises.Com: America’s voting for the next franchise success story.
FREE FRANCHISE GUIDE: IdeaFarm’s Best Undiscovered Franchises
Inside 7 Valleys Custom Blends (blog): Unique “Roll Your Own” tobacco shop franchise
Inside Hollywood Tans (blog) An amazing franchise opportunity that can be run remotely – without leaving your career (unless you want to)
I am in for franchising and the issue of convenience of distant managing has always been of my concern. I think it’s rather difficult to choose the right and effective managers and watch them working remotely. Thanks for the article all the same, I think I’ll make use of it.
Bob McQuillen is corporate exec with Hollywood Tans. He may own a franchise, but his bread and butter is with the HT headquaters only a few miles from his home. The computer systen Hollywood Tans uses is available to any tanning salon, it is not their product. It’s called Helios. I think HT is using the Centrix version of Helios. Fom what I read on this site, I think HT must be a paying sponsor or Sean is an employee of HT. Constant praise for a company that misleads people in to buying a franchise in a dead industry.
And here is some proof, an email from HT to it’s franchisee about back money owed to HT. If the franchisee had the money, they’d pay it. It’s quite apparent they are not profitable.
—–Original Message—–
From: Hollywood Tans
To: Hollywoodtans Marketing
Sent: Fri, 29 Feb 2008 2:02 pm
Subject: Letter from J.J. Sorrenti
February 29, 2008
Dear Hollywood Tans Franchisee:
We are fast-approaching our most productive season and we’re putting the final touches on new marketing materials (including new television commercials, print ads, in-store graphics, and more) that we believe will help drive new customers into the salons. All of us are truly excited by what we’ve seen, and we’re sure when you see the information at the upcoming market materials, that you will too.
Unfortunately, because of the staggering size of accounts receivable from franchisees (including royalties, marketing invoices, rents, and equipment payments), we’re not in a position to leverage the new marketing materials. The fact is that certain franchisees owe us nearly $10 million, most of which is past due! And, without that cash in hand, we will not be in a position to market at the level we believe is necessary for a successful—and we think potentially very successful—spring and summer busy season. That will hurt all of us.
The current accounts receivable situation from our franchisees is simply unacceptable, and we are taking action immediately so that we will have the necessary cash to take advantage of our season. Hollywood Tans (and our franchisees who are meeting their obligations with the company) should not and will not allow some franchisees to freeload on our marketing investments. Rest assured, our company is not in any kind of financial jeopardy. Rather, we are fed-up with franchisees who are not paying their obligations to us.
Consequently, please be advised that franchisees that owe past-due amounts to the company must pay the amounts owed to us immediately. We understand that you may not have the cash to do so. If your account is delinquent and you don’t have the cash to pay us immediately, you have one of several options:
1. You may need to meet with your banker to get a short-term loan;
2. You may need to use personal or corporate credit cards to pay your balance due;
3. You may need to contact the third-party lender whose contact information is included with this letter, who may be able to help you with an alternate source of immediate cash; or
4. You may need to use other sources of cash (assets that can be sold or others who may be willing to provide loans or cash).
If your account is past due and we do not receive immediate payment, we will begin to take action. These actions will include:
1. Effective March 1, 2008, franchisees with past due accounts will no longer be able to take advantage of the promotions we offer in our wholesale business (such as $1 off each bottle of lotion purchased, etc.). Franchisees with past due balances will pay full wholesale price for any items purchased;
2. Report your past due amount to the credit bureaus;
3. Turn your account over to a collection agency;
4. Terminate your franchise agreement.
We will take these actions with regret, but also with the confidence that successful franchise systems simply do not permit their accounts receivable to increase in the way that we have.
Finally, as a gesture of goodwill, as a one-time offer, every franchisee whose November, December and January marketing invoices are paid in full by March 7, 2008 (including those whose marketing invoices have already been paid), will receive a $500 credit on his or her your account to be used toward future advertising invoices. Please note that we have no obligation to provide this credit, since the amounts that were billed to you were already spent on marketing.
For those of you with past due accounts, this is a very serious matter. If you have past due amounts, you should consider this as your final warning. If we do not receive payment of your past due amounts, you are putting your credit record and, most importantly, your franchise business at risk.
Sincerely,
J.J. Sorrenti
CEO
Hollywood Tans, LLC
11 Enterprise Court
Sewell, NJ 08080
856.716.2150 T
856.716.2151 F
Fom what I read on this site, I think HT must be a paying sponsor or Sean is an employee of HT. Constant praise for a company that misleads people in to buying a franchise in a dead industry.
I love the conspiracy theorists who immediately assume anyone who doesn’t share their view must be on the take.
My story is a link to a WSJ and CNBC story. I suppose Raymund Flandez and the Wall Street Journal are on the HT payroll? As are CNBC and the shill HT franchise owner?
I’ve clearly said I did some consulting with the old owners, and had no contact with the new management. I had a good impression of them, including Bob McQuillen. JJ Sorrenti wasn’t there when I had contact with them.
How is this memo a damning indictment of a troubled franchisor? It seems to me that it’s the new owners trying to clean up a system that previously allowed franchisees to not pay their bills. It’s a lot more accomodating approach than many I’ve seen. I’m sure the franchise agreement allows them to be much tougher, as these franchisees must clearly be in default of their agreements.
Sorrenti states that franchisees owe Hollywood Tans $10 Million for services and equipment they received, and royalties on, millions of dollars in revenue that the franchisees collected.
How does being owed $10 million reflect poorly on the franchisor, except that they’ve been too lax in collecting from deadbeat franchisees? What am I missing?
PS If I were on the HT payroll, how long do you think your comment and Charlie’s rants would appear? I’ve consulted with hundreds of franchise companies and don’t work with ones I think are not fair to their franchisees. Consider thinking before making accusations.
I said the franchisees are in trouble. If they had the money they would have paid it. HT still markets and sells franchises like they will be a major profit center. They will not. The tanning industry is DEAD. Venuto got out because he knew this was coming. The big question is, does his pizza taste as bad as his tanning booths rattle?