Strength in Numbers
by the Reeves Journal Staff
October 27, 2009
Groups and franchises offer contractors security and more
In these days of market crashes, shaky economies, “stimulus packages” and a recession the analysts say is surpassed only by the Great Depression of the 1930s in severity, some contractors are finding it a little more challenging to go it alone. Many are looking to find strength in numbers. Not only can being associated with like-minded individuals be of great moral support during hard times, many of the service groups and franchise operations out there provide affiliated contractors with everything from instant brand recognition to tips and tricks for operating the day-to-day aspects of a contracting business effectively.
The Reeves Journal Staff, intrepid gang of journalistas they are, recently descended like a plague of locusts on the universe of contractor service groups and franchisers to compile this quick start guide to some of the major players out there.
So let’s do this:
Ace Duraflo
Derek Cherry, business development
Why and when did this company start?
ACE DuraFlo was founded in the 1990s and began franchising in 2001.
How many franchisees are there and who is the “average” franchise owner?
There are 55 franchisees in North America and Europe. Ideal franchisee candidates are plumbing contractors and leak detectors.
What sets this franchise opportunity apart from others?
ACE’s ePIPE Advantage Program is designed to provide a “Local Competitive Edge” through the six elements of our Advantage program: Equipment; Training; Marketing; Field Support; Communication; and, Patent Protected Technology.
Why should a contractor consider this?
A contractor should add ePIPE pipe restoration to their business to create additional revenue opportunities and help differentiate their company in the market by offering a service that is superior to competitors. ACE has an affinity program with BuyMax (Benjamin Franklin Plumbing and Plumbers Success International), The Dwyer Group (Mr. Rooter) and American Leak Detection.
Where can someone learn more?
Contact Derek Cherry at dcherry@aceduraflo.com, (888) 775-0220 and request a free information kit or visit the Web site. General inquiries should be directed to (888) 775-0220.
American Leak Detection
Judy Howard, director of franchise relations
Why and when did this company start?
Richard (Dick) Rennick founded American Leak Detection in 1974. Rennick created equipment and techniques to locate leaks non-invasively instead of bashing holes in walls or digging up floors. Today, ALD has leak specialists located throughout the United States and Canada, as well as six other countries. Additionally, ALD not only locates leaks non-invasively, but it has tools and techniques to remediate those leaks as well. For the past 8 years, ALD has been named No. 1 in its category by Entrepreneur Magazine and, in 2008, was identified by The Wall Street Journal as one of the Top 25 performing franchises systems. In 2009, ALD was named one of the Top 100 global franchises by Franchise Direct.
How many franchisees are there and who is the “average” franchisee?
ALD has more than 120 franchisees and 4 corporate-owned properties. Our franchisees have a variety of backgrounds. Many, of course, are contractors, plumbers, pool professionals and handymen. Others are former bankers, engineers, accountants and hospitality executives. What they all have in common is an entrepreneurial desire to own their leak detection business and be strong sales, marketing and people leaders.
What sets this group apart from others?
Because of ALD’s brand recognition, new franchisees start out on day one as the most sought-after and trusted name in the leak detection industry. It is backed by a well-known logo, quality brand attributes and a reputation for dependable service.
Why should a contractor consider this?
The ALD concept, including its proprietary methods, techniques and equipment, is proven and affordable. Contractors don’t need plumbing experience because we provide them with the training and equipment they need to join our team and become an “Original Leak Specialist.” Additional benefits include a time-tested system to begin your business, initial as well as ongoing training and support, an Internet customer lead generation program, national brand recognition, marketing and public relations assistance and more.
Where can someone learn more?
We would be pleased to talk with candidates interested in our unique concept. We may be reached at franchise@americanleakdetection.com and at (800) 755-6697. Additional information is also available on our Web site .
Benjamin Franklin Plumbing
Tab Hunter, president of franchise operations
Why and when did this company start?
Benjamin Franklin Plumbing, a part of Clockwork Home Services, was founded in 2001.
How many franchisees are there and who is the “average” franchise owner?
As of Jun. 30, 2009, there were 249 Benjamin Franklin Plumbing franchise territories. The average owner of a Benjamin Franklin Plumbing franchise is an independent plumber who wants to grow his/her business and dominate the market.
What sets this group apart from others?
Benjamin Franklin Plumbing is the nation’s only plumbing franchise focused solely on residential service and replacement.
Why should a contractor consider this?
Benjamin Franklin Plumbing is the nation’s first plumbing service company to promise: “If there's any delay, it’s you we pay!” Benjamin Franklin Plumbing provides the keys to operational excellence that allow franchise owners to fulfill this promise of on-time service or it’s free through our proven marketing and operating systems and with ongoing support to help your company.
Where can someone learn more?
Construction Contractors’ Alliance
Matt Erickson, chairman
Why does this group exist?
Formed in 1998, the Construction Contractors’ Alliance represents PHCC’s plumbing and mechanical new construction contractors specializing in commercial, residential, institutional and industrial work. CCA’s mission statement is, “To enhance the profitability and professionalism of the CCA members’ businesses through education and networking opportunities,” and the group accomplishes that via member benefits including two meetings a year, seminars for middle managers, Webinars, and more.
How many members are there and who is the “average” member?
CCA typically has a membership of 25 business owners. With the addition of middle manager meetings, the value of membership is reaching an additional layer of company management. CCA members’ business profiles are diverse. They include residential, commercial, industrial and institutional type of work. Sales volume ranges between $2- and $40 million.
What sets it apart?
CCA strives to be a progressive group that is one step ahead in the business world. Members are interested in knowing about construction and business management trends as early as possible so that they can be prepared and make any necessary adjustments in their businesses. New construction contractors are different than other contractors. CCA’s strength is that it provides a forum for members to talk with other contractors who do the same type of work and face the same kinds of challenges. Our educational seminars also are targeted specifically toward the new construction plumbing and mechanical contractor.
Why should a contractor consider joining?
Contractors should consider CCA membership if they have an interest in having access to education that is targeted specifically toward their type of business. Also, to learn from some of the most progressive new construction contractors in the U.S. by sharing ideas, including what works and what doesn’t work.
Where can someone learn more?
Mr. Rooter Corp.
Mary Kennedy Thompson, president
Why and when did this company start?
Mr. Rooter was established in 1970 and began franchising in 1974.
How many franchisees are there and who is the “average” franchise owner?
Mr. Rooter has approximately 275 franchisees in North America. The average franchisee was once a plumber or service technician who now owns a Mr. Rooter franchise, managing a team of technicians.
What sets this group apart from others?
Mr. Rooter plumbers follow a professional system, treating customers with courtesy. For example, our service professionals put on shoe covers before going inside homes and businesses to protect and respect a customer’s property.
Why should a contractor consider this?
Mr. Rooter offers an established business plan for its franchisees. The corporate office provides ongoing support through regional, national and international trainings, meetings and conferences. Franchisees also have a franchise consultant who coaches them in different aspects of their business along with a valuable group of experienced franchise owners who give advice, share ideas and tell their success stories.
Where can someone learn more?
Mr. Waterheater
Jeff Young, franchising director
Why and when did this company start?
Two former Sears employees started Mr. Waterheater in Pittsburgh in 1981. The company began franchising its operations two years ago.
How many franchisees are there and who is the “average” franchise owner?
The company has six franchises located from Oregon to Connecticut with number six opening in Denver last month. Relatively new to franchising, Mr. Waterheater has most markets available to interested franchise candidates.
What sets this group apart from others?
Water heater installation is a unique niche of the plumbing industry, and Mr. Waterheater can be “bolted on” to an existing business of any size. Mr. Waterheater’s business model is very similar to the emergency response sector where customers have an immediate need and the business that is top of mind, responds quickly, and has reasonable pricing wins. With no national franchise competitors, the goal is to expand Mr. Waterheater to all markets in the United States.
Why should a contractor consider this?
The Mr. Waterheater business model is a scalable, “plug and play” business that provides an existing Web site, proven marketing, group buying, advertising, training and business software. The Mr. Waterheater franchise operates from a combined warehouse and office facility located in an industrial park or other non-retail location. A franchise territory of 50,000 to 100,000 households is awarded but can be customized for the market area.
Where can someone learn more?
Call John Sembower at (412) 823-6000, or visit the Web site.
Nexstar Network
Greg Niemi, president and CEO
Why does this group exist?
Nexstar was founded in 1992 by a group of independent contractors. By following proven methods and systems, you, too, can have a profitable well-run business today. If you’re looking to simply get results, Nexstar delivers comprehensive and surefire systems to electrical, plumbing, heating and air conditioning service providers across the continent.
How many members are there and who is the “average” member?
We are independent, working shops that provide plumbing, heating and air-conditioning, and electrical services led by a staff that’s also experienced in business. We are small in the sense that we focus only on members, know them on a first-name basis and maintain an exceptionally lean core staff. But we are also large when you consider that, taken together, Nexstar members populate 45 states, Canada, Australia, Cayman Islands and Guam with more than 7,000 people generating more than $1 billion in total business annually.
What sets this group apart from others?
Nexstar knows what works and what doesn’t in this industry. Our coaches and trainers have been there. The comprehensive training, information and coaching we provide is proven because it comes from shops much like yours that are doing what you’re doing—but doing it better, faster and smarter.
Why should a contractor consider joining?
An affiliation of independent service providers, Nexstar’s only purpose is to help each other succeed. We were founded on the slogan, “Success through education and sharing” a founding principle that guides us today and every day. As a member of Nexstar, you get useful tools and proven process, not buckets of theory. Because Nexstar is member-owned, all fees stay within the organization.
Where can someone learn more?
Plumbers Success International
Terry Nicholson, president
Why does this group exist?
Part of the Success Group International family, PSI was formed in 1999 to provide independent plumbing contractors with management direction from the world’s greatest plumbers, proven turnkey marketing campaigns, “900-pound gorilla” buying power, and training that duplicates the performance of the top frontline superstars in the industry.
How many members are there and who is the “average” member?
Today, there are nearly 300 plumbing contractors in PSI with more joining at every PSI Summit. The plumbing contractors that join PSI must be driven to succeed. What sets this group apart from others? Your success is guaranteed when you become a member. Only Plumbers’ Success International provides the systems and knowledge that guarantee success. This success guarantee is something any contractor can learn more about by attending a Profit Day.
Why should a contractor consider joining?
Whether you want to turn around a struggling company or expand an already successful one, PSI has the tools, systems, and knowledge to help you make more money, gain more time with your family, and give you increased enjoyment of a stress-free life. You gain a lifetime of knowledge from the best operators in the world in an instant. PSI is instant success for plumbers…guaranteed.
Where can someone learn more?
Quality Service Contractors
Charlie Wallace, executive director
Why does this group exist?
Established in 1994 by a group of PHCC service and repair contractors, QSC functions as a self-supporting business unit of the Plumbing-Heating-Cooling-Contractors National Association. The QSC mission statement is, “to provide the quality service contractor with training, technology, and professional development, resulting in superior client service and satisfaction.” To these ends the group enhances both the industry’s and members’ reputations by originating and delivering timely and lively professional and “Power Tools,” including a complete maintenance agreement program with implementation strategies; a 24/7 resource Web site; a marketing program; QSC Business Management Coaches to help with reviewing and improving a members’ business; online “Discussion Lists”; the QSC BOSS Program—a 2-day basic-business training class; and more.
How many members are there and who is the “average” member?
QSC currently has about 235 members on the rolls and the average member is a company employing seven or eight techs. But the companies range from one-tech companies up to 125-tech operations.
What sets this group apart from others?
QSC is non-profit so all the funding that is generated stays with QSC in order to produce Power Tools and meaningful education for the members. QSC is open to all contractors and does not have territories for its members.
Why should a contractor consider joining?
Whether they are a long-time business owner or just starting a business, QSC will provide the opportunity and necessary tools on the essentials of running their business more profitably, serving their clients more personally, enhancing their business image and meeting the challenges of an ever-changing world.
Where can you learn more?
Rooterman
Matthew Miller, vice president of business development
Why and when did this company start?
1982.
How many franchisees are there and who is the “average” franchisee?
Currently there are 113 franchisees. The average franchisee is someone who wants to go into business for himself/herself. Some franchisees have experience in plumbing and drain cleaning, and some are new to the industry. All franchisees offer drain cleaning services, and depending on the location, other services, such as plumbing, may be offered as well.
What sets this group apart from others?
Instead of franchisees paying a royalty based on a percentage of their sales, Rooter-Man franchisees pay a flat, monthly fee based on the population of their exclusive franchise territory.
Why should a contractor consider this?
Rooter-Man is a successful and proven system built around the exclusive use of our U.S. Registered Service Marks in your local area. With your license you will have access to the management skills and know how of professionals who have had years of experience in the sewer and drain cleaning industry. New Rooter-Man licensees take a complete training program devoted to advanced techniques in both practical and management training. Another important benefit is a complete local advertising plan for your exclusive use. Your local advertising, complete truck decals, uniform monograms, printing proofs for work orders, letterheads, envelopes, business cards and other things have been developed to make your local marketing campaign all blend together for the maximum effect.
Where can someone learn more?
Roto-Rooter
Mike Higgins, director of franchise development
Why and when did this company start?
The [original] Roto-Rooter machine, which is similar to the ones in use today, was invented in 1935 by Samuel Blanc. In some respects he invented the industry as we know it today. Before that it was very labor-intensive and required locating the pipe, digging, replacing the landscape and all those types of things. Roto-Rooter started franchising in 1935, too, with the first one in Waterloo, Iowa.
How many franchisees are there and who is the “average” franchisee?
There are 541 independent Roto-Rooter franchises in the U.S. and Canada as well as our overseas/international franchises. Roto-Rooter also has 116 company-owned locations (65 independent contractor territories and 51 company-owned and operated branches). We cover about 94 percent of the United States with franchised and company-owned operations.
What sets this group apart from others?
The brand. We have, over 70-odd years, created the most recognized brand in the industry.
Why should a contractor consider this?
Two reasons, the first being “the brand” again. For example, the “Mike Higgins Plumbing Co.” wouldn’t have the gravitas that a Roto-Rooter would have. The second reason is that our franchise agreement is very franchisee-friendly.
Where can someone learn more?
Service Roundtable
Matt Michel, CEO
Why and when did this group get started?
Formed in 2002 by a group of contractors who thought a business alliance should be affordable for any contractor who wants to improve his or her business.
How many members are there and who is the “average” member?
We have more than 2,500 users. While the average member has sales of $1.75 million, we range from single truck operators to contractors with over 100 trucks. Our members are found in all 50 states, most Canadian provinces, Australia, Europe, and several island nations. Contractors in the Service Roundtable are committed to continuous improvement for their business and others in the group.
What sets this group apart from others?
Affordability. The Service Roundtable is only $50 a month and doesn’t require a long-term contract. Yet, our members who have been in other groups will tell you they receive just much for their paltry investment in the Service Roundtable as they got from groups costing thousands more.
Why should a contractor consider joining?
A contractor wants a steady stream of best practice ideas from other contractors, all of the business tools necessary to market and manage a contracting company, vendor savings that can easily exceed the cost of membership, and a means of interacting with like-minded contractors from around the world.
Where can someone learn more?
Union-Affiliated Contractors
Robert Melko, Chairman
Why does this group exist?
Launched in 1999, UAC is the first enhanced service group within the PHCC. Its membership is very diverse across the U.S., with significant membership in the Midwest. The group’s mission statement is “To establish, maintain and nurture a working relationship between the United Association employing segment of PHCC-National Association and the United Association.”
How many members are there and who is the “average” member?
UAC members are union signatory contractors. Size varies from one-person residential shops to the large commercial and industrial shops. There currently are 280 members and 35 trade associates.
What sets this group apart?
The UAC is strictly for union signatory contractors and addresses the specific needs of that group. Examples of recent UAC activities include teaming with the UA to create the National Residential Plumbing Agreement, a program that allows contractors to compete in this lucrative market. Working together, the UAC and UA established the Plumbing Industry Council to promote expanding relationships between UA locals and contractors’ associations.
Why should a contractor join?
The UAC provides many membership benefits, including a unified voice for the signatory contractors within PHCC to make sure unique issues are addressed and interests represented, And the opportunity to meet with UA leadership on a regular basis to discuss the views of the PHCC signatory contractors. Any union signatory contractor with a desire to improve his or her business, as well as have a greater voice with the UA, should be a member of UAC.
Where can you learn more?
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