This article was first published online by Franchise Times on October 1, 2021 and subsequently published in the October 2021 print edition.
International franchise expansion continues to gain speed as we enter the last quarter of 2021, even amid the ongoing pandemic struggles. In this column and the next, hear from franchise development professional Ron Bender, who is working with multiple brands involved in diverse international franchise expansion efforts.
Ron Bender wears a number of hats. His longest standing role is as founder and principal of Future Focus Franchise Performance Consulting, a specialty franchisee recruitment consulting firm he established with partner Clay Neff in 2010. One year before the pandemic, Bender took on the role of vice president of franchising with EnviroLogik.
The EnviroLogik franchise system has been around since 1991 and provides B2B sanitizing and disinfecting services for buildings and vehicles, as well as preventative drain maintenance aimed at the reduction of water pollution and plumbing clogs. Bender was attracted to the brand mainly because of the benefits to the environment.
Extensive experience
EnviroLogik operated internationally for more than 20 years, expanding from the U.S. to Australia, New Zealand, England, Ireland, Finland, Singapore, Germany, Hong Kong, Spain and India before deciding in 2020 to make a push into Canada. Bender led the charge in the Canadian expansion, and said, “Canadians, both the people and the business community, are much more concerned about the environment than many other jurisdictions, and with that heightened interest, it was the right time.”
The international nature of the EnviroLogik brand goes deeper than just franchise expansion. In 2007, the EnviroLogik United Kingdom master franchisee acquired the entire franchise system with the strategic initiatives to secure the supply chain, develop additional products and services in the system, and to continue with international franchise development. At the time, there were four international master franchisees—Australia, the U.K., Finland and Germany—in addition to U.S. operators. Today, EnviroLogik boasts more than 13 international master franchisees across the world.
“The franchise structure of choice for EnviroLogik is the master franchise model,” said Bender. “This allows us to leverage local knowledge and connections, to quickly assimilate cultural nuances and to ensure that we don’t make inadvertent errors with respect to same, and to socialize the support and supply chain arrangements with the local partner.”
When asked about some of the considerations for international expansion that are important to the EnviroLogik franchise system, Bender said at the top of the list is the protection of the intellectual property. Understandable for a brand that utilizes proprietary equipment, chemicals and products as the main part of its offering.
Corporate and tax structuring, including the terms upon which funds can be repatriated to the franchisor, is also critical to management. Finding the right master franchise partner that agrees with the mission and vision of the EnviroLogik brand is another key requirement Bender spends time assessing with each franchise expansion opportunity.
Necessary adjustments
Adapting the EnviroLogik brand is nothing new or unusual for the franchise. Bender explained how the offering required some refocusing in India. Given the nuances of the consumer demand, the franchisor, together with its master franchisee in India, had to creatively revise the strategy around the brand’s offering (as well as collateral materials) to accentuate its products over the services. The approach was successful in positioning the brand in a market where higher value is placed on the use and provision of products over services. It also demonstrated EnviroLogik’s core value of being aware and sensitive to cultural differences that may impact its brand.
Beyond adaptations, EnviroLogik’s support for master franchisees and sub-franchisees extends to creating specific solutions for issues faced in serving their ultimate customers. To facilitate this, the brand has full-time microbiologists on staff. In one situation, Bender described how the Australian master franchisee was working with a business client experiencing a particular outflow water issue at its treatment pond, which caused the water to take on a glowing green color. Samples of the water were sent to the franchisor for assessment. Following analysis, the franchisor was able to internally develop a specific product capable of treating the outflow water.
EnviroLogik also supports its U.S. and international franchisees by providing them flexibility to maximize their network and preferences by selecting specific products and services that they believe will meet with the greatest success. This is made possible because of the expansive range of products and services that comprise the franchise system.
Such an approach is consistent with another one of EnviroLogik’s core values: “Treating every franchisee as part of the family and working for their satisfaction and success,” said Bender. Certain master franchisees, for example, do not provide the sanitization and disinfection services that are part of the core offerings of the brand. Interestingly, some master franchisees have made a significant success of their franchised business by marketing and distributing the brand’s Urine Free product and services. This product removes the odor and its chemical properties, consuming the uric acid.
The company takes a tailored, patient approach with every expansion. In Singapore, the master franchisee was so well connected that the expansion was rapid and smooth. In the U.K., it took some time to gain traction, but once established, the master franchisee was able to secure contracts with a number of global businesses. EnviroLogik plans to build through North and Central America over the next three to five years, then South America and Africa.