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Tuesday, May 24, 2016
COLOR GLO: FRANCHISE SUCCESS WITH A FAMILY FOCUS
Please click here for more information on Color Glo International
By Jeff Johnson and Geri True
The words “franchise” and “family” are often fairly incompatible. Long hours “minding the store,” the need to choose between time spent running a business and running kids to soccer practice, or the discrepancy between earning what was hoped for from a franchise investment and what is actually left to support the family; all of these are scenarios too common in franchising. The Color Glo franchise was formed with the importance of family at its core. It has morphed from a small family business into an international community, enabling its franchisees to live prosperous, balanced lives…..and to still make it to soccer practice.
Founded by Everett Smith in 1975, Color Glo originated as “Chem Glass,” a company specializing in the repair of automotive glass. While previously a Vice President at Alcoa, Smith moved his family from Boston to Minneapolis, Minnesota. What began as a corporate move led to the selection of Minneapolis for the Color Glo headquarters, and a business journey spanning the globe and several generations.
Everett’s sons Gary and Scott are now at the helm of the company, with Gary overseeing domestic franchises, and Scott managing the international side of the business. The third generation of Smiths is represented by granddaughter Mandi Brandon, who is the head of marketing for the company, and Matthew Smith, a franchisee.
When asked about their “secret to success,” Scott Smith shares that a key thread weaving through the generations has been “fundamental family values.” He further explains that Color Glo is built upon a commitment to “treating others with respect, maintaining a good quality of life, and making money without sacrificing flexibility.” Smith goes on to emphasize how this philosophy “lends itself to a family business.” Indeed, there are many two- and three-generation businesses built within the system, including varying combinations of grandparents, fathers, mothers, sons, daughters, and siblings.
Soon after acquiring Chem Glass, Everett Smith became aware of additional needs within the realm of auto repair, and (with the help of chemist Einar Birkelo) expanded into the refurbishing of vinyl upholstery. This led to further developments, ultimately including the restoration and repair of cloth, leather, and hard plastic in the automotive, marine, and residential markets. In 2003, Color Glo entered the aviation market with the first patented upholstery repair process approved by the FAA for use in aircraft.
Everett’s sons Gary and Scott are now at the helm of the company, with Gary overseeing domestic franchises, and Scott managing the international side of the business. The third generation of Smiths is represented by granddaughter Mandi Brandon, who is the head of marketing for the company, and Matthew Smith, a franchisee.
When asked about their “secret to success,” Scott Smith shares that a key thread weaving through the generations has been “fundamental family values.” He further explains that Color Glo is built upon a commitment to “treating others with respect, maintaining a good quality of life, and making money without sacrificing flexibility.” Smith goes on to emphasize how this philosophy “lends itself to a family business.” Indeed, there are many two- and three-generation businesses built within the system, including varying combinations of grandparents, fathers, mothers, sons, daughters, and siblings.
Soon after acquiring Chem Glass, Everett Smith became aware of additional needs within the realm of auto repair, and (with the help of chemist Einar Birkelo) expanded into the refurbishing of vinyl upholstery. This led to further developments, ultimately including the restoration and repair of cloth, leather, and hard plastic in the automotive, marine, and residential markets. In 2003, Color Glo entered the aviation market with the first patented upholstery repair process approved by the FAA for use in aircraft.
Color Glo moved from a licensee/distributor format to franchising in 1982. The company has grown into an international brand, with franchises in 38 countries, including 124 US and 142 international franchisees. Their family-centric corporate culture is proven to be very conducive to developing franchises outside the United States. In fact, it is common for international master franchisees to oversee locations run by other members of their own families. Ernesto Lo Russo (based in Provo, Utah) became the master franchisee for Italy in 2005, and now has over 60 locations. He states, “I went with Color Glo because it is a family-owned business with high integrity.” He asserts that many outside North America “are very suspicious of US companies” and that Color Glo’s corporate philosophy has made it highly desirable in foreign countries.
Expanding into a global marketplace has required flexibility and cultural sensitivity, which extends to the very means of doing business. For example, 100% of the franchisees in the United States operate their service business from mobile units, while all of the franchises outside the US are required to establish brand recognition through storefront locations. International business is booming, thanks (at least in part) to the capability and willingness to develop new and adjust existing formulas for compatibility with foreign manufacturers’ products. LoRusso enthuses, “The product is amazing, and has been tailored to meet the needs of our (Italian) market.” This has resulted in some interesting bragging rights…..what other company can lay claim to refurbishing the entire automotive fleet for the King of Thailand?
Flexibility is a continuing theme for the organization, and one of its greatest attributes. Color Glo’s sister company, Cousta-Glo, specializes in the cleaning and restoration of ceilings and walls. Many franchisees within the organization are ‘zees with both brands. In addition to this dual-ownership option, Color Glo franchisees have total freedom to choose their area of emphasis within the menu of product and service options.
With the company since 1980 (first as a licensee, then a franchisee) Bob deHaan cites the opportunity to “focus on personal goals: automotive, marine, or residential.” The option for individualized focus allowed deHaan to retain the residential portion of his business and sell the automotive part to another individual in his territory. In addition to his role as a ‘zee, deHaan serves as an international trainer for Color Glo. He emphasizes the extreme diversity of franchisees, with a common denominator: wanting a business which “allows you to utilize your creativity and use your hands.” His one regret? “I only wish I’d started sooner.”
Todd Smith, a 15-year franchisee from Florida attributes 95% of his work to accounts with auto dealers. He has developed relationships with high-end dealerships (Bentley, Jaguar, Mercedes, etc.) in his area, and states that, “Exceptional products allow me to do exceptional work for my customers.” He enjoys the “flexibility in lifestyle” afforded by a home-based/mobile operation and has seen a 10% increase in revenue from the previous year, in spite of the challenging economy. Rich Kitzel of Eugene, Oregon, appreciates the opportunity to choose his livelihood in the community of his choice. He says, “I don’t know how I could earn what I do (here) doing anything else.”
Although there are other companies (both franchises and independent businesses) which provide upholstery and hard plastic repair services, Color Glo is unique in several ways. It is the only company of its kind which is ISO Certified. Color Glo also is the only franchise in its category which retains a staff of in-house chemists for product research and development. Their team of chemists (still led by Dr. Birkelo) creates environmentally sensitive, water-based products exclusively for Color Glo. In this case, the properties of products which respect Mother Nature also lead to fast drying and curing (i.e., turnaround) times, no VOC emissions, and the elimination of chemical-related health risks for those doing repairs.
Although on the forefront of the environmental movement, Color Glo’s status as a good global citizen does not begin and end with ecology. Color Glo Cares
(www.colorglocares.com) supports various charities throughout the world. Color Glo franchisees and employees donate thousands of volunteer hours to countless community projects around the world throughout the year.
(www.colorglocares.com) supports various charities throughout the world. Color Glo franchisees and employees donate thousands of volunteer hours to countless community projects around the world throughout the year.
Color Glo’s individual franchisees have consistently given high marks to the company across a broad range of questions dealing with franchisee satisfaction. In a 2011 study conducted by the Franchise Research Institute, Color Glo received “World-Class” certification. This third-party validation utilized scientific research methodology to gather confidential franchise owner reviews. Results included scores of 100% satisfaction in the areas of “overall quality of franchisor,” “quality of products and/or services received from your franchisor,” and “opportunity provided by this franchise system.” For complete survey results, visit www.fransurvey.com/colorglo.
Bill Sachse, a 29-year franchisee from Colorado Springs, Colorado, values the franchisee/franchisor relationship he has experienced with Color Glo. He finds it “like a family; everyone is truly treated well.” Originally based in Omaha, Nebraska, Sachse attests that there is also a great deal of networking and sharing between franchisees, resulting in superior product knowledge and ongoing training. In fact, the Franchise Research Institute study showed a 99% satisfaction rate for “ongoing training and support supplied by the franchisor.”
How does one join the Color Glo family? The initial financial investment is $44,500
(which includes a $25,000 franchise fee). After a visit to the Minneapolis headquarters and training facility, prospects are required to spend a day in the field with a franchisee. They are then, as Scott Smith says, told to “go home and talk themselves out of it.” While this may seem like a far cry from the high-pressure tactics of some franchise companies, the Smiths find that this helps to identify self-starters who are looking for the lifestyle a Color Glo franchise offers. Franchisees come from “all walks of life” and are free to gravitate to their area(s) of interest. There has even been a movement toward the restoration and repair of high-end footwear and handbags!
(which includes a $25,000 franchise fee). After a visit to the Minneapolis headquarters and training facility, prospects are required to spend a day in the field with a franchisee. They are then, as Scott Smith says, told to “go home and talk themselves out of it.” While this may seem like a far cry from the high-pressure tactics of some franchise companies, the Smiths find that this helps to identify self-starters who are looking for the lifestyle a Color Glo franchise offers. Franchisees come from “all walks of life” and are free to gravitate to their area(s) of interest. There has even been a movement toward the restoration and repair of high-end footwear and handbags!
In terms of averages, the Color Glo franchisee works 28-32 hours per week. They have a gross income of $365,000 (12%-14% margin), and a median net income of $80,000-$120,000. What does the Smith family have to say about these numbers in a “work faster/harder-make more money” world? Scott Smith’s serene reply: “We’re looking for the lifestyle; we want them (franchisees) to be happy.” In fact, he says, “You have to work hard to fail in this business, because we want you to succeed.” As a corporate mantra, he maintains, “Being the biggest isn’t important; doing what works is. It’s about how you feel at the end of the day.”
From the global community, to the family of franchisees, to the ‘zees and their broods, it looks like those at Color Glo are ending the day feeling very good, indeed.
Franchise Research Institute® and FranSurvey® were founded in 2002 by Jeff Johnson to study and promote franchise excellence. As a full-service research firm focused on franchising, FRI performs franchisee opinion research in the U.S. and internationally. Existing franchisees (as consumers of the franchise system) can evaluate their franchise as a business opportunity. World-Class Franchise® opportunities must demonstrate that they are endorsed by their franchise owners through scientific, confidential, third-party surveys.
Franchise Research Institute® and FranSurvey® were founded in 2002 by Jeff Johnson to study and promote franchise excellence. As a full-service research firm focused on franchising, FRI performs franchisee opinion research in the U.S. and internationally. Existing franchisees (as consumers of the franchise system) can evaluate their franchise as a business opportunity. World-Class Franchise® opportunities must demonstrate that they are endorsed by their franchise owners through scientific, confidential, third-party surveys.