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Current IssueDiversity in FranchisingDiversity in Franchising CoverMarch/April 2024

Finding a Niche

No matter the business, or businessperson, there is undoubtedly an advantage to discovering an underserviced area in which to thrive. These four franchisees—all from different backgrounds and sectors—discovered the perfect market where they could ride the wave to prosperity.

By Daniel McIntosh and Rachel Debling

Karim Mohamed, Allegra Marketing Print Mail

For some franchisees, Canada wasn’t the first choice of destination but became essential for their business journey. That was the case for Karim Mohamed.

Mohamed immigrated to the U.S. on a scholarship to study accounting. While he was in the program in the late ’80s, civil war in his native country of Somalia prevented any chance of return.

“So, I came over to Canada,” recalls the Brampton, Ontario-based franchisee. “The first job I got was for a print shop.”

The shop focused on printing foreign-language newspapers in Portuguese, Urdu, and Arabic, among others. Mohamed worked there for about 16 years before buying an Allegra Marketing Print Mail franchise, then called KKP, in Brampton in 2002.

A franchise print business was advantageous for its existing customer base, according to Mohamed.

“Yes, it’s more money to buy at the beginning, but the franchises have systems, they give support, and I thought it’s worth the amount of money, like the franchise fee and the royalty.”

He notes that Allegra has negotiating power for machine leases and purchases, as well as service contracts. It also means that classic concerns like printer updates or equipment breakdowns are all taken care of. Allegra’s procurement teams source a range of replacement options from industrial brands that fit the individual store’s needs based on the volume of print materials.

“If I’m a standalone [printer], I could get that service… but it’s more money. As a franchise, the unit rate is a lot lower.”

The franchise also monitors sales volume to help franchisees improve lagging sales. “If you’re slipping down, they will come and study the workflow, how you’re doing things, and they will steer you out of that situation,” says Mohamed.

Mohamed notes that he’s had to adapt to the shifting needs of businesses in his more than two decades as an Allegra print shop owner. When he took over the location in 2002, 85 per cent of the job was printing branded stationery, business cards, and letterheads. “Those things are about 20 per cent of what we do now.”

The bulk of his production now goes to marketing materials: flyers, postcards, and newspaper inserts from local businesses, along with window vinyls and other large-scale signage. This is yet another advantage of the franchise model: Allegra has departments dedicated to finding new opportunities for its franchisees. “They help you with that,” says Mohamed. “They will tell you, ‘Do you know people are making money on this? Do you know this is high demand now, these items, this kind of paper, or this kind of service?’ That’s one area they are very good [at].”

Mohamed says having diversity in the franchise marketplace is beneficial because it holds new owners to a standard of presentation, while allowing them to see how they could run a business on their own terms. “Those are the kinds of things that I wouldn’t be able to hold to that standard [without] the franchise. It’s forcing me to do that, and that’s one good thing.”

At 67 years old, Mohamed is looking to retire in the next two or three years, eventually passing on his franchise location to a new owner. His advice to prospective owners is to trust the system Allegra lays out.

“They will tell you where the market is, how to reach the market, how to communicate with the people in that market. And even if you have big interviews with a big job, they will help you prepare for that. So that’s the advantage. If you go with a system, you will not fail.”

Allegra Marketing Print Mail Franchise Logo

Nona Vincent and Ciara Jean, Oxygen Yoga & Fitness

For Indigenous business owners Ciara Jean and Nona Vincent, becoming Oxygen Yoga & Fitness franchisees was a no-brainer. Not only was Nona able to meld his construction business, AKI General Contractors, with this new endeavour (his company not only built their Kanata, Ontario, location, but two others in the Ottawa area) but Ciara was able to leverage her 12-plus years of yoga instruction experience as she ran her own studio.

“I worked in a couple of different gyms,” explains Ciara, a Kanien’kehá:ka woman and member of the Lower Mohawk First Nation. “I worked for a couple of boutique studios over the years, and I did have a few private clients that were more women’s health focused.” She first stumbled across Oxygen Yoga & Fitness while visiting family in Nanaimo, B.C., and immediately fell in love with the concept.

From there, the partnership grew from an unexpected place. Nona, who is a member of the Algonquin Anishinaabe, had been tapped to build the studio, but the original owner had to back out due to medical reasons. He knew Ciara through her father, a friend of more than a decade, and felt an opportunity had risen that they just couldn’t say no to.

“I had my whole summer lined up, building the place,” says Nona with a laugh. “And then I thought, ‘You know what? I’ll be a franchisee.’” After signing their franchise agreement and undergoing the comprehensive method and managerial training offered by Oxygen Yoga & Fitness, it took only around three months for them to prepare the space. They officially opened their doors seven months ago with a dozen instructors, three employees, and a jam-packed schedule of classes. They now have two additional employees and recently welcomed their first co-op student to the facility.

One aspect of Oxygen Yoga & Fitness that both Nona and Ciara appreciated right off the bat was how it treats its franchisees and their clients.

“It’s very community-oriented,” says Ciara. “As a First Nations woman, community is really important to me. [The company does] provide really comprehensive training leading up to opening and support through the opening process. Even now, if there is something that I have questions with, my director of sales is literally just a text or call away. She never makes you feel like she’s too busy, she’s just got your back.”

Head office is also a big supporter of initiatives close to both of their hearts. For instance, the company supplied orange shirts so franchisees and guests could participate in Orange Shirt Day (September 30, a.k.a. the National Day for Truth and Reconciliation) to raise money and help spread awareness. The Kanata location alone raised $1,800 for the Indian Residential School Survivors Society.

Their heritage has even made its way into the studio, with Indigenous-inspired artwork covering many of their location’s walls. And when Ciara is at the front of the classroom, she tries her best to educate in a natural, organic way. “I do try to weave in more cultural knowledge and traditional teachings within my yoga classes in a subtle way that I think is valuable for any human being,” she says.

Both Nona and Ciara say that in order to succeed as a franchisee, you have to have a passion for the services and products you offer. “People always have to keep in mind that you don’t just jump into business without being 100 per cent ready,” says Nona.

“[Ownership] can be very intensive,” agrees Ciara. “If you want it to be successful, you need to be really invested in it in terms of your time. The people who are coming in will feel it if you are fully there, if you are really happy even when working long hours, if you are passionate about what you’re offering. You need to believe in your brand.”

Oxygen Yoga & Fitness Franchise logo

Marcus Bailey, Pillar To Post

Moving from a decade-long construction career to owning a home inspection business sounds like a natural progression. For Marcus Bailey, a Pillar To Post franchisee in the Fraser Valley region of British Columbia, it wasn’t just easy an easy transition—it was necessary.

“I absolutely hated it,” Bailey laughs when asked about his sheet metal contracting career. “My plan was always to own my own business.”

Armed with an understanding of general contracting and HVAC, Bailey finally took the first steps toward entrepreneurship in 2012 and enrolled in a home inspection course at a local college so he could become fully accredited. In about a year, he was licensed and ready to roll.

But it turned out that starting his own business wasn’t going to be as simple as he had originally believed. “I didn’t realize how much time or money it would take,” he remembers. So, he got some experience by working at Pillar To Post’s Langley location, owned by Bjorn Rygg, who Bailey still counts among his network today.

The first year was a blur in the best way possible, with Bailey clocking 200-plus inspections. “I was thrown into the fire,” he says, laughing. The opportunity to see how the business ran up close and personal convinced him that a Pillar To Post franchise was right for him. When a resale location became available in Fraser Valley—originally owned by Roger, Rygg’s brother, who Bailey knew well—he jumped at the chance to go into business for himself.

Because he had a wealth of experience in the area, and in the industry, Bailey saw immediate success, increasing business by five per cent within the first year. While at launch it was just him and a woman he had hired to answer phones, last June he added his first full-time inspector; within the next year or so, he’d like to add at least one more.

As one of two Black home inspectors in the province (“That I’m aware of,” he adds), Bailey recognizes the value of diversity in the franchising industry, noting that any sector is strengthened by a variety of experiences and views. For anyone looking to purchase their own franchise, Bailey has a few pieces of sage advice.

“Be personable. Do your research. Hit social media hard, hit the pavement hard, be a part of the community—and be passionate about what you’re doing.”

Pillar To  Post Franchise Logo