Chapter 22: Franchisor Success Story: How I Franchised My Business

A dream shared among entrepreneurs is to scale their business, build wealth and create a lasting legacy. One effective way to accomplish these goals is through franchising. Franchising your business provides an avenue to achieve these aspirations while leaving a lasting impact on your community and beyond.

Tippi Toes, a youth enrichment and children’s dance franchise, was founded by Sarah Nuse and her sister Megan Reilly at an early age. Now, more than 23 years later, the brand has grown into an impressive 38 units and counting. According to Nuse, the CEO, the idea to expand the brand first emerged when one of their dancers expressed the desire to bring Tippi Toes to Florida. 

This sparked inspiration for Nuse and her team. Initially, they looked at several different options for ways to grow the brand’s footprint and contemplated the idea of starting a children’s show. Sarah even wrote a book with her husband called “Pink Ballet Shoes.” However, one of Nuse’s mentors then introduced them to the concept of franchising, which would forever alter the course of their lives.

“It was kind of an epiphany for us,” said Nuse. “We were still pretty young in business and blindly feeling our way through. That was our pivotal moment.”

Nuse and her sister began working with a franchise consultant, who guided them through the process. Within just two years, Tippi Toes sold its first franchise location in Cincinnati, Ohio. But before they were able to reach that point, they did extensive research to ensure they could open new locations smoothly and efficiently.

“We looked at what other companies were doing and conducted market research, but the biggest thing for us was that we didn’t want to dilute our brand,” she explained. “We aimed to expand without straying too far from our core values.”

This became a significant focus during their expansion efforts and greatly helped Tippi Toes grow into the successful franchise it is today.

Ron Holt, the founder of Two Maids & A Mop and Pink Zebra Moving, initially had reservations about franchising too. He heard a fair share of negative stories and experiences between franchisees and franchisors, but after an introduction to the industry, his perspective began to shift.

“When I first entered the industry, I didn’t know anything about it, and I was ironically against it,” noted Holt.

Holt’s journey into franchising began when he already had 12 corporate stores operating under Two Maids & A Mop. A fortuitous encounter at an International Franchise Association conference introduced Holt to Fred DeLuca, the founder of Subway, who became his mentor. 

Over several months, DeLuca imparted invaluable knowledge about franchising and effectively shaped Holt’s understanding of the industry. When he started branching out on his own, Holt soon discovered that franchising involved more than he initially realized.

“The big lesson when you’re building a franchise brand is not to assume everybody is going to follow your ways,” Hold advised. “There has to be some type of enforcement. If possible, limit opportunities for fragmentation.”

This lesson was something that Nuse also had to learn early on in the franchising process. In order to not to dilute the Tippi Toes brand, Nuse and her team used their first franchise in Ohio as a test subject, and walked the Cincinnati-based owners through every step and procedure. They did this to ensure their brand would remain the same, even if it was states away. She said this was an “instrumental” step in the process for them to understand how to expand the brand while remaining true to their core values. 

For any entrepreneurs considering franchising their business, Nuse and Holt both stressed the importance of understanding the level of commitment it requires. Nuse noted that it entails more work than most expect, and as such, mistakes are bound to happen. She encouraged all aspiring franchisors to embrace failure, learn from it and adapt.

“Be okay with making mistakes,” she advised. “Even after all these years, Tippi Toes is still evolving, growing and adjusting. We have had our own fair share of failures, but they have led to immense growth. If you fail, learn from it.”

Holt advised that before anyone franchises their business, they should first ask themselves a few important questions.

•  Is the business scalable?
• Can the business be profitable in every market across the country?
• Can you provide world-class training and support?

With Holt’s latest venture, Pink Zebra Moving, he affirmatively answered his own questions. With 10 locations already open, Holt envisions growth while delivering delight to customers and creating a new space in the industry for what he calls “happy movers.”

Looking to the future, Tippi Toes aims to add 25 franchise territories annually for the next three years. Nuse is passionate about not only making an impact on children but also on families in less fortunate regions. For every 12th new franchise location, Tippi Toes builds a house in Guatemala, providing an opportunity for families to benefit from the transformative power of dance.

Everyone Starts Somewhere

Although both Holt and Nuse now have years of franchising experience behind them, they were both new to the franchising space at one point or another. But through trial and error, hard work and dedication, both individuals have forged a name for themselves in the franchising space and serve as an inspiration to aspiring entrepreneurs looking to embark on their own franchising journeys.