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A Single Franchise Can Offer Different Things to Different People
by Michael J. McDermott

People choose franchising as a means of business ownership for many different reasons. Some like having the security of a proven business concept. Others value the access to initial training, start-up assistance and ongoing support. Still others find the opportunity to be part of a group of like-minded franchisees most attractive.

Likewise, within any franchise system the reasons individual franchisees give for having chosen that system can span a broad spectrum. While it is highly probable that all or most of a franchise company's franchisees will have something in common-they share the same business format, trademarks and operating systems, after all-it can be enlightening to examine their individual reasons for making the choice they did. Tim and Rhonda Vesterfelt are partners in both business and life. Both 43, they have been married for 21 years and are the parents of three teenage daughters. Today they are franchisees of Packaging and Shipping Specialists (P.A.S.S.), an unusual franchise company started by Mike Gallagher in 1981, in Hobbs, NM.

After Tim was "downsized from corporate America," as he puts it, the Vesterfelts decided it was time to look into owning their own business. But not just any business would do. It had to be one that would align with the priorities and values they held most dear in life. "Our children are very important to us," explains Rhonda, "and this business appealed to us on that level for several reasons. Our girls are at the right age to come alongside us and learn the business. Though we put in many hours running our business, one of us is always able to get to the girls' activities after school."

Tim candidly admits that they had no real experience in the shipping business. "So naturally we were intent on finding the best franchise to fit our needs and our level of experience-or lack of it," he says. "A major focus of our franchise search was trying to find a franchisor that would provide us with the best advice and training."

The Vesterfelts, who operate their business as Pack & Mail Plus in Allendale, MI, also had no prior experience with business ownership, another factor in their decision to go the franchise route. The couple relied heavily on technology in conducting their search. They visited The Franchise Handbook Web site (www.FranchiseHandbook.com) and the Web sites of dozens of franchise companies, where they read articles and conducted research into various industry segments.

After narrowing their search to the packaging and shipping industry, they visited an existing P.A.S.S. Pack & Mail franchise in Saline, MI. "After that, we were sold," Tim says.

Based on their own experience, Rhonda and Tim believe that two of the most important things prospective franchisees should focus on when conducting their franchise search are the length of time the franchise company has been in business and the structure of its royalty fee system. As mentioned earlier, P.A.S.S. is an "unusual" franchise company. What is most unique about the company's business model is that it does not impose monthly royalty fees-charges that eat up 6% or more of monthly sales revenue at most franchises in the packaging and shipping sector. That definitely played an important role in the Vesterfelts' decision.

"P.A.S.S. offered all the classic advantages of an established franchise system that we were looking for," Rhonda relates. "The company has been around for almost 25 years, they offer quality service and quality products to their customers, and they have a great training program and a wonderful support team. The fact that we don't have to pay a monthly franchise fee just put P.A.S.S. over the top for us."

Tim and Rhonda were also attracted by the scope of business opportunities P.A.S.S. offers its franchisees, as well as the flexibility and autonomy franchisees enjoy in choosing which of those opportunities to include in their own format. "We have the choice to change or add any service or product to our business as we see fit," Tim notes.

Packing and mailing comprise the core of the P.A.S.S. business model, but franchisees can also choose from a broad menu of other products and services. For example, many P.A.S.S. franchises offer copying services, fax services and postal box rentals. A growing number are taking advantage of the eBay Trading Assistant program offered by P.A.S.S. The eBay Trading Assistant provides P.A.S.S. franchisees with a way to capitalize on the popularity of eBay, the hugely successful online auction site that has developed into one of the shining stars of e-commerce. "The level of support P.A.S.S. has given us has been more than we could ask for," Rhonda says. "We have never felt belittled because of any questions we've had. We've never been hurried through any training we received."

For Darrick Johnson, Sr., owner of a P.A.S.S. franchise in Maricopa, AZ, separation from corporate life was a personal choice, not an imposed condition. It was a choice his wife and business partner, Gwendolyn Johnson, supported.

Approaching his fiftieth birthday a couple of years ago, Darrick held a good job as a fabrication trainer at a major technology corporation. However, he felt a growing desire to work for himself and to achieve financial independence.

"I was tired of the corporate politics that are part of life as an employee at any big company," Darrick says. Gwendolyn was working as a financial analyst at Arizona State University, a position she continues to hold.

"We chose franchising to avoid the financial and work-flow trial and error challenges that come with independent business ownership," Gwendolyn says. "Darrick had worked for a short time as a night manager at a print shop franchise, so we were not unfamiliar with the advantages of the franchise business model."

The couple felt they had some experience and background that would prove useful to them as business owners. Darrick had previously owned a residential and commercial maintenance service and landscaping business, and Gwen had substantial financial experience.

Like the Vesterfelts, the Johnsons relied heavily on the Internet in conducting their franchise search, and they also "talked to a lot of people," Darrick explains.

"The most important thing to keep in mind is that you have to pay attention to all of the details involved, and you have to be clear on how all those details come together to form the big picture," Gwen says.

"Be sure to consider all of the work that will be involved to make your choice successful," adds Darrick. "It's important in making a decision of this magnitude that you do it with your eyes wide open."

The Johnsons chose to become franchisees in the P.A.S.S. system because the opportunities offered were affordable and because there were no royalties, they say. "They offered us one-on-one expert training, and we had flexibility in choosing the type of advice we felt would benefit us most," Gwen says.

Since launching their business about two years ago, the couple says one of the things they like most about being franchisees is the nationwide name recognition their business enjoys. They are "100% satisfied" with the level of support they are getting from their franchisor, and they have set a goal for themselves to open "multiple successful stores."

The Vesterfelts and the Johnsons provide a good example of the kind of flexibility and adaptability franchising offers prospective business owners, even those whose needs and motivations might differ from each other in significant ways.

What's remarkable is that both the Vesterfelts an the Johnsons were able to find just what they were looking for in the same franchise-and that says a lot not just about P.A.S.S. in particular, but about franchising in general.


For Tim and Rhonda Vesterfelt, finding a business that would allow them the flexibility to stay closely involved with their three teenage daughters was important. They found the answer in a P.A.S.S. packaging and shipping franchise.
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