Long Time Industry Exec Leads New Security Franchise Offering

Author: Brian Karas, Published on Oct 12, 2017

John Nemerofsky previously built and sold a $150 million dollar integration business, and then was VP of Niscayah from its spinout of Securitas, through its sale to Stanley Black&Decker, where he managed an $800M business unit as SVP of Sales and Global Marketing. Now, Nemerofsky has partnered with a Boston-based integration company to offer national franchises, using his experience in the industry to help other individuals build successful integration businesses.

Based on a discussion with Nemerofsky, we examine the franchising approach, fees, and other considerations for those who want to start an integration business, or flip their existing business to a become franchise location.

**** ******************** ***** *** **** * $*** ******* ****** *********** ********, and **** *** ** ** ******** **** *** ******* ** Securitas, ******* *** **** ** ******* *****&******, ***** ** ******* an $**** ******** **** ** *** ** ***** *** ****** Marketing. ***, ********** *** ********* **** * ******-***** *********** ******* to ***** ******** **********, ***** *** ********** ** *** ******** to **** ***** *********** ***** ********** *********** **********.

***** ** * ********** **** **********, ** ******* *** *********** approach, ****, *** ***** ************** *** ***** *** **** ** start ** *********** ********, ** **** ***** ******** ******** ** a ****** ********* ********.

[***************]

Franchisor **********

*** ********** ********, *** *********** ******* ****** **** ********* ********, *** *********** in **** *** **** ~$*** ** ****** *******, **** ****** growth. *** ******** *** ** * ****** ******** ** ******** MA (**** ******). *** ******* *** ***,*** ****************** ********** ** **** **** *** ********.

* *** *******, *** ************, *** ****** *** ******** ** offering *********** **********. *** ************ ** *** ** **********, *** a **** ** ******** ********* ** *** ***** ** ****** with *** *****, **********, *** ******** ** *** **********.

Benefits ** ***********

*** **** **** *********** *** *** ********* ******* ********:

  • ****** ** *********** ********** *** ****** *** ******** **********
  • ********/********* **** *** *****, *** **** ***** ******** ********** *** ability ** **** ***** ********** ******* ******/*********
  • *********** ********** *** *********
  • ********* ***********
  • ***** **** ******** *** ***** ********* ********
  • ****** ** ******* ******* ***** ** *** ************ *** ***/****** diagrams, ****** *****, ***** ********* *** ******* "**** ******" *********
  • ****** ** ********* ** ******* ******* *** *******, ****** ** help *********** **** ******** ** ******* ***** ********* **** ********* terms.

*********** **** ******* * ******** ******* **** ***** ************* * weeks, ********* ******** ** ***'* **** ****** ** ********, ** well ** ** *** **********'* ********** ********. **** *** ********, business ****** ******* * "********", ***** *** ******* **** ***** on *** ********** ** ***** ******* ********** ** *** ******** to ******* ********** *** ******* ************, ****** ***** **** *** business ***** *** *********, *********** *******, *** ***** **** **** new *********** *** ********* **** ** ***** ** ***** *** error.

Ideal **********

***** *********** (***** ***** **** **** ~$** ********) ** *********** with ******** ******** ********** (****** *** *********** ******* ** *********** company) ******* ** ***** ***** *** ******** *** ***'* ****** market **** ***** ********* *****. ****** *** ******* ***** **** welcome ****** **** *********** *********** ** ******* ** * ********* location, ***** ** *** ** **** ********** ** *** ******** if ***** ******** ** *** ****-*** *********, *** ******* *********, would ** ******** ** ******** * *** ********.

***'* ***** ********, ** ************, *** ** ******** ********** **** had **** ** ******** *** * *** ***** *** ***** to ****** * **********. ** ** **** **** (******* ****), this ** *** **** ********* ********, ****** *** ******* *** only **** ******** ********.

Core ********

*** *** ***** ************* **** *** ********* *************, *** **** these ** *** ***** *** ***** ******* *********:

  • ******** ********
  • **** ***** (******** ******** ***** *** *** *****)
  • ****
  • *****
  • ***
  • ***** **********
  • *********
  • ******** *****
  • **
  • ***** **** *****

*********** *** **** ** ***** ********** ********, *** ***** *** get *** ******** ** ***** ***'* ****** ********* **** ***** manufacturers *** ***** **** ** *********** *** **** ** ***** own ******** *** *******, *** *** ******* ***** ** **** suited ** ********** ************* ***** **** *** **** *****.

********** *** ********, *** **** "*** ******* **** ******* ******* lines ** ** ***** *** ****** ** *****, ***********, ******* management *** ***** *********** ** ******* * ****** ****** ********** while ********* ***** ******* ** *** ********** ******** *** ****** efficiencies ** *** **********."

Consolidated ********** - ******** ************* *** ***********

*** *** **** ********, *********** ******** ******* *** *********, ***** was ***** ********* ** ****** **********, ******** *** ****** ******** for *** ***********. *** ******* **** **** ******** ******** *** franchisees ******* **** *** **** **** * ****** ******* *** ordering, *** ** *** **** ** ********* ***** ** ****** with ******** ************* ** ************. **** **** *** *** ******* of ***** ***'* ********** ********* **** ***** *********, ****** ****** than **** * ******* ** ***** ******* ***** *** ** their ***. *** *************, *** ****** ****** ******** *** *** potential *** ********** ****** ***** ** ***** ********* ********* ****.

Territory *********

*********** *** ********* ** *** ********** (****** *** *** ** nothing ** ******* ***** ***-********** *********** ** * ***** ****), and *** ******** ** ***** *** ********** ** **** * large *********** ****** **** ****** ********* ***** ******/*******. *** ******* works **** **** ********* ***** ** ******** *** ****** ********* in ***** ****** *** **** ** * ********* *** **** encompasses ****** ********** ** **** *** ********** ********** **** *** growth.

Marketing ********

*** ****** "** *** **** *********** ** * ****** ********** platform **** **** ******* * *** ************ *** ***** ** a ********* *** ** *** ********" * ************* ** *********** marketing ** **** ** ***** ******** ** **** *********** *** the ******* ***** ****, *** ** ***** ***** ** ********** franchisees. *** ******* *** ******** * ** **** **** * background ** *** ******** ******** ** ****** *** ********* ******* for *** *** ****** *******, *** ** **** **** ********** franchisees ** ********* ********. **** ********* ********* ***** ** ******* as **** ** ***'* ******* ******* ** ********* ******, ******** the **** *** **** ** ****** ********* ** ***** ***.

Franchise ****

***** ** * $**,*** ******* ********* ***, ******** ** ***** initial ******** *** ******* ***** ** ************ *** *********.

*** **** * ********* ***** *** ******* ********. *** ******* provided *** ********* ******* ** **** *********** *** ******** ** pay ** ***** ** ********* ** ***** *********:

*** *******, * ******** **** *** $** ** ******** ***** pay ** ****** ******* ** $***,***. ** **** ******* ***** business ** $**, *** ******* ***** ** $***,***. ***** ** a ******* ******* ******* *** ** $*,*** *** *** ***** year, ***** ** ****** *** *** ***** * ****** ** revenue ** *** ** ***-********. **** ******* ******* ******* $*,***/** in **** *, $*,*** ** **** *, $**,*** ** **** 4 *** $**,*** ** ***** *+.

** ******** ** ********* ** *******, *********** **** *** $*,***/**. to *** ******* *** ***********/*********. *** ** *** *** ******** (required) *** * $*,*** ******* ***** *** *** **** $***/**. for *** ***** * *****, *** $**/**. *** **** ********** user. ****** ******* **** *** $*,*** *** **** **** ** operation ***** *** ***** ****.

Other ******* *****

***** **** *** ********* ***, *********** **** **** *** ****** costs ********** **** ******** ** *********** ********, **** ** ******* office *****, ********* ********, ********** *****, *******, ***. ***** ***** will **** ** ********, *** *** **** **** *** ******* guidance *** ************ ** **** ** *******. ** *******, ******** owners ****** **** * ******* ** $***,*** ** *******-********** *******, and ************ *** * ***** ********** ** $***,**-$***,*** ** *** their ******** ** ************* (**, ** ***** *****-****).

CGL *******

*********** **** *********** ********** *** ** ****-********* ** *****, *** that *** ********* ***** ** ******** ** *** ** **** established ** ** ** *** ***** **********, *** *** **** setup * ********* *** *** ***** ***********. *** ******* **** this ****** *********** ** *** ********* ******, ** ** *********** better *****, **** ** **** ******* *** * ***** ******** loan ** ***** ***** ****, ** ***** ** ***** ******** vehicles ** * *** ******** **** ** ******* *******. *********** are *** ******** ** *** *** ******* ** **** ******* financing *** ***** ********. *** ******* **** ** ** ******* to **** **** *** ***********, *** **** **** ***** ********* of *** $**,*** ********* ******* *** ** **** *********.

Compared ** ***********

** **** ****, ***'* ******* ********** ***** ** ******* *************'* ********. **** ************* ***** ** ***** ************ ****** *****, ******** and ******** *******, *** ********* ***********. *******, *********** *** **** momentum **** ~* ***** ******* *********, *** * **** **** is **** *********** *** ********** **** "********".

********* ***** ******* *** *** ************* *** **** *******, ********* on *** ***** ** *** ********. *** **** ****** **** higher **** ** ******* *****, *** *** **** ***** ******* fees ** * ******** ***** ****** $**. **** ******* *** following *****, ******* * ********* ** *********** ********* **** *** various ******* ******* ***** **** **********, *** *********** ********* ******** over ****. ***** ******* ***** **** **** **** *********, *** how/when ******* ****** ** ******** ** ******* ******* ************. **** that ***** *********** **** *** ********* ****** ** *********** ** marketing *** ** ** **** ** * ********* ***, **** do ******* *** ***** ** ****** **** ** *** ******. Security101 **** ******** ********** ** ***** ** ***** *% ** gross ******* ******** ** ***** *********, ***** *** **** *** have **** * ***********, ** ** ********** ** ****** ***** would ** ***** ** ***** ***********/********* (******** ***** *****, *****-*-******, etc.). **** ***** *********** ***** ***** ***** *********** ******** ********** with *** ********* ** **** ***** ***** ********** **** ******* the ********* ********.

**** ********* ***** **** ****** ** ******* ******* *** ******** in ***** ***-******* ******, ****** ***** ************ **** ***** ** standard ********* *** ***** ****.

Comments (23)

*** **** ******* ****** *********** **** ****** *** ******* ** write * ***** *****% ** ***** *******?

*** ***** * **** *****. *** ******** *** *********** ***** make ** ***** *** ***** ** "*** *** **** **** integration ******** ** ******** ** ******* ** **** ***, ******* making *** ****** ******** ***** *** ***?".

** *** **** ***** *** (**********) **** *********** ********* ** your *** ******, *** ***** ** **** ****** ** *** the ******** ** ***********. *******, * *** *** *** **** of ****** *** *** **** *** *** ***** ****** ** a ******** ********** *** ***** **** *** ********** **** ** holding **** **** ****** ***** ********** ** * **** ***********. They **** *** ***** ******** ****, *** **** *** *** to **** **** ****-****** *****, ******** * ********, ***. ** their *** *** *** ****** *** ****** ******* *** *** as * ********* ******** *** **** *** *** ** *** running **** **** **** ** * "******".

***** ****** ** ** ******** ********... **** ********** ** ******* do ***** ****** ***** **** *** ** ****?

*'* ******* ****... ** ******** **** ****** **%+ *** ******? That's ***** *** ***** **** ** ** *** **** ** make *** ***** **********.

** ******** **** ** ****** **%+ *** ** * **** company **** **** ******** *** ******** ******* * **** ** rethink ** **********.

** ************ ** **% *** ********* ****** *** *** ************. But **'** *** * ********** ******* ****** ******* ********** *** I ****** ***'* ***** *** *** * *** ** ****** expansion ***** ***'** **** *** ** ******** ****. * ****** keys ** ****. ** **** ******** *********, ******* ********** ********, have *** *** ** ******* ******* *** **** **** ** business ** ***** ** ** **** ** **** **** **** that ******'* ** **** *** *********** **** *** **** ** hand. ****** *** *** **** *** ******* ******* *** **** a *** ** ********* *** ** ********* **** ***** **** I ***'* *** *** ** ** ******** ** *** **** benchmark. ** **** * ***** ***** **'* ********** ** ******** install/service ***** ****** *** *** ************ **** **** *** ***** enterprise ******** *** * ***** ** * ****** **** *** no ***** ********.

**** ******* ** ***** **********'* ******* ****** *** *&* ***** there *** * *** ** *********** **** ** * ******* in ******* *** **** ******** **** -(****** **** ******** %) to **%. * ***** *** ******* ***** ******** ** ****** in **** *-**%.

***** ******* *****. ** ***** ** *** ********* *** ****** from? ******* **** * ******* **** ** ***** ********* ********* include ** **-***** ******* ******* **** ** ******... ** ** years ** ****** ****** ********, ** ******** **** **** ***** move *** ******* ** ** *** **** ********** ***** **** only ***** **** **** **** ***** ** ****** **** *********.

*** ******* ** *********** *** ******* ** ***** ****** ** be **** *********. *** ***** ******* * **** **** * franchise *********** ** *** ******** ******** ** **** **** ** the ******* *****/********* ******** ** *** ********** ********* *** ********* to **** ********* ***********. **** ** **** ********* ** * McDonald's ********* *** **** ******** ********* **** ***** ******* **** a ********* *** * *-** **** *** ****** **** *** also **** * ******* ***** ** ********* ***** ***** **** different ****.

****** **********, * ***** ... *** * *** *** ********* and *********** ** ***** **** ** ******** ******** ***** *** these ********* ************ ****** ******* ****** ** ** * ****** dealer *** ***/*** ** **** (********** ** ***** ***** *****'* be ** ***** *** ** **** ****** ** ***, ******** House ********).

*** ************ ** ****** ********* ** ********* ********** ***, *** still ***** ****** ** *** **** ** **** ******** **** a ********* ****** **** **** ***** ** **** * ***** in ***** ** ******* .. **** *** *************-***** ******'* ****** being ******** ** *** *** ** ***** *********** **** * quasi-separate ****** **** ** ******** ***** ** ******'* *********, *.*. Domino's ****** **** ***** ********* ******** *** ** *** **-***** royalties *** **** *** **** **** ***** ** *** ** the **** *** ****** ******** **** *********** *** ******** ** buy **** * ********** **** ******'* **** **** ***** * different ****. ** ***** ** ****** ******* ** *** ***** than * ******'* ***** *** **** *** * ******'* ***** (if ****'* **** *** ****).

****** **** *** ***** ** **** ******* ******** **** ****** through * ******** *** ********* ****** ****** ******* ***** *****, such ** ****** ****** ******** ** ******* *** *** ************? Axis *** ******* *****'* ***** **** ******** ** *** ******* unless ***'** ** * ******* ******** ***** .... *******, *** ScanSource's, ***'*, *******'* ** *** ***** *** *** **** ** Axis ****** ** ****** *** ******* ** ****** *** **** a ***, *** **** ***** * ******* **** ****** **** under * ******** *** ** *** ***********?

******, ***** ** ** **** ** ******** ********* **** ******** franchise **** *** *** *******? * *** *** *** *********** of ******* ******* ******* *** ******, ** ** *** ** CGL??

*** ********** ********, *** *********** ******* ****** **** ********* ********, was *********** ** **** *** **** ~$*** ** *******...

** **** ********, ** *******?

********. * ***** **** ** *** *************.

*** *********** ******** ** ** ***** ** **** *****/**********? * have ***** ***** ** **** ******* ******, ***** **** ***** trucks ****** ******/********. $*** ***** ****... ** **** ****?

*** $*** ** ** ****** ******* ******. * ********* **** in *** ****** ****.

* **** ******* **** **** *** **** *******, ** * am ********* ****** * ********: ***** *** ****'* **********, *** did ** ******* **** ** ********** **** **** *** *******? That ***** ** ******** *** ******. ** * ******* ********* or?

*** ***** ********** ******* **** ****** ** **** ***** ********, and **** **** *** ********** **** ******* *********** *** ** a ********** ***** ** * **** *** *** ****.

**** ******** ****** ********** **** ** ********* ***** ***********, ******* new ****** *******, ********* ***** ***** ********* ************* *** **** that **** ** ***** *** **** **** **** ******* ***. I *** *** *** *** ********* ** **** ** ***** approaches *** *** **** **** **** **** *** ***** ******** since ** **** ********* ********** *** ***** ********, ***** *** to ***** **********.

*** *** **** ********** *** * ****** ** *****, *** the ******** *** ******* **** ****, ***** ** **** ** what *** ** *** "*** *** ** *** *** *********/******** to ******" ******** ** *** ***** *****.

* ******* *** ********* ******** *** ******* ** ** * way **** ***** **** ****** ***** **** *******, *** **** essentially **** ******* ***********, ** ****** **** ****** ** *** collective ******/********** ** *** *** ********** **** (**** *** **** company *** *** ********* ****) *** **** ********* *******. ** this ******** ******, *** *******/********* ******** **** *** ***** *** skin ** *** ****, ****** **** **** ********* (*** ********* for ****-**** ********) **** ** *** **** ****** **** ****** offices *** ***** ****** ** ******** ******** *********.

*** **********, ** ***** ** ********** **** ** ********** **** low *******, * ***** ***** ** ***** **** **** ** a "*********" **** * "**********" (******** ** * ******** ****** comment ***** **** *********** ***** (******?) ********** ** ******). *** gave *** ** ***********, *** *** *******, ** ****** ********* he *** *** **** ****** **** *** ********* *************, *** that ** **** ****** * ****** *********** ** *********/********** **** other ******* ** ***** **** *******.

*** **********, ** ***** ** ********** **** ** ********** **** low *******, * ***** ***** ** ***** **** **** ** a "*********" **** * "**********" (******** ** * ******** ****** comment ***** **** *********** ***** (******?) ********** ** ******). *** gave *** ** ***********, *** *** *******, ** ****** ********* he *** *** **** ****** **** *** ********* *************, *** that ** **** ****** * ****** *********** ** *********/********** **** other ******* ** ***** **** *******.

**** ******** ** *********'* **** ***,******?

* ******* *** ****** ****** ****** *** ****** (*** ****** control *******) ******* ** ******* *** *** ********* **** ********.

* ******* ** *** ******** ***** **** ** ***** *** when * *** ** *** ******** ********, *** *** *** PC *** **** ********* ** **** ***. *** ******** **** was **** ** ***** ** ******** ******* * ****** ***** and **** ********* ****** ***** ** *******: ************, ****** ******** Centers, ********, ***. ***** **** *** ******* ***** ******, *** consolidated ************ *** ****** ********** ******* *** ****** *********.

**** ** ** ** *** "***-**********" ***** ******** **** *** money *** ** *** ********/********* *********, *** ********* ** ****** our ********* ** ******* **. ***** ****** *** *** ******* a ****** ********, *** ****** *** ********* ******* *** ********* expertise ** *** ***** *****. ********* ** *** **** ****** level *** **** *** ********* ** ***** ** * *********** advantage. ***, *** ******* *** ***** ****** ********* **** ** help **** **************, *** * ******'* **** ** * ********* project **** **** **** ** **** **.

**** **** *** ******** ******* ** ********* *** ***'*** ******** from ****, ** **** ***, *** *** ************ ******** **** true ****** *********** ****** ** ***** **** ***** *** ******* software ******** *** ***** ********* ****** **** ***** ****.

*** ******** ***** *** ********* ***** *** **** **. * served ** *** ****** ******** ******* *** *** ***** *** many ***** *** *** ******* ****** ** ********** **** *** royalty **** *** "***** *****" ********** **** ** **** *********** products **** ******** *******, *** *** *****, ***** ***** ** a ***** **** ** *** **** (**** **** ** ***** days). ** ********** **** ********** ** ******* *** ****** ******* to ****** ** * ************ ***** *** **** ****** * markup ** **** ** ********* **** ****.

*** *******, ** * ********* * $**,*** ****** ******* ****** that *** *** ** ***** @ $**** *** ****, **** hardware/software *** ***** ** ***** $***, *** ***** ***** ***** of ****** $***, **** ***** ***** ***** $*** ******, *** the ***** ** *** ***** ** ***** $**** (*% ** $37.5k). ****'* * *** ***** ** *** ****** **** *** a ***** *** ** ***** ** *** *** ** *** month. *** ********** ****** ****** **** ******** "*** **** *** they ******** ** *** *****?" ** ******* ***** **** ** fees. *** ******* ** *** ***** *** ****** ***** ** this *** ***** ** ***** $****.**, ********* **** *** ********** didn't ****** **, *** **** **** ***. ********* *** **** value *** ** ********* ** ** ** *** ***** ***** and *** ************ *** ***** ** ****.

****'* *** *'* *** * *** *** ** *** ********* model ** **** **********.

**** ** *** ******** **** **** ***** *** ********** ***** be **** ** ****** ** ***** ***.. * ***'* ******* that * ******* **** ** ******* ******* ** $***** ***** enjoy *** ***** ******* ***** ******** **** *** ** ***** vendors ** * ***** *** ********** ** ****** ********** ** all ** * ****** ****** ** "************ ****** *****".

*** ********** ** ******* * ********* ** ** ** **** of * ***** **** * *** ********* **** *** ***** a ****** ******* (********), *** ******* ** ******* ******** ********, and ******* ********** *****. ** *****'* ****** **** *** ****** any ** *****. *'* ********* ***** ******* ********** ***** ******* I'm *** **** *** ******* ******* ***** *** ***** ****** to ****** *** *********. ** ** ******* *** *** ********* paying *** *********. ***** **** **** ********* **********. * *** of **** ***** *** ** *** ***** ** **** *** very ****** **** ** *** **** *** ***. **** ********** in ***** ********** ******* ***** * ******* **** ******** ***** offers **** **** ** *********** *********** ***/** ****** ******* *** that ***** ** **** ********* *** ********* ** ********* ** your ***. * ***'* *** **** ****.

* ****** "**" ***** ** * ***-******* ****** **** ********* CGL **** ****** ***** *** ********** ******** ****. *** *** will **** *** *** *** ****'* *******......**** ** ***** ** a ******** ******* ** *** ********* **** *** *****.

** ** *** **** **** **** ********* **********, *** ***-******* clause **** ** *** ******** *********. ** ***** *****, *** of *** ********* ** *** ********** *** ****** ***** ** the **********.

******** ** * *** ***** **** ** ********* ********* ** a ********* ************. *** ******** *** *****, *** **** ******** the *********. ** **** ****, "***" ** * ****** **** brand ** ** ** *** ************ ******* ** *** ****** area...at ****. *** **** **** ** ** ******** ** "********** Security" **** **** ***** ** *** *****.

*** **** **** *** ** *** * ****** ****** ** their *** ****** **** *****'* *********** **** *** ********* **** not ******* ****. **** ********** **** **** *** ** ********** that **** *** * ****** ******. **** *****, **** **** Ray **** **** *** ******** ******** *** ****** ***** ******* markets, ******* *** **** ** *** **** ** *** ******** industry.

*** ******** **, **** * ****-*** ********** ******* ********** **** CGL **** ** "******** ****" ****** ***, *** **** ***** franchisees ** ***, "** *** **** ***** **** **** **** reader."

**** ** ** *** *** *** ** ** *********.

****** ** **** ********. **** *****, ***** *** **** ********** that ******* *** ***'* **** ***** ** **** ** *** golden ******.

**** *****, *** **** **** * *** ** *******/********** **** may ** ********** ***** *** ******** ** ****** ********...** ******* the **********.

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