jdean3 - Tales of Transformation

http://www.ritasice.com

After 24 years with a single employer, I found myself frantically searching for a career change a few years ago given the rampant downsizing we were experiencing.  It was not an easy time to start looking for a job…the economy was tanking, Michigan was in a near depression (unemployment was 20%+ and housing values had plummeted ~50%), and I was still recovering from a severe accident that was likely to leave me with some disability.  I started evaluating dozens of franchises that were within my capital investment range that could give me the return I needed and were within my capabilities.

Although I am happy I wasn’t forced into a career decision during the last few years, it has forced me to seriously consider what my options will be for a second career (after Ford) and to get busy planning for how I might structure my own business ventures in the next phase of my life (whenever that happens).

There are several franchise opportunities that made the A-List.  I analyzed UFOC’s (franchise disclosures), did hours of market research and looked at a number of industry/product types.  It was fun.

The one that ranks the highest for me was the Ritas Italian Ice franchise.  They aren’t in Michigan yet, but that is actually a plus.  I would prefer to be on the leading edge of the franchise even though it will require a longer start-up.  It is a perfect second career for hundreds of people like myself that may be forced to “retire” much earlier than planned.

• The product is OUTSTANDING.  It tastes great, it’s lighter than ice cream so regular customers think nothing of returning 3-4 times a week.  Many are fruit based and moms feel this treat is more acceptable than others. It’s a relatively inexpensive dessert that has a cult like following in Pennsylvania (and growing).
• A Seasonal franchise that opens the 3rd week of March and closes in late Sept/Oct is perfect for northern folks who would love to head south for the winter.
• By the way, the opening day in March is huge…every store gives away (free) italian ice that day and people line up!
• It is a simple concept and they have a tremendous support network built up and it looks like adequate training, etc.
• The margins are incredible.
• A very low labor requirement (high school kids, etc) means you can keep costs down.
• 800-1200 square feet is all you need, so you can keep rent commitment down…ideally you can build/own depending on the location.
• The franchise is a perfect candidate to structure something similar to a “Dealer Development Program” which I am intimately acquainted with.  There are likely dozens of friends in similar situations that would gladly put up 20-30% of the capitalization (limited risk) and use the profit to buy out the remaining shares over time (from me).  We could structure a win-win for everyone.  I’m not sure I would trust much debt load, but I would certainly consider something that provided an opportunity to build a network of stores over time.

I’ve been sharing this franchise detail with dozens of friends even though Rita’s isn’t yet in Michigan.  It seems like a perfect fit for our owner/operator plan but I am eager to have additional sets of eyes do their own due diligence and see if I’m missing something.