Buying a Franchise Made 'Goodcents'
William and Gina Gregalunas Diversify their investments
When choosing a business to purchase, buying an existing franchise is often a cost-effective option. Start-up and build-out fees are clearly budgeted and proven, plus there is a marketing plan available to draw in a customer base. These are all factors that led William and Gina Gregalunas to purchase the Mr. Goodcents deli fresh sub sandwich shop at Village Pointe in Omaha.
The couple wanted to make the investment as a way to secure additional income and searched for the right opportunity for about nine months. “We thought it [Goodcents] was a good product, liked the location, and it’s a relatively new franchise in the Omaha area,” Will said. Another appealing aspect was the support that Corporate provided to its franchisees. “They are involved enough to make sure all stores provide a quality product that meets their standards,” he added. Will kept his full-time career in IT, and their business is an additional form of income to their family.
Owning their own business has been in line with what he expected and would consider purchasing again in the future.
Other companies aren’t as involved in their individual franchisee locations, which can result in quality and inconsistencies across the brand. But customer perception is key, and if one location isn’t holding up the standards, then it reflects poorly on all locations, regardless of ownership. “It’s no different than owning a home in a neighborhood,” Will explained. “They all reflect on one another.”
Corporate also provided training, which was valuable since this was Will and Gina’s first experience as owners in the food industry. They also provide business liaisons so that owners can call with any questions. “The support structure is really in place to help us be successful,” Will happily reports. With turnover high in the industry, hiring and employee retention is a challenge, so the couple has focused on creating a friendly work environment and providing competitive pay. “We try to treat everyone like family,” he said. “There are a lot of jobs to choose from in Omaha, but the laborers are great here.”
Managing costs is a critical component to owning a franchise, and Will explains they have focused on those areas they can control, such as labor and portioning. Since most of their products are cold sandwiches, they don’t have to deal with equipment such as fryers. Rather, they try to keep food costs down by teaching employees how to keep portions consistent.
Will said owning their own business has been in line with what he expected and would consider purchasing again in the future if it was the right opportunity. In the meantime he and Gina plan to diligently work on their current investment. “This first year has been a learning curve, now we’re fine tuning operations so that next year we’ll be even more productive.” His advice to others considering the purchase of an existing business is to research the industry and ask other business owners about their experience. He also said to make sure there is a support structure in place. “The franchise wants to see us succeed just as much as we do.”
The Firm Deal Review
Buyer Requirement: Business must be a franchise
Location: Village Pointe, Omaha
Valuation Method: Cost to Create