He Spent 25 Years at Dairy Queen, Great Clips & Planet Fitness — Then He Became a Franchisee

This is a transcript from Episode 41 of The Franchise Champion Show.

Listen to the full episode on Apple Podcasts, Spotify, or YouTube.

Alan Regala: My guest today has spent over 25 years on the franchisor side, coaching hundreds of franchise owners on growth, finances, and exit strategies. He knows the playbook better than almost anyone. So when he finally decided to cross the other side of the table and become a franchisee himself, he didn't just open one business. He and his family now run two thriving home service franchises, Mr. Handyman and Mosquito Shield, in southern New Jersey. Jon Steward, welcome to the Franchise Champion Show.

Jon Steward: Thanks for having me, Alan.

Alan: It's great to have you here. I'm very excited to learn more about these brands. But before that, take us back to the beginning. How did you get into franchising?

Jon: Well, I began my career after my undergrad in hotel and restaurant management. I was managing restaurants, and I answered a help wanted ad back in the day. The ad said, "Help business owners to be more successful." It turned out that was a franchise business coach position for Dairy Queen, actually in their enclosed shopping mall division at the time, working with Orange Julius.

Alan: Orange Julius! I used to get those all the time. I loved it.

Jon: Yeah, so that introduced me to the world of franchising. I opened new restaurants around the country for a few years, then became a director of operations there. I spent a total of about 12 years at Dairy Queen, then left and did a similar role at Great Clips, working with franchisees on succession planning, org structure, financial planning, and onboarding new franchisees. I just continued to fall in love with franchising. Then I had the opportunity to get my CFE through the International Franchise Association. I also got my master's degree and did my research on franchise performance groups. I left Great Clips after about 11 years and then did the same thing for a couple of years at Planet Fitness.

Alan: Wow, that is a lot of time in franchising on the franchisor side, helping new owners and existing owners grow, scale, and eventually sell their businesses. So how did you end up becoming a franchisee yourself?

Jon: Well, my brother was interested in leaving the role he'd been in for 29 years, and I suggested it might make a lot of sense to open a franchise. His wife said he could do that if he wanted to, but only if I did it with him. I'd been exposed to Neighborly through IFA conventions and just loved the way they supported their franchisees. So we decided to open a Mr. Handyman business. A couple years later, after I left Planet Fitness, the opportunity came up to acquire an existing Mosquito Shield with a complementary territory. And that's how we ended up where we are today.

Alan: That's great. So let's start with Mr. Handyman. How did you end up deciding on that brand? Neighborly has a number of different options.

Jon: It was really based on my brother's skill set. My brother inherited all of the handy genes in our family. I have some other gifts, but he was the handyman of the group, and we thought it might be a great fit for his skill set. They didn't have a Mr. Handyman in our immediate area, so we had the opportunity to acquire that territory and build from scratch.

We started with one territory, grew that, added a second territory a few years later, continued to grow, and then added a third. We were growing about 20 to 30% a year for the first four years. Then last year we hit a little bit of a speed bump and we were flat. Although I'm excited to say that this past April was the best month we've ever had since we opened the Mr. Handyman business back in 2020.

Alan: Congratulations, that's amazing. You said you opened in 2020. That was an interesting year. What was it like opening during that time, and what month was it?

Jon: We originally signed our paperwork in July. Our training was the very first virtual training they had ever done. It was very difficult to get our licensure because all of the government offices were closed. But we finally opened our doors in November. The pandemic, although there were obviously a lot of challenges, was actually very good for the home services sector. People were home and they wanted to make their home spaces as great as they could be. So it was a good time, at least from a business standpoint.

Alan: Yeah, we experienced the same thing at ShelfGenie, also a Neighborly brand. It was closed for a short period, but once things opened back up, it was a heyday of activity.

Jon: It was also a challenge from a growth standpoint. It was difficult to get things like vans, to interview people, or get the iPads we needed. As we were planning our growth, we really needed to be a little further ahead of the curve to make sure we weren't limiting ourselves for lack of infrastructure or materials. That served us well from a business philosophy standpoint: if you're going to be focused on growth, you need to have the people, equipment, and materials in order to sustain that growth, or you're going to limit yourself.

Alan: That's a great point. A lot of franchise owners trying to grow get stuck trying to do everything as lean as possible. They do it all themselves, try to save money, and end up not being able to expand because their time disappears.

Jon: Right. If you grow 5% a year, after five years you're at roughly 25% total growth. But if you're growing 20% a year, you're at a whole different place. The struggle is much longer if you don't grow aggressively.

Alan: Okay, so the business was growing well those first few years. How did you come to the decision to buy a second business?

Jon: My brother was working full time in Mr. Handyman, and I was part time. Before I went with Planet Fitness, we had looked at a couple of opportunities, but nothing really struck us. We didn't want to build another business from the ground up organically. We really wanted to do an acquisition, and the right opportunity just hadn't presented itself.

And honestly, I love my brother and I love working with my brother, but it's better for us to work in our own lanes than to be in the same business trying to do the same things. So the way we work it: my brother runs the day-to-day of Mr. Handyman, I support the marketing and financials, and my wife works full time in the Mr. Handyman office. Then I work full time running the day-to-day of Mosquito Shield, and my brother supports me from a facility and equipment standpoint. We run them as two separate businesses, and I think that's the right structure for us.

Alan: That makes a lot of sense. You have to know when it works to be in the same business and when it's better to be separate. It's great that you had the awareness to build it that way.

Jon: We also have structured monthly shareholder meetings with a fixed agenda where we have an opportunity to air the grievances. It's also the opportunity for my brother Jim's wife to share her perspective. She's in the ownership group but doesn't work in the business, so she has questions and perspectives that deserve to be heard. Those meetings sometimes get a little emotional, but it's good. It's healthy to have that structure on a monthly basis.

Alan: That's fantastic. Communication and exceptional communication is one of the principles I think is so important in business. Having consistent opportunities for people to be heard and get on the same page is so valuable. Did you start that from the beginning, or did it come out of necessity?

Jon: We had less frequent meetings when it was just Mr. Handyman. Once we added Mosquito Shield, we felt like we needed more structure there.

Alan: Very cool. Let's talk about Mosquito Shield. Tell us what the business does and how you impact the lives of your clients.

Jon: Mosquito Shield is all about helping people enjoy their outdoor spaces without worry or interruption. I was a customer since 2018 and knew the strength of the brand firsthand. But it's a seasonal business in New Jersey. We go out about every two weeks and look for where mosquitoes or ticks may breed and harbor, and we treat the properties. We offer a satisfaction guarantee, so if people are being swarmed or bitten between visits, we'll come back out at no additional cost. It's a seasonal model, not a per-visit model.

We love hearing the stories from people who have invested tens of thousands of dollars in their backyards and couldn't even go out to swim in the pool or sit on the patio. We help them to actually use that space.

Alan: That's amazing. Being able to create an environment that lets people enjoy what they've invested in is really meaningful.

Jon: So we start with tick treatments around mid-April, bring our seasonal technicians on at the beginning of April, and retrain everyone no matter how many seasons they've been with us. We roll right into mosquito treatments from late April through the whole season, winding down in late September or early October when the nighttime temperatures drop. We do one last tick treatment after that. We also offer treatments for perimeter pests like ants and spiders, and here in New Jersey, spotted lanternflies as well.

Alan: So you're operating roughly mid-April through mid-October. What happens in the off-season, and how do you retain your technicians year to year?

Jon: Our business has grown to the size where we have some year-round employees on the customer service and operations side. Mosquito Shield also offers a separate franchise called Decorate with Lights for the off-season, but we chose not to do that because of the Mr. Handyman business. For me personally, the off-season gives me a chance to really set up the marketing plans for both businesses, meet with vendors, get equipment ready, and plan for the year ahead.

The previous owners built an amazing culture at this Mosquito Shield, and I've been able to retain everyone who was with the business when I acquired it. Our seasonal technicians have an average of five seasons of experience, and we only had to hire one new technician this year out of the ten we brought on for the season. We do monthly barbecues during the season to thank them, group events between Mr. Handyman and Mosquito Shield, and a season-end luncheon where we give out some serious awards and some joking ones. We talk about our values on a regular basis and try to lead by example every day.

Alan: That's fantastic. Speaking of how you found Mosquito Shield, you mentioned earlier you wanted to do an acquisition. What was it about this particular business that drew your attention?

Jon: It was funny. The former owners were friends of ours. Our kids had grown up together, and I had stayed in touch with them. I reached out because I was between opportunities and asked if they'd mind forwarding my resume to the folks at Five Star Franchising, the franchisor for Mosquito Shield. The former owner, Janice, said she'd be happy to do that, but then added, "Hey, it's funny you should reach out. Tim and I are thinking of potentially exiting. Would you mind having a cup of coffee with us and giving us your thoughts?"

So we met the next day. I shared some questions to ask and things they might want to think about, since they weren't quite ready to talk to the franchisor yet. At the end of the conversation, I said, "I love what you've built. I love the culture, I love the business. And if you decide to move forward, I would love to have the opportunity to bid on it." She said, "That's funny, because that's one of the reasons you're here. We think you and Robin would be amazing. We know you, we know your value system, and we think you would carry on the legacy and culture we've built."

104 days later, we were at the closing table and I was the proud owner of Mosquito Shield of Southern New Jersey.

Alan: Wow, that's a great story.

Jon: There are lessons in that. If you're interested in acquiring a business, you have to talk to people and keep putting it out there. Having conversations and being willing to connect with people leads to unexpected things. I saw this at Great Clips all the time: when franchisees are interested in expanding, you have to be willing to expand both organically and through acquisition. Talking to other franchisees in the system and building those relationships can lead to opportunities you never expected.

Alan: That's really cool that you had that conversation with the intent of just helping them, not with any expectation of buying, and then after learning about the business you realized it would be a great fit. And because of that relationship, they trusted you enough to want you as the next owner. So after having advised so many franchisees for so many years, what has surprised you most about being a franchisee yourself?

Jon: It depends on the day, honestly. But I think the biggest thing that surprised me was how much more emotional it is when it's your own money. Every single decision feels like it has ramifications. I acquired an amazing business, and the previous owners rightfully got a good value for it. That creates pressure on the business that wasn't there before. You just have to keep reminding yourself that you can see the end of the tunnel and you're going to get there.

The other thing is, my wife and I talk about this all the time, we feel an obligation to our teams. We are helping 25 people put food on their tables and take care of their families. That's an obligation we don't take lightly. I cared for the franchisees I worked with for 25 years, but I didn't realize how much that weight would settle on you on a daily basis when they're your own people.

Alan: Those are two great examples. Working with family is another topic that comes up often. What advice do you have for people considering going into business with family members?

Jon: The best time to figure out the exit strategy is when you enter. The way we structured our partnership: I have veto authority on Mosquito Shield decisions and my brother has veto authority on Mr. Handyman decisions. We each have input into the other business, but we've agreed on who makes the final call.

The other thing is humility. We recently hired someone at Mosquito Shield in a customer service role, and she told me upfront that she wasn't sure about working with family because she'd experienced situations where there was literally screaming in the office. I was glad she told us that. You have to come in with a humble attitude and be willing to say, "Maybe this isn't the best use of my skill set," and be open to shifting responsibilities when the business needs it.

Alan: Basically checking your ego and staying open to learning from others, being willing to do what's best for the business rather than what makes you look capable. It's interesting because I think that mindset is actually easier when you own the business.

Jon: You know, it kind of struck me when you put it that way. It is easier to be humble when you own your own business and you're trying to take care of a team. In corporate America, you're trying to prove yourself to move up in the ranks. It's harder to release the ego there.

Alan: That's great advice. Now, you've published research on franchise peer groups. Tell us about that and how it's played out in your own experience as an owner.

Jon: My research was a hybrid project. Great Clips was kind enough to allow me to do some surveying as part of it. We talked to franchisees who were in peer groups and looked at things like willingness to expand and likelihood to exit the system. What the research showed was that franchisees who were part of peer performance groups were more engaged in the system, more likely to expand, more likely to be financially successful, and more likely not to exit.

The churn in a franchise system can cost a lot of money. It's far cheaper to have an existing franchisee expand than to go out, find a new franchisee, bring them in, and onboard them. So there are real advantages for the franchisor and real advantages for the franchisee.

Mosquito Shield does a great job with peer performance groups. One of the first things I did when I joined the system was to join one, and it has been amazing for the business.

The second part of my research touched on something broader: franchise systems that help franchisees feel like they're engaged in something bigger than themselves tend to be more successful and have better retention. Things like conventions, recognition, and having people in leadership who know you not just as a franchisee or a royalty check, but as a person, as a family, knowing your kids and what they're up to. I've been lucky enough to be involved in brands like that throughout my career, and both Mr. Handyman and Mosquito Shield are that way.

As the role of community and churches has declined over the last few decades, I think owning your own business can fill some of that in meaningful ways. The family of Mosquito Shield franchisees and the Mr. Handyman franchisees we get to know are genuinely great. I can call the president of either franchise and have a real conversation. I try to do that judiciously, but they know my business and they care about it.

Alan: I think the community aspect of franchising is one of the most underrated advantages. There's really nothing that can replace having a group of people doing the exact same business as you in other markets, where you can be completely open and candid because you're never competing against each other.

Jon: Exactly. In both of our home services businesses, we have exclusive territories. We can be very open and honest about what we're experiencing, what our plans are, and what marketing vehicles we're using, because there's never any chance we'd be competing against one another.

Alan: You mentioned your father talked about being a business owner but never got there. What does that mean to you now?

Jon: That's an emotional one. My dad was a dreamer. I called him a reluctant farmer. His dad had a stroke when he was 16, and he had to take over the family farm because his brothers had gone off to World War II. He farmed because that was what he knew. He got married, had kids, and when I was four years old, he told me I could do whatever I wanted in life, but he didn't want me to be a farmer.

He talked often about opening a business, and my mom did too. She had planned to go to college, but because of the GI Bill and the returning soldiers from World War II, her enrollment was deferred by two years. In the interim, her mom convinced her to become a secretary, which is a great job, but it wasn't her dream. So both of them had talked about owning businesses, and it just never happened. He didn't know how to do it. He wasn't super financially savvy, though he was a great provider and created a great life for my brother and me.

I think if he had known about franchising, if it had been as popular 40 years ago as it is today, that might have been a great avenue for him. My brother and I talk about that often. We think about how proud, or thankful, or both, our dad would have been to see us doing this together. It helps us stay humble. We named one of our LLCs after him.

Alan: I'm sure they both would have been really proud. That's awesome. What do you want other people to know about franchising that most people get wrong?

Jon: Two things. First, it's real easy when you get into a franchise system to join the "woe is me" club. There are franchisees who are supportive of the brand, and there are franchisees who sometimes aren't. Be careful about who you connect with inside the system. Always build relationships with the best franchisees and try to see the path for the best growth and the best opportunity.

Second, people are sometimes scared of debt. I've tried to live my life conservatively from that standpoint, but I saw this a lot at Great Clips: someone would be approved for $200,000 but think they only needed $100,000, so they'd only take the smaller loan. That's fine until something doesn't go according to plan. If you need that other $100,000 later, you won't be able to get it at that point. You're better off taking the $200,000, having that safety net, and working like heck to pay it off as quickly as you can.

A lot of times, businesses don't fail because they fail. They fail because they run out of money. Somebody else comes in, picks up the pieces, and makes a success of it. Don't be afraid of the debt. Use it to grow, and pay it off as fast as you can.

Alan: Love it. What advice would you give to anyone considering the leap into franchise ownership?

Jon: Make sure your care network is on board with you, whether that's parents, siblings, a spouse, or kids. Make sure this is a group decision. If you make it on your own, there will be stress, more stress than you need. Even if they're not going to be involved in the business, making sure they're supportive of it is one of the most important things you can do.

Alan: Great advice, Jon. Thank you so much for joining me today and sharing your wisdom. And congratulations on being a Franchise Champion.

Jon: Thank you. Thanks for having me, Alan. It's been great.