INSIDE Benjamin Franklin Plumbing
by Steve Smith
May 1, 2009
 |
| From 2004-2006, Hunter’s franchised business
grew more than 60% and saw its customer base grow significantly
throughout the Nashville metro area. |
|
PM readers may remember the
familiar face in the center of this month’s cover. We put Tab Hunter on the cover in 1999 when he
was busy building Tab Hunter Plumbing into one of Nashville’s best-known
plumbing companies.
“Our image is so powerful,” he told us then, “that parents come up to me and
say, ‘My son is looking for a job. Is there anything you can
do?’”
His company’s shine hasn’t lost any of its luster, but it does look
considerably different. For one thing, his name isn’t over the front
door.
In the past 10 years, Hunter turned the independent company he started in 1992
into a Benjamin Franklin Plumbing franchise, invested in another HVAC franchise
created by Clockwork Home Services Inc., Ben’s parent company, sold those two
franchises back to Clockwork in 2006 when they both earned about $5 million in
sales and, as part of the acquisition, went to work at the corporate headquarters
selling other contractors on the benefits of franchising.
“Because your name is on the door,” he told us when we took a tour of
Clockwork’s Sarasota, Fla., headquarters last January, “you become the smartest
guy in the room and everyone wants to know what you want to do next. But it
doesn’t mean you have all the answers.”
Looking for all the answers is what propelled him to first be a Ben Franklin
franchisee and now persuade others to do the same.
Hunter joined the company as a vice president, but is currently Clockwork’s
president of franchise development and has seen the sales of the franchised
businesses grow to $282.5 million last year.
A Little History
 |
| We put Tab Hunter on PM's cover in 1999 when he was
busy building Tab Hunter Plumbing into one of Nashville’s best-known plumbing
companies. |
|
If buying a franchise means buying
into a particular philosophy of business, Hunter’s own path to running his
contracting business ran a similar “by-the-book” approach. While there’s a deep
independent streak running through the majority of residential
service-and-repair shops, there are also plenty of ways an independent can
depend on “best practices” or affinity groups to stay on his own. (Clockwork
got started itself founding Plumbers’ Success International. For more on the
company, read “ Jim Abrams And Clockwork.”)
That’s what Hunter did, in fact, before he graced our cover for the first time.
After getting “royally beat up” doing new construction during his first few
years after starting the business, Hunter joined an affinity group and quickly
learned the benefits of entering service and repair, and doing so on a flat
rate basis.
“In 1996, we plumbed 310 new homes,” Hunter
says, “and in 1997, it was zero.”
By 1998, Hunter employed one of the youngest staff we’d met — the dispatcher
appearing with him on the cover was just 19 — all looking good in common
uniforms and trucks. Employees learned the Hunter way through a formal 15-day
training program that included in-house presentations along with ride-alongs
with experienced techs. He even had a catchy jingle to advertise his business.
His average service invoice was $380.
“We got to be known as the highest-priced plumber in town,” he says. “But we
provided the ‘Cadillac’ of service and not the ‘Yugo.’”
Shortly after our 1998 visit, Hunter was on his way to almost franchising
himself. He had hired a consultant to map out a plan to replicate his Nashville
business to expand into a few other cities to essentially blanket the state
with his brand of service.
Around that time, however, he started to hear more and more about this new
franchise company called Benjamin Franklin Plumbing. He admits he was reluctant
to check it out at first and told us he was shocked when a good plumbing friend
of his from Minneapolis called to tell him he was a Ben franchisee.
Still, he did attend a meeting in Las Vegas and was impressed by the overall
system the company was providing.
To prove his point, Hunter grabbed a current copy of the company’s OpX Manual,
which spells out essentially what a franchisee needs to run a service
business.
“This is what I really wanted and had been trying to do on my own,” he adds.
“Tell me how it’s supposed to be done and I knew we could kick it in the
butt.”
From 2004 though 2006, Hunter’s franchised business grew more than 60 percent
and saw its customer base also grow significantly throughout the Nashville
metro area.
Joining Corporate
Since he joined Clockwork, Hunter is
an essential spokesman for the company and what it can do for independent
contractors. According to 2008 figures, Clockwork added 21 new Benjamin
Franklin Plumbing franchises for a total of 249 territories served. (We’re only
interested in plumbing, but Hunter is charged with also selling HVAC and
electrical franchises. For more information, see the sidebar “By The Numbers”
on page 32.)
“What do contractors want?” Hunter asks. “No. 1, they want more profits. A
close second is that they want some freedom. They typically can’t get away from
the business or, rather, they’re so good at the technical side that they can’t
create time to dedicate to being a businessman.”
Our January visit coincided with “Gearing Up 101,” a four-day seminar for the
company’s newest recruits. The afternoon we stopped by, for example, the franchisees
were going over everything you’d possibly want to know about proper invoices.
From there, franchises can take advantage of Clockwork University, an online
school that teaches just about everything you’d need to know to run a business,
delivered in four tracks common to providing service:
- Customer
service
- Technician training
- Sales and Marketing
- Business
Management
We’ve also
attended other company conventions that attract upwards of 300 franchisees to
learn the latest services from the company, as well as network with like-minded
contractors.
About 1,100 contractors belong to PSI and
Clockwork’s other affinity groups, essentially business schools for independent
contractors that also share many of the same services and educational
opportunities the franchisees enjoy. Hunter says the main difference between
membership in PSI and buying a Ben Franklin franchise is one of accountability.
There’s not much leeway around the fact that franchisees have to do things a certain way. After
all, the very key to any franchise’s success is consistency in product and
service, no matter what big city or small town the business is located.
But Hunter adds there is plenty of built-in support
along the way. For each franchisee, Hunter says there’s a staff of 25 Clockwork
employees there to help, with a core of about 10 actively going over daily
numbers that franchises submit and conducting weekly conference calls with a
set group of contractors.
The process is also carefully presented in a sequential manner. Hunter picks as
an example a tankless water heater sales program that everyone wants once they
hear about it.
“But you aren’t going to get it unless you can show evidence that you have your
call center in order, that you’re selling Ben Society agreements [the company’s
name for service agreements],” Hunter explains. “In other words, we make sure
the cart doesn’t go before the horse.”
Brand Name
Besides the extensive training, most
Ben Franklin contractors we’ve met along the way tell us that having a
nationally recognized brand name is a vital benefit — one that goes a long way
toward taking the sting away from not having your name above the front door any
longer.
In planning the plumbing franchise, Clockwork executives polled more than 1,600
residential service customers and found that most customers consider plumbers
as honest, frugal and hardworking. The real Ben Franklin was certainly all of
these things and, maybe, the only mark against him was he wasn’t a
plumber.
Related to the brand image are the company’s
slogans like “The Punctual Plumber” and “If There’s Any Delay, It’s You We
Pay.” If a Ben Franklin franchisee can’t make it to a service call on time,
customers get $5 for every minute they are late — up to $300. (Timely customer
service is the hallmark of the other two franchises’ slogans, too. For more
information, see sidebar “By The Numbers” on page 32.)
Last year, Clockwork started national advertising for its franchisees with a
full-page ad that ran in USA Today inviting customers to produce their
own homemade commercials for the brands and post them on YouTube. The winner
was based on the number of hits earned by each commercial. Last January, John
Hill, a mortgage loan officer from Orlando,
Fla., received the winner’s check
for $26,000.
The “Win26k” promotion generated more than 15 million impressions, according to
the company. (Watch the YouTube video at the end of this article.)
Brand names, slogans, recognizable uniforms and the like may be the most
familiar parts of a franchise. But that’s only from the outside looking in.
Change those directions and you can also see some synergies built when people
are brought together under a common mission.
For example, Hunter told us how franchisees
in Florida
are banding together to share advertising costs. Also, a call center in
Phoenix, started by another group of franchisees, is now a Clockwork service offered
to as many as 35 franchisees.
When Clockwork first started selling
franchises, PSI members had first dibs on scooping up a particular territory before
the company would approach any other contractors. At this point, Hunter says
the Ben Franklin name itself has become well-known among contractors. As a
result, the company is long past making cold calls and is starting to actively
target the leading business of areas of the country they want to fill in with
franchises.
In addition to the usual presentations for prospective contractors, Hunter told
us about the “snap” surveys that they’d also conduct to help contractors judge
their name recognition. Basically, it’s a survey of 100 local homeowners asking
them to recall the names of local plumbing companies.
“Most find out that not as many customers know their businesses as much as they
think,” Hunter says. (Franchisee Scott
Rohrer had an interesting story on
this. For more information, read “Standing With Tab” here.)
By The Numbers
According to 2008 totals, here’s how the numbers break down
for Benjamin Franklin Plumbing, as well Clockwork Home Services Inc.’s two
other franchises:
Benjamin Franklin Plumbing Motto: “The Punctual Plumber – If There’s Any Delay,
It’s You We Pay” 249 territories
One Hour
Heating & Air Conditioning Motto: “Always On Time Or You Don’t Pay A Dime” 245
territories
Mister Sparky Motto: “We're On Time, You'll See Or The
Repair Is Free” 80 territories
|