Dallas Mayor's Franchise Initiative Aims to Increase Jobs and Foster Economic Development in Southern Sector » Dallas Innovates

Funding from a financial institution focused on underserved communities helped West Dallas fitness studio PureNRG Cycle take off last year. Now, PureNRG co-founders Greer Christian and Janelle Wright are “rapidly growing” their indoor cycling and strength training boutique by licensing their startup's name and idea to franchisees. I am planning to do so.

Christian believes that franchising (a contract that allows franchisees to use the franchisor's brand and business practices in exchange for an upfront fee and annual fees) creates an ecosystem that helps more families create wealth across generations. I believe that it will be possible to build

“We are Black business owners, we are women, and we understand the challenges that come with Black families,” she says.

PureNRG is one of more than 100 companies to receive educational, financial and networking assistance from the Mayor's Franchise Initiative, a program launched last year by Dallas Mayor Eric Johnson.

This pioneering program, led by Lathrop GPM Franchise and Distributor attorney Carlos White, is aimed at increasing the number of franchisors and franchisees in the city's southern sector, especially those facing economic hardship. Masu.

Carlos White, a Dallas attorney specializing in franchise law, has been named a Franchise Impact Ambassador and Chair of Dallas Mayor Eric Johnson's Franchise Initiative in 2022.

There are three main elements to this effort. The company's Franchise Exchange hosts educational events on topics such as real estate and marketing. The franchisor and franchisee accelerator, which will launch next year, will focus on franchising existing businesses and setting up entrepreneurs to take advantage of franchising opportunities.

Texas is already the fastest growing state in the United States in terms of franchise formation, according to the International Franchise Association's 2023 report. That's why Dallas' mayor believes that by teaching entrepreneurs business models, he can create more local jobs and stimulate economic development here, White said.

From left: Janelle Wright (PureNRG Cycle), Greer Christian (PureNRG Cycle), Jessica Taylor (Ezra Coffee), Kimberly Evans (JP Morgan Chase), Kevin Knight (Urban) at DSW2023 in September.・Event Global). [Source photo via The DEC Network]

Improved service level

Entrepreneurial franchisees who understand their local market have an advantage in developing and expanding their businesses, White explained during several sessions he led on franchising at Dallas Startup Week in September. did.

“To me, that's the secret sauce of franchising,” said White, whose title for the initiative is Franchise Impact Ambassador. “As a franchisor, who do you think is more motivated to increase revenue and profitability: a salaried executive or an entrepreneur who helps the company grow?”

A case in point is Calvin Golden, who helped start Wingstop, an Addison-based chicken wing restaurant, and went on to sell and buy multiple Wingstop franchises. Golden's store, located in the highly competitive Oak Cliff market, was distinguished by its high level of service, he recalled.

“I tell my staff, 'We call everyone from 8 years old to 80 years old Mr. or Miss. So when you come in and order and we ask for your name, we call you 'Mr.' Mr. Smith, how are you today? Ms. Smith, your order will be ready for her within 15 minutes. ’ After a while, we built up a pretty good fan base. Not just because the chicken was delicious, but because people wanted to come just to hear us call their name.

“The best ads we ran were $2 for one customer, $4 for two, and $10 for four,” Golden said. “That's how our business grew.”

From left: Anthony Williams (AltCap), Calvin Golden (Wingstop Developer), Mario Williams (City of Dallas Small Business Center) [Photo: Red Wave Media]

Here are some other insights we gleaned from our panelists during our Startup Week sessions:

harry williamsThe founder and CEO of franchise brokerage Right New Door said franchising is growing in popularity. “Many people are leaving corporate America, and many baby boomers are too young to actually 'retire and retire.' Franchising is an entrepreneurial opportunity,” he said. Additionally, “Many business owners are now purchasing franchises to complement their existing businesses.”
Rory DotsonThe founder and CEO of Vision Group Cleaning, a Grand Prairie-based cleaning company, said anyone considering franchising a business needs to first have a solid infrastructure in place. Ta. He said that in addition to operating with quality and integrity, companies need dynamic operating teams and smart, executable plans in areas such as human resources and intellectual property.
jessica taylorThe co-founder and CEO of Ezra Coffee, a Dallas-based specialty coffee brand, is trying to win shelf space in HEB grocery stores and eating out less until his products become more widespread. He talked about the sacrifices he made. Taylor said he also developed “great relationships” with banks such as JPMorgan Chase and Comerica, pursuing mentorship relationships, social media opportunities and even free office space provided by the banks.

Kimberly EvansMs. Taylor, Western Regional Director/Franchise and Restaurant Finance Director at JPMorgan Chase, believes that entrepreneurship is about “being Black, being a woman, being a Latina, being a veteran. '', he said, praising him. Instead, she said, it's about excellence, hard work, moral character and sacrifice. “Capital comes from different places at different stages of the business,” Evans says. “Some of that capital is coming from you. So let's get that Mercedes back and get a cheaper car. You can save $20 or $30 a month from your office job. Own it.” Get out of the mindset that everyone owes you for your ideas. Go out and build an ecosystem.”

Kendall HillThe founder, president and CEO of Project Texas, a nonpartisan community organization, said it's important for entrepreneurs to “support local communities to show them what they've done with the support they've been given. It is important to remain visible to local and state authorities, he said. My experience has taught me that the best person to speak to in these offices is not the official's chief of staff, but their “go director,” and if not the “go director,” then the office assistant. That is to say. Because they keep the office running. ”

From left: Greer Christian (PureNRG Cycle), Jessica Taylor (Ezra Coffee), Kimberly Evans (JP Morgan Chase) [Photo: Red Wave Media]

I can see the “Great Awakening”

Mr. White said franchising is a good way to spread wealth.

“How do we get an ROI so that our Hispanic and Latino brothers and sisters, our white brothers and sisters, and our African American brothers and sisters can make money at the same time?” he said. “Minority-owned businesses must be 51% owned by minorities, but that doesn't mean they can't find non-minority investors.

“A lot of these big companies want to do business with businesses that they can scale. They don't have time to deal with one or two incidents. But if they can connect with franchisees, they can “We can increase our revenue along the way,” White said.

“That's the great awakening that I'm starting to see. There's a lot of untapped opportunity when it comes to franchising, especially multiculturalism, and it's being overlooked.”

Carlos White (right) speaks with entrepreneurs at Dallas Startup Week. [Photo: Red Wave Media]

To date, White said, the mayor's franchise initiative has been developed through an advisory panel of franchising experts, including Tim Williams, chief franchise officer of the $20 million-a-year Williams Chicken Company in south Dallas. A committee has been convened.

The initiative also provided entrepreneurs with successful operational, marketing and legal strategies, and helped them apply for over $1.5 million in overlooked tax credits to help grow their businesses.

Additionally, White said the initiative is in partnership with AltCap, a community development financial institution. AltCap provides entrepreneurs with up to $250,000 in debt financing and up to $1 million in revenue or equity-based financing.

“Franchising is not a panacea,” White said at a city event in August.

But some people doubt that it's worth trying.

Franchise panelist at DSW2023 in September. From left: Janelle Wright (PureNRG Cycle), Greer Christian (PureNRG Cycle), Jessica Taylor (Ezra Coffee) [Photo: Red Wave Media]