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Airborne intelligence: know who keeps up with the goings-on of a franchise? The advisory council

Entrepreneur, Oct, 2002 by Devlin Smith

WHAT'S ONE OF THE BEST THINGS YOU can do if you join a relatively small system? Sign up for the franchise advisory council. When Arnie Klingenberg joined Worldwide Express in 1996, he was one of the company's first franchisees, so joining the franchisee advisory council was pretty easy. 'At that point, you could pretty much ask; now it takes a nomination and a vote," the Edgemont, Pennsylvania, franchisee explains. "The first year, there were only 10 [franchisees], and five of us were on [the advisory council]."

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Joining the council was important to Klingenberg, 36, because it gave him the ability to have a say in decisions that affect the entire franchise, which sells Airborne Express overnight shipping services. "It keeps me much more in the loop," he says. "Considering we only sell Airborne Express, the way we deal with them, the rates, service and level of communication with the local stations and personnel are huge issues, and I want to be involved."

In January, Klingenberg became even more involved when he was elected president of the council, a move he feels will further benefit his franchise. "I've stayed very close to the people handling the training and the negotiations with Airborne, so I have a much better grasp of what's going on within our system," Klingenberg says. "That helps when you're making decisions on a local level. You know what's coming down the pipe, in areas where other franchisees might not be paying attention."

The Other Shoes

MAKING THE LEAP FROM FRANCHISE SELLER TO FRANCHISE BUYER

DURING HIS EIGHT YEARS WORKING IN the corporate offices of J.D. Byrider, a used car dealership and financing franchise, Jim Thompson had done pretty much everything there was to do, from opening new stores to selling franchises. "You know how to run it--you see people who have succeeded and know all the secrets. It was a natural progression for me to do this on my own," says Thompson, 33.

Before leaving headquarters, the former vice president of franchise development persuaded one of his employees to partner with him. "He came from the finance [industry], I had the franchise background, and the mix just seemed perfect," Thompson says of Jim Kagiliery, also 33.

In 2000, the pair opened their first J.D. Byrider unit in Jacksonville, Florida, with Thompson acting as president of the dealership. Kagiliery acts as president of the finance company, a franchise called Car Now Acceptance Co. that's co-branded with J.D. Byrider. Thompson and Kagiliery currently own three franchises in Jacksonville and plan to open two more soon.

The transition from corporate employee to franchisee has been a welcome one for Thompson, who majored in entrepreneurship in college. As a student, though, he didn't foresee himself running a chain of used car dealerships. "I wrote my final paper on running a gym, but you have so much overhead, it's not very profitable," Thompson says. "Once you get out in the real world, you find where the money's made."

Business Services Industry

Airborne intelligence: know who keeps up with the goings-on of a franchise? The advisory council

Entrepreneur, Oct, 2002 by Devlin Smith

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