Frank Rice

In 2009, Sports Illustrated published an article stating that 78% of NFL players are bankrupt, divorced or unemployed two years after retirement. However, former NFL defensive back and current Vice President of the NFL Player Engagement Organization, Troy Vincent found that players were not financially strained directly after retirement, but four or five years down the line, many did not have a plan and were not making an effective transition from the league to real life.

One player who serves as a prime example of how to make a successful transition after retirement is business owner, artist, and modern day renaissance man Frank Rice. After his NFL career was cut short due to an injury, Rice utilized his entrepreneurial acumen, which he gained from his father who bought his first store when Frank was in high school, to build a business and brand that would sustain him long after retirement.

During his football career you would have found Rice on the field on any given Sunday, but now, on any given Tuesday, he can be found engaging with customers at any one of the five Popeye’s restaurants in his family’s fast food empire. Other times, you may find “Fresh Frank,” as he was known on the TV One reality series The Ultimate Merger, with model Tocarra Jones, reading scripts, writing, acting, or producing music on his independent label Avari Music. Recognizing Rice as someone who’s carved out his niche in the business world, BlackEnterprise.com caught up with the sports entrepreneur to discuss his various ventures.

How was it initially making the transition from playing in the NFL to helping run your family’s fast-food franchises?

The transition was natural for me. It was something that I wanted to do once I stopped playing football anyway. I grew up working in the family business, which started out as a Pioneer supermarket in the ’80s, and paid close attention to how my dad ran his stores. My dad had two stores while I was in college. I acquired three more after I started playing in the NFL. I have been very successful since taking on more responsibility. We’re very proud of our first store, which is actually rated No. 3 in the Los Angeles market right now.

You also serve as Treasurer of the NFL Players Association in Los Angeles. How did that come about?

Once I came back to California after playing football, I started going to the NFL Players Association meetings. Some of the guys are about 60- or 70-years-old. I was the youngest guy there but they made me feel welcome with feelings of football camaraderie and brotherhood. At one of the meetings, we were voting on some things and someone suggested getting some of the young guys more involved. They then chose me as Treasurer.

As Treasurer, what do your duties entail?

My duties are related to anything financial that goes through the LA chapter. I hand out the checks, make sure the books are balanced, and report to the group at every meeting. It’s something that I take very seriously and I’m looking to develop the LA chapter and make it the best of them all.

Do you think that it helps that you were a former NFL player?

Definitely! I’m sensitive to a lot of the players’ issues. Many times, with the pressures of the game and trying to focus on being a perfect player, you don’t really want to deal with a lot of the other stuff, including policies and procedures I oversee. It’s good to have someone that you trust, knows what you go through, and can give you the meat and bones of what you need to know.

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"Fresh Frank"

Given all your success, why did you decide to go to reality TV with The Ultimate Merger?

When the opportunity came to me, I said, “Why not,” just to see what would happen. Growing up in California, one of the things I’ve always wanted to do was be in the entertainment industry and work in Hollywood; nonetheless, I had to put all those things aside because of my football career and the family business.

When I got back to LA, I connected with a friend, a casting director and former NFL player, who helped place me in football commercials. After getting a couple of checks, I thought, “Man, I can really do this.” I then had some pictures taken, started sending them out, and started to get calls back. Two of the calls that I received were for roles in The Ultimate Merger and 1,000 Ways to Die. With both shows being nationally televised, things just steam rolled from there… It’s kind of surreal because all these things I wanted to do growing up are happening and I’m truly living my dreams.

Because of your appearance on the show you got dubbed “Fresh Frank.” What are your strategies and plans for this newfound brand?

I’m currently working on building the brand by getting my logo together and I am also working on a concept for a reality show called, Fresh World. It will follow me and show viewers what I go through in the store, dealing with customers, family, etc. Some of it is comical, but some light needs to be shed on some of the things that go on in the neighborhood in regards to crime and poverty issues. It will also show how I’m trying to pursue acting as a career and manage my business at the same time.

I think it will be interesting because people have known me in the Watts community for over 20 years now. My mother is a teacher and had some of our customers’ kids as her students so it’s like a family there. My dad has done a lot to make the community better as well. The people love him there and we love them so I think there is an interesting story to tell.

What else do you have on the horizon?

I was talking to my publicist about doing some work with The Game on BET because it reminds me of my past life. For example, being married while in the NFL. I’m also currently taking acting classes in order to become a more versatile actor. I’m trying not to just leave myself in that reality role but show people that I am more dynamic.

Do you have any advice for other players looking to travel down a similar path once they retire?

NFL players take for granted the amount of money we have while we’re in the NFL and that’s what I would like to teach some of the younger guys. I think that four or five guys who make the league minimum can get together and start a business. They can then expand from there and have something to sustain them once their football career ends. All athletes, not just football players, should invest in a business that they believe in while playing. They need something that will prepare them for their future.

While sorting through opportunities with a franchise consultant, the 48-year-old quickly learned that franchise costs ran from about $50,000 to $200,000. She was particularly drawn to home-based opportunities because they tended to be on the lower end of the cost spectrum, which would allow her to start small and grow her business over time. Using about $80,000 in savings to cover startup costs that included the $35,000 franchise fee, Gill purchased a College Nannies & Tutors franchise that provides nanny and tutoring services in October 2008. She officially opened College Nannies & Tutors of Bethesda in February 2009. Her territory consists of the Maryland cities of Bethesda, Chevy Chase, Rockville, Potomac, and Cabin John, and also Washington, D.C.

In 2009, the business, based out of her Laurel, Maryland-home, grossed $131,000, and in 2010, it had nearly tripled its revenues to $348,000. This February, Gill signed a lease for outside office space and is now based in Bethesda, but she admits that starting from home proved to be a sound business strategy. “Working from home allowed me to accumulate funds and take my time to find the right location,” she says. Gill is one of many who have found success in home-based franchising. And while that success is never guaranteed and many such ventures fail, franchising remains a popular avenue for wealth generation.

In the 2011 Franchise Business Economic Outlook, PricewaterhouseCoopers (PwC) projects 784,802 franchised businesses to account for nearly 8 million jobs and $740 billion in economic output.  “Concepts that require less startup capital may be more attractive for some entrepreneurs in this continued challenging credit environment,” says Matthew A. Haller, a spokesman for the International Franchise Association in Washington, D.C. For that reason, black enterprise decided to highlight a pair of home-based franchise opportunities from our 40 Best Franchises for African Americans (see www.blacken terprise.com/lists/franchise-list), and detail how to maneuver pitfalls and identify the right home-based business for you.

FINDING OPPORTUNITIES, WEIGHING COSTS
If you’re looking for franchises that give you the option of working out of your home, start with service-based businesses, says Rick Bisio, a franchise consultant and the author of The Educated Franchisee: The How-To Book for Choosing a Winning Franchise (Bascom Hill Publishing Group; $18.95). Food service and product-oriented franchises typically require a storefront or office to house inventory and interact with customers.

According to PwC, franchises that offer personal services, which include education, healthcare, entertainment and recreation, laundry, and transportation, will see a 2.5% increase in the number of franchise units this year. On the other hand, those offering business services, such as employment help, tax preparation, and office administration may actually see opportunities decline since the number of units is expected to decrease from 92,937 units in 2010 to 92,714 units in 2011. To ensure that you’re dealing with a reputable franchise operator, ask for a copy of their Franchise Disclosure Document (FDD), a form that provides information about a franchise and how it is run.

Home-based franchises have lower build-out costs because you don’t have to create an environment where a customer can come and visit. You also have lower fixed-costs since you don’t have to pay for rent or utilities outside your home, or hire staff to man the front desk. That translates to a faster time to market.

STAYING FLEXIBLE
When Krista and Bill Roberts acquired their Abrakadoodle franchise in 2005, they chose the home-based route for the low overhead. But when Krista became pregnant, the couple realized the franchise could also provide flexibility, along with earning power. With Abrakadoodle, “you plan your day and you plan your schedule,” says the 37-year-old Krista of the business, which develops art education programs for children. “Some owners do a lot of summer programs and camps, while we’ve decided we’re going to focus on the school year programs because I want the summers off to be with my kids.”

Having spent $35,000 to purchase their initial territory in Bergen County, New Jersey, the couple purchased a second territory in neighboring Essex County in 2008. They ended 2010 with $134,000 and project to gross $200,000 by the end of this year.

But while Krista can take off in the middle of the day to take her children to the doctor, she still has to carve hours out to sell the benefits of her art programs to after-school program directors. At first it was difficult keeping 4-year-old Karly and 3-year-old Benjamin from having free reign in her office, but eventually the couple created work–life boundaries. “Our business is based in the basement of our home and we try to keep it that way,” says Krista. “Our kids don’t go in there. It’s the office and they know that when mommy or daddy are downstairs, they’re doing work.”

The Robertses also discovered that home-based businesses had a marketing disadvantage. Unlike storefront offices with signage and street visibility, home-based franchises have no physical presence to consumers. “Most home-based franchises will require that the owner do a lot of marketing and sales whereas if you’re in a retail-based location, customers come to you,” says Jania L. Bailey, president and chief operating officer of FranNet, a national franchise consultancy based in Louisville, Kentucky. In addition to doing direct mailings and advertising, the Robertses got around that challenge by using Facebook and Twitter to spread the word. They also sought out partners in well-trafficked locations to develop art programs with.

Despite the challenges, many home-based franchisees say the good outweighs the bad. “There’s a feeling of empowerment and confirmation that I can make a life for myself and my family, on my own and not be beholden to the limits and lack of fulfillment a corporate career often provides,” says 39-year-old Bill.

The Robertses also plan to eventually open an outside office once they find the right location, but like Gill, they are happy with the financial growth they were able to capitalize on thanks to the low overhead costs associated with a home-based business. “I think the biggest misconception about home-based franchises is that they can’t make the kind of money they need to make,” says Bailey. “A home-based franchise can be a very lucrative business if you pick the right one.”

That’s why the Joneses set up a 10-year plan with a financial adviser during Tony’s playing days and invested in several entrepreneurial ventures, including restaurants, shopping malls, and a barbershop. The couple also managed to save about 95% of Tony’s salary and lived in relatively moderate 2,000- and 3,000-square-foot homes during his playing days. Tony focused on developing a long-term savings and investment plan early in his career, and the family lives on the income generated from their small business investments.

This frugality enabled the couple and their three children to live comfortably in a sprawling $2.85 million mansion in Duluth, Georgia. And perhaps the best part: They were able to fully pay off the mortgage on their dream home. “We followed all of our plans up until he retired and we met our 10-year goals four years early,” says Kamilla, 42, adding that she was never worried about Tony mismanaging the $15 million to $20 million he earned over the 13 years he played in the NFL. Tony, 45, is a two-time Super Bowl champion who began his NFL career in 1988 with the Cleveland Browns and ended it with the Denver Broncos in 2001.

Among the family’s entrepreneurial investments is Salon Studio Suites, which offers 20 individual mini-salons for hairstylists and other beauty professionals under one roof. Launched in 2005, Kamilla’s business generated about $200,000 in 2010. Since she opened the business, current NFL and NBA players along with business executives have approached Kamilla about becoming a franchisee, and she has even helped seven people open salons around the country. “That’s what made me even think about franchising Salon Studio Suites, because it’s a need and people are coming to me because of my success and my track record,” says Kamilla. However, neither Kamilla nor Tony knew what it took to become a franchisor. Then they discovered the Professional Athlete Franchise Initiative.

PAFI educates professional athletes and their spouses about the franchising industry and encourages them to take control of their assets by setting themselves up with their own businesses as they approach retirement. A partner of the International Franchise Association, the industry trade group, PAFI founder Michael Stone, who retired from the NFL in 2008 after hip surgery, created the initiative in January. Stone says many athletes are entrepreneurial-minded but “make the mistake of trying to start a business from scratch.”

PAFI held a summit in July, which Tony and Kamilla attended. A key element of the program focused on how professional athletes should handle their personal finances. The sessions revealed why it is important for entrepreneurs not to commingle personal assets with business finances. “The business stuff, you can write that off, but the personal stuff you can’t. We turn everything over to the IRS and if they see things on the personal side they start to question, ‘Well, what is this for?’ So it’s important to keep things separate,” Kamilla says.

George Tinsley Sr., a PAFI board member and a KFC and T.G.I. Friday’s franchisee, says individuals using entrepreneurship as a way of building wealth often achieve quite the opposite when they mix personal and business’s finances. “They spend the cash flow and get themselves in trouble,” says Tinsley, who is a past president of the NBA Retired Players Association. “First thing people do is take the money from the business and buy a brand-new car or a brand-new home, and it’s really not their money to do that. It really belongs to the business.”

How They Did It
Create a long-term personal financial plan and stick to it. Tony’s financial planner provided the couple with a sound piece of advice that encouraged them to be debt-free: If you can’t take money out of your pocket and pay for it in cash that means you can’t afford it. Kamilla says they squirreled away most of Tony’s NFL earnings and lived off about 5% of it—roughly $750,000 to $1 million—while he played. She says they realized that NFL careers are short-lived and they didn’t want to incur a lot of debt during his retirement. “We live better now that he’s retired than when he was playing football,” Kamilla says.

Structure your investments to complement your lifestyle. An establishment like Salon Studio Suites requires very little of Kamilla’s time and she doesn’t have any employees to manage, allowing her to spend more time with her family. On the other hand, if she were a fast-food chain franchisee, she’d have to be there daily and constantly monitor the cash registers and workers. “You’re going to have to pick something that you’re going to enjoy doing every day,” Kamilla says, otherwise you could lose motivation and the business could possibly fail.

Allow your investment to grow. The first three years of a business are critical and even though it may be tempting to pull money out during that time, Tinsley says don’t. “In setting your business up, you definitely want that business to be able to take care of itself and flow on its own merit. Let the cash reserve and the business keep itself going and if it’s growing, it grows out of its own entity.”

(Image: ThinkStock)

Despite the plethora of successful franchises, there are those that fail. According to author and franchise expert Bob Phibbs, many fail simply because the franchisee doesn’t understand what’s involved and whether or not they’re a good fit for a pre-packaged business model. “You don’t play in a franchise just like you don’t play in a business,” says the author of The Retail Doctor’s Guide to Growing Your Business. “I mean, it’s a lot of money.  It’s a lot of time and you want to succeed.”

As COO and later CMO of It’s A Grind Coffee, Phibbs helped grow the business from start-up to a franchise with more than 125 locations nationwide. Before pursuing franchise opportunities, he recommends asking yourself the following five questions:

• Do I really know what a franchise is? It’s essentially permission to sell a company’s products or services within a certain territory in the manner that the company outlines in its Franchise Disclosure Documents (FDDs). “All a franchise does is it cuts the learning curve,” says Phibbs. “You can join a franchise, and you look like a business that has been open for five or ten years. They tell you, this is the [point-of-sale] system we use, this is the marketing, all of the diagrams for signage—all of the stuff the independent has to spend hours and weeks and days on is done for them.”
• Is franchising right for me? Being entrepreneurial can be a double-edged sword when it comes to franchising. Generally, there’s little to no flexibility with the business plan. Operations must be conducted according to a predetermined plan and a franchisee typically must use the parent company’s suppliers. A self-assessment will determine whether you’re really comfortable giving up some control to a franchise door. “Because a lot of independent guys, a lot of guys or gals will buy a franchise and then think that they should be able to do whatever they want when quite clearly, the franchise ties you down and says, ‘no, this is it,’” points out Phibbs.
• What’s my motivation? “You don’t do this to fill a hole in your own life,” Phibbs advises. If the potential franchisee is looking for a distraction from real-life issues, this is probably not for them. If you’re not passionate about the business, you’re less likely to be hands-on, and many such ventures fail due to lack of oversight by the franchisee. “It’s always shocking to me, people will buy a franchise, spend the money, and then give it over to their daughter to run, or worse, think they can hire a manager and most franchises aren’t set up that way,” he says. “You’re paying a six percent royalty and it’s going to take it a while to get off the ground.”
• Do I have enough money? This may be a no-brainer to ask, but many startups fail because the founders didn’t properly calculate how much capital would be needed. The same goes for franchises. “There are always cost overruns. There are always permits.  There are always delays, etc.,” says Phibbs. He recommends having access to double the initial franchise fee to avoid a cash flow crunch if there are delays in opening or business starts off sluggish.
• Do I know enough about the product or service? Phibbs cites the popular coffee franchises as an example of an often misunderstood franchise model. “People were so enamored with the coffee business, like it would be like Cheers with coffee,” he says. “Yeah, well, it’s not quite like that because 90% of Americans drink their coffee before 11 a.m. So, what are you going to do with the other 10 hours you’re open?” A potential franchisee has to be 100% committed to the venture—and not simply look to sit on the sidelines looking to collect money.

Small business is BIG BUSINESS at the 2012 Black Enterprise Entrepreneurs Conference + Expo hosted by Nationwide, May 23-26, at the Hilton Chicago Hotel in Chicago, IL. Expect innovative sessions, high-powered speakers, and an early peek at the products, trends, and services you’ll need to stay ahead of the curve. Beat the March 16 Early Bird deadline to get a $200 registration discount at www.blackenterprise.com/ec/! And be sure to nominate your company or another business for our Small Business Awards! Want to pitch your business idea and win $10,000? Don’t miss the chance to enter our Elevator Pitch Competition before March 30 to qualify for the $10,000 grand prize. To register and find out more, visit www.blackenterprise.com/ec/

Jamawn Woods went from dreams of being a restaurateur to opening three Soul Daddy locations (Image: NBC Universal)

The aura surrounding the new Soul Daddy restaurant in New York City was electric, brimming with the personality of newly minted restauranteur Jamawn Woods. Woods effortlessly posed for pictures, signed autographs for fans, and managed requests from the press. Yet, the winner of NBC’s America’s Next Best Restaurant was also all about his business, tending to various tasks as diners enjoyed his healthy soul food – the stellar concept that won the judges over.

After facing unemployment, and catering for six months out of his home, Woods won a spot on the reality series based on pictures from his Facebook page. Now this Detroit native is living his dream of providing nourishing comfort food to the masses through Soul Daddy locations in Los Angeles, Minneapolis and New York. Woods took a break from serving and greeting to share insights on his miraculous transition with BlackEnterprise.com. —Alexis Stodghill

What was it like being on America’s Next Best Restaurant?

It was a good experience; but at the same time, it was stressful for the simple fact that you are cut off from the world. A lot of people don’t know that about reality TV. That part was stressful, but worth it.

What was your greatest lesson learned?

Be yourself, no matter what. That’s something Bobby Flay told me. You have to be yourself so people can identify with your restaurant. That’s one of the reasons why I am receiving so much love from the people. They feel at home when they meet me.

What was the greatest challenge you faced in the catering business?

The biggest challenge was money. It takes money to start anything. I wasn’t employed, so I just stepped out on faith, scraped up all the money I had, and bought the supplies I needed. God blessed me and kept money coming in.

How does making the transition to being a large restauranteur feel?

It feels great, of course. To have a chain of restaurants, three restaurants in three different cities, to have employees working for you, it’s amazing. Just to watch my crew work feels good!

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Jamawn Woods gets to work in the Soul Daddy kitchen (Image: NBC Universal)

The Soul Daddy company put my team together. The judges are also investors, and they knew what would happen when someone without management experience won, so they made a plan and made sure I had a team around me. I had the option to just be a founder–be the face of it and not work –or be inside the restaurant and work, [which is] what I wanted to do. I have a general manager I’m training under as an assistant general manager. Then I can become the general manager of whatever restaurant I move to. That will be my role, but I’m also the Soul Daddy founder.

How did you come up with the idea of “healthy soul food”?

I learned to be conscious about healthy food on the show. Sometimes African-Americans don’t care enough about what we eat. We want to make it taste good, throw some of that bacon grease on there, all that. Once I got on the show, Lorena [one of the judges] brought up this point. She really liked the concept of soul food, but it’s heavy in calories. That really woke me up. I thought, “I’ve got to do something about this.” That made me start doing my research.

Speaking of healthy food, what do you think of First Lady Michelle Obama’s healthy eating programs?

That’s one of my ultimate goals, to reach out to First Lady Michelle Obama. I would love to have her try out Soul Daddy to show that I see her vision. America does need to eat healthier.

Is the name Soul Daddy inspired by your father?

Definitely. All my love for cooking came from my dad. He always had a little saying: “Never depend on a woman to cook for you.” It’s no knock towards any woman. It’s just for the simple fact that if your woman gets mad at you, and you can’t cook, what are you going to eat? It always stuck in my head and I always watched my dad in the kitchen.

Being from Detroit, what do you think of the difficult economic situation there?

I love my city. I’m hoping that my story and the little success that I’m gaining can help inspire the people of Detroit to want to do better and bring our city back to the old Motown days.

What’s next for Jamawn Woods?

I’m just focused on these three restaurants. It’s hard when you’re running one restaurant. Now I have three. So I’m focused on these three, making sure they’re up and running, and that they’re a success.

 

(Image: ThinkStock)

Purchasing a franchise is one thing, but converting your small business into one is another. Here are 5 things any entrepreneur looking to franchise his or her business concept should know beforehand. Take this info into consideration to avoid the risk of failing twice with one venture.

1. Is this a good idea? Is your product or service marketable across the country? How about across the globe? What makes your company distinguishable from others out there? Is what you do teachable?

2. Law and order. Connect with a franchise attorney through the International Franchise Association (www.franchise.org), a Washington, D.C.-based industry trade organization. An attorney will help you ensure that your business is structured to transition into a franchise.

3. Play-by-play. If you haven’t already done so, create an operations manual. A consistent protocol is a must. It takes ample time and capital to become a franchiser. Make sure you have both.

4. Are you ready? Will you need a loan? Do you have the funds to hire a franchise development staff?

5. No overnight success. You should have at least five years of experience running your business before you try to become a franchiser. It takes time to generate substantial revenue and measurable growth to use as leverage.

Looking for ways to expand your business’ reach? Join us at Black Enterprise’s annual Entrepreneurs Conference, taking place May 22-25, 2011 in Atlanta, Georgia. Visit blackenterprise.com/ec for more details. As an incentive BE is offering you a discount on early registration: Just enter code BEDG295 and receive $200 off. Don’t miss this opportunity to receive valuable strategies and resources to help take your business to the next level.

Do look for franchises that have good relationships with their franchisees. Also, consider the franchisor’s reputation for fairness with its subordinates. You can find information on former and current franchisees in the Franchise Disclosure Document.

Don’t assume that just because you’re buying an established franchise that you’re buying a proven success. Remember even established franchises face issues over time.

Do keep good records of your research, including all your conversations and dealings with franchisors. Staying organized is key.

Do learn how the company deals with purchasing programs. Franchising offers potential buying power, and because a larger franchise system is able to buy in great quantities, it should drive the cost of doing business down, but this is not always the case.

Don’t sign any agreements or contracts without having a lawyer and accountant look over them first.

Do assess the franchisor’s business and marketing plan as it will give clues about the level of franchisee support you’ll receive.

Do make sure you have significant market protection and that your franchisor and other franchisees don’t unduly compete with you.

Small business is BIG BUSINESS at the 2012 Black Enterprise Entrepreneurs Conference + Expo hosted by Nationwide, May 23-26, at the Hilton Chicago Hotel in Chicago, IL. Expect innovative sessions, high-powered speakers, and an early peek at the products, trends, and services you’ll need to stay ahead of the curve. Beat the March 16 Early Bird deadline to get a $200 registration discount at www.blackenterprise.com/ec/! And be sure to nominate your company or another business for our Small Business Awards! Want to pitch your business idea and win $10,000? Don’t miss the chance to enter our Elevator Pitch Competition before March 30 to qualify for the $10,000 grand prize. To register and find out more, visit www.blackenterprise.com/ec/

(Image: Shutterstock)

The Atlanta Post correspondent Isidra Person-Lynn caught up with franchise owners Edward Barnett and Karim Webb at their Buffalo Wild Wings franchise in Los Angeles to discuss their experience with franchise building and entrepreneurship. The men detail why they chose to go with the family sports bar franchise, the importance of doing good business and market research, and filling a void while doing something good for their community.

Read more at The Atlanta Post …