All Things Franchising With Color Glo President Gary Smith

Have you ever dreamed of one day owning your own business, but you just don't know where to begin? Then you've tuned into the right show on all things franchising. In this interview with our very own, Gary Smith, you will hear why national franchisors, successful franchisee attorneys, CPAs, and others who support this fast growing business model.

On to the Interview

Interviewed by Linda Ballesteros. Linda is a host of All Things Franchising and also the owner of Mpower Franchise Consulting where she works with those who want to be in business for themselves but not by themselves with the franchise that best fits their skills, passion, and what they want their lifestyle to look like. She is also very aware of those industries which are more recession-resistant.

Linda

Hey folks, welcome to all things franchising. This is Linda Ballesteros. I'm your host today. I am so honored that you are spending some time with me today, whether you're listening to the recording or you're listening to us live, I appreciate you carving some time because, in this day and age, we have so many things going on. We're pulled in so many different directions. So I'm always honored when somebody decides to spend some time because remember time is that one commodity that you just can't get back. So today I'm going to proceed forward with introducing you to franchise concepts that are not burgers and fries. You know, I always say these franchises are so much more than just burgers and fries. So when we start looking at the franchise, industries, and the categories, you would be surprised which categories, which industries have chosen the franchise model as a disparate distribution method.

Franchising is nothing more than that. So don't get all wigged out about the franchising as something that may not be successful because you are from very far from being right. That is the farthest from the truth. This is what I'm trying to say because there are so many industries out there that are represented using the franchise model. And again, it is just a way to distribute a product or a service. So today is going to be a perfect example of that.

Our guest today is Gary Smith. Gary is the president and the chief operating officer of color glow international. Yes, franchising is international. So think about that. There are no boundaries on it. Color Glo is the world leader in the restoration and repair of leather vinyl, lure, cloth, and hard plastics commonly found in the markets of automotive aircraft, Marine, and furniture. Please help me in welcoming Gary to the show, Gary, welcome to the show!

Gary

Well, thank you. And it's great to be here.

Linda

Well, I am glad you are here as well, because so many people that are not familiar with the franchise model, they, they think that maybe it's just burgers and flight fries, or maybe it's just a quick lube or, you know, some of those that they don't realize how many different products and services are distributed through the franchise model. So Gary, before we get too much further, tell me a little bit about your background and where Color Glo came from.

Gary

Well, Color Glo in my background goes back almost 45 years, Linda. We actually are a third-generation family business started many years ago by my father. And along the way, you know, he brought my brother and I along into the business. And then along the way further, I brought some of my family in the business and the fourth generation is hanging out in college and I'm sure that they will perpetuate the business as well. And where do we come by to get into this business? Well, because, again, going back, my, father saw the opportunity that people needed to have some independence back when we started, there really wasn't franchising. It was more of a distribution-type network. But back in the eighties, when franchising got going, that's when the vision said, that's really what we need to do to help people succeed because they need the support. They need the backup that helps an individual be successful and franchising Linda.

Linda

And so where, where was the interest in the restoration, the repair of leathers and fabrics. Where did that come from?

Gary

It came from the input from working in areas that people would be working in the car lots. And as you would look at this, you found that there were other services being provided. Linda, there were services such as touch up. There were services that were just detailing and cleaning. There are actually people who take care of the wheels on that. And we said, well, wait a minute, who's taking care of the interior? Even though you would detail out a car, it's still, maybe didn't look good. It may be, he still had a tear. Maybe it has some fading, maybe the roof didn't look bad, maybe there was a crack in the dash. So somebody said, and we said, there’s got to be a way to do that. So we went and found a chemist and w, got to work and we came up with a product line that would be water-based environmentally friendly.

And along the way, we just increased that with more and more products to do the repair and restoration that led us from the car industry, into the Marine industry, then into the furniture industry, and finally into the aviation industry. We actually have a repair station located in Wichita, Kansas that allows our wonderful partners to do aircraft. And I think that's a big factor out there for them, but going back, it really comes down to seeing the vision that you need an environmentally friendly product. You really need to have a chemist on staff. And one of the things we found along the way to end it for our particular industry, if we're going to be good at what we do, we need to manufacture what we make for our customers, for our partners.

Therefore, a number of years ago, we became an ISO 9,000 manufacturing company - the only one in the industry. All those factors brought us to the table of making all those materials and the cars and the planes and the boats and furniture. And as you mentioned earlier in the conversation, if it's cloth, leather, vinyl, hard, plastic, Color Glo has an answer for that customer base out there. And our partners have the knowledge and training to make that come back to life and restore it. Firstly, environmentally friendly, we're saving the environment. We're not throwing things away. We're making it last longer.

Linda

Absolutely. And these days that's such an important thing that, uh, well, it has certainly become more important these days, especially as we look at recycling. I think this next generation especially is more sensitive to recycling and keeping things a little bit longer and maybe not having as many things. So what you're doing is certainly valuable in, I mean, you could call it recycling couldn't you?

Gary

You could call it, we are saving the environment by doing it. One thing we have found along the years, uh, which we find very interesting, Linda, and I certainly would like to share this with your listening audience, but a color goal we've learned we're actually recession-proof. We've been through a number. And actually, when that occurs, those who own material like cars and boats and planes and furniture will spend money to keep it looking better, longer because we are concerned about where our expenditure is going at the time, but we still like nice things around us. One thing that was interesting in this particular past year, which I found fascinating is not, we always thought we were recession-proof that we found out that in some sense, as we're pandemic proof. Our customer base (our partners) actually grew during this time, we were blessed to add some new partners during this time. And they were able to hit the ground running. And again, there is a great need. There really aren't enough wonderful trained partners out there probably to take care of all the needs of a population out there. Because again, you know, it only takes 10 car dealerships for a partner to be successful out there, Linda.

Linda

Wow. So let's talk a little bit about that. It sounds like you refer to your franchisees as partners, which I love, um, it makes it feel like they're, you've locked arms with them, so to speak in this, in this journey for them. So as you're looking for prospective partners, Gary, are you looking for someone who has been in the reupholstery business? Are you looking for someone who has maybe had worked with reselling cars? Who are you looking for?

Gary

The real simple answer to that, Linda, is we're looking for, an individual who says to themselves, I really want some independence. I want some more personal time in my life. I want to spend more time with my family. Um, I'm tired of punching the daily time clock. Uh, I really would like to be my own boss, but not quite sure how to go about doing it currently learn about franchising, and at end of the day because they want these desires. They become a possible partner for us. They don't need a background in anything at all. Some of our more successful partners maybe came from a simple walk of life. Uh, I have a great guy who actually came from managing a burger King at one time. He wanted to get away from that rat race. We've had the people who worked for a car dealership and said, okay. ‘And you're correct’ I think I like to get away and do this on my own.

But we also had people who stepped down to the quality of life, where they were, you know, working in industry and management, maybe they were working under someone, um, all ages. There is no stop to how old or how young you need to be, to be able to do this because, with our training, you can't be colorblind Linda. That's the one thing we do have to share with everybody, but with the training, they're actually able to - from any walk of life. And what's interesting, if I may share a little bit further, is because we bring it in on a family structure. As the years have passed, we actually have seen where the kids have grown up under their parents and the kids have actually come and taken over or became involved in the business with their parents live it.

Linda

Oh, that's nice. That is nice. That just continues it in such a great transition. So Gary, if you're not looking for someone with some type of experience, how do you train them? What does that look like?

Gary

That is the wonderful thing about Color Glo. When they decide they want to, and they've spent a discovery day with us, so they get a chance to do the work and meet the group and all those good things. So they get, you know, we have the kind of a good feeling for each other, uh, and make the decision to move forward. Then they are provided three weeks of training. We do two weeks here in Minneapolis, but it is not in a big classroom. It's just them and the trainer. So each day it's one-on-one working at their pace, going through the process, going through the training, learning how to do all the products and equipment in-house in the field, uh, until they feel comfortable. And once they get that point under their belt, then they go home, get their van and get all setup or the pickup they're going to use, uh, and signage.

It gets on there. And then our trainer does fly in and spends the third week with them Linda. And that third week is where they're going out and utilizing the information and restoration and all the sales staff they've learned and put it to full application. By the end of the week, uh, generally they've picked up at least five to six Automotive accounts. So their businesses on the road, um, once they're even at the end of the third week, they're still not on their own. And we know franchising is the world to people out there because of the support. We actually… then the trainers available. We utilize an application called WhatsApp so they can visit back and forth with their trainer and other wonderful partners. Our partners are interested in their success. Often, they can spend time with a partner if it's nearby in their area for a follow-up or they have a question.

Um, I have a good story, a little bit there about, uh, if I might jump into real quick, but one of the newer partners was just out, going on probably six weeks now, and had a question about a color mixing and matching and was struggling a little bit with that. Eventually, we always get them because practice makes as good, but one of our partners is with a two-hour drive and they said they were willing to drive up and take care of the problem. Uh, the, um, of course, uh, got the, uh, new partner. I'm going to figure it out and they did, but this is the kind of support that our partners will offer to all partners that are out there. I mean, we're unique, maybe not unique, but we can serve ourselves somewhat unique because we do approach it as a family concept. And that's why we call people partners. And we have some of our wonderful partners who have been business with us for going on almost 37 years now, Linda.

Linda

Wow. That's, that's amazing right there. That speaks so much for Color Glo and the leadership team as well. So Gary, if, once I've been the training, do I need to have an office space? Do I need to have a small warehouse? What does that look like?

Gary

You know, that's a great question. And the wonderful thing about Color Glo, and thanks for asking that, is that we are mobile and because we're mobile and we go over where the customers are at - the nice thing for any new partner is at the end of the day, the only cost to run this business is the vehicle, their cell phone, and business insurance, the royalty they pay. And of course, products they use, but costs to operate a Color Glo business, never exceed 18 to 20% because they are mobile. They do not need a fixed location. They are able to pocket add 82% of a gross net in their pocket at the end of the year, year after year. And that is one of the blessings that allow them to achieve not only a high five or high six-figure income, depending on how much time they want to put into developing the business. I have partners out there who maybe don't put more than three days a week into a business and still walk home with a good six-figure income with us, Linda.

Linda

Wow, that's amazing. So once I've started, I've come on with Color Glo and I've got the vehicle. I'm all ready to go. Gary, how many employees should I anticipate having when I launch?

Gary

The world of Color Glo is that you really do not need employees. This is set up to run as a solo business. That does not mean that if you grow your business within the first year, you say, I want to share it with some friends and family members. You could do that. We know that it only takes 10 car dealerships to fill up your dance card. And then you actually have some of the warranty business that we do through the furniture industry. Uh, you have your website, but pretty much that fills up the week, the month. So now you want to expand. And that was great. But initially, I do not need employees. I probably would not go with employees. I might want to go where I can come up with a person to join me in a kind of creative, passive income. Maybe I share some of my areas with them and they would pay me a percentage for doing that.

That’s certainly a possibility that gives the other person a feeling of independence owning their own business too. But it also allows you to, you know, grow your business as you want to cover other areas. As we mentioned earlier in this conversation, Linda, I get in 10 dealerships. Uh, we haven't even approached the Marina market yet because I haven't had time. Uh, some of our partners will take and develop a business where they'll have dealerships, maybe one-third automotive, one through Marine, and they'll have one-third, an actual residential too. So in that question, do I really need the employees? No. Uh, can I actually add employees? Can I actually add independent people under me and pick up some passive income? That's very true. It's, uh, in place to do so when they're ready to do so.

Linda

So it's very scalable, um, to whatever degree they want. That's, that's nice to know that, you know, because initially, someone may be coming out of corporate, maybe a little hesitant, if you say you really need two to three employees and that can kind of, kind of scare people off. So when you're talking about, um, having dealerships who have been providing the dealerships those services before Color Glo? I don't know of another company that does what you guys do.

Gary

It really doesn't happen. I mean, you have the detailers to do the very best they can, right? Um, you know, we can add over the years or certainly mom and pop, or somebody thinks of an idea that um, you know, you can go and pick up a spray can of something and maybe I can touch it up, Linda. At the end of the day, the market is so vast. And I think the best way to look at this is not so much just the automotive market, but let's go back to what we know is that we have products to take care of cloth, leather, vinyl, and hard plastic. And so that is certainly… we've been talking automotive because that's how we start the business. But at the end of the day, everything we look at is made of that material. And we may end up finding ourselves even as we go out and about our daily task and maybe go out for lunch, or maybe we go to the beauty salon, maybe we get a haircut.

Maybe we go to a chiropractor. Maybe we have a medical appointment. Everything in that place is made of that material and thusly, we have the ability to do that. So in answer to that question, no, there really isn't anybody who can do what Color Glo does that as well as we do, but there are certainly going to be opportunities for other players who can maybe find a way or, you know, try something uniquely. They think off the internet, which is only a plus for us because they have to call us to fix it. But, uh, end of the day, uh, it really is amazing that, uh, we kind of call a cupboard glow magic, our partners, uh, do such amazing things out there. Uh, I'm always amazed myself even after all these years. Linda.

Linda

Nice, nice. Now I know that you touched on this earlier, but, uh, folks, if you're listening to this recording, it's October the 27th of 2020, I need to get some sound effects that when I say the words, the twin numbers, 2020, it sounds like an organ or something like Dracula or something. I don't know. So you mentioned the pandemic. So tell me a little bit Gary, about how the pandemic may have changed, not just your partners in the way they deliver the service, but how have you as a leader of Color Glo changed the way that you interact with your partners?

Gary

Well, we actually have stepped up and followed up with them. We actually, uh, in the early part of the pandemic timeframe, we saw a need that was going to come down the pipe and we actually introduced a way that they could, uh, disinfect the vehicles for the car dealers. And it was a spray on a product, which is proved to be very successful for them. That way they can go and partner with them. We actually have been able to, through the chatter and the WhatsApp and training videos, update that for them. So they can actually have a better approach to their dealers. Certainly, they are required in many states too, and they wear masks when they work with the dealers. Uh, but at the end of the time, we found that even some of the areas that they could work in, such as restaurants were wide open because the restaurants were shut down, but it was a good time to go in and update the interior of the restaurant because you didn't have anybody there and you could work during the daytime and they could offer also the disinfection service, why they're in there doing it for the restaurants too.

So what we found in through the, I mean, we pretty much talked to every partner, at least once or twice during the month, uh, we follow up, they call in, we call them, but we have a good group in the, uh, a time before the pandemic, we would get together for regional meetings and that will come back someday here. But, uh, we were able to reach out and, uh, sometimes they say, say they now will, you know, travel and visit with each other a little bit to support each other to Linda, which is a blessing because we look at that as the family reaching out to help each other, uh, which as I said, as shown that, uh, our partners have been very, very busy during this period of time, it hasn't really, uh, missed a beat. I'm actually impressed to see that, uh, many of them are actually showing higher numbers than we even anticipated for this period of time.

Linda

Wow. Well that speaks so much, not just about the industry that you're in, that certainly has something to do with it, but it also speaks very highly of the leadership team of Color Glo as well. So kudos to you and your team, Gary, for keeping your partners plugged in. That's great. That's great. So, um, I need to take a real quick commercial break here, but, and I know you shared a quick story with us, but I tell you what, I just love hearing stories because I can better understand more about your products and service, but more importantly, how color Glo supports their franchisees as well. Do you happen to have another story in your back pocket there, Gary, you can share with us?

Gary

Oh, I got a few there. Anytime we should like one now?

Linda

Hi folks. Welcome back to all things franchising. I'm here with Gary Smith of Color Glo international. And Gary, I asked you if you had a story you could share with us, but before you do that, uh, if someone's listening and they are intrigued by what you're saying and the opportunity here, how would they find out more information about color glow?

Gary

What we would love them to do is certainly take a look at our website if they can take the time to do that www.colorglo.com. Uh, that's a bundle of information there, but I would love to people pick up the phone and just call me to, they can call directly at my 800 number, (800) 333-8523. Just ask for Gary Smith and I be full of energy and full of information for them. So there are two great ways to do it there, Linda.

Linda

Perfect. So you have a story to share with us, do you?

Gary

Well, you know, we've got a couple of them, but we'll, uh, maybe them one of my favorite ones is over the years we look back. But I think that's when it has a little humor to it, is it kind of speaks to what you don't know that Color Glo could do. It wasn't so long ago I had our partners in Las Vegas call and they were excited and they said, Gary, I said, yes. I said, do you have no idea what we're working on this week? I said that's true. Well, I said, what is it? They said, well, we're working on a thousand leather whips. And I think… a thousand leather whips from Vegas. Okay. So you got my attention and it turns out Linda that, uh, the largest Western movie supply house is actually located in Vegas. And if we're all familiar with Western movies or Indiana Jones movies, they need leather whips. And so wherever we take requires a fresh-looking leather whip and thusly Color Glo has the ability to restore and make those look great. So, and that's a fun story.

Linda

Who would have thought Gary, that, that they do the, that they need that many leather whips when they're filming a Western.

Gary

That's exactly correct. I mean, it's just outside the box. I mean, I would never have thought of that. I got a call from a partner out on the West coast and says, guess what we're doing today? I say I don't know. He said we're restoring a Marilyn Monroe mannequin. I said, really? I said, yeah, yeah. Her lipstick was showing badly, but at the end of the day, they picked up a lot more business. The stores we all go in there and we look at, uh, you know, our clothes in there on a mannequin and say, will it look good on me, but you know, if the mannequins don't look good, I don’t look good… outside the box on that. And one more I'll throw out here, which I think is fun is when we got our international partners in Thailand going, I always love this one. So we sent our group over there to greet, meet, and get the deal, and sign and train. And it turned out the training was set up at the King's palace. And they went out because the King wanted all his nice cars to look really good. And, uh, to this day, everybody still remembers that because when it came lunchtime, they brought the lunch out on the King’s China and served them lunch. Oh, we're doing the training. Yeah. No paper bags, no paper bags.

Linda

I love those stories. I just love that. And you know, folks, if you're listening to this there again, I just want to emphasize how this is such a creative and interesting franchise. Uh, if, if you get bored easily, I would think color glow would make sure that didn't happen. Because the opportunities sound like they're, they're pretty much endless aren't they, Gary,

Gary

They are endless. They're endless. I said, just think of it as cloth, leather, vinyl, and hard plastic, then immediately the world is open to you and there's no stopping you. There really isn't. I mean, it's amazing. I mean, we also have a boutique line where we do shoes purses as caché cases. And it's amazing what people will spend for a purse or a Louis Vuitton coach purse to restore it. Maybe the shoes, maybe they came in for the wedding party, wrong color. Uh, we can take care of that immediately as a quick fix for them. I mean, yeah. It's things that are beyond just what you normally would talk about as far as, you know, cars, planes, trains, and you know, aviation.

Linda

Yeah. Yeah. I love that. Well, we are down to those final three questions here. And the first one is if there is someone listening who is interested in and they're considering purchasing a franchise, what would you suggest that they do to prepare for the process?

Gary

Well, I always suggest they have to sit down and they need to take a look at what their business goals are, you know, and they have to see what their primary motivators, I mean, uh, you know, this is a, what is your profession? What's your financial position? You know, take a very good look at that. Uh, take a look at your business preferences too. I mean, what type of franchise do you want, and to do that, then, you know, you can reach out to the franchise or, but the reality is we're blessed today to have wonderful consultants out there, you know, such as your cell phone too. And they should reach out to someone who has familiarity with not only the franchise network, as far as what's out there, uh, but can help guide them through those business goals. And, uh, you know, Berlin's preferences. Uh, they also should take a good, hard look at what their financial capability is.

Uh, you know, what can they really approach and what do they think that they have available as capital? If you take a look at those and, you know, kind of get their list in order, then they can approach much more directly and maybe they don't want the brick and motor. Maybe they do want the mobile, maybe that,,, there's so many options out there as we know. But the nice thing is that when you're working with a consultant, you're actually given what a couple of different options to look at, which helps clarify, you know, this business, this franchise could be for me.

Linda

Yeah. Very good advice there. Absolutely. So the second question here is what are two traits that make a successful franchisee?

Gary

Well, that's another great question. And I've always looked at it in the sense there that no, they have to really kind of look at all walks of life when they come to it. And the biggest thing I think is desire, desire for independence. Uh, that's a great one. Do they have the drive to get them to the point where they can see themselves daily operating their own business? They have the willingness to daily. I mean, there's nobody that's going to say, Oh, you're late. You didn't punch in. So you have to have that desire and then a sense of drive to really see yourself successfully enter into a franchise relationship. Linda.

Linda

Absolutely. Um, because the great thing about a franchise is that you get to plug it into a system. Um, but the interesting thing is that I see some struggle with that plugging into the system. However, once the plugin, that's what they're paying for and that's what streamlines it. Don't you think Gary?

Gary

Absolutely. And through the validation process of talking to other franchisees or partners that are already in the business, they get that feeling that they can see themselves as part of the franchise group part and part of the team. The biggest thing you want to be is you want to desire to have that independence, but you still want to belong. You want to be part of something and you don't want to necessarily know gee, I'm the only one out there. I mean, that's the beautiful thing we had certainly over the years and coming up with the technology, as, you know, WhatsApp now allows instant, uh, you know, confirmation of what I'm doing and just chat. Certainly, we had the days of the phone, but that really makes a big difference for people this day and age as we go forward.

Linda

Yeah. And I tell you what, um, entrepreneurs, it can be pretty lonely out there. Uh, so being plugged into an organization that has other partners that you can reach out to, it definitely takes that away because it can be a little scary out there all by yourself.

Gary

It really can. And that's what you look at a franchise, uh, when you look at it, will it bring me that, uh, relationship type I'm looking for? I don't really want to be just dropped and Oh, I bought a franchise, but now, you know, Oh, I've got a little problem here. I could use a little help. I mean, great. We'll get the trainer back out there. We'll, we'll, uh, you know, as I mentioned earlier in our conversation, we at least talk to our partners once or twice a month, either through some format. And they're actually, uh, always invited to spend time with another partner. If they're within driving distance, uh, not too long ago, we got some of our Southern partners together for a little lunch. Then one of our head trainers down there actually a couple of consultants brought by two and, uh, we had a great time. So it's a, uh, it's a, it's a bringing together of everybody. So there are so many wonderful franchise concepts out there. I know you bring a lot to the table for your candidate, you work with, but at the end of the day, it's got to be the right fit, that desire again, that, uh, you know, drive that makes you say I could see myself being part of this one.

Linda

Absolutely. You know, Gary you've, you've got a lot of experience in franchising. The final question here is what does the future of franchising look like?

Gary

We are blessed to have, uh, the world of franchising is again strong because again, we are given the fact that franchising is really the backbone of the industry. If we look around the market area and everything we drive or pass around, we walk typically somewhere in our life. Every day, we're touched by a franchise, whether it's going to be, we eat something, we buy, uh, some type of service. We get, uh, there are so many opportunities out there to be successful because of the support through franchising. Uh, they have that independence that franchisee will only continue to grow and be stronger as we come up and look at independence and people saying, Oh, okay. I just, uh, I really want to have my own business and that, I think that's what drives franchising and always will there, Linda.

Listen to the entire interview on Blot Talk Radio

About Color Glo International

Color Glo International is the World Leader in the restoration and repair of leather, vinyl, velour, cloth, and hard plastics commonly found in the markets of Automotive, Aircraft, Marine, and Furniture.  Formally incorporated in 1975 Color Glo began franchising in 1982. Today in hundreds of markets throughout the world. Color Glo products are proven every day to offer the correct results and best value every time they are put to the test.

Contact
Mandi Brandon
mandi@colorglo.com

Own a franchise with CGI