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'When you have a dysfunctional business, you limit your exit strategies because your business is dependent on the owner not on a team,” says Z PLUMBERZ' Matt O’Rourke.

The Succession Plan

Sept. 1, 2022
Franchising could pave the way for a seamless transition—with other helpful benefits—for a smoother business plan.

The inevitability of an aging trade workforce can’t be denied. With more tradespeople on the verge of retirement, not to mention the global pandemic and an uncertain economy—with a neurotic supply chain—a look to franchising for a seamless succession plan might provide the answers. At the foundation of the plumbing industry is a home service built on legacy, featuring businesses that have been passed down from one generation to the next. Sometimes, this can create unforeseen challenges, and perhaps the most common issue relates to succession.

What’s Best for the Business

“We all want the best for our business but problems can sometimes arise when allocating portions to the next in line, who then look to do the same thing with their children when the time comes,” says Ed Miller, content manager, Zoom Drain Franchise, LLC. “But when dividing up the business, it can dilute the overall brand, making it no longer sustainable. Instead of splitting up and weakening it, why not bolster it and create an even stronger legacy? That’s where franchising can be so valuable to a generational plumbing business,” continues Miller.

Zoom Drain specializes in drains and sewers, and if it deals with wastewater, they deal with it—everything from sewer video inspections to drain cleaning and grease trap maintenance. And with almost three decades worth of experience, Zoom Drain has carefully crafted a model to consistently grow franchises.

According to Matt O’Rourke, president of Z PLUMBERZ, A BELFOR Company, a full-service plumbing franchise that uses the four verticals of plumbing drain cleaning, retail (service) plumbing, project plumbing, and trenchless technologies, “Many frustrations we find with plumbers is time management, training and delegating, which leads to a dysfunctional business. When you have a dysfunctional business, you limit your exit strategies because your business is dependent on the owner not on a team,” says O’Rourke. “We can bring structure and order through developing people and a brand image. We find implementing a succession strategy allows for a greater pool of candidates to continue the business going forward with little to no disruption.”

Continued Growth

For one Zoom Drain franchisee, working with his father—an experienced plumber—had long been on his mind. The concern was that bringing the “son of the boss” into the existing plumbing business at a management level would be upsetting, and potentially unfair, to the team that was already in place. Instead of “dividing the farm,” they decided to add a Zoom Drain franchise. This would support a succession plan and help them expand their business holding.

Since then, both companies have grown. They refer work, from one company to the other, and find economies of scale by coordinating administrative and operational activities.

Dave and Melissa Carlile, franchise owners, Heating + Air Paramedics, Greenwood, Ind., say that receiving the support from the Paramedics brands will not only allow franchisees to grow their business overall, but also will help to identify ways to increase bottom line profitability.

“This will drive the sale price up should we decide to sell our business in the future. Additionally, being part of a national franchise system with national brand recognition helps potential buyers know who we are and what we stand for. Working in the Paramedics system means that we have a team of people who are willing and able to advertise our business across the country if we want to do that. Lastly, if we decide to keep the business in our family and pass it on, we know that the support will continue to be there and we can retire knowing that the business will continue to be supported as it was when we were at the helm,” says Dave Carlile.

The Paramedics franchise provides essential services in plumbing and heating while offering world-class customer service. In 2021, with the goal of bringing its family-based culture and exceptional customer service to every city in America, PHP joined Threshold Brands, LLC, creating sister companies Plumbing Paramedics and Heating + Air Paramedics, and began offering franchise opportunities in December 2021.

Help with the Sale

Mr. Rooter franchises have provided succession planning webinars, live in-person sessions as part of its annual reunion, as well as one-on-one video calls with a dedicated Resale Franchise Developer to help the Franchise Owner develop a timeline for exiting the business, as well as a plan that will best position them for a future sale.

“Most of the franchise owners we work with have never sold a business before. Our resales team has experience in helping more than 500 franchise owners successfully sell their business,” says Doyle James, president, Mr. Rooter Plumbing, a Neighborly company. Mr. Rooter is a full-service plumbing and drain cleaning franchise that provides services to residential and commercial customers. The franchise provides sewer cleaning, plumbing and drain cleaning services for homes and businesses.

Although the background of our Mr. Rooter franchise owners varies, if you are currently in the plumbing business, you can convert it into a Mr. Rooter franchise. Mr. Rooter Plumbing is that opportunity to transform your business into a time-proven business model. “As experts in plumbing since 1968, we at Mr. Rooter Plumbing know how demanding it is to own and operate an independent plumbing business single-handedly. Learn the best practices in the industry from a team of experts to get the most from the business you’ve spent so much time and energy building,” says James.

Who Knew?

One common misconception with franchising is that there’s a lack of support—that you’re on an island 500 miles away and you’re left to just figure things out on your own. But on the contrary, Zoom Drain isn’t just going to hand the ball off after your franchise launches. All of that extensive pre-launch support continues, through planning and operational manuals, with detailed projects and how to execute them—plus simple, yet powerful, financial systems that guide you through key metrics.

“I just love the fact that Zoom Drain is very franchise-friendly, in terms of providing support from the beginning to the end. Just the support they provide in terms of onboarding, the systems and the processes they have in place. As a new franchisee, I don’t have to figure it out for myself,” says Will Clay, who just recently opened Zoom Drain of Atlanta earlier this summer.

People considering franchising may think that you lose your voice and no longer have a say in your business. “The truth is it gives your voice direction. With the support and help of the franchise, you are actually heard, and other people help you make your voice tangible,” says Heating + Air Paramedics’ Melissa Carlile.

Z PLUMBERZ’s O’Rourke says that one of the biggest misconceptions that owners of a plumbing company have is they feel they will lose control and make less, and subsequently the work becomes, well, just a job. “Franchising isn't buying a job,” says O’Rourke. “Franchising systems feature a baseline of processes and procedures that will include many aspects of business operations to better growth and long-term sustainability.”

Moving Forward

The support of Z PLUMBERZ’s franchisees doesn't end after the transition. In fact, the franchisees will benefit from continuous technical support, marketing and accounting assistance, continuous training in business operations, planning and strategic planning. “We really pride ourselves in just how much we communicate with our franchisees to know and understand where they feel their business is and where they want to see it go. Then we assist in building strategies, budgets and training efforts that will help put their business on a path to achieve their goals and expectations,” says O’Rourke.

The support that Neighborly provides to franchise owners is unlike that of any other franchisor in the home services industry. “Whether it’s an existing business owner, entrepreneur, or investor, becoming a part of the Neighborly family means a franchise owner will have extensive access to the ongoing training and support you need to find success and serve their community,” says James.

For Dave and Melissa Carlile, Heating + Air Paramedics’ support is the absolute best part of the transition. “Dave and I depended on each other to do every task, carry every burden and solve every issue. Now, we have so many people to reach out to and help achieve our goals that it actually feels achievable! There is always someone waiting, willing and wanting to help,” says Melissa Carlile.

“Everybody I met, it was like, ‘OK, Zoom Drain wants us to be successful just as much as we want to be successful,’” says Robert Pace, Zoom Drain, Collin County, Texas. “And I felt like they were honest and genuine, that they weren’t just giving us lip service and saying that this is what we’re going to do to get us in the door to sell a franchise—to put a dot on the map. They were really interested in bringing people in, showing them the business and helping them be successful,” continues Pace.

"As a Mr. Rooter franchise, we have been given all the necessary tools to follow a proven business model. The level of business assistance from marketing to operational guidance and support, allows us to stay superior as a successful franchise owner, which in return conveys into continual growth of up to 14% each year for us. Oftentimes, we are able to compete with larger businesses and saturate our markets before our competitors are able to do so. We are true believers in a good franchise system and love representing and bringing additional value to our specific brand," says Holly Tillman, owner of Mr. Rooter Plumbing, Tallahassee, Fla.

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