"Were the Fruitfull®
family," said Linda Kamm, describing her vision of Boc a Raton-based Happy &
Healthy Products, which produces Fruitfull® brand frozen fruit bars. Kamm, who started
the company in 1991, thinks of it as a family because she believes a major part of its
success comes from keeping its franchisees happy. "We cant do any better than
they do," she said. "We depend on each other."A comparatively low
initial investment, no royalties, and flexibility make the business attractive to
entrepreneurs with a variety of expectations, Kamm said. While some Happy & Healthy
franchisees work long hours building their businesses, others do it part time while they
also hold down other full-time jobs or take care of families at the same time.
HAPPY
& HEALTHY FOUNDER:
Linda Kamm
The company currently has about 100 franchisees in 36 states and Puerto Rico.
"About half our people are full time, and the other half are part time," Kamm
said. "So many people want a business flexible enough so they can pick up the kids
after school or go to the school play."
One franchisee in Texas described the business as a buffet, Kamm said. "After
youve gone through a buffet line, everybodys plate will look different,"
she said. "Its the same with us. You can do as little or as much as you
want."
The franchisees make an initial investment between $ 18,000 and $40,000. He or she
receives equipment, training, product and between 15 and 20 working accounts with which to
begin operations. Wholesale accounts include hospitals, health food stores, produce
markets, college campuses and military bases.
Balancing priorities
Cheryl Arquilla and her husband Chuck, of Willow Springs, Ill., bought a Fruitfull®
franchise so she could balance a job with caring for a small child. "We wanted a
business we could work around our family," she said. "I started part time, and
my three-year-old used to come with me on deliveries. We felt it was something we could
grow into."
The company has been supportive, Arquilla added. "Weve been very happy with
Happy & Healthy," she said. "They dont just leave you out there on
your own."
Kamm originally studied to be a sports broadcaster, but after graduation from college
she moved into sales instead. She was working for a company that produced frozen fruit
bars when she decided she could develop a better product on her won. "I wanted
something that was low in fat, and yet had big chunks of fruit," Kamm said. "The
primary consumers of fruit bars are women in their 20s through 50s, and they read
wrappers."
The company is willing to serve small accounts that other fruit bar companies might not
consider profitable enough, Kamm said. "Were selling our service as much as our
product," she said.Last year the companys gross sales were about $3 million. The bars retail for
about $1 each, and Kamm said they expect to sell more than 7 million this year.
Seeking more clout
William Johnson, a marketing professor at Nova Southeastern University, said that
flexibility and a low initial investment requirement are attractive to many people who
want to get into business for themselves. Many franchises so not offer those features, he
said.
"With a traditional franchise, a franchisee may feel theyre at the mercy of
the franchiser. Todays entrepreneurs want to have more say in things," Johnson
said. "Over the past 15 years, weve seen what might be called a franchisee
revolt."
Would-be entrepreneurs often like the operational model of a franchise. "But they
dont want the straightjacket," Johnson said. "Today, franchisers need to
view franchisees as partners. Before, they were treated like customers."
Traditional fast food franchises often require initial investments of between $85,000
and $500,000 plus royalties of four to eight percent, Johnson said. "People may feel
they dont get a good return on that."
In the early 1990s when downsizing was rampant, Kamm saw people enter the company
because they were tired of the corporate world and wanted to go into business on their
own. "They described it as buying a job," she said.
Looking in Dade
Last year the company added 14 new franchisees, and Kamm expects more growth this year.
Happy & Healthy is currently looking for a franchisee in Dade County, she said.
Kamm hopes she can keep the company close-knit in spite of expansion. "My biggest
concern is that as we grow, we want to maintain that family feeling and close
contact," she said.
"Right now, we know almost all our franchisees by name." |