Switch for success

From 1959 through 2003, the plumbing, heating and air-conditioning business created by B. Scott Rohrer's grandfather was handed down through the generations as an independent small business in Lancaster County.

At the beginning of 2004, the company was split into two franchised brands: TRC Plumbing Inc., doing business as Benjamin Franklin Plumbing, and The Rohrer Company Inc., doing business as Rohrer's One Hour Heating & Air Conditioning.

"It's really proved to be very effective in the brand awareness and name recognition," Rohrer said.

There are 48 employees between Rohrer's two companies, both of which are based in East Hempfield Township.

Rohrer got involved in the business in 1989, after he graduated from high school. He took over the company from his father, Larry, when the firm converted to franchises.

Before the conversion, the company performed a study that revealed individuals in the area were not as aware of the firm's name as expected, Rohrer said. He said he plans this year to complete a follow-up study to confirm his suspicions that the number of people aware of his company has doubled since the switch.

Since January, the company has served 2,200 new customers, Rohrer said.

Both Benjamin Franklin Plumbing and One Hour Heating & Air Conditioning are owned by Florida-based Clockwork Home Services Inc. and were created in 2003, Rohrer said. Each franchise has about 300 locations across the country, he said.

TRC Plumbing Inc. became the 33rd Benjamin Franklin Plumbing franchise in the country, while The Rohrer Co. Inc. was the fifth One Hour Heating & Air Conditioning, Rohrer said.

While the International Franchise Association does not keep track of how many independent businesses convert to franchises, it does happen often, said Alisa Harrison, vice president of communications and marketing for the Washington, D.C.-based organization.

It is easier for companies that provide businesses services such as accounting and personnel support to make the switch than it is for businesses like a restaurant, Harrison said.

"For those concepts where it works, (the) conversion benefits both the independent and the franchisor," she said. "The independent gets training and marketing support, and the franchisor gets a system that is already up and running with a client base."

Most of the benefits of belonging to a franchise have to do with marketing assistance, Rohrer said. His company receives free exposure from national commercials and

direct-mail pieces. He also gets a better price for equipment and parts, since the entire chain purchases the items together.

The franchisor also provides free training for employees, and a business consultant checks in with the company twice a week to help, he said.

Rohrer didn't say how much it cost to switch the businesses to franchises, but he did say he pays a bimonthly franchise fee. During the year of the switch, revenue did not grow, but it leaped 21 percent in 2005 and climbed 12 to 13 percent for the past two years, he said.

Rohrer's plumbing business competes with about 100 local independent plumbers, he said. He said he does not expect a lot of the businesses to switch to franchises soon.

"As more and more people see it ... it could snowball," he said.

Most York County plumbers do not belong to a franchise, said Marlies Dick, office manager for Axel Plumbing, Heating & Cooling. Her husband, William, owns the York-based company.

Axel, which was created in 1986, employs eight workers, four of whom are mechanics. About 95 percent of its business comes from York County.

Most of the firm's competition comes from companies that were handed down through the generations of a family and are unlikely to switch to a franchise concept, Dick said.

"I think the plumbers here in town are pretty well happy with their name and reputation," she said. "To go to a franchise, there are a lot of changes that would have to be made. I think there's a lot of pressure behind them to make a quota because they have their franchise fees to pay."

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Not so unusual

With approximately 3,500 franchise brands across the world, a variety of unusual concepts are popping up. More than 40 percent of operating franchise concepts were created since 2000, according to the International Franchise Association in Washington, D.C.

Most individuals may think it's unusual for a plumbing company to be a part of a franchise, but it's probably not the most unusual concept. Here are a couple examples:

It's Just Lunch was formed in 1991 in Chicago. The franchise specializes in the dating business and helps arrange dates for busy professionals. There are four locations in Pennsylvania, including one in the Harrisburg area, with more than 100 across the world.

Amdecon was created in 1999 in Texas and has grown to include branches in every state. The franchise offers cleaners who provide crime- and trauma-scene decontamination services for situations involving bio-hazardous materials.

-Jessica Bair

 
Franchises on the rise

The number of new franchise concepts created has increased between 2000 and 2006.