Bake Shaffer, owner of a chain of dry-cleaning locations formerly part of the Martinizing franchise, goes through his plant checking things out.

photos by benjie sanders / arizona daily star

More Photos (1):

Other articles by Christie Smythe:

Christie Smythe: Former 'Ugly house' franchise settles suitTucson firm accused of 'deceptive tactics' in foreclosure rescuesLocal builder Pathway files for Chapter 7 bankruptcyTucson's Pathway Developments files for bankruptcy liquidationArizona mortgage failures fuel crisisShovels poised at South Side shopping centerReal Estate by Christie Smythe: Housing slide cuts antique door salesTucson office market in cooldownTucson's median home price plunges by 7.5 percentPhoenix-area lender to add Tucson firm

Health Care
CENTRAL ARIZONA COLLEGE
DIRECTOR OF HEALTH INFORMATION MANAGEMENT Finance and Accounting
Charles E. Gillman Company
Accounting Specialist Trades/Construction
RANCHO RESORT
MAINTANANCE POSITION Health Care
Dependable Health Services
Physical Therapists Administrative & Professional
Tucson Urban League
CEO/President Construction
West-Press
Printing Mechanical
Komatsu Equipment Co
Resident Field Mechanic

Nearly four decades after his father opened the first Martinizing Dry Cleaning location in Tucson, William "Bake" Shaffer is taking his family's Martinizing franchise independent. Over the next several weeks, the Martinizing signs at his nine locations will be replaced with signs that say Shaffer Dry Cleaning & Laundry.

Shaffer said he didn't want to expand at the pace the Cincinnati-based chain was demanding — eight new stores over the next 15 years. Also, he said, after spending most of his working life in dry cleaning, "I don't need my hand held."

Shaffer isn't the only former franchise owner in Tucson trying to go on his own after being part of a larger brand. Also making the switch is the former Clarion Randolph Park Hotel, at 102 N. Alvernon Way, now operating as the Randolph Park Hotel and Suites. Omar Mireles, executive vice president of HSL Properties, which owns the hotel, said the company wasn't happy with the midlevel Clarion brand and is going independent while searching for a new brand.

"It wasn't quite meeting the expectation that we had at the end of the day," he said.

Other franchises that have gone on their own in recent years include The Pizzeria On Ina, at 4229 W. Ina Road, formerly a Picurro Pizzeria; Santa Barbara Ice Creamery at 1058 N Campbell Ave., a former Baskin-Robbins; and Ziggi's, at 3225 N. Swan Road and 2500 N. Silverbell Road, previously Nothing But Noodles.

Experts say turning a franchise into an independent business is fraught with perils — including the expense of changing logos, signs, phone numbers and proprietary equipment; possible lawsuits by the parent company; and all the usual challenges faced by small businesses, such as trying to develop a customer base.

Nonetheless, Shaffer and other former Tucson franchisees said they were willing to take the risks.

"I've been much happier being independent," said Roberta Shapiro, who changed her restaurant to The Pizzeria On Ina after her franchiser, Peter Picurro, was charged in 2005 with luring a minor for sexual exploitation. Shapiro said she enjoys the freedom of being able to choose her restaurant's hours and experiment with the menu, which she couldn't do as a franchisee. That helps her keep up with her customers' changing tastes, she said.

"I think we're a lot more efficient," she said.

Franchisee obligations

Under franchise contracts, which typically last eight to 10 years, franchisees are usually obligated to uphold the franchise company's operating standards — which may cover everything from supplier choices to decor — as well as pay fees for advertising and a percentage of their revenue to the franchiser, according to the International Franchise Association, based in Washington, D.C. In exchange, franchisees receive permission to use the franchiser's trademark and receive support and training from the franchiser.

There are about 2,500 franchisers and 800,000 franchisee businesses nationwide, according to the association.

Prospective small business owners are generally attracted to franchises for the security of having a well-known brand name, a thoroughly tested operating system and the support of a corporate parent and fellow franchisees, said Terry Hill, spokesman for the International Franchise Association. But a franchise might not be best for "strongly entrepreneurial" people, Hill said.

There are also situations in which a franchise might not seem worth the fees, said Robert Purvin, CEO of the San Diego-based American Association of Franchisees & Dealers. For instance, the company's name might not be well-recognized or the system might not work as well as intended. Also, the business could be based on a passing fad.

For those reasons, prospective franchisees need to carefully investigate potential franchise deals. The agreements can be "an indentured servitude from which there is no escape," Purvin said.

Franchisers can file suit against a franchisee who simply stops paying royalties, said Deborah Gronet, a Tucson business attorney who handles franchise issues. Non-compete clauses in agreements often prevent franchisees from opening similar, independent businesses in the same location, or within a geographic area, for a number of years after the agreement ends, she said.

"If a franchisee just closes their doors, and they operate a competitive business, most franchisers are going to try to enforce their non-compete (clauses)," Gronet said.

The only way out is if the contract has a buyout clause or if the franchisee can negotiate an alternative, she said.

If franchisees do successfully break away from a franchise and open a competing businesses, franchisers may also try to "punish" the offending business owners by opening a new location nearby, Purvin said.

Rough going

Former franchisees in Tucson who took their businesses independent say the going has not been easy. Shapiro, of Pizzeria On Ina, said she had to change her sign and come up with new recipes within a matter of weeks. Jo Jensen, owner of Santa Barbara Ice Creamery, said she has successfully fought two lawsuits filed against her by Baskin-Robbins, which chose to end its agreement with her in 2000.

"It's been a hard road. All I wanted to do is sell ice cream," said Jensen, who said she opened her shop as a Baskin-Robbins in 1985. But Jensen managed to keep most of her former customers.

"Tucsonans love independent businesses. There's a big following," she said.

The owner of the Ziggi's restaurants declined to comment about making the change. Rick Howard president of the Nothing But Noodles franchiser, Scottsdale-based Noodles Development LP, also declined to comment, because of "pending litigation."

Shaffer and Mireles said they are not worried about possible lawsuits. Their contracts do not contain non-compete clauses, they said. Both, however, face the expense of changing their brands and the difficulties of maintaining a market.

The Randolph Park Hotel and Suites will have to do without the Clarion reservation system and Web site and the name recognition of a large hotel brand, said David Peikin, spokesman for Choice Hotels International, which owns the Clarion brand.

"There's always a concern about getting off a national reservation system," Mireles said, but he added that the situation would be only temporary, and there are independent reservation systems that can be used in the meantime. .

As for Shaffer, although he is free to do what he wants with his locations, he will inevitably face more competition from Martinizing, said Jerry Laesser, vice president for marketing and franchise development for that company. Martinizing is searching for a new franchisee to open 10 new locations in Tucson, Laesser said.

"We actually wish that Mr. Shaffer was going to stay with us and grow his stores in number, but he has decided to take a different tack," Laesser said.

Shaffer estimates that he will spend about $100,000 just on new signs, and even more to make other changes necessary for going independent. But by no longer paying royalties, he expects to make up for the expense in about four years.

That's nothing compared with the peace of mind that comes from being completely in control of his business, he said.

"I can do better on my own."

Shaffer Dry Cleaning & Laundry's new logo will replace the logo for Martinizing Dry Cleaning at locations owned by William "Bake" Shaffer.