Customers browse the store at Pet Supplies Plus on Thursday, Dec. 15, 2016, in Katy. Renee Buchel and her husband, Scott, are franchise owners of the Katy Pet Supplies Plus. ( Brett Coomer / Houston Chronicle )
Customers browse the store at Pet Supplies Plus on Thursday, Dec. 15, 2016, in Katy. Renee Buchel and her husband, Scott, are franchise owners of the Katy Pet Supplies Plus. ( Brett Coomer / Houston Chronicle )
Photo: Brett Coomer, StaffScott Buchel felt it was time to run his own business after working more than 30 years in retail, but rather than go the mom-and-pop route, he became a Houston franchisee of Pet Supplies Plus.
He's followed a well-worn path: Houston was ranked No. 1 among U.S. cities with the highest concentration of franchise enterprises as of 2016, according to a report from the International Franchise Association trade group.
There are more than 14,000 franchise establishments in Houston creating over 145,000 jobs and generating about $12.2 billion output for the city's economy, the report found.
John Reynolds, president of the trade group's educational foundation, said Texas consistently ranks high among states with large concentrations of franchises and the employment they provide. As of 2016 there are more than 62,000 franchise enterprises in the state creating over 635,000 jobs and generating $53 billion output for the state's economy.
"Texas must love franchises and franchises love Texas right back," Reynolds said.
Some of the biggest sectors in the franchise world include quick service restaurants, full service restaurants, lodging and business to business services like companies that prepare taxes for enterprises.
While there are the big-name franchising companies like McDonald's or Wendy's, Reynolds noted that there are small business opportunities as well with many franchisees independently owning an establishment or two with less than 100 employees.
Even in the cases of medium-sized franchise companies, there's still a sense of ownership involved akin to a mom-and-pop business, Buchel said.
Buchel and his family currently run a Pet Supplies Plus store in Katy and plan to open two more in the Houston area by 2018. He praises the efficiency of the company's management systems that make working retail a breeze for both novices and seasoned veterans like Buchel who has worked on the corporate side of fast food restaurants, big box retailers and CVS.
Currently working as vice president of operations for MedSpring urgent care, Buchel added that he appreciates how the parent company has helped in navigating commercial real estate concerns, the established vendor relationships the parent company provides, as well their royalty fee of only 3 percent.
"I'm getting my money's worth for what I'm paying," Buchel said.
The first store Buchel and his family opened became profitable within a year.
He added that working the pet industry in particular feels like a safe bet as opposed to other retail sectors. He sees less risk in losing customers to Amazon.com as the pet industry still heavily relies on in-person shopping experiences like letting Fido pick out his new favorite chew toy.
Robert Resendez took on a more traditional franchise sector in opening a mobile kiosk for Kono Pizza, a European company that sells pizza in a cone.
Resendez, his brother and father all have ties to the oil and gas industries but all wanted to simultaneously run a family business. In part, Resendez wanted to experience working for himself, but also wanted a safety net given how employment in the oil and gas industry has been a "roller coaster," he said.
After six years of researching business opportunities, Resendez brought his brother and father into the Kono Pizza franchise given how much of the business model was already set up.
"It's kind of grab and go," Resendez said.
While he bought the rights to open five units for Kono Pizza in Houston, he and his family currently only operate a mobile kiosk which they've taken to several events including the Ziegenbok Music Festival at the Sam Houston Parkway this October. They are looking to open their first storefront next year and currently pay 6 percent in royalties.
Both Buchel and Resendez said when considering opening a franchise it's important to research what kind of relationship they want with a parent company, how much leeway the parent company allows in management if any at all, and whether they feel they can truly get the product or services they would sell.
"You've got to find the franchise that's right for you," Resendez said.
