By BRIDGET McCREA

Aspiring business owners have three choices: start a company from scratch, buy an existing company or buy into a concept known as “franchising.” For some, the first two options make the most sense. But for the over 300,000 franchised small businesses that generate about $1 trillion annually, according to the International Franchise Association (IFA), in Washington, D.C., franchising is simply the best choice.

Maybe that’s because today’s franchisees have a multitude of choices at their fingertips, from restaurants, hotels and distributorships, to service industries like cleaning companies and tax preparation services. Franchising, which takes a proven method of distributing products and services and replicates it across a group of geographically dispersed business owners, has literally spread into every corner of the business world.

Here’s a look at six Hispanic entrepreneurs whose ventures into franchising helped them find the road to long-term business success:

Virgilio DelaCruz, Coverall Cleaning Concepts
When the cruise ship Regal Princess docked in New York Harbor last September, it brought with it about 350 people (out of 2,177 total passengers and crew) who were suffering from the Norwalk virus. To get the ship decontaminated and cleaned up for its next voyage, the ship called on Coverall Cleaning Concepts for help.

Answering the call that day was Virgilio DelaCruz, the 33-year-old, Brooklyn-based franchise owner. A native of the Dominican Republic who moved to the U.S. in 2001, DelaCruz, his six employees and nine contract workers hit the decks getting the Regal Princess back into ship-shape condition.

“We disinfected the entire ship,” recalls DelaCruz, who was voted one of Coverall’s franchise owners of the year for 2003. “We had about 24 hours notice to mobilize our team. When the ship docked, we went aboard and got the job done.”

DelaCruz, whose upfront startup costs were about $3,500, has grown his business’ sales from about $1,500 a month in 2002 to a current $20,000 a month. He services about 25 commercial accounts, and also holds down a full-time job as a building superintendent—a dual role that he handles surprisingly well.

“I’m happy to be making extra money with my own business while also working full-time,” says DelaCruz, who foresees a time in the future when he can devote himself to running his own company. “I want to grow my company by adding more accounts first. Then we’ll see.”
Before shelling out the money for a Coverall franchise, DelaCruz says he researched several different cleaning companies on the Internet. As he perused the options, he says he crossed off his list—one by one—those companies that “don’t deliver on their promises.” When finished, he says Coverall stood out as the firm with the best reputation and franchisee support in its industry.

After 12 weeks of intensive training, DelaCruz began receiving customer referrals from Coverall’s headquarters. Armed with years of experience as a building superintendent, DelaCruz says the business challenges so far have been minimal. “It was a pretty easy transition for me,” says DelaCruz, whose future plans include adding new accounts and hiring more employees. “I still learn new things every day, but anytime I’m confused I know that I can call the company up and get help quickly.”

Richard A. Castro, McDonald’s
The next time you bite into a McDonald’s breakfast burrito, you can thank Richard A. Castro for coming up with a food concept that’s available in select markets nationwide. And while Castro doesn’t work in product development, this owner of 23 Texas McDonald’s franchises plays a key role in making sure the restaurant is reaching the U.S. Hispanic population with the right foods and the right marketing messages.

“My Hispanic heritage and my knowledge of the culture has been a terrific asset,” says Castro, whose parents were born in Mexico. “I’m able to share my level of expertise with fellow franchisees and the company itself in terms of marketing to the Hispanic community. Many of my corporate partners may not have that kind of expertise.”
Castro, who purchased his first McDonald’s franchise in 1983 with an upfront investment of about 25 percent of the total startup cost, today has about 1,000 employees. Early on, he opened a new restaurant about every two years and today owns more McDonald’s restaurants than any other Hispanic franchisee.

A former teacher, assistant city manager and real estate professional, Castro started his franchising venture in El Paso, then gradually grew it to encompass 23 locations throughout West Texas. In 1997 he purchased a group of restaurants from another franchise owner and took his company from 7 to 20 locations within a 12-month period.
“I not only bought five locations from another franchisee, but I was also approved for expansion into other geographical areas outside of El Paso,” says Castro. “At that point, things really exploded.” To give back to the communities that have supported his business efforts, Castro started McDonald’s HACER Scholarship program, which distributes millions of dollars in scholarships to Hispanic youths nationwide every year.

When contemplating the rewards of franchise ownership, Castro points to brand recognition, established business systems and intensive training as the top benefits. Where the process can be challenging, he adds, is when franchisees make individual decisions or strategy changes that don’t fit with the parent company’s vision.
“On one hand you’re an individual who is part of a great organization,” says Castro. “On the other, you really have to learn how to be successful in your own right, while also being a part of that larger picture. Even though you have your own organization, you still have to be able to deal with the corporate setting.”

Luis Zuñiga, Aussie Pet Mobile
In 2003 Luis Zuñiga was ready for a job change, but not sure of his next career choice. With several years of experience in banking and finance, Zuñiga always longed to run his own business, but wasn’t sure how to turn that dream into a reality. “Since I hadn’t run a business before, I thought franchising might be the best route,” recalls Miami resident Zuñiga, 31.

And with that, Zuñiga tapped the services of FranChoice, a consultancy that matches aspiring franchise owners with opportunities. After a series of phone meetings to figure out what choices would be best for Zuniga, he says the company produced a half-dozen potential franchises. Mobile pet grooming came out near the top of the list, and Zuñiga was instantly hooked.

“It sounded interesting,” says Zuñiga. “I really like dogs, and the business itself is mobile, and not tied to a physical location.” Zuñiga says he also liked the fact that no “big name” company dominated the mobile pet grooming industry; he was also attracted to Aussie Pet Mobile’s established system, training and support. After making a $150,000 initial investment in the opportunity and grooming vehicle in March 2004, Zuñiga was in business.

Zuñiga, whose parents were born in Cuba, runs his business while also working in the corporate finance department of a large company. His father, Luis Zuñiga, Sr., handles the day-to-day operations of the business while a professional pet groomer takes care of the individual clients. By the end of 2004, Zuñiga expects his franchise to be bringing in about $15,000 in monthly sales.

With Aussie Pet Mobile, Zuñiga says he’s found a business opportunity that not only provides an additional income stream, but that also challenges his entrepreneurial side. “There’s not a day that goes by that I’m not thinking about how I can make this better, how I can expand my client base and how I can lower my operating costs,” says Zuñiga. “It’s something that I didn’t have in my life before becoming a franchise owner.”

What Zuñiga also didn’t have to worry about was finding new clients, a challenge he tackles through advertising vehicles like Val-Pak coupon mailers, direct mail and a colorfully decorated, mobile pet-grooming vehicle. “Our trailer is a rolling advertisement for the company,” says Zuñiga, who plans to add another vehicle and hire more groomers later this year. “It’s not unusual for us to receive calls from potential clients who have seen our vehicles rolling through their neighborhoods.”

Nora Garcia, Liberty Tax Service
For Nora Garcia, the start of a new year signals not only a fresh outlook on life, but also the start of a 4-month period during which she and 10 seasonal employees will handle about 1,150 tax returns for citizens living in and around La Puente, California.

In business since July 2002, this 34-year-old owner of Liberty Tax Service invested about $50,000 in the franchise and physical location, where Garcia (who previously worked for H&R Block as a tax preparer) and her husband Martin, an accountant, provide tax services to clients.

Prior to selecting Liberty Tax Service, the Garcias researched several different tax preparation franchises. Eager to get into a business in which they were both already experienced, the pair met the CEO of Liberty Tax Service in person during a trip to Virginia, learned about the company’s system and went back home to start up their own tax prep business.

Garcia says she’s benefited from the brand awareness created by new Liberty Tax Service locations opening up in California. “Our name brand has expanded quite a bit over the last two years,” says Garcia, 34. “People notice that it’s not just one store, but a reputable, competent franchise with many locations.”

Success hasn’t come easy for the Garcias, who hit a major stumbling block when a car drove through the front of their office in January 2004, right when peak season was in full swing. “We kept the business running, even though we had no windows,” says Garcia, who is Mexican American. “The parent company and other franchisees were very supportive through the crisis.”

According to Garcia, much of her firm’s client base consists of Hispanics from the local community who are serviced by Spanish-speaking tax preparers. Looking ahead, she and Martin plan to grow their existing business and also open another location within the next year.

She says her firm’s customer service philosophy, guerrilla marketing tactics, recognizable brand name and ability to work with the Hispanic community will help make that happen.

“Customers are impressed with our status as young business owners who can not only cater to their tax needs,” says Garcia, “but also communicate with them in Spanish.”

Margarita Hernandez, Jan-Pro International Cleaning Systems
Margarita Hernandez is proud of the fact that she still has the first client that Jan-Pro International Cleaning Systems assigned her back in 1998, the year she purchased a Phoenix-based franchise from the company. Lyle Gilbertson, regional director for Jan-Pro, says it’s testament to the fact that Hernandez will do what it takes to make a customer happy, even if it means handling a task that isn’t covered under that client’s commercial cleaning contract.

“If they spill coffee on the carpet, Margarita will make sure it’s cleaned up,” says Gilbertson. “It makes no difference whether it’s in the contract or not. If her customer is complaining about something, she’ll do whatever it takes to keep that customer happy.”

Working with her husband Enrique, Hernandez handles five accounts in the Phoenix metropolitan region that bring in about $4,000 a month. Born in Mexico, this former cleaning crew supervisor credits Jan-Pro with helping her not only achieve financial success, but also navigate her way through life as an American citizen.

“Jan-Pro helps with everything—from business issues to personal issues and everything in between,” says Hernandez, 41. “They understand the problems that Hispanics face in the business world, and work hard to help us work around those challenges to achieve business success.”

For Hernandez, one of the biggest challenges has been dealing with the financial obligations that business owners have to deal with, including tax obligations, quarterly tax deposits and bookkeeping. For help, Hernandez says she often calls on Gilbertson or another Jan-Pro executive. “They really care,” she adds.

Hernandez says that for now, she’s happy working with five accounts, and would prefer not to grow so big that it would be hard for her to provide full service to those customers. Buying a franchise, she adds, has allowed her to be self-employed while also gaining the support of a large, national organization. “I really like where I am right now, and I make plenty to live on,” says Hernandez. “It was definitely a good choice.”

Steve and Annie Duchene, FASTSIGNS
Steve Duchene wanted to be an entrepreneur since he was a young boy, but when the time came to start his career he took a decidedly different path and became a store manager and director of operations for Wal-Mart Stores’ Sam’s Club division. After racking up several years of experience in the retail arena, Duchene’s entrepreneurial itch came back, and this time, he scratched it.

“Ten years ago, something got into me and I really wanted to start my own business,” says 46-year-old Duchene. “I figured that the safest, most conservative approach would be a franchise system, so I did some research and found FASTSIGNS.” Duchene says he was most attracted to the firm’s return on investment, good reviews from other franchise owners and available location in El Paso, Duchene’s hometown.

With a $175,000 investment, Duchene and his wife Annie, 44, opened their first FASTSIGNS in October 1994. Since then, the nine-employee firm has grown steadily, posting gains of 20 percent this year over 2003. The Duchenes, both of whom are Mexican American, are currently doubling the size of their existing location and considering an additional franchise in the near future.

Both Steve and Annie are active in the day-to-day running of the company, which makes the work-family balance all that much harder for the pair and their two children. “Keeping work at work, and not taking it home with us, is very difficult,” says Duchene. “Our kids know all of the sign terminology, and they know everything about hiring and firing.”

To aspiring entrepreneurs who are considering a franchise, Duchene offers a dose of straightforward advice: Be ready to work hard. “A lot of people think that being self-employed is easy, and that you get to play golf a lot,” says Duchene. “In reality, I’ve found myself working a lot harder than I ever did in Corporate America—and many more hours.”