After spending much of their adult lives working for someone else, Hiram and Glenda Toro decided they were ready for a change. Glenda Toro was employed in human resources at UNLV, while Hiram Toro was a business professor at the College of Southern Nevada with a background in logistics and finance.
This month, they went into business for themselves by opening Dogtopia, a dog day care business in Summerlin. The franchise mirrors the 100-plus Dogtopia locations nationwide, meaning, “You don’t have to reinvent the wheel,” Hiram Toro said.
Buying into a franchise has plenty of safeguards, namely that owners become part of an established brand with a company already versed in operating. A fast-food restaurant, for instance, has a certain way to make a sandwich, and that sandwich will taste the same if you order it in Nevada or New York.
The most significant challenge, as in any business, is coming up with the money with which to start. Companies often have capital requirements, including liquid capital benchmarks that must be met before potential owners can be considered for franchisee opportunities.
Hiram said it took roughly $100,000 to open the location.
“Capital is the No. 1 challenge for people,” he said. “What you get back, though, is that feeling of creation, of doing something constructive. Your business kind of becomes like your son or your daughter. It’s a labor of love. For many years, I did what I needed to do; now I’m doing what I want to do.”
The Toros are hardly the only business owners in Southern Nevada who have recently gotten into franchising.
Nevada is one of the best spots in the country to do it, according to the International Franchise Association, a trade organization that recently ranked Nevada 10th on its list of the top U.S. states for franchise growth in 2020. Texas, Colorado and Arkansas were ranked as the top three states.
“The franchise industry is responsible for creating tens of thousands of opportunities for small-business ownership across the country and millions of jobs for Americans,” said Robert Cresanti, the franchise association’s president and CEO.
A booming area with steady population growth, Southern Nevada is ripe for franchise opportunities, Cresanti said.
“Nevada has a thriving economy, a growing workforce and a good cost of living, particularly compared to its largest neighboring state,” he said. “Additionally, the state has a stable, pro-business regulatory climate that helps franchise growth.”
Hiram Toro, who remains a business instructor at CSN, said turning a profit shouldn’t be the only motivating factor for someone with entrepreneurial aspirations.
“Money is necessary, because we need money to live, but money should never be the driving factor,” he said. “The driver should be doing something that you want to do. If you’re getting your own business, you should do something you like.”
Jamie Enders, a former Strip casino dealer, plans to open a dog boarding franchise under the Hounds Town USA brand this summer in Henderson. Enders, 50, moved to Las Vegas after his wife, who works in the health care field, got a job here a few years ago.
“I worked for a company for 26 years before we moved to Vegas,” Enders said. “I was a dealer, but I decided after a while that I didn’t like that and wanted to do something else. On a flight, I was flipping through the airline magazine and read something about franchises. I hadn’t given it a thought before that. When we got back from that vacation, I started researching hundreds of different franchises.”
Since he didn’t want to work a lot of nights or constantly order new inventory, Enders opted to stay away from franchising a restaurant.
“I liked the business model and simplicity of Hounds Town,” he said. “The pet industry market is growing. From empty-nesters to millennials, who are having children later in life, people are depending on their animals and treating their animals like their children.”
Traditionally, people often think of some of the popular fast-food franchise brands—McDonald’s, Subway or Taco Bell—but opportunities can come in all sorts of industries.
“We’ve seen many young entrepreneurs opening franchises in the personal services sector, which is the fastest-growing franchise sector in the country,” Cresanti said. “The types of businesses—personal care salons, specialty exercise studios—are growing rapidly, both in Nevada and across the country.”
One area franchisee who went the exercise studio route is former NFL player Renaldo Wynn, who recently opened a Burn Boot Camp location with his wife, LaTonya, in Henderson.
A holistic boutique fitness concept, Burn Boot Camp caters to women. Wynn said he plans to open three additional Las Vegas Valley locations before the end of the year.
“The biggest thing is being able to own something with an entrepreneurial spirit,” Wynn said. “It’s been a dream for us to own a business together about something we feel passionate about. Franchising made that dream come true because it’s a business model that helps us be successful.”
Cresanti said it’s vital to research particular franchise brands before making any type of investment.
“The single most important thing to remember is to do your homework before you buy a franchise,” Cresanti said. “Franchising can be a great opportunity, but every brand isn’t for every person. Ownership can be a huge time and financial commitment, so it’s important that every prospective owner researches the system they want to buy into and understands the commitment that ownership can require.”
Franchise ownership and the jobs that come with those endeavors are responsible for about 74,000 jobs in Nevada, the franchise association reports.
“It’s a good time to be in Las Vegas, [and] I think it will continue to be a good market here for some time to come,” Hiram said. “We’re the little giant right now in the United States. We’re this little city that’s getting all this exposure. I think we have nothing to do but grow.”