Richard Sharoff is all about growing ideas.
Whether it was taking a small Kansas City ice cream store chain and building it into the national company known as Maggie Moos or building his own franchise consulting company, Sharoff takes his ideas to the next level. Following the sale of Maggie Moos in mid-February for $16.1 million, the former chief executive officer and founder wasted little time getting back into the game.
Starting FranPoint Partners in January, Sharoff helps fledgling franchises develop business plans, grow staff, acquire resources and handle legal issues. Even before Sharoff sold Maggie Moos, he was looking for his next business venture. Looking into investing in several different fledgling chains, he decided to market his skill set rather than a new restaurant.
“Instead of trying to acquire [a franchise], I want them to help them grow their business successfully to hit that [100 franchise] milestone,” Sharoff said. “My vision is to help these emerging restaurant concepts and create a better, smarter and more efficiently run business.”
FranPoint, a franchise consulting firm, also works with the first branches of new franchises, helping to oversee everything from location to uniformity in product and service.
The cost of buying the rights to a chain is a substantial investment and could cost a rights holder anywhere from $250,000 to $3.5 million for a national franchise or $20,000 and $30,000 for a smaller one, according to AllBusiness.com.
“I have probably learned more from mistakes than things I have done right,” Sharoff said. “There are things Iwill never do again, and I want to pass that knowledge along.”
Sharoff?s firm is targeting the Maryland, Washington and Northern Virginia area. Clients include Kings Street Blues in Northern Virginia, which has five franchises, and The Greene Turtle Sports Bar & Grille, based in Edgewater with 14 locations, including one in Baltimore.
“We get paid on a proportionate basis, handsomely if we are successful and not if we fail,” Sharoff said.
