Newport Beach, CA – June 21, 2005 – After three years of franchising, Systems Paving has adopted a new strategy to grow the business: shrink the franchise territory. As a result of this change, the company is experiencing greater response from potential franchisees and attracting better qualifiers. The smaller territory size offers many advantages.

 “Before, a new franchisee needed to invest about $150,000 to $200,000, needed an office, and needed to have lots of management experience,” says Larry Green, who co-founded Systems Paving in 1992 with business partner Doug Lueck. “Now that we offer a smaller territory, we’ve lowered the initial capital requirement to $40,000 to $60,000, and it can be run as a home-based business.” Franchisees find the lower investment and low overhead costs (due to working from home instead of renting office space) to be very attractive.

 “When you have a large franchise model,” explains Green, “it could take the business owner five to eight years to achieve good penetration of the market. Ultimately, this is not good for the franchisor or the franchisee.” Nor is it good for meeting customers’ needs, since it can take many years before the service reaches their particular region.

 Green has been in the business since 1978 when, at the age of 22, he started a paving company in his native Johannesburg, South Africa. He jumped into home improvement just as a certain method of paving – a modern twist to a technique that’s been around for a long time – was starting to gain popularity there. After immigrating to California, Green met Lueck, who also has a background in home improvement, and with a shared vision the two founded Systems Paving, in operation for the past 13 years.

 “This method of paving is very much the same as what was done centuries ago by the ancient Romans,” says Green. “Some of those roads are still in existence today! The technology is that old, and we bring a modern-day approach to it.”

 Systems Paving’s unique process involves a special layering technique with interlocking paving stones. Unlike concrete or asphalt, which crack or crumble under weather extremes, the stone surface neither cracks nor discolors. Perfect for driveways, patios, and other outdoor areas, the stone surface holds up in intense sun and heavy snows. And in earthquake-prone regions like California, this technique is a good solution for homeowners and businesses alike because the flexible stone surface shifts with ground movement, keeping the driveway, walkway, patio, or deck area intact.

Compared to flagstone and brick flooring, paving stones is far more cost-effective. “Furthermore,  the benefits in terms of how it looks and functions outweigh and outperform others,” says Green. “You don’t need to worry about maintenance.”

 Franchisees receive extensive training, including an initial two weeks of training at the company’s California headquarters encompassing all areas of sales, marketing, management, and the installation process. This is followed by another two weeks of hands-on training at the franchisee’s business location. Ongoing support includes extensive help and expertise in sales and marketing as well as a centralized system for handling incoming leads. The parent company has access to each franchisee’s calendar; as leads come in, the company schedules appointments directly into franchisees’ schedules, saving them time and effort. The company has developed proprietary software to manage operations so that a franchisee can easily track jobs, payment, and other aspects of the business by simply logging on to the Internet. The combined franchise and territory fees add up to $14,000 to $18,000, depending on territory size.

 With this entire infrastructure in place, new franchisees can start up quickly, with low risk and outstanding guidance. Systems Paving’s new model allows each franchisee to start small and really learn the business. Subject to performance, each business has the option to grow. Once a franchisee has acquired three territories, that business needs to move into an office. A smaller territory means more opportunities and greater options for franchisees – a great move for a successful company that wants to keep growing.

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Staffwriter: Graciela Sholander

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