Live Green Builders to be first rollout for Franchise Development Group
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Joe Keeley,
Franchise Development Group:
612.331.5977
jkeeley@fdgpartners.com
www.fdgpartners.com
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Last summer Joe Keeley, the founder of College Nannies and College Tutors, joined forces with local business executive Peter Lytle to form Franchise Development Group.
Lytle is an investor in College Nannies, as well as a principal in Business Development Group, and has funded and remodeled what is billed as ?the greenest home in the world.?
?Our concept is to acquire or start trend concepts that are socially responsible,? says Keeley, about the 50-50 partnership based in Wayzata.
Now they?re launching their first franchise, Live Green Live Smart Builders, which will design and manage green-friendly projects for homeowners. They started the prototype in 2008 in Minneapolis, under the direction of first franchisee Ronn Jansen. They?re registered to sell franchises in 30 states, and want to open about 10 in the Twin Cities.
?When we went into this, it was trying to understand what is going to be the driver for the mainstream,? Keeley explains about what they learned as they?ve tested the concept this year. ?It?s going to come down to return.? The cost of energy, ?we believe, is going to drive this business.?
It?s a big move for Keeley, who started College Nannies & Tutors while still in college and has built it to annual revenue topping $3 million. Proceeds from that operation will fund the rollout, and he and Lytle may seek additional financing for it or for other concept rollouts.
?We love the annuity model of franchising,? Keeley says, adding that becafranchisors are heavily regulated, Franchise Development Group can absorb the costs of annual audits at the corporate level rather than for each individual franchise.
Meanwhile, Lytle ?has engulfed himself in the green movement,? Keeley says. ?He achieved platinum LEED certification,? the highest environmental status, on a hohe remodeled in the Twin Cities.
?We took all the knowledge and passion of green, and the franchise knowledge, and created this in months rather than years,? Keeley says.
Their next project, probably next year, will be launching Piece of Cake Party. ?We were at a franchise show and we saw this woman dressed up as a fairy princess,? Keeley says. She makes costumes, and gives parties where each guest gets to don a costume and wear it home. ?We acquired the majority stake in the company.?
Franchise Development Group owns 98 percent of College Nannies & College Tutors, 100 percent of Live Green Live Smart Builders, and 66 percent of Piece of Cake.
Keeley says he?s enjoying his new role as franchise developer, and is working to develop a management team to take over day-to-day operations at College Nannies. Keeley, still in his 20s, enjoys his relationship with Lytle, a few decades older.
?He?s been confused in some industry circles as Dad,? Keeley says with a laugh. ?Peter and I have had a very good relationship from the beginning.?
It started as a mentoring relationship, when Lytle spoke at an entrepreneurial awards event that Keeley won while in college. ?I feel it switched into a partnership when I was ready. It?s been really great becaI have the younger view and he has the wisdom and credibility.?
