With its two brands, HFC says it has the right model for these trying economic times.

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Although some firms may find it difficult to provide strong service within the current economy, CEO Chad Hallock says that Home Franchise Concepts (HFC) Inc. has the right model for these trying times.   

“Everyone complains about the economy and the things you can’t do well,” Hallock says. “If you’re willing to follow our system, you can do well.”

Based in Orange, Calif., the firm is the parent company for two home improvement brands: Budget Blinds, which provides window coverings and home décor accessories; and Closet Tailors, a provider of custom organization products. Hallock says HFC began as Budget Blinds, which he formed with four partners in 1992.

‘Old-Fashioned Hard Work’
That year, Hallock explains, Orange County, Calif., filed for bankruptcy and his employer, a firm that provided home consultations for window companies, had to let him go. “I was left with no money, no place else to go but start my own company called ‘Budget Blinds,’” he recalls, adding that he called on friends and family members to join him.

These included Vice President and Operations Manager Todd Jackson, Vice President Tony Forbes, Executive Vice President and Chief IT Officer David Lewis and his brother, Vice President Brent Hallock. “We did it together, even though [others] said it would never work,” Chad Hallock remembers, adding that the five sold its products from door to door.

“Budget Blinds was launched with literally no money in a broke economy with good old-fashioned hard work,” he says, adding that the company initially sold blinds, shutters and draperies. Today, the brand has extended its lines to include such products as area rugs, window films and beddings.

HFC’s Competency
In 2006, the five established HFC to take advantage of the synergies of operating multiple home improvement brands. “We wanted to make sure we had a parent company that could hold all the other brands that we wanted to launch,” Hallock recalls.

In forming Closet Tailors, HFC chose a concept that followed a format similar to Budget Blinds. While the products and services are not the same, Hallock notes that the brand has a similar sales method and targets a similar audience with its products and services.

Although some may feel HFC’s core competency is home improvement products, “Our competency is in home sales and franchising,” Hallock says. Today, HFC has 930 Budget Blinds franchises and 70 Closet Tailor franchises.

HFC’s Unique Approach
A key to HFC’s success, Hallock says, has been the company’s approach to forming franchises, which is different than the methods of other companies. While some firms will give each of their franchisees a large region to concentrate on, HFC instead focuses several associates on a single, smaller area, he says.

“It enables us to go deeper into our markets,” Hallock says, adding that the company also limits the responsibilities of its franchisees. For example, instead of having franchisees take on the responsibility of manufacturing, HFC will limit them to sales and marketing.

“That allows them just to have a sales hat,” Hallock says, noting that multiple roles can be too much responsibility for the average franchisee. HFC also provides its franchisees with extensive procedures to follow in the sale process.

For instance, its sales manual even has the first five words that its franchisees are to say at every appointment, Hallock says. “We teach that and drill that into every franchisee before they go out in the field,” he says.

Rewarding Work
Hallock has been in the industry for 23 years and says he has enjoyed helping HFC’s franchisees become entrepreneurs. “It’s thrilling to me to take somebody [who for] all their life relied on a paycheck from somebody else,” Hallock declares. “[I like to] teach other folks how to build their dream. I find that to be really rewarding.”

When looking for franchisees, Hallock says that he seeks both a strong work ethic and a good attitude. “If you’ve got a can-do attitude, you’re going to do better than the ‘glass is half empty’[-type of person],” he says. “If your glass is half full and you’ve got a positive attitude, and you’re willing to do the work, you’re perfect for us,” Hallock adds.

Hallock says he is proud of Budget Blinds. “We’re hitting the ground running pretty well,” he says, noting that the company recently formed a key accounts division to make Budget Blinds the main provider for its major clients.

In addition, HFC is developing a private label closet line for Closet Tailors that will not only allow its clients to purchase products that are on the high and low end, but also in between. Usually, “There’s nothing in the middle,” he says. “It’s all high-end or super cheap.”

Although HFC has plans to develop other brands, it is staying focused on Budget Blinds and Closet Tailor, Hallock says. “We want to be able to prove that Budget Blinds wasn’t a one-hit wonder,” he says. “Once we prove [the success of Closet Tailors], we’re going to open the flood gates to other types of industries.”

But, for the moment, Hallock says he wants both brands to become the leaders of their industries.
“We’re a lean, mean fighting machine, and I think that allows us to thrive in poor economies when others cannot handle it,” he says. “I hope to be the one left standing at the end of the day.”

At The Top
Today, HFC says, Budget Blinds stands as the No. 1 window coverings franchise in America. In addition, Entrepreneur magazine has ranked the company as the No. 1 franchise company in the window coverings category for more than a decade.

“Budget Blinds gives consumers what they want – quality products at affordable prices, personal shop-at-home service and a consumer focused experience,” HFC says. “Budget Blinds aligns itself with the top brand-name manufacturers, allowing the company to be competitive with the largest window coverings retailers in the world.”

Tapping the Market
HFC notes that its Closet Tailors brand also fits a key niche. “As Americans continue to acquire more ‘things,’ they are looking for more advanced and affordable ways to organize their homes and their lives,” the company says.

“Closet Tailors taps into the multibillion- dollar home organization market by offering consumers quality home organization products with personalized shop-at-home service and convenience,” the company says, noting that its franchisees gain the support of HFC.

An Experienced Team
In addition to Chad Hallock, HFC’s experienced team includes Brent Hallock, who carries 15 years in the home improvement industry. Previously, HFC says, Hallock managed financial and legal functions for Budget Blinds and now leads both brands’ franchise support and training team. “While attending Fullerton College in Southern California, [he] was recruited by another window coverings organization to help build the company,” HFC says. “His initial duties consisted of lead generation, sales and installation.”

Hallock later was responsible for training of franchisees and support and product knowledge, the company says. “Today, he oversees all HFC franchise training programs, the entire support department, regional workshops and the national conventions,” HFC says.

The company adds that Todd Jackson is a veteran of retail sales and the service industry, whose experience exceeds two decades. “Like his partners, [Jackson] got his start in the windows covering industry in 1987,” HFC says.

“In five years with that company, [he] rose to the position of vice president of franchise sales, responsible for the sale of more than 78 franchises,” HFC says. Today, as operations manager for HFC, he manages finance, legal, human resources and production at the company’s headquarters.

At HFC, Tony Forbes manages the franchise service department, a support and training team that serves franchisees, the company says. “[He] maintains that strong communication with and support of the business owners [that] is the key to success,” the company says.

Previously, Forbes gained experience in hotel and restaurant management before joining Budget Blinds. There, HFC says, he took part in franchise sales and development, ownership transfers, trade show operations and franchise support. In addition, “He is a member of both the International Franchise Association and the California State Contractors Board,” the company adds.

In his role of HFC’s executive vice president and chief information technology officer, David Lewis sets and directs the long-term goals, polices and procedures for its IT department, the company says. “He also establishes long-term systems needs and hardware acquisitions to facilitate the company’s business objectives,” it adds.

“Over the past several years, [Lewis] has been instrumental in the development of an exclusive franchise business application that enables franchisees to capture customer information, calendar appointments, record transactions and run reports,” HFC says. “The benefits of this program run from the franchisee to franchise support system and the manufacturers.”

Sound Plans
HFC has earned rave reviews from its associates. For instance, Doug O’Donnell at Closet Tailors in South Orange County, Calif., said in a statement that “the Closet Tailors game plan is completely sound. “The support this company provides is untouchable,” O’Donnell stated. “If you need help or if you are struggling, someone is there for you. And they really truly [their] business.”

A pleased Budget Blinds franchisee was David Martin, in Weymouth, Neb. “This business has given me more income than I expected and it has happened faster than I could have wished for,” he commented.

Doug Robertson, a Closet Tailors franchisee in Knoxville, Tenn., expressed positive sentiments. “I believe in the strength of the founders of HFC and the system they have built,” he said. “With Closet Tailors, I knew I would get a higher-quality image and advertising campaign than what I was currently using,” he said.

Jim Orga, a franchisee for Budget Blinds in Newark, Del., also said that he was pleased with the marketing, calling it “the genius of the whole deal.”

In addition, “The training and support are great and they have the model set up … this is what a franchise should be,” he stated. “First-in-class in these categories.”
Mark Libby, a Closet Tailors franchisee in Auburn, Wash., praised the company in his testimony, as well.

“Knowing first hand what the HFC founders have done for Budget Blinds with training, support, marketing and vendor development, I have ended my existing relationship with a home organization supplier and joined Closet Tailors,” he said.