McDonald's Veteran Purchases Mr. Rooter as Second Career (3/00)

When Steve Ferree made the decision to purchase a Mr. Rooter plumbing franchisee after a 28-year career with McDonald's Corporation, one may wonder how his burger experience would translate to running a successful drain cleaning and plumbing business.

"When it comes to franchising, it's all about maximizing proven systems," Ferree said.

After working his way up the McDonald's corporate ladder from Restaurant management to staff positions in the Fast Food chain's Seattle and Portland regional offices, Ferree had attained one of the best educations in the Franchising industry. As a business consultant, he worked with McDonald's franchisees to enhance restaurant operations and achieve business goals. Just prior to his retirement from the golden arches, he was an operations manager overseeing the rollout of McDonald's new "Just for You" food preparation system to 334 restaurants in the Pacific Northwest and Alaska.

After a three-month hiatus from the fast pace of fast food, Ferree was hungry for a career again. This time, he wanted to own the business.

The opportunity seemed perfect when he came across an existing Mr. Rooter Franchise for Sale in Portland. As one of the nation's largest plumbing franchises, not only was it a booming business doing $2.5 million annually, but Ferree's operations and management experience would be a huge asset in taking the business to the next level.

"Steve represented the ideal candidate for Mr. Rooter because of his understanding of Franchise systems," said Mike Bidwell, president of Mr. Rooter. "We knew he would be a great addition to the network, and his results are proving that."

Before buying the Mr. Rooter franchise, Ferree got a feel for the business by riding with the plumbing technicians on service calls and working dispatch in the main office. He spent time with the owner, reviewing all aspects of the operation, from customer service to finance. He quickly found that running a Mr. Rooter wasn't all that different from running a McDonald's restaurant.

"It all comes down to taking care of the customer," said Ferree. "I'm a firm believer in providing outstanding customer service. Both are fast paced service-oriented businesses, so I felt comfortable in the hustle and bustle right away."

Ferree said that the reality of owning a plumbing franchise is not about knowing how to clean drains, the same way that owning a hamburger franchise isn't just about cooking hamburgers.

"The foundation of the business is already solid with a proven brand, systems and procedures established by the franchisor," he said. "From there it's about maximizing performance by motivating people, managing cash flow and marketing the business to build a loyal customer base."

Ferree also bought an existing franchise with a track record of success. He took on a fleet of 18 trucks and the technical support of the 18 plumbers and drain cleaners who were veterans in the industry. With an operations manager, supervisor and four office staff, Ferree added a fourth county to his territory upon purchase of the franchise.

Ferree started the New Year as the new owner of Mr. Rooter, and he hasn't looked back. Ferree's Mr. Rooter now provides drain cleaning and plumbing services to Clackamas, Multnomah and Washington Counties in Oregon and Clark County in Washington.

About Mr. Rooter

Mr. Rooter, part of The Dwyer Group (Nasdaq:DWYR), is a full-service plumbing franchisor supporting more than 200 Franchises in the United States and nearly 100 franchises in seven countries. Established in 1968, Mr. Rooter began franchising in 1974.

About The Dwyer Group

The Dwyer Group Inc., based in Waco, Texas, supports over 900 franchisees in the United States and nearly 400 franchisees in 23 countries. The Dwyer Group's franchise concepts include: Rainbow International® Carpet Care and Restoration Specialists™, Mr. Rooter® (Drain Doctor®in the UK), Mr. Electric®, Mr. Appliance®, Glass Doctor®, Aire Serv Heating & Air Conditioning® and an associate company, DreamMaker Bath & Kitchen by Worldwide™. Combined, these concepts offer a broad base of residential and commercial services. The Dwyer Group's objective is to reach 2,000 locations worldwide generating over $1/2 billion in annualized system-wide sales by Dec. 31, 2001.