Business View - February 2016 87
FRANCHISE
the above locations, as well as in universities, YMCAs,
libraries, shopping malls, hotel lobbies, etc. It distrib-
utes over 6,000 natural, healthy products made by
nationally recognized brands and customized for their
individual locations – for example, Kosher, nut-free,
gluten-free, and other specialized menus. Top sellers
are items like fresh fruit juices, protein shakes, pro-
tein bars, soy milk, organic yogurt, granola bars, cereal
bars, baked chips, and baked crackers.
The machines, themselves, are manufactured by
Automated Merchandising Systems (AMS), a family-
owned vending machine company in West Virginia.
“We started working with them mainly because they
have, without a doubt, the most reliable vending ma-
chines on the market, and secondly, they had a distri-
bution network in place that would allow us to sell a
machine to somebody anywhere in the U.S. And they
would - via their distribution network - schedule it to be
delivered and installed, maintain a warranty on it, and
provide spare parts in the event they would need it,”
says Yates. “And that allowed us to build this national
infrastructure that we have in place – very similar to
the reason why we chose the company that we use
to buy our healthy snacks and drinks from - they also
deliver nationwide.”
While Fresh Healthy Vending has fashioned itself as a
franchisor, it still operates some of its own machines.
“Our goal has always been to franchise the concept
and give other people around the country the opportu-
nity to profit from what we call the ‘health food vend-
ing revolution.’” Yates says. “But operating corporate
machines locally was, initially, a way for us to be a ‘test
kitchen’ for our franchisees. It was a way for us to say
‘we not only talk the talk, we also walk the walk.’ So
we operate our own machines; we test new products;
we experience the trials and tribulations of our fran-
chisees and share best practices (and also worst prac-
tices) in an attempt to make them as successful as
possible.”
That success, according to Yates, is mostly achieved
by franchisees who, themselves, are healthy, socially
responsible, and sold on the concept. “We don’t have
any franchisees that don’t understand the concept
of health and wellness - that’s for sure,” he says. But
Fresh Healthy Vending also offers its franchisees a
unique, value-added proposition that helps further en-
sure that their businesses will succeed.
In return for a minimal investment in ten machines,
