Matchmaking Gets Personal

Sara Darling says her old job was like matchmaking -- as a business broker, she brought together company owners and prospective buyers, hoping some chemistry would develop between them.

Now a business owner herself, Darling really is a matchmaker, arranging dates for Twin Cities professional folks as a franchisee of the It's Just Lunch dating service.

"In small business in particular, it's really important that there's chemistry between the buyer and the seller because it's more emotional," said Darling, formerly a broker at Sunbelt, itself a network of franchised business brokerage offices. "There are a lot of parallels between business brokerage and the dating-service industry." In Darling's case, the attraction was immediate when she learned the It's Just Lunch franchise in Minneapolis was up for sale. She had always wanted her own business, and had gotten to know hundreds of companies during her 4½ years at Sunbelt.

"It just hit me right, for whatever reason," said Darling, who bought the franchise in February 2006. "If you look around long enough, sooner or later, something just hits you right. That's what I tell people about dating too." Darling said she saw growth potential in this market for the It's Just Lunch franchise system as a whole. That upside appealed to her inner entrepreneur, despite the restrictions franchisers place on what franchisees can -- and cannot -- do. Franchise agreements typically spell out how franchisees are to operate, specifying everything from office locations and appearance to which computer and phone systems they can use.

The company was founded in Chicago in 1991 -- long before Internet competition from the likes of Match.com and eHarmony.com. But It's Just Lunch did not begin franchising operations until 2001.

Darling, who has an MBA in marketing from the University of St. Thomas, was attracted to the franchise "because this was in its infancy, I knew they were looking for franchisee input on ways to grow, so that was attractive." The system has 85 to 90 locations across the country, plus a handful outside the United States.

Darling already has expanded locally, opening a St. Paul office, and plans to open by year's end in Rochester. Next in line are St. Cloud and Duluth.

As a member of the company's franchisee advisory council, she has offered suggestions on a systemwide effort to "reimage" the brand, updating the logo and colors, for example. She also has referred a local advertising agency and technology firm to the company, and they now are doing work for the system.

Her financing came in part from a venture capital group Darling knew from her business brokerage days. A good deal of the start-up capital also came from seller financing, Darling said.

Darling declined to discuss revenue except to say that it had grown 13 percent last year and was up more than 20 percent so far this year. The Twin Cities offices arrange about 600 first dates a month, Darling said, and have more than 1,400 active clients, equally divided between male and female subscribers. A standard membership runs for 12 months or 14 first dates, whichever comes later, and costs $1,900.

According to documents filed with the Minnesota Department of Commerce, the It's Just Lunch franchise system derived $3.8 million in revenue in 2006 from royalties and franchise fees collected from franchisees.

A New York-based private equity firm, the Riverside Co., bought It's Just Lunch in 2006. Terms were not disclosed. Riverside specializes in acquiring small and midsize companies.

First impressions Here's how it works: Darling or a staff member learns about a client's background, interests and preferences in potential dates during an hourlong, confidential interview.

Darling then makes lunch reservations or finds a convenient place for the clients to meet for drinks after work. The pair can pursue subsequent dates on their own or have the service arrange dates with other clients.

About 60 percent of first dates lead to second ones, Darling said. It's Just Lunch doesn't promise marriage, of course, but Darling said she hears two or three times a month from clients who have gotten engaged.

Typical clients are in their late 20s to early 50s, Darling said. Most have turned to a dating service because they have tired of trying to meet people in bars, want to avoid workplace romances or are weary of having friends or relatives set up dates for them.

Jared Lindquist, a Minneapolis management consultant, said he found value in the service -- the hand-selected dates and prearranged dates -- that It's Just Lunch provided. He said he had recommended it to a couple of friends who also signed up.

"The depth of the personal service that you get is what's really worth the money when you sign up," Lindquist said. "You have a team of professionals, and this is what they do all day, every day. It feels like it's a good [place] to be in." Lindquist said he had put his membership on hold while he launched a business of his own, but had stayed in touch with Darling and others at It's Just Lunch.

"The relationships didn't last forever -- but I don't regret it, either," Lindquist said.

The expert says: John Francis, a member of the board of directors of the International Franchise Association's board of directors and owner-operator of a PostNet franchise location in St. Paul, said Darling can accelerate her success by taking part in the franchise advisory council and sharing her ideas for adding value.

Francis urges new franchisees such as Darling to get to know other franchisees, visit their offices and learn how they succeed.

"Try to pattern yourself after the most successful franchises," Francis said. "Find the guys who are winning all the awards and making all the money, find out what's working for them and find out what lost money. They can forget they're part of a network and feel like they're all alone. Franchisees generally will help each other. A lot of times people forget that."

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