The Dating Scene

Now I've seen everything. I admit that I have come across some pretty unusual franchises during the past few years. An oxygen bar and a bubble gum-removal service come to mind. But a dating service? That one threw even me. But there you have it - a cookie-cutter approach to finding a mate. And get this: the company is looking for franchisees.

"I'm looking for people who are definitely willing to be hard working and roll up their sleeves. They care about people and are ethical," says Paul Falzone, CEO of Together Management Group, the company that resulted from the recent merger of Together (www.togetherdating.com) and The Right One (www.therightone.com). These "personal-introduction service" franchises now have a combined base of 89 locations in 36 states, and annual revenues of more than $35 million. They will continue to operate locations under both names.

The company provides a training and support package to new franchisees that includes a four-week training program. New franchisees learn to build a client database, market their location, and screen and interview applicants. There's a start-up marketing program, start-up supplies, software and equipment, an operations manual, on-site support, and research and development assistance.

The franchise fee for Together ranges from $50,000 to $80,000, while The Right One charges $20,000 to $50,000. The start-up costs for both shops range from $50,000 to $100,000. A 5% royalty is charged on all sales, and a 2% advertising fee may be instituted soon.

Playing The Field
The dating-service industry has long been dominated by mom-and-pop shops. The only major competitor Falzone could site was Great Expectations, a video dating service that stopped franchising in 1997. That left Together and The Right One to battle for market share on the franchise front.

Falzone had actually worked for Together from 1989 to 1997. He served as New England general manager for one year, then became franchisee of the Massachusetts and Rhode Island locations in 1990. When a 1997 NBC Dateline report alleged high-pressure sales tactics, inflated claims, insufficient screening of clients and incompatible matches at Together's corporate-owned location in Connecticut, Falzone left to form The Right One.

"I could see the whole thing starting to unravel," he says. "I didn't really feel it was a valuable investment for me to be part of the company, when I felt that I could do a better job."

Now, he's back - sort of. Together filed for bankruptcy in November 1997, and in December 1998, the company was bought by Brad Megahan and Ray Walker, two people in the industry whom Falzone has long respected.

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