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The Miami-based franchise takes a novel approach.
Is franchising the future of lumber retail?
The co-op model championed by the likes of LMC and Do it Best currently sets the industry standard, though Guto Fugiwara, president of Miami-based Lumber Plus, is optimistic about the future of building materials franchises. The 5-year-old company, which specializes in composites as well as tropical hardwoods for decking and thermally-modified wood for ceilings and cladding, is off to a strong start. Already with 10 branches in operation—four in Florida, three in Massachusetts and one apiece in New Hampshire, Texas and New York—the company is eyeing steady growth ahead. There’s certainly plenty of opportunity.
Brazil-born Fugiwara is relatively new to the U.S. lumber scene, but his business credentials are impeccable. A Subway franchisee for 22 years, he eventually was appointed to oversee all of Subway’s operations throughout Latin America and the Caribbean. His unique background in top leadership for the world’s largest restaurant operator helped shape the vision of establishing lumber-centric franchises throughout the U.S. Swapping footlongs for decking, cladding, siding and soffits might seem a large leap, but business is business.
“Franchising is what I know best,” he says.
Steady, intentional growth
Rather than seeking swift expansion, the company is being very selective with its franchisees. It’s seeking building material industry insiders, Fugiwara says, which expands well beyond lumber—and those who can afford upfront fees starting at $40,000. Experts in specific building niches, be it cabinetry or even marble work, are what they’re seeking. In fact, the company’s franchisees in Boston were in the cabinetry business for 20 years—building relationships with local builders, architects and contractors along the way and paving the way for success in their new venture with Lumber Plus.
“What we’re looking for is experience in the industry and knowledge of geographical areas. We’re looking for older lumberyards that could create new revenue streams. We’re looking for builders and contractors who are looking for new opportunities,” he says.
What’s in it for franchisees? Along with robust marketing support and access to high-quality products, they get access to no shortage of business acumen.
“What we bring to the table is scale. We bring experience operating stores,” Fugiwara says.
Franchisees get access to a standard POS system to ensure each branch is aligned, which includes visibility of everyone’s inventory so they can exchange materials as needed. The company also uses a CRM tool (Hubspot) to streamline comms, coordinate efforts and improve messaging.
“We’re not your grandad’s lumberyard. We’re very digitally savvy and social media focused. Our marketing team helps new franchisees. We meet them regularly and monitor metrics to ensure they do well,” says Kevin Kilpatrick, Lumber Plus’ marketing chief.
Fugiwara sums up the company’s approach moving forward:
“For 2025, we’re not in a hurry. We’re doing a deeper analysis and prioritizing a more intentional, mindful selection process. The main goal is to make your franchisee successful.”
Lumber Plus looks ahead
It’s been a weird stretch for building materials, with plenty of uncertainty, but brighter building days seem to be on the horizon. On themacro side, there is an upward trend of consumer confidence, Fugiwara says. “We have lines that go well with remodeling, which is a growing market.” Fugiwara specifically cites decking, cladding, siding and ceilings as major areas of growth for the company. “New construction is still struggling with high interest rates. But as rates go down, construction will go up.”
Fugiwara believes Lumber Plus is well oriented toward consumer tastes and preferences. He cites demand for newer materials (like its thermally-modified wood for ceilings and cladding) and “sustainable” products (like composite and PVC decking boards), as well as the overall growth of “biophilic design” trends to “bring organic elements into the space where you live.”
Fugiwara admits that Lumber Plus is still in its infancy – “a baby in company age.” Right now, the focus is on trying to consolidate the Florida market, serving DIYers and contractors, and building brand awareness along the East Coast.
The trick, according to Fugiwara, is to pursue growth while juggling continuous efforts to train franchisees to ensure their success. However, he says that’s really more of an opportunity, as consistent contact and communication helps fuel collaboration, exchange of ideas and long-term success.
“We’re seeing a huge consolidation in the industry, with big guys acquiring smaller guys. It’s happening because a good chunk of operators, who are baby boomers, are looking to retire. They’re looking for a way out. For us, that’s an opportunity,” Fugiwara says.
Source: HBSDealer Read Original: HERE
