Female Founders: Sharon Arthofer on Embracing the Entrepreneurial Spirit

Name: Sharon Arthofer
Title: Founder and CEO
Company: Sip Fresh
System-wide revenue: $2.8 million
No. of units: 4 locations open, 10 franchise units sold, 5 to open by Q2
International units: 0
Growth plans: Sip Fresh will open two new locations in Temecula, California, and Orlando, Florida, in early 2025 and a Denver location later in the year. We are focused on expanding in existing markets: Southern California, Florida, and Arizona. The brand plans to move into Texas and Nevada
Public or private: Private
Year company founded: 2017
Year started franchising: 2023
Your years in franchising: 25+ (2 as a franchisor)

Sharon Arthofer is an esteemed retail executive and seasoned entrepreneur with a passion for franchising and business development in the food and beverage space. She brings more than 25 years of multi-unit experience as a franchisee for respected national brands, such as Wetzel's Pretzels. With her experience growing start-ups and proven success in bolstering national brands across the nation, she created Sip Fresh, a specialty beverage concept serving fresh fruit-based juices, smoothies, and teas in a fun and engaging way.

As the well-regarded CEO and founder of Sip Fresh, she brings a wealth of knowledge and a unique owner-operator perspective to the brand. Her commitment to empowering franchisees and fostering a thriving franchise community has been instrumental in driving the concept's growth. She has established Sip Fresh as a prominent player in the beverage industry, touting streamlined operations and a low-labor model focused on driving high ROI and strong margins for franchisees. Sharon's dedication, expertise, and innovative approach inspirez and drivez the brand's future endeavors.

Beginnings

What inspired you to start your business? The inspiration to become a franchisor derived from my experience as a multi-unit franchisee and a strong interest in providing passionate entrepreneurs with a pathway to business ownership. I was always engrossed in growing a brand from the ground up, and I knew what success looked like in the mall franchising space. I knew my firsthand experience would carry over into Sip Fresh, which is why I'm heavily involved in all aspects of the business today. My goal was to create a business model that supports today's modern-day operator, so I worked hard to remove the pain points I had experienced in my ownership journey. We prioritize streamlined operations, small footprints in high-traffic areas, and a low-labor model to help franchisees maximize profitability.

For Sip Fresh, the fresh, fruit-based juice concept came to life after a night out with my husband. A mixologist at a local bar created handcrafted, eye-catching drinks. Everyone there was enthralled with this experience, which is when a light bulb went off in my head. I wanted to build a brand that combined this mixology experience with alcohol-free beverages that the entire family could enjoy while out and about. Sip Fresh is designed to be a fun, immersive experience for consumers without any behind-the-scenes complexities.

What is your background? My professional experience began in New York and in the marketing sector for multiple international brands, such as Nestle and Reynolds. I gained a strong background and understanding of business management and success. I realized that I wanted to pursue an entrepreneurial route, which led me to create a chain of retail stores within the New York market. After more than 10 years, I sold this business and moved across the country to Southern California, where I now reside. I then served as a franchisee for both Wetzel's Pretzels and Cold Stone Creamery, iconic brands within their respective industries. With my entrepreneurial mindset, I created Sip Fresh, a breakthrough specialty beverage concept offering uniquely flavored juices, smoothies, and teas.

How did that prepare you for starting your business? My professional experiences prior to creating Sip Fresh allowed me to gain a deeper understanding of the entrepreneurial process as well as successful business management procedures. While serving as a franchisee for multiple brands, I learned more about what it takes to create a successful franchising system that meets the needs and wishes of potential franchisees.

What's the best and worst advice you got when starting out? The best advice I received when starting was to not fear failure. While things might not work out the way you intended, it is important to view it as an opportunity to learn from that experience and try again. The worst advice I ever received was from individuals in the past who told me not to go on this franchising journey with Sip Fresh, and I'm fortunate that I didn't listen.

Was this your first time in franchising? I have served as a franchisee for both an emerging and start-up brand, gaining valuable insight and experience at different growth levels within the franchising industry.

Why did you choose to franchise? I have always loved helping other entrepreneurs start their businesses, and I enjoy encouraging them and guiding their journeys. I have all of this industry knowledge, and it is important to use this insight to help others. I am passionate about paying attention to fine details when training teams, which is imperative for consistency in the franchise space.

Did you have a partner/co-founder when you started? No.

How important was that in building your company? There were times when I wished I had a partner to bounce ideas off of when building Sip Fresh, but it also taught me how to adapt to any challenges I faced.

How did you fund your company at the beginning? As you grew? In the beginning, Sip Fresh was self-funded, which highlights how much I believed in this brand. I used those funds to establish the first corporate-owned store to show proof of concept. This flagship store was a massive success, so we decided to begin the franchising process and provide opportunities for other entrepreneurs.

What were the keys to funding your brand? In the beginning, the key was having enough confidence in myself and the Sip Fresh brand to self-fund the concept. Now, highlighting the success of our locations and our supportive and innovative franchising model has been key to funding the brand.

The Business

What has been the best and the hardest thing about being an entrepreneur? One of the best things about being an entrepreneur is building a brand from the ground up and seeing your hard work transform into a successful business. I loved having control over the outcome of the brand, such as the creative aspects and building the franchising system. It is truly gratifying and rewarding to see your vision come to life and share that with other passionate entrepreneurs.

The most difficult aspect of being an entrepreneur is constantly making significant decisions that can carry the weight of your brand's success. Decision-making falls solely on your shoulders when you don't have a partner or co-founder. Due to this, you must find ways to mitigate burnout, which can be tough at times. However, I have always believed that the rewards far outweigh the challenges.

How has your experience in running a franchise business been different from what you expected? The transition from being a franchisee to a franchisor has been a significant difference. As a franchisee, collaborating with other franchisees felt more like a peer-to-peer partnership. As a franchisor, I approach those relationships with a leadership-heavy focus. While this can be a complex approach, it has been rewarding to support and guide franchisees.

How did you grow the brand at first? What changed as you expanded? Sip Fresh's growth journey began with a corporate-owned location, which served as our proof of concept and the foundation for expanding the brand. We built a system of operations with expansion and franchising in mind, ensuring that the brand was well positioned to grow. The increasing popularity of the beverage industry coincided with the creation of Sip Fresh, allowing us to enter and grow in the market at a key point in time. As it grew, we started receiving inquiries regarding franchising opportunities, so we began running our franchising system. We never changed our commitment to providing innovative, trending beverage options while using fresh, fruit-based ingredients.

How did you transition from founding a brand to leading a brand? I sought out and brought on a talented leadership team that understood my vision. Our established operations, marketing, finance, and franchise development teams are the foundation of franchisee success. Providing significant support and guidance to our franchisees has remained a priority for our franchising system. It is crucial to surround yourself with a supportive, driven, and growth-focused team when founding your brand and leading it.

How would you describe your leadership style? My leadership style focuses on promoting the highest level of engagement and creativity from those on our leadership team and our franchisees. I have always prioritized encouraging continuous improvement and growth from those I lead and myself. Empowering others has been foundational throughout my career and has carried into my current leadership style.

What is the key to your company's success? Early on, we established a strong vision for the brand and a detailed growth strategy. We continue to reference these pillars, which is why we have had such consistent success. We use fresh ingredients while keeping up with trending flavors in the beverage industry. Offerings include our Cucumber Mint Lime Sip and our variety of Cha Cha Chamoys. While we continue to evolve, we remain true to our core values and systems.

Regarding our franchising success, our operations system was built to meet the needs of franchisees, which references my previous experience as a franchisee for multiple brands. We have developed a system that uses a low-labor model, emphasizes streamlined operations, and maximizes profitability, leading to strong growth for the brand. We also seek out leadership at every level of the organization, providing additional support to all franchisees and their teams.

Female Founder

Was being female an advantage or disadvantage for you in building your company? How? At the start of my career, being a woman presented some challenges, particularly when financing my business. In the late 1980s, I went to apply for a business loan in New York only for management to inform me that I must return with my husband and allow him to co-sign the loan. While this was a barrier I didn't originally anticipate, I didn't let that deter me from pursuing a career in entrepreneurship.

That being said, being a woman has also offered multiple advantages when building my company. I built a career that provided flexibility, which is not often the case for other careers. Additionally, building Sip Fresh provided me with valuable knowledge, which I routinely reference when mentoring other women looking to pursue entrepreneurship. Looking back, the challenges I faced were opportunities to become adaptable and resilient, which have become some of my greatest strengths.

Have you found specific advantages or disadvantages to being a woman business owner? Reflecting on my career, being a woman business owner has created unique challenges and advantages. Society's expectations of gender roles are a hurdle that women face throughout their careers, including careers in entrepreneurship. However, I have always made it a priority to focus my energy and attention on the advantages that this career has brought. To a degree, I have been in control of my work-life balance while ensuring that the Sip Fresh team and I do not face the pay-gap issues that affect many women.

What has been your biggest challenge as a woman entrepreneur? The biggest challenge I have faced as a woman entrepreneur has been the expectation of gender roles that are still somewhat intertwined in the mindset of our society. The expectations often encourage the limitation of women in leadership roles, especially in male-dominated industries. Breaking past these expectations has required resiliency and strength, but it has taught me valuable lessons about determination and not conforming to societal expectations.

Why do you think there are fewer start-ups with female founders than male ones? After speaking with young women in male-dominated industries, the accessibility and affordability of childcare are prevalent topics and career roadblocks for women. Childcare has often been the responsibility of women, which can be a heavy and significant task to face and one that remains incredibly expensive.

There is a bias toward funding a woman-led start-up, which I experienced several years ago when simply trying to secure a business loan. This bias may look different and be less apparent than years ago, but it is still present in the business landscape.

What do you think is the biggest issue for women in the workplace? Childcare accessibility and affordability remain among the biggest issues women face in the workplace. This accessibility issue often disproportionately affects women and can be reflected in women's representation in leadership roles. Whether conscious or subconscious, many women put the weight of childcare arrangements on their shoulders, which can deter them from pursuing leadership roles because it reduces flexibility in balancing personal and career responsibilities.

From your perspective, what notable changes have you seen for women in franchising since starting your brand? Looking back at the beginning of my franchising career, very few women were in the industry. While we were the minority within the franchise sector, we remained incredibly successful through our attention to detail and ability to create consensus and juggle multiple responsibilities, which women have always been known for. Now, it has been great to see the growing number of women entering the franchising sector with motivation and determination for greatness. While we may be growing in numbers, the incredible contributions of women in franchising have remained consistent.

Which female leaders do you admire? Why? So many female leaders have left a lasting impact on me and have inspired me. I admire Cheryl Bachelder, who was the CEO of AFC Enterprises, Popeyes Louisiana Kitchen's parent company. She successfully spearheaded the substantial growth and revitalization of Popeyes and pushed through obstacles that arose throughout the process.

I also admire the late Sandra Day O'Connor for her ability to create consensus on the U.S. Supreme Court. Her elevation to the court signified a major milestone for women in government and leadership.

On a personal note, I deeply admire my daughter, who was recently named a partner in a male-dominated field. I'm incredibly proud of her and the determination she has fostered throughout her career in the consulting industry.

Has mentorship made a difference in your professional and personal life? How? When I was beginning my career in a male-dominated environment, I did not receive a great deal of personal mentorship. However, that didn't stop me from conducting research and continuously asking questions to learn as much as possible. I now prioritize using my platform to mentor other women in the industry.

Looking Ahead

What would you like to achieve in the next five years? In the next five years, I would love for us to hit our targets in Sip Fresh's growth plan and continue to build upon our successful franchise system with passionate, driven franchisees. Having the ability to provide strong franchising opportunities for those interested in entrepreneurship will always be a passion of mine as we continue to grow.

What's coming up that you're excited about? I am looking forward to Sip Fresh's growth in 2025. Our upcoming Orlando, Florida, and Temecula, California, locations are slated to open in early 2025, allowing our brand to grow in a new market and an existing one. Additionally, we are in the development phase of our Denver location, which will mark our brand's first entrance into Colorado. Sip Fresh will be taking strong strides in our growth. We are thrilled about the enthusiasm we see in the areas where we are growing.