Francorp Client - USA Subs

Derry Sub Shop To Franchise Nationally
(Sunday, July 22, 2007) - USA Subs, for two decades a fixture as a standalone shop at 66 Crystal Ave., Derry, is about to go national.Working with Olympia Fields, Ill.-based Francorp, USA Subs has prepared for a roll out of its sandwich shop concept."We are going to be registering in every state in the country as of the first of the year," Karl Kuceris, co-founder and chief executive officer of USA Subs, said.

Founded in 1986 by Kuceris and partner Russell Hertrich, the chief financial officer, USA Subs last year brought in Kuceris' son, Keith Kuceris, as a partner and chief operating officer.The three formed American Dream Franchising LLC to franchise USA Subs, which is known for its "Steak Bomb" sandwich."Russell happens to be my best friend since first grade, and we're both in our 50s now," Karl Kuceris said. "We decided, you know, we're going to go with this, and we're going to put Derry, New Hampshire, on the map just like Subway did to Milford, Conn."USA Subs has an extensive menu of sandwiches, wraps and salads, offering items that are similar to those found at Subway, Quiznos and D'Angelos. USA Subs also offers a 6-foot party sub. "We sell those to companies in Boston," Kuceris said.Meat and veggie subsThat combination of choice under one roof has drawing power. "We're actually, we've been told, one of the highest volume sandwich shops in New Hampshire," Kuceris said.

The Derry sub shop sells more than 600 pounds of steak a week."We've got customers who come from Boston, and an elderly couple who come from Durham, N.H., an average of three times a week," he said.USA Subs has partnered with the largest developer of franchises. Francorp counts among its clients Jimmy John's Gourmet Sandwiches, Bridgestone, Shell and Ace Hardware.Donald D. Boroian, founder and chairman of Francorp, is bullish on USA Subs. "We are seeing the emergence now of new players in the sub sandwich in particular," he said. "They're doing a lot of turkey and chicken and even vegetarian sandwiches."USA Subs has gone beyond that point of the standard fare, and they serve a premium product," Boroian said. "As a result of that, we believe they have a very good shot at the sandwich industry, at the franchise industry in general."Boroian noted the cost of opening a USA Subs franchise will be less than many competing franchise restaurants because a freestanding building isn't required and they can be situated in shopping centers and storefronts.

Initial outlays for new franchisees will range from about $296,500 to $421,167, according to the www.usasubs.com Web site. Franchisees can lower their start-up costs by leasing rather than buying their equipment, Kuceris said.That's substantially less than the average $1.5 million investment it takes to start a typical fast food restaurant in a freestanding building, according to Boroian.Potential franchisees as well as franchisors can take a free quiz and download a free book from the Francorp Web site, www.francorp.com.Kuceris said 32 candidates have applied to franchise USA Subs stores, all but two for sites in New Hampshire. The others are in Maine and New Jersey."A lot of these franchise stores have been having problems over the years, and the problem is that they don't do enough volume," Kuceris said."To do the volume, you have to have the product that the customer wants," he said. "Especially in New England, you have to have a grill. Our grilled Steak Bomb is our most popular sandwich,"Newest partner Keith Kuceris worked in his father's business as a high school and college student, but detoured for awhile with stints as a soap opera actor in New York (One Life to Live and All My Children) and director of ticket operations for the Pawtucket Red Sox. He returned to the family business full time a year ago, officially becoming a partner in USA Subs Jan. 1."My parents came over from Latvia and this kind of thing was the American Dream to them," Karl Kuceris said."We can actually offer that to other people. That's why we came up with the American Dream Franchising name."I've got one guy that's been with me 20 years, another 15 years," he said."We actually try to take care of our people better than the average chain does; it's a really strong family atmosphere that we have here. That's what it's all about. It's about family, it's about independence, it's about that dream. "It takes a lot of hard work, but the hard work can pay off," he said.

www.francorpconnect.com

Don Boroian - Francorp Malaysia

About Francorp Inc
Francorp Inc was founded 30 years ago by its Chairman Don Boroian and has counseled more
than 10,000 companies and helped more than 2,000 businesses join the ranks of franchisors in
the USA, Europe, Middle East and Asia. Among its clients are Kentucky Fried Chicken, Omni
Hotels, Holiday Inns, Ace Hardware, Damon’s, USA Baby, Auntie Anne’s Pretzels, Culver’s,
Jollibee, Jimmy John’s, Jersey Mike’s Subs, Texaco, Shell and BP Amoco.
In Malaysia, Francorp’s clients include Wardrobe (men’s tailoring maestro), CN Health &
Beauty (beauty solution services), Kamdar (textile superstore), GDO (lighting and furniture),
Ridpest (total pest management control system), and EOA (pre-owned car dealers). Francorp
Malaysia is also developing franchise programs for other clients like Amee Philips (specialty
jewelry), Bao Bei (Mandarin language centre), Felisa (beauty spa), Lo Hong Ka (bird’s nest
retailer), MyKamera (photography shop), Gift & Logo (corporate and premium gifts), and Syed
Bistro (restaurant).
Francorp is a global leader in the franchise consulting industry with a unique approach that
remains unmatched by any other firm in the world. With a team of experts whose talents are
coordinated seamlessly to create customized materials that fit the specific needs of its clients,
Francorp has the global reach to help clients expand their business and creates a local presence to
adjust their business to fit each country's unique culture and laws.
About Affandy Faiz
A well-sought speaker in franchising, Affandy has more than seven years experience in the
franchise industry, coupled with auditing, corporate finance and direct marketing experience of
more than 10 years. He has undergone the Francorp's system training program in Chicago, USA
and the first Malaysian to qualify as a Certified Franchise Executive (CFE), awarded by the
Institute of Certified Franchise Executives (ICFE) of USA. Affandy has been featured in
mainstream Malaysian electronic media (TV and radio) and regularly contributes franchise
articles to leading newspapers and business journals.

Francorp Phillipines to work with Cordillera Coffee

Cordillera Coffee is a growing company committed to serving the best Philippine Mountain Coffee.
We purchase high quality whole bean coffee exclusively and directly from the small backyard farmers of the Cordillera Region. We roast and sell them along with fresh, rich-brewed, espresso-based beverages, a unique selection of food with a distinctively ethnic flavour, and a variety of homemade pastries and confections.Cordillera Coffee intends to expand its business by opening new branches in prime business areas, not only in Metro Manila, but other key spots in the Philippines, like Baguio City and Cebu City.
In line with its expansion program, Cordillera Coffee is presently in the process of putting up a franchise program with Francorp, the leader in franchise development, as consultant.Company name: Cordillera Coffee CompanyDescription: A coffee shop offering the Philippine mountain coffee, ArabicaFranchise fee: P150,000 for kiosk and P350,000 for full store set-upTotal investment: P600,000 for kiosk and P1.9 million for full store

Franchise package:Trade name and trademark Operations Manual Site selection assistance Training for staff about coffee and food preparation National marketing and advertising support Pre-opening and grand opening assistance Initial inventory Working capital Construction cost and advance rent Store and kitchen equipment Continuous research and development Business consultation and regular meetings with franchisees Preferred sites:Business districts like Ortigas Center or Makati Areas near campuses Museums Tourist destinations like Intramuros, Malate, et cetera Application procedure: Send letter of intent and description or map of the proposed location if there is. Company-owned outlets: 3
Year started: 2003
Franchising since: 2006
Franchised Outlets: None
Term of franchise: 5 years
Renewal: 5 years
Projected ROI: 1.25 years to 2.25 years
Royalty fee: 5 percent
Advertising fee: 3 percentContact details:Unit 104 Llanar Building, Xavierville Avenue cor. B. Gonzales St.,Loyola Heights, Quezon CityTel: (02) 436-0324, 482-2515
E-mail: cordilleracoffee@gmail.com
Website: www.cordilleracoffee.multiply.com

www.francorp.com

Francorp Regional Director - Stephen Russell

PRESS RELEASE

(Company Letterhead)

FOR IMMEDIATE RELEASE FOR INFORMATION CONTACT:
Francorp
(401-787-2530)

Francorp Welcomes New Regional Director


(South Jersey, NJ) - Francorp is proud to announce that Stephen Michael Russell has been appointed Regional Director of the Greater Philadelphia area.

Stephen Michael Russell is a dynamic individual with integrity and charisma. He resides in South Jersey with his loving wife and four beautiful children. He embraces the ' American Dream' to the fullest and believes that any motivated self-starter can make it big. His mission statement would be 'Persistence, perseverence and drive will always take one to a place of greatness.' He is a vibrant addition to the Francorp team and is a Finance Specialist. Stephen's background includes various type of business finance from commercial/residential mortgages to business equipment leasing.

Francorp is acknowledged as the world's leader in franchising. Since 1976 Francorp has provided full development programs to help insure the franchise success of over 2,000 businesses. To continue helping businesses expand, Francorp has established a Regional Directors Program. This program allows representatives throughout the country to provide the necessary resources to new business interested in franchising. For more information, visit www.francorp.com or call 401-787-2530.


# # #

Francorp Regional Director, Walter Smith

PRESS RELEASE FOR IMMEDIATE RELEASE

FOR INFORMATION CONTACT:

Francorp
(310-228-8517)

Francorp Welcomes New Regional Director Walter Smith. (Los Angeles, CA) - Francorp is proud to announce that Walter Smith has been appointed the Regional Director of the Greater Los Angeles Area. Walter holds a B. S. degree in Business Administration/Marketing from California State University, Los Angeles, California he has over 20 years experience directing sales organizations. Responsibilities included: Product development, account development, sales& marketing planning, inventory management and over-all business operations management. Francorp is very excited to be working with Mr. Smith and looks forward to having such a valuable asset join the franchise consulting team.

Francorp is acknowledged as the world's leader in franchising. Since 1976 Francorp has provided full development programs to help insure the franchise success of over 2,000 businesses. To continue helping businesses expand, Francorp has established a Regional Directors Program. This program allows representatives throughout the country to provide the necessary resources to new business interested in franchising. For more information, visit www.francorp.com or call 310-228-8517.

# # #

Francorp Regional Director Update

PRESS RELEASE


FOR IMMEDIATE RELEASE FOR INFORMATION CONTACT:
Francorp
(716-837-0595)

Francorp Welcomes New Regional Director


(Charlotte, NC) - Francorp is proud to announce that Kent Boxberger has been appointed Regional Director for the Greater Charlotte, NC area.

Joel Neumann has been a Franchise Consultant and owner of Franchise Finders Inc., an independent affiliate of The Business Alliance franchise brokerage, since October 1, 2003. As a franchise consultant, Mr. Neumann assists franchise companies in various industries sell single, multiple and area developer units. In addition to operating Franchise Finders, Mr. Neumann is also the Franchise Director for Elect Home Care, a growing home care assistance franchise. Prior to Franchise Finders he was a senior manager in a major public accounting firm.

Francorp is acknowledged as the world's leader in franchising. Since 1976 Francorp has provided full development programs to help insure the franchise success of over 2,000 businesses. To continue helping businesses expand, Francorp has established a Regional Directors Program. This program allows representatives throughout the country to provide the necessary resources to new business interested in franchising. For more information, visit www.francorp.com or call 716-837-0595.

Health Care Franchises

Business is booming for new health care franchises


Ace Stryker - Daily Herald
The doctor's office could be going the way of the restaurant. Local and national numbers suggest an emerging trend among health care providers: More optometrists, chiropractors and other specialists are signing up with franchises, opting for the security of an established brand over the frenzied tug-of-war of an independent practice.
Companies like Massage Envy, a chain offering therapeutic massage services, are burning up Entrepreneur magazine's Franchise 500 list. The Arizona-based company started franchising in 2003 and has since exploded into 439 locations, including 13 in Utah and one more on the way. The breakneck pace earned Massage Envy the No. 2 spot on Entrepreneur's listing of new franchises this year.
It's a similar story for SpinalAid Centers of America, a Florida-based company offering nonsurgical spinal decompression therapy. Having started franchising in 2003, the chain now boasts 142 locations across the United States, including eight in Utah. That was good enough for 18th place among new franchises this year.
Dr. Eric Lee owned Utah's first SpinalAid franchise in American Fork. He founded a private practice there in 2003, but signed up with the national chain in 2005 after meeting with its founder, Dr. Frank Liberti, in Florida. He said he was hesitant at first to give up on his independent practice and join the company, fearing it could reflect an image unrepresentative of his philosophy -- but as he began to see the benefits, those feelings were assuaged.
"I had a lot of ideas," he said. "When I met with them and they said, 'We've already got all this stuff,' I didn't have to do it."
Lee said the biggest advantage he's seen is that SpinalAid handles the business end of things -- coordinating marketing, dealing with insurance companies -- so he can give his undivided attention to healing, rather than worrying about the bottom line.
"I can focus fully on the patients," he said. "I don't have to worry about printing and creating material, creating a brand -- that's all there. That's huge."
Now, Lee can go online and simply click on any number of template ads created by the company. Days later, they're appearing in the newspaper and on TV.
Lee pitched SpinalAid as the safe choice for consumers, too: Like a McDonald's, patients know what to expect in the way of services and pricing at any SpinalAid they enter, whereas billing could vary wildly from one independent practice to another. That's beginning to yield industrywide benefits, he said, where large insurance companies are looking to franchises to help standardize how compensation is awarded for different procedures.
Aaron Massey, a Pleasant Grove man suffering from a bulging disk he sustained while building a shed, visited the store Thursday for a lumbar decompression procedure. Having been treated by independent chiropractors before, he said a friend recommended he try the franchise over conventional offices.
"They're one-on-one with the patients," he said.
Massey said he had no reservations about seeing a franchise provider instead of an independent doctor -- that the potential "McDonald's factor" wasn't an issue.
Optometry chains have led the field of franchised health care for years. Pearle Vision began franchising in 1980, and now maintains 402 independent stores and 496 company-owned ones. It currently holds spot No. 104 on Entrepreneur's Franchise 500 list.
Entrepreneur magazine's staff did not return calls Friday for comment.

www.francorp.com
www.francorpconnect.com

Francorp Client Fruyu

Francorp Client Fruyu featured in the North Store Online. Fruyu delivers an all natural fantastic product and stands out from the rest of the Yogurt competition.

Byproducts of the yogurt revolution
Jun. 5, 2008
By Erica Egenes, Nikki Hernandez, and Jimmy Vuong
Kissberry
Kissberry offers both smoothies and yogurt combinations. The yogurt comes in two flavors: original and green tea. Then there are various toppings that can be added. The original-flavored yogurt isn’t as tart as Pinkberry’s and some others’ which makes it bland and not as good. Just like at Pinkberry, there was an assortment of cereals, fruits and various other toppings. The berries at Kissberry were not terribly fresh or very juicy. Between the slightly bland yogurt and the mediocre fruit, it was just a bland overall experience.
Fruyu
www.fruyu.com
Fruyu is simply another baby of the yogurt boom but that does not make it less than its peers. Just like the others, Fruyu features plenty of flavors that may be accompanied by plenty of toppings. These toppings range from your everyday breakfast cereal to fruit that is cut in front of you. One thing that does set Fruyu apart from the other yogurt parlors is the fact that it features real yogurt. Real yogurt has active cultures which is what makes the yogurt really healthy for you without sacrificing the taste. Also, Fruyu’s yogurt dispensers have a swirl feature that allows you to swirl two of your favorite flavors together.The cafeteria style serving is good when you really need your yogurt fix or simply like to mix and match flavors with the bountiful toppings.
Pinkberry
www.pinkberry.com
Pinkberry is considered to be the originator of this yogurt craze. Pinkberry is a perfect choice to lead the yogurt frontier. As the original, it does not feature the cafeteria-style serving system, which actually is good for those of us who have problems with controlling portions. Where Pinkberry’s successors excel, Pinkberry fails. Pinkberry only features two flavors whereas the other yogurt parlors feature as many as eight. There are plenty of toppings to choose from including fresh cut fruit, well worth the price. As far as styling goes, Pinkberry is the essence of swank. The white interior is highlighted with vibrant colors which set the mood for a smooth and healthy snack.
Berrysweet
Berrysweet is just as modern and chic as any other yogurt shop around, with black and white tiles and a couple of computers to mess around on while you’re sitting there scarfing down some frozen yogurt. The yogurt choices available are just like those at every other place, with a few extras being watermelon and taro. The watermelon flavor is a must-try but the taro yogurt is a definite must-NOT-try. The topping bar was loaded with the usual tasty toppings: cereals, fruit, candy, etc. What's different about this yogurt place is that it's self-serve, so you get exactly what you want. One wonderful thing about Berrysweet is its business hours. It’s open until midnight seven days a week. So when you’re sitting at home studying for a billion hours, you can stop by Berrysweet when you’re done (if you’re done) to treat yourself, even if it’s the middle of the night.
Swirl
Swirl Frozen Yogurt is just like other frozen yogurt shops: filled with tasty flavored frozen yogurt choices and a wide array of yummy toppings. Unlike the other frozen-yogurt shops, Swirl attempts to gear its products toward simplicity and nutrition. In contrast to Swirl’s goal of being so nutritious, is the topping bar. It was full of the most fattening toppings around. There was everything from cereal to cake and cookies but of course they had their minuscule amount of fresh and delicious fruit on the side. Swirl is a typical yogurt shop and definitely not a stand out.
www.francorp.com

Francorp Regional Director - Peter Yang

PRESS RELEASE


FOR IMMEDIATE RELEASE FOR INFORMATION CONTACT:
Francorp
(714-293-7124)

Francorp Welcomes New Regional Director


(Diamond Bar, CA) - Francorp is proud to announce that Peter Yang has joined the Regional Directors Program.

Peter has had extensive experience in sales in business development, most notably with First Data, a giant in the credit card processing industry. He has been successful in acquiring sales both with large corporations as well as small businesses through a variety of sales methods including: telemarketing, business to business, cold calling, referrals, and networking. Peter also has a BS in Organizational Leadership from Biola University in La Mirada, CA with a special emphasis on Business Ethics. He currently resides in Diamond Bar, CA.

Francorp is acknowledged as the world's leader in franchising. Since 1976 Francorp has provided full development programs to help insure the franchise success of over 2,000 businesses. To continue helping businesses expand, Francorp has established a Regional Directors Program. This program allows representatives throughout the country to provide the necessary resources to new business interested in franchising. For more information, visit www.francorp.com or call 714-293-7124.


# # #

Francorp Regional Director - Kent Boxberger

PRESS RELEASE


FOR IMMEDIATE RELEASE FOR INFORMATION CONTACT:
Francorp
(678-462-8646)

Francorp Welcomes New Regional Director


(Atlanta, GA) - Francorp is proud to announce that Kent Boxberger has joined the Regional Directors Program.

For over 25 years, Kent has worked with Fortune 500 companies to grow, expand and increase business success. Over the past 12 years, as President of his own small business, MarketCorp International, Inc., in Atlanta, GA, he has worked in various executive management positions as a consultant with expertise in Sales, Marketing, Advertising, Management, Operations and Training, with dozens of companies in many industries.

Prior to joining Francorp, Kent worked for Bell Atlantic Leasing and Finance, as a Regional Manager facilitating the finance and expansion for business equipment manufacturers, distributors and dealers nationwide. He also worked with large Franchise organizations, providing finance and leasing of multiple unit locations, for expansion on a national scale. In addition, holding various positions and as an executive, he has worked with some of the largest insurance companies, in providing personal and business insurance through agents, brokers and direct sales organizations.
Francorp is acknowledged as the world's leader in franchising. Since 1976 Francorp has provided full development programs to help insure the franchise success of over 2,000 businesses. To continue helping businesses expand, Francorp has established a Regional Directors Program. This program allows representatives throughout the country to provide the necessary resources to new business interested in franchising. For more information, visit www.francorp.com or call 678-462-8646.


# # #

Gymboree's Update

Gymboree's Net Income Jumps 38%
On Increase in Sales, Gross Margin
By LAUREN POLLOCK
August 20, 2008 5:25 p.m.
Wall Street Journal
http://online.wsj.com/article/SB121926377601257739.html?mod=djkeyword

Gymboree Corp.'s fiscal second-quarter net income rose 38% on an increase in sales and gross margin, and the children's clothing retailer affirmed its full-year outlook.

For the period ended Aug. 2, net income increased to $8.01 million, or 27 cents a share, from $5.8 million, or 19 cents a share, a year earlier. The latest period included $13.5 million in depreciation, amortization and stock-compensation expense, up from $10.5 million.

Earlier this month, the company raised its earnings forecast to 23 cents to 25 cents a share, above analysts' expectations, citing increased promotional activity, markdown optimization and tight expense management, despite a difficult retail environment.

The latest mean estimate of analysts polled by Thomson Reuters was for per-share earnings of 24 cents.

Total sales climbed 13% to $205.7 million. Two weeks ago, Gymboree said net retail sales jumped 13% to $202.8 million on a 1% increase in sales at stores open at least a year, in line with analysts' forecast for a low-single digit increase. Gross margin rose to 45.7% from 44%.

Gymboree expects fiscal third-quarter earnings of $1.02 to $1.04 a share and affirmed its already increased fiscal-year earnings guidance of $3.15 to $3.20 a share. Analysts were looking for $1.04 and $3.20 a share, respectively. The company also expects third-quarter same-store sales to be flat to "slightly negative."

As of Aug. 2, Gymboree operated 835 retail stores and ran play programs at 597 franchised and company-operated centers in the U.S. and 30 other countries.

Write to Lauren Pollock at lauren.pollock@dowjones.com

Macaroni Grill Selling for $132 Million

Monday, August 18, 2008 - 5:05 PM CDT
Macaroni Grill selling majority stake for $132 million
San Antonio Business Journal
http://www.bizjournals.com/sanantonio/stories/2008/08/18/daily10.html?b=1219032000%5e1686899

The parent company of Romano’s Macaroni Grill Italian Restaurant said Monday it is selling a majority stake in the chain to private equity firm Golden Gate Capital Inc.

There are three Macaroni Grill restaurants in the San Antonio area. Phil Romano opened the original Romano’s Macaroni Grill in Leon Springs in 1988. However, he sold the restaurant concept to Dallas-based Brinker International Inc. (NYSE: EAT) in 1989.

Brinker, which also owns the Chili’s, On the Border and Maggiano’s Little Italy restaurant chains, says San Francisco-based Golden Gate will pay $131.5 million in cash for an 80.1 percent stake in the chain.

Brinker has committed to offering corporate support services for up to a year, with an option for an extension, and will have members on the board of directors.

“Golden Gate is well-known for partnering with corporations to help grow established consumer and retail brands,” Brinker Chairman and Chief Executive Officer Doug Brooks says. “Brinker International will retain a minority position in order to both maximize the value to Brinker’s shareholders and contribute to the success of the Macaroni Grill as a standalone entity.”

The deal with Golden Gate is expected to close by the end of the year.

Founded in 1975, Brinker International has more than 1,800 franchises or corporate-owned restaurants in 24 countries. In its fiscal year ended June 27, 2007, it recorded $230 million in net income on $4.38 billion in revenue.

Macaroni Grill Selling for $132 Million

Monday, August 18, 2008 - 5:05 PM CDT
Macaroni Grill selling majority stake for $132 million
San Antonio Business Journal
http://www.bizjournals.com/sanantonio/stories/2008/08/18/daily10.html?b=1219032000%5e1686899

The parent company of Romano’s Macaroni Grill Italian Restaurant said Monday it is selling a majority stake in the chain to private equity firm Golden Gate Capital Inc.

There are three Macaroni Grill restaurants in the San Antonio area. Phil Romano opened the original Romano’s Macaroni Grill in Leon Springs in 1988. However, he sold the restaurant concept to Dallas-based Brinker International Inc. (NYSE: EAT) in 1989.

Brinker, which also owns the Chili’s, On the Border and Maggiano’s Little Italy restaurant chains, says San Francisco-based Golden Gate will pay $131.5 million in cash for an 80.1 percent stake in the chain.

Brinker has committed to offering corporate support services for up to a year, with an option for an extension, and will have members on the board of directors.

“Golden Gate is well-known for partnering with corporations to help grow established consumer and retail brands,” Brinker Chairman and Chief Executive Officer Doug Brooks says. “Brinker International will retain a minority position in order to both maximize the value to Brinker’s shareholders and contribute to the success of the Macaroni Grill as a standalone entity.”

The deal with Golden Gate is expected to close by the end of the year.

Founded in 1975, Brinker International has more than 1,800 franchises or corporate-owned restaurants in 24 countries. In its fiscal year ended June 27, 2007, it recorded $230 million in net income on $4.38 billion in revenue.

Macaroni Grill Selling for $132 Million

Monday, August 18, 2008 - 5:05 PM CDT
Macaroni Grill selling majority stake for $132 million
San Antonio Business Journal
http://www.bizjournals.com/sanantonio/stories/2008/08/18/daily10.html?b=1219032000%5e1686899

The parent company of Romano’s Macaroni Grill Italian Restaurant said Monday it is selling a majority stake in the chain to private equity firm Golden Gate Capital Inc.

There are three Macaroni Grill restaurants in the San Antonio area. Phil Romano opened the original Romano’s Macaroni Grill in Leon Springs in 1988. However, he sold the restaurant concept to Dallas-based Brinker International Inc. (NYSE: EAT) in 1989.

Brinker, which also owns the Chili’s, On the Border and Maggiano’s Little Italy restaurant chains, says San Francisco-based Golden Gate will pay $131.5 million in cash for an 80.1 percent stake in the chain.

Brinker has committed to offering corporate support services for up to a year, with an option for an extension, and will have members on the board of directors.

“Golden Gate is well-known for partnering with corporations to help grow established consumer and retail brands,” Brinker Chairman and Chief Executive Officer Doug Brooks says. “Brinker International will retain a minority position in order to both maximize the value to Brinker’s shareholders and contribute to the success of the Macaroni Grill as a standalone entity.”

The deal with Golden Gate is expected to close by the end of the year.

Founded in 1975, Brinker International has more than 1,800 franchises or corporate-owned restaurants in 24 countries. In its fiscal year ended June 27, 2007, it recorded $230 million in net income on $4.38 billion in revenue.

Francorp Video - Former Client, Auntie Anne's

http://search.smallbusinessschool.org/video.cfm?clip=1064


Key Question:
How do I grow my business?
A:
Find people who had done what you want to do and hire them.
Q: How can a small business afford all the experts and consultants who are available to offer advice on every topic imaginable?A: Most don't. Although, carefully chosen experts can save time and heartache. If you use Anne's rule of thumb, you hire experts when you arrive at a place you've never been before that seems to be confusing and perhaps fraught with potential legal problems. While Anne didn't hire a consultant to evaluate her pretzels, she did hire the well-known company, FranCorp to answer the question: Is franchising a good idea for Auntie Anne's?When the answer to that question turned out to be yes, Anne hired the firm to put the documentation in place so that Auntie Anne's would be positioned properly for long-term success.So much about building a business is a "do it yourself" project. But, when you begin to form financial partnerships, it is wise to have the contracts and supporting paperwork put in place by people who know the ropes. Even though there are dollars out up front, it is more cost-effective to pay professionals at the beginning than when a problem arises that could have been prevented. Rule: It is cheaper to have attorneys at the beginning of a relationship that at the end of it.One mentor told me, "If you are a capitalist, you will be sued." Everyone who has run a business for any amount of time knows what I am talking about. Anne was smart and is smart about all the legalities. Don't be cheap or naive when you come to a crossroads. Hire someone who has a map.
Think about it
Are you over your head when it comes to technology? Would a human resource consultant be able to improve or create an employee manual for you? Might there be an insurance expert who could save you dollars? If your team isn't working smoothly, should you hire someone to lead an in-house seminar or help you figure out who needs to be fired?
Clip from: Auntie Anne's Pretzels
Anne Beiler says that everyone is teachable and lovable.
Gap, Pennsylvania: An angel investor stood by her while bank after bank turned her down because the purpose of this business was to make money then give it away.
Meet Anne Beiler, founder f Auntie Anne's Pretzels. Anne's generous spirit is infused throughout this company and it is their secret ingredient. Anne has proven that her franchisees want to run a business built on love. While most franchise companies have to market to find new owners, Anne has to turn away hundreds who want to buy into her concept. Products topped with her love of people make Anne Beiler a leadership example to follow.In 1988 Anne Beiler turned a mistake into a new product. Today, Auntie Anne's Hand-Rolled Soft Pretzels are baked fresh in over 800 locations and are the perfect high carbohydrate, low-fat, back-to-the-basics snack so many people crave. Customers will part with over $500 million a year to enjoy this hot treat.
So now, we travel out to Gap in Pennsylvania's Amish Country; it is a simpler place. And though it may be an unlikely place to be running a fast-growing business, maybe there are lessons here for all of us in these hostile times. This business is based on love and on giving. This is the American Dream. It has come alive for all the right reasons.
Go to all the videos and key ideas...Go to the homepage of this episode...
Auntie Anne's Inc.
Anne Beiler, Founder
160-A Route 41Gap, PA 17527 717-435-1610
Visit our web site: http://www.auntieannes.com/
Office: 717-435-1610
Business Classification:Retail
Year Founded: 1988
Hire Experts
Young employee: Hot tray coming out. ANNE: To really structure what we wanted to do was something that I didn't know how to do. So we had to go outside. And first of all, my youngest brother had actually gone to business school, and so he came in and really helped departmentalize the organization, and from there, we went to Francorp, which was a company based out of Chicago, Illinois. They are a franchise consulting company. And they helped us with--they took our licensing agreement to an official franchise agreement, which was a great help, which you really need that. If you're going to franchise, you really need to have the documentation in place, and you need to have an agreement that is good for you and it's good for the customers, for the franchisee. And in this agreement, you need to make sure that you're protected, but you also need to make sure that the franchisee is protected from the franchisor. Because it's really a two-way street. And so if you understand franchising, a good way to understand it is to see it as a partnership for the rest of your life, more like a marriage.

www.francorp.com

Franchise Article, 1988

Your Money; Franchises Offer Profits and Risks
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new_york_times:http://query.nytimes.com/gst/fullpage.html?res=940DE3D91339F935A25752C0A96E948260&sec=&spon=
By LEONARD SLOANE
Published: January 16, 1988
LEAD: JAMES Goodman, executive vice president of the Morehouse School of Medicine in Atlanta, recently decided to leave his position and go into franchising. So he bought the Seattle-area rights to open franchises of Jiffy Lube International Inc., a fast oil-change and lubrication system for automobiles.
JAMES Goodman, executive vice president of the Morehouse School of Medicine in Atlanta, recently decided to leave his position and go into franchising. So he bought the Seattle-area rights to open franchises of Jiffy Lube International Inc., a fast oil-change and lubrication system for automobiles.
''I've put in a lot of effort and energy for other people,'' Mr. Goodman said. ''I'm at a stage now where I want control over my own destiny.''
Rocky Paolini bought a franchise three years ago and now has a thriving printing and copying center under the Sir Speedy name in Wakefield, Mass. Before going into business on his own, he had worked at the Monsanto Company in sales and marketing for 14 years.
''I love it,'' he said. ''You'll never see me going back to corporate life.''
Mr. Goodman and Mr. Paolini are among the hundreds of thousands of Americans who have started their own businesses through franchising. Government statistics indicate that franchises stand a better chance of success than other independently owned small businesses. Nevertheless, prospective franchisees should understand the many pitfalls - indeed, some people have lost their entire investment rather quickly. Before opening an establishment and paying $1,000 to $500,000 for the franchise, investors should carefully study the business.
''Treat this as an extremely serious business investment,'' said Stanley L. Williams, director of education at the International Franchise Association. He urged investors to examine the entire situation carefully before they put up any money.
Franchising is a method of distributing brand-name products or services under license. A franchiser provides the business system and trademark and a franchisee operates the business under the franchiser's name.
There are two major franchising arrangements. In the business format, the franchiser establishes a fully integrated, continuing relationship with the franchise owner. In a product trade-name arrangement, the supplier and dealer establish an independent sales relationship, like those found in such industries as automobiles, soft drinks and petroleum products.
The business format has been responsible for much of the franchising growth in the last three decades.
Total sales of franchising companies amounted to approximately $591 billion in 1987, up about 6 percent over the previous year and representing one-third of all retail sales in the United States. Approximately a half-million franchised establishments exist, with business-format arrangements proliferating in such industries as real estate, rental service, cleaning and maintenance and, of course, the ubiquitous fast-food restaurant.
''You're buying someone else's experience,'' said Ray Bard, an Austin, Tex., management consultant and co-author of the book ''Own Your Own Franchise.'' ''You're getting their systems, their product development, their image in the marketplace and their supportive services.''
In addition to having the opportunity to participate in a tried-and-true business model and to receive both start-up assistance and follow-up support, franchisees may obtain other benefits. These potential advantages include sharing in the good will built up by other outlets bearing the same name, obtaining location analysis, getting continuing advice and training from the franchiser and receiving counsel in organizing, leasing, merchandising and advertising.
But franchising does have its drawbacks. A franchisee must comply with the franchiser's controls, standards and procedures or risk losing a valuable franchise. Also, a franchisee must usually spend more money to go into business than would be required without the trade name.
''The relationship between franchiser and franchisee is the key element to the present and future success,'' said Andrew Kostecka, a franchise specialist for the Commerce Department. ''A franchiser can develop superior procedures and programs, but they are meaningless unless franchisees put them into operation in the marketplace.''

Francorp - Public Franchise Companies

MCD: McLovin' It
Posted By:Tom Brennan

McDonald’s is the kind of stock you can buy and then forget about, Cramer said during Thursday’s Mad Money.

Now he’s always been a proponent of tracking your holdings weekly – and the rule still applies to – but he’s convinced that this company has some great long-term prospects

-Franchising provides an extremely profitable business model, financial analysts tend to look very highly upon public organizations that have utilized franchising as an expansion vehicle.

Francorp has worked with more public franchise companies than any other franchise consulting group in the world. Francorp has over 100 different companies the firm has worked with in going public and managing their franchise expansion while public.

For more information on how Francorp can assist with franchise expansion visit www.francorp.com.

www.francorpconnect.com

Don Boroian - How to Buy and Manage a Franchise

The American Dream with a Safety Net:
An Introduction to Franchising
Fred DeLuca needed cash. At seventeen, he was ready for college, but unless he raised some
money fast, he knew he couldn’t cover his first-year expenses at Connecticut’s University of
Bridgeport. As it would turn out, DeLuca’s solution for financing his college education would
lead to one of the biggest franchising success stories of the late eighties and early nineties. But
back in 1965, all he wanted was a financial fix.
DeLuca approached a wealthy family friend for the money. He recalls hoping that Peter
Buck, a nuclear physicist, would “reach into his pocket and pull out a big stack of hundred-dollar
bills.” Instead, Buck offered something more valuable – a business proposition. Instead of a gift
or loan, he would give the youngster $1,000 to open a submarine sandwich shop. And so Pete’s
Submarines of Bridgeport was born.
After a slow start (and a name change), the partners added fifteen more sandwich shops
in the following eight years. The chain had potential for further growth, but the traditional
method of building and operating company-owned stores was proving to be slow and costly.
The choice of an alternative wasn’t hard to make. McDonald’s and Kentucky Fried Chicken,
among others, had set an excellent example by franchising, and it was in that direction that
DeLuca turned to expand his business.
More than twenty-five years after it was started as a collegiate money-making venture,
this submarine sandwich idea has truly paid off. DeLuca and Buck’s business has become the
pacesetter among sandwich chains, setting a growth standard believed to be untouched by even
mega outlet food giants such as McDonald’s or Domino’s Pizza. In a single year – 1988 –
Subway, as the franchise is now called, opened more than one thousand outlets, a feat never
previously accomplished by a single chain.
Of course, opening a sandwich shop isn’t a rocket-scientist type of proposition. All one
needs is money (which, as has been demonstrated, can be someone else’s) and desire. Even
making that shop a success isn’t a superhuman task. Combine hard work, a good product, and a
reasonably decent location, and you can be the local roast beef and salami king. But to establish
and successfully duplicate such a store a few thousand times across the country and around the
world takes more than a profitable outlet (or even a few such outlets). It takes one of two things:
(1) Nearly unlimited capital (quite literally in the billions of dollars) to finance such growth; or
(2) the proven, synergistic power of franchising.
Chapter One
Compliments of Francorp Connect, Inc. 7 www.francorpconnect.com
So if you happen to have a couple of billion dollars lying around in a family trust, or a
friendly banker whose loan checks come preprinted with nine zeros, then what follows will
likely not be of much interest to you. But if you have a desire to become part of – or simply
learn more about – franchising, the successful and growing form of business the U.S.
Department of Commerce has called “the wave of the future”, this book is the source you’ve
been looking for.
As franchising has grown in prominence and performance, it has attracted wide coverage in the
media – some positive, some negative; some aimed at potential franchisees, some at franchisors;
some purely analytical, some philosophical and esoteric. But what was missing was a
comprehensive, easy to read (and perhaps fun to read) book that tied it all together – a book that
combined practical and useful information for both franchisees and franchisors with unbiased
reporting and interpretation of the development and influence of franchising. The challenge,
then, is to fill this information gap.
This book sets out to be the only book anyone (be they franchisees, franchisors, or even
just curious consumers) needs to read about franchising. And that’s not just a boast or some
lofty goal – it is our personal mission as authors.
Perhaps it sounds too simple: anyone with any interest in franchising. But it’s true. This book
was written with the widest possible variety of readers in mind. Whether you are interested in
purchasing a franchise (that is, becoming a franchisee), developing an existing business into a
franchise (becoming a franchisor), or simply learning more about the form of business
responsible for more than one-third of all retail sales in the United States, this book will inform,
educate, and perhaps even amaze you.
Do you dream of becoming your own boss but are wary of striking out on your own?
We’ll help you assess whether you’re ready (financially and emotionally) to become a
franchisee. Are you ready to buy a franchise, but not sure which one to choose? We’ll give you
some valuable advice to help narrow which franchises are best suited to you.
Perhaps you own a small (or even not so small) business and are considering expansion.
We’ll help you answer two questions of paramount importance when it comes to considering a
franchise program: (1) Is your business franchisable? and, (2) if so, what is the best way to go
about it? The fact is times have never been better to consider expansion through franchising, for
anyone who owns or operates a successful business. There is definitely an audience of qualified
potential franchisees available. Big corporations, including many Fortune 500 companies, are
stripping away layers of middle managers with layoffs and early retirements. Add to this pool of
Why This Book?
Who Should Read This Book?
Compliments of Francorp Connect, Inc. 8 www.francorpconnect.com
talent the growing number of executives whose jobs have been “leveraged” out of existence (due
to buy outs, mergers, and other corporate reshufflings), and you have an experienced and
professional class of people ready for a new challenge. For many of these people – and others
ready for a change – franchising is the best choice.
Joe’s brother, John Mancuso, is a good example of a new breed of franchisee. He owned
and operated a small machine shop in Hartford, Connecticut, for the past half dozen years. He
also was a customer of the local Physicians Weight Loss Center in Hartford, and trimmed down
from a hefty 270 pounds to close to 210 pounds. He was thrilled with his weight loss -- so much
so that he sold his machine shop and used the proceeds to acquire the franchise location where he
had lost weight. Rather than start a new business in an area that interested him (but in which he
had no practical experience), he bought the franchise and the national reputation and source of
knowledge that went with it – a franchise that he knew was effective, because it helped him lose
weight.
John had never anticipated being involved with franchising, but at the age of forty, he too
came to marvel at the power of the concept. (But, as you’ll learn later in this book, John lost
more than just weight. That was another motivation to write this book.)
Franchising is a broad term that described a relationship between two or more parties. In
general, the purpose of this relationship is to distribute goods and/or services. The two primary
types of franchise systems in the United States are product or tradename franchising and
business-format franchising. Product or tradename franchising is franchising in its most limited
form: A manufacturer grants another party a license to sell goods produced by the manufacturer.
Principal examples of this form of franchising include sales of cars through dealerships, gasoline
through service station, and soft drinks through local bottlers.
For the purposes of this book, we will almost always be discussing the other type –
business-format franchising. We will refer to it by the simpler term franchising. Under
business-format franchising, a business owner or manager (the franchisor) allows someone to
market products or services using her name, trademark, and most importantly, her prescribed
business format – thus the name business-format franchising. (Frequently – in fact, usually – the
products sold are not provided by the franchisor.) In return for use of the name and system, the
franchisee – as that person or organization is called – pays a fee and, usually, an ongoing royalty
(in the form of a percentage of sales). Moreover, the franchisee pays all the costs of going into
business. The effect of business-format franchising is to make it less a system of distribution
than a system of proliferation or expansion.

www.francorpconnect.com

Franchise Demand

Creativity, flexibility carry franchises through tough times
National Restaurant Association SmartBrief 08/15/2008
Despite a sour economy, companies are finding ways to make their franchises grow, taking advantage of lower real estate prices and changing the way they market themselves. Even franchisors in industries that have stayed in demand, such as education and cruises, are coming up with new ideas for growth. Entrepreneur.com (08/13)

Americans Squeeze Wallets

Americans squeeze wallets to afford food, energy increases
NFIB SmartBrief 08/15/2008
Americans have lowered their standard of living to pay the inflated costs of food and energy, according to this analysis. July's consumer price index rose faster than anticipated, setting a 17-year record with prices 5.6% higher than the same month last year. Energy prices rose 29.3% and food prices increased 6%. MSNBC (08/14)

www.francorp.com

Google is King

Nielsen: Nearly 60% of Web Searches on Google
Dec 27, 2007
-By Mike ShieldsGoogle is nudging toward claiming 60 percent of all Web searches conducted in the U.S., according to the latest figures from Nielsen Online.In November, the Mountain View, Calif.-based company accounted for a dominant 57.7 percent of all searches, or over 4.2 billion searches in total. Roughly a year ago, Google’s search share fell just below the 50 percent threshold, though Nielsen says that it has recently made some changes to its reporting methodology that make true year over year comparisons unavailable at this time.Meanwhile, it would appear that longtime number-two search player Yahoo is slowly losing traction among Web users, despite revamping its product significantly in 2007. The embattled Sunnyvale, Calif.-based portal handled nearly 18 percent of searches, while in previous months its share had surpassed the 20 percent mark.Microsoft’s MSN/Windows Live Search product, which has long struggled to reach double digits is search share, accounted for 12 percent of all searches in November, found Nielsen.

Uno's Pizza

Uno Restaurant Chain Talks
With Lenders on Payment
Facing Pinch as Customers Stay Home,
Company to Defer Interest Due on Friday
By JEFFREY MCCRACKEN and JANET ADAMY
Wall Street Journal
http://online.wsj.com/article/SB121859719364035879.html?mod=djkeyword

The parent of Uno Chicago Grill, a chain of 200-plus pizzeria-themed restaurants, will skip a bond payment on Friday as it tries to negotiate more financial breathing room amid increasingly difficult times for sit-down eateries, according to two people familiar with the matter.

Uno Restaurant Holdings Corp. -- whose restaurants grew from a single Chicago landmark and are predominantly in East Coast states like New York, Pennsylvania and Massachusetts -- is one of a growing number of regional and national restaurant companies squeezed by falling sales, rising food costs and burdensome debt.


Boston Globe/Landov
Uno Chicago Grill and other casual chains are feeling a squeeze.
Now based in Boston, Uno employs more than 5,500 people at company-owned sites and thousands more at its franchised restaurants. It was acquired in a leveraged-buyout in January 2005 by the private-equity fund Centre Partners and members of management.

Uno faces a $7.5 million interest payment due Friday on its $141 million in senior secured notes. It plans to defer that payment and is in talks with six bondholders for a waiver or an amendment, say two people familiar with the talks.

Uno's decision not to make the payment reflects its tight liquidity. A default often allows lenders to impose tighter terms or higher interest rates, moves that further squeeze an already struggling company.

Uno Chief Financial Officer Louie Psallidas said his chain has 30 days before it will be in default and will "avail ourselves of that time as we try to get an appropriate balance sheet for the company."

Uno has hired investment banking firm Houlihan Lokey Howard & Zukin as its financial adviser to negotiate with bondholders.

"We are not in any imminent danger of filing for bankruptcy," Mr. Psallidas said.

Uno sales held up until late 2007, but have slid the last three quarters. Same-store sales were down 7.7 percent in the first quarter of 2008, according to Moody's Investors Service.


Other chains, such as Chevys Fresh Mex and the home-style Perkins and Marie Callender's chains are also in talks with their lenders, say several people familiar with the companies. These chains, which combined have about 1,000 sites across the country and 40,000 employees, also face difficulties. All have had earnings slow as diners cut back on eating outside their homes. At the same time, the companies are managing heavy debt loads placed on them by private-equity funds. They have many older sites and older brands, but limited funds to update menus or buildings.

During the first half of 2008, same-store sales at midpriced sit-down restaurants declined an average of 1.1%, according to Knapp-Track, which measures sales at 10,000 restaurant outlets.

In the last few months, sit-down chains such as Bennigan's, Steak and Ale, and Vicorp Restaurants Inc.'s Bakers Square and Village Inn chains have filed for liquidation or bankruptcy protection, frequently moving to shutter hundreds of sites and cut thousands of jobs.

"Those other restaurants that filed, their concepts haven't remained relevant. Ours has," said Uno's Mr. Psallidas.

Long known for deep-dish, Chicago-style pizzas, Uno moved in recent years to a more expansive menu of grilled, fried and sautéed fare, including Angus beef steaks and Bolognese pasta, and drinks such as pomegranate margaritas.

Another chain trying to negotiate more financial breathing room is the Cypress, Calif.-based Real Mex Restaurants Inc., which owns the Chevys, El Torito Grill, Acapulco Mexican restaurants and other regional chains, according to three people familiar with the talks. It is one of the largest operators of full-service Mexican restaurants in the country with about 200 restaurants and 12,700 employees in more than a dozen states.

Real Mex was acquired in August 2006 for $359 million by private-equity firm Sun Capital Partners, which has had success with other chains like Bruegger's Bagels and Garden Fresh restaurants.

Sun is negotiating with a key lender, the San Francisco hedge fund Farallon Capital, to restructure the Real Mex balance sheet and to amend its agreement so it doesn't violate covenant terms at the end of the year regarding leverage and earnings on one piece of debt. It has a $5 million coupon payment due in October on its $105 million in senior debt, according to Moody's.

Real Mex's three main chains are heavily concentrated in California, with about 70% of its restaurants there. California has been particularly hard hit by the subprime mortgage crisis. It also has a higher-than-average minimum wage, increasing labor costs for Real Mex.

The operating and liquidity situation is also difficult for Perkins & Marie Callender's Inc., the parent company of two midpriced chains that cater to families with comfort foods like pancakes and pies.

They are owned by private-equity fund Castle Harlan and are based in Memphis, Tenn. Those chains have been closing locations over the past few years.

The two chains, which have more than 600 owned or franchised restaurants in 35 states, employ more than 25,000 people, mainly in the Midwest. The chains lost a combined $21.2 million on 2007 sales of $593 million, according to its Web sites and public filings. The chain is also seeking a waiver or amendment from its lenders to avoid a covenant breach, according to two people familiar with the matter.

A spokesperson for the Perkins & Marie Callender's chains declined to comment.

Write to Jeffrey McCracken at jeff.mccracken@wsj.com and Janet Adamy at janet.adamy@wsj.com

McDonald's

MCD has Strong JulyFriday August 8, 2:24 pm ET By Jim Giaquinto
Consumers may be pulling back on their eating-out habits during this tough economy, but many have made an exception for McDonald's (NYSE: MCD - News). The fast-food staple announced that same-store sales in July advanced by 8%, which has helped shares to gain approximately 6% on Friday.
System wide sales for worldwide restaurants advanced 15.9% in the month, or 9.5% in constant currencies. U.S. same-store sales increased 6.7% as MCD focused on breakfast, chicken, beverages and advertising for the Big Mac.
MCD is a Zacks #2 Rank company with earnings estimates for this year that are up 3.9% in two months. Its sales momentum in July suggests that analysts' earnings expectations could continue to advance.

Krispy Kreme's International Expansion

In Brief
Krispy Kreme Plans
20 Stores in Malaysia
August 11, 2008; Page B7
Wall Street Journal
http://online.wsj.com/article/SB121842794897129203.html?mod=djkeyword

Krispy Kreme Doughnuts Inc. plans to develop about 20 retail stores in Malaysia, further expanding its operations overseas. The doughnut maker, based in Winston-Salem, N.C., said the shops will open over the next five years. The company is working with affiliate Berjaya Krispy Kreme Doughnuts Sdn Bhd in Malaysia. Last month, Krispy Kreme announced plans to develop about 25 franchise locations in Turkey. It operates in 14 countries. The expansion comes despite Krispy Kreme's financial struggles. The company reported its first profitable quarter in more than a year in June. The chain has faced allegations of former management misconduct, a trend toward healthier eating and bankruptcy filings by several franchisees.

Big Mac and Breakfast Increase Sales

Big Mac, Breakfast Items
Boosts McDonald's Sales
By SHARA TIBKEN
August 8, 2008 3:53 p.m.
Wall Street Journal
http://online.wsj.com/article/SB121819727618524003.html?mod=djkeyword

McDonald's Corp. reported an 8% increase in July global same-store sales as results increased across all regions, including 6.7% in the U.S. due to a focus on breakfast, chicken, beverages and the Big Mac sandwich.

McDonald's shares rose $4.07, or 6.6%, to $65.93 in Friday trading.

European same-store sales rose 7.6% due to strong results in France, the U.K. and Russia. The company said locally relevant summer offerings appealed to customers during the month.


McDonald's Corp.
Big Mac sandwich
The company's Asia-Pacific, Middle East and Africa region saw 7.2% growth, driven by extended hours and menu variety, especially in Australia and China. Latin America saw double-digit gains.

Same-store sales is a key indicator of restaurant performance because it measures growth at existing locations rather than newly opened ones.

In March, McDonald's reported same-store sales in the U.S. fell for the first time in five years, but the company has posted solid increases since then. The overall restaurant sector in the U.S. has been hurt by high gasoline and food prices, as well as by the slumping housing market and credit crisis.

Soaring commodity costs have forced some McDonald's franchises to re-evaluate pricing, including for the popular Dollar Menu offerings. But McDonald's has been benefitting from new menu items, expanded hours and the tendency of cash-strapped consumers to "trade down" from more pricey eating-out options in the U.S.

Overseas, it is benefiting from expansion and internal growth in key markets like Australia, China and Japan while getting the currency benefits of the sagging U.S. dollar.

Systemwide sales rose 16% world-wide, or 9.5% in constant currency.

Copyright © 2008 Associated Press

Jamba Juice CEO and CFO Resign

Wednesday, August 6, 2008
Jamba Juice CEO and CFO quitSan Francisco Business Times - by Steven E.F. Brown
San Francisco Business Times
http://www.bizjournals.com/sanfrancisco/stories/2008/08/04/daily30.html

Jamba Inc. CEO Paul Clayton and CFO Donald Breen quit and Chairman Steven Berrard took over as interim CEO.

The Emeryville company (NASDAQ: JMBA), the parent of Jamba Juice, didn't say why the two men quit. But Jamba has been losing money. Its accumulated deficit -- how much money it's lost since it started -- was $175.2 million as of April 22, according to its SEC filings.

Controller Karen Luey becomes interim chief financial officer.

In early July, Karen Kelley quit as senior vice president of operations at Jamba Juice Co. Two men who worked under her -- Steve Adkins and Glenn Lord -- divvied up her work and started reporting directly to CEO Clayton at that time.

Berrard has been Jamba's chairman since January 2005. he was CEO until November 2006. He was paid $100,000 in cash as a director in 2007, according to Jamba's proxy card.

Breen became CFO and Clayton became CEO in late November 2006. Breen's salary in 2007 was $282,691 and Clayton's was $514,903.

Jamba estimated its second quarter sales at $98.6 million, up 10 percent from the $89.6 million in sales it had in the second quarter a year ago. Its second quarter ended July 15 and the company won't give a full profit-and-loss report until Aug. 21.

Same store sales -- an important retail metric comparing sales only at stores open at least a year -- fell 6.8 percent in the quarter, on top of a fall of 3.3 percent a year ago. In stores owned by the company itself, not franchises, same store sales fell even more, 7.3 percent.

At the end of the quarter Jamba had 736 stores, up from 726 at the start. During the quarter it opened 21 stores, 14 of them company owned, and closed 11 stores, all company owned.

In the first quarter ended April 22, the last for which it has filed a report, Jamba lost $6.4 million on sales of $101.6 million. During that quarter it said sales at the 99 new company owned stores opened during 2007 "were lower than expected." Jamba said in SEC filings it would open fewer company owned stores than it previously planned during 2008.

In May the company said it would close 10 stores not doing well and also terminate leases for seven stores not yet built.

Jamba started selling breakfast during the first quarter, hoping to attract more business. But it noted that "a concentration of Company Stores in California" might affect its business.

Starbucks (NASDAQ: SBUX), another company that some people think has too many stores -- on Battery Street in downtown San Francisco two are directly across the road from each other -- has also hit bumps in its growth plans and said last month it would close 600 stores that weren't doing well.

Marriott Being Social

Being Social
Meet the new facebook of Marriott
By Nancy WeingartnerAs published in: Franchise Times - August 2008
Kathleen Matthews is viewing the news from a different angle. Instead of reporting the news from behind the anchor desk, she's now making the news for Marriott using new media techniques.
Cover photo by Steven E. PurcellWhen Kathleen Matthews created her Facebook page as part of her new-media campaign at Marriott International, two of the first people she invited to be her "friend" turned her down flat. But they were her children, after all - one of whom called her to complain; the other simply ignored her. Matthews' oldest child, Michael, perhaps in a pity move, did accept her offer of cyber friendship, she says, laughing.
Matthews, a former award-winning news anchor in the Washington, D.C., market and wife of "Hardball" host Chris Matthews, is settling comfortably into a life of making news, as opposed to reporting it, for the somewhat staid Marriott brand.
Her charge as executive vice president, global communications & public affairs, is multifold, which is what appealed to her when offered the job 18 months ago. In addition to handling public relations, her role was expanded to encompass politics; social responsibility, such as Marriott's green initiatives; and new media. New media, by the way, is using nontraditional channels to get a company's story out, such as the social networking site, Facebook, plus blogs and online videos viewed on sites such as You Tube.
"She's a dynamo; no one can keep up with her," says Jay Hamilton, Marriott's senior director of public relations. "By the time she walks by your door she's mentioned five things you need to write down (and do)." And she repeats this process all the way down the row of offices, her co-workers say.
Walking and talking, both at a fast clip, to have her photo shot in front of the world flags that signify Marriott's international scope, Matthews does indeed appear to be a dynamo. Still looking the part of a news anchor, Matthews was dressed in her favorite color, red. It's a hue that dominates her office décor from the chairs to the espresso maker. Red also "pops" on television and now she has one more reason to wear red, it's the signature color of her new charge, Marriott.
Matthews exudes confidence - friendly, but not chummy. A runner, she's in constant forward motion. Her desk at the time of this interview was covered in stacks of paperwork, and she joked that her boss wouldn't want her picture taken there. Her department has an abundance of flat-screen TVs turned to the news - especially MSNBC, the station that runs Chris Matthews' show. "If we want to put Marriott in the news, we have to know what the news is," she states.
A familiar spot for someone used to being pitched stories.
"She's always looking for the next big idea, how you can maximize news," says Gordon Lambourne, senior vice president of global PR. "She's intuitive of what the media's interested in."
Perhaps that's why Matthews is a nine-time Emmy winner for her news coverage in the Beltway. Reporting the local news was ideal while her children were younger. "I didn't travel, and I had a predictable schedule," she says. "(Plus) I brought home stories that made me a better mother." While other mothers may have struggled talking to their children about HIV or drunken driving, Matthews says she was able to bring up one of the stories she had just reported on to launch the subject with her teens.
For the most part, her children kept the fact that they had high-profile parents a secret from their friends and teachers. "People were surprised to find out Chris and I are married because most women (in TV) keep their (maiden) names," she says.
Being half of a celebrity couple makes it a little harder to balance work and home. Like most working women, Matthews says she was always "time-starved." "I try to let the worlds bleed into each other," she says. When her children were younger, they would come to the studio with her when need be, and "Chris took them to New Hampshire every four years to cover the presidential primary."
Ironically, the contacts she spent years amassing as a news anchor have helped her more in her position with Marriott than when she was sitting behind the anchor desk. It's also given her a different perspective on the news to offer her husband. "It's exciting to bring a new skill set home," she says.
And Marriott has benefited from having Chris Matthews, who usually commands a hefty speaking fee, talk at Marriott functions, she says.
Moving up Marriott
There's a method to introducing new-media channels to an established brand. For instance, her Facebook page is the equivalent to the old-fashioned suggestion box. Her circle of "friends,"
or contacts, can send her messages, or she can alert a group to new innovations at Marriott in real time. Gen Y associates like her Facebook page, she says, and baby boomers, "who are always trying to be relevant, love it because they always want new ideas."
One of her first coups at the hotel chain was to convince Bill Marriott, the 80-something chairman, to blog. His first reaction after learning the definition of a blog was that it would be impossible for him to do because he doesn't type, nor does he use a computer. Matthews says she convinced him to record his message on a small, digital tape recorder for someone on staff to type. A hard copy is then printed out for his edits.
Bill Marriott is one of the few top executives to have a blog, and most likely the oldest. His subject matter varies from his revelation that he does Pilates regularly, which led to the creation of an exercise studio for employees at Marriott headquarters, to praise for franchisees and their staffs who helped during the Midwest flooding earlier this summer. His blog on lessons learned as a Boy Scout had 5,000 hits, Matthews says.
The purpose of the blog is two-fold. It drives traffic to the site - a link to booking a room at a hotel property, generated $1 million in room revenue, Matthews says - but it also is a way for the personable CEO to visit all 3,000 properties without leaving town.
When he does visit his hotels, Matthews says staff will gather in the lobby and actually applaud. "He's so warmly received everywhere he goes," she adds. Which isn't hard to understand, given that Marriott likes to visit with the housekeeping staff and tour the kitchens, not just meet with management.
"Traveling with Bill is like traveling with the secretary of state - no make that the president and Bono combined," she says, laughing. It's also a full day's worth of work, since Marriott visits between 10 and 15 hotels a day on the road.
Marriott's interviews, as well as any company news, such as the grand opening of its 3,000th hotel, are posted on the Marriott page on You Tube. Footage of the grand opening of that hotel, which just happened to be in China, was fed back to headquarters within hours of the ceremony, where 3,000 trees were planted as part of Marriott's green initiative. Footage of the event was immediately edited and posted on the Web, says Lambourne. "We were able to combine new media and traditional media to get the story out," he says.
In addition to using new media for external communications, Marriott also takes advantage of ways to keep employees and franchisees in the loop. And Matthews has a chart detailing the many ways headquarters reaches out to its constituencies.
Nick Powills of No Limit Media Consulting marvels that more franchisors aren't blogging.While Marriott International may be ahead of the curve by embracing new media in so many facets, it's something all franchisors should be doing, according to PR professional Nick Powills of No Limit Media Consulting who blogs about new media.
Marriott's use of social networking is right on target, Powills says. Every time it posts a blog or adds something to its social Web pages, the company's name moves up on search engines. "You want your franchisees to find as much positive information on your brand as possible," he says. "It drives content and you can control the message." For instance, a negative posting to a blog or Web page can be deleted.
Social networking sites give consumers a way to comment on their stay at the Marriott brands - which include Ritz Carlton, Fairfield Inn, Renaissance and Residence Inn - or give their opinions on the company's green initiatives or a hotel's amenities. And in a world where we can't trust whether the TV character is drinking a Coke because the script calls for it, or because Coke paid for a product endorsement, having "real" people's input on brands is seen as invaluable.
These sites are also a way for the company to offer a special room rate, announce a new opening or alert consumers that Marriott International is getting greener by offering recycled pens.
The company actually does offer recycled pens. "We buy 47 million Bic pens as a company a year," she says. "We worked with (Bic) to develop recyclable pens." The company also has gone to toilet paper with no cardboard rolls.
"Bill (Marriott) is a great evangelist for these initiatives," Matthews states. "Social responsibility is so important for companies." Remaining competitive and able to attract a "world-class workforce," means being green. In addition, she adds, climate changes greatly influence their hotels, so it's in the company's best interest to reduce its carbon footprint and to encourage vendors to do the same.
And with the buying power of 3,000 hotels, the brand has considerable clout.
The purpose of all her creative energy is to guide Marriott so that it stays cutting edge and relative to both its employees and guests.
New media has proven a popular way to connect with customers. For instance, guests of the Courtyard brand were asked what kind of hotel they wanted, and their candid responses were captured on film and uploaded to http://www.gocourtyard.com/. "We continue to get comments" from guests, Matthews says.
On the other hand, Bill Marriott's blog gives a behemoth brand a human face. His musings are supplemented with video clips, like a recent one starring the young pop-and-lock dancer whose silhouette is featured on the Apple iTune commercials.
And while more than 100 million people have blogs - Time magazine named bloggers its person of the year in 2006 - Powills says he's surprised more franchisors aren't doing it. Or that they don't have Facebook pages, since Powill's research reveals the site had 123.9 million unique visitors in May of this year alone and is the Internet's No. 6 most visited site.
Stay tuned, because as soon as this article comes out Matthews probably will have added another dozen sites to Marriott's new media campaign, or found some other innovative way to get the brand into the news.
"She's just what we needed," says her assistant Marilyn Cole. "I don't know how she does everything. But we're having fun."

Pizza Delivery In China

Pizza Delivery Gets Big Push In China

Restaurant giant Yum Brands Inc. is betting that, as China's expanding middle class continues to demand more of the typical Western middle-class lifestyle, consumers will develop a taste for one of America's favorite convenience foods -- pizza, delivered.

Pizza delivery, ubiquitous in the U.S., is a new concept in China, where dining out has long been seen as a form of conspicuous consumption. As a result, until recently Yum had focused on positioning its Pizza Hut locations as a "five-star experience, (with a) three-star price" that would attract Chinese consumers looking for a night on the town. But as China's wealth swells -- along with its legions of harried office workers who have less and less time to cook at home -- pizza delivery is beginning to look like a faster way to expand the Pizza Hut brand, and consumers have begun to respond.

During the past year, Yum has been ramping up delivery operations in the country -- building call centers, securing a nationwide telephone number and building out new locations at an expeditious rate.

"We think we could build thousands of these," said Yum Chief Financial Officer Rick Carucci. The company has 61 delivery-only locations, up 49% from a year ago, and plans to continue at that rate for the next year.

The reason for their appeal to Yum is simple economics: Delivery-only locations, unlike fine-dining establishments, don't have to occupy prime (read expensive) real estate and can still pull in 60% to 70% of the revenue of fine-dining locations, and they are already making money. Yum's China division aw its operating profit jump 38% in the second quarter, and Pizza Hut was the division's fastest-growing brand.

To be sure, Yum faces risks in its expansion. Domino's Pizza, the dominant delivery-only brand in the U.S., has been slow to move into the Chinese market, noting the lack of a convenience culture that would demand food delivery. But that is changing: Domino's has built central delivery commissaries in Shanghai and Beijing -- a sign they will build out in the near future.

"I think for a couple of years they were skeptical that there was going to be a delivery business there," Bank of America analyst Joseph Buckley said. "Now they think there is; it could be because of what Pizza Hut is doing."

Yum, whose China group's slogan is "Rooted in China, Part of China," says it is just following the market.

When lawyer Zhan Zhao moved to Beijing in 2002, after spending his teenage years and getting his education in the U.S., he was shocked to find no food-delivery service was available.

"I was a lawyer working long hours and new to China, so a service of convenience was something that I really needed to help adjust to the other realities of modern-day China," said Mr. Zhao, 32 years old, an associate at Skadden, Arps, Slate, Meagher & Flom LLP. To fill the gap, he started a delivery service, Beijing Goodies, to deliver food, at an additional price, from Beijing restaurants. After a rocky start in May 2002, the business has taken off in recent years. Today, the company has 7,000 registered users in Beijing -- and Mr. Zhao, who now lives in Shanghai, sees food delivery as a growth market.

"Food delivery will only become more and more popular, especially for the local white collars, as the Chinese consuming public continues to work longer and longer hours," Mr. Zhao said.

Yum's recent television advertising campaign in China makes a similar case. One ad, for example, shows a young mother rushing from work to the market, cooking dinner and doing dishes, contrasted with a serene woman stretching and enjoying her afternoon. The serene woman has already ordered pizza, and a moped-mounted delivery man is on the way with it.

Papa John's, which recently opened its 100th restaurant in China, has been noticing a pickup in delivery orders, too, according to David Flanery, the company's chief financial officer and head of its international operations.

"The delivery percentage has probably doubled over the past two to three years," Mr. Flanery said. "You go through those cities and see apartment building after apartment building and you go, 'you know, those people have to eat, and more of them have enough money to go to a restaurant and have something delivered.'"

Mr. Flanery said Papa John's is more than happy to follow Yum's lead in the country, where Yum already has a massive head start. Yum was the first Western fast-food company to gain entrance to China in the 1980s, and its KFC chain is one of the most recognized Western brands in the country, with 2,264 locations as of June 30.

Mr. Carucci said he expects Yum to ramp up the building of Pizza Hut delivery locations during the next year or so, moving into more second-tier cities, with the eventual goal of China being a bigger market than the U.S.

"We're off to the races on delivery," Mr. Carucci said.

Source: Dow Jones Newswire

www.francorpconnect.com

Caribou Coffee Names New CEO

Caribou Coffee Co. Inc. has named Michael Tattersfield as its new president and CEO, the company announced Monday.
Tatterfield has 20 years of finance, operations and general management experience in the restaurant and specialty retail industries, both domestically and internationally. He most recently served as chief operating officer and executive vice president of Lululemon Athletica Inc., a yoga-inspired athletic-apparel company based in Vancouver, British Columbia. He also previous worked for Limited Brands and Yum! Brands.
“Michael Tattersfield’s industry experience in shaping and executing brand strategies will be an added benefit to Caribou Coffee in addition to his financial and operational expertise,” Brooklyn Center-based Caribou (NYSE: CBOU) Chairman Gary Graves said in a statement. “Caribou Coffee is focused on strategic growth, domestically and internationally, and Mike will guide Caribou Coffee through continued growth and expansion opportunities.”
Tattersfield replaces Roz Mallet, who has served as interim CEO since former chief executive Michael Coles left the company in November 2007.
jvomhof@bizjournals.com (612) 288-2101

Chuck E. Cheese Update

At Chuck E. Cheese, Selling Is Reheated
Parent Firm's CEO
Unloads More Stock
As Shares Move Up
By DAVID J. REYNOLDS
August 6, 2008; Page C16
Wall Street Journal
http://online.wsj.com/article/SB121797890915115009.html?mod=djkeyword

The chief executive of CEC Entertainment Inc., the parent company of the Chuck E. Cheese franchise, sold shares as they spiked three months ago. Now, he's at it again, selling as shares rise back to their former level.

Richard Frank, chairman and chief executive of CEC, last week reported the sale of 125,902 shares for $4.5 million, or $35.93 a share, after the company's second-quarter earnings release propelled the stock 17% higher.

Three months ago, after the entertainment company released its first-quarter earnings, Mr. Frank sold $13.2 million of stock for an average of $36.37 a share, regulatory filings show. Between the two earnings announcements, CEC's share price dipped as low as $26.30. CEC shares closed Tuesday at $36.75, up 4.8%, in 4 p.m. New York Stock Exchange composite trading.


Mr. Frank's sales followed the end of the company's blackout period on insider stock transactions. CEC's blackout runs from the final week of a fiscal quarter to the earnings announcement for that quarter, according to a policy statement supplied by the company.

The sales were Mr. Frank's most recent since April and May of 2007, when he sold 155,000 shares at an average price of $38.59 a share. After those sales, the stock price dipped and did not fully recover until this spring, when Mr. Frank again sold shares.

In addition to Mr. Frank's transactions about three months ago, two other officers, Chief Financial Officer Chris Morris and President Michael Magusiak, sold a combined 218,750 shares after option exercises for an average price of $37.84 a share.

"There are a variety of personal reasons why executives sell stock, including the expiration of stock options, portfolio diversification, estate planning, etc.," Mr. Morris said in an email release. "The stock I sold in May related to options that were expiring December 31, 2008. Even after recent stock sales, insiders continue to hold a substantial ownership interest in the Company."

Messrs. Magusiak and Frank could not be reached for comment.

According to a company filing, Mr. Frank has agreed to exercise options on 112,500 additional shares before the end of the year at $36.66 a share.

Lynne Collier, an analyst with KeyBanc Capital Markets, said that even as the casual-dining sector has been dragged down by diminished consumer spending, CEC's performance "has been outstanding."

With a three-pronged strategy of providing games, rides and pizza, the Irving, Texas company is proving surprisingly resistant to the economic downturn, Ms. Collier said. For two straight quarters, the company has beaten Wall Street earnings expectations.

Collier, who has a "hold" rating on the stock, said the company's increased focus on birthday parties and school fund raising helped it outperform other chain restaurants.

Comparable store sales at Chuck E. Cheese restaurants increased 3.6% and 5.7% in the first two quarters of the year, while Collier said restaurants in its peer group saw same-store sales decrease in both quarters.

Write to David J. Reynolds at david.reynolds@dowjones.com

Bennigan's Update

Monday, August 4, 2008 - 5:51 PM EDT Modified: Tuesday, August 5, 2008 - 8:39 AM
Report: Firms to take over Bennigan's franchise systemOrlando Business Journal
http://orlando.bizjournals.com/orlando/stories/2008/08/04/daily12.html

Texas Roadhouse makes offer for Bennigan's, Steak & Ale gift cards [Orlando]
Nationally, lots of stores closing, but few in New Mexico [Albuquerque]
Most local Bennigan's to remain open [Austin]
Bennigan's, Steak & Ale file bankruptcy [Jacksonville]
Bennigan's, Steak & Ale file for bankruptcy protection [Baltimore]

Two New York financial firms are taking over management of the Bennigan's Grill & Bar franchise system, according to an Aug. 1 report in Nation's Restaurant News.

Atalaya Capital Management LP and CRG Partners on July 31 told Orlando-based JRJ Restaurants Ltd., which operates two Central Florida Bennigan's restaurants, about the company's plans, JRJ Restaurants principal Tyrone Nabbie told Orlando Business Journal.

The firms said they plan to keep the franchise system's infrastructure intact in the wake of the Chapter 7 bankruptcy filing of the restaurant chain's parent company, S&A Restaurant Corp. and its affiliated companies, Nabbie said,

Representatives from Atalaya Capital Management and CRG Partners Group were unavailable for comment.

JRJ Restaurants operates a Bennigan's near Old Town in Kissimmee and another in Lake Buena Vista's Crossroads shopping center, both of which will remain open, Nabbie said.

Plano, Texas-based Metromedia Restaurant Group, owner of S&A, closed about 127 Bennigan's and 55 Steak & Ale restaurants nationwide when the bankruptcy was filed on July 29, according to the Nation's Restaurant News.

A Baton Rouge franchisee said 134 franchised Bennigan's continue operating, including 80 domestic and 54 international units, the Nation's Restaurant News report said.

Joe Friedman, the attorney representing S&A's Chapter 7 trustee Michelle Chow, could not be reached.

Wendy's Net Income Falls

Wendy's Net Income Falls 32%
Amid Sluggish Sales, Rising Costs
By ANDREW EDWARDS and KEVIN KINGSBURY
August 5, 2008 4:33 p.m.
Wall Street Journal
http://online.wsj.com/article/SB121796530449414349.html?mod=djkeyword

Wendy's International Inc.'s second-quarter net income fell 32% amid higher commodity costs and stagnant sales while merger partner Triarc Cos. reported a wider loss because of restructuring costs.

Wendy's results were weaker than expected and helped send shares down 2.4% after-hours to $23.62. Triarc, meanwhile, gained 4.2% to $6.

The nation's third largest hamburger chain, which in April agreed to a $2.4 billion buyout from the Arby's parent, reported net income of $19.9 million, or 22 cents a share, compared with $29.2 million, or 33 cents a share, a year earlier. Excluding charges, earnings from continuing operations fell to 30 cents from 41 cents.

Revenue slid 0.2% to $613.9 million.

The mean per-share earnings estimate of analysts polled by Thomson Financial was 37 cents on revenue of $629 million.

Gross margin fell to 45.3% from 46.7%.

Earlier this month, Wendy's U.S. said same-store sales, or sales in stores open more than one year, were up 0.1% for the quarter in company-operated restaurants and 1.1% in franchised restaurants.

Wendy's sales slide in recent months, in part from competition from a resurgent McDonald's Corp., has also been from failings of its own, including off-the-mark advertising campaigns. Chief Executive Kerrii Anderson said the company has faced pressure from escalating commodity costs, a weakened economy and a challenging competitive environment.

Wendy's accepted Triarc's bid in April after months of negotiations with a variety of bidders. The new company will be headed by Triarc Chief Executive Roland Smith. The combined company will have about 10,000 restaurants and pro forma annual sales of more than $12 billion. The deal is slated to close in September.

Triarc posted a net loss of $28 million, or 30 cents a share, compared with a year-earlier net loss of $6.9 million, or seven cents as share. The latest quarter included $79 million in restructuring charges.

Revenue increased 1.2% to $316.8 million as same-store sales fell 3.3%. Gross margin fell to 24.3% from 26.5%.

Mr. Smith noted that results were hurt by competitors' "agressive" discounting. "We believe continued competitor discounting at the current level is unsustainable given rising commodity costs and increasing profitability pressure on operators - we are already seeing reports of competitors re-evaluating the prices of their value menus," a reference to McDonald's weighing the future of its $1 value meal.

Write to Andrew Edwards at andrew.edwards@dowjones.com and Kevin Kingsbury at kevin.kingsbury@dowjones.com