NIPS Employs Francorp's Strategic Expertise To Build Its Brand In The Indian Market

NIPS Employs Francorp's Strategic Expertise To Build Its Brand In The Indian Market

Francorp at The Seattle Coffee Fest

Francorp to Present at the Seattle Coffee Fest on Expansion Options

Francorp, the world leader in franchise development and new franchise system launches will be at the Seattle Coffee Fest this coming weekend. The Show is the largest of its kind catering to business owners in the coffee industry.

Francorp has been asked to present and run workshops in order to help educate and provide a resource to the show's attendees on franchising a business.

Francorp works closely with most major tradeshows and business sectors around the globe. Don Boroian founded Francorp in 1976 as the only full service, in-house franchise development firm, to this day Francorp is unique in that they continue to be the only franchise consulting firm that has a full time staff and "all under one roof" approach.

Mr. Tom DuFore, Executive Vice President for Francorp Consulting, will be in attendance for the show this weekend. Below are details:

Washington State Convention & Trade Center
800 Convention Place
Seattle, WA 98101-2350

Phone: 206-694-5000
Fax: 206-694-5399
Email: info@wsctc.com
Website: www.wsctc.com

Exhibition Hours:
Friday & Saturday: 12:00pm - 5:00pm, Sunday: 12:00pm - 4:00pm

Educational Training: Exhibition Hours:
Friday & Saturday: 12:00pm - 5:00pm, Sunday: 12:00pm - 4:00pm

Educational Training:
Friday & Saturday: 8:00am - 5:00pm, Sunday: 8:00pm - 4:00pm
Friday & Saturday: 8:00am - 5:00pm, Sunday: 8:00pm - 4:00pm

For more information on franchising or how to franchise, visit the Francorp corporate site, www.francorp.com

Francorp Happenings

Francorp Upcoming Events
Francorp is the world leader in franchise development and franchise launches. As part of that, the ongoing responsibility for the firm is to provide information and up to date facts on the current franchise market and most recent happenings in the field of franchising.

Francorp has a podcast site for Francorp clients that can be accessed any time with continuously updated information and discussions on the franchise industry.

www.francorppodcast.com

With the most recent technology improvements in place this site will allow constant access to many informative video and audio recordings on franchising from Francorp's Chairman, Don Boroian and other Francorp professionals.

There you can also access Don Boroian's extensive discussion on franchising in today's economy and what strategies have worked best in the franchise field.

If you are planning on attending the International Franchise Expo in Los Angeles October 2-4, please come visit us at the Francorp Booth

Show Dates & Hours
Friday, October 2, 2009 11:00 am to 7:00 pm
Saturday, October 3, 2009 10:00 am to 5:00 pm
Sunday, October 4 , 2009 11:00 am to 4:00 pm

Location:
Los Angeles Convention Center
South Hall H & J
1201 South Figueroa Street
Los Angeles, CA 90015
PH: 213-741-1151
Fax: 213-765-4266

Booth # 821

Francorp will have a number of staff members there at the booth to discuss franchising and hold consultations. Several members of the Francorp team who are based throughout California will also be at the show.

Francorp also has an office based in Mexico City that has been established for nearly 20 years run and operated by Mr. Ramon Vinay. Mr. Vinay brings almost 35 years of franchise experience around the globe to Francorp and will be available for business owners to discuss franchise strategies and implementation in Spanish.

If you would like to arrange for a meeting with any members of the Francorp team please call 708-481-2900. Please call us for a free registration to the show before October 1, 2009.

Francorp will be conducting Franchise Marketing Training with former Francorp Client, Todd Sullivan at the Francorp world headquarters.
Francorp Marketing Training is focused on lead generation, developing a franchise brand and efficient marketing strategies for a franchise company.
October 20th & 21st
Francorp, Inc
20200 Governors Drive
Olympia Fields, IL 60461

Francorp - Franchise India Client Meetings
October 12-14th, 2009
Francorp will be inviting select franchisors to the Francorp corporate headquarters for meetings and discussions with Francorp India to break down strategies and implementation for entering the Indian Market. Francorp India will have several Francorp team members in attendance including the Francorp India CEO Gaurav Marya.
Francorp, Inc
20200 Governors Drive
Olympia Fields, IL 60461


Franchise Management Training Module
This training module is run by Mr. John Dukach, Vice President of Strategic Planning with Francorp. He discusses current management strategies for new franchise companies, system management, franchise relationship building and other processes to effectively run and manage a franchise company. Mr. Dukach brings over 30 years of franchise management to Francorp.

October 21st & 22nd, 2009
Francorp, Inc.
20200 Governors Drive
Olympia Fields, IL 60461


Franchise Expo South
January 15 - 17, 2010
Francorp will be Exhibiting at the Exposition
Miami Beach Convention Center, Hall C
1901 Convention Center Drive
Miami Beach, FL 33139

Show Dates & Hours
Friday, January 15, 2010 11:00 am to 6:00pm
Saturday, January 16, 2010 11:00 am to 6:00 pm
Sunday, January 17, 2010 11:00 am to 5:00 pm

For constant updates on Francorp, Francorp clients and global updates on the franchise industry, follow Francorp on Twitter, www.twitter.com/Francorp

Lehman Brothers Aftermath

Intelligent Investing Panel
The Upside Of Lehman
Alexandra Zendrian, 09.17.09, 06:00 PM EDT
The anniversary of Lehman's collapse has people reflecting on how the world has changed. One lesson: visit your financial advisor and diversify.

The one year anniversary of Lehman Brothers' demise has been commemorated in many different ways. Some have mourned how it led to the subsequent implosion of the stock market. Others have debated whether saving it would have changed anything. Yet a handful of investors and advisers have used Lehman's collapse as an opportunity to learn and even profit.

"I believe that when we look back on this period, years from now, we will say it had a positive impact on our economy and the American people as a whole," says Lynn Phillips-Gaines, a financial planner at Raymond James Financial ( RJF - news - people ). One lesson investors had to realize, she says, is that there is no such thing as absolute safety, and people need to find ways to make their investments as safe as possible. Phillips-Gaines also notes that many more clients are coming to her office to discuss their asset allocation and financial goals. She's going through what she calls the "financial fire drill" with them to determine exit strategies and ways to protect them from some of the risks out there before something goes wrong.

She's also noticing a lot of small businesses expanding and looking into opportunities because of the business slowdown. When talking to some of these small business, she says, "The common thread through these conversations is, 'If we hadn't slowed down, we would never have thought about these opportunities staring (us) in the face.'" Firms have been able to pick up top talent that was left on the Street by firms that needed to cut back. And companies that "saved for a rainy day" had the cash available to transform their business in this downturn as others were scrambling to stay afloat.

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Brian Hamburger, founder of Hamburger law firm, has noticed people paying a lot more attention to smaller firms, especially smaller financial firms. Previously, if you weren't one of the "big name" firms, such as Bank of America ( BAC - news - people ), Morgan Stanley ( MS - news - people ) or Goldman Sachs ( GS - news - people ), few people would send business your way. Since Lehman's fall, investors want more personalized investment advice and a relationship with the person who is providing it. Other investors are noticing that they don't need the emotional help that comes from a financial adviser, so they're purchasing a structured product and investing for themselves instead, he says.
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Because many investors had too much risk in their portfolios when the markets went south, they are now gauging what their risk tolerance should be in the future. Matt Rubin, director of investment strategy at Neuberger Berman, suggests that investors use the fixed income portion of their portfolio for stability first and getting an income second. He recommends master limited partnerships, which is a type of exchange-traded fund, for high net worth clients. These securities combine the tax benefits of a limited partnership but have more liquidity because they're traded on an exchange. Investors can also use a mutual fund-like vehicle to buy a fixed income portfolio.

Investors also need to learn to diversify their investments, says Greg Ghodsi, senior vice president at Raymond James. "Our clients sustained some losses, but they were minimized by moving assets to high-quality municipal bonds," he says. Investors can look into the following municipal bond exchange-traded funds: PowerShares Insured National Muni Bond ( PZA - news - people ) and iShares S&P National Municipal Bond Fund ( MUB - news - people ).

Another lesson learned from the financial crisis, and the Bernie Madoff Ponzi scheme a few months later, is that investors need to "trust but verify," says Mike Boyle, senior vice president of portfolio management at Advisors Asset Management. He also suggests that investors should have more than one financial adviser to be exposed to more information and have ways to gauge the information coming from them. Having more than two advisers wouldn't be cost effective, Boyle says.

Investors need to think more critically than ever, says Ray Sclafani, founder of ClientWise, an executive coaching firm. From 2003 to 2008, assets mostly rose, so people got used to seeing more money in their pockets and not having to actively monitor the market. Since the world has changed, Sclafani suggests that investors need guides more than they need financial advisers because they need someone to empower them to make the right decisions, people who know what those right decisions are for each person. He says financial advisers often have their set asset allocation and ways of managing a portfolio that aren't personalized.

Charlie Green, chief executive officer at Trusted Advisor Associates, thinks the issue of trust hasn't been learned yet. Many Wall Street financial advisers and traders conduct their business around transactions rather than relationships, he says, which leads to selfishness and more emphasis placed on the bonus received for trades than the potential cost of that trade. To change this mindset, Green would like to see business schools reevaluate encouraging competition when they teach business strategy. Competition has been elevated to a point that can be detrimental, he says. Corporations should also be re-engineered so that parts of the company can be measured and possibly broken up more easily.

There are some lessons that we haven't yet learned from the financial meltdown though. Jim Sarni, managing principal of Payden & Rygel Investment Management, is discouraged by the continued repacking of mortgage-backed securities. (See "Invest In ... Mortgage-Backed Securities?")

These loans aren't performing as well as their credit ratings would have dictated, he says. His hope for a year from now is that Standard & Poor's, Moody's ( MCO - news - people ) and other ratings agencies will do better with their corporate default rates forecasts. (See "Playing The Ratings Game.") Without correct ratings in this area, the recovery will be prolonged, Sarni says. He also hopes that we will tamper our global, insatiable demand for yields, which has put us in compromising positions.

It's a New Day

Forbes: It's officially a year ago that the markets had what is almost certainly their worst month ever, with the S&P 500 dropping like a stone, Lehman Brothers going out of business and volatility skyrocketing. Truly the stock market, at least numerically, hasn't recovered since. What are your thoughts as you reflect on this anniversary? What do you think about going forward when it comes to financial planning? What should be learned from this anniversary?

Lynn Phillips-Gaines: Now a question I can sink my teeth into. This morning I told my husband "I am soooo thankful that it is not September 2008." I only thought the early '80s and 1987 were painful. And for anyone paying attention, it was profoundly scary.

I believe that when we look back on this period, years from now, we will say it had a positive impact on our economy and the American people as a whole. The big take home for many of my clients (and the public in general) was that there truly is no such thing as absolute safety. Our system was built on people taking risk and being rewarded for taking risk. I think complacency set in to some degree. It seems the farther away we get from understanding as a people how a dollar is made, the more we abused the system. Boomer parents who never said "no" to fulfilling their kids' every whim have finally grown a spine and are giving their kids a chance to learn. People are saving. People are looking at their spending for non-essentials. People are "shopping in their own closets" so to speak. Yes, it is hurting the rebound because the consumer isn't spending as much, but we are building a better platform for the next recovery.

People are paying attention.

The small businesses I work with are saying, "Well, we are not going to make money the way we always have, so what now?" In fact, the common thread through these conversations is, "If we hadn't have slowed down, we would never have thought about these opportunities staring me in the face ... We would have been too busy to pursue them." At once, you can sense the enthusiasm and apprehension as they take this entrepreneurial risk. And it excites me to watch from the sidelines. I see them using the business principles to build the next generation business and re-tool themselves, and I can tell that they will be successful.

One firm in particular used the slow times of the last nine months going through a disciplined process of defining "who they want to be when they grow up" and then purging offerings that were no longer viable. They have rewritten their business plan and incorporated a massive change in focus. And interestingly, they were able to take their pick of highly desirable professionals from which to build their businesses going forward. And the new folks were happy to have not only a job, but also to have a say in helping to craft the business going further. I will say, the reason this firm had the luxury of doing this is because the owner had the foresight to set aside cash reserves during the good times to fund a downturn. This firm is in a cyclical business and she knew that downturns are inevitable.

And because the spigot of easy financing is not available, they are not likely to continue funding the old way of doing business that is no longer valid. This supports my thesis that in adversity and pain is when good things emerge. As much as Nietzsche's Twilight of the Idols 1888 quote has become a cliché, I believe it to be appropriate here "What does not kill me makes me stronger." A good metaphor is the medical advancements made during wartimes on the battlefields.

GregGhodsi: This recession/depression will have a generational change on society. All of the advice our parents/grandparents gave us finally makes sense. "Don't borrow more than you can afford." "Save for a rainy day." Et cetera.

Who could have imagined long-standing firms would disappear? What this has reminded us is many firms managed their capital well and should be the new leaders of our economy.

Investors have also learned to diversify your investments. Our clients have sustained some losses, but they were minimized by moving assets to high-quality municipal bonds.

Forbes: Let's be more specific. Which are the firms that you believe managed their capital well, and should be the new leaders of the economy? And which firms are simply being propped up by the government?

Phillips-Gaines: In my practice, I don't actually make these calls myself, so I am not able to make specific names for the new leaders of the economy.

As far as the changes we have made in our financial planning, it has been as Greg mentioned, a return to those mundane things which may not have been so important in the past. We are revisiting each client's investment policy statement. We are testing time horizons and cash reserves amounts. We are looking at the reality of where people stand as far as their retirement dates and if they need to work longer. We also were making sure we were tax-harvesting for losses going forward.

And we are waiting to see what happens with health care and taxes going forward. We are also being very careful with cash in anticipation of higher interest rates farther down the road. And cash flow is king now. I never have been a big user of guaranteed withdrawal benefits from annuities, but I can tell you they are/will play a role going forward.

One thing that has changed, we don't have trouble getting our clients to come in and allow us to review their overall financial plan. In good times, they don't feel the need, and it can be frustrating, because it is during those times that you must do the financial fire drill, making sure you have all your contingencies covered, not after the fact.

Ghodsi: Let's compare this to an individuals' portfolio. It is OK to buy single-digit stocks but employ some risk management; don't overweight if the trade goes bad, don't use more leverage than you can afford. The banks (old leaders) forgot these simple diversification rules in the name of growth. The banks that followed these rules should be the leaders as we move forward. In my opinion, investors will reward the good stewards of shareholders' money.

Small Business Loan Project

Marquette’s small business loan fund projection upbeat
by Mark Anderson Staff Writer

Tom Jenkins is CEO of Marquette Capital Partners, which is opening its second fund aimed at providing loans to small- and medium-sized businesses (Photo: Paula Keller)
Tom Jenkins is CEO of Marquette Capital Partners, which is opening its second fund aimed at providing loans to small- and medium-sized businesses (Photo: Paula Keller)
More: Marquette Capital Partners: local portfolio
Here’s one of those green-shoots stories possibly indicating that the capital markets and their customers are coming back – albeit very slowly, and with the continuing help of the federal government.

Marquette Capital Partners’ CEO Tom Jenkins says his group expects to raise $50 million to $100 million by second quarter 2010 for its second fund aimed at providing loans to small- to mid-sized businesses. And the Marquette Capital Fund II will bring even more powder than that to the market – it’s organized as a Small Business Investment Company (SBIC), enabling it to borrow low-cost money through the U.S. Small Business Administration. That should boost its lending pool as much as three times higher.

Jenkins hopes to close the first deal for that new fund by year end, and although the volume of deals coming across his desk is still meager, he says activity is growing in a niche that’s been one of Marquette’s specialties: closely held, often family-owned companies looking to grow in a bear market.

“There are still healthy companies that need capital for positive reasons,” Jenkins said. “They’re seeing weak competitors that they’d like to buy.” In fact, the majority of activity in Marquette’s initial $80 million SBIC fund, launched in 2004, is focused on acquisitions now.

“We’ve spent a lot of time on revenue generation, and earnings are starting to pick up at those companies (Marquette holds 21 companies in its portfolio). Now, we’re looking hard at acquisitions that make sense.”

Those buys will be financed with the initial fund’s final 15 percent, a cache that Marquette reserved for add-on acquisitions.

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That demand – and the company’s time-tested model – is driving interest in its second fund, too, Jenkins said. He expects almost 80 percent of Marquette II’s dollars to come from investors in the first fund – a group of about 20 wealthy families and a dozen financial institutions, mostly from the upper Midwest, who contributed about 65 percent of Marquette I. Marquette Financial Group, the holding company owned by the Carl Pohlad family and Marquette’s parent, invested the remaining 35 percent.

Performance is a key reason those investors are coming back. Marquette predicted returns of 18-20 percent on a five-year investment model, and in the three exits they’ve negotiated so far “we’ve exceeded those goals on each sale,” Jenkins said.

The group also created a portfolio of companies that’s been resilient through the recession’s buffeting.

“We’ve done some restructuring, but our original capital structures are holding up pretty well,” with no bankruptcies or losses so far, he said.

The fund’s managers deserve credit for that record, according to Holly Huels, senior vice president with Capital for Business, a St. Louis-based investment fund. Huels’ firm was an investor in Marquette I and an investing partner in two of Marquette’s portfolio projects, and she said their success is the result of old-fashioned investment virtues.

“They’re very disciplined in their evaluation of companies and their due diligence, but they also stick with the company. A lot of people put capital in and move on to the next investment. Marquette keeps paying attention, working with management, and that’s helped them and their investors.”

Timing provides another advantage for Marquette and the rest of the SBIC industry right now, said Dileep Rao, a lecturer at the Carlson School of Management and a veteran venture capital investor and adviser.

“The debacle of the last year [in the capital markets and the economy] created an opportunity for SBICs,” Rao said. “Banks that were generous in their lending criteria in the past are very much more conservative now,” forcing deal sponsors to find new sources to fill the new financing gaps.

With pension funds still cautious and equity investors having a hard time putting a reliable value on small companies, ventures like Marquette get more attention, Rao said: “SBIC’s are a source of funding that’s available, and as a result, they’re seeing more and more of the available deals.”

That market demand, as well as some easing in the licensing process, is swelling the ranks of SBICs, according to Brett Palmer, a spokesman for the National Association of Small Business Investment Companies (NASBIC) in Washington, D.C. SBIC applications had dropped to just six during 2008 – a historic low – but license approvals are already up to 11 in 2009, and an additional 25 are in the pipeline for 2010.

But new applicants still face close to a year-long licensing process, said Huels, this year’s NASBIC chair. That leaves in place a significant barrier to entry for new companies, and benefits already-licensed SBICs such as Marquette.

Jenkins’ team, like most currently licensed SBICs, delivers much of its capital in the form of subordinated debt, either to closely held companies that are expanding, or to help pay for takeovers. It often structures some equity investment into those deals in the form or warrants or direct stock investments, and it also shops for takeover partnerships where it can play a larger equity role.

But Jenkins said Marquette’s penchant for financing growing, closely held companies will probably dominate its new portfolio for awhile.

That’s in part because strong, closely held businesses are going to find good acquisition opportunities in this market. Many of those companies will feel edgy about teaming up with conventional private equity investors, though, Jenkins said.

“Private equity funds usually want to take a great deal of control, so most closely held businesses don’t want to talk to them,” he said. But Jenkins’ team – many of them bankers who’ve worked together in Pohlad-owned businesses for 20 years or more – can make deals that keep borrowers happy and the investment group in a strong fiduciary position.

“We can be the perfect solution. We’ve all learned how to structure securities in a way that doesn’t threaten [management’s] control.”

Marquette II enjoys a couple more benefits, thanks to rule changes enacted as part of the federal stimulus legislation passed in February.

SBICs are now able to invest greater sums in single investments, and they’re also able to borrow greater amounts from the SBA. That capability will probably double Marquette’s average investment in companies from $4 million to $8 million, giving it the ability to provide more comprehensive financing for its clients right through to Marquette’s exit.

The larger, more efficient fund also means Marquette’s staff roster will grow. Jenkins intends to open an office in Los Angeles this year, joining its Minneapolis headquarters and an office in Chicago. And he’ll add employees, too – growing from seven to 12 people.

And that gives them one more distinction: they’re one of the rare financial services companies that’s hiring.

Small Business Optimism

Small Business Optimism Grows, but Entrepreneurs Say Worst of Economic Woes Not over Yet, According to the American Express OPEN Small Business Monitor
Thu Sep 17, 2009 12:05pm EDT

Hiring plans hit all-time survey low, dropping below fall 2002 level
NEW YORK--(Business Wire)--
More than half (55%) of entrepreneurs have an optimistic outlook on near-term
business prospects, up from 45% in March 2009, according to the American Express
OPEN Small Business Monitor, a semi-annual survey of business owners. One
quarter (26%) report expanding opportunities for their business, up from 15%
from a year ago, but six in ten (63%) do not think the worst of the U.S.
economic woes are over, and nearly one in six (17%) say they risk going out of
business in the next six months because of the economy.

"There appears to be a dichotomy where many small businesses are seeing signs of
improvement while other firms are still struggling to make payroll," said Susan
Sobbott, president American Express OPEN. "For the first time since 2007, the
majority of small businesses are optimistic about the near-term future, in part
because of less competition, however some of the less healthy firms are dipping
into cash reserves and personal assets to stem the tide of declining sales."

Among those businesses reporting growth opportunities for their firms, 44% say
these opportunities come as a result of less competition. The ability to
renegotiate equipment leases and supply contracts (13%) and lower real estate
costs (12%) also contributed to these firms` growth mindset. Overall, when asked
for the primary way they address cash flow issues, 32% of business owners said
they use personal or private funds, up 9 percentage points from March. More than
a third (35%) say the recession has caused them to tap personal assets, on-par
with the March reading (37%).

Although small business optimism is on the upswing after hitting its all-time
low a year ago, the American Express OPEN Small Business Monitor shows that
business are not shifting to hiring mode. This fall, just under one quarter have
plans to hire (23% vs. 28% this spring), which is the lowest reading in the
history of the Monitor (falling below the fall 2002 recession level of 26%), and
plans for capital investments equal the record setting low from Spring 2009
(42%).

With hiring and capital investment plans on hold for most, business owners are
taking a conservative, back-to-basics approach to managing their firms:

* Concentrating on current customers. Forty-one percent of small business owners
say their top priority over the next six months is maintaining current sources
of revenue. By comparison, only one quarter (26%) say they are focused on
growing their business, which is the lowest number for growth in Monitor
history.
* Avoiding risk. Half (49%) say they are not willing to take on financial risk
to grow their business, an all-time high for the Monitor.
* Keeping employees happy. In general, deteriorating employee morale has
plateaued. Only twelve percent say employee morale has worsened over the last
six months (down from 25% for the preceding six-month period.) Three-quarters
say morale has stayed the same, and nine percent say it has improved. In
addition, approximately one in three (28%) business owners see offering
financial incentives such as bonuses and paid time off as a way to increase
employee morale, and twenty-three percent see more regular communication about
the business as the key to improving morale.

In addition, business owners continue to do everything they can to protect their
employees. For example, thirty-five percent of small business owners have tapped
personal assets as a result of the recession, twenty-seven percent have stopped
taking a salary and seventeen percent are working a second job, comparable to
six months ago. At the same time, fewer business owners are laying people off
(15%, down from 23% in the spring) or cutting benefits (8%, versus 16% this
spring).

Even as hiring plans are not in the cards for most business owners, the nearly
one quarter planning to hire are upbeat. These business owners are more willing
to think the economy creates new opportunities for their business (36% vs. 31%
overall) and seek out alternative tactics to manage their business. In addition,
more than three quarters (78%, compared to 65% overall) of those hiring will use
online marketing techniques to boost business and nearly half (46%, vs. 39%
overall) will negotiate flexible payment methods with their suppliers/vendors.
On average, entrepreneurs with hiring plans work about one-half hour longer per
day than business owners overall (more than 11 hours 45 minutes vs. 11 hours 15
minutes).

Regardless of hiring plans, one in ten business owners (11%) say they have
recently hired someone who was laid off from another company because of the
recession.

Economy takes toll on entrepreneurs

As business owners work to navigate their firms through the current economic
climate, they are plagued by cash flow concerns and the overall stress a
challenging economy creates. Nearly seven in ten entrepreneurs (68%) are
"stressed out" by the economy and three in ten (31%) say that the current
economy has caused them to question their decision to become an entrepreneur.

The number of entrepreneurs experiencing cash flow issues this fall (60%) is up
slightly over both the previous fall (55%) and this spring (57%). The biggest
cash flow worry for business owners is the ability to pay bills on time (26%).
When cash flow concerns arise, business owners are most likely to dip into their
own pockets: 32% of business owners will use personal or private funds, and one
in four (25%) will put off purchases. Others will use credit or charge cards
(13%), obtain and use a line of credit (12%), lease rather than purchase
business equipment (4%), or get a short-term loan in order to improve cash flow
(3%).

Looking beyond the basic issue of cash flow, nearly half of entrepreneurs (45%)
are looking to access capital from external sources in order to run their
businesses. One out of five business owners (19%) say they are experiencing
difficulty accessing capital. To secure the funds they need, business owners are
tapping a variety of sources, including using a bank loan (14%), using business
or personal credit cards (each 13%), tapping personal savings (10%), borrowing
from a friend or family member (3%), and private equity/venture capital or home
equity (each 2%).

Outlook varies by industry, age, gender, and region

Examining business owners by generation, industry sector, region and gender
provides further perspective on the economy. The American Express Small Business
OPEN Monitor studies three key industry sectors: retail, manufacturing and
services as well as the three generational age groups: Generation Y (18-28),
Generation X (29-44) and Baby Boomers (45-63), entrepreneurs by gender and by
geographic region.

As the holiday shopping season approaches, businesses in the retail sector are
the least optimistic group of business owners across these industries. This
fall, more than half of services businesses (58%, up from 53% last fall)
maintain a positive outlook, versus just half of manufacturers (51%, on par with
52% in fall 2008) and just under half of retailers (47% on par with 48% last
fall). The effect of the economy can be seen to have varying effects across
industries:

* Retailers are more likely to have hiring plans, due to the upcoming holiday
season, (27%, on par with 28% last fall) when compared to other industry sectors
(22% of manufacturers down from 30% last fall and 17% of services businesses
down substantially from 44% last fall)
* Services businesses are more concerned with cash flow issues (63% vs. 52% last
fall) versus other industries (60% of retailers up from 56% last fall, and 61%
of manufacturers up significantly from 47% last fall)
* The services sector is more likely than other industry sectors to have capital
investment plans (39% down from 45% last fall) compared to 36% of manufacturers
down from 59% last fall and 34% of retailers down from 37% last fall
* The manufacturing sector is more likely to say that the worst of US economic
woes are not over compared to other industry sectors (68%, vs. 64% of retailers
and 56% of services
* Manufacturers and retailers are the most likely to be willing to take a
financial risk (each 55%) when compared to services businesses (40%)

Gen Y geared for growth, Gen X most "stressed out" and Boomers are cash strapped

Generally speaking, the experience of older and more seasoned entrepreneurs puts
them in a better position than younger entrepreneurs to manage through
downturns. According to the American Express OPEN Small Business Monitor,
however, the tables have turned, and it`s younger business owners who are geared
for growth.

The survey found that Gen Y is the most optimistic group of entrepreneurs when
compared to other age groups and to the overall sample of business owners. More
than three-quarters (80%) of these entrepreneurs have a significantly more
positive outlook on business prospects versus Gen X and business owners overall
(each 55%), and Baby Boomers (52%).

The optimism of Gen Y entrepreneurs extends across a number of areas:

* They`re most likely to hire (36%, vs. 25% of Gen X and 20% of Boomers )
* They`re most likely to have capital investment plans (58%, vs. 41% of Gen X
and 39% of Boomers)
* They`re most willing to take a financial risk (67%, vs. 52% of Gen X and 47%
of Boomers)
* They`re least likely to have cash flow issues (53% versus 59% for Gen X and
64% of Baby Boomers)
* They`re least stressed out by the economy (57% versus 72% of Gen X`ers and 71%
of Boomers)
* They`re most likely to implement employee-friendly policies to battle the
recession. Gen Y will allow employees to maintain a flexible schedule (44%),
Baby Boomers will institute a hiring freeze (41%) and Gen X entrepreneurs will
institute a salary freeze (39%)

Women more upbeat than their male counterparts

No less revealing than examining the mindset of entrepreneurs by age, gender
also plays a role in shaping the outlook of a business owner.

* Women are more likely to have a positive outlook on business prospects
considering the economic climate (60%, vs. 50% of men)
* Women are more likely to have cash flow concerns (62%, vs. 57% of men)
* Women are also more likely to have difficulty accessing the capital they need
to run their business (26%, vs. 16% of men)
* Men are more willing to take financial risks (47%, vs. 40% of women)
* One third of men say the current economy creates new opportunities for
business (34%, vs. 29% of women)

Businesses in the Northeast struggling to stay afloat; West is most optimistic
Along withage, gender and industry sectors, geography plays a significant role
in business owners` outlook on business prospects and the economy:

* The west is most optimistic (60%, vs. 54% in north central states, 53% in the
northeast and 52% in the south); businesses in the northeast are most at risk of
going out of business (24%, vs. 19% in north central states, 17% in the west and
13% in the south)
* The south is most willing to hire (31%, vs. 22% in the west, 17% in the
northeast and 15% in north central states)
* The south is also most likely to take on a financial risk (55%, vs. 50% in
north central states, 44% in the west and 38% in the northeast)
* The north central states are most likely to make capital investments (48%, vs.
43% in the west, 41% in the south and 36% in the northeast)
* The northeast is most likely to have cash flow issues (69%, vs. 60% in the
south, 58% in the west and 55% in north central states)
* The northeast is also most likely to question their decision to become an
entrepreneur (39%, vs. 31% in the south, 30% in the west and 25% in north
central states)

Additional survey results are available by contacting American Express OPEN.
Fact sheets on regional data, women entrepreneurs, by generation and key
business sectors are available on request.

Survey Methodology

American Express OPEN Small Business Monitor, released each spring and fall, is
based on a nationally representative sample of 763 small business
owners/managers of companies with fewer than 100 employees. The anonymous survey
was conducted via telephone by Echo Research from August 11- August 25, 2009.
The poll has a margin of error of +/- 3.6%.

About American Express OPEN®

American Express OPEN is dedicated exclusively to the success of small business
owners and their companies. OPEN supports business owners with exceptional
service and tailored products and services that deliver purchasing power,
flexibility, control and rewards to help customers run their business.
Specifically, business customers can leverage an enhanced set of products,
tools, services and savings, including charge and credit cards, convenient
access to working capital, robust online account management capabilities and
savings on business services from an expanded lineup of partners. To obtain more
information about OPEN, visit OPEN.com, or call 1-800-NOW-OPEN to apply for a
card. Terms and conditions apply.

American Express Company www.americanexpress.com is a leading global payments,
network and travel company founded in 1850.





M Booth & Associates
Matt Hantz/Alex Della Rocca
212-481-7000
Matth@mbooth.com
Alexd@mbooth.com
or
American Express OPEN
Rosa Alfonso
212-640-1712
Rosa.M.Alfonso@aexp.com

SBA Administrator Karen Mills

Thursday, September 17, 2009, 2:32pm MDT | Modified: Friday, September 18, 2009, 12:28am
DBJ Q&A with SBA Administrator Karen Mills
Denver Business Journal - by Bruce Goldberg
The Denver Business Journal spoke with Karen Mills, the 23rd administrator U.S. Small Business Administration, prior to her keynote speech Thursday at the U.S. Hispanic Chamber of Commerce Convention, taking place this week at the Colorado Convention Center.

Mills took office April 6, at a time when the American Recovery and Reinvestment Act, the federal stimulus program, gave the SBA $730 million to help promote lending to small business.

As of Sept. 11, the SBA had started programs for most of that $730 million. The SBA approved $7.5 billion in loans since Feb. 17, and the agency says loan dollar volume has jumped 60 percent in the 7(a) and 504 programs under the stimulus.

Mills was a co-founder and managing director of Solera Capital. Most recently, she was president of the MMP Group, which invested in companies in the consumer products, food, distribution, textile and industrial components sectors.

She also has consulted in the United States and Europe for McKinsey and Co., a management consulting firm, and product management for General Foods.

In 2007, Maine Gov. John Baldacci appointed her chair of the state’s Council on Competitiveness and the Economy. She also served on the Governor’s Council for the Redevelopment of the Brunswick Naval Air Station.

Q: You took over SBA during very tough times. Is there more of a sense of urgency to act?

A: Yes. ... The sense of urgency is, the No. 1 priority is to implement the recovery act, and get the money into the hands of the small businesses. Because they were just frozen, and the banks were frozen, and they could not survive without some kind of liquidity. We knew we had the right formula, we saw this go back up, we got it out to our network, our field operations. We have 1,000 banks that have come back, that are lending now that weren’t lending before. Half of them had not made a loan going back to 2007. So there are 1,000 additional banks, more points of access.

Q: Still, a lot of business owners say they can’t get loans.

A: We’re seeing that small businesses are beginning to get back in the market for credit, and banks here in Colorado are beginning to make those loans. We still have a ways to go. And this is why it’s very important we stay lending, because with our guarantees, banks can sell those loans in the secondary market. The other thing that happened that we were able to fix is that the secondary market for SBA loans also died, froze, in October [2008]. Now, it’s back functioning. Now, a bank can make a loan, sell the loan on the secondary market at a pretty good premium — premiums are back — take the money and make the next loan.

So things are easing.

Q: What areas of the SBA do you most want to improve?

A: The first priority was to implement the recovery act. The second priority was to reinvigorate the SBA. We picked two particular areas. One is to improve our information technology, and the other is to invest in people with more training. We’re very excited about that. ... Small business is vital to our recovery. If small biz doesn’t get back on their feet, we’re not going to come out of this recession, and in the future, if we’re going to be competitive in this country, it’s going to be the small, innovative companies that are growing. So everyone has realized, we’re really at the heart of the economy.

Q: What has President Obama said to you about this?

A: We have a president who really believes in small business, who understands that small business is the path to middle-class prosperity, and for women-owned companies, minority-owned and veteran-owned. When you have that kind of commitment from the top, and have sort of a shared economic view that these are vital forces ... When I interviewed with him, he made it clear how important it is that small business has access to the tools it needs.

Q: What is the top concern of small business owners?

A: Surveys are pretty clear about it: The No. 1 concern of small business is access to affordable health care. Right now, small businesses are paying 18 percent more than large businesses for the same health care — when they can find it. Only 50 percent of small businesses with between three and nine people provide health insurance to their employees. This is untenable. ... I think the atmosphere is getting much better [for health care reform], as people see this can’t wait.

Q: Are you traveling a lot for the job?

A: I travel every week. I’m a believer that you have to be in the field. And we have SCORE partners — retired executives that we partner with — and 900 small business development centers around the nation.

Zoom Room Dog Agility Centers

The Zoom Room Launches the Nation's First Dog Agility Franchise Opportunity

Los Angeles, CA (PRWEB) September 2, 2009 - The Zoom Room, recently featured on Animal Planet, is now offering the only brick-and-mortar dog training franchise in America, as well as the only dog agility franchise opportunity in the world. Dog agility is the fastest-growing dog sport in the U.S., according to the American Kennel Club. It was just a matter of time before someone figured out a way to develop this popular pastime into a full-blown pet business. A matter of time and the right person. That person turns out to be Los Angeles native Jaime Van Wye, who as founder and owner of the Zoom Room Dog Agility Training Center and Canine Social Club, this week announced their nationwide dog franchise opportunity.

The Zoom Room, conceived as a franchise from its inception, was created to be the ideal dog business by Van Wye, the nation's leading pet business consultant and the Dog Daycare Chair of the Pet Care Services Association. An unrivaled expert in helping entrepreneurs start a dog business, Van Wye designed the Zoom Room as a streamlined, fun-filled business that incorporates everything great about working with dogs.

In 2001, Van Wye opened Rover Kennels, which soon became the go-to boarding facility in L.A., frequented by the dogs of celebrities like Tom Cruise, Kelly Clarkson, and Tyra Banks. Van Wye grew the business from two employees to 25 in under three years. The business became a tremendous success, grossing over $750,000 in the first year alone.

But in addition to Rover's success, it was also "a phenomenal learning experience," says Van Wye, who quickly learned the pitfalls of pet services: demanding dog owners, unreliable employees, and enormous liability issues, not to mention an often prohibitive start-up cost.

In 2007 Van Wye sold Rover to develop the Zoom Room, a dog franchise that eliminates all aspects of boarding, thus removing liability issues. By subtracting the need for employees, a Zoom Room is run "by a single, passionate proprietor, someone who combines a love for dogs with savvy business sense."

"The Zoom Room," says Van Wye is "not a drop-off training facility; this sets us apart from competitors. We train owners to train their dogs, and to more deeply understand, communicate and bond with their pets." A tired dog is a happy dog, and Van Wye is committed to her belief that "a well-trained dog is an even happier dog - not to mention one with much happier owners. In our experience, placing an emphasis on agility training is an extremely effective means to reach this goal."

Dog agility, practiced recreationally, is the perfect bonding experience for an owner and dog. The key to dog agility is teamwork and communication - core components of a great relationship with one's dog. Integral to the Zoom Room's brand identity, agility training appeals to active lifestyle dog owners. Although they offer dog training classes like puppy training, dog obedience, tricks training, therapy dog training and even Pup-Lates™ the gym-like atmosphere dominates. Even their sporty retail section furthers the impression of an upscale human fitness club.

As a Canine Social Club featuring a Hound Lounge and Doggy Disco™, the Zoom Room can host a dog birthday party, Bark Mitzvah, or local dog club in their indoor dog park.

As a dog franchise, the Zoom Room is a true pioneer. Not only is it the first dog agility franchise; it is the only brick-and-mortar dog training franchise opportunity in the U.S. Absolutely no prior dog training experience is required.

Please visit the Zoom Room Dog Agility Training Center for more information on the availabiliy of their pet franchise, or call 877-ZOOM-ROOM.

Learn More about the Zoom Room Franchise Opportunity.

About the Zoom Room:

The Zoom Room Dog Agility Training Center was established in 2007 by Jaime Van Wye, a graduate of U.C. Berkeley with a degree in philosophy, who has trained dogs in search and rescue, bomb and drug detection, criminal apprehension and tracking. She is a Certified Master Dog Trainer and a Professional Level Member of the International Association of Canine Professionals. Van Wye speaks regularly for the Pet Care Services Association, of which she serves as the National Dog Daycare Chair. She is the author of the satirical self-help book, How to Have an Ill-Behaved Dog (Knock Knock), as well as a regular columnist for Pet Care Services Magazine and Dog's Life Magazine.

Contact:

Mark Van Wye
Zoom Room Dog Agility Training Center
310-382-4148

Don Boroian - Francorp

Francorp has worked with 112 of the most recent Franchise 500 companies. This is important from the perspective that Francorp as a consulting firm has done work with these franchise systems, many of which Francorp developed from the ground up. Francorp is renowned as the world leader in franchise development and new franchise launches. The firm continues to develop successful franchise systems today after 34 years of franchise consulting work. Look over the Francorp corporate site for more information on the firm and the clients Francorp has developed.

www.Francorp.com

Should I Franchise?

Should I Franchise?
Whether you have a totally new concept or an established business in need of faster growth that is lacking the capital, time and people to expand the question is, “Should I franchise?”
Today more Businesses and greater variety of businesses are implementing franchising to distribute their products and services. Virtually any business can be expanded through franchising. Franchising a business is often the only viable source of capital available for expansion especially in today’s tight credit markets. In most instances, the cost of franchising is often a smaller investment that the cost of establishing just one new location.

After paying the initial cost of developing your franchise program, the remaining cost of expansion along with most of the business risk is assumed by the franchisees. Because the franchisee pays an upfront franchisee fee the franchisor is often able to recoup the total cost of franchise program development rather quickly while establishing a monthly revenue stream from royalties paid by the franchisees.

Franchising can provide the capital for rapid growth when your business doesn’t have the capital, the people, or even the time to establish a company owned growth program. Franchising solves the problems of slow growth, the problems of finding outside capital and the problems of finding the right employees associated with company owned units. Franchising a business is the solution for the problems of money, time and people.

Money

Franchising transfers almost the entire cost of expansion to the franchisees. Franchisees build the building or pay the rent, buy the inventory, pay the employees, do the marketing and provide the working capital until sales make the business profitable. In reality, the growth of a franchise system is limited only by the number of people willing to buy the franchise and the number of locations that can be sold.

Time

If you’re anxious to move quickly before the competition catches on with a hot new concept franchising provides solution. Franchising is the one growth system that allows businesses to expand exponentially. A franchise can grow rapidly simply by selling individual units. Some franchises can grow even faster by selling multiple units or territories to sub franchises. Either way, it is almost always faster to open franchises than company-owned units.

People
Franchisees make excellent employees and managers. They have a vested interested in making the business successful. They own it. A franchisor not only gets a dedicated manager they are relieved from the daily problems associated with hiring, firing and managing employees.

In summary, if you are looking to expand your business and lack capital, time or people, franchising is a viable solution to all three problems. If this scenario applies to you and your business the answer to the question, “Should I franchise?” is definitely yes.

Francorp To Exhibit at the Atlanta Franchise Exposition

Francorp, the worlds oldest and most experienced franchise consulting and development firm will be exhibiting at the Atlanta Franchise and Financing Exposition on May 2nd and 3rd at the Cobb Galleria Center in Atlanta, GA.

Show Dates & Hours
Saturday, May 2, 2009
11:00 am to 5:00 pm
Sunday, May 3, 2009
11:00 am to 5:00 pm
Location: Cobb Galleria Centre
Two Galleria Pkwy Atlanta, GA 30339
(770) 953-4099
www.cobbgalleria.com
Hall D
Booth # 215

Francorp has been developing successful franchise organizations for over 33 years and has a client list of over 2,000 franchise systems. Francorp is heavily involved with franchise exhibitions around the world including India, the Middle East and Latin America. Atlanta is a wonderful franchise market place and the Atlanta Franchise and Finance Exposition should be a great show.

Francorp has five clients exhibiting at the Atlanta show also including European Wax Centers, Monster Mini Golf, Patrice and Associates, Omega Learning Centers and Froots Fresh Smoothies. All of these companies are exciting brands that have continued to grow and work with new franchisees over the past year. European Wax Centers now has almost 100 locations in just under two years of franchising, Froots continues to set the trend for the smoothie industry with almost 100 locations as well and Monster Mini Golf has almost 30 locations in only a couple of years in the franchise business.

Froots
www.froots.com
Omega Learning Center
www.omegalearningcenter.com
Patrice And Associates
www.patriceandassociates.com
Monster Mini Golf
www.monsterminigolf.com
European Wax Centers
www.waxcenter.com

Here is a great excerpt from the Atlanta show's site that explains the value and opportunity that the show brings to its attendees.
http://www.localfranchiseshow.com/atlanta/indexatt.cfm

The Franchise and Financing Expo is the perfect event for exploring and investing in opportunities that put you in business for yourself – but not by yourself. Because when you purchase a franchise, you're purchasing a proven business concept designed to help ensure your financial success. The Atlanta Franchise & Financing Expo will give you the opportunity to meet face-to-face with representatives from many of the top franchise concepts, at every investment level – looking to expand throughout Atlanta. All in one place, and at one time, you'll be able to learn about franchises in virtually every industry. Sample products. Attend educational conference tracks. And get all the information you need to find the franchise that matches you skills, interests and budget. Lenders will be on hand to answer questions about financing your venture, or you can start the financial qualification process now when you pre-register for the event. For More Information request to be contacted by the Lender(s) of your choice after Pre-Registering. If you want more information or have questions before you arrive at the Atlanta Franchise & Financing Expo please contact Rick Brunsman.

Attend These Informative Conference Tracks The A to Z's of Buying a Franchise How to Franchise Your Business Financing Your Franchise Opportunities in Franchising for Minorities & Women

For more information on Francorp please visit the corporate site, www.francorp.com

LPCW Offerring Franchises!

A Franchise that Celebrates Children and the Arts!

Filling the Gap
Early exposure to dance and theatre can have lasting benefits, including acquiring social and physical skills that will help children throughout their lives. Yet, dance professional Daune Pitman noticed two disturbing trends in dance classes for young children: either the little ones were being taught strict ballet, which was beyond their physical capabilities, or the classes were treated as playtime.
Seeking to establish a meaningful program, Daune developed Little People’s Creative Workshop (LPCW). LPCW classes are age-appropriate and taught by trained professionals. They are largely held in daycare centers and preschools, which puts them within reach of children who may not otherwise be able to take them.
Established in 1991, Little People’s Creative Workshop is now the largest organization teaching dance to children in the U.S. We’re augmenting our steady growth with expansion, via franchising. Our turnkey franchise program provides all you need to establish and grow a home-based business with multiple growth avenues!

How to Franchise a Sales Organization

How to Franchise a Sales Organization.
Franchising is a unique entity. It is regarded as an industry, but is defined as a method of distribution. Most of franchising is associated with food oriented businesses, you know, the ones that line every street corner and you probably bought lunch from the other day. But franchising as permeated all industries today, we now see franchise companies in all industries that are successfully duplicating themselves across the country and around the world. Franchising is a dynamic, aggressive way to grow a business, there is no question about that. But what is the process? How do you franchise a business that typically is not associated with franchising?
In this article I will discuss How to Franchise a Sales organization and the process involved. Francorp is the world’s largest and most experienced franchise development and consulting firm. The company has franchised over 2,000 different businesses in it’s 33 year history. So needless to say I hear from plenty of business owners, many of which have products or services that they wish to sell more of to a larger customer base. Franchising can be a way to do this effectively and control the quality and effectiveness of the sales team. When discussing How to Franchise a Sales Team it is important to understand that franchising is a controlled mode of growth. The franchisor can control the quality, consistency and overall brand image of the company if a franchise system is managed correctly.
So, How to Franchise a Sales Team begins with setting the system. As a sales oriented franchisor your most valued asset is the sales system. The process you use to sell the product or service. That needs to be clearly defined, documented and tested. Once that system is in place, the marketing process makes sense, scripts have been put together, sales call procedures have been mapped, technology has been identified and all of the above is on paper and ready to go, then the franchise is ready. A Franchise system is only as strong as the system that is replicated through it. So if you’ve ever heard of the saying, “Garbage in, Garbage out, or GIGO”, that would apply here when considering How to Franchise a sales territory.
An interesting misconception about franchising is that the success depends on the quality of the product or service more than the surrounding business model. In fact, most franchise systems don’t have overly astounding products to offer, but the good ones always have great business models and ways of doing business. The product obviously should be a good one, but what will make a Sales Oriented franchise successful is the process to market the offer and close the deal.
The key for How to Franchise a sales business to think about how to replicate the sale, the pitch, the marketing, the lead generation all the way to the payment. That is where the secret lies. Many great sales organizations have been built through franchise systems, it is worth investigating if you are looking to sell something across larger territories or areas.

The Power of Franchising

Unlike the exciting cliff hanger football game that is a Mecca for mass-marketers,
franchised businesses again dominated in advertising buys in 2009. During
Super Bowl XLIII, companies engaged in franchising outspent all other
combined enterprises by an estimated $14 million dollars.

These numbers are even more dramatic when 23 NBC network promotional spots
and 7.5 NFL spots are added to the mix. Both NBC and the NFL have
franchised affiliates, and if the value of these 30+ ads are factored in the
amount balloons to more than $100 million. In all, 64% (81.5 ads) of some
128 ads that aired during the 4 hour game broadcast came from businesses
engaged in franchising.

According to American Association of Franchisees and Dealers (AAFD) Chairman
Robert Purvin, who launched the organization?s Advertising Super Bowl survey
22 years ago, ?Super Bowl advertising continues to demonstrate the power of
franchising. How else can small business owners afford to share their
messages with almost 100 million households at one time??

Financial markets have been paying close attention to the willingness of
advertisers to embrace the high ticket cost of advertising on network
television?s grandest stage, with many concerned the Super Bowl advertising
would be yet one more victim of an economic meltdown. If anything,
franchisors have seemed to ratchet up marketing efforts to fight back
against slowing sales.

NBC reportedly charged a record average price of almost $3 million per
30-second spot ($100,000 per second). The higher cost didn't seem to impact
advertiser demand as NBC reported it sold out the available 69 national
network spots. (Each local network affiliate franchise sold about 30 local
spots). The total number of spots played during the game earned NBC an
estimated $270 million dollars.

Yet for a single 30 second spot of $1.5 million, the advertising cost for a
ubiquitous franchise such as McDonald's (who aired two ads this year) breaks
down to under $100 per store when divided among the approximate 15,000 US
restaurants in the chain. ?The collective marketing power among franchised
businesses is formidable,? adds Purvin.

Among companies that market through franchising, those companies that
manufacture products that are distributed through independent dealer
networks (called ?product franchisors? in the trade) easily dominated the ad
buys. A robust 37 ads were placed by companies who sell cars, beverages,
cosmetics and insurance through independent networks.

Business format franchisors -- those businesses that consumers traditionally
associate with franchising ? accounted for 21 commercials (double the number
from 2008), including spots from McDonald's, Taco Bell, Cars.com, and
regional entries (on the West Coast where the survey was conducted) from
Jack-in-the Box. The business format segment was even more active in the
pre and post-game markets.

Budweiser again led all advertisers with 4 minutes of air time (about 8
spots), earning it exclusive rights to broadcast during the game and
shutting out competitors Miller Brewing and Coors (both of which advertised
in the pre-game).

After Anheuser-Busch, only six advertisers ran more than one or two
commercial spots. Pepsi was second to Budweiser, buying several minutes of
ad time among its franchised soft drink brands and its non-franchised
Frito-Lay brands (primarily Doritos). Hyundai ran several spots during the
game as well during the Pre-game show. Honda and Toyota each ran multiple
spots for various brands.

American car manufacturers were missing from the prime time telecast. For
the first time in years, cooperative networks such as the California Cheese
Association, Ace Hardware and the Almond Growers Association all stayed
away.

Between 2:00 p.m. and 10:00 p.m. Eastern time, consumers were ?treated? to
almost 2 hours and fifteen minutes of thirty-second ads (approximately 270),
64% of which were placed by companies engaged in franchising. This was
about the same ratio as 2007 and 2008.

Entertainment related ads, primarily motion picture promos, led the
non-franchised segment with 16 spots. Manufacturers slid to second place
with 13 ads, including electronics, food producers and pharmaceuticals.
Retailers fell off dramatically, with one ad each from Best Buy and Kay
Jewelers, as compared to 9 spots placed in 2008. On the flip side, on-line
retailers showed a dramatic increase, with multiple spots run by
Monster.com, GoDaddy.com and E-Trade, among several others.

During the game approximately 67 different companies advertised. In
addition there were two public service announcements.

This year?s crop of ads were less striking than past years, with no
candidate seemingly destined for the Super Bowl Ad Hall of Fame, although
E-Trade?s infant stock trader was quite clever. Three other memorable ads
were delivered by Budweiser (with a Clydesdale pursuing love and the
American Dream) and an office mate being thrown out of a third story
building for suggesting that his company save money by no longer providing
free Bud Light. Coca-Cola offered a clever ?reincarnation? of the famous
Mean Joe Green encounter with a young fan, with All Pro defensive back, Troy
Polamalu, tackling a Coca-Cola executive to avenge his young fan.

About the AAFD

The American Association of Franchisees and Dealers is the oldest and
largest direct member non-profit trade association representing the
interests of franchisees and independent dealer networks throughout the
United States. The AAFD was formed in 1992 with a mission to define and
promote collaborative franchise cultures that the AAFD describes as Total
Quality Franchising. Stressing market solutions and franchisee empowerment
through independent franchisee associations, the AAFD has grown to represent
more than 50,000 franchised businesses nationwide, with members in all 50
states.

The AAFD's Fair Franchising Standards, Fair Franchising Seal, Trademark
Chapters, and emphasis on marketplace solutions led to the Association's
recognition as a growing force in franchising. The AAFD?s Branded Partner
programs add a new dimension to the value of AAFD membership. The AAFD
provides a broad range of member services designed to help franchisees build
market power, create legislative support of interest to franchisees, provide
legal and financial support, and provide a wide range of general member
benefits.

For more information about the conference or the AAFD, please call toll free
? 610-209-3775 or visit www.AAFD.org.

Francorp Client DirectBuy

Bart Fesperman announced as DirectBuy's new executive vice president

DirectBuy, the home improvement and home furnishings club with direct insider prices, is pleased to name Bart Fesperman as its new executive vice president.

MERRILLVILLE, IN, February 26, 2009 /Franchise PR News/ -- Mr. Fesperman has been with DirectBuy since 2004 when he joined DirectBuy's executive team as vice president of sales & marketing. Fesperman has nearly doubled DirectBuy's annual membership enrollments each of the last two fiscal years.

Mr. Fesperman's career with DirectBuy dates back to February 1995 when he and his wife LeaAnn, along with partners Lynn and Tammy Corbin, opened their first franchise in Springfield, Missouri. In addition to being recognized as top performers in the network, the Fespermans and Corbins were the recipients of the prestigious Founder's Award in 1998 in recognition of their outstanding contributions to the company.

In July of 2002, the Springfield ownership team opened their second franchise in Johnson County, Kansas. In 2003, at DirectBuy's International Sales & Service Conference in San Diego, both franchises were recognized as Top 10 centers in the network for the conference year 2002-2003.

"We congratulate Bart and look forward to a prosperous future as he leads DirectBuy's sales organization to even greater levels of success," said DirectBuy President and CEO Scott Powell.

DirectBuy offers consumers thousands of items, including kitchen cabinets, flat-screen televisions and major appliances from more than a thousand top manufacturers and their authorized suppliers throughout North America. At more than 160 clubs throughout the United States and Canada, DirectBuy members enjoy a comfortable, welcoming setting and design center where they finally have the financial control of buying direct.

To assist members with their home renovation projects, DirectBuy also offers access to interior designers and product specialists who are specially trained in one of five areas of merchandise: Home Furnishings, Home Improvement, Flooring, Entertainment/Outdoor, and Accessories. Additionally, members benefit from the use of a children's play area, cafe and a member's lounge to relax while shopping.

DirectBuy members also have access to renowned designer Christopher Lowell. Lowell has designed twelve room settings - created exclusively with products available through DirectBuy - using his Seven Layers of Design. An innovative approach to home decor, The Seven Layers of Design keeps homeowners on budget and from feeling overwhelmed by their project.

DirectBuy Membership
Consumers who are interested in joining DirectBuy are encouraged to attend an exclusive Open House event, which is designed to educate families about DirectBuy's unique business model. The Open House also helps consumers better understand how DirectBuy members avoid traditional retail markup when purchasing brand-name merchandise.

To request a "Free Insider's Guide to Buying Direct" and a Visitor's Pass to learn more about the superior value and benefits of a DirectBuy membership, call 1-800-DIRECTBUY or visit www.directbuy.com.

About DirectBuy
For more than 37 years, DirectBuy has been showing thousands of consumers unparalleled ways to save as they shop for virtually everything for in and around their homes - from furnishings, home improvement and flooring, to entertainment and outdoor products, accessories and much, much more. With more than 160 locations in North America, DirectBuy offers its members access to approximately 700 brand-name manufacturers and their authorized suppliers in the US, and more than 500 brand-name manufacturers and authorized suppliers in Canada.

Consumers interested in seeing DirectBuy's savings, service and selection up close may obtain a Visitor's Pass to attend an Open House by visiting www.directbuy.com or www.directbuycares.com.

El Pollo Loco

El Pollo Loco Passes the Buck Back to Consumers with Hot-Off-the-Grill Competitor Coupon Program

Nation's Leading Flame-Grilled Chicken Restaurant Heats Up the Economy Offering Guests Special Dollars-Off Discounts

COSTA MESA, CA, February 21, 2009 /Franchise PR News/ -- After watching Wall Street fat cats pocket huge bonuses of taxpayer money, El Pollo Loco has decided now is the time to pass the buck back to the American people... and in some cases three bucks. Hot off the grill, the nation's leading flame-grilled chicken chain will gladly accept competitors' chicken coupons for a limited time in all 400 plus locations across the country. Just bring in any printed chicken coupon from another restaurant and El Pollo Loco provides a special discount of:

• $1 off any El Pollo Loco Combo Meal (if competitor coupon features an individual chicken meal or entree)

• $3 off any El Pollo Loco Family Meal (if competitor coupon features a family chicken meal)

Consumers can visit www.elpolloloco.com for additional details about this limited time offer.

"Though this offer may ruffle a few feathers, we want to do our part to heat up the economy and reward our guests by offering this special dollars-off discount on our fresh, healthful flame-grilled chicken," said Steve Carley, chief executive officer. "El Pollo Loco doesn't need to lock its recipe in some well-armed underground bunker. It's no secret that El Pollo Loco's juicy, citrus-marinated, flame-grilled chicken has perfected a traditional family recipe with 30 years of grilling expertise."

El Pollo Loco is famous for the unique preparation of its award-winning "pollo" - fresh chicken marinated in a special combination of herbs, spices and citrus juices, then flame-grilled, hand cut and served hot off the grill with warm tortillas, freshly prepared salsas and a wide assortment of side dishes. Rounding out the healthful menu are fresh flavorful entrees inspired by the kitchens of Mexico, including signature grilled burritos, Pollo Bowl entrees, Pollo Salads, tacos, quesadillas, Chicken Tortilla Soup and more.

Francorp To Present at The Franchise Middle East Show

Franchising Middle East expo opens
Dubai: Mon, 2 Mar 2009

Franchising Middle East (FME), the region’s leading exhibition for the franchise sector, opened at the Dubai International Exhibition Centre, with 72 exhibitors from 22 countries.

The exhibition, now in its sixth year, aims to provide an injection of business ideas to the Middle East market as international brands come to Dubai with a view to expanding across the Middle East with local partners, said organisrs.

'Never has the franchise concept been more vital to business growth than in today’s economic environment,' stated Abdul Rehman Falaknaz, president of International Expo Consults (IEC), organisers of FME.

'Franchising offers local entrepreneurs access to established brands and business models, while international players are provided with a chance to tap into new markets at relatively low set-up costs.'

Big names from Europe, Asia and the Middle East are exhibiting at the show this week, including participation from Cremeria Vienna, Subway, London Dairy Café and Tom Tailor.

Master Franchisers from Jebel Ali Free Zone is leading a delegation of international brands, many of whom are debuting at the show. These include Zerga, Bed + Bath, Padini Authentics, Trio and New Zealand Naturals.

Franchise consultants such as FranExcel and FranCorp will be on hand to offer would-be entrepreneurs advice on how to set up franchise operations in the region.

FME is the region’s only exhibition that offers a world of exciting opportunities to international franchisers to access the thriving Middle East and North Africa (Mena) market and launch their franchise concepts.

The exhibition facilitates direct communication between entrepreneurs and potential franchise buyers from the region and beyond.

The show has earned a name for providing an ideal networking opportunity for the franchising industry in the Middle East, which industry analysts have estimated is worth $30 billion.

'With the franchise industry already growing at 25 per cent per annum, the UAE and the rest of the GCC region is a fertile market for franchise companies to expand into,' Falaknaz added.

'With approximately 85 per cent of the UAE population comprising expatriates, this is the market that needs to be catered for.'

FME 2009 takes place from March 2 to 4.-TradeArabia News Service

Francorp Middle East

Franchise demand in UAE to expand
Armina Ligaya

Last Updated: March 02. 2009 10:12PM UAE / March 2. 2009 6:12PM GMT
Customers line up at Popeye's, a fast food outlets. Experts say franchising is likely to expand this year as people seek alternative forms of income. Jaime Puebla / The National
DUBAI // The franchising industry in the UAE will continue to grow in the coming year as regional investors shift away from property and financial markets, and out-of-work executives seek new forms of employment, industry insiders say.

“The potential for growth is there,” said Matthew Shay, president and chief executive of the International Franchise Association, on the sidelines of the Franchise Middle East Exhibition in Dubai. “From what we’re hearing from our members, [the UAE] is still a positive climate.”

The US market, valued at US$1 trillion (Dh3.67tn), was forecasted to see declines of 1 to 2 per cent in 2009, according to a study conducted by the IFA and Pricewaterhouse Coopers, Mr Shay said.

However, he expects the UAE market to have a brighter outlook due to relatively easier access to credit and its role as the gateway to the region. Mr Shay estimates the UAE franchising industry, valued at about $30 billion, will grow between 5 and 8 per cent.

“This is one of those places that you can’t skip; you have to do business here,” he said.

Local investors are also looking to get into the franchising game as the traditional investment avenues such as property and the financial markets are less stable, said Imad Charafeddine, managing partner of the UAE branch of Francorp, a franchise consultant.

He said franchise inquiries have increased by 20 per cent in the past two months.

It is a similar pattern at the Kuwait-based Middle East Franchising consultancy, which has seen a 25 per cent jump in inquiries, according to its deputy chief executive, Barrak Al Homaisi.

“A lot of people who have lost their jobs and have a good amount of savings are looking to start their own business,” he said.

Mr Shay said typically in economic downturns, as unemployment rates go up, more people look to start their own business, and franchises are an easy option. However, he said recent studies in the US show access to financing will drop by 30 per cent in the next year.

“This [crisis] is an opportunity for franchises, but the rub is lack of access to credit.”

Mr Charafeddine said this is less of a problem in the UAE because Emiratis can secure funds from Government agencies and expatriates with a business background can still be granted start-up funds.

In the past five years, the UAE industry has grown by about 25 per cent to roughly 400 franchising systems, said Sary Hamway, the Dubai-based chief executive of FranExcel, a franchise consultancy that organised the World Franchise Forum alongside FME.

Franchise inquiries have gone up, he said, but investors were more hesitant to buy.

“It will continue to grow,” he said. “Retail franchises are good because it is medium-risk, and medium investment.”

Darren Smith, manager of retail and marketing support with Emarat’s coffee chain Bakeria, said the tightening credit markets have also helped to bring down the cost of rent. Outside of the major city centres, some rents have gone down from Dh350 a square foot to Dh150, he said.

“Now, suddenly, you’re hearing a word you haven’t heard before from landlords: negotiate.”

Global brands are now clamouring to enter the region to access the strong demand for international food brands, said Steve Rothenstein, the international operations manager for tasti D-lite, a US chain of low-fat yogurt stores.

“In the UAE, the people like their food brands from around the world,” he said. “It’s a great area to do business — friendly, ease of entry, and they know what they’re doing here in terms of infrastructure.”

Francorp to Present at the New York Restaurant Show on How to Franchise

Francorp International Consulting firm to present on franchising and how to franchise at the New York International Foodservice Show. Francorp works closely with the New York Foodservice show to educate and assist restaurant owners and business owners in the evaluation of franchising as an expansion option.

Several Francorp clients and former clients will also be taking part in the show including Uno Chicago Grill, Buffalo Wild Wings and McDonald's . Francorp Executive Vice President Thomas DuFore will be handling the workshops and presentations during the week in New York.

Francorp is headquartered in Chicago, IL but operates out of 22 offices globally and does work for franchise companies in over 40 countries around the world.

Below are the details and featured events during the show. For more information on Francorp and Francorp's development work visit the corporate site, www.francorp.com.

Intl. Foodservice Show of NY opens today
01 Mar 2009
The International Restaurant & Foodservice Show of New York starts today at the Jacob K. Javits Convention Center in New York City. The show runs March 1-3 and features National Restaurant Association chairman Michael Kaufman as the keynote speaker. Kaufman's address, America's Restaurants - Serving our Nation, will be held at 1 p.m.

Educational sessions for the day include:
"Menu Targeting Trends: See what Generation Y and the Millenials are Eating Before they Hit Your Market," presented by Rob Harison, a chef with Princeton University Dining Services - 11:30 a.m. - 12:30 p.m.
"Fast Casual - Changing the Way America Eats," a panel discussion hosted by Linda Duke, CEO of Duke Marketing. Panelists include Paul Barron, publisher of Fast Casual magazine; Ed Frechette, senior vice president of Au Bon Pain; Louis Basille, CEO of Wildflower Bread Company; and James Strobino, SVP, new concept development, Uno Chicago Grill - 2:30 p.m. - 4 p.m.
"6 Reasons Why You Should Franchise Your Restaurant," presented by Tom Dufore, executive vice president, Francorp - 3:30 p.m. - 4:30 p.m.
Co-located with this year's event is the New York Pizza Showcase. The showcase features performances by the U.S. Pizza Team and the Hall of Fame Award presentation. Dom DeMarco of Di Fara's Pizza and chef Santo Bruno of Marsal & Sons are recipients of this year's awards.

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Francorp - The World Leader in Franchising

Francorp is the world's largest and most experienced franchise develpment and consulting firm. Francorp has a responsibility to work with all of the world's small and medium sized businesses to help them understand and explore the concept of franchising their businesses as a way to grow.
Francorp is the largest franchise consulting firm in the world and has the resources to be at all of the world's major franchise and small business exihibitions. This weekend Francorp is working with the New York Restaurant Show and convention to educate the successful restauranteurs in the North East about franchising and help them evaluate the concept of franchise development.

Francorp will be presenting to the restaurant owners at the show on how franchising works and whether the expansion vehicle could be an opportunity for some of the business owners at the show. Francorp has done business in the northeast with many of the successful food franchise concepts and restaurants. For more information on Francorp and the work that the global firm has done please visit the Francorp site, www.francorp.com

Francorp was founded in 1976 and has worked with most of the world's largest and most successful franchise systems. Francorp was founded by Don Boroian and continues to lead the franchise marketplace through the United States and around the globe.

How to Franchise - Training

Franchising a business is about the Art of Reproduction. Franchising teaches someone who doesn't know anything about the business how to run the operation. The keys to success lie with the system of operation, the structure and integrity of the business model and in the training system for replicating this business model.
What constitutes a great training system in a franchise model is the depth and breadth of what is being trained. When a franchisee comes on board with a particular franchise company, they do not accept a managerial role with the company, or a sales role, or a HR position with the firm.....they take on them ALL. The franchisee becomes the business and runs every element of the operation. Once a franchisee leaves the corporate office from their initial training sessions, they are essentially running the show. They have to not only grasp and understand all of the intricacies of running and operating a new business at that point, but they also must be able and willing to teach their employees how to do every job within the business itself.
The most effective training systems in the franchise world are like Boot Camp. They are flexible in nature and address the responsibilities of running the business by job duty. The franchisee is put through a step by step process that works with the new franchise buyer on each part of running the operation. Franchisees will get their hands dirty and their feelings hurt during this process. Franchisees in many instances are very wealthy individuals, but when they buy a franchise for a food operation, they have to know how to run the grill, the fryer and how to clean the restrooms. They need to understand the P.O.S. system and how to maximize the efficiencies and benefits that the required technology offers to them. The franchisee will need to understand the financial side of running the business and how to manage the finances. All of these responsibilities fall on the head of the franchisee once this training is completed.
The great franchise companies have really solid training models. McDonald's has Hamburger University, Dominoes Pizza requires its franchisees to be a manager in a location for two years before they can be considered for a franchise location, Jimmy Johns puts their franchisees through an extremely elaborate and exhausting training program. The one commonality, that when a franchisee is sent out into the field to operate their location, they get it. They understand how to operate and how to make money at the unit level. This relieves the franchisor of the responsibilities, costs and problems that come with franchisees who need excessive amounts of hand holding when they begin operating their locations.
Franchisors have many tools and different technologies at their fingertips now that can make the training process much simpler today. Things like franchise training videos should be put together, Webcasts and Podcasts can be utilized in today's market to help train franchisees without having a human teacher doing the talking. Intranets and web-based platforms can be utilized to quickly and efficiently get updates and new information out to franchisees in the field and in remote locations. The franchise training process should typically be at least a month in length. This could be a combination of time spent at the corporate headquarters of the franchisor and time spent with the franchisee in the field. It is a big mistake to assume that in almost ANY business model that a franchisee could realistically be trained effectively in two weeks how to run the business and manage it profitably.
Franchising is hard work, it is a big mistake to give a prospective franchisee in the sales process the idea that opening a franchise is easy. The franchisee should be given a realistic picture of what they are getting into when they buy a franchise. When they do sign on the bottom line it's up to the franchisor to have the system and tools to really provide value and guidance to a new buyer.
Christopher James Conner Vice President Francorp, Inc. http://www.francorp.com
Article Source: http://EzineArticles.com/?expert=Christopher_Conner

How to Franchise - Marketing

How to Market a Franchise:

The perpetual question on every franchisor's mind today is how do I keep generating good quality leads for franchise sales in this economy? When the going gets tough, the franchisor needs to get creative. The great thing about franchise marketing is that it is very targeted and specific. When was the last time you saw a Super Bowl Ad marketing for new franchisees? It's just not that likely. The reason is simple, the consumer advertising we see every day is expensive because of the reach and coverage. It is worthwhile for a company to advertise for car insurance when almost anyone who sees the TV commercial could be a potential client. That is not the case when advertising for a franchisee, the franchisee is a clearly defined candidate. The demographics have hopefully been defined ahead of time, the areas of interest are predetermined, the capital requirements and all other attributes are clearly defined. Thus, the advertising is much more focused and generally speaking less expensive.The different avenues that franchisors use for franchise marketing run the gambit. The Internet of course is the most widely used medium, about 74% of all franchise leads today come from the web. Print Media can be effective based on the readership and specificity of a publication. Direct Mailings can work in some instances as well as Email Marketing Campaigns. Tradeshows are the most showy and grand of the marketing mediums for franchise lead generation and can also be a wonderful way to market a franchise. When it comes down to it there are a lot of avenues...but how does a franchisor know where to spend their ad budget? How do they determine where they will get the most "bang for their buck"? There are several keys that my firm has lived by when it comes to franchise marketing, if these key issues are clearly and completely defined and addressed, the franchise marketing process can be a lot of fun and generate great leads. If these key points are ignored or only briefly addressed, the franchise marketing process can drive a franchisor mad!1. Define your Buyer. Have you ever heard the phrase, "Ready, Fire, Aim!" It sounds funny, that's because it doesn't make sense! The first goal of the franchise marketing effort should be to clearly define the buyer. I don't mean "salesperson with a desire to succeed".....I mean, "Female, ages 28-37, Midwest and Southeastern US, Household income between $75k-100k, work experience with kitchen products, married, preferably with children." We want specifics, down to every last detail. Once we completely figure out who this franchisee is, then we can more effectively plan our marketing.2. Establish franchise sales goals. Clearly identify the marketing approach. Start first with how many franchises you plan on selling into the system within the next 6 months and year. Don't plan much further than that, because beyond that point you will most likely have to redo this plan based on then current circumstances. Once we have the goals set, we then can back out of that equation. Typically we are looking at around 1000 qualified leads for every 50-100 meetings with prospective franchisees. From those meetings the closing percentage is typically around 5%. So if we determine that we would like 5 franchises to open during the first 12 months of rolling out the franchise, we need to plan on generating 1000 leads during those first 12 months. The beauty of franchise marketing is that it is very measureable and much easier to track then consumer marketing...we can actually tell how effective it is!3. Determine the advertising mediums. Different buyers can be reached via different advertising avenues. In some franchises all of the marketing can be done over the Internet, in others the marketing has to be done through direct mailers to specified candidates....like doctors in the case of a rapid care facility. Outline the pros and cons of each medium and establish the most effective based on the cost. This is where the importance of the defined franchise buyer comes through.4. Establish the Budget. The average cost per lead on the Internet is around $30, the average cost from a tradeshow can be as much as $200 when factoring in travel, time, booth set up and other costs. So take into account some kind of an average cost based on the advertising venues you have determined will be most effective at reaching the target audience. For those thousand leads you may need $10,000 in advertising dollars for that first year to hit the 5 franchises sold.5. Create the Collateral materials. A Franchise is a big investment for most franchisees, in fact for many of the buyers it is literally everything they have. The franchise offering should look extremely professional and really has to be buttoned up. This means that the brochure should be top quality, there should be a sales video to present to the buyer what the business entails and helps create excitement in the franchise. Pamphlets and handouts should be put together. All of this built around creating value in the business offering, not the product or service that the business offers. The overall theme should be "Mr. or Mrs. Franchisee, you can make a great living doing this, and have fun while you're at it." Franchise buyers fall in love with franchise concepts because they envision themselves running a business doing what the franchisor does. The collateral materials should be the vehicle that sparks that interest in the franchisee's mind.6. Put together a comprehensive application form. There should be two forms in the end...one that the franchisee fills out initially to give the franchisor initial information from which the franchisor can make a decision if they want to follow up with the prospect any further. This should be basic information that the franchisor should know up front as soon as possible in the sales process, like how much capital do you have to invest! The second form will go into much more detail and would be sent with the brochure and information packet. This form should go into work history and personal background, so that the franchisor can really get to know who this prospect is and what they are all about.7. Execution. Franchise marketing is like all advertising and marketing, it isn't a science, although it is much closer to one than consumer marketing, it still varies a great deal in its effectiveness and results. Some times, just when things are getting to the point where a franchisor is thinking they should throw in the towel and call it quits is when they really should do some MORE advertising! It takes consistency. The franchise buyers can be fickle, lots of time it has nothing to do with the franchise offering or the marketing, but rather with the franchisees life and circumstances. They do come back and look again, we want to be there when that prospect makes the buying decision.8. Excellent Follow Up. Great franchisors have wonderful salesmanship in the sales process. Leads should be followed up with immediately upon contact. Phone calls are important and there should be high frequency between calls until a contact is made. The franchise sales process isn't rocket science, it just takes hard work and good planning.

Christopher Conner
Vice President
Francorp, Inc.
http://www.francorp.com
Article Source: http://EzineArticles.com/?expert=Christopher_Conner