Francorp Stock Forum

Franchise Consultants say How Much You Can Make

2010-12-02T11:00:00.001-08:00

Looking at franchising your business? Francorp Inc., the leading franchise consulting firm, looks to provide some insight into the question, "How to Franchise My Business?"

Franchising a business is a complex process that requires extensive legal, operational and strategic expertise. As an entrepreneur it can be appealing to attempt to franchise on your own as opposed to hiring a franchise consultant. Whether your attempt to franchise on your own or work with a consultant, it is important to gather the information necessary to make your business decisions from an informed perspective.

Wondering whether or not your business is franchisable? Take the free franchise quiz today. Additionally, Francorp Inc. can provide you a free consultation and educational webinar, just call 800-FRANCHISE or sign up at the Francorp webinar registration page.

Information on How to Franchise, Help With Franchising

2010-04-13T16:19:00.001-07:00

Francorp is the world's oldest and largest franchise consulting firm. In business since 1976, Francorp has consulted with over 10,000 companies and helped over 2,000 businesses take their business to the next level through franchise expansion. Whether you are a multi-million dollar corporation or a small business, Francorp possesses the expertise and experience to help assess the franchisability of your business and build a program to help you expand your business in a way that makes sense. For more information, take the franchisability quiz and view our clients, please visit http://www.francorp.com.

Franchise Consultants Help With Franchising

2010-04-11T00:43:00.001-07:00

How to Franchise Your Business, Franchise Consultant Information

2010-04-09T22:32:00.001-07:00

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

2009-12-14T06:42:00.000-08:00

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

Francorp at The Seattle Coffee Fest

2009-09-21T05:47:00.001-07:00

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

2009-09-18T04:55:00.001-07:00

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

2009-09-18T04:20:00.001-07:00

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

2009-09-18T04:19:00.001-07:00

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

2009-09-18T04:18:00.001-07:00

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

2009-09-18T04:17:00.001-07:00

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

2009-09-02T04:43:00.000-07:00

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

2009-07-06T05:52:00.001-07:00

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?

2009-06-23T07:32:00.000-07:00

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

2009-04-23T09:15:00.000-07:00

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!

2009-03-17T05:14:00.001-07:00

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

2009-03-06T13:58:00.000-08:00

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

2009-03-06T13:28:00.001-08:00

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

2009-03-05T04:40:00.001-08:00

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

2009-03-05T04:37:00.000-08:00

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

2009-03-04T05:24:00.000-08:00

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

2009-03-03T05:21:00.000-08:00

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

2009-03-01T15:09:00.000-08:00

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

2009-02-28T23:53:00.000-08:00

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

2009-02-25T21:42:00.000-08:00

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

2009-02-25T21:35:00.000-08:00

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

Francorp Client Success in 2009

2009-02-24T08:30:00.000-08:00

Francorp Clients Continue to have Success in 2009.

Francorp clients continue to drive forward through "interesting" economy.

Francorp Client Updates:Real Property Management: Currently have 42 locations across the country. Real Property Management is an industry leader in property management and has a wonderful system for teaching and training franchisees how succeed in this business.Here is an excerpt from the Real Property Management Website:Real Property ManagementThe Leading Property Management Companyin the United States and CanadaFeaturing Over 200 LocationsProperty OwnersReal Property Management is the one property management company that can offer high quality, standardized property management services in all major markets. Real Property Management has managed thousands of properties for over 20 years.Franchise OpportunitiesReal Property Management provides each franchise with a competitive edge through training, innovative and proven business systems, lead-generating marketing methods, Internet-based property management software, and on-going support.

Click here to learn more about Real Property Management franchise opportunites.

Francorp Client Deck Rescue currently has 12 franchises openned currently!

Deck Rescue is an industry leader in the deck powerwashing industry.Here is an excerpt from the Deck Rescue Website:About deck rescueSince 1995, Deck Rescue has been professionally servicing decks. We care for over 1,500 commercial and residential decks, fences, gazebos and other wood structures each year.President of Deck Rescue, Dave Hydock, was appointed to Wolman's seven-member National Contractor Advisory Board in the fall of 2006. Then, in the winter of 2007 upon learning of Deck Rescue's plans to franchise, Wolman agreed to support the franchising endeavor. Wolman has been with us since the beginning and will continue to support us into the future.Licensed, bonded and insured, our professional staff has been recognized for our outstanding services. Most notably by the Cleveland Plain Dealer, The Columbus Dispatch and WEWS News Channel 5.Also, Angie's List awarded Deck Rescue the Super Service Award for Northeast Ohio in 2008 - that's SEVEN awards in the past eight years!We are also the proud recipients of the Torch Award from the Better Business Bureau - only 11 other companies in the area were nominated for this award in 2003, and we were one of only four winners! Deck Rescue also received Honorable Mention in the 2005 biennial competition.We look forward to bringing you our impeccable service!

For more information on franchising and Francorp's clients visit the corporate site:http://www.francorp.com/

Francorp Services

2009-02-24T05:04:00.001-08:00

Franchise Program Development
Development Services for New Franchisors
Francorp Consultation
Franchise your Business Seminars
Strategic Planning & Business Plan Development
Market Research & Competitive Analysis
Prototype Development Consulting
Franchise Document Drafting Services
State Filings & Registrations
Operations Consulting and Manual development
Advertising and Marketing Services
Franchise Internet Marketing
Web System Development, Guidance and Consulting
Media Plans & Budgeting
Franchise Sales DVDs
Training DVDs
Franchise Sales Training
Franchise Management Training
Implementation Consulting
General Consulting
Development Services for Existing Franchisors
Industry Research Services
Legal Document Revision
Registration Updates & Renewals
Operations Manuals Drafting, Review and Revision Services
Franchise Sales Training
Franchise Management Training
Training DVDs
Sales DVDs
Franchise Program Review
Web System Development, Guidance and Consulting
Franchise Internet Marketing
Lead Generation Services
Sales Strategy Critique & Training
Advertising and Marketing Services
Franchise Ads & Media Planning
Market Research Services
Special Projects
Expert Witness
General Consulting

The Francorp Difference

2009-02-24T04:58:00.000-08:00

The Francorp Difference
Our first step is always to determine your franchisability. Francorp differs from other companies that are focused on selling their services. It's important to us that we work only with companies that are franchisable . We want you to be educated about the franchising process, and about how long you should expect the successful franchise offering to take .
Do you own one of those companies? Is your company ready to succeed? We can fast track the process without interfering with your potential to succeed.
And if you don't yet have a company, but do have the necessary funds, Francorp can help you develop a franchisable idea from the ground up.
All Under One Roof
Successful systems create successful franchises, and our unique Proven Method maximizes your chances of success and minimizes costly mistakes. We also offer an array of resources that speak to our leadership in the industry.
In franchising as in so many other fields, there is no substitute for experience. Francorp's professional staff is the largest and most experienced in franchising, and you get the benefit of our collective credentials. It's no accident we're considered the industry leader.
As a result, your services and franchise help are performed "in-house," not delegated to outside contractors who may have no expertise in franchising. We employ a full-time staff of professionals to create franchise structure, franchise documents, marketing strategies and materials, operations manuals, sales training, video presentations, and general consulting.
Information about each client is shared among the professionals involved in order to keep the work product consistent from department to department.
A Comprehensive Franchise Program
It's normal to be nervous about what to expect when you've never done this before. Francorp has developed a step-by-step procedure to support you through the franchising process.
When you first contact Francorp, you won't get a sales pitch. You won't be pressured at all. But by time you leave your first meeting with one of our consultants, you'll walk out with an action plan to either become more franchisable, or to start the franchising process.
Franchise structure - As a first step in creating a franchise program, Francorp consultants prepare a written franchise analysis based upon your business, its competition, and the franchise industry at large.
Franchise agreement - Francorp's in-house attorneys, with input from Francorp's operations, marketing, and strategic consultants, will draft the principal agreement that binds you to your franchisees.
Franchise offering circular - Francorp's legal department will draft an offering circular which will meet both Federal Trade Commission requirements and those of the states in which you intend to sell franchises.
State registration materials - Requirements of the states differ, and Francorp personnel will gather the proper materials and prepare the necessary forms required by each state where you wish to sell franchises.
Operations manual - Everything from company philosophy to advertising, from franchisee reporting to employee recruitment, from inventory acquisition to day-to-day operating procedures is included in your operations manual.
Marketing plan - To aid your franchise sales lead generation, Francorp's marketing department provides the media strategy, media budget, and media schedule. We also develop advertising copy and layouts, and/or direct mail materials, to generate interest among your target franchise prospects.
Franchise brochure - Because the prospect's first impression of your franchise is often created by a brochure, Francorp will design a brochure with special emphasis on exciting graphic design, and will describe in detail the elements of your franchise which make it attractive to prospective franchises.
Franchise sales training - During a two-day seminar, Francorp will instruct your franchise sales staff on all elements of the process, from legal considerations to closing techniques.
Implementation consulting – you'll always have ready access to professional assistance in all of Francorp's specialties during the critical period of franchise development.
Whenever problems or questions arise during this period, you may consult at no charge with any member of our project team.
Plus, you'll also receive a copyrighted 400-page manual covering all topics introduced in the franchise sales seminar in even greater detail.
Francorp's Track Record Of Success
Francorp has the most success stories of any franchise consultant. See our proven track record of client references who've succeeded with Francorp, and how we made a difference in their success. Learn the story behind our success to understand how Francorp came to be the franchising leader, and why it matters to you.
Attend an upcoming event to spend some time with Francorp's consultants. Or, visit our Chicago headquarters to see where it all takes place.
Every company is different, so we give you options for getting the process started. If you think you are franchisable, and that we can make a difference for you, call us to speak directly with one of Francorp's senior consultants. Perhaps you'd prefer to ask a question or inquire about our services online. Contact us and see how Francorp can assist your franchising efforts.
Francorp's difference can also be seen in our pricing structure. We understand the financial concerns of owner-operated companies, and offer you pricing and payment options to fund the future.

Franchising in India

2009-02-22T14:57:00.001-08:00

Franchising in most parts of the world is well established and part of everyday life. In the U.S. over $1 trillion is spent per year in franchised outlets, 1 out of every 12 retail locations is a franchised operation. Now franchising is moving into other parts of the world, most notably India.
India now presents and enormous opportunity for franchise organizations. The country has over 12 million retailers which surpasses even China. This makes India the country with the highest retail outlet density in the world.
Indians have taken to franchising like the U.S. Already in this young and undeveloped franchise environment there are over 600 franchisors franchising in the Indian marketplace today. Along with that comes over 40,000 franchisees spread out across the country and across different sectors, over 300,000 Indian employees are employed directly by Indian franchise companies there. The market is enormous with almost unlimited potential. Currently the education sector of franchised businesses is the leading franchise model, but retail is catching up. The size of the consuming class means big opportunities for more franchise development.
The potential downsides of the new Indian market are what comes along with any developing market. For one the lack of regulation can still be an issue, real estate can be tricky and skewed in some cases and financing can be difficult. But if you can deal with those, this market has loads of potential.
There are a lot of companies in the services sector that are actively looking at India to set up their franchise operations today and will continue to be in the future. The growing popularity of the franchise model among Indian business men is evident in and around the country of India. The same issues that are taking place in the U.S. are also happening in India today. More people are losing their jobs, the big companies are downsizing with the slowing the economy in many sectors. This puts more people in the franchise market who would otherwise be working in a management position at a salary.
A franchise is a way for someone to earn a living without the risk of starting their own business. The other side of the equation is that as is the case in the U.S., investors are becoming more and more wary of putting their money into the stock market today. Earning the kinds of returns that were possible 2-5 years ago are extremely difficult today. This prompts more and more Indian business people to invest in themselves through a franchise model. Overall, the Indian franchise market represents one of the largest franchise opportunities in the world today.
Franchise organizations with applicable concepts and good planning will absolutely take India into account when planning their franchise system expansion for the coming years.
Christopher J. Conner
Vice President
Francorp, Inc.
708-481-2900
http://www.francorp.com

Children's Orchard Franchise

2009-02-22T00:29:00.000-08:00

Francorp developed the original franchise program for Children's Orchard franchising systems. The Franchise company is the industry leader in children's resale clothing. They currently have almost 100 locations and continue to define their industry. Here are the details on the company and background on the company.
Children's Orchard
900 Victor's Way, # 200
Ann Arbor, MI 48108 800 #:(800) 999-5437Tel:(734) 994-9199 + 222Fax:(734) 994-9323E-Mail:campaign364@mail.emaximation.comWebsite:www.childorch.comContact: Ms. Lisa Morgan, Franchise Development DirectorBusiness Description:
Upscale children's retail/resale stores, featuring clothing, toys, furniture, equipment, books and parenting products. We buy top-brand items from area families by appointment, and re-sell in boutique-style stores, along with top-quality new children's items from nearly 200 suppliers. These are large volume stores selling thousands of items per week.

Franchisor Background
Year Established: 1980
Franchising Since: 1985Operating Units:Franchised Units:84 98.8%Company-Owned Units:1 1.2% Total Operating Units:85 100.0% Geographic Distribution:U.S.: 85 100% North America:States/Provinces with the largest number of operating units:Density
Units1. Michigan 62. Massachusetts 143. California 18

Registered in Following Registration States: California, Florida, Illinois, Indiana, Maryland, Michigan, Minnesota, New York, Oregon, Virginia, Washington, Wisconsin, District Of Columbia, Alberta Financial Requirements Investment:Minimum Net Worth:$200KCash Investment:$30-50KTotal Investment:$72.5-158KAverage Total Investment:$150K Fees:Initial Franchise Fee:$22.5KAverage Franchise Fee:$22KOn-Going Royalty:5%Average Royalty:5%Advertising Fee:1.0%
Average Number of Employees: 1 Full-time, 3 Part-time

Space Needs (in square footage): 1,200-2,000

Preferred Sites: Storefront, Strip CenterOther Sites: Encourage Conversions? YesEarnings Claims Provided?: NoFranchisee Qualifications Ranked from 1 (unimportant) to 5 (important):
Financial Net Worth:5General Business Experience:3Specific Industry Experience:2Formal Education:4Psychological Profile:2Personal Interview(s):5 Terms of Contract Term of Initial Contract:10 Year(s) Term of Renewal Period:Year(s)Passive Ownership:Allowed, But DiscouragedArea Development Agreements?Yes, for 1 Year(s)Sub-Franchising Contracts?NoFranchisees Allowed to Expand Within Territory?No Support and Training International Franchise Association:YesCanadian Franchise Association:NoFranchisee Association/Member:Yes, MemberSize of Corporate Staff: 15Site Selection Assistance?YesLease Negotiation Assistance?YesFinancial Assistance?Yes, Direct Projected New Units Over Next 12 months: 15U.S.: Yes, All US Except HI, AKCanada:NoOverseas:No

Own your Own Business Seminar

2009-02-19T07:05:00.001-08:00

"Own Your Own Business" SEMINAR
________________________________________________

MARKETCORP in 2009, presents the most powerful, educational Business Opportunity seminar nationwide! FREE ADMISSION to the public, with No Cost to attendees. Check below for schedules, cities, dates, location & time nearest you. There are 16 major cities (TBA), beginning in Atlanta, GA USA. Our Mission is to help people "GO TO WORK DOING WHAT THEY LOVE.......Creating more and more jobs". More on this page................OUR SEMINARS ARE RSVP ONLY. Due to the overwhelming popularity and availability, you will need to register well in advance, to reserve a FREE seat for these events. (REGISTER BELOW AT BOTTOM OF THIS PAGE)MarketCorp and Francorp, the largest Franchise Development Company worldwide, consulting over 10,000 companies, team up to bring you a (2) Hour, 100 Slide Video presentation, highlighting the Advantages and Disadvantages of the three major ways of owning a business: 1. Starting a Business from Scratch. 2. Buying an Existing Business. 3. Buying a Franchise Business. All critical components of running a business are covered, such as advertising, taxes, payroll, licenses, employees, state & local laws, financing, sales, accounting, vendors, market trends, business statistics and much more. This is the most powerful learning tool in the industry! Even people who've been in business for years, learn things they didn't know, from this presentation of material, given by well known experts with years of experience.Buy A Franchise Opportunity in your area and Own Your Own Business!Also, you'll be introduced to several successful Franchise Business Opportunities in the areas of Healthcare, Restaurant, Professional Services, Business Services, Auto Service, Home-Based businesses and more. Take advantage of SPECIAL INCENTIVES AND DISCOUNTS, that are available only during the seminar attendance. These aren't your normal opportunities!Opportunities range from $25k - 2 Million. We require that you have at least 25k in liquid cash and a Net Worth of at least 50k or more, in order to attend the seminar. If you're serious about owning your own successful business, then you'll need cash to get started. Financing may be available for some of the total investment, but in today's business climate, lenders require liquid cash and tangible assets to secure business loans.The caliber of this seminar IS NOT for the occasional tire kicker who doesn't have any money or isn't that serious about owning and running a successful business. Our Franchise Business Opportunities are successful businesses, searching for successful partners who want to grow and expand. These are NOT start-up companies - they have a successful track record.You'll meet Kent Boxberger, President & CEO of MarketCorp, with over 25 years experience in major business expansion, as well as, many other professionals who bring years of experience for your use. Please BE ON TIME, as you won't want to miss this presentation from beginning to end! Doors will close 15 minutes after start time.Don't miss this event! Remember, the seminar event is FREE at No Cost to You, but you MUST RSVP early in advance to get a reserved seat! Otherwise, you will be charged $125 per person, the day of the event, to attend. There are a limited number of seats and when these are filled, unfortunately there are no more reservations available. _________________________________________________

SEMINAR SCHEDULE
(16 Cities TBA)
February 25, 2009
Atlanta, GA, 7:00 p.m. Evening,
Crowne Plaza Hotel - Ravinia
4355 Ashford Dunwoody Rd., Atlanta, GA 30346
Gardenia Room
888-444-0401

Francorp Client Success in 2009

2009-02-15T18:01:00.003-08:00

Francorp Client Success in 2009.

Francorp Clients continue with great success through difficult economic times! Recently in the past months Entreprenuer has again released the coveted Franchise 500 list, which is a documented list of the fastest growing 500 franchise systems in the U.S. Each year companies and professionals in the franchise industry wait anxciously to see who has made the list, which industries are growing quickly and how all the top franchise companies are doing currently.

Francorp is acknowledged as the industry leader in franchise development and consulting work in launching and developing new and existing franchise concepts and organizations. Francorp has been in business for over 33 years with almost 20 offices around the world. Clients have included McDonald's, Kentucky Fried Chicken, Auntie Anne's, Omni Hotels, Jimmy Johns, 800-Flowers and many others. This year on the Franchise 500 list, Francorp has 112 clients with whom the firm has worked with at some point, or continues to work with.

112 of the top 500 fastest growing franchise systems have worked with Francorp Consulting.

Francorp works with companies of all sizes and years in the franchise business. Here are some of Francorp's more recent clients who are experienceing success right now in 2009. These are franchise systems that will in the years to come gain more and more exposure, but for right now are just getting a foothold in the market.

Patrice and Associates, www.PatriceandAssociates.com - 3 franchises sold in 2009 Hot Box Pizza, www.gethotboxpizza.com – first franchise soldPlay Party, www.playparty.net – first franchiseAdvanced Maintenance, www.advancedmaint.com – 7th locationSofi’s Crepes, www.sofiscrepes.com – 3rd location -1st franchise in 2009Al’s Beef and Nancy’s Pizza, www.alsbeef.com - 6 Franchises sold in 2009

For more information on other great franchise concepts and on how to franchise a business, visit Francorp's corporate site, www.francorp.com.

Good Blog to Check Out

2009-01-27T09:00:00.000-08:00

Here is a good blog to look over. One of Francorp's clients, Automatic Car Credit is featured here talking about his experience with Francorp and expanding his business through franchising.

http://truecarsvideo.blogspot.com/2009/01/how-can-i-expand-my-business.html

For more interviews and discussions with franchise companies, visit www.francorp.com.

Don Boroian

2009-01-22T06:28:00.001-08:00

In November, Francorp's Chairman, Don Boroian, did a presentation on the economy and its effect on franchising. Here is the transcript from that presentation and what was said about how franchising would be affected by our current economic downturn.

Hi, I am Don Boroian, Chairman of Francorp. I’d like to talk to you today about a couple of things that are very important to us as we meet this challenging economy right now that is raising havoc with a lot of the financial markets. It will definitely have an effect on franchising as well. However, contrary to what you might think, it is going to have a positive effect. For example, the biggest growth of franchising has occurred during these downturns in the economy. And we are going to look at it in two ways. First of all, why it makes sense, for you as a franchisor to expand during this particular time. And secondly, why you need to change your message to prospective franchise buyers to meet the economic perceptions that people have about whether or not it is a good time for them to buy a franchise.

First of all, as a franchisor, there’s a lot of uncertainty in the market. Many companies, right now, as they hear all of the economic woes and credit issues and so on are pulling in their horns. They’re not expanding, particularly companies who are looking to expand with borrowed money or looking for investors to open operating units. First of all, we all know that investors don’t invest in companies to open ten stores. The return on investment to venture capitalists is not sufficient to justify that kind of investment. They don’t want to be in a situation where their money is tied up for three or four years before they begin to turn a profit. By the time you open operating units and put managers in them and the amount of return on invested capital at the unit level, which generally, is about fifteen percent, has to be split between the investor and you. It’s just not a sufficient amount of money. In addition, during times like this, investors are investing their money in distressed merchandise. Depleted value of stocks are a bargain for investors. And the money from the venture capital people is not going into start ups or development into relatively new companies. However, there’s a silver lining to all of this. And that is, that as a franchisor, your ability to move out into the marketplace is going to be enhanced by the availability of opportunity for you. For example, if you are in retailing or in restaurants or any business that needs to go into a shopping center or into inline stores, there are going to be more vacancies in areas now that you might not be able to get into when times are good and business is booming. Those stores were already filled. Right now, some of those stores will become available. Even though you may not have the capital to go into those stores personally, this is where franchisees come in. And while we hear all the talk about credit and difficulty in getting credit, remember, we’re dealing with a different buyer. For example, if you have a retail store or if you have a restaurant, you need hundreds of customers to come into your store, every day, every week.

But in franchising, we don’t have to sell hundreds of franchises every week or every day or every month. We only need to sell one or two, certainly, in a time like this, if you’re a new emerging franchisor. And the people that you’re going to be selling franchises to are more abundant now in quality. These are people that are being laid off, downsized, reengineered in companies that are laying off people or are going out of business. And these are the people that have been working in these companies for a number of years. They have good credit. They have a high credit score. They have equity in their homes; that can get refinanced at their local bank because they have longevity in their community and they are very good credit risks. In addition, these are people that have excellent job skills. Many of them are middle managers. These are people that always really would’ve liked to own their own business; were afraid to leave the job and risk their fortunes on starting a business. But now that, that decision has been made for them, they’re on the market. And many of these people have gone to job interviews only to find that companies in their same industry, that have just laid them off, are also laying off people. That’s when we get their interest in buying a franchise.

So that from your standpoint, as a franchisor, there are going to be a lot of opportunities because your competitors that are not franchising, are not going to be occupying more stores, borrowing money, opening more branches, opening more markets for their businesses. A good case in point right now is Starbucks. They’re closing 700 of their stores. Now for Starbucks, to put a manager in an outlet and to make the entire investment in the store and to be able to make a profit over and above the manager’s salary, is quite different than for a franchisee who is to buy a franchise and go into a business and work 60 hours a week. In many cases just making their salary, without even a profit over and above that, meets their needs. They just want to own their own business, be their own boss, be the captain of their own ship, master of their own destiny. And so many of these kinds of situations or companies that have corporate owned locations; those locations are going to be available. In retailing, in the food service industry, in anything that occupies a store, where someone has already done the leasehold improvements, in the restaurant business they have the walk in coolers, freezers, 3-compartment sinks, and grills and so on. And many of the landlords are bending over backwards giving free rents to get tenants in there to occupy these spaces. And in the service business as well, many of your competitors, those of you in service businesses; these companies are going to be cutting back on their expansion because it takes capital and not only just the start up capital but the burn rate. When we sell a franchise, a franchisee doesn’t expect to make money for the first two years. If they just barely take out a salary initially, to get the business going, that’s pretty much expected. They don’t expect to walk in on day one to be turning a salary and a profit.

But companies today can’t afford to do that if they’re borrowing a lot of money at their banks because, first of all, the bank financing isn’t available to that extent. And certainly, as the credit markets and standards tighten, it makes it more difficult for companies to expand with company owned units, where typically it takes two years to get to a breakeven point. And so those of us that are franchising our businesses have a great opportunity here because our competition is pulling in their horns.

You have three choices right now in this current challenging market. Number one, pulling your horns, hunker down, climb in a fox hole, wait until the storm blows over. If you do that, you’re going to miss a lot of opportunities. But companies that need capital in order to expand their own company owned units are going to have to do that because they don’t have the available capital.

A second strategy is to do what you’re doing right now. Just keep on going and keep on your current expansion strategy. But again, companies that are doing this with their own company units are inhibited by the inability to get capital and by their inability to move out into other markets and support these kinds of expansions.

A third option and this is an option great for franchisors, because this is an opportunity to look around and capture markets that are being abandoned or not expanded into by your competitors. And by franchising, you’re allowing yourself to go into these markets with the capital resources and the human resources of others. So from your standpoint, as a franchisor, this is the time to move out. And as we talk to prospective franchisors whether it’s through our regional director program, whether it’s through the people who contact us, whether it’s the seminars that we do, or the advertising that we do, and we talk to companies who are considering franchising. And looking at this as an optional strategy, we’re quick to point out to them that now is the time to expand your business into a market that’s weakened.

The time to attack the fort is when the walls are crumbling. And the walls in many of these companies today, which were well fortified, are crumbling because they are reliant totally upon bank financing that isn’t going to be there to the extent it has been in the past. And as franchising affords you the opportunity to expand, it does so by you finding those one or two or three people each month who do have good credit, high credit scores, who are looking to own their own business, who will make that investment, who will be the human resource solution for you as well as a capital solution, as they invest in buying the land, building the business or developing their markets. And it gives you the opportunity to move into a market that is weakened. This is the time. The lions in the Serengeti always attack the weakest of the prey. And this is the time for us to move into the marketplace by franchising into these markets while the companies that are reliant totally on expansion capital in either internally generated, borrowing money, bringing in investors or through other means. And we have an added opportunity here to raise funds through the investment of individuals. And we don’t have to get 300 of them a month or a hundred a day.

We only need to get 2 or 3 or 4 people to buy a franchise each month. These are people with good credit. These are people with equity. These are people with 401(k)s. These are people with savings. These are people with family and friends that will help them get started. So, take advantage of this opportunity now. And from the franchise buyer’s point of view, let’s take a look also at why we need to adjust our message. In the past our message was be your own boss, be master of your own destiny, captain of your own ship. Now is the time to get into this expanding world of whatever your concept is. But that message is changing now because now people have a perception that this may not be a good time to go into their own business. Because you know already how to run that business, they’re getting a jump start. And so this is an opportune time for you to look over the marketplace at a much better qualified group of people, who are desperately seeking either a job, which is very difficult to replace, similar to the one they’ve had or to start their own business. And because these are not people that are high risk, they’re not as likely to start their own business from scratch because they know the rate of business failures is about 95 percent of all new businesses that start. According to the Department of Commerce 95 businesses, 95 percent of all start ups from scratch fail within the first 5 years. And so with a franchise, the odds are in their favor and these are people who are more conservative, who are comfortable following the plan. And now that decision has been made for them, that they’re out in the marketplace without a job, they’re taking a look at you, as a franchisor, and what you offer. So what we can tell the prospective buyers today is that we have a system, we have it worked out. We have a complete business model. We have the opportunity for you to learn. We will teach you everything you need to learn. You don’t have to know anything about our business. We’ll teach you, we’ll help you. There are available stores now. There are landlords that are giving free rent and doing leasehold improvements and tenant improvement allowances.

There are competitors that are on the ropes, some of them going under. Now is the time to buy a franchise, to get yourself established, to get yourself started with our assistance as franchisors helping you. Now is the time. So don’t hunker down, don’t crawl in the fox hole. Now is the time to move out. Take advantage of the weakened economy, the weakened market, your weakened competitors. Sell these franchises and help people get started. And show the prospective buyer why now is a good time for them to capitalize on this opportunity that this challenging economy has presented.

Don Boroian
Chairman
Francorp, Inc.
www.francorp.com

How to Effectively Work a Franchise Tradeshow

2009-01-13T15:29:00.000-08:00

How to Effectively Work a Franchise Tradeshow
By: Christopher James Conner

Franchising is a fantastic way to grow a business. Many companies have utilized franchising as a way to grow their businesses across the United States and around the world. Hundreds and in some cases thousands of units have been opened in very short time periods by many different franchise brands. The basic premise, is that one company who has a good business model and understanding of how to run their type of business can teach other business owners how to be successful doing the same thing. In return the ones who learn from the credible business owners pay a franchise fee and royalty for that knowledge and training. It really can be an amazing thing when franchising successfully builds “win-win” relationships between so many different parties.
When a company decides to offer franchises of its business model, they begin to look for potential franchisees who will then open locations of their concept. It is with that principal that companies use tradeshows as a potential avenue for meeting new franchise buyers.
A Franchise sale is unique and different from most other sales. It is the formation of a long term relationship between two business parties. Unlike in the sale of a good or a short-term service, this transaction has a lasting relationship that in many franchise contracts extends to twenty years or longer. When a franchise company exhibits at a franchise tradeshow to meet new buyers they are in the first stages of forming a long partnership with those people. With that in mind the tradeshow takes on a new light. This decision has enormous consequences for both sides of the transaction. The buyers at a franchise tradeshow analyze everything about the franchisors and are carefully evaluating everything about the company. This is a very big decision for most franchise investors and they will be extremely cautious about who they get into business with. The Franchisors exhibiting at franchise shows must have their best presentation ready to go and be totally on top of their game in order to impress potential buyers.
This starts first with the booth. At any tradeshow the booth is an extension of a company’s office and home. It represents to the people at that tradeshow what and who that company is. Every piece of the booth and messaging displayed needs to be carefully and appropriately structured. There are many companies that do nothing but booth design and set up, I would recommend exploring their services. Because of the brevity inherent in a decision to invest in a franchise, the booth must look and be set up properly, it should represent a company extremely well. The best companies in the world at doing this are the commercial real estate organizations at the ICSC in Las Vegas each year. Their booths literally look like permanent office buildings they have constructed on the trade show floor. Booths to this extent can run in the hundreds of thousands of dollars and are not practical for most purposes, but it is critical to have a professional and well organized booth at a franchise tradeshow. It is also extremely important to understand how your booth and the materials will actually get TO and FROM the show. If pieces are missing when you go to set up your booth, it can ruin the structure and overall presentation.
The most critical aspect to a successful tradeshow is the Staffing. There is an old saying that describes the uselessness of an extremely expensive booth with all the bells and whistles and no one to staff the booth that cares enough to engage the prospects. Franchise buyers are wary, this is a big decision for them and they are very careful in their evaluation. That being said, most buyers do not know what they want to invest in. They come to franchise shows with the understanding that they could investigate the options and look around to meet potential franchisors. Very rarely does a buyer come to a show with an express intent to buy or meet with one particular franchise company. Keeping that in mind, it is absolutely essential that a franchise tradeshow booth be manned by aggressive and positive staff. The booth very quickly becomes an afterthought once a prospect is engaged. Then the attention is shifted to the person. Everyone at the booth should look professional, well dressed, clean shaven, positive and excited about what they have to offer. If the people at the booth are not excited about the franchise offering, why should the buyers be?
The key to a successful tradeshow for a franchise company is to leave with LEADS. Very rarely does a tradeshow attendee come to a show and buy a franchise there at the exhibition. In most cases they meet the franchisor and begin the information gathering process from that point, the franchise agreement and relationship begins in several weeks or months after continued follow up and interaction. As a result, the focus of a franchise tradeshow for the team and staff must be to generate leads. Once a prospect has been engaged and their information has been gathered, it is time to move on! Find the next potential buyer, the tradeshow floor is not a place for long conversations. It is short introductions where enough value is built to set up the next call. Good franchise tradeshow staffs will not get caught talking with vendors or unqualified prospects. They will be on their feet the entire show and will not eat or drink in the booth. You just never know when that next good buyer will walk around the corner, and if your booth staff is drinking smoothies or eating ice cream at the time, you just might miss out on a great opportunity.
After the smoke clears and the tradeshow activities come to an end, it is not time to rest. It is time for follow up. An amazing percentage of tradeshow meetings at franchise exhibitions are never followed up on. It is a travesty to spend money on a tradeshow, put in the hard hours, walk away with sore backs and knees and not give the follow up the attention and commitment it deserves. The leads that you meet at a franchise tradeshow should be followed up with the night after the meetings have happened. This may seem aggressive to some, but you are not the only company or person that the attendee met for the first time that day. It will be a very short time before they forget you even exist. The follow up should be continued until there is a substantive conversation. Ideally, a franchise company will arrange a follow up meeting, either at the location or in the form of a seminar or workshop about their franchise. These meetings are a great way to continue the franchisee’s buying process and information gathering.
Overall, franchise tradeshows are wonderful ways for buyers to learn more about franchises and meet firsthand with the owners and leaders of franchise companies. They are also extremely effective ways for franchisors to market their franchise offering and meet quality potential buyers for their franchise. If the show is managed correctly and the preceding points are taken into account, tradeshows can be the beginning of many wonderful franchise relationships!

Francorp Client - Amazing Spaces

2009-01-12T18:30:00.000-08:00

Amazing Spaces Storage Centers Expands and Restructures for 2009 Despite a Down Economy

Amazing Spaces, a leading provider of upscale self storage solutions, began 2009 with several newly developed positions, including Director of Operations, despite the struggling economy.
On January 5, the company welcomed Mike Gately as its new Director of Operations. Mike will be in charge of overseeing all property management, preparing budgets, reviewing property expenses and performing numerous other duties. In his former position at Hendry Investments, Inc., located in San Antonio, Mike served as Vice President of Property Management. He joins Amazing Spaces with over 25 years of property management experience.
The company has also named Nathan Curtess as its new head of Franchise Sales and Development. Nathan has been with Amazing Spaces for five years and previously held the position of Property Manager. The company began offering franchise opportunities in late 2008 with a higher than predicted response and expects to close on several franchise agreements within the first six months of 2009.
In addition, Doug Gardow, who served as Amazing Spaces' Area Manager for the past nine years, has been appointed the company's new Director of IT Operations. Jennifer Byrne will take the position of Executive Office Administrator.
Scott Tautenhan, who co-founded Amazing Spaces with his wife Kathy, is excited about the direction the company is headed. "We are planning to expand by adding two properties in 2009, and franchising companies typically grow exponentially both during and after a down economy," he said. "So the future is looking bright for Amazing Spaces!"
Amazing Spaces aproached Francorp two years ago to assist in a full development franchise program. TheHouston-based business is a leading provider of storage services for discriminating individuals and businesses. Its award winning storage properties offer solutions for self-storage, RV and boat storage, wine storage and more. Amazing Spaces Franchising, LLC also offers franchise opportunities to qualified applicants.

www.francorp.com

Francorp - How to Franchise

2009-01-06T08:01:00.000-08:00

Often times we are asked at Francorp about how franchising works and how a company can franchise their business. We provide valuable insight to our clients and to the businesses we meet with at our seminars and our office on how franchising works. Franchising a company can, on the surface, appear to be relatively simple and easy to get into. However, as you continue to investigate the subject of franchising more, you will soon discover the complexities of it. There are a few steps that I always recommend a business looking to franchise take:

1. Attend a Franchise Seminar

2. Meet for a Franchise Consultation

3. Read "Franchising Your Business," by Don Boroian and Patrick Callaway

4. Take the Franchise Quiz to see if you are franchiseable5. Call 800-FRANCHISE and ask to speak with a franchise analyst for a free initial phone consultation.

What will 2009 bring for Franchising?

2009-01-03T11:47:00.000-08:00

What will the new year bring for franchise growth?
Talk about getting started on the wrong foot! Could everyone in the United States be in a more cautious and precarious situation then right now in the days soon after New Years 2009? Most people are still asking, "What just hit us?" as they try to collect themselves both financially and emotionally from a devastating 2008 where over 3 trillion dollars of wealth was lost throughout the year. My guess would be that my Holiday was similar to a lot of other professionals in the United States, less presents under the tree and much less extravagant all around.
Francorp works closely with virtually every major franchise system in the U.S. and around the world. The consulting firm continually analyzes the health and future of the franchise market to better serve and implement new franchise companies.
So what does 2009 bode for franchising? How will franchising respond to the inclimate financial times and what is sure to be an interesting road to recovery for the U.S. economy this coming year?
In my opinion, 2009 will be a good year for franchising and for many entrepreneurs getting started in their own franchised businesses. Here are the reasons.
1. There are no corporate jobs out there right now. Almost all of the large corporations in America save a few niche industries have made enormous cutbacks in their labor forces. When college educated professionals were coming out of school into the job market 3 years ago, those $100k jobs were plentiful and offered a very nice alternative for new workers. In the 2009 market finding a good job anywhere will be like winning a car from the monopoly game at McDonald's, not that likely. Franchises offer a valid alternative for those either newly out of school or looking for new opportunities. The absence of work opportunities will make franchise offers that much more attractive.
2. Real Estate Opportunities. Commercial Real Estate prices are at all time lows per square foot in most U.S. markets. When times are good and the Starbucks of the world are dishing out rents at $100 per square foot in Dekalb, Illinois, its impossible for the "little guys" to keep up. Today, if you have been living in a cave and haven't heard, Starbucks is closing 700 locations as well as many other major corporate chains. This leaves ample opportunities for smaller, emerging chains in many different business categories.
3. The Flock Mentality. Most people are pretty depressed right now. People tend to base their decisions on what others around them are doing or saying. Because of this mentality many of the "pretenders" in any given industry will not be participating in 2009 to the extent they would be when the economy is booming. Looking at the investment community, the really successful investors make opposite moves of the general public. During this massive sell-off in stocks during the second half of 2009, Warren Buffett invested over $20 Billion. The franchise companies that make aggressive expansion moves in 2009 will take market share from their competitors and be in extremely good positions when the economy comes out of this slump.
With the increasing numbers of unemployed workers in the United States franchisors have a growing audience and number of potential franchisees. As more and more creative finance tools are uncovered and the federal reserve does everything in its power to loosten the financial markets, the access to capital will begin to come easier. This combination stands to fuel franchise growth at unprecendented levels in 2009 and beyond.
Francorp is the world leader in franchise consulting and development. For more information and analysis on whether a business is suited for franchising, please visit our corporate site where a multitude of free information on franchising and franchise development is available.
Francorp was founded in 1976 and has worked with over 2,000 successful franchise systems from the ground up. Francorp has four separate companies, Francorp Consulting, Francorp Capital, Francorp International and Francorp Connect. The company was founded by Don Boroian who runs and operates Francorp's four companies to this day.
www.francorp.com

Small Firms Get Local Loans

2008-12-30T15:18:00.001-08:00

By ANJALI CORDEIRO
When Amy Loera was looking for a loan to expand her family's Mexican-restaurant business earlier this year, she applied at nine different banks. They all turned her down.
Many of the banks accepted her initial application but simply didn't take things any further, she says. Some raised concerns about the nationwide downturn in the restaurant industry in refusing her request. And some told her that if she had applied a year ago, she would have had no problem.
So Ms. Loera turned to a local lender, Arrowhead Credit Union in San Bernardino, Calif., after a business acquaintance told her the credit union had given loans to other businesses in the community. She was approved for a $643,000 loan this summer.
Ms. Loera, who runs the restaurant chain, Tio's Mexican, with her husband and brother-in-law, believes that since Arrowhead was based in the region, it was easier for her to make a stronger case about the health of her business.
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"They were local," she says. So "they were able to see that because we are a family-owned restaurant and because we had a very good formula to keep our overhead [costs] low and prices reasonable, we are picking up the slack from [fancier restaurants] around us and are not feeling a big hit from the current economic situation."
Small businesses have been having increasing trouble getting loans as the credit markets have seized up. But some, such as Tio's Mexican, are finding that smaller community banks and credit unions are more open to offering financing. For one thing, many smaller lenders are in relatively strong financial shape because they didn't make the types of investments that got many of their larger brethren in trouble.
In addition, private local lenders may be more familiar with a region's business climate, so they are better able to look beyond national trends to base their decisions on the more immediate factors affecting an individual business.
"Often times," says Sandy Baruah, acting administrator of the Small Business Administration, "the larger institutions will rely more heavily on the credit score, whereas sometimes community banks will take a much closer look at the business plan. And especially if they are based in the region or the community, they will make a decision based on their overall comfort with the business plan and presentation."
" But still, credit ratings matter," Mr. Baruah says.
All About Cash Flow
When applying for loans, Ms. Loera says she highlighted the fact that her restaurants are based in so-called bedroom communities like Rancho Cucamonga, Calif. -- where people commute some distance to work, are strapped for time, and look for a place where they can eat an affordable family meal at the end of the day.
She presented a three-inch-thick binder filled with financial statements showing the historical results of the company's existing restaurants as well as the fact that they were debt-free. The Loeras had credit ratings in the 750 range, she says.
She also gave a projection of how much money the new restaurant would bring in over the first 12 months, and a business plan that included details such as the number of employees the new location would have and the intended menu.
Ms. Loera says all that data didn't affect the decision of the banks -- but it did Arrowhead's.
Jon Parks, a vice president at Arrowhead, says the credit union approved Ms. Loera's application because the family showed they already had experience managing restaurants and were able to prove that their existing locations were financially successful.
The fact that the new eating place is being planned as an affordable family restaurant makes it more likely to succeed in the current economic environment, he says.
'Behind the Scenes'
"We are not score-driven in the business-lending side, and choose to look behind the scenes," Mr. Parks says.
He says a strong credit score -- one above 700 -- can be helpful. But the one metric that often trumps all others is cash flow. Since it indicates the amount of cash generated and used by a business over a certain time frame, it can be a key indicator of a borrower's ability to pay back the loan.
Lenders also try to gauge how a small business will do going forward. Heath Chapman, vice president, commercial banking at Morrill & Janes Bank in Merriam, Kan., which is still lending to small businesses, says companies increase their chances of getting a loan if they give financial forecasts that look realistic.
He suggests that owners include a best- and worst-case scenario for their revenue projects and for forecasts on how they will repay the loan.
For a banker, "having all those questions already answered helps," he says.
Case by Case
Certain industries that have been particularly hard hit by the weakening economy may face added pressure to prove that their earnings are strong enough to withstand the downturn. But institutions that are still lending to small businesses tend to take each application on a case by case basis.
"Those industries that have been hit the worst -- construction, auto dealerships -- we are going to look at with a logical eye and understand what we are up against the next 12 to 18 months," in terms of the outlook for the overall industry, says Mr. Parks.
"It doesn't mean we are not going to lend to them if the numbers dictate and everything makes sense," Mr. Parks says.
He believes there could be pockets or individual businesses that continue to do well even within such sectors because they have some kind of a niche offering.
Some community lenders aren't completely dismissing even those businesses that face some financial hiccups. Mr. Chapman says he is asking small-business clients to come to him as soon as possible with financial problems or difficulty funding losses.
He says he is willing to consider lending to small businesses that face some difficulties if they have a history of overcoming problems in the past.
Write to Anjali Cordeiro at anjali.cordeiro@dowjones.com

MARKETCORP and Francorp invite Franchisors to sell more Franchises through the “Own Your Own Business” Seminars, beginning in Atlanta, GA

2008-12-29T11:24:00.000-08:00

MARKETCORP and Francorp invite Franchisors to sell more Franchises through the “Own Your Own Business” Seminars, beginning in Atlanta, GA

MarketCorp International, Inc. is teaming up with Francorp, the world’s largest Franchise Development Company, to assist Franchise companies in selling more franchise locations in the marketplace. Franchisors can now become part of the “Own Your Own” Business Seminar Program, making themselves available for increased sales to potential buyers, who want to own their own business.

The first seminar will be held in Atlanta, GA and is Free to the public, with no cost to the attendees.The “Own Your Own” Business Seminar is a (2) hour, 100 slide presentation, highlighting the advantages and disadvantages of the three major ways of owning a business:
1. Starting a business from scratch, 2.Buying an existing business, 3. Buying a franchise. All critical components of running a business are covered, such as advertising, taxes, licenses, employees, state & local laws, financing, sales, accounting, vendors, market trends, business statistics and much more.

This is the most powerful teaching tool in the industry. The event is held in a very prominent, professional hotel meeting room and heavily advertised in local newspapers, internet, direct email and by word of mouth.If you are a participating franchisor in the seminar, your company will be highlighted and discussed in detail, at the end of the slide presentation, with your accompanying marketing material handouts. MarketCorp will then set up personal interviews with each attendee, to discuss their franchise interests, usually held that evening and the next day. The ultimate goal of the seminar, is to match qualified buyers with franchisors, in a meeting to be held at the franchisors corporate office. Ultimately, MarketCorp will assist in closing the sale and getting a Franchise Agreement signed and a check for Franchise Fees. In addition, all participating franchisors will receive a list of the contact information for all attendees.We are limiting the number of franchisor companies to be represented in the seminar, to a total of (8). Our goal is to have (8) non-competing franchisors, in different offerings. Our long range goal is to take this seminar to several major cities throughout the U.S. in 2009.

It is our belief, that in this economy, now more than ever before, there are more people available who want and need to own their own business. The jobs they once had, are no longer available. Small business franchises are the answer and face-to-face presentations through education, will produce favorable results.

If you are interested in being a participating franchisor, please contact Kent Boxberger, President & CEO of MarketCorp International, Inc. on his direct line at: 678.462.8646 and visit their website at: http://www.marketcorp.net/

Time is of the essence, as we’re planning the first seminar in Atlanta, GA in late February 2009.

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Brian Scudamore, Founder 1-800 Got Junk

2008-12-24T21:05:00.000-08:00

December 2008 Franchising World It is critical to build a foundation of strong systems and support that will set franchisees up to be profitable. By Brian Scudamore

Successful franchisors have found the last few years to be very rewarding. A quick look at a few industry statistics shows just how significant franchising is to our economy.

Research released earlier this year by the International Franchise Association found that in the United States alone:
• Small franchised businesses generated more jobs between 2001 and 2005 than several of the nation’s major economic sectors.
• During that period, franchising expanded by over 18 percent, and its direct economic output increased by more than 40 percent.
• The franchise industry in 2005 included more than 900,000 establishments generating 4.4 percent of the U.S. private-sector economy.

Yet despite the booming nature of the industry, many established franchisors have more sobering thoughts in their minds: the economic turmoil that has defined the last half of 2008. Not exactly a fortuitous environment for a franchisor poised to cross the threshold of 100 units. So what does a franchisor do to stay on target for a new level of growth, particularly in an economic downturn? There are five common mistakes franchisors planning to grow beyond 100 units must avoid. However, given the current economic conditions, here’s a colossal sixth mistake that is critical to address today: Letting the economy hold you back

Times of economic turmoil are actually some of the best during which to focus on growth. Maintaining the success and profitability of existing franchisees becomes more vital than ever before, which means concentrating on strengths–the systems that helped build the company from infancy to establishment. What better example for a potential franchisee than franchisors that showcase their top performers? Identifying and cultivating best practices will “wow” the right candidates and help you award more franchises, despite the economic picture. In addition, the top achievers in any franchise system become role models for those franchisees who aren’t yet performing at their peak. Focusing on alignment and best-practice sharing will strengthen the entire system and help boost the results of under-achievers. The spinoff benefit is that this is a very attractive and efficient franchise system for a prospective franchisee. Now here are the five common mistakes franchisors seeking to grow beyond 100 units should avoid. Lacking vision

A vision is a compelling, crystal-clear picture of the franchise in the future. It defines every element of an organization’s success and guides franchisees and employees toward common, realistic goals. Vision is the most important leadership tool a franchisor can master because it charts a clear path to successful growth. While many entrepreneurs keep their vision in their heads, either to prevent someone from copying it or because they don’t have enough faith to share it, some entrepreneurs don’t have a vision at all. Lacking vision is a grave mistake, and a surprisingly common one. Even an out-of-this-world business concept can only take a franchisor that has a weak vision, or worse, no vision at all, so far, and certainly not beyond 100 units. Great ideas are really only as good as the vision that guides them. So what does a solid vision look like for a successful franchise looking to grow beyond 100 units? Check your vision against these four criteria:

• Vision must be attainable: Franchisees will invest their livelihood in a solid franchise business with proven systems, but not if the vision for the company is unclear or unrealistic. Employees are the same. They will buy into a great vision, but without a steady guideline of where they’re going, they’ll drift.
• Vision must be well-articulated: A well-articulated vision is one that includes all facets of a business. It is more than ”who will do what by when?” It speaks to the company’s core beliefs and values. It paints a broad and colorful picture about how the business looks, acts and feels at various points in the future.
• Vision must be shared with passion: A vision must be shared with passion, and to as many people as possible: Current and prospective corporate employees, current and prospective franchisees, the media, friends, family, neighbors and so on. Why? The passion with which true vision is imparted will propel the franchise toward achieving it and attract constant interest from others.
• Vision must be revised often: Franchisors do not want to run the risk of becoming complacent, growing too fast, choosing the wrong people or neglecting important systems. A strong vision, reviewed on a regular basis, will ensure the organization is on the right track. Complacency Many successful franchise entrepreneurs reach a point where they say, “Success has come so easily,” and they believe it will continue to be so. Perhaps a phenomenal business concept has catapulted the organization into “mostwatched” status in the media. Everybody wants a piece of the company. It’s a heady feeling for a franchisor which can lead to a premature sense of security. The belief is that the hard work of building out strong systems, hiring great people, and getting the expansion strategy down on paper has been done. The flywheel has momentum. Franchisees are posting record satisfaction scores. Employees are engaged and motivated. This is a peak moment in the life of a franchise. However, a word of caution: it’s also a pivotal moment. All businesses face unexpected challenges. Now is not the time to become complacent, yet now is often the time when many franchisors do. Now is the time to be hyper-vigilant about every aspect of the business. Complacency can be a deadly mistake for successful franchisors poised to transition beyond 100 units. One of the most common indications that a franchise is leaning toward complacency is expanding internationally without performing adequate due diligence. It is always tempting for any business to answer calls for its service or product in a new international market. Franchises today are expanding internationally at a much faster rate than in the past. The common pitfall is believing what worked here will work as well there. Not so. Even the most common expansion markets such as Australia and the United Kingdom, present different cultures, consumers, market trends, economic climates, labor laws, and business expectations. Franchisors must approach international expansion as though devel oping a new franchise business, albeit utilizing the foundations of a strong franchise model, rather than taking the complacent attitude that success here will easily translate into success there.

Growing too fast
Franchising is widely believed to result in fast and easy growth because it uses other people’s money to build out infrastructure. Franchising requires a proven business model, strong systems and the right people–things that take a lot of time to develop. For many entrepreneurs, particularly those who are impatient by nature or who have fallen into complacency through their success, it’s easy to make the dire mistake of growing too quickly. To ensure the franchise system is on target for healthy, sustainable growth, a franchisor must filter everything through the following two-part question: Is there an appetite in the market that warrants the business growing beyond 100 units and can the existing infrastructure sustain such growth? Franchisors must understand with absolute clarity why expanding beyond 100 units is the right move for the brand and for the franchise system. It is critical to build a foundation of strong systems and support that will set franchisees up to be profitable. Happy, successful franchisees paint a positive picture of the entire system, which will attract new candidates and foster growth when conditions are favorable.

Choosing the wrong people
Failing to hire the right people to grow a franchised business beyond 100 units can be a fatal mistake. Hiring the right people pertains to all areas of a franchise system: the franchisees, the franchise leaders, and all employees. Franchisors must never compromise on the quality of their franchisees. A helpful way to ensure this doesn’t happen is to get used to the concept of awarding, rather than selling franchises. An organization seeking to attain critical mass must avoid bringing on franchisees merely to hit their quota. It is not enough for a candidate to bring a lot of money and a business degree into the interview room. Dig deep to discover if the candidate has the business drive, experience, stamina and passion to go along with their investment and education. Due diligence is significant with franchisees because they are a lot more difficult to exit than the wrong employees are. In the early days of a franchise, enthusiasm may be impetus enough to motivate employees to succeed and grow. Many, including budding leaders, learn the ropes along the way, growing up with the business. But once a franchise has reached a size of close to 100 units, it’s time to shop for the best–the experienced leaders with a track record of building companies of substantial size. Too many entrepreneurs hold back for fear of letting a faithful, hard-working leader go, when the best solution is to allow the leader to thrive in another start-up and make room for the star who can commandeer the franchise to new levels of growth.

Inadequate systems
It is a deadly mistake for franchise organizations to consider significant growth without proven, established systems. Strong systems are the operational building blocks that grow the business. By the time most franchises are planning to expand beyond the 100-unit mark, the time for trial and error of major systems has passed and the era of proven, scalable systems has arrived. On the path to building a business, there are so many valuable lessons. Wellknown professional sales coach, Jack Daly says: “Inspect what you expect.” It’s a simple, catchy phrase that serves as a reminder to always stay on top of company systems. The mistake of complacency often leads to issues with missing systems, but inspecting what you expect ensures those missing systems are caught and tightened in a timely manner. To facilitate growth, successful franchises must have a process to uncover deficiencies. Systematizing the process of inspecting is simple. It involves creating a list of the key, measurable components of the business, then making people accountable for achieving and monitoring them.

If you’re looking to grow beyond 100 units, you’re at a very exciting time in your business. I remember when I awarded the 100th 1-800-GOT-JUNK? franchise. It was a goal I’d had my sights on since the inception of the business and it was a huge achievement for me. Today, 1-800-GOT-JUNK? has more than 275 franchises across North America and Australia, and I have my sights set on 500 units. But all of the common mistakes I outlined here still apply to my business even today. Maintaining the health of the existing system while pursuing expansion can be challenging. However, with laser focus on the foundational pillars of any business: vision, people and systems, the pitfalls can be avoided and the results are very rewarding. Brian Scudamore is founder and CEO of 1-800-GOT-JUNK? He can be reached at bscudamore@1800GOTJUNK.com .

Franchising in a Down Economy

2008-12-19T08:06:00.000-08:00

By Jeff McKinney • jmckinney@enquirer.com • December 19, 2008
Downsized by the mortgage meltdown, Al Cooper suddenly was forced to find a new job.
Cooper, formerly vice president and director of operations at Fidelity Mortgage for five years, lost his job in November 2007 after the subprime debacle led to liquidation of the company. Cooper, a divorced dad with three boys, needed work and to stay here.
He used about $25,000 in savings last month to launch Caring Transitions, a home-based franchise that offers estate sales and other services for senior citizens and their families.
Cooper, 50, said he liked Caring Transitions because its business model was less risky than other companies and offered more potential growth with baby boomers aging.
"I also was concerned I would not be able to find another job in the corporate world due to my age and experience," Cooper said.
Welcome to the franchising world in a sour economy. Cooper joins other former executives from around the country who have decided to become franchisees.
When you buy into a franchise business, you get marketing, advertising and training support you typically do not get with an independent business, said Alisa Harrison, spokeswoman at the International Franchise Association in Washington.
She said a franchised business allows an entrepreneur to take advantage of a proven business model and a proven brand.
"In good times and bad, a franchise allows you to go into business for yourself but not by yourself," Harrison said.
And with a recession-like economy, entrepreneurs say franchises allow you to be your own boss and control your destiny.
In a weak economy, Harrison said, you have a workforce that's been laid off, and many of these people are taking their severance to start up franchises.
But potential franchisees also should be cautious before jumping into business.
Chuck Matthews, executive director of the University of Cincinnati's Center for Entrepreneurship, said one of the cons of buying into a franchise are the initial costs, including the franchise fee, investment cost and royalty payments.
But on the other hand, he said, a franchisor often will provide financial assistance to a qualified franchisee to start the business.
He said potential franchisees also should be careful with such things as restrictions on their sales territory, what items they actually can sell and shared costs tied to marketing support.
"It's critical that you do your homework before starting a franchise, particularly in a weak economy." Matthews said.
Jody Wallace, formerly a stay-at-home mother, and her husband, DeWight, opened a Pump It Up franchise 3½ years ago in West Chester Township.
The business offers a giant, indoor, inflatable playground that offers private parties for children.
The couple invested about $400,000, including franchising rights, equipment and build-out for the business. DeWight still works for a large local company.
Jody said the business allows her to do her part in generating income for the family, while using her event-planning skills to help make kids happy.
She said the franchise allows her to offer services she could not provide with her own business, including an art camp for kids and corporate team building for adults.
"A franchise offers you the support you need in one package."
Also wanting more financial security, Becky Gabbard turned her love for animals into a business. She invested $10,500 to launch a Fetch! Pet Care franchise in October.
The business provides professional at-home pet-sitting, dog-walking and other services.
"It's a very lucrative business and it provides a service people need regardless of the economy," she said.
Harrison said her group represents franchisees ranging in age from 25 to 85, and franchises that range from pet-sitting services to automotive stores like Jiffy Lube.
She said individuals can open a franchise for as low as $20,000 and high as $2 million. Harrison said the figures include upfront costs.
Harrison said the biggest challenge facing potential franchisees now is getting credit and affordable financing.
Author Jim Coen, who has been in the franchising business for 25 years, agreed.
He said the recession could be limiting the number of franchisees because of the credit crunch.
"It's not as easy today to get a deal financed as it was a year or two ago," he said.

Dunkin' Donuts sells out Mobile franchises

2008-12-12T13:54:00.000-08:00

Dunkin’ Donuts announced Wednesday that it signed a development agreement to open 40 restaurants in Mobile and Pensacola, Fla.

In the deal with Gulf Coast Franchise Group LLC, six restaurants will open in Mobile and three in Pensacola in 2009, with the rest opening in the next six years.

Continue to read at:
http://www.bizjournals.com/birmingham/stories/2008/12/08/daily29.html

Howard Shultz Interview

2008-12-12T13:07:00.000-08:00

Interesting interview with Howard Shultz.

http://www.comcast.net/data/fan/html/popup.html?v=955785747

Franchise Brands buys HomeVestors

2008-12-09T14:22:00.000-08:00

Franchise Brands LLC has bought majority ownership of HomeVestors of America Inc., the company behind the "We Buy Ugly Houses" billboards.
Terms of the deal were not disclosed.
Founded in 1989, Dallas-based HomeVestors sold its first franchise in 1996 and has grown to a national franchise that specializes in buying homes that need repair. HomeVestors' network includes more than 230 franchised offices in 35 states. The company said its franchisees sell most of the houses to other investors and first-time home buyers.

Continue to read at:
http://dallas.bizjournals.com/dallas/stories/2008/06/09/daily15.html

Franchise India ties up with Francorp

2008-12-02T06:06:00.001-08:00

Franchise India ties up with US-based Francorp
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New Delhi, Dec 2 (IANS) City-based Franchise India Holdings Ltd Tuesday announced it has entered into a partnership agreement with the global franchise consultant major Francorp Inc of the US to attract more companies to India through the franchise model.
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New Delhi, Dec 2 (IANS) City-based Franchise India Holdings Ltd Tuesday announced it has entered into a partnership agreement with the global franchise consultant major Francorp Inc of the US to attract more companies to India through the franchise model.
Announcing the licensing agreement here, Franchise India president Gaurav Marya said: 'We are in talks with a number of international brands' to bring them to Indian market.
The new partnership company will be called Francorp India and will open four offices in Delhi, Mumbai, Chennai and Chandigarh.
'There are a lot of companies in the services sector that are actively looking at India to set up their franchise operations,' Francorp International president M.F.M. Ramon Vijay said.
Talking about the growing popularity of franchise model among Indian business men, Marya said: 'Earlier people used to park their funds either in the stock markets or buy real estate to get a decent 30 percent return. Now because of the economic slump, these avenues won't get them such high returns and people are now looking at less risky ventures to invest. Franchise is such a business.'

Francorp Clients - Maui PlayCare

2008-12-01T09:52:00.001-08:00

Kid relief
Maui PlayCare offers stress-free child care
By Adam ElrashidiAs published in: Franchise Times - November-December 2008
A Montana transplant to Hawaii hopes that parents and franchisees will say "Aloha!" to her drop-in day care franchise.Hawaii gave the world hula dancing, macadamia nuts and Don Ho. Now you can add stress-free, drop-off childcare to the list, thanks to Bonnie McCarthy's franchise, Maui PlayCare.
A Montana-transplant, McCarthy quit her job in construction safety and office management to become a stay-at-home mom shortly after her last two children were born, but found that she had less time for herself. "It just became a way of life where I didn't even have a minute to even think," says McCarthy.
McCarthy didn't like the idea of leaving her kids with babysitters and didn't want to pay the membership fees and high rates at day-care centers when she only needed an hour or two a day. So in 2002 she came up with the concept of Maui PlayCare - a center where parents can leave their children for an hour or two, or for the full day.
The concept is simple: Maui PlayCare provides parents running to the grocery store or a doctor's appointment with a place they can safely leave their children for a short amount of time. There's no reservations. No membership fees. No unadjusted hourly rates. Maui even provides parents with a to-go pager for an added sense of security.
Bonnie McCarthy's own child care problems led her to create Maui PlayCare in 2002.Maui PlayCare is structured around the "Aloha Spirit" - an attitude akin to "Southern Hospitality" that emphasizes community service, fun and relaxation.
Additionally, Maui provides children with a fun environment they can enjoy at their own pace. Children play in secured-access playrooms that are monitored by attendants. Kids are given healthy snacks, and can participate in activities as they wish.
The company also has a program to help kindergarten-age children transition from being home all day to being in the classroom. Children are left in Maui's care for intermittent periods of time, allowing them to learn that even though their parents are gone, they will be back.
"By the time school comes around and they drop them off, the child is used to it - they know mommy is coming back, it doesn't disrupt the teacher or the classroom," said McCarthy. The franchise's main location cooperates with a local community college to provide tuition assistance for college students with children.
McCarthy began franchising the concept last year after receiving numerous inquiries from tourists who were able to take advantage of her services while on vacation. "I had people from Texas, from Florida, from New York coming to me and saying there's nothing like it (on the mainland)," said McCarthy. "I had people asking me, 'Is this a franchise?' 'Do you sell franchises?' - so I started educating myself on franchising, and I decided that this was something I wanted to do."
At a glance
Initial Investment: $137,000-$221,000
Franchise Fee: $40,000
Royalty: 7 percent
Ad Fee: 6 percent local
Units: 1Maui PlayCare has a no-brainer sales pitch to prospective franchisees - each unit comes with its own trip to Hawaii. McCarthy trains new franchisees herself at the company's Maui headquarters.
That's not the only reason Marilyn Alexander, a retired child welfare worker, was interested in the concept. The Oklahoma City franchisee said the concept allowed her to begin working with kids again.
"If I would have had something like this when my kids were growing up, I would have used it - a lot," said Alexander. "Just thinking about going to the supermarket (now), and looking at some of these moms who are so stressed out because they've got three kids hanging off them, wanting this, wanting that; and these moms are just barely making it through."
Currently, Maui PlayCare has two units in development, one in Oklahoma City and another in Scottsdale, Arizona. McCarthy said she plans to have 20 more units signed in 2009, with roughly 10 to 15 open or under construction by the end of that year, plus another 50 deals signed by the end of 2010.

Interview with Francorp Client Jersey Mike's Subs CEO, Peter Cancro

2008-11-30T17:49:00.001-08:00

Here is a great interview with Francorp Client Peter Cancro, CEO of Jersey Mike's Subs. Jersey Mike's recently surpassed 400 units and continues to redefine the sandwich franchise segment.

Having Words Peter Cancro Founder and Chief Executive, Jersey Mike’s Subs
By Dina Berta

Having Words Peter Cancro Founder and Chief Executive, Jersey Mike’s Subs(Nov. 17, 2008) Football has played a major role in the life of Peter Cancro, founder and chief executive of Jersey Mike’s Subs, based in Manasquan, N.J. From Pop Warner leagues to playing for his high school team, the sport and the coaches he encountered taught him valuable lessons about teamwork and leadership—and helped him pursue his entrepreneurial dreams.Cancro started working at Mike’s Sub Shop in the seaside town of Point Pleasant, N.J., when he was 14. Three years later, he bought out the owners. His football coach, who was also a banker, helped him get a loan to finance the deal. Cancro, who was president of the class of 1975 at Point Pleasant High School, was also the only graduate to own his own sub shop. He was an owner at 17, before he could legally use a slicer.After graduating from high school, he married his wife, Linda, and they opened more outlets, changing the name to Jersey Mike’s Subs to stress the chain’s origins along the New Jersey shore. Cancro eventually formed Jersey Mike’s Franchising Systems Inc., and began franchising in earnest. Over the years, he has never forgotten the leadership lessons he learned from football and teaches those concepts to Jersey Mike’s managers and franchisees.It’s pretty amazing that at the age of 17 you bought a restaurant.Looking back on it, I really don’t comprehend it. I started working very early, mowing lawns when I was 10 and 11. It was not that big of a deal to buy when I was 17. I had worked there four years. I did not think of failure at that age. I did not have any worries.FAST FACTSAGE: 51HOMETOWN: Point Pleasant Beach, N.J.EXPERIENCE: Began working in a local sub sandwich shop at age 14 and bought it three years later, before graduating from high school; built Jersey Mike’s Subs to a nearly 400-unit chainPERSONAL: married; four childrenHOBBIES: snow shoeing, running and playing tennisNow you take things slowly, methodically. I sort of leapt back then. Along the way we lose the ability to leap. That’s probably a good thing.Was it your high school football coach who helped you buy the restaurant?No. My Pop Warner coach, Rod Smith. I played for him before high school. I was quarterback of the team, and we won the championship of that league.I always stayed in touch with him, and he came to my [high school] games.When the owner of Mike’s put it up for sale in 1975, I started knocking on doors, trying to raise capital. It was a Sunday night at 9:30 when I came over to his house.He came to our annual meeting in May 2006. It was very emotional. He cried. I cried.Did you play any college ball?I hung up my spikes on Thanksgiving Day my senior year, after winning the championship, but I’ve carried on that [sports] mentality. You are not so much pushing people but pulling them along. Any great coach does not push. You show them the way and invite them in. That’s the way I was coached.Were you ever a coach?I coached my daughter’s soccer team and baseball [team]. The sports involvement is the same with music and activities out of school.When you are a teenager and young, there are certain teachers and coaches that influence you. It’s neat to take that into business—the philosophy of acting as a team, yet celebrating individual victories, mentoring and coaching and giving back and supporting each other.

For more information on franchisising and Francorp Clients, visit http://www.francorp.com/

Francorp Expanding Into India

2008-11-24T11:13:00.000-08:00

PRESS RELEASE

FOR IMMEDIATE RELEASE FOR INFORMATION CONTACT:
Francorp
(800) 372-6244

Francorp Expanding Into India

(Olympia Fields, IL) – Francorp Chairman Don Boroian announced today that Francorp has awarded Franchise India Holdings Limited the Francorp India franchise.

The contract was signed between Don Boroian, Francorp India U.S.A. Representative Atul Bhatara, and President of Franchise India Holdings Limited Guarav Marya.

“Franchise India Holdings Limited has already paved the way with franchise expos, franchise and business publications, and franchise consulting in India,” shares Boroian. “We are honored to have them as part of our team.”

Franchise India Holdings Limited has been Asia’s leading integrated franchise consulting company since 1999, with an authority on franchising, licensing, retailing, real estate, and marketing. With its strategically formed divisions, Franchise India Holdings Limited has created its own niche as the pioneers of the franchise industry and a small business authority in India.

According to Marya, “Francorp India will help boost investor confidence by providing professionally managed franchise consulting and development support, all under a common one-step gateway to facilitate entry into India and vice-versa.”

India is home to over a billion people, with a flourishing class of urban consumers possessing considerable amount of disposable income. With the continued growth of the economy, India has strengthened its claim to be a viable and beneficial destination for a foreign franchisor.

Since its beginning in the early 90s, the franchise industry has grown in leaps and bounds in the Indian sub-continent, and there is still much to explore. Based on the successful growth of many franchise brands in India, the future of franchising in India is highly promising.[1]

This promising future of the Indian franchising industry is backed up by an equally powerful market report that shows statistics of this thriving sector.
According to reports, for the past five years the Indian franchise market has recorded a steady growth of 30 to 35% per annum. Also, the annual turnover of the Indian franchise industry soared to 3.3 billion USD and is projected to soar higher in the coming years.[2] “We are very excited about the opportunity to enter the Indian market at a time when the concept of franchising is experiencing tremendous growth and acceptance,” noted Boroian.

For over 30 years, Francorp has been the leader in the franchise consulting industry. They have assembled a team of experts whose talents are coordinated seamlessly to create customized materials that fit the specific needs of their clients. As an international company, Francorp has the global reach to help clients expand their business, with a local presence to adjust their business to fit each country’s unique culture and laws. Headquartered in Chicago, IL, Francorp has assisted more than 10,000 companies for expansion, and has developed more than 2,000 franchise programs throughout the U.S., Japan, South Africa, Middle East, Central America, Malaysia, Philippines, Argentina, Chile, and Mexico.

For more information, visit http://www.francorp.com/ or call (800) 372-6244.

# # #
[1] Franchiseek, Indian Franchise Statistics and Information. November 17, 2008, available at www.franchiseek.com.
[2] Franchiseek, Indian Franchise Statistics and Information. November 17, 2008, available at www.franchiseek.com.

Franchising Still Moving

2008-11-23T18:39:00.000-08:00

Franchising is still a vibrant business. Francorp clients are 7% up on the year and have had a great year so far. Francorp clients are continuing to find and utilize unique ways to market and sell franchises and continue developing their brands.

www.francorp.com

Francorp Partner MarketCorp to Sponsor Franchise Sales Seminars Across Country

2008-11-23T11:29:00.000-08:00

Contact: Kent Boxberger, President & CEOMarketCorp International, Inc.

4370 Georgetown Square

Atlanta, GA 30338

678.462.8646

http://www.marketcorp.net/

MARKETCORP to sponsor “Own Your Own Business” Franchise Sales Seminars in 8 major cities in 2009

Atlanta, GA, USA – November 20, 2008 – MarketCorp International, Inc. today, announced that it will sponsor a campaign in 8 major cities, to promote the expansion of select franchise companies, through its sales seminar program called, “Own Your Own Business”.

Kent Boxberger, President & CEO of MarketCorp, said, “In the present economy, companies are looking for new and innovative ways to expand their business. Franchise companies rely heavily on the sale of new franchise business locations, in order to continue growth and profitability. Now, more than ever, more and more people are looking to get into business for themselves. After massive layoffs and downsizing, the market is flooded with ex-employees, looking for another job that, in many cases, may not be there. This has fueled the need to work and look for opportunities in self employment. More people have more cash at their disposal, in order to get started with a new career, working for themselves. As a result, people are looking at franchised businesses, as a safe, more secure way to get into business and make it on their own, but with the expertise of being part of a successful business model, such as a franchising.Beginning in February 2009, we’ll be launching our “Own Your Own Business” seminars in the 8 cities of Denver CO, Atlanta GA, Phoenix AZ, Dallas TX, Houston TX, Tampa FL, Miami FL, and Charlotte NC.

We’re selecting 8 different (non-competing) franchise companies to represent (to be selected). These 1/2 day seminars are designed to attract people (attendees) who may be looking to start a business, highlighting the benefits of the participating franchised companies. Attendees will get a thorough education on owning their own business, through a 200 slide presentation, highlighting every major aspect of the advantages and disadvantages of starting a business from scratch, buying an existing business and buying a franchise business, with regard to sales, marketing, employees, taxes, accounting, licenses, financing and all general business knowledge. We believe that our “Own Your Own Business” seminar is the most informative, comprehensive teaching program, available anywhere. There is no charge for attendees at our seminars. Our overall goal, is to educate the public on getting into business for themselves, and the advantages of buying a franchise, as opposed to starting from scratch or buying an existing business. We believe that this type of entrepreneurial spirit, is the future of this country, on into the next decade, and decades to come.” MarketCorp, for the past 12 years, provides sales and management services, to franchise companies, small businesses and Fortune 500 companies. MarketCorp specializes in Franchise Development (through Francorp), Franchise Sales and Operations Management, to companies nationwide.

CONTACT INFORMATION: http://www.marketcorp.net/ http://www.francorp.com/

PHONE: 678.462.8646

###

Carlson Restaurants announces management changes at TGI Friday's

2008-11-19T14:16:00.000-08:00

18th November 2008

By Staff Writer

Carlson Restaurants Worldwide, the parent company of TGI Friday's restaurants, has named John Neitzel as president and COO of TGI Friday's USA, and Ricky Richardson as executive vice president and COO of TGI Friday's International.

Continue to read at:
http://www.food-business-review.com/article_news.asp?guid=31167B79-C4DC-4E02-B9D3-75D7AC13D53F

Great time to Buy.

2008-11-01T16:39:00.000-07:00

More and more people are turning to franchises for their financial well being. There are a great deal of people who have been laid off, put out of work and need an income now. Franchising provides that proven model of business that gives an average person a good probability of success. Francorp clients have seen a great deal of success up to this point this year because of the down turn in our economy. Franchising is one of the truly countercyclical business expansion models.

Don Boroian Leads Francorp into Continued Growth

2008-10-27T05:24:00.000-07:00

Francorp's Chairman, Don Boroian held a meeting three weeks ago with the entire staff of 60 people at Francorp. The meeting was focused on the economy and the direction of our business, country and global economy. Mr. Boroian is extremely well read, he goes through 6 papers every day and reads numerous publications focusing on the economy and economic news.

He voiced some of the concerns that every American is going through right now. Where is the light at the end of the tunnel here? What is tomorrow going to look like? When could I possibly retire with all these swings in the market? Don Boroian has not acheived all of the successes and accolades he has compiled in his 55 years of business by being one of the "flock". Mr. Boroian expressed an extreme displeasure with the media and their focus on the negative aspects of our economy. Mr. Boroian spoke of the negative effects. "When an average consumer hears a news report that talks of doom and gloom, they don't go on that vacation or buy that car they were thinking about getting." It is a vicious cycle, the consumer's behavior is driven by the information they have, right now it is all negative information about the economy.
We see many companies downsizing and shrinking their businesses as a result. We then have less employment and therefore less spending. Mr. Boroian pointed out that of course there are some deep underlying economic issues at hand here, but the fact is that we create our own destiny. If we succomb to the media and the swirl of negative publicity, then we ourselves will fall into that trap.
Don Boroian is a bold person. He throughout his life has made decisions and moves with his business and clients that others would not have the gumption to do. As a result, he is Chairman of the world's largest franchise consulting firm, Francorp. Prior to Francorp Mr. Boroian created an industry in the music business by franchising a chain of music operations. He also did the same in the restaurant industry. It is this temperment for tumultuous times where most business owners are "pulling in their horns" that Don Boroian makes aggressive moves.
It was announced at the Francorp meeting that we would be bringing on some new staff. Could this really be true? That when all the news and publicity is saying that every company in America is faltering and Francorp is hiring new people?
Mr. Boroian mentioned, that now, more than ever, Francorp clients need the resources and attention of Francorp staff. Look at the world's most successful investors, they make their moves when the market is down...not when it's up! Having been in business for almost 33 years, Francorp has seen several recessions and market downturns, this is nothing new to Don Boroian.
Francorp has recently hired Gail Doonan on full time as Regional Director Administrator. Ms. Doonan brings over 30 years of business experience to Francorp and Francorp clients. She has owned her own businesses and successfully managed client projects for some time. Ms. Doonan will be working closely with the Francorp Regional Directors, who are a nationwide network of franchise brokers and franchise sales people.
Francorp also recently brought on Tiffany Franco as a full time person. Ms. Franco works closely with Mr. Christopher J. Conner, Vice President of Francorp Consulting. Ms. Franco brings over 10 years of business experience to the consulting firm.
Francorp will also be adding some additional staff to support and manage client development. Mr. Boroian closed the meeting with Francorp Staff with a final thought. "As long as we can continue to develop successful clients who sell franchises, Francorp will continue to sit at the top of it's industry. Everything we do is to be of the highest quality workmanship and nothing leaves this building without every bit of our effort and attention. At Francorp, the client is king."
http://www.francorp.com/
http://www.francorpconnect.com/

1-800-DRYCLEAN Franchise Launches Contest To GO GREEN and Win FREE GAS

2008-10-23T13:58:00.000-07:00

http://www.franchising.com/pressreleases/9278/

Top prize $500 to winner drawn January 5, 2009
October 22, 2008 // Franchising.com // Ann Arbor, MI., - Shannon Toler, president of 1-800-DryClean Franchise Company, announced details for 15 environmentally responsible customers to win FREE GAS."Now until December 31, 2008, each time customers use our free pick up and delivery drycleaning service, we'll enter their names in a drawing to win free gas," said Toler. "The more entries the better the odds with the winner ringing up $500 at the pump."1-800-DryClean franchise customers save themselves time and money, and help save the environment by car-pooling their clothes--reducing carbon emissions and cutting our dependency on foreign oil."We want to reward our customers for going GREEN. And when they do, we all win," said Toler.
About 1-800-DryClean:
1-800-DryClean is a quality dry-cleaning and laundry pick-up and delivery service franchise, and a member of the Service Brands International family of brands. 1-800-DryClean is the world's largest drycleaning delivery service franchise. It's ranked number one in its category, and a "Top Home-Based Business" among Entrepreneur magazine's Franchise 500Ò. The company has franchised since 2000, and currently has more than 130 franchise units across the United States.

Francorp, Francorp, Francorp

2008-10-13T19:14:00.001-07:00

There are three important things to remember when choosing a company to work with as a franchise consulting group.

One: Make sure that the company has it's resources in house. The internet and evasive marketing can cloud the fact that many franchise consultants do not have an in-house consulting team. Why is this important? Because you don't want to play general contractor on your franchise development project. The business owner and entrepreneur should not have to be tracking people down throughout the development of their program. Francorp has an all in-house team that does not outsource any part of the franchise development. Francorp is the only franchise consulting firm that has an in-house legal staff. This is important because the franchise attorneys should be involved in all aspects of the franchise development process, the business planning, the operations development, the marketing materials, the website design and throughout the planning of the project.

Two: Depth and Resources. What happens if you hire an individual consultant or "Group" of consultants when the consultant working on your project decides to retire, take a vacation or has other work to attend to? The fact is that you need a team of experienced people who have depth and the resources to provide a complete consulting service. Francorp has been in operation for 33 years and worked with thousands of franchisors, the company is not going anywhere and will be here tomorrow. This is important because a new franchise company needs the guidance for years after they are introduced to the market.

Three: Experience and Diversity of Work. When developing a new franchise organization every company is unique and different, it is important that there is no magic pill for creating a successful franchise company. Each business and company has it's own philosophies, culture and business model. The franchise consulting company should have a broad range of clients and work that they have done in order to draw from that experience and impliment the appropriate strategies and structure for their franchise organization. Why is this important? There are many franchise consultants out there who associate themselves with franchise systems they worked on while with other companies, they played a part in the development but did not run the projects or oversee the implimentation of the programs. Even other consultants claim work on franchise projects that in reality they played little or no part in the development of the critical aspects of the franchise program. Francorp brings more experience and a more extensive client list than any other franchise consulting organization. The depth and extent to which Francorp has worked with franchise systems of all kinds is unmatched by anyone in the market.

Go to the Francorp site for more information on the firm, Francorp clients, Francorp processes, Francorp testimonials and Francorp's executive team. www.francorp.com

Francorp also lists many of its clients for marketing and franchise sales purposes on its web portal. Here Francorp clients can generate leads and create a market presence.www.francorpconnect.com

Francorp also has a strong international presence in 13 countries representing over 40 different countries around the world. Francorp is the only franchise consulting firm that has franchised it's own operations internationally.www.francorpinternational.com

Francorp also provides financing for many of its clients franchisees. This is critical in most markets and from a marketing and franchise sales perspective it is very important that Francorp clients can offer this to their franchisees.www.francorpcapital.com

Immigrants as Franchisees

2008-10-13T18:50:00.001-07:00

A key target for a franchise owner is an immigrant. As this article from the Wall Street Journal points out, immigrants tend to be ideally suited for to be a franchise owner. For more information on how to franchise a business or franchise development, go to www.francorp.com.

OCTOBER 13, 2008FranchisingChain ReactionFor many immigrants, owning a franchise is the path to the American dream

By RICHARD GIBSON http://online.wsj.com/article/SB122347728915015415.html?mod=djkeywordLike many immigrants, Lyudmila Khononov turned to a franchise to fulfill her American dream.When she was 10 years old, Mrs. Khononov's family left Odessa, Ukraine, for the U.S. in search of a better life. "There was a lot of discrimination against Jews," she recalls of their exodus 30 years ago.As they began anew in this country, "we had nothing except a dream," Mrs. Khononov says. "But our parents told us we could be anything we wanted to be."After marrying, Mrs. Khononov and her husband, Gregory, ran a diner in Queens, N.Y., for six years. But when it came time to think about expansion in 2001, they borrowed money from a bank and friends and turned to a franchise instead.Mrs. Khononov says she spotted "tremendous growth potential" for the Subway fast-food concept in neighboring Brooklyn, where there were only a handful of the outlets, primarily in gas stations.She says they considered it a fairly easy concept to operate since "you don't have to prepare all the food from scratch" and the franchiser's big marketing campaign would give their business instant recognition. Her husband, also an immigrant, adds that it would have been much harder for them to expand the diner on their own.The decision has paid off. The Khononovs now operate four Subway stores in Brooklyn. And this past summer, Subway, a unit of Doctor's Associates Inc., named Mrs. Khononov its top multistore franchisee in North America, among 12,200 competitors.Built-In HelpMany immigrants look to establish themselves by running their own business. And the chance to start afresh after enduring hardships and adversity in another country often stokes their resolve to succeed. But starting -- and successfully running -- a small business is hard enough without the language and cultural barriers that immigrants can encounter.So, many immigrants turn to a franchise concept. With its proven track record, name recognition and built-in marketing, a franchise can take out a lot of the uncertainty of running a business. And immigrant entrepreneurs often are able to tap their own immigrant community for customers, as well as use the franchise name to broaden that base.A 2006 study by the Ewing Marion Kauffman Foundation of Kansas City, which advocates entrepreneurship, found that immigrants are 30% more likely to become entrepreneurs than are native-born Americans.One reason so many immigrants gravitate toward running their own business may well be because of their experiences with risk, often starting from scratch, says Vivek Wadhwa, an executive in residence at Duke University in Durham, N.C., who has written several papers on immigrants for the foundation and who, after emigrating from India, founded two software companies in the U.S."They've learned what it's like to lose everything," Mr. Wadhwa says. "Once you've done that, you're less afraid of doing it again."Hospitality BusinessThe number of foreign-born franchisees operating in the U.S. businesses isn't known. The International Franchise Association, the sector's leading organization, and major franchisers say they don't keep count.What is known is that some franchised concepts are particularly attractive to immigrants. For example, nearly half of the hotel and motel units in the country -- most of which are franchised -- are run by first- or second-generation East Indians and Pakistanis, according to Fred Schwartz, president of the Asian-American Hotel Owners Association.Anil Chagan is one of them. Raised in South Africa by Indian parents, he immigrated to the U.S. in 1978 at age 24, in part because of the apartheid then embroiling South Africa, where he ran a men's clothing store.Mr. Chagan initially worked at a brother-in-law's motel in East Oakland, Calif. But after two years, he sought to acquire his own. "I couldn't see myself working for somebody else," he says.He purchased a motel in Visalia, Calif., that wasn't affiliated with any of the big national brands. After five years, he converted it to an EconoLodge, a unit of Choice Hotels International Inc., at the chain's invitation. Today, Mr. Chagan's company, Infinite Hospitality, operates two hotel-motels in central California and is building three more. All are franchised, but with various franchisers.Being a franchisee "has been a very significant part of my success," Mr. Chagan says, adding that the affiliation with a national brand helps in obtaining loans and various construction permits.Getting the Message OutOne of the biggest challenges immigrant business owners face -- especially those unfamiliar with local customs -- is understanding what the market wants and then effectively getting their message out."With a franchise," though, says Duke University's Mr. Wadhwa, "that's already done for you."It was RE/MAX International Inc.'s built-in Internet marketing that convinced Shawn Nam, a South Korea native, to sign on with the big real-estate franchiser. When looking up properties on a specific area on the franchiser's Web site, the local franchisee's address pops up. Mr. Nam figured that constructing his own site -- and the marketing to go with it -- would cost him thousands of dollars.Now 39 years old, Mr. Nam immigrated to the U.S. with his parents when he was in high school. "We were looking for a better life," which, he says, included freedom of speech. He worked for his father's janitorial company before enrolling in Rutgers University in New Jersey, dropping out after three years to help support his family. He then set out for a career in real estate.Helping HandThe Situation: Many immigrants look to franchises when opening a business.The Appeal: With its proven track record, name recognition and built-in marketing, a franchise can take out a lot of the uncertainty of running a business.No Guarantees: Cultural and language barriers can still be a challenge.He got a job as an agent at the Prudential Fox & Roach real-estate agency in Voorhees, N.J., and quickly became one the office's leading producers, focusing on the area's large South Korean community, says Paula Goldberg, the agency's vice president. After three years with the Prudential affiliate, Mr. Nam left to start his own agency under the RE/MAX banner, with the Korean community his primary customer target.Mr. Nam had a rough start, though. He believes that several of his agents quit because "they didn't want to work for a Korean. They didn't tell me," he says. "But I can feel it." Today, he counts Koreans, Chinese, Filipinos and East Indians among his agency's employees. Its president is a Palestinian.Making the CutShahin Urias was spurred by the opportunity to do something few women in her native Iran enjoy -- own her own business.Mrs. Urias, who survived bombings and, for a time, lived with her young children in a mud basement-shelter in Tehran during the Iraqi-Iran war in the 1980s, came to the U.S. as a refugee 16 years ago.Her early years here were hardscrabble. She worked in a Luby's cafeteria in Austin, Texas, where, after six months, a cafeteria manager encouraged her to pursue her desire to own a hair salon. At first, Mrs. Urias's poor English kept her out of beauty school, but with her children's help her linguistic skills improved. After 11 months of study, she earned a degree in cosmetology.She started working at a Sports Clips Inc. hair-care franchise in Austin as a part-time stylist. After moving her way up to manager, Mrs. Urias, by then remarried, moved to Tucson, Ariz., and purchased her own Sports Clips franchise -- the first one in that area. While she could have opened an independent shop, Mrs. Urias says she saw advantages in going with a proven concept with a solid market niche and "policies and procedures in place. All the hard work is done."Also, Sports Clips, she says, is a known national brand. So, people who either move to Tucson or are passing through are familiar and comfortable with the brand.Mrs. Urias acknowledges finding bookkeeping and some other aspects of running a business unfamiliar, but says help from Sports Clips is only a phone call away. "Without their support, I would be lost."Although she has had her shop only a few months, Mrs. Urias, 45 years old, has plans to open two more. "I think I'm doing great," she says. "My numbers may not be up there yet, but I'm definitely on the right path."—Mr. Gibson is a writer in Des Moines, Iowa.

Write to Richard Gibson at reports@wsj.com

Francorp Client - American Prosperity Group

2008-10-10T06:45:00.000-07:00

American Prosperity Group, the First Retirement and Estate Planning Franchisor, Exceeds First-Year Franchise Goal
Last update: 11:19 p.m. EDT Oct. 9, 2008
WAYNE, N.J., Oct 09, 2008 (BUSINESS WIRE) -- American Prosperity Group (APG), headquartered in Wayne, NJ, is the first and only retirement and estate planning organization to be franchised. Nine APG franchises are now operating in cities in the eastern United States, two more than the company's 18-month objective. More are planned.
APG is the creation of Mark E. Charnet, a Certified Annuity Specialist. For over 26 years, he has been helping people solve their individual problems of successful retirement and estate planning. APG does this by implementing those parts of a total retirement and estate planning system needed to meet each client's needs.
The APG system has been so successful for over a decade that Mr. Charnet has turned his precepts and product offerings into the first-ever retirement and estate planning franchise. The current franchises are operated by:
-- Bill Romeo, Matthews, NC
-- Dawn Sarnoski, Closter, NJ
-- Shane Couturie, Bryn Mawr, PA
-- Peter Murphy, Santa Fe, NM*
-- Mark Timmick, Ellicott City, MD
-- Mike Linker, Totowa, NJ*
-- Kevin Lynch, Belle Mead, NJ
-- Ari Cohen, Bergenfield, NJ*
-- Holly Sikora, Sicklerville, NJ*
"Now, we are offering additional franchises," Mr. Charnet said. "The franchisees we seek are ideally situated in metro or suburban areas with average or higher senior populations. APG is a relatively low-overhead franchise, with an investment under $100,000. Our present franchisees are well on the way to paying off their franchise investment--and some have already done so within their first few months of operation.
"What we look for in a franchisee is entrepreneurial spirit. Financial know-how is not as important as the ability to be a good presenter, speaking to small and medium-sized groups. Empathy--the talent for caring about peoples' needs--is a must, as is a good sense of organization. This is an excellent opportunity for those with sales experience, but that experience need not include finance."
For franchisees, Mr. Charnet has fine-tuned APG's systems, products and operating procedures developed over his years of experience. Now, others can present his proven system to good effect. "It's all worked-out, step-by-step," he said. "Also, every franchisee receives complete coaching, supervision and assistance from me and my staff. The APG precepts are teachable, portable and repeatable--the keys to any successful franchise."
As for success, Mr. Charnet is a sterling example. During and after college, he built one very successful career in insurance sales, only to lose everything due to the insurance company's dramatic management change. Beginning again with virtually nothing, he developed the proven retirement & estate planning methods taught exclusively by APG. In aiding others in building and retaining income, he has built lasting success for himself.
Those interested in an APG franchise should contact APG at 1-973-831-4424. On the Web: www.apgfranchise.com
*(offices scheduled to open within 90 days)
SOURCE: American Prosperity Group Serpente & Co. Inc.
Joe Serpente, 856-275-6931

Francorp 12 Criteria of Franchisability for a Business

2008-10-06T17:38:00.000-07:00

Don Boroian founded Francorp on the premise of working only with companies in a position to take the next step of expansion and growth through franchising. Francorp closely evaluates every business it meets with to determine whether or not that particular business has the viability needed to be a successful franchise organization. Francorp has put together the 12 steps of franchise criteria that the company uses as a benchmark for determining whether franchising could be a successful growth vehicle.

Francorp 12 Criteria of Franchisability for a Business
While it is impossible to determine the franchisability of a business concept without a significant amount of analysis, Francorp has identified a series of 12 criteria that assess the readiness of a company for franchising and the likelihood that it will achieve success as a franchisor.

1. Credibility – To sell franchises, a company must first be credible in the eyes of its prospective franchisees. Credibility can be reflected in a number of ways: organization size, number of units, years in operation, look of the prototype unit, publicity, consumer awareness of the brand, and strength of management, to name some of the most prominent factors.

2. Differentiation – In addition to credibility, a franchise organization must be adequately differentiated from its franchised competitors. This can come in the form of a differentiated product or service, a reduced investment cost, a unique marketing strategy, or different target markets.

3. Transferability of knowledge – The next criteria of franchisability is the ability to teach a system to others. To franchise, a business must generally be able to thoroughly educate a prospective franchisee in a relatively short period of time. Generally speaking, if a business is so complex that it cannot be taught to a franchisee in three months, a company will have difficulty franchising. Some more complex franchisors offset this handicap by targeting only franchise prospects that are already "educated" in their field (e.g., a medical franchise targeting only doctors).

4. Adaptability – Next, measure how well a concept can be adapted from one market to the next. Some concepts do not adapt well over large geographic areas because of regional variations in consumer tastes or preferences. Others (e.g., dental practices) are constrained by law. Still other concepts work only because they are in a very unique location. And some work because of the unique abilities or talents of the individual behind the concept. Finally, some concepts are only successful based on years of perseverance and relationship building.

5. Refined and successful prototype operations – A refined prototype is necessary to demonstrate that the system is proven, and is generally instrumental in the training of franchisees. The prototype also acts as a testing ground for new products, new services, marketing techniques, merchandising, and operational efficiencies.

6. Documented systems – All successful businesses have systems. But in order to be franchisable, these systems must be documented in a manner that communicates them effectively to franchisees. Generally speaking, a franchisor will need to document its policies, procedures, systems, forms, and business practices in a comprehensive and user-friendly operations manual and/or computer-based training module.

7. Affordability – Affordability merely reflects a prospective franchisee’s ability to pay for the franchise in question. This criterion is as much a reflection of the prospective franchisee as it is of the actual cost of opening a franchise.

8. Return on Investment – A franchised business must, of course, be profitable. But more than that, a franchised business must allow enough profit after a royalty for the franchisees to earn an adequate return on their investment of time and money. Profitability is always relative. It must be measured against investment to provide a meaningful number. In this way, the franchise investment can be measured against other investments of comparable risk that compete for the franchisee’s dollar. Typically, Francorp would like for the franchisee to achieve a ROI of at least 20 percent by the second to third year of operations.

9. Market trends and conditions – While not an indicator of franchisability as much as a general indicator of the success of any business, these trends are key to long-term planning. Is the market growing or consolidating? How will that affect your business in the future? What impact will the Internet have? Will the franchisee’s products and services remain relevant in the years ahead? What are other franchised and non-franchised competitors doing? And how will the competitive environment affect your franchisee’s likelihood of long-term success.

10. Capital – While franchising is a low-cost means of expanding a business, it is not a "no cost" means of expansion. A franchisor needs the capital and resources to implement a franchise program. The resources required to initially implement a franchise program will vary depending on the scope of the expansion plan. If a company is looking to sell one or two franchised units, the necessary legal documentation may be completed at costs as low as $15,000. For franchisors targeting aggressive expansion, however, start-up costs can run $100,000 or more. And once the costs of printing, audits, marketing, and personnel are added to the mix, a franchisor may require a budget of $250,000 or more to reach its expansion goals.

11. Commitment to relationships – Successful franchisors focus on building long-term relationships with their franchisees that are mutually rewarding. Unfortunately, not all franchise organizations understand the link that exists between relationships and profits. Strong franchisee relationships enable the franchisor to sell franchises more effectively, introduce needed changes into the system more easily, and motivate franchisees and their managers to provide a consistent level of products and services to their customers.

12. Strength of management – Finally, the single most important aspect contributing to the success of any franchise program is the strength of its management. Franchise Connect has found that the single most common contributor to the failure of start-up franchisors is understaffing or a lack of experience at the management level. Many times, new franchisors will try to take everything on themselves. In addition to absorbing several new jobs for which the franchisor has little to no time, the franchisor needs to exhibit expertise in fields in which he or she may have little or no experience: franchise marketing, lead handling, franchise sales, ad fund management, training, and multi-unit operations management.

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

Soul De Cuba to Expand Through Franchising

2008-10-06T13:43:00.000-07:00

PRESS RELEASE

(Company Letterhead)

FOR IMMEDIATE RELEASE FOR INFORMATION CONTACT:
Cuba de Soul
(808) 521-0888

Soul de Cuba Cafe to Expand Through Franchising

(Honolulu, HI) – Soul de Cuba Cafe has announced they will be launching an aggressive expansion program through franchising.

Soul de Cuba Cafe brings traditional, authentic Cuban cuisine by embracing Afro Cuban culture and history. “The Soul de Cuba dining experience goes far beyond enjoying a plate of rice, beans and plantains,” explains founder Jesus Puerto. For most, it’s a first time emersion into a dwelling infused with Afro Cuban ambiance. In every Soul de Cuba Cafe, patrons dine to the sounds of Afro Cuban music and Jazz and each restaurant displays Afro Cuban art and memorabilia.Soul de Cuba Cafe has approached Francorp, the world’s leader in franchise consulting, to assist them in the development of their franchise program. “We never planned on franchising, but we investigated,” says Jesus. “After gathering the facts and dispelling the myths we felt it was unquestionably the right thing to do. After all, being one of the first Cuban restaurant franchise programs in the world is a rare lifetime opportunity.”

For more information about Soul de Cuba Cafe, call (808) 521-0888 or visit

www.franchise.souldecuba.com

# # #

Francorp Goes Green - Step by Step

2008-10-06T11:30:00.000-07:00

Employees taking public transportation, carpooling, working at home and staff members operating fuel efficient cars are just some of the things that the Francorp team is doing to be GREEN. Additionally, in our recently renovated office, we installed high efficiency lights, purchased bamboo furniture due to its renewable nature, and used paint free of VOC's.

Interestingly, our greatest impact on the GREEN movement in the world is in the work that we do. We have been helping many companies that are leaders in this organic / green movement with expansion via franchising. This is one small way that we can make a big impact. Through the initiatives of our environmentally responsible clients Francorp is helping them expand via a franchise model of distribution.

Franchising GREEN businessess during this current economic climate is a way to take advantage of the downturn in the economy and do something for mother earth at the same time. This not only has a large impact on the environment, but also allows people that are interested in getting into a business an opportunity to give back while they build a business for themselves and their family.

One of the clients which we are currently working with is Fisher Recycling. Founded by Chris Fisher out of his love for the great outdoors and his interest in preserving what was left, Fisher Recycling is a new age franchsie that will be offering green franchises soon. See http://www.fisherrecycling.com/ for more information.

Francorp has also been working with SynLawn, a company that has created a new way for people and businesses to enjoy green lawns without taxing the water system. Their website is http://www.synlawn.com/. They are the same company that has installed the high end artificial turf in the professional athletic facilities.

In addition, Francorp is working with a number of Solar companies on a franchise distribution strategy. One day, this may help lead us to energy independence.

Francorp Client Plains & Prints to Move into Asian Markets

2008-10-03T07:00:00.001-07:00

Plains & Prints sets sights on Asian market
Plains & Prints was established in November 1994 by Roxanne and Erickson Farillas. Then known as Prints & Plaids, the first boutique opened in Shoppesville, Greenhills. The company’s first products were lace-edged towels and basic polo shirts.
Later on, the brand ventured into women’s apparel, carrying the concept of classic and stylish, which became a hit with teenagers and young professionals.
In 2002, Plains & Prints took on Gretchen Barretto as endorser and this move brought the brand to the national consumer’s consciousness.
Plains & Prints has strengthened its position as a major player in women’s apparel by providing stylish and classic apparel. The present product line includes shoes, handcrafted bags, belts, Bread and Butter (basic tees), Down Under (underwear), Eve (eau d toilette), and Intuitions (body spray).
In terms of brand recall and market share, Plains & Prints ranks among the top 5 local women’s apparel brands. The brand has become synonymous with quality clothing for women with style.
Plains & Prints offers franchise opportunities to entrepreneurs who wish to own and operate their own Plains & Prints boutique. Plains & Prints has been franchising since November 2002 and has franchised outlets in Cebu City, Bacolod, Iloilo, Davao City, Cagayan de Oro, Baguio, Dagupan, Cabanatuan, Marilao and Valenzuela.
Plains & Prints was awarded the Most Promising Filipino Franchise (retail category) in the 2004 Franchise Excellence Awards. The company’s franchise program was developed by Francorp, a leading international franchise consultancy firm with offices in the Philippines, Malaysia, Japan, United States and South America.
The brand now embarks on a bold expansion move that, hopefully, will introduce the Plains & Prints concept to the Asian market.
Leading the expansion plan is the introduction of new collections that highlight the creativity and ingenuity of local fashion designers. Plains & Prints has collaborated with designer Rajo Laurel for its high-end R.A.F. (Rich and Famous) line.
Roxanne explains that the new collection highlights Laurel’s avant-garde approach to fashion, featuring designs that incorporate architecture, romance and luxury.
Another major leap for Plains & Prints is its choice of Thai-British model Paula Taylor as its image model.
“With Paula as the model of our new campaign, we are confident that Plains & Prints will be given more exposure globally and hopefully, discovered as a brand that provides a new twist on classic fashion,” says Roxanne.
Next on the brand’s agenda is opening stores in key cities in Asia, starting with Thailand and Malaysia. The brand has 49 stores in the Philippines, including the newly opened branch at the fifth level of the Shangri-La Plaza Mall. Aside from its Asian expansion, Plains & Prints also wants to open more branches in prime locations in the country.
“Despite stiff competition from international brands, Plains & Prints still emerged as a top local brand which Filipino women prefer,” says Roxanne. “The next step is really to move forward and introduce Filipino fashion to the world. Now that we’ve been given an opportunity to do so, we have big plans to make our mark in the international fashion community.” Dinna Chan Vasquez

www.francorp.com

www.francorpconnect.com

What's Up Dog! To Expand Through Franchising

2008-10-03T05:27:00.000-07:00

What’s Up Dog to Expand Through Franchising
window.google_render_ad();
San Francisco, CA, October 01, 2008 --(PR.com)--

What’s Up Dog has announced they will be launching an aggressive expansion program through franchising.For over five years, What’s Up Dog has offered the hot dog enthusiast a variety of gourmet hot dogs and sausages within the San Francisco area. Their tantalizing menu consists of old carnival favorites like the corn dog, chili cheese nachos and garlic fries. But the eclectic selection of frankfurters and sausages (“Lemon Chicken”, Veggie Tofurky”, “Kielbasa”) has reinvented an American favorite.Americans eat an estimated 20 billion hot dogs a year, with 150 million consumed on Independence Day alone. We love hot dogs so much that the U.S. Chamber of Commerce actually dubbed July as National Hot Dog Month over 50 years ago.It was this shared love for hot dogs that inspired What’s Up Dog owner King Lei to open his own hot dog shop. To ensure that he only offered the best, he visited hundreds of hot dog stores from Los Angeles to New York. And his research resulted in rave reviews. “People love our name and products,” remarks King.This response has led What’s Up Dog to Francorp, the world’s leader in franchise consulting, to assist them in the development of their franchise program.

For more information about What’s Up Dog, call (415) 864-3707

or visit www.whatsupdogs.com

###

Black Belt Investor Begins Franchise Sales

2008-10-02T15:26:00.000-07:00

FOR IMMEDIATE RELEASE

OCTOBER 02, 2008

October 02, 2008 // Franchising.com // Black Belt Investor, a fast-growing coaching program in the area of real estate investing based in Colorado Springs, Colorado, has begun selling franchises to accelerate growth.

Black Belt Investor provides for its clients a "Done For Them" local coaching program in the area of real estate investing. Products and services include basic and advanced on-going training, coaching, mastermind products, and services designed to help the investing student increase his/her wealth through the learning of creative real estate investing. It also allows the franchisee to focus on wholesaling of residential properties, and buying and holding commercial properties for long-term cash flow and equity.

"We have an excellent franchise opportunity…this is not the 'get rich quick in real estate' you see in TV infomercials." said President, Terry Bryan. Black Belt Investor offers 2 types of franchises, an Individual Franchise and a Regional Developer Franchise. Franchisees will benefit from established sources, extensive experience, financing sources and availability, financial services available from affiliate companies, knowledge of the financial services industry, advertising and marketing programs, and an established name. The Black Belt Investor Franchise is designed mainly to be operated out of a home office, a leased or owned facility initially, with the long-term goal of buying a commercial building for their operation within 12-18 months.

Black Belt Investor offers a golden opportunity to bring a "professionalizing revolution" to a huge but fragmented industry.

Please see www.blackbeltinvestor.com or call (719) 955-4280 for additional information.

Francorp Partner - Marketcorp - Franchising, the #1 Way to Expand Your Business

2008-09-30T06:01:00.001-07:00

Business Insight
FRANCHISING – The #1 Way To Expand Your Business
by Kent Boxberger

I was talking with a client of mine the other day, who has 2 company owned locations in the home services business, and he asked me how to grow his business without borrowing lots of money from his bank and hiring more employees. I told him that most businesses who want to grow successfully, have to find extra money and then fund themselves into their growth, to make enough profit to service the debt, which on average takes 2-3 years to turn a profit on the expansion. His next question was, “How can we do it quicker than 2 or 3 years?” The answer is Franchising.
In today’s business climate, companies are looking for more ways to expand their sales and operations. It takes more money and more people. Franchising your business, solves both of those challenges. By franchising your business, you solve the problem of borrowing or using your own money, by partnering with others who invest their money in your business model. Secondly, you solve the personnel problem, because your partner (franchisee) hires and manages the staff to run the business. Picture for a moment, your business having 50 or more locations. Can you fund those locations and employ all those people? In addition, how long do you think it will take to establish those 50 locations? Even if you can, still there’s the risk, red tape and time involved in running the operations successfully. Franchising makes having those 50 locations a much easier task. You don’t fund those locations yourself, nor do you manage and hire the employees, plus the time establishing those 50 locations, is greatly reduced and accomplished with much more ease.
What types of businesses are candidates for Franchising? There are literally thousands of businesses that are franchised and growing. Historically, we think of fast food businesses like McDonald’s, Burger King etc., however, restaurants is only a small percentage of the types of businesses that franchise. Companies such as H&R Block, Ace Hardware, John Deere, Payless Car Rentals, as well as services businesses in the healthcare, medical, advertising, education, high tech, automotive, data processing, financing, real estate, business services and home services arena’s, have also franchised successfully.
To Franchise your business, there are typically only a few requirements to get started. The concept of franchising, is about taking a proven business model that is profitable and duplicating that model successfully. Start-up businesses are not candidates for franchising, due to the fact that there is no financial concept that is proven, nor any history of success. People who buy businesses are looking for a proven system of success that they may invest in, thereby eliminating most of the flaws, risks, mistakes and learning curve that comes with starting a business from scratch. This becomes increasingly important when you consider that according to government statistics, 95% of all start-up businesses in this country fail. This pales in comparison to franchises, which have a 70% record of success.
From an investment standpoint, you have a 70% chance of business success when buying any type of franchise, as opposed to a 5% chance of success, when starting a business on your own from scratch, regardless of how good your idea is, how much money you have or what experience you may bring to the table. Franchises are regulated and have strict requirements by the FTC (Federal Trade Commission). They’re also regulated by most states, which helps protect the Franchisor and Franchisee to bring about the likelihood of more success. Businesses also consider Licensing their business model, as a way of expansion, but in many cases these licensed companies are operating illegally as a franchise. There are specific differences between Licensing and Franchising, that even many good attorneys misinterpret. As with any franchise, still there are risks that accompany any business, no matter what factors are in place – there are failures, as well as great success stories.
The franchise industry concept has been especially strong and growing rapidly, since the 1970’s. The reason, is that it affords people the opportunity to be in business for themselves, run their own ship…………..and have a partnered foundation of associates to work with, who’ve claimed the experience to be successful. If you want to expand your business in the quickest and most economical way possible, then maybe it’s time to consider Franchising. There are hundreds of topics to consider before you do, so be diligent in getting the professional advice required, from franchise experts who have years of experience and success under their belt. Your long term success depends on it.
MarketCorp International, Inc. “The Franchise Experts” ww.MarketCorp.net 678.462.8646 Atlanta, GA USA

McCain's Bailout Gambit

2008-09-28T09:32:00.000-07:00

McCain’s bailout gambit
By Alexander Bolton and Mike Soraghan
Posted: 09/24/08 08:27 PM [ET]
The decision by John McCain to suspend his campaign is giving panicky GOP lawmakers political cover and appeared to inject new life into negotiations on a proposed $700 billion bailout of the financial markets.
At press time, Senate Democrats emerged from a meeting with Treasury Secretary Henry Paulson and reported a conceptual deal they hoped could receive a vote before markets open on Monday.

Majority Whip Dick Durbin (D-Ill.) said a bill could be produced as early as Thursday, with debate and a vote likely over the weekend.
Ideally, Durbin said the Senate would finish the bill before Monday.
Republicans have emerged as the chief obstacle to swift passage of President Bush’s bailout proposal, and House Speaker Nancy Pelosi (D-Calif.) and Minority Leader John Boehner (R-Ohio) held a summit Wednesday with Paulson to try to calm the revolt among lawmakers.
The administration has pulled out all the stops to win support for the package.
President Bush was to address the nation about the bailout on Wednesday night, and lobbying groups with deep ties to Republicans earlier in the day circulated letters urging their allies to support the president’s plan.
Paulson also indicated that the administration was dropping its resistance to limiting the multi-million dollar severance packages offered to executives of firms that take advantage of the bailout.
“The American people are angry about executive compensation,” Paulson said. “We must find a way to address this in the legislation, but we must do so without undermining the program.”
Yet Rep. Tom Cole (Okla.), the chairman of the House Republican campaign committee, declared the only way to save the bailout would be for McCain and Sen. Barack Obama (D-Ill.) to take the lead, and for the Senate to vote before the House.
“These guys are more influential than their votes at this particular time,” Cole said.
He said McCain and Obama were the voices that would matter most to lawmakers wrestling with a difficult vote just weeks before presidential and congressional elections.
“I think they should deal with it first,” Cole said of the Senate. “They have both of the presidential candidates, and it’s hard to see anyone voting for a package if the nominee of their party doesn’t.”
Sen. Bob Corker (R-Tenn.), a member of the Senate Banking Committee who has participated in talks on the bailout, said Republican senators discussed the need for the upper chamber to take the lead during a private meeting Wednesday afternoon.
“Maybe it would be best at this point for the Senate to take the lead,” said Corker, who said this sentiment is “growing” among his colleagues.
Paulson squeezed the meeting with Pelosi and Boehner between two appearances before congressional committees, at which many Republicans expressed opposition to the rescue plan, while Democrats seemed more accepting, but interested in making changes.
Wall Street markets did not plunge for a third straight day, although the Dow Jones industrial dipped by 29 points. The NASDAQ, the largest U.S. electronic stock market, was up for the day.
Republicans are the key to passing the bailout because Pelosi has told members of her caucus she won’t bring the package to the floor unless there is substantial Republican support. But conservative Republicans have rallied against the plan, and former House Speaker Newt Gingrich (R-Ga.) said earlier this week that Republicans should vote against the it.
House Financial Services Committee Chairman Barney Frank (D-Mass.) said his staff was working with the staff of Sen. Chris Dodd’s (D-Conn.) Banking Committee to reach agreement on a single bill, rather than separate House and Senate versions.
Frank added that he believes Pelosi has a minimum threshold of Republican votes necessary to bring the bill forward, but he said he did not know what that number was.
“They’re not even close to having enough votes,” said Rep. Jason Altmire (D-Pa.), a freshman facing a tough reelection. “This has to be bipartisan.”
Senate Majority Leader Harry Reid (D-Nev.) pleaded for Republicans to support the package, which conservatives have roundly criticized as too expensive and an overreach of federal power.
Reid said Tuesday that only one Republican on the Banking panel could be counted on to support the proposal first floated by Paulson and Federal Reserve Chairman Ben Bernanke.

Several conservative Republicans continued to voice opposition on Wednesday.
Rep. Jeb Hensarling (R-Texas) complained that the bailout plan was a “slippery slope to socialism.” He said there are more free-market options, such as a suspension of the capital gains tax, that would bring relief to financial markets without intervention.
“The markets are panicking,” added Rep. Gresham Barrett (R-S.C.). “The government doesn’t need to panic too.”
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But senior Republicans on the Financial Services Committee were more supportive, urging lawmakers to work with Paulson and Bernanke.
With support apparently slipping, businesses and trade groups not directly affiliated with the financial services industry on Wednesday began to lobby more forcefully in favor of the rescue package, an effort that participants hoped would provide additional political cover to members worried that voters will view the plan as a taxpayer-funded bailout of rich Wall Street investors who made bad bets.
The National Association of Wholesaler-Distributors, a group that counts 40,000 members, urged Congress “in the strongest terms possible” to approve the administration’s plan.
“This is one of the hardest letters that I’ve ever written, because normally we’re against government intervention in the marketplace,” said Jade West, NAW’s vice president for government relations.
But the crisis warranted sweeping government action, West said, because the fallout of the credit crunch will soon begin to affect the broader business community.
“This is a Main Street, not a Wall Street, position.”
Now the message NAW’s members want carried to Capitol Hill is, “Do something, damn it,” West said.
Lobbyists for the U.S. Chamber of Commerce, the Real Estate Roundtable, the National Federation of Independent Business and the International Franchise Association all urged Congress on Wednesday to act.
David French, vice president of government relations for the International Franchise Association, said franchisees were already reporting difficulty in getting credit.
“Stuff that was available two years ago is just not available today,” French said.
“From our perspective, this is much more than a Wall Street problem.”
Several Democrats said the administration and Bush himself needed to do a better job of explaining to the public the consequences of not passing the bailout.
“I get the why,” said Rep. Mel Watt (D-N.C.). “But my constituents are asking me why, not how. The administration has to be honest with America about the ‘why.’ ”Jim Snyder contributed to this article.

Entrepreneurs in Today's Economy

2008-09-28T09:20:00.001-07:00

Inside Entrepreneurship: Turmoil likely to make angels cautious
By SUSAN SCHRETERSPECIAL TO THE P-I
Q: Getting investors for my startup is essential to moving forward. In your opinion, will the recent roller-coastering of the stock market and the economy in general make finding independent investors more difficult? Or are potential investors looking for alternatives to the stock market?
-- M.P., Seattle
A: Entrepreneurs usually are a highly optimistic and confident breed. But judging from the letters I've received this week, their mood has become more cautious.
Prospective entrepreneurs are questioning the timing of their startups. They ask, "Should I bother to start up in this economy?" or, "If I work at my startup on weekends, can my employer make any claims on my technology?"
I like this wry commentary best: "Susan, since banks and investors have turned me down, can you give me the government bailout address to rescue my failing business?"
While it's clearly too early to make many useful forecasts, I do believe that recent financial market turmoil will affect the psyche of independent angel investors for some time to come.
Unlike venture capital fund managers, angel investors are not paid a salary to invest in entrepreneurial companies. It is a discretionary hobby to them. Further, they invest their own money rather than act on behalf of other institutional investors. This means that the amount of money they budget for new venture deal investments is directly related to the value of their retirement accounts, real estate and security portfolios. If their liquid net worth has plunged dramatically, then expect angels to write fewer checks to young companies.
This is not good news for most startup entrepreneurs, who usually are not far enough along in business development to qualify for venture capital or more traditional asset-based financing offered by commercial lenders.
During the past few days, I've spoken to angel investors from around the country. The most common sentiment expressed by them was a need to get a better handle on the stock market, the overall economy, the fiscal demands on the U.S. government and the value of their portfolios. More active angels suspected that they would have to allocate more money to existing investments that might struggle during a slow economy rather than invest in new opportunities.
Here are some likely responses from venture investors.
Expect angels and venture capitalists to use the current market conditions as an excuse to bring down company valuations. Investors will want to build in "more room" to make money by starting with the lowest valuation possible.
Expect investors to demand more onerous liquidation multiples and preferences like they did in the aftermath of the dot-com meltdown.
Expect investors to favor startup companies that can reasonably reach cash flow break-even sooner rather than later. First-round technology development investors will worry that entrepreneurs may never secure second-round investors needed to finance product introductions. Entrepreneurs will have to look further down the road in developing their financing strategies.
Expect investors to favor entrepreneurs who have a really practical answer about how investors will ultimately get their money back. IPOs will get tougher. Corporations will become more selective in their buyout activities.
To your last question, will angel investors eventually view privately held, high potential companies like yours as a better deal than the seemingly more volatile public markets? Certainly it's a good talking point.
You can strengthen your appeal by looking for every possible way to reduce the perceived risk associated with investing in your company. This means pursuing operating partners to speed progress. It also means lowering your cost structure and checking the credit-worthiness of customers. Like investors, you, too, have to protect every penny you have.
Susan Schreter writes about startup planning and small-business financing for the Seattle P-I. She has an investment banking and buyout background and serves as a coach to entrepreneurs and consultant to corporations. Find more Inside Entrepreneurship columns at seattlepi.com/venture. Send questions about small-business management or raising money for your business to susan@insideentrepreneurship.com or by mail to Inside Entrepreneurship, c/o Seattle P-I Business Section, 101 Elliott Ave. W., Seattle, WA 98119.

Blockbuster to Stick to the Bricks

2008-09-28T09:16:00.003-07:00

Blockbuster sticks to the bricks
06:29 PM PT, Sep 23 2008
The instant gratification of video-on-demand and the novelty of movies by snail mail may get many a consumer more excited than an old-fashioned trip to the corner store, but for Blockbuster Inc., the store is still the thing.
The Dallas-based video rental and retail chain, which closed hundreds of stores over the last year, plans to revamp many of its remaining outlets, expand its movie and game offerings, and add more rental and download kiosks.
But it’s still keeping an eye toward increasing Internet-based downloads through Movielink, the digital movie site it acquired last year, and attracting more movie-thru-mail subscribers. Critics say stores are passé, but Blockbuster notes that its mail customers also have the convenience of returning or trading-in their mail-ordered movie at stores — something which Netflix can't do because it doesn't have brick-and-morter outlets (just in case an Ingmar Bergman flick showed up in the mail when you were more in the mood for "Sex and the City").
“Most people read a lot of interesting headlines, and we enjoy the headlines, about Netflix, Amazon, Apple, so forth,” says Tom Casey, Blockbuster’s chief financial officer, during a presentation at Thomas Weisel Partners’ Annual Consumer Conference on Tuesday. “But what you need to understand is we really have a market that we address that’s nearly $36 billion in size. Video-on-demand is actually pretty small.”
That $36-billion figure is the total market for DVD's and game sales — where Blockbuster has been expanding — and movie rentals. Blockbuster has a 40% share of the $9.6 billion movie rental business, of which in-store rentals account for more than half the total revenue, followed by mail subscription and video-on-demand, according to the company.
Blockbuster reported a loss of $44.7 million, or 23 cents a share, in the second quarter, ended June 30, compared to a $34.2 million loss in the same period last year. But same-store revenue rose 9%, and the company reaffirmed that it expects a profit for the year.
“Traffic tends to transfer to a nearby Blockbuster whenever they close a store,” says Arvind Bhatia, an analyst at Sterne Agee & Leach, Inc., adding that he estimates a “normal attrition” of about 150 store closures in the U.s. this year and next. Blockbuster now has about 8,000 stores worldwide.
"Financially, they're doing well," he adds.
Blockbuster plans to increase its stock of rental and retail movies and games at each store as well as pay for store refurbishing, from paint and carpeting to adding Blu-ray kiosks. Some stores have already undergone a broader remodeling, complete with gaming stations and cafes.
“Too many of the stores still look like the old blue-and-yellow 90s VHS stores,” Casey says.
And analysts think Blockbuster still has life left in its stores — particularly on the retail market — before the Internet or video-on-demand becomes the dominant delivery system.
“We all have the idiot friends who have collections of hundreds of DVDs. Nobody is going to collect 100s of DVDs on their hard drives,” said Wedbush analyst Michael Pachter. “And the movie studios don’t make as much" on rentals or on-demand services, where the profit margins are smaller.
Pachter notes that as long as Blockbuster gets customers in stores and studios release movies on DVD before they allow video-on-demand and streaming online, the company will thrive.
“Blockbuster says, why not buy a movie while you’re in here? What else can they sell? Popcorn, video games, maybe a TV or an iPod,” Pachter said. “They’re merchandising better, and that’s absolutely working.”
— Swati Pandey

Yum! Donates $80 Million to WFP

2008-09-28T09:06:00.001-07:00

Yum! Donates $80 Million to WFP
2008-09-25 — The Clinton Global Initiative today recognized Yum! Brands (NYSE:YUM - News) for its worldwide commitment to raise and donate $80 million over the next five years to help the World Food Programme (WFP) and others provide 200 million meals for hungry school children in developing countries. In addition, Yum! pledged over the next five years to donate 20 million hours of hunger relief volunteer service in the communities in which it operates; $200 million worth of its prepared food to hunger agencies in the United States and use the company's marketing clout to generate awareness of the hunger problem, and convince others to become part of the solution.
President Bill Clinton announced Yum's commitment during a special Plenary Session that made school feeding a top priority in the fight to end global hunger. The commitment will mean that 1 million children could come to school every day for an entire year and receive a nourishing meal.
The funds will be raised through Yum! Brands World Hunger Relief campaign, the world's largest private sector hunger relief effort to help end world hunger. World Hunger Relief supports the United Nations WFP and other hunger relief agencies.
"Hunger is unacceptable. As a society, we should not and can not tolerate the fact that nearly 925 million people are starving and go to bed hungry every day. As the world's largest restaurant company, we believe it is our privilege and responsibility to find a meaningful solution to this critical problem," says David C. Novak, Chairman and CEO of Yum! Brands.
Global hunger has reached epic proportions--reaching nearly 1 billion people--due to the convergence of higher commodity and global food prices; increased competition for products that produce energy; severe droughts and floods due to climate change and increasing demand from growing economies in Asia and South America.
"We hope to move millions of people from hunger to hope through our efforts," said Novak. The company's employees and franchisees will be volunteering their time around the globe at hunger relief agencies, food banks, soup kitchens and launching fundraisers. The Yum! Foundation also will be donating to the cause by covering the WFP's administrative fee so that funds collected from customers and employees will go directly toward feeding people. Funds raised for WFP go directly to the areas of greatest need, feeding poor school children in the developing world and helping villages become self-sustainable. Every U.S. dollar raised during World Hunger Relief 2008 will provide 4 meals for hungry children all over the world.
During this year's World Hunger Relief campaign, Yum! plans to generate the equivalent of nearly $50 million in awareness of the hunger issue through television and print advertising, public service announcements, public relations, web-based communications and in-restaurant posters and signage. In addition, the company is leveraging the power of the internet to reach millions of people through the www.fromhungertohope.com Web site and other on-line activity.

Sonic Franchise Stores Outperform Company Operations

2008-09-26T08:26:00.000-07:00

Sonic slips on same-store sales outlook
Associated Press 09.24.08, 5:37 PM ET

NEW YORK -
Several analysts trimmed their fourth-quarter profit estimates for Sonic Corp. on Wednesday, after the drive-through restaurant chain said preliminary fourth-quarter same-store sales were "slightly negative."
Shares of Sonic fell 53 cents, or 3.3 percent, to $15.41.
After Tuesday's closing bell, Sonic said same-store sales were positive nationwide for the fiscal year ended Aug. 31, but partner drive-in sales declined for the fiscal year and in the fourth quarter. Same-store sales measure sales at stores open at least a year and are considered a good gauge of ongoing retail health.
In the fourth quarter, Sonic said same-store sales were positive at franchised drive-in locations, but same-store sales for partner drive-ins were "significantly negative," causing slightly negative same-store sales systemwide. Partner drive-ins are locations where the company owns a majority interest.
Oklahoma City-based Sonic is set to report fourth-quarter results Oct. 16, and analysts polled by Thomson Reuters expect 35 cents per share in earnings for the fourth quarter.
Stifel Nicolaus & Co. analyst Steve West trimmed his quarterly profit forecast by a penny to 34 cents, and expects Hurricane Ike and input costs to weigh on fiscal 2009 results. West said the impact from Hurricane Ike is much worse than previously expected because of massive power outages.
West, however, kept a "Buy" rating on the stock, expecting new products to drive sales and boost margins.
Meanwhile, KeyBanc Capital Markets analyst Lynne Collier, who rates the stock "Hold," also trimmed her fourth-quarter estimate and noted higher commodity costs and softening consumer spending. The company has significant exposure to rising beef and dairy costs, Collier said.
Collier also said a happy hour promotion increased customer traffic, but ended up hurting the average check.

Franchise Brokers

2008-09-24T19:17:00.000-07:00

People often ask me about franchise brokers. On the surface, the idea of a franchise broker seems simple enough. Brokers put buyers and sellers together so whether a buyer or a seller, brokers would seem to be a very important component in the equation.

The fact is, brokers get paid to put buyers and sellers together. After all, they need to get paid too. Thus, by the pure nature of that relationship, they typically have a biased opinion. Odds are, they are representing a party that pays them upon procurement of a sale.

So, let us look at this from both perspectives, the franchisor and prospective franchisee.

For you franchisors or perspective franchisors - Brokers fill a void as a nice additional franchise sales outlet, but do not make the mistake in thinking that brokers are going to be your only source of sales for your franchise company. We have found that companies that sell their own franchises have the greatest success in the long run. The reason for this is that a company selling their own franchises has to live with them for the term of the contract. This causes in house sales teams to have more stringent criteria placed on them.

Thus, my advice is to first deploy an in-house sales initiative. In order to be successful with an in-house sales force, they will need to deploy a marketing program in order to generate leads for those sales people to follow up with. This strategy needs to address the following marketing opportunities:

1. Internet
2. Trade Shows
3. PR / Publicity
4. Print
5. Direct mail

Francorp believes that this multi-pronged approach is the best way to address franchise sales and marketing.

As a secondary plan, brokers can add additional prospects to the equation. Though, be weary of deploying a marketing program and sending all of your leads to outside brokers. I would not recommend that strategy. Your leads are then likely to be distributed among that brokers other franchisor clients in the event that they have a qualified franchisee prospect that is not interested in your particular business off hand. My advice would be to only use brokers that generate their own leads. In addition, be careful not to enter into an exclusive broker arrangement.

For those of you that are prospective franchisees, be weary of brokers steering you to a particular business in which they are obtaining a commission. Not all franchise companies pay commissions. What happens if you work with a broker and they do not show you a particular franchise that you are interested in learning more about? GO DIRECTLY TO THAT COMPANY.

There are many brokers that are great people and and help people find their dream business. Though, brokers are not for everyone. I am not aware of any large national brokerage networks that are paid directly by the buyer. All of the brokers that I have met are paid by the actual franchise companies upon the sale of a franchise. In a perfect world, you perspective buyers should work with a broker for a fee that you pay so that your interests are being represented, not those of a hand full of franchisors.

Now you sellers and prospective buyers are in a better informed position to be able to find the right opportunities that are out there for you all. You heard it here from Francorp, the franchising leader.

Francorp - Franchise Consulting - Franchise Sales

2008-09-23T11:32:00.000-07:00

Franchise Sales Strategies:
Christopher James Conner
Vice President
Francorp Consulting

As the Franchise World continues to move towards technology like all other industries, more and more sales processes become automated, it becomes easier and easier to forget and lose the most critical ingredient of what has made salespeople successful for centuries, "Building Relationships."

People still buy from people they like and that they can relate to. Technology can't create this, it can only enhance what we as salespeople do during the process. To most potential customers, all the "fluff" becomes white noise and people don't read or listen to mass emails and bombardment of marketing materials.

It is up to the franchise sales professional to create a feeling of caring for the potential franchisees future. The sales process should evoke a sense of "mutual exploration" for both the candidate and the sales person.

Initial contact for a franchise sales person needs to be through the phone. I have never awarded a franchise solely through email contact. This is an enormous decision for most franchise buyers, a cold email and information requests don't convey very much sincerity to a prospective franchisee. Most franchise buyers are refinancing homes or closing out 401k's to make this possible, they must feel very confident in the franchise sales person to pull the trigger on a decision as big as this.

It is important for the franchise sales person to combine emails with phone calls, the prospect should know your voice as well as personal background about the franchise sales person....after all, isn't that what "building a relationship" is all about!?! The franchise sales person should think of themselves as a consultant, work with the franchisee by taking a personal interest in their success.

The initial phone call should be to set an appointment, don't jump into the sale! A franchise sale sis very different from most sales where you are providing a traditional good or service. This is a partnership we are selling now. The first call should be an explanation as to what the next call will cover.

The first phone appointment is about the customer! Remember you should be doing no more than 25% of the talking! If you find that you are doing most of the talking during the call....it probably isn't going very well. Key points to cover during this appointment, timing, why should they be looking at franchising now? Background, what is your level of interest in franchising and why? Goals, what would you like to achieve through franchising? Where, what locations would you like to consider opening the franchise? When it comes down to it, people really don't care about how smart you are until you show concern for their well being and interests.

Here is an acronym we use at Francorp when describing franchise sales. The franchise sales person should strive to be a "Star".

S - Support - Family, Friends and Peers
T - Timing - Now is the right time for Franchising
A - Assets - Building wealth through owning your own business.
R - Recreation - It's fun and exciting!

Building a relationship with a potential franchisee unlocks unbiased information from a franchise candidate, this allows the franchise sales person to make legitimate recommendations. Typically the most guarded area of information will be in regards to financial well being - franchise buyers will not be up front about financial facts until they fell comfortable with a franchise sales person. It is impossible for you as the sales person to provide valuable assistance for them without accurate information! Build the relationship first, then the information will be unbiased and your recommendations will be authentic.

Franchise buyers, much like any other buyer want to feel that they are getting involved with people who are like them. A big part of the franchise sale is drawing connections with the buyer and making examples of existing franchisees who are similar to the prospective buyer. Throughout the sales process, it is important for franchise sales people to remember that the franchise opportunity they are selling is just that....an opportunity. People who are awarded the right to operate as a franchisee will unlock their financial future, this should be about helping people!

www.francorp.com

www.francorpconnect.com

How Franchisees Succeed

2008-09-22T05:19:00.000-07:00

How to Succeed As a Franchisee

Pick a franchisee that matches your interests and abilities.Make sure you have enough money to operate without profits for the first few years.Research the opportunity carefully before committing.Related How-TosHow to Finance a Franchise PurchaseHow to Select a FranchiseFeedbackSend Feedback on this How-To Guide » While franchising’s prevalence in the U.S. economy indicates that franchisees can succeed, hundreds of franchisees fail each year. The most frequent causes: lack of funds, poor people skills, reluctance to follow the formula, a mismatch between franchisee and the business, and poor management. Often, it’s the small stuff that separates winners from losers.

A critical initial decision is picking a product you care about. Consider hiring a consultant to analyze whether you are a good fit with the business opportunity you are thinking about buying into. You also have to couple passion with discipline, avoiding too-fast growth at the expense of high-quality expansion.

Among the most common mistakes new franchisees make is signing on before adequately researching the business. Study what it will take to run the business successfully. And be realistic. Owning a franchise is rarely a get-rich-quick scheme.

Contact current and former franchisees to get their feedback, using names from the franchise circular from the franchisers. Never make a commitment based solely on information provided on the Internet or over the phone.

Sometimes, franchisers are to blame. Franchisers may be inexperienced themselves, a situation often found in very small systems. Or they may expand too aggressively, rendering them unable to service franchisees. Brokers or consultants selling concepts may be more interested in a sales commission than in making a good match between business and franchisee.

Another pivotal decision early-on is location. Think twice before locating a franchise using only your intuition. A location on the outskirts of town might be more affordable but may be too remote for customers to reach conveniently. Other factors may be at play. For example, one franchisee thought his spot on a college campus was perfect for his fast-food franchise. Students were a built-in source of employees and customers. And they were — when they were around. But they disappeared for football games and vacations. At the end of each semester, they had little spending money left for take-out or delivery. The location had no parking and so had no other customers. It eventually moved to a freestanding building with a big parking lot. It still delivers to campus, but now also serves families, whose average order is much higher than a typical student’s tab.

To find potentially successful locations, national chains use what’s called geographic-information-systems software that layers census and consumer-trend data upon every street and byway in the country. These tools can cost thousands of dollars. For a few hundred dollars, you can buy demographics reports for any ZIP Code in the country that will analyze population characteristics, income levels, lifestyle trends and even traffic patterns within about a mile of potential sites. You might want to pinpoint, for example, a high-traffic area with at least 40,000 cars a day, 50,000 people living within a two-mile radius, and retail locations nearby. Also consider whether adequate parking is available.

Another key to a franchise’s success is good customer service. That may include making additional investments to improve customer experiences, working overtime to satisfy customer time demands, and putting out extra effort to ensure products and services are done right.

While franchise systems offer pre-set business formats, flexibility and versatility help a lot. That’s especially true when it comes to marketing and promotion. To bring customers in the door, successful franchisees report using tactics such as discount coupons, free samples, direct-mail ads and fax blasts. No marketing job is too small or difficult for a franchisee determined to succeed. Many have success with community-based marketing initiatives, such as those involving schools.

For every franchisee chasing success, there are many competitors engaged in the same pursuit. Studying the competition by visiting their locations and looking for help-wanted signs signaling expansion plans, for instance, helps long-lived franchisees know when to initiate marketing plans to counter rivals’ efforts.

Franchisees can’t succeed without good employees. Winning franchisees treat employees well, so they will treat customers well. Some franchise businesses, such as fast food, have high employee-turnover rates. Providing corporate-style benefits such as medical, dental and retirement benefits can go along way to helping workers feel as though a franchise job is a career. Making sure employees are properly trained and executing according to the rules is vital.

That goes double for your managers. Franchisers say the No. 1 reason for a franchisee’s failure is that they don’t hire the right managers. Franchisees who lack management skills themselves might want to choose a business that could be run by just one or two people. Or, consider hiring someone skilled at motivating others.

Don’t forget: You have to follow the rules, too. Franchises aren’t designed for the independent-minded. They depend on a by-the-book execution of a business plan, adherence to time-tested systems, and a willingness to follow directions.

Insufficient funding is a prescription for failure in any business. With a franchise, the initial fee is clearly stated, but newcomers often underestimate operating costs. A slow beginning or unanticipated event can quickly drain and doom an undercapitalized franchise.

Unrealistic optimism also can be a recipe for financial distress. Borrowing to expand just before a downturn, for example, can lead to rapid bankruptcy. Franchisees need a financial cushion to weather unexpected situations. Experts advise new franchisees to have a nest egg for emergencies and assume they will lose money the first two years.

Franchisees who leave the management of their units to managers and who may or may not be on the premises every day are also less likely to succeed than owners who take a hands-on approach. They may not know if the help is showing up, what customers are complaining about, or whether employees are dipping into the till. Theft can be contagious and contaminate an entire organization if not stopped immediately.

Francorp Client - Lifeway Foods

2008-09-18T05:02:00.001-07:00

#2: Lifeway Foods Inc.
By: H. Lee Murphy September 15, 2008
Independent directors are a bargain at Lifeway Foods Inc., where their total pay runs all of $4,500 a year. That's less than the after-meeting golf fees rung up by many larger companies' boards.

A maker of kefir and other cultured dairy products once marketed primarily as a health food, Morton Grove-based Lifeway is expanding its distribution to mainstream grocery chains. CEO Julie Smolyansky has said the company intends to franchise a chain of boutique-cafes to provide an additional sales channel.

First-half revenue rose 21%, to $22.6 million, but Lifeway's profits have been under attack. Raw milk prices zoomed in the second half of last year, and, though they've eased in recent months, costs continue to squeeze profit margins. Second-quarter earnings amounted to 5 cents a share, prompting analyst Jacklyn Rider of New York-based Lazard Capital Markets LLC to downgrade the stock from "buy" to "hold" and reduce her 2008 earnings estimate to 26 cents a share from 30 cents.

Howard Halpern, a Taglich Bros. Inc. analyst in New York, is more focused on revenue. "The top line is the best indication of where they are going," he says. "Margins may be squeezed at the moment, but if they can keep growing, eventually they'll get their leverage back and earnings will return."

As for the low director salaries, Mr. Halpern isn't surprised. "For companies this size . . . being a director is a labor of love for everyone involved," he says. "You don't do it for the money."

WHO'S MAKING WHAT
Non-executive board members
> Renzo Bernardi $1,500
> Pol Sikar $1,500
> Julie Oberweis $1,500
> Juan Carlos Dalto $0

THE BOTTOM LINE
> Three-year total shareholder return: 37.2%, period ended 12/31/07
> Total non-executive board compensation in 2007: $4,500

www.francorp.com

Francorp Client - Lifeway Foods

2008-09-18T04:56:00.003-07:00

Lifeway Foods to Begin a Franchise Program for Its Starfruit, 'Kefir Boutique' Cafe
Mon Jul 7, 2008 3:48pm EDT Email | Print | Share| Reprints | Single Page | Recommend (0) [-] Text [+] Featured Broker sponsored link
Lifeway Foods to Begin a Franchise Program for Its Starfruit, 'Kefir Boutique'
Cafe

MORTON GROVE, Ill., July 7 /PRNewswire-FirstCall/ -- Lifeway Foods, Inc.
(Nasdaq: LWAY), the country's leading manufacturer of kefir and a provider of
other natural and organic dairy products, announced today that it is
franchising its Starfruit "kefir boutique" cafe.
The new retail concept debuted April 15th at 1745 W. Division Street in
the trendy Wicker Park neighborhood in Chicago and serves as a prototype for
it's national franchise program. The shop offers several flavors of frozen
kefir with over 20 toppings as well as customized kefir parfaits, and
smoothie-style kefir drinks.
"Since announcing the initial opening of Starfruit, we have been bombarded
with requests for franchise opportunities from all over the country," said
Julie Smolyansky, President and CEO of Lifeway Foods, Inc. "Starfruit will
capitalize on the renewed popularity of frozen yogurt shops while offering a
healthier alternative with all the probiotic benefits of kefir and franchising
the concept can help us grow the brand quickly."
The expansion into retailing provides a new sales channel for Lifeway's
products, coincides with the resurgence in the frozen yogurt category and
offers an opportunity for Lifeway to promote the health benefits of its kefir
products beyond grocery shelves.
Those benefits include 10 live and active probiotic cultures that have
been shown in various studies to enhance the immune system, fight fatigue,
promote gastrointestinal health, aid in vitamin and mineral absorption, and
ease lactose intolerance. Yogurt has a similar taste and texture to kefir but
many of these frozen yogurt style shops do not use a real live and active
product and contain only two or three of these cultures if any.
"Starfruit will capitalize on the renewed popularity of frozen yogurt
shops while offering a healthier alternative with all the probiotic benefits
of kefir," said Julie Smolyansky, President and CEO of Lifeway Foods Inc. "We
have been pioneering leaders in the field of probiotics and kefir. This
leadership will translate into the quality of the Starfruit product line.
This is a promising diversification that will leverage our leadership in the
kefir market, familiarize a whole new group of consumers with kefir as well as
teach existing customers new ways to consume kefir, and provide a potentially
very lucrative new revenue stream."
Julie Smolyansky stated that the company is accepting applications for
individuals interested in becoming franchise partners for individual or
multiple locations. Lifeway has engaged Francorp, the world's leader in
franchise consulting, to develop their franchise program.
For more information, email franchising@starfruitcafe.com or call
847-967-1010.
About Lifeway Foods
Lifeway is America's leading supplier of the cultured dairy product know
as kefir and the country's only supplier of organic kefir. Lifeway Foods,
recently named Crain's Chicago 49th fastest growing Chicago Companies and
Fortune Small Business' 49th Fastest Growing Small Business, one of only 4
companies to ever be named to the list five straight years in a row.
Lifeway's kefir products include regular and organic kefir, a soy-based
version called SoyTreat, a new Indian variety known as Lifeway Lassi, organic
whole milk kefir, and a children's line of organic kefir products called
ProBugs(TM) packaged in a no-spill pouch. Lifeway also produces the La Fruta
line of drinkable yogurt marketed in US Hispanic communities, a variety of
cheese products and It's Pudding! organic pudding.
SOURCE Lifeway Foods, Inc.

Lifeway Foods, Inc., +1-847-967-1010, franchising@starfruitcafe.com

Little Gym International

2008-09-17T14:01:00.000-07:00

Franchiser's success wasn't child's play
1 commentby Susie Steckner - Sept. 17, 2008 12:00 AM
bizAZ
The Little Gym International Inc. has experienced enormous growth and soaring profits in the past decade, so it's hard to imagine that its chief executive has made many missteps along the way.

But Bob Bingham readily admits a few, namely his overconfidence that the company's plan to go public would be a slam dunk. It wasn't, and with no solid Plan B, he was left with few options to survive.

Bingham, 62, president and CEO of the Scottsdale-based company, talks about what happened and how he turned it around:
The Little Gym, which offers non-competitive, fun programs to help kids develop motor skills, was a fledgling company when Bingham was asked to take the reins in 1993. At the time, he had a background in broadcasting and was in the process of selling radio stations he owned in several Western states.

Bingham didn't know anything about franchising, but he knew how to turn around companies, something he did in his broadcast career, and that's exactly what the Little Gym needed.

Franchise owners were dissatisfied with the company. But the company's priority was expanding, not making them happy. Bingham took the helm with a new goal. "I wanted to focus our energies on the success of the franchise owner first," he said. "Our success would follow their success."

By 1996, the company decided to go public. Bingham sees now that it was a "terrible idea."

"We weren't far enough along on our growth path," he said.

It moved ahead with an initial public offering, raising $7 million of the $8 million it needed. Then, another kid-focused chain, the Discovery Zone, went bankrupt. Funds quickly dried up for the Little Gym, and the IPO never materialized.

"We were so sure that it was going to work, we didn't have a Plan B," Bingham said. "Every good CEO needs to have a Plan B for every eventuality, and this one didn't."

It was a big hit financially, and Bingham had few options but to downsize quickly and severely. "It was very, very painful," he said.

The staff shrank from 28 full-time employees to five, leaving Bingham to figure out how to keep providing quality service and support to franchise owners.

His idea: Ask the franchise owners to work part time for the company and help guide their peers. Everyone agreed. Bingham said necessity truly is the mother of invention.

It worked. The company went from losing $1.1 million in 1996 to turning a profit in the third quarter of 1997.

Success followed. From 1997 to 2006, it experienced year-over-year, double-digit growth.

The company today has 315 franchises in 20 countries, up from 35 franchises in 1996. In the next three or so years, it is on track to hit 500 gyms in the United States alone.

"We've been very blessed," Bingham said. "We're a debt-free company. We're healthy. We're strong."

Wendy's Shareholders Approve Takeover

2008-09-17T13:58:00.000-07:00

Wendy's, Triarc approve takeover deal
By LAUREN SHEPHERD – 2 days ago

NEW YORK (AP) — Shareholders of Wendy's and Triarc approved a $2.34 billion deal on Monday that will make the nation's No. 3 hamburger chain a part of billionaire investor Nelson Peltz's empire.

Triarc Cos. Inc. shareholders voted from New York while shareholders of Dublin, Ohio-based Wendy's International Inc. approved the deal from the company's headquarters. Directors of both companies had already OK'd the transaction.

Atlanta-based Triarc operates the Arby's fast food chain and is owned by Peltz. Triarc said in April it would buy Wendy's for $26.78 per share in an all-stock deal, after the chain known for its square hamburgers and the Frosty dessert rejected at least two earlier offers by Peltz.

Triarc said it will change its name to "Wendy's/Arby's Group Inc." and will trade under the "WEN" symbol on the New York Stock Exchange. Triarc's Chief Executive Roland Smith will take over as CEO of Wendy's and Kerrii B. Anderson, the current CEO, will step down.

Smith has said job cuts will likely be necessary, but he has yet to provide any details on those plans. He offered no new details in the company's statement but said more information would be forthcoming once the deal closes.

"We believe our combination represents a major strategic opportunity to create significant long-term value for all of our stakeholders, and we are working on a comprehensive integration plan and organizational structure to support enhanced operating performance at both brands," Smith said in the statement.

Smith has said Wendy's headquarters will remain in Ohio while Arby's will stay based in Atlanta.

Wendy's spokesman Denny Lynch said the company will "remain focused on running our business and doing the best we can to continue the turnaround at Wendy's."

The acquisition of the chain Dave Thomas launched in Columbus in 1969 comes as consumers increasingly cut back on discretionary spending and commodity costs take bites out of restaurant profits.

Wendy's has been hit harder than its fast-food competitors. Last month, the company reported lower second-quarter profit and sales, saying its results has been hurt by higher grain and fuel prices.

Under the terms of the deal, Wendy's shareholders will receive 4.25 shares of Triarc's Class A stock for each share of Wendy's stock they own. Each outstanding Class B share will be converted into one Class A share. Once the deal closes, expected on Sept. 29, the combined company will have only one class of stock.

Besides approving the acquisition, Triarc shareholders also voted to add a new member to its board and accepted the resignation of one of its current board members, Russell V. Umphenour Jr., to make room for two Wendy's directors — Janet Hill and J. Randolph Lewis.

Hill is vice president of corporate consulting firm Alexander & Associates Inc. and Lewis is senior vice president of distribution and logistics at Walgreen Co.

Wendy's shares fell 60 cents to $22.24 while Triarc shares dipped 12 cents to $5.26 in afternoon trading.

To Franchise or Not to Franchise?

2008-09-16T20:14:00.000-07:00

To franchise or not to franchise: An analysis of decision rights and organizational form shares

Steven C. Michael, , 1

George Mason University, USA

For innovators and entrepreneurs in service businesses, franchising is frequently suggested as a way to succeed and grow. Academic research has provided little guidance for potential franchisors, however. This article provides a model to guide that choice of organizational form using results from agency theory. Analytically, franchising is a way to allocate decisions within the franchise system between the franchisor and the franchisee in order to promote efficiency and provide incentives. Franchisees make decisions regarding local operations, such as hours, prices, and locations, because they have the knowledge about local trading conditions. Franchisors make decisions regarding the product, its production, and associated marketing efforts that together create the standardization that the trademark signals. The revenue of franchise systems is divided to provide incentives to each party to support the allocation of decisions. Franchisors receive a percentage of gross sales, typically 5%, to compensate them for use of the trademark and associated services. Franchisees keep the unit's profits after paying royalties. These profits motivate the franchisee to make the good decisions that operate the unit efficiently.

But franchising has limitations as well. First, by making franchisees invest in a unit in a specific geographic area, the franchise system exposes the franchisees to business risk; it consists of local economic conditions beyond franchisees' control that could reduce or eliminate their capital. That risk could be eliminated by owning a geographically diversified portfolio of shares of units in different places, but then incentives are weakened. Second, the requirements of standardization under the common trademark constrain franchisees from the full use of their human capital, including their knowledge of local conditions. Some adaptations to the local market are prohibited by the requirement of standardization. So high levels of either business risk or human capital in an industry make franchising a less desirable choice of organizational form.

These ideas are tested with interindustry data using an econometric discrete choice model on the share of sales through franchise systems (termed organizational form share). The methodology is identical to market share models used in economics and marketing. Business risk, as measured by percent of units that have failed in the industry in the last 3 years, and human capital required in the industry, as measured by average wages paid, both negatively influence the share of sales through franchise systems.

The model can be applied by entrepreneurs considering franchising, especially in industries not traditionally associated with franchising. Using public data sources identified in the study, a prospective franchisor can research the industry to determine if industry conditions support franchising as the optimal choice of organizational form. The empirical texts also suggest a second managerially relevant conclusion: the decision of “should we franchise?” can be and should be separated from the decision of “how do we implement franchising?” Factors previously shown to influence the implementation of franchising, the degree of ownership of units within the system, do not influence organizational form share, thus suggesting that the strategic decision of whether to franchise is distinct from the operating decision of how to implement franchising.

Francorp Breakfast - West Coast Franchise Exposition

2008-09-16T07:03:00.000-07:00

Each year Francorp holds a breakfast debreifing before every major franchise exibition around the country. These meetings are held for the specific purpose of working with clients to get them ready for the show that weekend and help strategize how to most effectively utilize your time as a franchisor at a large tradeshow.

The Breakfast Breifings are designed to focus on "booth tactics", booth design, tradeshow set up, staffing the show, collateral material design and handouts, managing a tradeshow and following up with prospective franchisees after the event.

This coming November Francorp will be holding the West Coast Franchise Breakfast on Friday, 11/07/08 at 7:30am. This meeting is for Francorp Clients only, but Francorp will also be exibiting at the Franchise Exposition as well at booth #325.

Show Dates & HoursFriday, November 7, 2008
10:00 am to 5:00 pm
Saturday, November 8, 2008
10:00 am to 5:00 pm
Sunday, November 9, 2008
10:00 am to 4:00 pm

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

Booth # 325

Register for Free before November 6, 2008 go to www.wcfexpo.com enter in source code GPEX8. Registration link: http://www.wcfexpo.com/registration.cfm

Francorp is the world leader in franchising and franchise development. Francorp has consulted with over 10,000 companies over it's 32 year history. For more information on the work and clients that Francorp has developed, visit the corporate site, www.francorp.com.

Franchising Your Business - David Washington

2008-09-16T06:20:00.000-07:00

VMG Vivere Management Group, LLC. Bringing energy, passion, and vigor to your business… INFLUENCE • INTEGRITY • INNOVATION Book Review
Franchising Your Business is the Quintessential Resource
For Growth Expansion in Today’s Marketplace
By J. David Washington

After reading "Franchising Your Business" by Donald D. Boroian and Patrick Callaway, I felt that the veil of the franchising world had been removed. Don and Pat carefully unravel all the myths that surround the world of franchising. One of the most important ingredients to success is to have a winning formula & blue print. The blue print required for success in franchising is mapped out clearly and succinctly in sixteen exciting and fast moving chapters. In chapter one the reader learns the rules of engagement and gets a 30,000 feet view of where the industry was and where it’s heading. Don and Pat have clearly shared gems of wisdom that can only be acquired through vetted industry experience. "Franchising Your Business" is filled with charts, examples of operation manuals, and a very practical franchiseability test to help a business owner to determine where there my stand in becoming the next great franchise success story. Chapter fourteen was very intriguing for me"Going International"; with the globalization of the world’s economy it’s important that one has a balanced prospective on the opportunities and pitfalls that lurk about in the international marketplace. Don and Pat do a good job of sharing their good and no so good experiences in the shark infested world of international business. The eight-step international checklist is a must read and review for entrepreneurs that aspire to expand their business beyond the shores of their local, regional, and domestic markets. Even though I'm not a teacher, this is a well written book based on first-hand experience and industry knowledge I give it an A+! It truly is a "must read" for anyone wanting to go into franchising and really want to expand their business. As a franchise consultant, I recommended "Franchising Your Business" to every prospective client with information garnered from this book you will be at the "head of the class" Clearly Don is a Guru in the world of franchising. Patrick, Don’s grandson merges their experience and prospective in a way to anticipate every thought you would have, every question, and every action you would take as you investigate, start up of your franchise system. Their goal is to equip the reader with "franchise blueprint knowledge." They have achieved this goal and more. If you are thinking of expanding into a franchise, "Franchising Your Business" is the book for you. If your goal was to take your business to the next level through franchising, the secret to success has been reveled in this resources guide, what you want to accomplish in terms of your franchise goals and what you need to know has been made available in "Franchising Your Business An Owner’s Guide To Franchising As A Growth Option". Good luck and many blessing to you on the journey!

www.francorp.com

McDonald's Same Store Sales Increase

2008-09-10T05:41:00.000-07:00

McDonald's posted an increase in same store sales for August. Check out the Wall Street Journal Article for more details below. For more information on franchising your business or franchise consultants go to www.francorp.com.

McDonald's Olympic Offerings
Help Boost Same-Store Sales
By SHARA TIBKEN
September 9, 2008 10:26 a.m.
Wall Street Journal
http://online.wsj.com/article/SB122096447139714607.html?mod=djkeyword

McDonald's Corp. reported an 8.5% increase in August global same-store sales, with a 4.5% gain domestically, boosted by beverages, the popular breakfast menu and the Olympic-themed Southern Style Chicken Sandwich.

European same-store sales jumped 12% due to menu variety and strong performance in the U.K., France and Germany. The company's Asia-Pacific, Middle East and Africa region saw 10% growth, driven by extended hours and Olympic-related marketing.

Systemwide sales increased 14% world-wide, or 10% in constant currency.

In March, McDonald's reported same-store sales in the U.S. fell for the first time in five years, but the company has posted solid increases since then. The overall restaurant sector in the U.S. has been hurt by high gasoline and food prices, as well as by the slumping housing market and credit crisis. August sales slowed across the fast-food industry, but UBS predicted on Monday that McDonald's could outperform its peers on the back of its Olympics advertising campaign and a successful "Star Wars" Happy Meal.

Soaring commodity costs have forced some McDonald's franchises to re-evaluate pricing, including for the popular Dollar Menu offerings. McDonald's has been testing modifications to its popular $1 double cheeseburger, and higher prices for the sandwich, as it prepares to change its Dollar Menu by next year. Some restaurants are selling it with one slice of cheese instead of two and billing it as a "double hamburger with cheese." Others are offering a double hamburger without cheese.

But McDonald's has been benefiting from new menu items, expanded hours and the tendency of cash-strapped consumers to "trade down" from more pricey eating-out options in the U.S. Overseas, it is benefiting from expansion and internal growth in markets like Australia, China and Japan while getting the currency benefits of the sagging U.S. dollar.

Write to Shara Tibken at shara.tibken@dowjones.com

Growing a Business

2008-09-09T19:55:00.000-07:00

Ask an Expert: Expand your thinking, expand your business
By Steve Strauss for USA TODAY
Q: How does a small business get big? We have been at the same level for years now and can't seem to breakthrough. — Jess
A: Your question reminds me of a quote I recently saw by J. Paul Getty, once the world's richest man: "My formula for success is rise early, work late, and strike oil."
No, you are not going to strike literal oil; those days are over. But figurative oil, why not? Think about Google founders Larry Page and Sergey Brin? Do you think they feel as if they struck oil? You bet. Richard Branson took The Virgin Group from a one-man band to a worldwide conglomerate, and you can bet he feels like he struck oil, too.
FIND MORE STORIES IN:
In fact, every company on the New York Stock Exchange or the NASDAQ started out as a small business. If they did it, so can you.
How? There is no one single answer. Different companies use different methods. Here are some of the best ways to go from small to big.
Find a great partner: Chester Carlson invented his copying machine at home but could not sell it – to anyone. A man named Joe Wilson eventually saw the machine and teamed up with Carlson. Wilson's company eventually put more than $100 million into R&D, and then renamed the business – from Haloid to Xerox.
When you work alone, as many small business folk do, or even if yours is a company of, say, eight people or so, there is only so much you can do by yourself. Your institutional knowledge is limited to what it is you do, your reach is similarly limited to your normal channels, and of course your resources are limited. In those cases, growth, while a laudable goal, is often one that can also understandably be out of reach. So what do you do?
Find a partner, that's what. Partners can bring your business to a whole new level. They have contacts you do not and resources different than yours. They also will have ideas that are new to you and offer unique ways to implement those ideas. The key then is to find strategic partners who offer some synergy: They need what you do and you need what they do. Together, what you can accomplish can be more than what you can do alone.
Be first to market: Ed Lowe owned a small factory that made a kiln-dried clay that was supposed to be an industrial absorbent. But it was only when his neighbor came by one day and asked to use some for her cat that Kitty Litter was born. Being first to market also helps you go from small to big.
Innovate: Bette Naismith was a terrible typist, but a good painter. That is why she would bring small tubes of paint to the bank where she worked to cover up her typos. Playing with various formulas, she eventually invented Liquid Paper at home, on her kitchen table.
Creating a new product or a way of doing things is a tried and true way to grow from small to big. Innovation gives companies what is known as the "first mover's advantage," and that in turn allows them to own a new market.
Be unique: If you want to take your business to the next level then one thing you should concentrate more energy on is your X Factor, that is, that one special thing sets you apart and makes you stand out from the crowd.
Think about the businesses you like best. Don't they so something special, unique, different, something out of the ordinary? That is their X factor. Figuring out what your X factor is, and then putting extra effort into it, can go a long way to taking you from small to big.
So the upshot is that there are lots of ways to go from small to big, companies do it all the time. The real trick is to pick a strategy that fits your business and your business plan, one with integrity. Do that, and your growth chances are much better.
Today's tip: One last thought: Plan Big. Notice I didn't say "Think Big." Most entrepreneurs have no problem thinking big. But what growth companies do is plan big. They create a team, figure out their X Factor, find strategic partners, come up with a plan, and execute on those big ideas. That is how you go from small to big.
Ask an Expert appears Mondays. You can e-mail Steve Strauss at: sstrauss@mrallbiz.com. And you can click here to see previous columns. Steven D. Strauss is a lawyer, author and speaker who specializes in small business and entrepreneurship. His latest book is The Small Business Bible. You can sign up for his free newsletter, "Small Business Success Secrets!" at his website —www.mrallbiz.com.