Showing posts with label franchise consultants. Show all posts
Showing posts with label franchise consultants. Show all posts

Tuesday, March 3, 2009

Francorp Middle East

Franchise demand in UAE to expand
Armina Ligaya

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Sunday, February 15, 2009

Francorp Client Success in 2009

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.

Thursday, January 22, 2009

Don Boroian

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

Tuesday, January 13, 2009

How to Effectively Work a Franchise Tradeshow

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!

Tuesday, January 6, 2009

Francorp - How to Franchise

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.

Wednesday, December 24, 2008

Brian Scudamore, Founder 1-800 Got Junk

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  .

Sunday, November 23, 2008

Franchising Still Moving

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

Monday, October 6, 2008

Francorp Goes Green - Step by Step

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.

Friday, September 26, 2008

Sonic Franchise Stores Outperform Company Operations

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.

Monday, September 8, 2008

Francorp Clients - Inka Grill

NutriPure Beverages, Inc. Subsidiary Inka Grill Franchise Systems Describes Alliance with Francorp, Inc.; Introduces Management TeamSeptember 5, 2008 9:00 AM ET

NutriPure Beverages, Inc. (Pink Sheets: NUBV) subsidiary Inka Grill Franchise Systems has released further details regarding its unique partnership/alliance with Francorp, Inc. Francorp, a Chicago-based firm founded in 1976 by industry legend Don Boroian, has consulted with over 10,000 companies and created over 2,000 full franchise programs, some of which have gone on to become global market leaders. Francorp, Inc. is convinced that a major international franchise opportunity exists with the exploitation of the Inka Grill brand and has committed significant operational, legal, marketing and strategic consulting expertise to the project. Mr. Boroian will personally oversee the Inka Grill franchising operation.

KEY FACTORS TO INKA GRILL’S FRANCHISABILITY
Excellent track record – low cost basis with strong year-on-year profitability.
New and exciting casual dining concept with “first mover advantage”– currently no significant Peruvian restaurant franchises exist in the USA.
Unique alliance/partnership with global franchise leader.
Delicious, affordable cuisine with broad geographic appeal.
Strong customer turnover and high customer revisits.
Restaurants run to peak efficiency at below average cost basis (28%), yielding above average margins.
Easily duplicated.
Unique food and beverage lines ready for retail sales in major outlet and club stores.
INKA GRILL MANAGEMENT TEAM
Ana Kishiara, Founder and Chairman of Inka Grill Franchise Systems.
Ana was born the 10th child in a family of 12 children, grew up in Peru, married in Greece, and traveled the world before settling in America. Growing up in a large family meant that every meal was an event, and the bustling family kitchen was always the center of life in Ana’s home. Ana sees Inka Grill as an extension of her home and her guests as an extension of her family. For this reason, all the food served at Inka Grill is prepared using only the finest and freshest ingredients and utmost care – a true recipe for success that has put Peruvian food on the map in Southern California. Inka Grill serves the ultimate Peruvian food experience, based on Ana’s home-style recipes from the Northern Provinces of Peru, where seafood, chicken, lamb, beef and potatoes are the staple. Every dish is prepared to order and only the freshest organic ingredients and care are used in all of Inka Grill’s preparations.
Donald Boroian, Founder of Francorp, Inc.
Donald has personally committed to a hands-on approach to the future of a global Inka Grill franchise program. Donald knows franchising, having literally written the book on the subject (two books, actually). Donald pioneered the franchise consulting industry in 1976 working with such clients as Hershey Foods, Arco, Texaco, Nutrasweet, Nestle, John Deere, Popeye's Fried Chicken, Ryder Trucks, USA Baby, and Valvoline. Donald has invaluable knowledge of the restaurant and franchise industries, and also brings with him a team of the country’s top franchise industry analysts, lawyers, sales and marketing executives to help steer Inka Grill to achieve maximum success.
Alan Rothman, CEO of Inka Grill Franchise Systems.
Alan is a serial entrepreneur and practicing attorney who is well connected with Fortune 500 CEOs and global business leaders. Alan’s primary strength lies in his ability to quickly assimilate information and develop tactical and strategic strategies that greatly enhance position in the marketplace. Alan is also well versed in the complexities of public companies and will be instrumental in guiding the company’s efforts in this regard.
Mairead Howe, VP Franchisee Management/Marketing & PR.
Mairead is a strong and strategic communicator who has had a distinguished career as Marketing and Communications Manager for The Vintners' Federation of Ireland (VFI), one of Ireland’s leading political lobby groups. Representing over 6,000 independent business owners, Mairead was responsible for the development, management and execution of all internal and external media and member driven communications. Her ability to communicate complex information into easy to understand terms is a valuable asset to the legal and commercial aspects running a service orientated business.
ABOUT NUTRIPURE BEVERAGES, INC.
NutriPure Beverages, Inc. is focused on growth and diversification in the healthy food/healthy water industries. NutriPure currently owns two subsidiaries that operate independently and synergistically: XND Technologies, Inc., which is bringing to market a complete line of nutrient-enhanced bottled water products using a revolutionary patented cold-filling process that enables the adding of organic nutrients while retaining the appearance and taste of pure water; and Inka Grill Franchise Systems, which is franchising a highly successful Peruvian restaurant concept in partnership with franchising leader Francorp, Inc. NutriPure also has signed an LOI to acquire Jayger International, Ltd., an import/export company with strong ties and long-term relationships in Asian markets. For more information visit www.nutripurebeverages.com.
Safe Harbor Statement: This release contains forward-looking statements with respect to the results of operations and business of NutriPure Beverages, Inc., which involves risks and uncertainties. The Company's actual future results could materially differ from those discussed.The Company intends that such statements about the Company's future expectations, including future revenues and earnings, and all other forward-looking statements be subject to the "Safe Harbors" provision of the Private Securities Litigation Reform Act of 1995.
NutriPure Beverages, Inc.Kenyatto Jones, CEO866-202-5256
Copyright 2008 Business Wire

Saturday, September 6, 2008

Francorp Regional Directors - Dr. Lucky Ukanwoke

PRESS RELEASE


FOR IMMEDIATE RELEASE FOR INFORMATION CONTACT:
Francorp
(443) 804-3082

Francorp Welcomes New Regional Director


(South Jersey, NJ) - Francorp is proud to announce that Dr. Lucky Ukanwoke has been appointed Regional Director of the Greater Baltimore area.

Lucky has an impressive corporate experience both as an entrepreneur and as a Franchise Consultant for over 26 years. As a British Business Management MBA;Ph.D graduate, his profile incorporates both various Local and International exposures during which he served as an international Secretary General of a City Chamber of Commerce for 7 years as well as worked and managed many other business organizations to his credit.
As an inventor, Lucky invented the “Car Float Jack”. As a distinguished Poet, he won the outstanding achievement Award by the International Society of Poets in 2005. He is also a retired International Soccer star.Lucky is a customer service oriented professional with excellent Franchise knowledge.

Francorp is acknowledged as the world's leader in franchising. Since 1976 Francorp has provided full development programs to help insure the franchise success of over 2,000 businesses. To continue helping businesses expand, Francorp has established a Regional Directors Program. This program allows representatives throughout the country to provide the necessary resources to new business interested in franchising. For more information, visit www.francorp.com or call (443) 804-3082.


# # #

Sunday, August 31, 2008

Francorp Client - USA Subs

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

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

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

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

www.francorpconnect.com

Monday, August 18, 2008

Francorp Video - Former Client, Auntie Anne's

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


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

www.francorp.com

Saturday, August 16, 2008

Francorp - Public Franchise Companies

MCD: McLovin' It
Posted By:Tom Brennan

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

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

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

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

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

www.francorpconnect.com

Monday, August 11, 2008

Marriott Being Social

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

Wednesday, July 30, 2008

Dunkin Donuts

By LAUREN SHEPHERD, AP Business Writer Wed Jul 30, 7:48 AM ET
NEW YORK - Looking to entice those hungry for a healthier option, Dunkin' Donuts will begin offering a new slate of better-for-you offerings in August.

The menu, which will debut in stores Aug. 6, will feature two new flatbread sandwiches made with egg whites. Customers will be able to choose either a turkey sausage egg-white sandwich or a vegetable one. Both will be under 300 calories with 9 grams of fat or less, the company said.
"We just felt it was important to provide some choice in our menu," said Will Kussell, president and chief brand officer.
The new menu will be called DDSmart and will include all current and new items that either have 25 percent few calories, sugar, fat or sodium than comparable products or contain ingredients that are "nutritionally beneficial," the company said.
Current products that will join the new sandwiches on the menu include a multigrain bagel and a reduced-fat blueberry muffin.
Kussell said Dunkin' will continue to add products to the menu and is currently developing several new offerings, but would not disclose any details.
Kussell said Canton, Mass.-based Dunkin' Brands Inc. will spend several million dollars marketing the new menu.
A number of restaurants have added better-for-you options to their menus in the past few years to take advantage of a trend toward healthier eating.
"We're staying very true to our brand and very true to our heritage," said the company's executive chef Stan Frankenphaler. "We're just growing and evolving."

Tuesday, July 29, 2008

FTC Report on Food Marketing to Children

Ahead of the Bell:FTC report on kid food marketing
Tuesday July 29, 6:20 am ET
FTC to report on how much food and drink makers spend on marketing to children NEW YORK (AP) -- How much major food and drink makers spend on marketing to children will be the subject of a report released Tuesday by the Federal Trade Commission. The FTC subpoenaed major food and beverage companies as part of a report prepared for Congress. A hearing was scheduled for 11 a.m. EDT in Washington, D.C.
The list of subpoenaed companies includes Burger King Holdings Inc., Campbell Soup Co., The Coca-Cola Co., General Mills Inc., Interstate Bakeries Corp., Kellogg Co., Kraft Foods Inc., Mars Inc., McDonald's Corp., Nestle USA Inc., PepsiCo Inc., Wendy's International Inc., YUM Brands Inc. and others. Also Tuesday, the Council of Better Business Bureaus will release a compliance report on the progress of the Children's Food & Beverage Advertising Initiative, a self-regulation effort. In addition to adopting internal standards for how to market to children, food makers have attempted to introduce healthier alternatives, with mixed results. Some new products include lower-calorie snack packs and cartoon-branded vegetables.

Wednesday, July 23, 2008

Mexican Restaurants (CASA)

Mexican Restaurants, Inc., through its subsidiaries, engages in the operation and franchising of Mexican-theme restaurants in the United States. The company operates casual dining restaurants under the names Casa Ole, Monterey's Tex-Mex Cafe, Monterey's Little Mexico, Tortuga Coastal Cantina, La Senorita, and Crazy Jose's; and a burrito fast casual concept under the name Mission Burritos. As of December 31, 2007, it operated 58 restaurants, franchised 18 restaurants, and licensed 1 restaurant in Texas, Louisiana, Oklahoma, and Michigan. The company was founded in 1974. It was formerly known as Casa Ole Restaurants, Inc. and changed its name to Mexican Restaurants, Inc. in 1999. Mexican Restaurants, Inc. is based in Houston, Texas.