Don Boroian

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

Boroian, Francorp eye more clients in India

2009-12-01T21:37:00.000-08:00

Francorp eyes more clients in India; to bring global brands
New Delhi, Nov 26 (PTI):
Deccan Herald
http://www.deccanherald.com/content/37997/francorp-eyes-more-clients-india.html

US-based franchise consultant Francorp International on Thursday said it expects to secure 40-50 clients in India by next year-end, besides introducing 10 global brands here.

"We expect to have at least 40-50 domestic clients, specially from the education, retail and food and beverages segments in the next one year," Francorp Chairman and CEO Donald Boroian said on the sidelines of the Franchise India 2009 summit here.

The company, he said, is eyeing a revenue of up to USD 5 million as franchise consultancy fee from the deals.

The firm is also working with some international brands and hopes to bring in at least 10 of them to India next year.

"Many firms from US and other countries, who are our clients overseas, are exploring options to foray into India and we expect at least 10 of them will launch operations here during 2010 under franchise arrangements with local partners," Boroian said.

He, however, refused to divulge the name of brands citing confidentiality but said each international client would bring bring up to USD one million as fee.

The company, which has a 40 per cent share in the US franchise consultancy market, last year formed a strategic partnership and licensing arrangement with the Franchise India Holdings Ltd (FIHL) under the name of Francorp India.

According to experts, the USD 7 billion Indian franchise market is growing at 25-30 per cent annually.

"We want to tap its immense scope, basically in franchise consulting and sales. Besides, helping Indian firms to grow and brining international ones to the country, we will also offer Indian firms to venture abroad but it will take some time," Boroian said.

The company is also looking to expand its footprints by opening offices in all four metros.

"Currently, we have only just one office, located in Delhi. Next year, we plan to open our office in Mumbai and then venture to Kolkata and Chennai," he said.

Francorp, which operates in 45 countries across the world, has global client base which include companies like American Express, Du Pont, Kodak, Ford Motor Company, Hall Mark cards, Shell Oil and KFC among others.

http://www.deccanherald.com/content/37997/francorp-eyes-more-clients-india.html

Don Boroian, The Gobal Franchise Tycoon Visits Franchise India 2009D

2009-11-12T18:54:00.000-08:00

Don Boroian, The Gobal Franchise Tycoon Visits Franchise India 2009

Don Boroian, the global franchise tycoon and the Chairman of Chicago based Francorp Inc confirms his presence at Franchise India 2009, the 7th edition of Asia's Biggest Franchise & Retail Opportunity Show to be held on 26th & 27th November 2009 at Ashoka Hotel, New Delhi.

New Delhi, Delhi, November 11, 2009 /India PRwire/ -- Don Boroian, the global franchise tycoon and the Chairman of Chicago based Francorp Inc confirms his presence at Franchise India 2009, the 7th edition of Asia's Biggest Franchise & Retail Opportunity Show to be held on 26th & 27th November 2009 at Ashoka Hotel, New Delhi. Organized by the Asia's largest integrated franchise and retail Solution Company, Franchise India, the show displays Indian and global brands and is an "Opportunity Show" for liasioning with brands and a pool of out-of-box business ideas and practices.

Don Boroian is the most widely read author, speaker and highly sought after consultant in the field of franchise strategy and business expansion. Being the biggest name in the franchise industry, his views are valued across business geographies. In 1976, Boroian founded Francorp Inc, the world's largest and oldest franchise consulting company. Providing strategic planning, legal, operations and marketing consultancy, Francorp was the first and only firm to offer its clients comprehensive franchise consulting and development services under one roof.

With over three decades of experience in the consulting space, Don Boroian has been instrumental in developing the franchise strategy for more than 10,000 companies across industry verticals and has created full franchise development programs for more than 2000 organizations worldwide. Francorp's belief in the robustness of the Indian market is backed by statistics, which highlight the fact that the Indian Franchise market is estimated to be around USD 7 billion and is growing at a steady rate 30-35 per cent annually offering a fertile market for international franchisors to expand into.

Francorp Inc. partnered with Franchise India early this year to offer end to end franchise solutions under the banner of Francorp India. Presently based in New Delhi, Francorp India is planning to set up offices in various cities in the near future. The corporation between Francorp Inc and Franchise India would help Indian franchise brands to expand their franchise network into the international markets as well.

Franchisors across the globe stand to gain immensely from this joint venture as it offers investors a deep knowledge pool to tap into. On 27th November 2009, Don Boroian would address a special "Power Breakfast" which will be attended by select group of national and international business leaders. The Breakfast meeting will be immensely useful to provide unique insights on the franchise business globally. This will be followed by a 'Conference' where Don Boroian would elucidate his views along with other eminent CEOs addressing the challenges in the franchise industry.'

Explaining the significance of these developments, Mr. Gaurav Marya, President Francorp said, "Don Boroian's visit to India is considered highly significant in the context of India's growing importance in today's globalized economy. The franchise industry has witnessed high growth rates in the Indian sub-continent since its beginning in the early 90s and there is still enormous scope for growth. India has the highest retail density in the world and franchise brands experience an 85% success rate, while start up ventures experience a 90% failure rate. This stark difference in success rates highlights the importance of franchise consulting in today's scenario. In India, Francorp is the undisputed market leader in franchise consulting domain due to its unmatched expertise and unique business approach. Our proven business strategies have helped small format businesses to chart a new trajectory of growth. By educating the industry about the inherent potential of the franchise model of business expansion our mission is to propel Industry to the next level of growth and make India a force to reckon with in the global economy."

Notes to Editor

About Francorp

For over 30 years, Francorp has been the leader in the franchise consulting industry. Globally Francorp has assisted more than 10,000 companies for expansion, and has developed more than 2,000 franchise programmes throughout the US, Japan, South Africa, Middle East, Central America, Malaysia, Philippines, Argentina, Chile and Mexico. Its notable clients include companies like Bridgestone, XEROX, Shell Oil, Hallmark Cards, Encyclopedia Britanica, Mad Science Group, Pollo Camperio, Ace Hardware, BP, Fruehauf, and Gant, to name a few.

About Franchise India

Franchise India Holding Ltd. is Asia's largest integrated franchise solution company since 1999, with an absolute authority on Franchising, Licensing, Retailing, Real estate and Marketing. The firm has already consulted numerous brands in past few years like Videocon, HP, Reebok, Store 99, Pidilite, Hauck, Xenos, HCL, MGF, Kwality Walls, Tata, Gitanjali, HSBC, Levis, JK Tyres, Lakme, D'damas, Euro Kidz, The Apollo Clinic, Chhabra 555, Kidzee, Motilal Oswal, Rosebys, Next, Welhome and many more through its media initiatives, advisory services and exhibitions. With its strategically formed divisions, FIHL has created its own niche as the pioneers of franchise industry and a small business authority.

Link to article

Don Boroian - Francorp at the Seattle Coffee Fest

2009-09-21T05:48:00.001-07:00

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

Don Boroian: Francorp

2009-07-06T05:54:00.001-07:00

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?

2009-06-23T07:31:00.000-07:00

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.

Don Boroian - Francorp Mexico

2009-06-08T06:57:00.000-07:00

Francorp Mexico talks to the Central American franchise community about Francorp's work with Ed Rensi.

Francorp Mexico is headed by Ramon Vinay and has been operating out of Mexico City for almost 20 years.

http://www.youtube.com/watch?v=tHn7PG6ZlLY

www.francorp.com

Don Boroian - Franchise Training Systems

2009-05-22T13:25:00.000-07:00

Franchising is about replication of systems. The best franchise systems in the world have the most efficient service delivery systems in place. They deliver a product to a customer and collect payment systematically and efficiently. The essence of a solid franchise organization lies in the consistency of their ability to provide this model of operation to their franchisees and to teach them the complexities of offering a service or product in a professional and quality manner. Therefore it is no surprise that great franchise companies have wonderful training systems! Francorp works with clients to try to ensure that their franchisees will receive the benefit of world class training programs. A good reference would be the coach/player relationship. A franchisor needs to be able to assume the position of coach once they begin working with franchisees. Typically a solid business is founded and operated by a star "player", the successful transition to franchising now requires that the player becomes the coach. The ability to delegate and nurture others so that they can be successful lies at the root of this transformation from business owner to franchisor.

Francorp has worked with thousands of business owners who have successfully made this transition from a one location operation into a hundred unit franchise chain. How do we begin? It starts with getting your hands dirty. The franchisee in training needs to know and completely understand every element of running the business. They should know the bathroom, supply closet, cash register, cooking operations and every bit of detail we can cram into their heads. Training programs are like boot camp, they don't pass a section until they master the finite details of each stage. When a franchise system is first built, Francorp doesn't expect clients to have or build a Hamburger University during the first stages of growth. This comes with time and revenue from the franchise growth. Even Ray Kroc didn't have a substantial operation until 30 some years into McDondald's growth. Up to that point, he ran training classes out his basement in Elk Grove Illinois. It can be done, the franchisor has to be ready to put in the time and energy needed to completely transform a "regular person" into an efficient "operator".

Training is typically held at the franchisor's corporate location for 2 to 4 weeks at a time. After these sessions are completed and the franchisee has "Graduated" then the training goes to "onsite". This stage is where the franchisor goes to the location of the franchisee and helps them get their feet wet in the field. If a location is required they might help them find the spot for the business and get the initial build out taken care of. If the franchise is a sales system, which more and more Francorp clients have, then the franchise training will largely be to make the initial sales calls with the franchise operator. The goal of the franchisor is to make successful, independent operators who make money and don't need assistance outside of a regularly scheduled support regimen.

Franchising can be a wonderful way to grow a business, but it is imperative that the proper training programs and systems are in place. Francorp has been developing these training programs for new franchise systems for over 34 years now and continues to refine and work with the newest technology available. For more information on franchise development please visit the corporate site at www.francorp.com

Don Boroian - Francorp to Exhibit at the Atlanta Franchise Exposition

2009-04-23T09:15:00.001-07:00

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

Little People's Creative Workshops

2009-03-17T05:13:00.001-07:00

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

2009-03-06T13:59:00.000-08:00

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 Strength of Franchising

2009-03-06T13:29:00.003-08:00

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 to Present at the Franchise Middle East Show

2009-03-04T05:22:00.000-08:00

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

2009-03-03T05:22:00.001-08:00

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

2009-03-01T15:07:00.001-08:00

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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Don Boroian - Francorp Consulting

2009-02-28T23:54:00.001-08:00

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.

Francorp - How to Market a Franchise

2009-02-25T21:36:00.000-08:00

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

Don Boroian - Client Success in 2009

2009-02-24T08:29:00.000-08:00

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/

How to Franchise?

2009-02-24T05:16:00.000-08:00

Can You Franchise Your Business?
Whether or not to franchise isn't an easy decision. You'll need to consider the business issues and weigh the pros and cons from an informed perspective.
Franchising as a rapid expansion tactic is one of several options you should consider for it's tremendous potential to grow your business quickly.
How does franchising work? The key is in the creation of systems which can be duplicated through training and support.
Other characteristics attractive to potential franchisees include businesses:
with a good track record of profitability.
built around a unique or unusual concept.
with broad geographic appeal.
which are relatively easy to operate.
which are relatively inexpensive to operate.
which are easily duplicated.
A good place to start is our overview of franchising. You may also access comprehensive information on how to franchise.
Despite the impressive merits, franchising is not for every business.
There is high risk in franchising any new, unproven business.
Established companies that should probably not franchise include businesses:
difficult to monitor from long distances.
requiring large numbers of employees.
with complex operations.
with low profit margins.
And being franchisable doesn't guarantee your success. Franchising the right way will help you to avoid a number of costly mistakes.
How to tell if your small business (or large business) is a prime franchise candidate.
You can quickly assess whether you are ready to franchise by taking our basic online quiz. Or, you can download our comprehensive worksheet and determine your company's franchisability for yourself at your convenience.
If you're ready to franchise, our checklist will guide you through the process.
If you're still not sure, a Francorp Franchise Analyst will discuss with you the franchisability of your business.
Other frequently asked questions about how to franchise a business:
How much time should you reasonably expect to spend in order to successfully build your franchise?
How much should you expect to pay to build a successful franchise?
What other resources are available to educate yourself about franchising?
Why Francorp? Our track record is solid. We've consulted with and provided franchising information to over 10,000 companies. We’ve helped more than 2,000 companies to successfully franchise their businesses.

Francorp Process

2009-02-24T05:14:00.000-08:00

Our Proven Franchising Method
Franchise Your Business Seminars
Want to know how franchising works? Want to know how it stacks up to other forms of expansion and what controls are in place to protect you? Attend a Franchise Your Business Seminar, held in cities across the country. Conducted by a Francorp Senior Consultant, this seminar is designed to answer your questions and provide you with a better understanding of costs, time frames and working capital typically needed to grow through franchising.
The Francorp Tour
As business owners and executives examining franchising as an expansion strategy, you are encouraged to visit Francorp's headquarters in Olympia Fields, Illinois, a Chicago suburb. Here, you are invited to tour through all of our departments, meet our staff and senior officers, and review the documents needed in effective franchise growth. Your time spent with us will allow you to gain a detailed understanding of Francorp's unique process and how this process fits your needs for expansion.
Consultation
Is franchising right for your business? How long will it take to transition your business into a franchise? What kind of costs should you expect? These are just a few of the questions that are answered when you meet with a Senior Consultant. The Francorp consultation is typically a face-to-face meeting that allows you the opportunity to obtain an impartial evaluation of your business and its readiness for franchising from a professional with strong business experience and exceptional expertise in franchising.
Franchise Development
Franchise Development is our area of expertise. Whether you are developing a brand new franchise, reworking an existing one, or converting company-owned operations, Francorp has extensive experience across a wide variety of industries. Franchise Development includes designing a strategy for expansion, legal documents, operations manuals and marketing materials. These documents are created by a team assigned to your program that works closely with your company and staff to create materials that meet your expectations and deliver franchise sales.
Franchise Sales Training
While Francorp doesn't function as a broker for our clients, as part of our Franchise services, Francorp provides franchise sales training to new and existing franchisors. Attendees are taught by industry experts with numerous years of franchise sales experience, receive a "how to" manual and personalized instruction on how to sell effectively. On an ongoing basis, Francorp provides implementation consulting to ensure that the lessons learned in the classroom work effectively in achieving sales.
Franchise Management Training
Francorp conducts a two-day Franchise Management Training course designed to educate the Client's management team on the complexities of operating and managing a growing franchise organization. Detailed and comprehensive manuals are provided to all attendees on all course segments:
Building the Franchise Organization
Training Your Franchisees
Providing Effective Field Support
Marketing as a Franchisor
Franchisor Compliance
Franchisee Relations
Franchisor Services
While franchisors have specific needs that differ from one company to another, there are some basic needs that remain the same for all franchise organizations. Franchisors need both speed and accuracy in keeping their documents in step with the current marketplace. Experience and flexibility are critical. Francorp is structured perfectly to meet these needs. From a singular document revision to a whole system audit, Francorp adapts to meet the needs of each of our clients. We have the resources and experience to assess a problem, offer solutions and implement them in a timely manner.

The Francorp Difference

2009-02-24T04:56:00.001-08:00

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

2009-02-22T14:58:00.000-08:00

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

Don Boroian and Francorp to Hold Francorp Annual Conference in Washington D.C.

2009-02-19T08:00:00.001-08:00

Dear Reader,

Francorp would like to invite you to our Annual Client Conference. This is an opportunity for you to get a "Behind the Scenes Look" at how we continue to coach and provide assistance to our clients.

This event will be held in Washington, DC at the Marriott at Metro Center, 775 12th Street NW, on Friday, March 20th from 7:30 AM to 4:00 PM. Our conference will be held in conjunction with the International Franchise Expo (IFE) held on March 20th, 21st, and 22nd. The IFE is the largest franchise show in the United States. The IFE show features nearly 300 franchisors who are set up in booths and who are presenting themselves to over 10,000 attendees and visitors who are intersted in buying franchises. We would suggest you plan on arriving in Washington, DC on Thursday evening, March 19th, attending the Francorp Annual Client Conference on Friday and then attending the IFE on Saturday and Sunday. When you notify us of your attendence, we will arrange for you to receive free admission tickets to the expo.

Our client conference will be featuring an outstanding presentation by our Executive Vice President, Tom DuFore, on "How to Exhibit in a Franchise Show or Tradeshow", and a presentation by Francorp's International offices on some of the exciting opportunities for U.S. companies to sell their master licenses in foreign countires. Represented in the program will be the heads of Francorp's operations in India, Argentina, Chile, Japan, Malaysia, Mexico, Middle East, and the Phillippines. There is no charge for your admittance to this meeting and you are free to send as many people as you like from your company.

Reservations for the event are required in order to reserve a seat to our annual conference and to allow the necessary time to send you the information for obtaining your tickets to the IFE. To reserve seats for your company, please contact one of our Franchise Anaylists at 1-800-372-6244 or tradeshow@francorp.com by March 11, 2009.

If you have not doen so already, please take a few moments to review our video on Selling Franchises in a Challenging Economy at www.francorp.com/economy.

We look forward to seeing you at the show!

Sincerely,

The Francorp Team

Own Your Own Business

2009-02-19T07:02:00.000-08:00

"Own Your Own Business" SEMINAR
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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.
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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

Don Boroian Client Success in 2009

2009-02-15T18:04:00.003-08:00

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 sold
Play Party, www.playparty.net – first franchiseAdvanced Maintenance, www.advancedmaint.com – 7th location
Sofi’s Crepes, www.sofiscrepes.com – 3rd location -1st franchise in 2009
Al’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.

Don Boroian - Franchising and The Economy

2009-01-22T06:29:00.001-08:00

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

2009-01-13T15:28:00.000-08:00

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!

Don Boroian / Francorp Clients - Amazing Spaces

2009-01-12T18:31:00.000-08:00

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

Don Boroian, How to Franchise

2009-01-06T08:00:00.001-08:00

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.

http://www.francorp.com/

Franchising in 2009

2009-01-03T11:48:00.000-08:00

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

2008-12-30T15:16:00.000-08:00

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

McDonald's urging franchisees to oppose card-check bill Email warns of dangers of pro-union legislation; 'will impact the McDonald’s system'

2008-12-29T14:26:00.000-08:00

McDonald's urging franchisees to oppose card-check bill Email warns of dangers of pro-union legislation; 'will impact the McDonald’s system'
By David Sterrett

December 8, 2008 1:29 PM ET(Crain’s Chicago Business)—McDonald’s is mobilizing its U.S. restaurant owners to fight a measure in Congress supported by President-elect Barack Obama that would make it easier for workers to unionize. In a Nov. 25 memo, McDonald’s USA President Don Thompson urged 2,400 franchisees to “contact your U.S. senators and representatives to oppose” the Employee Free Choice Act. The EFCA, or “card-check” bill, would enable unions to organize a workplace by obtaining the signatures of a majority of workers on authorization cards. Current law requires secret ballots. In addition, the legislation would establish a bargaining process that could lead to binding arbitration for labor contracts. Mr. Thompson warns franchisees of the “gravity of the issue,” saying the legislation, “if enacted, will impact the McDonald’s system.” Binding arbitration, he adds, would result in worker contracts “being written by government-appointed arbitrators who are not familiar with our business and don’t have long-term accountability for the decisions they make.” With more than 600,000 U.S. restaurant workers, many earning less than $10 an hour, the chain makes an attractive target for union organizers. Unionized employees could demand higher pay and stricter work rules in McDonald’s kitchens. “This bill is a huge threat to fast food and has the ability to impact the long-term health of the industry,” says Rick Berman, a lobbyist in Washington, D.C., for the restaurant industry. Oak Brook-based McDonald’s has formed an internal “response team” to help franchisees “actively participate in the opposition to EFCA,” Mr. Thompson’s memo says. The company also is a member of the National Restaurant Assn., which, in turn, belongs to the Coalition for a Democratic Workplace. The latter group is running ads saying the card-check bill would inhibit job growth. As it fights the bill, McDonald’s must take care not to antagonize customers who may belong to or support unions. It also needs to maintain good relations with Mr. Obama and the new Democratic power structure in Washington. The company’s political action committee—which received contributions from top executives and hundreds of franchisees—distributed $197,000 to candidates during the past election cycle, government records show. As of Oct. 15, 65% of McDonald’s contributions had gone to Republicans. The remaining 35% went to Democrats, the highest portion McDonald’s PAC has given to that party since at least 1980. Mr. Thompson personally contributed $29,500 to Mr. Obama and supporting groups. McDonald’s CEO James Skinner contributed $19,800 to Republican candidate John McCain and his supporting organizations. In a statement, McDonald’s says it is “neither anti-union nor pro-union,” but declines to comment further. Unions have been almost nonexistent in fast food in the past 25 years. Labor made numerous attempts to organize McDonald’s employees in the 1970s without success. Mr. Thompson tells franchisees to reach out to employees to “build a more confident and committed team.” Removing the secret ballot requirement would have a particularly strong effect on the fast-food industry because of its high turnover rate and large percentage of young workers who may be more easily pressured by co-workers to sign union cards, Mr. Berman says. Starbucks employees have had some success organizing in the past four years with the Industrial Workers of the World. The union represents a small number of employees in six cities, including Chicago. “We would be thrilled to have an opportunity to work with McDonald’s employees on organizing,” says a spokesman for the Cincinnati-based union.
Write to the editors at fw_editor@financialweek.com.

Jamba Juice Bringing in Oatmeal

2008-12-29T14:24:00.000-08:00

Jamba Juice joins oatmeal bandwagon

December 18, 2008
BY CHERYL V. JACKSON cjackson@suntimes.com
Jamba Juice wants to bowl over customers with its newest breakfast product. The smoothie company begins sales of oatmeal in Chicago this morning in advance of a national launch of the item next month.
Jamba, with about 700 stores, earlier this year introduced a breakfast menu nationwide.
Jamba Juice begins sales of oatmeal in Chicago Thursday morning in advance of a national launch of the item next month. (AP file)
With the oatmeal, it tries a product that's proved successful for coffee slinger Starbucks. Since its September addition oatmeal has become one of the best-selling food items in the Starbucks system, the company said.
Jamba and Starbucks join companies such as Potbelly and Corner Bakery in serving the product, playing to consumers looking for healthier, inexpensive and quick dining options.
The steel cut oatmeal, will sell for about $2.95 and come topped with sugar crumbs and bananas or apple-cinnamon or blueberry-blackberry blends.

Franchising in a Down Economy

2008-12-19T08:08:00.001-08:00

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.

Franchise India ties up with Francorp

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

Franchise India ties up with US-based Francorp
0 Comment
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.'

Don Boroian Client - Maui PlayCare

2008-12-01T09:51:00.000-08:00

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.

Francorp Client - Jersey Mike's Subs

2008-11-30T17:50:00.000-08:00

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 www.francorp.com

Francorp Opens Office in India

2008-11-24T11:12:00.000-08:00

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 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.

Don Boroian Refocuses Francorp Team

2008-11-24T04:33:00.000-08:00

The economy provides interesting obstacles for any company right now. It takes exceptional leadership to guide an organization through times like we face right now. Don Boroian has been through many difficult economic times and has risen to take on the challenge. Francorp continues to lead their industry and help make clients successful throughout the economic challenges. Francorp is behind Don Boroian and the employees support their leader and stand behind Don. Francorp has had a great year up to this point and Francorp clients have benefited from all of the support and guidance they continue to receive from the industry leader. It is times like this that the quality of the advice and support a new franchise receives is absolutely critical. Francorp has the infrastructure and talent to deliver that level of guidance that is needed for a new franchise system to be successful.

www.francorp.com

Don Boroian - Francorp at the Midwest Franchise Exposition

2008-11-23T13:49:00.000-08:00

Francorp is the world leader in franchise development and franchise consulting. Don Boroian founded the firm over 32 years ago with the express goal of helping business owners build and grow their company's throughout the U.S. and abroad. Francorp has 15 offices including the corporate headquarters based out of Chicago, IL. Francorp is the only in-house fully staffed franchise development firm and has worked with over 2,000 successful franchise systems.
Francorp works very closely with each of the franchise exibitions across the country and around the world. Francorp clients benefit by having a presence and a sales team at these shows advertising for them. For more information on Francorp and the development work that the firm has done please visit the corporate site, http://www.francorp.com/.
Seize The Opportunity! Become Your Own Bossat the Midwest Franchise & Business Opportunities Expo
CHICAGO, Illinois (May 21, 2008) – North America’s largest Franchise and Business Opportunities Expo returns to Chicago – November 22nd & 23rd, 2008 at the Schaumburg Convention Center. Over 1,800 potentialentrepreneurs - looking to become their own boss or who are in search of the perfect business partner - will explore the most opportunities ever showcased in the Midwest.
“In a recent survey, conducted by careerbuilder.com, over 84% of Americans are dissatisfied with their jobs”, states Fred Cox, President of National Event Management. “We wanted to produce an event that gave Americansand business owners the chance to meet face-to-face and explore how to make their dreams of becoming their own boss a reality.”
Showcasing over 100 proven, successful franchise and business opportunity concepts in Chicago – “The Heart of the Midwest”, the event also provides valuable educational resources and a wide range of advisors and suppliersfor future business owners. Free daily seminars from reputable and insightful professionals have information that entrepreneurs need to know. Topics include: “How to Find the Business That’s Right For You”, “Legal Aspectsof Buying a Franchise”, and “IRS Requirements When Starting a Small Business.”
The Midwest Franchise and Business Opportunities Expo takes place Saturday, November 22nd & Sunday, November 23rd at the Schaumburg Convention Center. Hours of operation are Saturday 10am-4pm and Sunday11am-4pm. For more information, visit http://www.chicagofranchiseshow.com/.The Franchise & Business Opportunities Expo is produced by National Event Management. National Event Management is the largest producer of business ownership events across North America with 27 annual FranchiseExpos showcasing over 1,700 businesses to 65,000 prospective business owners annually. For more information on National Event Management visit http://www.nationalevent.com/.
# # #

Don Boroian Continues to Lead Francorp Growth

2008-10-27T05:26:00.001-07:00

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/

Immigrants as Franchisees

2008-10-13T18:48:00.000-07:00

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

Talk to Me: Good Communication As a Business Strategy

2008-10-10T12:24:00.000-07:00

http://www.detnews.com/apps/pbcs.dll/article?AID=/20081010/BIZ/810100325/1001

September 2008 Franchising World
The cornerstone of franchisee communications is field support.
By Joe Schumacher and Robin Posey
Franchises depend a lot on trust. Like any relationship, they require open, honest communication. A good franchise relationship is a valuable business asset to be nourished and developed. By providing consistent, quality communication and field support, the franchisor creates a reservoir of good will. The ability to tap into this reservoir when something new or difficult comes along can be invaluable. The successful franchisor places great emphasis on structuring the relationship in a way that supports the needs of the franchisee consistently asking, “What information does the franchisee need from me to be successful?”
Similarly, effective franchise communication is a two-way street. Franchisors must ask, “What information do I need from the franchisee to be successful?” In many organizations, these questions are asked and answered by the field staff with the support of a team at the home office. It’s important to identify the key roles and responsibilities of effective field teams that specialize in guiding franchisees through every phase of their development. The field organization must also have counterparts at the home office to support their efforts, such as a help desk or franchise relations specialists. Careful coordination of field level and home office resources allows a franchisor to keep channels of communication open and ensure that franchisees feel supported. Equally important, successful franchisors leverage the field team as ambassadors of the franchisor’s business philosophy, culture and mission.
Support The cornerstone of franchisee communications is field support. In addition to helping the franchisor keep a finger on the pulse of its franchise community, field operations support is one of the greatest resources a franchise system can provide to its franchisees. An added benefit is that, through face-to-face visits, phone calls and e-mails, the field team can help ensure that each location is running according to the system. Coach the field staff to make the most of every phone call and in-person visit: ask good questions; bring new, useful information; take an interest in each franchisee and location; and carefully document and communicate any problems or issues.
Communication As a franchise grows, communication, especially with geographically distant franchisees, can make or break the relationship. Communication with franchisees should be clear and consistent. Reach out by phone, e-mail and in-person on a regular basis to share ideas and identify issues before they become larger problems. A franchisor’s worst nightmare is to hear, “How was I supposed to know you changed the logo?” Regular company newsletters with “It Worked for Me” tips and franchise milestones are useful, but don’t forget the personal touch. Dust off company stationery and send a handwritten note congratulating a franchisee on an accomplishment or thanking them for a great idea.
Franchisees who don’t have someone to turn to with questions and problems often find their own, less desirable answers. This can also lead to a “no one at the home office ever listens to me” attitude. Providing help desks and other points of contact for franchisees to turn to with their challenges and successes can help foster goodwill with franchisees. Make active listening a priority. Franchisees should feel comfortable picking up the phone with any concerns, at any time. Train home office personnel to listen patiently and identify solutions. As always, documenting this communication is a key step. Here’s the bad news: there will sometimes be conflict between franchisees and franchisors. Resist the urge to bury your head in the sand and hope the problem will disappear. It probably won’t. Conflicts often go from bad to worse when field staff and home office personnel ignore concerns from the field. It’s easy to call the most satisfied franchisee, but it’s the consistent and open communication one has with an unhappy franchisee that can save the brand time, dollars and frustration in the long run.
Gatherings Regional meetings can be fun and informative. Annual conventions provide a great opportunity for the franchisor to communicate with franchisees about policy changes, best practices and new ideas. These types of events also give franchisees the chance to share issues and successes with their fellow franchisees, a valuable opportunity. Goddard Systems Inc. takes advantage of the annual convention to recognize its top franchisees through recognition and awards for their efforts. Gatherings give the franchisor a platform for introducing new staff, vendors and ideas to the franchisee community. Lastly, gatherings are a way to build momentum with new products, services, programs and initiatives.
Innovation One of the franchisor’s greatest responsibilities is to keep the product or service fresh and to keep franchisees informed of trends in their field, as well as trends in business management. This can be accomplished through research and development, focus groups and through partnerships with industry experts. Is your company flexible and open to change? Technology is here to stay. Use it to enhance franchisee communication through e-mail, e-newsletters and blogs. Company Web sites or Web portals can be used to streamline reporting, make forms and templates readily available and answer frequently-asked questions.
Philosophy If a company culture is not franchisee-focused, it’s time to start shifting. Respect for franchisees, coupled with positive day-to-day interactions between field staff and franchisees, combine to create great franchise relationships. Even inspections by the franchisor can be a positive experience, when a company has established trust and respect with franchisees. Always be sure to recognize what’s good at the franchise, even if areas of improvement need to be highlighted. Franchisees want to know that the franchise organization sees the entire picture, not just the negative. Also, build some flexibility into inspections. If something truly unusual happened recently, the field inspector should be able to account for that in scoring.
Develop core company values, and coach field staff to put them into practice. For instance, at GSI, all phone calls and e-mails from franchisees must be returned within 24 hours. Employees also know that it’s their job to “close the loop.” The advertising executive knows that if a franchisee asks a question about construction, it’s his responsibility to get the franchisee to the right person and to make sure the question gets answered. It’s a cliché, but is your franchise a team? It is essential that both franchisee and franchisor understand that the success of one depends on the success of the other. Franchisees should know that their opinions are needed and valued. Encourage feedback, especially around big shifts and new programs. Ask the best of the best in your franchise for their input on issues big and small, and then enlist their support as new programs are rolled out. Tap successful franchisees to mentor new or struggling franchisees. Maintaining healthy franchise relationships is a full time job. Keep current, stay flexible and promote positive interactions. Home office employees with clear communication, good listening habits and open minds ultimately make for happy, successful franchisees. Joe Schumacher is chief operating officer and Robin Posey is franchisee liaison of Goddard Systems, Inc. They can be reached at jschumacher@goddardsystems.com and rposey@goddardsystems.com.

Francorp Client - American Prosperity Group

2008-10-10T06:49:00.001-07:00

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 Client - Plains & Prints

2008-10-03T06:55:00.000-07:00

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

2008-10-03T05:35:00.000-07:00

What’s Up Dog to Expand Through Franchising
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

###

Franchising - The #1 Way to Expand Your Business - Francorp Partner

2008-09-30T06:02:00.000-07:00

Business Insight
FRANCHISING – The #1 Way To Expand Your Businessby 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

Economy Bailout

2008-09-28T09:29:00.000-07:00

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

2008-09-28T09:21:00.001-07:00

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

2008-09-28T09:15:00.001-07:00

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

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

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 Units Outperform Company Owned Units

2008-09-26T07:39:00.001-07:00

Sonic says comps fell for co. units, rose for franchisees

OKLAHOMA CITY (Sept. 24, 2008) Sonic Corp. said late Tuesday that systemwide same-store sales were “slightly negative” for its fourth quarter ended August 31, as franchised restaurants posted gains but corporate or joint-venture locations recorded “significantly negative” results.
Analysts that follow Sonic, the operator or franchisor of more than 3,400 drive-thru restaurants, 20 percent of which are Sonic owned, pegged the corporate same-store sales decrease between 5 percent and 7 percent. The latest result was a deceleration from third-quarter trends when corporate same-store sales dipped 3.9 percent. For the full fiscal year, also ended Aug. 31, Sonic’s systemwide same-store sales were positive, the company reported, led by franchised locations.
In addition to weaker sales, Sonic reported that increased commodity and labor costs led to “unfavorable” restaurant margins for the quarter and year. Yet, with franchisees new unit openings, rebuilding, and remodeling the company expects to post a small increase in annual per-share earnings, Sonic said.
Full fourth-quarter and fiscal 2008 results are expected Oct. 16.
Sonic also said it would refine its current growth and operating strategy by starting a refranchising initiative to reduce the number of corporate locations to between 12 percent and 14 percent of the system. The company will seek to sell underperforming locations to franchisees.
“The performance of our partner drive-ins has lagged well behind that of our franchisees,” said Sonic’s chairman and chief executive, Cliff Hudson. “Reducing the number of partner drive-ins we operate will allow us to improve sales and operations for remaining partner drive-ins while we continue to emphasize new store development, promotions and other initiatives to drive sales for the entire system.”
For the current fiscal year 2009, Sonic said it expected the opening of between 155 and 165 franchised locations, between 20 and 25 corporate restaurants and positive same-store sales growth for the system, even with flat same-store sales at corporate locations. Earnings per share are expected to increase between 12 percent and 14 percent in 2009, the company said.

L. Patrick Callaway - President of Francorp, Inc.

2008-09-25T05:23:00.000-07:00

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.

L. Patrick Callaway
President
Francorp, Inc.
http://www.francorp.com/

Don Boroian - Franchise Sales Strategies

2008-09-23T11:30:00.001-07:00

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

Is Franchising Right for Me? SBA Workshop

2008-09-22T06:00:00.000-07:00

WORKSHOP INTRODUCTION
IS FRANCHISING FOR ME?
WORKBOOK

Training Module - 1
Workshop Objectives
By the end of this workshop, you should be able to:
* Define franchising.
* Determine whether franchising is the best business option for you
- evaluate your skills and experience
- identify your reasons for purchasing a franchise
- personal characteristics
- personal conditions
- experience.
* List
- advantages of franchising for both the franchisor and franchisee
- disadvantages of franchising for both the franchisor and franchisee
* Identify franchisor's responsibilities.
* Determine what is contained in a franchise package.
* Understand the franchise contract
- legal implications
- your rights and obligations as a franchisee
- financial statements, contracts and receipts
- trademarks and copyrights
- restrictions on goods and services to be offered by franchisees
- renewal, termination and sale of the franchise
____________________________________________________________________________________________
_
BUSINESS FORMATTING - WHAT IS FRANCHISING?
Deciding whether or not to go into business is a very important step in the business start-up process for new and
potential small business owners. Each year, thousands of entrepreneurs and potential entrepreneurs are faced with
this difficult decision. Because of the risk and the amount of work involved in starting a new business, many new
and potential small business owners choose franchising as an alternative to starting a new, independent business.
Although the success rate for franchise-owned businesses is significantly better than the success rate for many
independent businesses, there is no formula to guarantee success. One of the biggest mistakes you can make is to
be in a hurry to get into business. That's why it's important to understand your reasons
for going into business, and to determine if owning a business is right for you.
If you are concerned about the risk involved in a new, independent business venture, then franchising may be the
best business option for you. Remember, however, that hard work, dedication and sacrifice are key elements in the
success of any business venture, including franchising.
WHAT IS FRANCHISING?
A franchise is a legal and commercial relationship between the owner of a trademark, service mark, trade name or
advertising symbol and an individual or group seeking the right to use that identification in a business. The
franchise governs the method of conducting business between the two parties. Generally, a franchisee sells goods
or services supplied by the franchisor or sells goods or services that meet the franchisor's quality standards.
Franchising is based on mutual trust between the franchisor and franchisee. The franchisor provides the business
expertise (i.e., marketing plans, management guidance, financing assistance, site location, training, etc.) that
otherwise would
not be available to the franchisee. The franchisee brings to the franchise operation the entrepreneurial spirit and
drive necessary to make the franchise a success.
While forms of franchising have been in use since the Civil War, enormous growth has occurred in franchising
only recently. By the end of 1985, 500,000 establishments in 50 industries achieved gross sales of over half a
trillion dollars and employed 5.6 million full and part-time employees. Franchising created 18,500 new businesses
in 1991 and approximately 108,000 new jobs to the economy. Business format franchises experienced sales growth
of 8.9 percent from $213.2 billion in 1990 to 232.2 billion in 1991. Industries that rely on franchised businesses to
distribute their products and services touch every aspect of life from automobile sales and real estate to fast foods
and tax preparation. Thus, we can see that franchising can be is a viable, lucrative business alternative.
There are primarily two forms of franchising:
* product/trade name franchising and
* business format franchising.
In the simplest form, a franchisor owns the right to the name or trademark and sells that right to a franchisee. This
is known as "product/trade name franchising." In the more complex form, "business format franchising," a broader
and ongoing relationship exists between the two parties. Business format franchises often provide a full range of
services, including site selection, training, product supply, marketing plans and even assistance in obtaining
financing.
____________________________________________________________________________________________
_
SELF-PACED ACTIVITY
During this activity you will:
* List at least three reasons for going into business.
* Identify the type of business you are interested or may be interested in operating.
____________________________________________________________________________________________
_
IS FRANCHISING FOR YOU?
As with any business, the first step in determining whether or not to enter into the venture is to assess your reasons
for going into business. If you feel you need a change, or you're tired of having other people tell you what to do,
then you should reassess your decision before investing your time, money and energy because operating a business
requires more than a need for a change, or the desire to do as you please. Purchasing a franchise like any other
business requires a total commitment of your time, energy and financial resources. If you are not prepared to invest
these qualities and resources into your franchise, then you
should stop at this point.
EVALUATING YOUR SKILLS AND EXPERIENCE
Identify Your Reasons
As a first and often overlooked step, ask yourself why you want to purchase a franchise. This question, although
basic, is an excellent way of evaluating your reasons for going into business. List every reason you identify, no
matter how farfetched it may seem. Divide your list into two separate components. Separate the viable reasons from
the trivial reasons and categorize them accordingly. It isn't unusual for reasons to range from the desire to be your
own boss to the desire to be a billionaire. Whatever your reasons, remember that your future is at stake so try to be
objective. Your checklist should include reasons such as these (check each that applies to you):
YES
* Freedom from the 9-5 daily work routine ______
* Being your own boss ______
* Doing what you want when you want to do it ______
* Improving your standard of living ______
* Bored with your present job ______
* Have a product or service for which there is a demand ______
Some reasons are better than others, none are wrong; however, be aware of tradeoffs. For example, you can escape
the 9-5 daily routine, but you may replace it with a 6 a.m. to 10 p.m. routine.
After assessing your reasons for going into business, next conduct a self analysis to determine if you possess the
personal characteristics needed to be a successful franchise owner. Consider questions such as:
Personal Characteristics
YES NO
1. Are you a leader? _____ _____
2. Do you like to make your own decisions? _____ _____
3. Do others turn to you for help in making
decisions? _____ _____
4. Are you willing to accept managerial assistance
from the franchisor? _____ _____
5. Are you willing to comply with the provisions
outlined in the franchise contract? _____ _____
6. Do you enjoy competition? _____ _____
7. Do you have will power and self discipline? _____ _____
8. Do you plan ahead? _____ _____
9. Do you like people? _____ _____
10. Do you get along well with others? _____ _____
Personal Conditions
These questions cover the physical, emotional and financial strains you will encounter operating a franchise.
YES NO
1. Are you aware that running your own franchise
will require working 12-16 hours a day, six days
a week, and maybe even on Sundays and
holidays? _____ _____
2. Do you have the physical stamina to handle the
work load and schedule? _____ _____
3. Do you have the emotional strength to
withstand the strain? _____ _____
4. Are you prepared, if needed, to temporarily
lower your standard of living until your
franchise is firmly established? _____ _____
5. Is your family willing to go along with the
strains they, too, must bear? _____ _____
6. Are your prepared to invest, and possibly lose,
your savings? _____ _____
Answering "yes" to any of these questions means that you have some of the skills needed to operate a successful
franchise; a negative answer means that you may have to acquire these skills or hire personnel to supply them.
Experience
Certain skills and experience are critical to the success of a business. Since it is unlikely that you possess all the
skills and experience needed, you'll need to hire personnel to supply those you lack. There are some basic and
special skills you will need for the particular franchise you purchase. By answering the following questions, you
can identify the skills you possess and those you lack (i.e., your strengths and weaknesses).
YES NO
1. Do you know what basic skills you will need to
operate a successful franchise? _____ _____
2. Do you possess those skills? _____ _____
3. When hiring personnel, will you be able to
determine if the applicants' skills meet the
requirements for the positions you are filling? _____ _____
4. Have you ever worked in a managerial or
supervisory capacity? _____ _____
5. Have you ever worked in a business similar to
the franchise you want to purchase? _____ _____
6. Have you had any business training in school? _____ _____
7. If you discover that you don't have the basic
skills needed for your franchise will you be
willing to delay your plans until you've
acquired the necessary skills? _____ _____
When you complete your self-analysis, discuss your results with your family and financial advisor. Their feedback
can help you make the right decision. If you all agree that you have most of the skills needed to operate a successful
franchise, then you should feel comfortable proceeding with your plans. If, however, they feel you lack most of
these skills, then you may need to consider delaying your plans until you are better prepared. Above all, be honest
and objective with yourself; after all, it is your future.
A more detailed self-analysis, the "Small Business Entrepreneur's Checklist," is located in Appendix I. This
checklist is designed to assist you in determining what you actually know about operating a business, and the skills
you will need to do so. Review it carefully before deciding whether or not to purchase a franchise or to go into
business. If you discover that you lack many of the skills needed to operate a successful franchise, you may need to
take some training courses or hire personnel to compensate for these deficiencies.
Once you are certain that your reasons for going into business and the franchise you've selected are viable, gather
the information that you will need to make an informed decision from sources, such as: 1) a directory of franchises,
e.g., the Franchise Opportunities Handbook (published by the U.S. Department of Commerce), 2) the disclosure
document, 3) current franchisees, 4) other references, such as U.S. Small Business Administration (SBA), Federal
Trade Commission (FTC), Better Business Bureau, local chambers of commerce and 5) professional advisors.
Many new small business owners choose franchising over starting a new business because it provides easy access to
an established product, reduces many of the risks involved in opening a new business, provides access to proven
marketing methods and in some instances provides assistance in obtaining start-up capital from financing sources.
Franchising can be advantageous as well as disadvantageous to both the franchisee and franchisor. A few of the
advantages and disadvantages are listed below. Study these factors carefully before choosing the franchise option.
FRANCHISEE
Advantages Disadvantages
- established product or service - failed expectations
- technical & managerial assistance - service costs
- quality control standards - overdependence
- less operating capital - restrictions on freedom of ownership
- opportunities for growth - termination of agreement
- territorial franchisee
- right of subfranchisees
- operating franchisee no rights - performance of other franchisees
FRANCHISOR
Advantages Disadvantages
- expansion - company-owned vs franchised units
- limited risk
- limited capital
- equity investment
- motivation - problems with recruitment
franchisee highly motivated
- operation of non-union business - communication
- bulk purchasing - freedom
- cooperative advertising
____________________________________________________________________________________________
_
SELF-PACED ACTIVITY
During this activity you will:
* Determine if franchising is for you by listing at least five reasons why you should choose franchising over
starting a new, independent business.
* List sources where you can gather information to help you make an informed decision on choosing
franchising as an alternative to starting a new business.
* Determine if you have the skills needed to own and operate a successful franchise.
____________________________________________________________________________________________
_
IDENTIFYING THE FRANCHISOR'S RESPONSIBILITIES
An important step in making an informed decision about purchasing a franchise is to know the responsibilities the
franchisor is legally obligated to fulfill. One of the toughest decisions any entrepreneur faces is whether or not to
purchase a franchise. And while buying a franchise means obtaining a complete system of
doing business, there is no guarantee for success.
Being aware of the franchisor's responsibilities takes some of the guess work out of the decision making process.
Learn as much as you can about the franchise and the franchisor's obligations before entering a purchase
agreement, or even before meeting with the franchisor or his or her representative to discuss the possibility of
purchasing a franchise.
Fourteen states have franchise disclosure or registration laws that require the franchisor to prepare documents for
submission to state authorities. The FTC requires in all states that a lengthy disclosure document, as well as
financial statements, be given to franchisees before purchasing the franchise. In addition to state filing fees,
printing and accounting and legal expenses, the franchisor must develop internal controls and policies to ensure
ongoing compliance with regulations.
Franchisors are obligated to:
1. Give you a copy of the Uniform Franchise Offering Circular (UFCO) at least 10 days before you sign the
agreement. If you meet face to face with the franchisor's representative and have serious discussions
concerning the purchase of the franchise, the UFCO also must be given to you at this time.
2. Give you a copy of the franchise agreement, other contracts and the franchisor's financial statements. The
franchisor, however, cannot, under federal law, make claims concerning the amount of money you will
make. The UFCO will disclose estimates of all initial start-up costs.
3. Provide one week of training to you, the franchisee, and your manager in one of the parent stores, the
operational manual and ongoing support and assistance to you and other franchisees.
4. Provide guidelines on audits and assignment procedures and any extra franchisor criteria for approving an
assignment (e.g., ownership rights - franchisee rights to sell the franchise if it becomes successful).
5. Provide information on franchisee's initial fees and other costs (e.g., royalties, promotional fees).
Franchisors should:
6. Provide a marketing plan, promotional materials and area site selection assistance to franchisees.
7. Provide adequate insurance coverage for franchises.
Insurance coverage generally includes:
- fire insurance
- inventory insurance
- burglary insurance
- workmen's compensation
- accident and health insurance
- use and occupancy insurance
- general liability insurance
- automobile insurance (may be optional depending on franchise type)
8. Provide a trademark or service mark that is known, or will be known through advertising in the
geographic area of use.
9. Provide guidelines on the purchase of inventory and equipment, requirements on restrictions on goods
sold and the terms of agreement and renewal.
Most of these responsibilities are or should be included in the UFOC document, but since there are no uniform
regulations governing the operation of franchises in any given state, make sure the UFOC document complies with
the FTC's regulations, and the regulations of the state in which you plan to purchase the franchise. Review the
UFOC document carefully with your attorney before signing the purchase agreement.
____________________________________________________________________________________________
_
SELF-PACED ACTIVITY
During this activity you will:
* Identify issues you need to be aware of as a franchisee.
____________________________________________________________________________________________
_
DETERMINING WHAT THE FRANCHISE PACKAGE CONTAINS
After gathering all the information you will need to make an informed purchase decision, carefully examine this
information with your attorney, accountant or business advisor ensuring that it is addressed in the franchise
contract. Think carefully about the level of independence you will maintain as a franchisee and how comprehensive
the operating controls will be. Be very clear about the cost of purchasing the franchise and the documents that
make up the franchise package.
You can obtain information on franchising from: 1) a directory of franchises, 2) the disclosure document, 3)
current franchisees, 4) other references, such as SBA, FTC, Better Business Bureau, local chambers of commerce,
5) professional advisors and 6) reference materials on franchises from the local library.
Your franchise package should contain the following information:
* The full initial costs and what they cover.
* Licensing fees.
* Land purchase or lease.
* Building construction or renovation.
* Equipment.
* Training.
* Starting inventory.
* Promotional fees.
* Use of operations manuals.
* Continuing costs related to the franchisor.
* Royalties.
* Ongoing training.
* Cooperative advertising fees.
* Insurance.
* Interest on financing.
* Requirements regarding purchasing supplies from the franchisor, and if the prices are
competitive with other suppliers.
* Restrictions as they apply to competition with other franchisees.
* Terms covering renewal rights and resale of the franchise.
In reviewing the franchise contract with your attorney, familiarize yourself with the language. Be aware of terms
such as hold harmless clauses, integration clauses and choice of venue or choice of law provisions. These terms
may favor the franchisor over you if improprieties arise during or after the settlement process.
Hold harmless clauses - may require that you release the franchisor from specific acts or
violations of state laws.
Integration clauses - may prevent you from successfully suing for any deceptions preceding the
signing of the contract.
Choice of venue or choice by law provisions - are especially important if the franchisor has
headquarters in another state. These clauses may dictate that you settle all disputes in your
franchisor's state of residence and settle your claim under laws favorable to the franchisor.
Other important clauses to consider deal with severance, renewal and transfer of the franchise.
Again, use professional help when examining the franchise contract. And, remember some of the contract terms
may be negotiable. Find out which terms are negotiable before you sign; otherwise, it will be too late.
____________________________________________________________________________________________
_
SELF-PACED ACTIVITY
During this activity you will:
* List some of the information that should be contained in the franchise package.
* Identify sources where you can obtain information on what the franchise package should contain.
____________________________________________________________________________________________
_
UNDERSTANDING THE FRANCHISE CONTRACT
The franchise contract, like the UFOC, is a very important document. The contract is probably the most important
document in the transaction process. It is a legal commitment which is binding on both the franchisor and
franchisee. In the franchise contract, the franchisor's promises must be presented to the franchisee in writing and
subjected to careful scrutiny. During this stage of the buy/sell process, the franchisee must have competent legal
advice regarding the meaning and effect of the contract.
When reviewing the contract, you and your attorney will need to determine if it confirms what you have been told.
If you find improprieties in the contract at this point, you may decide to withdraw from the transaction before
committing your time, energy and money to an agreement that may not be beneficial for you. If, however, you
choose to continue with the process, you may be able to negotiate favorable terms, but remember by signing the
contract, you are legally bound by the provisions of the agreement.
The franchise contract consists of two main parts: 1) the purchase agreement and 2) the franchise or license
agreement. For convenience, occasionally the franchise transaction is split into two stages. When this happens,
some franchise companies have two contracts, one for each stage, rather than a single contract. While it isn't
necessary to have two contracts, it can be the better method where there is a comprehensive equipment and initial
services package.
The purchase agreement of the contract covers:
* the franchise package
* the price
* the services to be provided.
The franchise or license agreement covers:
* the rights granted to the franchisee
* the obligations undertaken by the franchisor
* the obligations imposed upon the franchisee
* trade restrictions imposed upon the franchisee
* assignment/death of franchisee
* termination provisions.
A brief explanation of each agreement follows.
PURCHASE AGREEMENT
1. The franchise package. Consists of an equipment or inventory list. This list must contain all the items the
franchisee has been told to expect. Some franchise companies regard this list as being confidential and
stipulate in the contract that it must be so treated.
2. The price. The price and the manner of payment will be specified. This may be cash on signature,
although rare. More often a deposit is required on signature with payment of the balance to follow on
delivery of the equipment or at other stages of the transaction.
3. The services to be provided. This section outlines or lists the franchisor's responsibilities to the franchisee.
Those services the franchisor is required to provide the franchisee before he or she is ready to open for
business are called the initial services. Those services the franchisor provides periodically are called
continuous services. A more detailed explanation of the services provided by the franchisor are included in
the next section on the license agreement.
FRANCHISE OR LICENSE AGREEMENT
1. The rights granted to the franchisee. The franchisee will be given the right as it applies to particular
circumstances. As a franchisee there are certain rights that are extended to you.
Your rights include:
* use of trademarks, trade names and patents of the franchisor.
* use of the brand image and the design and decor of the premises developed by the franchisor.
* use of the franchisor's secret methods.
* use of the franchisor's copyright materials.
* use of recipes, formulae, specifications and processes and methods of manufacture developed by
the franchisor.
* conducting the franchised business upon or from the agreed premises strictly in accordance with
the franchisor's methods and subject to the franchisor's directions.
* guidelines established by the franchisor regarding exclusive territorial rights.
* rights to obtain suppliers from nominated suppliers at special prices.
2. The obligation undertaken by the franchisor. This item in the contract tells prospective franchisees what
the franchisor will do for them both before and after start-up. That is why this item frequently refers to
specific contractual obligations detailed in the franchise agreement, which is attached to the UFOC.
3. The obligations imposed upon the franchisee. Certain obligations are required of you by the franchisor.
These obligations include:
* to carry on the business franchised and no other business upon the approved and nominated
premises.
* to observe certain minimum operating hours.
* to pay a franchise fee.
* to follow the accounting system laid down by the franchisor.
* not to advertise without prior approval of the advertisements by the franchisor.
* to use and display such point of sale advertising materials as the franchisor stipulates.
* to maintain the premises in good, clean and sanitary condition and to redecorate when required
to do so by the franchisor.
* to maintain the widest possible insurance coverage.
* to permit the franchisor's staff to enter the premises to inspect and see if the franchisor's
standards are being maintained.
* to purchase goods or products from the franchisor or his designated suppliers.
* to train your staff in the franchisor's methods to ensure that they are neatly and appropriately
clothed.
* not to assign the franchise contract without the franchisor's consent.
4. Trade restrictions. The restrictions imposed upon a franchisee may prohibit him or her from carrying on a
similar business except under franchise from the franchisor, taking staff away from other franchisees,
carrying on a similar business in close proximity to other franchised businesses within that chain, and
continuing, after termination of the franchise contract, to use any of the franchisor's trade names, secrets,
and so forth.
5. Assignment/death of the franchisee. The franchisee should ensure that in the event of death his/her
personal representative or dependent will be able to keep the business going until one of them can qualify
as a franchisee, and that arrangements can be made to keep the business going until a suitable assignee
can be found at a proper price.
6. Termination provisions. The termination of a franchise is an event heavily regulated by the franchise laws
of 17 states. Franchise relationship laws in many states specify the conditions under which a franchisor
may terminate or refuse to renew the franchise, imposing a standard of "good cause," "reasonable cause"
or "just cause" as defined by those laws. Minimum advance notice usually has an opportunity to cure the
default and avoid termination; notice ranges from five days to 90 days. Many states also specify
circumstances under which the standard notice and cure requirements need not be met.
In view of the close working relationship that must exist between the franchisee and franchisor all provisions must
be stated clearly in the contract. In this transaction, no small print should exist. Make sure, if possible, the
franchise contract contains provisions that are favorable for both you and the franchisor.
____________________________________________________________________________________________
_
SELF-PACED ACTIVITY
During this activity you will:
* List at least four rights and four obligations you as the franchisee are entitled to and required to fulfill.
____________________________________________________________________________________________
_
APPENDIX 1
SMALL BUSINESS ENTREPRENEUR'S CHECKLIST
A. Business Planning and Management Limitations
B. Market Analysis
C. Marketing Strategy
D. Financial Controls
E. Personnel Function
F. Operation, Organization and Special Areas
____________________________________________________________________________________________
_
SMALL BUSINESS ENTREPRENEUR'S
CHECKLIST
A. Business Planning and Management Limitations
1. Do you know your own personal management assets and liabilities?
_____ yes _____ partially _____
no
2. Do you have a written small business plan covering 1 to 5 years?
_____ yes _____ partially _____
no
3. Can you concretely define what product or service franchise you are in?
_____ yes _____ partially _____
no
4. Can you describe in writing what business franchise you are in?
_____ yes _____ partially _____
no
B. Market Analysis
5. Do you know in detail what factual market conditions and government requirements impact on
your franchise?
_____ yes _____ partially _____
no
6. Do you know your specific geographic and demographic market areas?
_____ yes _____ partially _____
no
7. Do you know your market area business and franchise competitor by name, organization, size
and gross sales?
_____ yes _____ partially _____
no
8. Can you describe in writing the strengths and weaknesses of competitors in your defined market
areas?
_____ yes _____ partially _____
no
C. Marketing Strategy
9. Can you identify in a written business plan what advantages your franchise's products or services
have over specific competitors?
_____ yes _____ partially _____
no
10. Based on the guidelines from the franchisor, can you describe in writing how your products and
services are distributed or sold?
_____ yes _____ partially _____
no
11. Based on the guidelines from the franchisor, do you know what sources of supplies and costs are
required to operate your franchise?
_____ yes _____ partially _____
no
D. Financial Controls
12. Can you detail the specific monthly cash and credit requirements of your franchise?
_____ yes _____ partially _____
no
13. Do you maintain a file of and stay aware of the advantages of small business computer planning,
accounting, financial management and marketing controls?
_____ yes _____ partially _____
no
14. Do you use Standard Financial Industry Ratios as a guide to measure your franchise's annual
performance?
_____ yes _____ partially _____
no
15. Do you maintain written costs of sales, breakeven analyses, profit and loss statements and
appropriate accounting journals?
_____ yes _____ partially _____
no
E. Personnel Function
16. Do you know how much personnel money your franchise spends on human resource development
as compared to competitors?
_____ yes _____ partially _____
no
17. Do you know exactly what employee benefits cost your franchise?
_____ yes _____ partially _____
no
Do you know the impact when compared with industry standards?
_____ yes _____ partially _____
no
18. Based on guidelines from the franchisor, do you have a detailed personnel plan for the
management staff, clerical and specific labor (i.e., part-time, union) required to operate your
franchise?
_____ yes _____ partially _____
no
F. Operation, Organization and Special Areas
19. Based on guidelines from the franchisor, do you have a detailed building or facility plan which
documents the space required to operate the business?
_____ yes _____ partially _____
no
20. Do you know why your business is a franchise and the legal limitations or advantages of this
business form?
_____ yes _____ partially _____
no
21. Do you use specialized consultants on a pre-planned basis for accounting, legal, tax, insurance,
employee benefits and other critical business operational areas?
_____ yes _____ partially _____
no

www.francorp.com

SBA Franchise Program for Buying a Franchise

2008-09-22T05:24:00.001-07:00

Buy a Franchise

SBA Program Office SBA Programs 8(a) Business Dev.

Advocacy Banking CFO CIO Disaster Assistance Entrepreneurial Dev. Faith Based Comm. Init Financial Assistance Freedom of Information GCBD Goaling Program Government Contracting Hearings and Appeals HUBZone Inspector General International Trade Investment (SBIC) Lender Oversight Native American Affairs NAC Ombudsman Press Office SBDCs SCORE Size Standards SDB Surety Guarantees Technology (SBIR/STTR) Veterans Womens Bus.
Franchising Overview

Buying a Franchise

An important step in the small business startup process is deciding whether or not to go into business at all. Each year, thousands of potential entrepreneurs are faced with this difficult decision; because of the risk and work involved in starting a new business, many new entrepreneurs choose franchising as an alternative to starting a new, independent business from scratch.

One of the biggest mistakes you can make is to hurry into business, so it's important to understand your reasons for going into business, and determine if owning a business is right for you.

If you are concerned about the risk involved in a new independent business venture, then franchising may be the best business option for you. But remember that hard work, dedication, and sacrifice are essential to the success of any business venture, including franchising.

What is Franchising?

A franchise is a legal and commercial relationship between the owner of a trademark, service mark, trade name, or advertising symbol and an individual or group wishing to use that identification in a business. The franchise governs the method of conducting business between the two parties. Generally, a franchisee sells goods or services supplied by the franchiser or that meet the franchiser's quality standards.

Franchising is based on mutual trust between the franchiser and franchisee. The franchiser provides the business expertise (marketing plans, management guidance, financing assistance, site location, training, etc.) that otherwise would not be available to the franchisee. The franchisee brings the

entrepreneurial spirit and drive necessary to make the franchise a success.

There are primarily two forms of franchising:

Product/trade name franchising and
Business format franchising.
In the simplest form, a franchiser owns the right to the name or trademark and sells that right to a franchisee. This is known as product/trade name franchising. The more complex form, business format franchising, involves a broader ongoing relationship between the two parties. Business format franchises often provide a full range of services, including site selection, training, product supply, marketing plans, and even assistance in obtaining financing.

To learn more about:

The advantages and disadvantages of franchising
The franchiser's responsibilities
What is contained in a franchise packet
Understanding the franchise contract
Read:

SBA's "Is Franchising for Me?" Workbook (.pdf file)
Franchise Registry
Franchise Directories & Evaluation
For additional information

Consumer Guide to Buying a Franchise

How to Succeed As a Franchisee

2008-09-22T05:12:00.000-07:00

How to Succeed As a Franchisee
How-To

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.

Marketing a Business

2008-09-22T04:58:00.000-07:00

Beauty Game:
Being Viewed
As 'Natural'
By ELLEN

Proving that your brand is more authentic than the competition's is always difficult for marketers. For the increasingly crowded category of "natural" beauty products, that task is particularly challenging. That's why Burt's Bees, owned by Clorox Co., and a handful of other brands that try to minimize their use of synthetic ingredients have developed a certification process by which they can officially claim their right to call their products "natural."

Burt's Bees
Mike Indursky of Burt's Bees

In August, Burt's Bees products, including lip balm and body oil, began hitting store shelves affixed with a Natural Products Association seal. The sticker promises that at least 95% of ingredients are natural or derived from natural sources, that they have no "potential suspected human health risks" and that development processes haven't significantly altered the effect of the natural ingredients, among other criteria.

Mike Indursky, Burt's Bees' marketing chief, led the brand's involvement in the certification. Prior to joining Burt's Bees, Mr. Indursky held senior marketing roles with L'Oréal's Garnier hair-care line and Maybelline cosmetics as well as Unilever's cosmetics. Below, he discusses shoppers' confusion with natural products, how his all-natural brand has been affected by being purchased last year by Clorox and his approach to maintaining a small-brand feel as business grows.

WSJ: Why does Burt's Bees need its naturalness certified?

Mr. Indursky: We did a study last year that found that 78% of women believe that when they see the word "natural" on a product, that some governing body is regulating what's in there. That's not the case. And 97% of women told us they want some sort of regulation. We felt we had a responsibility to explain to people what natural is, and what natural isn't, so they can make the most informed choice. We worked with the Natural Products Association and our competitors to develop the criteria.

WSJ: Many have attempted and failed to develop similar seals. Why do you think this one will work?

Mr. Indursky: You've got the Natural Products Association, a non-government, nonprofit, third-party organization that's leading this. Before, a lot of efforts were simply from manufacturers. Also, the companies that joined really are the leaders in natural personal care, so that's a big difference.

WSJ: Several European countries have natural label standards. Why is the U.S. so slow to adopt one?

Mr. Indursky: The trend of inner and outer well-being is more highly developed in Europe. The U.S. is slower, but it has picked up significantly -- if personal-care sales here are growing at 3%, natural personal-care sales are about five times that amount.

WSJ: Since the standards are devised by the participating companies rather than a government agency, isn't there a risk that this seal could be perceived as even more marketing hype?

Mr. Indursky: That would be risky if it weren't for the National Product Association's leadership over it, and their use of third-party certifiers. The brands have no inclusion over the certification process.

WSJ: How do you tackle shoppers' confusion with natural products?

Mr. Indursky: Right now anyone can have a bottle that is green with some flowers on it and call it "natural." Burt's Bees approaches this in two ways: We helped develop this certification standard, and we developed more education efforts through our Web site and an ad campaign that explains our ingredients and what a natural product really is.

WSJ: What's the ultimate goal of this certification?

Mr. Indursky: The endgame is to try to get to a point where all products are 100% natural. Unfortunately, certain ingredients give a benefit that you can't get naturally. For instance virtually every shampoo or conditioner has what you call a quat, which helps hair be soft and manageable. Without that your hair can become a bit straw-like. There's no natural quat available. On a positive note, a quat has no suspected human health risk. We're hoping by creating this certification, you're giving people the incentive to commercialize a natural quat so we can get away from the synthetic version. Where we do draw a very strong line is on any synthetic ingredient that has a suspected human health risk.

WSJ: Any examples?

Mr. Indursky: Parabens are a preservative used in many personal-care products, and studies have shown that they can lead to endocrine disruption and affect your hormone balance. There are plenty of natural alternatives to parabens. Our belief is that even though the FDA says that parabens are safe, a natural product shouldn't have them. When there's a natural alternative, that's what you should use.

WSJ: As a marketer, how do you balance your brand's natural stance with your parent-company's brand, which is synonymous with bleach?

Mr. Indursky: There's nothing to balance. Burt's Bees is doing what it has always done, regardless of Clorox owning us. Clorox has been a fantastic supporter of ours, and our levels of sustainability and natural ingredients have only increased since we've been acquired.

WSJ: How do you maintain a niche feel to your brand when it has become so widely distributed, now even in Wal-Mart Stores Inc.?

Mr. Indursky: We've been fortunate, every time we've opened in a new distribution, the gift stores and natural stores still keep us. We're rooted in authenticity, and our homey packaging has to maintain that. The worst thing we would do is repackage our product into something supermodern and scientific. But in merchandising, advertising and on our Web site we've gone more into the science that comes from nature -- all the stuff that our packaging on its own doesn't do.

WSJ: How has beauty marketing changed over the course of your career?

Mr. Indursky: In the 1970s and 1980s, it was always "hope in a bottle." People are now seeing that beauty does come at a cost. Health and well-being are becoming a larger part of the equation. Before, it was all about this magic ingredient. That doesn't fly anymore. Real education is important. Consumers don't want hope in a bottle, they want truth in a bottle.

Write to Ellen Byron at ellen.byron@wsj.com

Don Boroian Client - Lifeway Foods

2008-09-18T05:02:00.000-07:00

#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

2008-09-18T04:55:00.001-07:00

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

Wendy's Shareholders Approve Takeover

2008-09-17T13:56:00.001-07:00

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?

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

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

2008-09-16T07:01:00.000-07:00

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 - J. David Washington

2008-09-16T06:23:00.000-07:00

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!

http://www.francorp.com/

Growing A Business

2008-09-09T19:57:00.000-07:00

Ask an Expert: Expand your thinking, expand your business
Posted
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.

Seven Ways to Fail Big

2008-09-09T18:57:00.000-07:00

Seven Ways to Fail Big
Lessons from the most inexcusable business failures of the past 25 years.by Paul B. Carroll and Chunka Mui♦ Download an audio slideshow about how to avoid failure.

Businesses rack up losses for lots of reasons—reasons not always under their control. The U.S. airlines can’t be faulted for their grounding following the 9/11 attacks, to be sure. But in our recent study of 750 of the most significant U.S. business failures of the past quarter century, we found that nearly half could have been avoided. In most instances, the avoidable fiascoes resulted from flawed strategies—not inept execution, which is where most business literature plants the blame. These flameouts—involving significant investment write-offs, the shuttering of unprofitable lines of business, or bankruptcies—accounted for many hundreds of billions of dollars in losses. Moreover, had the executives in charge taken a look at history, they could have saved themselves and their investors a great deal of trouble. Again and again in our study, seven strategies accounted for failure, and evidence of their inadvisability was there for the asking.About the ResearchTake adjacency moves. Frequently what appears to be an adjacent market turns out to be a different business altogether. Laidlaw, the largest school-bus operator in North America, bought heavily into the ambulance business in the 1990s, figuring its logistics expertise would carry over to that kind of enterprise. It turned out that operating ambulances isn’t really a transportation business—it’s part of the intricate and highly regulated medical business. Laidlaw struggled with negotiating contracts and collecting payments for its services, before selling off its ambulance units at a considerable loss.The underlying business moves we discuss here aren’t always bad ideas; they’ve generated a tremendous amount of wealth for some companies. But they are alluring in ways that can tempt executives to disregard danger signals. In this article we’ll describe the seven risky strategies and offer advice on how to resist their charms.The Synergy MirageOften a company seeks growth by joining forces with another firm that has complementary strengths. The whole isn’t always greater than the sum of its parts, however. Look at the 1999 merger of disability insurers Unum and Provident, which operated in the group and individual markets, respectively. Executives thought that each company’s salespeople would be able to sell the other’s products, but the two businesses served entirely different customers through different models. Unum’s sales reps called on corporations to sell group policies; Provident’s crafted sales pitches for individuals. They had different skills and no particular desire to collaborate on cross-selling. Joining the two companies proved costly and complicated. The merger just ended up producing higher prices for everyone and an aggressive posture toward denying claims, which provoked a series of lawsuits that imperiled UnumProvident’s reputation and finances. Unum eventually undid the merger, dropping the Provident name and exiting the individual market in 2007. Its stock price plummeted and is still less than half what it was in 1999, and the company continues to cope with class action suits from claimants.Even when synergies do exist, excitement over them can lead a company astray. Quaker Oats overpaid horribly for Snapple, which it acquired to freshen up a dowdy brand and gain access to Snapple’s direct-store-delivery system and network of independent distributors. At the time, analysts warned that the $1.7 billion price might be as much as $1 billion too high. Quaker never dug deep enough to understand Snapple’s distributors, who fought efforts to push Gatorade and other Quaker products. Just three years after the acquisition, Quaker sold Snapple for $300 million. Synergies can prove problematic in more subtle ways, too, as when executives focus so much management time and energy on capturing them that they lose out on other, more fruitful opportunities. And clashes of culture, skills, or systems can make it impossible to achieve even synergies that seem easy and obvious.Faulty Financial EngineeringAggressive financial practices don’t necessarily lead to fraud, but they can be dicey. The stakes are high—brands and reputations and even entire businesses can crumble as a consequence, and corporate officers may be exposed to massive fines and even prison.If subprime mortgage lenders and the banks that supported them had paid attention to the story of Green Tree Financial, they might have realized how dangerous lending to unqualified buyers was. A darling of both Main Street and Wall Street in the 1990s, Green Tree made its fortunes by offering 30-year mortgages on trailer homes—which depreciate rapidly and can have a life span as short as 10 years. Three years after a $50,000 purchase, a home owner might be stuck with an asset worth $25,000 while owing more than $49,000 in principal. At that point, defaulting starts to look pretty attractive. All the while, Green Tree followed aggressive “gain on sale” accounting methods to record profits, basing its calculations on unrealistic assumptions about defaults and prepayments. With profits based on loan origination, there was also little incentive to qualify buyers.Attracted by Green Tree’s rapid growth, Conseco, an Indiana-based life and health insurer, bought the firm for $6.5 billion in 1998 in the hope of creating a broader financial services company, only to find itself stuck with a house of cards. Conseco ultimately took almost $3 billion in write-offs and special charges related to Green Tree, essentially erasing all profits earned by the unit between 1994 and 2001. CEO Steve Hilbert resigned in April 2000, and Conseco filed for Chapter 11 bankruptcy protection in 2002—reportedly the third-largest bankruptcy in U.S. history at the time.Avoiding Disasters: The Devil’s AdvocateThe rise and fall of Green Tree and its ensnarling of Conseco illuminate two problems with financial engineering strategies: First, they can produce flawed products, such as easy-credit mortgages, that attract customers in the short term but expose both buyer and seller to excessive risk over time. Second, they encourage further hopelessly optimistic borrowing to finance more investment. Green Tree’s model was elegant in that the firm could borrow short-term funds at low rates and lend at much higher rates—but at the same time preposterous, because the machine seized up as soon as the flaws in the underlying mortgage product became apparent.Questions Every Company Should AskOverly clever financial reporting is also risky, especially when it involves cutting corners to increase profits and deliver better bonuses. Such techniques tend to veer toward fraud, even when outside auditors have blessed them. Like other aggressive practices, they’re powerfully addictive: Investors reward increased profits, which leads the company to scramble for even greater creativity.Stubbornly Staying the CourseRedoubling your investment in your current strategy in response to market signals is a strategy in itself, and it can lead to disaster. Executives too often kid themselves into thinking that a problem isn’t so severe or delay any reaction until it is too late. Eastman Kodak stuck to its core in the face of a blatant danger: digital photography. Company executives had made a detailed analysis of the threats posed by digital technology as far back as 1981 (when Sony introduced the first commercial electronic camera, the Mavica) but couldn’t shake their attachment to prints and traditional processing. The margins were hard to pass up as well—60% on film, chemicals, and processing, versus 15% on digital products. Digital technology also eliminated the huge recurring revenue stream that came from film and reprints (though some companies—HP and Epson—now profit from recurring revenues from ink cartridges for printers).This is a common reason companies don’t change course: The economics of the new model don’t measure up to the economics of the old. Companies also falter because they don’t consider all the options. Kodak’s executives couldn’t fathom a world in which images were evanescent and never printed. The company fought only a rear-guard action against digital cameras and didn’t make a big move into the space until the early 2000s. It now has a share of the online photo-posting market, but its hesitation was costly: Over the past decade, Kodak has lost 75% of its stock market value. As of 2007, the company had fewer than a third of the number of employees it had 10 years earlier.Pager company Mobile Media had even less of an excuse to stand by its strategy, because pagers were essentially a fad that lasted only several years. They were a status symbol in the mid-1990s, when cell phones were still bulky and calls expensive. But even as cellular technology followed Moore’s law, Mobile Media acquired other pager companies and focused on designing new-generation technologies that nobody wanted. Following a purge of senior executives, Mobile Media filed for bankruptcy in January 1997. But the brunt of the decline in paging was borne by Arch Communications, which bought Mobile Media in 1999.It isn’t just fast-moving technology companies that fatally ignore new threats. Pillowtex was an old-line company that manufactured pillows, comforters, and towels. It grew steadily for decades—largely through acquisition—and by 1995 reached annual sales of almost half a billion dollars. In 1994, however, the United States began to phase out quotas on imports. Other companies immediately began outsourcing production to developing countries so they could compete with low-price imports, but Pillowtex redoubled its acquisition efforts, hoping that efficiencies from scale would give it an edge. The company’s SEC filings from the late 1990s barely mention outsourcing as an option, instead highlighting the $240 million that Pillowtex spent on new, efficient machinery for its U.S. plants in 1998 alone. Two bankruptcies later, the company shut down in 2003 and was liquidated. Although part of the company’s rationale for keeping manufacturing in the United States was to protect American workers, 6,450 lost their jobs. The layoff was the largest in the history of the U.S. textile industry.Pseudo-AdjacenciesAdjacent-market strategies attempt to build on core organizational strengths to expand into a related business—by, say, selling new products to existing customers, or existing products to new customers or through new channels. Such strategies are often sensible; they fueled much of General Electric’s growth under Jack Welch. But in our research we found many cases where ill-conceived adjacencies brought down even storied firms. Oglebay Norton, a regional steel provider, is just one example. After 143 years the Cleveland-based company was looking to diversify because steel was in decline. Limestone seemed like a logical choice because Oglebay’s shipping business was already hauling it for its steel mills. Limestone is used in steel production to separate impurities, which are removed before molten iron is turned into steel. It has many other industrial uses, especially in production.Oglebay began buying up limestone quarries, but it lacked a fundamental understanding of the limestone business. For one thing, iron ore was shipped on the Great Lakes, mostly on 1,000-footers, but limestone often needed to be transported on rivers to get closer to customers. That required much smaller vessels, which Oglebay didn’t have in its fleet. The company filed for bankruptcy on February 23, 2004, with $440 million of debt, most of which was incurred as part of the push into limestone. It would emerge from bankruptcy but never recover its footing. After selling off its fleet piecemeal to retire its debt, it was acquired by Carmeuse North America.Four patterns emerged among the failed adjacency moves in our research. The first was that a change in the company’s core business, rather than some great opportunity in the adjacent market, drove the move—witness Oglebay Norton’s desperation to reduce its reliance on steel. A second was that the company lacked expertise in the adjacent markets, leading it to misjudge acquisitions and mismanage competitive challenges. Avon made this mistake with a move into health care in the early 1980s, including the acquisition of medical-equipment-rental businesses and substance-abuse centers—a strategy justified by its “culture of caring.” But these acquisitions did nothing to build on Avon’s core asset, its door-to-door sales force, and overlooked the regulatory realities, in which it had no expertise. Avon took a bath. After significant losses, it took a total charge of $545 million for dismantling its health care business in 1988.The third recipe for disaster was overestimating the strength or importance of the capabilities in a core business. Successful companies are particularly prone to this; their ability to achieve in their own market makes them overly optimistic about their prospects in others. Laidlaw, the school-bus operator, fell victim to this type of thinking when it figured it could leverage its considerable expertise in logistics in the ambulance services business and went on a buying spree. The company suffered big losses in the ambulance business, taking a $1.8 billion write-down on it in 2000.Finally, adjacency strategies tended to flop when a company overestimated its hold on customers. Just because people buy one service from you doesn’t mean they’ll buy others. Several utilities seeking to expand in the mid-1980s fell prey to this kind of thinking. When regulators began threatening to cut rates, utilities looked for opportunities in other industries. Some made a classic mistake: They jumped into high-growth markets without having any idea about whether they were qualified to operate in them. They thought they could simply leverage their customer bases and sell them products like life insurance, but they found few buyers.Bets on the Wrong TechnologyThe huge rewards for breakthrough products and services understandably inspire many companies to search relentlessly for the next Google or eBay or iPod. Still, in our research we discovered that many technology-dependent strategies were ill-conceived from the get-go. No amount of luck or sophisticated execution could have saved them. To keep pursuing the strategies that produced these failures—some quite spectacular—companies had to go to great lengths to deceive themselves.Motorola’s Iridium satellite-telephone unit—a $5 billion venture that filed for Chapter 11 less than a year after the phone system went live—is widely cited as a failure of execution or marketing. In fact, the failure stemmed from a misguided captivation with technology. The project began in the 1980s to solve a legitimate problem: Cell phones were expensive and lacked global connectivity, and existing satellite alternatives were cumbersome and unreliable. But as Motorola pursued its development plans, it ignored its own engineers’ warnings that the ultimate product would share the limitations of early 1980s cellular technology even as cell phones got better and cheaper with every passing year. Motorola was so enamored with its technology that its market research amounted to little more than marketing. For instance, when it asked if customers would like a global portable phone for a “reasonable price,” it didn’t define “reasonable” as an initial outlay of about $3,000, plus monthly charges and pricey minutes; and its description of a phone that would “fit in your pocket” assumed that your pocket would hold a brick.Federal Express made a similar mistake in the mid-1980s with Zapmail, a service whereby couriers would pick up paper documents and deliver them to a nearby processing center, where they would be faxed to another processing center, close to the destination, and delivered by courier to the recipient, all within two hours. The price was $35 for up to five pages, with a discount and faster delivery if the customer brought the documents into a FedEx office. At the time, few companies owned fax machines, because they were expensive and transmission quality was often poor. As prices fell and the technology improved rapidly, fax machines proliferated; soon it seemed silly to use FedEx as an intermediary. In 1986, FedEx shut Zapmail down, taking a $340 million pretax write-off after losing $317 million during its two years of service.Rushing to ConsolidateAs industries mature, the number of companies in them diminishes. Holdouts have an incentive to combine and reduce capacity and overhead and gain purchasing and pricing power. Our research shows that it is sometimes better to sit back and let others fumble through consolidation. Though there’s more glory in being the buyer, it may be wiser to sell and pocket the cash before industry conditions deteriorate.Take the demise of Ames Department Stores. The company pioneered the concept of discount retailing in rural areas four years before Sam Walton got into the game. But it got reckless in its attempts to build a national presence. In its zeal to compete with Wal-Mart, Ames made a series of acquisitions, without adequately considering what it would take to win that battle. The moves didn’t build on its core strength—merchandising—and exacerbated its greatest weaknesses: back-office systems like accounting. For instance, after Ames acquired discount chain G.C. Murphy in 1985, it suffered an enormous amount of shrinkage (industry speak for theft) because it had no system for checking inventory. Disgruntled Murphy’s employees were reportedly stealing goods off delivery trucks and then logging complete shipments into stores. In 1987, Ames lost $20 million worth of merchandise and couldn’t tell why. Even as the company struggled to integrate G.C. Murphy, Ames’s managers went for another, bigger, takeover—Zayre, for which it paid $800 million, a glaring overpayment. The company filed for bankruptcy in 1990 but recovered, only to make the same mistake again. After struggling with the disastrous acquisition of Hills Department Stores, Ames again filed for bankruptcy in 2000 and was liquidated in 2002.Consolidation plays are subject to several kinds of errors. For one thing, you may be buying problems along with assets. Ames repeatedly overlooked the fact that many of the stores it bought were damaged goods. For another, increased complexity may lead to diseconomies of scale. Systems that work well for a business of a certain size may break as a company grows. USAir bought Pacific Southwest Air for $385 million in 1987 to expand into the West and then bought archrival Piedmont for $1.6 billion. The company almost tripled in size in a bit more than a year, and its information systems couldn’t handle the load. Service suffered, computers repeatedly broke down on payday, and crews were taxed to the limit by their new schedules. Before the merger, USAir and Piedmont had operating profits six to seven percentage points higher than the industry average; after the merger operating profits were 2.6 points below the industry average.Furthermore, companies may not be able to hold on to customers of a company they buy, especially if they change the value proposition. And last, other options may be preferable to being the industry’s consolidator. Ames didn’t have to go toe-to-toe with Wal-Mart. It was doing nicely as a regional retailer with a far more limited product line. As far as we can tell, Ames never considered holding on to its position and potentially selling out to Wal-Mart down the line.Roll-Ups of Almost Any KindThe notion behind roll-ups is to take dozens, hundreds, or even thousands of small businesses and combine them into a large one with increased purchasing power, greater brand recognition, lower capital costs, and more effective advertising. But research shows that more than two-thirds of roll-ups have failed to create any value for investors.We were interested to find that many roll-ups were afflicted by fraud—among them, MCI WorldCom, Philip Services, Westar Energy, and Tyco—but we won’t focus on those in this article because for the most part the lesson is simply, “Don’t do it.” Instead, let’s look at the fortunes of Loewen Group. Based in Canada, it grew quickly by buying up funeral homes in the U.S. and Canada in the 1970s and 1980s. By 1989, Loewen owned 131 funeral homes; it acquired 135 more the next year. Earnings mounted, and analysts were enthusiastic about the company’s prospects given the coming “golden era of death”—the demise of baby boomers.Yet there wasn’t much to be gained from achieving scale. Loewen could realize some efficiencies in areas like embalming, hearses, and receptionists, but only within fairly small geographic proximities. The heavy regulation of the funeral industry also limited economies of scale: Knowing how to comply with the rules in Biloxi doesn’t help much in Butte. A national brand has little value, because bereaved customers make choices based on referrals or previous experience, and being perceived as a local neighborhood business is actually an advantage. In fact, Loewen often hid its ownership. And it damaged whatever reputation it did have with its methods of shaming the bereaved into buying more expensive products and services (such as naming its low-end casket the “Welfare Casket”).Nor did increased size improve the company’s cost of capital. Funeral homes are steady, low-risk businesses, so they already borrow at low rates. The cost of acquiring and integrating the homes far outweighed the slight scale gains. What’s more, the increase in the death rate that Loewen had banked on when buying up companies never happened. Fast-forward several years and the company filed for bankruptcy, after rejecting an attractive bid. (Relaunched under the name Alderwoods, Loewen was sold to the same suitor for about a quarter of the previous offer.)Often roll-ups cannot sustain their fast rate of acquisition. In the beginning, all that matters is growth—buying a company or two or four a month, with all the cultural and operational issues that accompany a takeover. Investors know that profitability is hard to decipher at this point, so they focus on revenue, and executives know that they don’t have to worry about consistent profitability until the roll-up reaches a relatively steady state. Operating costs frequently balloon as a result. Worse, knowing that the company is in buying mode, sellers demand steeper prices. Loewen overpaid for many of its properties. In another case, as Gillett Holdings and others tried to roll up the market for local television stations in the 1980s, the stations began demanding prices equal to 15 times their cash flow. Gillett, which bought 12 stations in 12 months and then acquired a company that owned six more, filed for bankruptcy protection in 1991.Finally, roll-up strategies often fail to account for tough times, which are inevitable. A roll-up is a financial high-wire act. If companies are purchased with stock, the share price must stay up to keep the acquisitions going. If they’re purchased with cash, debt piles up. All it took to finish off Loewen was a small decline in the death rate. For Gillett, it was an unexpected TV ad slump. When you go into a roll-up, you need to know exactly how big a hit you can withstand. If you’re financing with debt, what will happen if you have a 10%—or 20% or 50%—decline in cash flow for two years? If you’re buying with stock, what if the stock price drops by 50%?

• • •The vast majority of business research focuses on successful companies, in an effort to generalize from their traits, tactics, or strategies. Executives scrutinize healthy businesses for best practices they might be able to imitate. Our research looks at the data that others tend to ignore: companies that tried to do the same thing as the winners and failed. We know that companies are capable of learning from failure, given the right incentives. Airlines have a better-than-average record on preventing disaster because their own personnel go down with customers. Perhaps that’s an overly dramatic example, but we do believe that enormous value lies in learning from companies that have lost millions, if not billions, in pursuit of fundamentally flawed strategies.

Francorp Client - Inka Grill

2008-09-08T06:13:00.000-07:00

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

Francorp Client - Playboy

2008-09-06T13:38:00.000-07:00

Francorp former client, Playboy continues to control the adult men's entertainment market. Francorp worked with Playboy to help them determine the viability of a franchise model for a portion of Playboy's business. Francorp determined that the franchise rollout was not the most efficient expansion model and advised the company not to franchise.

Company Description of Playboy:
Playboy keeps printing articles, so someone must be reading them. Playboy Enterprises is a leading adult multimedia entertainment company anchored by its iconic, half-century-old periodical. Playboy, the #1 men's magazine with a circulation of more than 2.5 million, features general-interest and lifestyle articles, interviews, fiction, and, of course, a monthly Playmate centerfold. Beyond print media, Playboy owns adult cable and satellite channels under the Playboy and Spice banners, produces and distributes videos and DVDs, and licenses its brand and Rabbit Head logo for a variety of goods. Playboy also offers free and subscription content online. Founder Hugh Hefner controls about 70% of the firm.

www.francorp.com

Francorp Regional Director - Chris Kulas (Omaha, NE)

2008-09-06T13:22:00.001-07:00

PRESS RELEASE

FOR IMMEDIATE RELEASE FOR INFORMATION CONTACT:
Francorp
(402) 210-4331

Francorp Welcomes New Regional Director

(Omaha, NE) - Francorp is proud to announce that Mr. Chris Kulas has been appointed Regional Director of the Greater Omaha, NE area.

Chris has been in Financial Services for over 25 years working with small, middle market, Fortune 500 companies and Governmental Agencies to assist them in becoming more efficient and profitable. He has acted as a senior executive for over 20 years with large national banks, investment firms, as well as starting and operating his consulting company; 22’nd Century Consulting. The scope of his responsibilities included national relationship management, sales management, operations, administration, product development/management and overall profitability. Chris has nationalized regional firms, as well as expanding market share for large institutions through creative concepts. His background encompasses mergers and acquisitions, institutional, commercial, mortgage, merchant and private banking, as well as investment/asset management and insurance services. Attended California State University at Northridge and holds a degree of Bachelor of Science in Business Administration and Marketing. In addition, he has been a speaker at numerous Financial Services Industry conferences, as well as authoring articles for industry publications.

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 (402) 210-4331.

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Francorp Regional Director - Dr. Lucky Ukanwoke (Baltimore, MD)

2008-09-06T12:31:00.001-07:00

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.

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Francorp Regional Director Jack Kuykendall (Los Angeles, CA)

2008-09-06T10:12:00.000-07:00

PRESS RELEASE

(Company Letterhead)

FOR IMMEDIATE RELEASE FOR INFORMATION CONTACT:
Francorp
(404) 403-6055

Francorp Welcomes New Regional Director

(Los Angeles, CA) - Francorp is proud to announce that Jack Kuykendall has been appointed Regional Director of the Greater Los Angeles area.

Jack Kuykendall is a consultant. His company, Franchise Guidepost Inc., helps people find profitable and rewarding opportunities that fit their business and lifestyle goals and then utilizes extensive industry contacts to introduce these qualified candidates to top-ranking companies. His motto is “Opportunities for your lifestyle and lifestyles with opportunity.”
As an initial point of contact, Franchise Guidepost acts to save both parties valuable time. There are no forms or contracts and the fee is always paid by the seller, not the client.Franchise Guidepost works with almost three-hundred companies in twenty-nine business categories, including food, coffee or other beverages, senior care, lodging, real estate, maid service, automotive, sports, tanning, business coaching, telecom consulting, staffing, education, window treatments, and pet care. The company is a member of the Rancho Cucamonga Chamber of Commerce, the U.S. Chamber of Commerce, and the Better Business Bureau.Before establishing Franchise Guidepost Inc, Jack worked as a business development and planning manager, specializing in supply chain management, global sourcing and procurement. His former employers include Hitachi, Sony, TOTO and THK America. A native of San Diego, Jack has worked in Tokyo, Atlanta, Cincinnati, and San Francisco. He earned an MBA from Thunderbird and a BA from Occidental College.

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 404-403-6055.

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Francorp Regional Director - Robert Morris, Wylie, Texas

2008-09-06T10:06:00.001-07:00

PRESS RELEASE FOR IMMEDIATE RELEASE

FOR INFORMATION CONTACT: Francorp
(972) 880-9901

Francorp Welcomes New Regional Director (Wylie, TX) - Francorp is proud to announce that Robert Morris has been appointed Regional Director of the Greater Wylie area. Robert Morris is a managing partner for a company primarily involved in outsourced Computer IT / Security Consulting and solutions for small business and management companies, establishing policies for Security and Privacy including Firewalls, anti-Virus, and anti-Spyware. Support for Point of Sale in both merchandising and hospitality. Prior to joining this company, Mr. Morris started CIL Computers, a business of prototyping and building rack mount controllers for use in the semi-conductor industry, grew to over 14 full time employees in an 8000 square foot stand-alone building in Plano Texas.

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 972-880-9901.

Move Aside, Frozen Custard, and Make Room for Gelato

2008-09-05T13:59:00.000-07:00

Move Aside, Frozen Custard, and Make Room for Gelato
By GLENN RIFKIN

Published: September 3, 2008
Though gelato, that smooth and flavorful Italian ice cream, is not a novelty in the United States, it has struggled to gain a foothold. Many consumers were turned off by too many bad Americanized versions and that, in turn, turned off many would-be entrepreneurs.

Daniel Rosenbaum for The New York Times
Dolcezza, a four-year-old shop in the Georgetown section of Washington, uses produce from area farmers in its handmade gelato.

Andy Manis for The New York Times
With less than half the butterfat of regular ice cream, gelato is less fattening and healthier, and its dense, rich flavor and smooth texture can be highly addictive.
Lately, however, gelato seems to be catching on, joining artisanal coffee, cheese and wine in catching the fancy of food lovers. With less than half the butterfat of regular ice cream, gelato is less fattening and healthier, and its dense, rich flavor and smooth texture can be highly addictive.
Stand-alone gelato shops may still be a risky bet, but it is one that an increasing number of small-business owners are willing to take.
In downtown Waukesha, Wis., for example, Joe and Lori Lester said they loved the Divino Gelato Cafe so much they bought it from the original owners a year and a half ago. Focusing on a high-quality product with a variety of flavors, they have expanded the business 35 percent since taking over, they said, and have already opened a second location.
Robb Duncan and his wife, Violetta, run Dolcezza, a small gelateria in the Georgetown section of Washington that features handmade gelato. They said that in the four years since they opened their shop, their business had grown 700 percent. In response, they have just opened a second location in nearby Bethesda, Md., and also sell pints at local farmers’ markets. “The D.C. market has really responded and was clearly ready for artisanal gelato,” Mr. Duncan said.
Albert Lattanzi, who owns a pizzeria and an upscale Italian restaurant in Edgartown on Martha’s Vineyard, opened a small gelato shop, Caffe di Lattanzi, in 2001, after he learned that the island’s transit service was putting a new bus stop near his property. Figuring that 3,000 visitors a day would pass through the area, he surmised that his gelato would be a lure for new customers as they waited for the bus. His gelato business has quadrupled since he opened.
Franchise operators, too, have noticed the nascent market. San Gelato Café, which franchises its gelato shops, is making a big push. The chain, based in Fort Walton Beach, Fla., recently announced that it would open 300 new gelato stores nationally by 2011. While modest by Starbucks standards, such growth is impressive for the gelato market.
PreGel America, the wholly owned subsidiary of one of Italy’s largest suppliers of gelato ingredients, opened up a sales and distribution center near Charlotte, N.C., in 2002. According to Marco Casol, the 37-year-old chief executive, the number of outlets supplied by PreGel has grown 30 to 35 percent annually since 2002 — more than 1,000 gelato shops, groceries, cafes and restaurants that sell gelato. Sales in 2008 are expected to top $15 million. The company offers free three-day courses in making gelato and running a shop and will send its chefs to customers’ locations to offer advice.
“I felt the U.S. was the last important market in the world that had remained untouched,” Mr. Casol said. “The market had finally changed. People travel much more, they are much more informed, and they are looking for healthy and nutritional food that is still tasty, something decadent that doesn’t leave a feeling of guilt.”
Though exact numbers are hard to find, Mr. Casol estimates there are now about 800 stand-alone gelato shops in the United States, a far cry from the 37,000 in Italy. For gelato-loving entrepreneurs, such a wide-open market means opportunity.
“In Europe, gelato is part of the culture, part of people’s daily routine,” Mr. Casol said. “You can’t change a culture overnight.”
Most major cities in the United States, especially New York and Los Angeles, are home to a growing number of gelato shops. But it would be misleading to call gelato the newest rage. In a 2008 ice cream consumption survey from Mintel, a Chicago-based market research firm, 89 percent of consumers said they ate ice cream but just 14 percent ate gelato.
David Morris, a senior research analyst at Mintel, said gelato was still “very much a niche product” that was not yet widely available. But Mr. Morris added: “There’s definitely momentum there.” In a 2007 “What’s Hot?” survey of 1,200 chefs by the National Restaurant Association, 51 percent called gelato a “hot trend.”

But experts note that there are costs and potential pitfalls in opening a gelato shop. The cost to outfit and run a new gelato cafe can range from $150,000 to $300,000 depending on its scale. Adding gelato to an existing restaurant or cafe can be done for a more modest $50,000.

Andy Manis for The New York Times
The Divino Gelato Cafe in Waukesha, Wis., top, owned by Joe and Lori Lester, bottom, has flavors like wildberry and mango.
Dominic Seminara, who runs the Specialty Restaurant Equipment Corporation in Arlington, Tex., warned that a stand-alone gelato shop was not a sure bet in most locations. “Gelato has a place but only in a setting in which it is part of the operation, not the entire operation,” he said. Adding gelato to a successful pizza parlor or coffee shop is a better way to go, he suggested.
Successful owners like Mr. Duncan and Mr. Lester disagree. Finding the right location, they say, is the first step. Mr. Duncan, who lived in Argentina and studied under the local gelato masters for a year, said he thought Washington had enough of an international flavor to support a gelato shop. He makes his gelato fresh every day, as it is done in successful Italian shops, and he uses only fresh, local produce from area farmers.
“The first month we opened in August 2004, we sold $25,000 worth of gelato,” Mr. Duncan says. “For July 2008, we sold $165,000 worth of gelato. Our challenge is to maintain the quality of the product.” He began to offer espresso as an adjunct to the gelato but said that coffee represented just 5 percent of sales. “Even if you have really good coffee, people go to a gelateria to buy gelato,” he said.
Jon Snyder, who opened what many believe to be the first gelato shop in America, in the SoHo neighborhood of New York in 1983, agreed with Mr. Duncan. “This is part of a food revolution in this country,” said Mr. Snyder, who owns Il Laboratorio del Gelato, a gelato wholesaler in New York that supplies more than 200 local restaurants.
“There’s a lot of bad gelato out there, but more and more, some really good product is being made,” Mr. Snyder said. “If you take pride in what you do and put out a great product, people will find you.”
Certainly that is the case in Waukesha. Mr. Lester said the previous owners of Divino had a tough time educating consumers about a product most had never heard of. But now, “this has become a destination, like a trip to Italy for people,” Mr. Lester said. “We’ve never advertised and it’s all word of mouth.”
In the long run, Mr. Lester acknowledges it is a challenging business. “At $3 a scoop, you need to sell a lot of gelato,” he said.

Francorp Argentina

2008-09-05T09:40:00.000-07:00

Francorp has offices in 15 countries around the world including Francorp Argentina. Francorp works closely with these international offices to train and manage their staff. Francorp Chicago is currently working with Sofia Texier from the Francorp Argentina staff to help her take on new responsibilities within her office and management team.

Sofia Texier has been with Francorp Argentina for over 2 years now, she has worked as an operations consultant as well as a strategic planning consultant. She now will be taking on the added responsibility of becoming a senior consultant for Francorp Argentina. Francorp is the world leader in franchise consulting and franchisor development.

www.francorp.com