Don Boroian - Franchise Training Systems

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

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

Francorp Middle East

Franchise demand in UAE to expand
Armina Ligaya

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Franchising in India

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

Own Your Own Business

"Own Your Own Business" SEMINAR
________________________________________________

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

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

How to Effectively Work a Franchise Tradeshow

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

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

Don Boroian, How to Franchise

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

1. Attend a Franchise Seminar

2. Meet for a Franchise Consultation

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

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

http://www.francorp.com/

Sonic Franchise Units Outperform Company Owned Units

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.

Marriott Being Social

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

FTC Report - Marketing Food To Children

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

Tough Economy = Buyers for Businesses

Small Businesses on Discount
By ELIZABETH OLSON
Published: May 27, 2008
To all the usual reasons that small businesses are put up for sale — personal problems and personnel squabbles among them — add economic woes this year. But even as for-sale listings rise around the country, so is buyer interest.
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Julie Keefe for The New York Times
Richard Lightowler sold the nursery business attached to his general store in West Linn., Ore., for a lower price than he thinks he would have received in previous years.
“When economic times get tough and people can’t find a job, they will go out and buy a job,” said Ronald W. Hottes, president of the Business Team, a broker in Torrance, Calif.
The problem, though, for owners seeking to sell their businesses is that prices appear to be softening — a reflection of a variety of causes, among them tighter credit markets, rising costs and fewer customers.
The country’s largest listing site, bizbuysell.com, has 50,000 businesses for sale — up from 43,000 this time last year, said Michael K. Handelsman, the site’s general manager. The number of businesses being sold also rose, to 1,795 listings that closed in the first quarter of this year, a 66 percent increase from 1,081 sales in the same quarter of 2007.
In Gaithersburg, Md., mill3nnium.com reported that businesses for sale on its site had surged in the last year. The site focuses on the metropolitan Washington area, and one reason for the surge was a decline in customers. Those businesses included delis, dry cleaners, dollar stores and gas stations.
“We have 80 to 100 listings, double the number we had last year,” said the site’s owner, Moses A. Zuniga. “Every business is hurting.”
Such sites can give only a snapshot of the market, Mr. Handelsman acknowledged, because “when a listing is removed, we always check to see if it sold, but the broker doesn’t always tell us.”
Several brokers say that buyers typically are people who are retiring and looking for a second act or laid-off corporate executives looking for a business to run.
Retirement, illness, divorce, death — and simple burnout — still drive the majority of owners to sell, but in the rocky economy, some otherwise solid businesses are now having a hard time. Their owners decide they cannot hold out for better times, so they sell for less, business brokers say.
A decline in revenue was one reason that Richard Lightowler decided to sell the family’s retail nursery in West Linn., Ore., in January. When he took over the Willamette General Store from his parents in early 2007, he said, he evaluated the business. He said he found it difficult to manage the adjacent nursery, which specializes in ponds and pond supplies, as well as the store’s growing business in expensive Traeger barbecue grills.
So he decided to sell the decade-old nursery, which had been bringing in $150,000 annually several years ago. Business had slipped even though nurseries generate higher margins than the hardware, barbecue supplies and food that are the core items at the blue-and-white clapboard general store, he said.
“A few years ago — based on how it was doing then — I could have gotten $50,000 for the nursery,” said Mr. Lightowler, 40. “But I had to ask less, about $40,000, and accept $33,000.”
Phillip L. Beukema, of Luxemburg, Wis., who recently sold his online business, Corporate Apparel Unlimited, may have been luckier in his timing. Over the last eight years, he and his family built the company, which sells promotional items like T-shirts on 13 Web sites, with some 25,000 clients, and recorded $2.8 million in sales in 2006.
Then he and his wife, Charla, both 55 years old, decided last August that they wanted to retire. So last fall he listed the company with a business broker, Cornerstone Business Services, in nearby Green Bay, and the transaction — he did not disclose the sales price — closed on Feb. 15.
The price, said Mr. Beukema, a former college dean, would probably have been less if he had tried to sell this year.
“As the subprime situation hit last year, we noticed about a 10 percent slide in orders,” he said. “So if we had put it on the market in January, the asking price would have been in jeopardy. I don’t think we could have gotten the same figure for it.”
Pinpointing what is happening to sales prices nationwide is difficult because data is diffuse and unreliable. It is possible to advertise nationally on a Web site, but the buying and selling of most small businesses remains local. And most transfers of small businesses are between individuals, who are not required to register such transactions.
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But both listing sites and brokers around the country say that sellers have become more flexible about price. In a survey by the International Business Brokers Association of its 2,000 members, nearly 73 percent predicted that 2008 would be a buyer’s market. The survey was released in January.
Cress S. Diglio Sr., the association’s chairman and president of Corporate Investment International, which is based in Orlando, Fla., said that “this year the number of sellers will easily outpace the number of qualified buyers.”
One reason is that a crucial small business financing tool, home equity lines of credit, has been drying up as house values fall. Traditionally, small businesses have had a hard time obtaining commercial credit, and that is worsened in rough economic times, several brokers said.
“A year ago, people were using home equity loans,” Mr. Hottes said. “And now they are drawing down their 401(k)s.”
Sellers — who historically have provided financing to sell their small businesses — are doing so more than ever, said Julie Gordon White, chief executive officer of BlueKey Business Brokerage in Point Richmond, Calif.
Even so, an unpleasant truth is that many, if not most, businesses do not sell. For decades, the conventional wisdom was that brokers sold about one out of five businesses they listed. But a new study by Louis O. Vescio, owner of Sunbelt Business Brokers in Melbourne, Fla., found that the percentage was only 10.5 percent.
The main reason, Mr. Vescio and others said, was that “most small business owners keep bad records,” so buyers cannot get an accurate financial picture.
Confidentiality can also hamper sales, brokers said.
“It’s not like a house where you want everyone to know it’s for sale,” said Mr. Diglio, who has been in the business for two decades. “You don’t want employees, customers or competitors to know you are selling.”

Don Boroian Article

April 21, 2005

A Franchise is a Franchise is a Franchise
Posted by Don Boroian at 1:47 PM

Franchising is more than chains like McDonald's. Sometimes, it's an expansion strategy, a license, a partnership, or a joint venture.
Let's play a word association game. When I say "franchise," you think ___________.
Many of you are saying "McDonald's." Certainly, McDonald's is the model for franchising's success in America. When you hear the word "franchise", many of you think of restaurants, and while it is true that the food service industry makes up a large portion of the franchise marketplace, franchising has made its way into nearly every sector of the economy. As a business model, franchising has extended into over 70 different industries. Currently, according to a recent PriceWaterhouseCoopers's study on the impact of franchising, franchising accounts for 14% of private sector employment in the United States. Why then is franchising so confusing when it accounts for such a large part of the U.S. economy?
At several points during my career as a franchise consultant and also helping businesses explore expansion, I have had entrepreneurs come to me looking to find a way not to franchise by calling their expansion strategy something else, a license, a partnership, or a joint venture. For these entrepreneurs, it is often just a misunderstanding of what franchising is that leads to the confusion. They see it perhaps as being a negative, and feel that franchising is only for certain kinds of businesses. Sometimes, the requirements of being a franchisor appear from the outside to be too cumbersome. In reality, it is usually easier legally to be a franchisor than to latch onto a business opportunity where each state would require different legal documents. I often have to tell these business owners that the fact of the matter is that, if three specific conditions exist, it doesn't matter what you call it; it's a franchise.
The franchising business model in a nutshell:
Franchising is a method of business expansion whereby a business owner allows someone to market products or services under their name and trademark and in strict adherence to a system he/she prescribes. In return, the franchisee, as that person (or organization) is called, pays a fee and, usually, an ongoing royalty. Moreover, the franchisee pays all of the costs of getting into his or her own business.
There are three basic elements to being a franchise.
1. The Name - You allow someone the use of your name or trademark. 2. The System - You require them to operate their business, using your prescribed system. 3. Payment of a Fee - In return for the use of the name and system of operation, they pay you a fee or royalty. By having these three elements items in place makes your business a franchise, and you are then required to follow the federal guidelines of having a Uniform Franchise Offering Circular.
A licensing arrangement is typically where you allow someone the use of your name for a payment of a fee.
A business opportunity is when you give someone a system of operation for the payment of a fee.
In these three elements, you have a very powerful combination. As a person looking into starting a business, owning a franchise gives you an established name, a proven system of operation, and a coach or mentor who as the franchisor is tied to your success. This gives you a huge advantage over starting a business from scratch. As a business looking to expand, franchising provides you with capital for expansion through the franchise buyers, motivated managers who have a vested interest in the success of your operations, as they have invested their capital into them. It is easy to see why so many companies have used franchise expansion to grow.
Just because your expansion program is a franchise, doesn't mean that you have to call it a franchise, as long as you comply with all of the franchise laws and regulations. We have had clients at Francorp who, for marketing reasons, may refer to their business relationships as a License. For example, we have clients offering franchises to the medical community. We feel that doctors may not be receptive to owning a franchise; so we refer to it as a License program but still follow all of the requirements of franchising, such as the legal documents and selling requirements. This enables the company to expand with the controls needed that a franchise program provides, while still keeping medical professionals (whose visions of a franchise involve flipping burgers) happy that they are Licensees or member partners of the program.
It's these three key elements (name, system, and fee) that make franchising so successful, as it makes everyone more involved in the success of the organization. It is the epitome of a "win-win situation."

Francorp - Expert Witness Work

Franchisee Battles Quiznos Over Location PolicyBy: Daniel Del'RePublished September 2, 2005September 2, 2005

--Franchisees of sandwich chain Quiznos are fighting what they say are policies that allow the Denver, Colorado company to open too many franchises in a single market, leading to cannibalization of revenues.On Aug. 26, a Los Angeles County judge told Quiznos it could not shut down a Long Beach, Calif. chain and ordered Quiznos into arbitration with Bhupineer "Bob" Baber and his wife Ratty Baber, who claimed that new stores in their area siphoned customers from their two Long Beach franchises.

If the Babers win that round, Quiznos may not be able to open new stores in cases where sales are likely to cut into the business of existing franchises."There is an implied covenant of good faith and fair dealing that says you don't dump competition on top of your existing franchisees," said Fred Pardes, attorney for the Babers.Quiznos' franchise agreements do not restrict the company from opening franchises within the proximity of existing locations.But Don Boroian, a franchise consultant with Francorp, said franchisers like Quiznos have an obligation to prevent locations from encroaching on each other's territory.Boroian is serving as an expert witness in a separate lawsuit against Quiznos in which the plaintiff, Royce Gwin, is arguing that he was denied commissions for selling franchises.

In 2004, Quiznos opened two franchises less than two miles from the Babers' Quiznos. Pardes said that within months, the Babers' revenue fell by one third and blamed it on the new competition.The Babers founded a not-for-profit last December to organize Quiznos franchisees with similar grievances. One month later, Quiznos revoked the Babers' franchise on the grounds of health code violations. The City of Long Beach said the chain passed all health code inspections.But the closure prompted the Babers to sue Quiznos.Quiznos would not comment on the allegations or the suit."We are moving forward with arbitration in California," wrote a Quiznos spokesperson in an e-mail. " We're not going to comment further regarding ongoing litigation."

Francorp Clients - Body and Sole

Failure did not stop Cebu’s spa prince

When he first went into business, he was not successful. He went back to employment but continued to dreamed of owning a successful business one day.

After he finished his accountancy degree from the Silliman University, Johnie Lim worked in various local and multinational companies engaged in shipping, the manufacture of furniture and toys and pharmaceuticals.

“When I first set foot in Cebu, I never imagined that one day I will become a business owner and be considered as having propelled and fast tracked the birth of the spa industry, at least here in Cebu,” he says.


Johnie Lim speaker at Health and Wellness Conference
Johnie Lim is the president of SWAC ( Spa and Wellness Association of Cebu) and also CEO of Body and Sole Franchise Corporation, a network of more than 30 branches of spas nationwide. He will be a speaker at the Health and Wellness Conference at the Waterfront Hotel from June 21 to 23.

JOHNIE C. LIM is married to Ms. Flor Lim with whom he has three daughters. Mr. Johnie C. Lim finished his accountancy degree from Siliman University in Dumaguete City in 1980. He worked as manager in various local and multi-national companies to include shipping, furniture, toys and pharmaceuticals. He dabbled in column-writing for some local and international newspapers and magazines. HE became a media head for religious organization (Alay sa Diyos Community) and edited its 10th university publication. He is the president of the SWAC (Spa and Wellness Association of Cebu, Inc.) and sits as CEO of Body and Sole Franchise Corporation.

BODY AND SOLE Body Massage and Foot Spa is a DTI-registered enterprise whose mission is to provide health and wellness services to the general public at prices within everybody’s reach. Its main office is located at Suite 139-B Ground Floor of Raintree Mall along F. Ramos Street, Cebu City. The first branch of Body and Sole opened in May 15, 2003 in a 50-square meter space at Raintree Mall along F. Ramos Street, Cebu City offering 3 basic services – body massage, facial and foot spa. Five months later, the company went into franchising.

Today, Body and Sole now counts 30 branches and affiliates nationwide with 17 outlets in Cebu and 13 outside to include branches in Cagayan de Oro, Dumaguete City, Tagbilaran City, Bacolod City, Masbate City, Cavite City, Lucena City, Mandaue City, Lapu-lapu City, Butuan City, Tacloban City, Zamboanga City, Calbayog City and Valencia, Bukidnon. Combined workforce is about 500 employees. From three (3) basic services, it has now seven (7) signature services to include body scrub, foot relax, facial with laser and its own version of Diamond Peel. Five (5) of these branches are company-owned.

Body and Sole continues to explore ventures with deserving entrepreneurs through franchising. Its latest addition is soon-to-open branches in Davao City and Angeles City in Pampanga. The company envisions an outlet in every major city nationwide using its market positioning as the fasfood of quality spa services that’s affordable and highly personalized. It plans to introduce within this year into reconstruction of OPM (Original Pilipino Massage) traditionally called hilot in order to promote the country to the international spa community.

Body and Sole’s core concept— total relaxation at half the cost!— has earned for the company a loyal clientele following that is hard to match in the spa industry. Body and Sole’s core concept— total relaxation at half the cost!— has earned for the company a loyal clientele following that is hard to match in the spa industry. Visit their website at www.bodyandsolephilippines.com .

International Restaurant Franchising

FRANCHISING


U.S. Restaurants Push Abroad
By RICHARD GIBSON

Perhaps nowhere is the Americanization of the planet more evident than in the restaurant world.

There's an Applebee's in Athens; a Papa John's pizzeria in Karachi, Pakistan; two Ruby Tuesdays in Bucharest; a Denny's in Christchurch, New Zealand; a Chili's Grill & Bar on a riverboat on the Egyptian Nile. And always there are the seemingly ubiquitous outposts of McDonald's, Domino's and KFCs that keep popping up, like tourists on holiday, wherever one goes.

As the restaurant industry in the U.S. turns increasingly dour, major brands are turning their attention abroad, where business remains relatively robust and growing middle classes are creating large pools of consumers eager to taste affordable American-style fare.

Not only do the companies encounter less competition there than in the U.S., but newly arrived brands also typically enjoy a novelty aura that attracts the curious. Finally, many franchisers sell operating rights to local businesspeople, who assume responsibility for the restaurants day to day and send royalty payments back to the chains' home offices, often giving the corporate owners a superior return on their investment.

"Trends continue to be in our favor," says McDonald's Corp. President Ralph Alvarez. "We're growing [abroad] because demand exceeds our supply."

Many investors in McDonald's and multi-fast-food giant Yum Brands Inc. are holding those stocks precisely because of the perceived opportunities overseas.

This year, Burger King, McDonald's and Papa John's International Inc. are among chains intending to open more restaurants abroad than at home. And in laying out plans for combining Wendy's International Inc. with its Arby's sandwich business, Triarc Cos. said it sees substantial possibilities abroad, where both brands have relatively few outlets.

YUM, which owns Pizza Hut, Taco Bell and Long John Silver's, along with KFC, estimates that within 10 years 70% of its profits will come from outside the U.S. Today, about 55% does.

The company is a stellar example of how to cook up overseas potential. China, a market it entered 21 years ago, today delivers about 25% of the company's annual profits. Its KFC brand has more than 2,000 locations in 500 cities across the Chinese mainland, with restaurants that not only serve chicken but also congee soup and fried dough at breakfast. (McDonald's, which followed KFC to China, has fewer than half that number.) Yum is even venturing into the coals-to-Newcastle business of selling its version of Chinese food to the Chinese.

With 15,000 of its 35,000 restaurants outside the U.S., Yum continues to seek out new markets. KFC soon will enter Nigeria, its 106th country. Next year Yum plans to test the popularity of its best-selling domestic brand, Taco Bell, in India.

Casual-dining operators also are trekking abroad in search of profits. Chili's parent, Brinker International Inc., which says its long-term vision is to become the "dominant, global casual-dining restaurant portfolio company," last year signed development agreements to expand in Australia, Canada, Ecuador, Honduras, Peru, Portugal, South Korea and Turkey.

As in the U.S., McDonald's says, finding the right location is the company's biggest challenge abroad. Prime real-estate targets are increasingly in suburbs ringing the cities of Europe, Asia and Latin America. The world's largest hamburger chain, McDonald's has more than 17,500, or about 56% of its restaurants, outside the U.S.

While McDonald's Mr. Alvarez says that "we're not looking for new countries" to enter, archrival Burger King has been doing just that. In fiscal 2007, the No. 2 company in hamburger restaurants behind McDonald's went into Japan, Poland, Egypt and Indonesia. In the past two years it has opened 34 restaurants in 14 cities in Brazil alone.

Another dominant U.S. player abroad is Domino's Pizza Inc., with some 3,500 stores, or about 40% of its total, outside the U.S. That 25-year overseas presence recently helped offset disappointing domestic results; in the last quarter, international comparable sales -- free from the intense competition that has roiled the U.S. pizza market -- rose 8.8% from a year ago while Domino's domestic business experienced a 5.2% drop.

Some restaurateurs modify their menus to cater to local tastes. In some parts of Asia, for instance, McDonald's serves rice burgers: shredded beef between rice patties. Customers in the Netherlands can order a deep-fried patty of beef ragout. In India, its Big Mac -- called the Maharaja Mac -- is made with chicken rather than beef. But, says Mr. Alvarez, "our core menu is still what you know in the U.S. People come to McDonald's because they want an American product."

Overseas success isn't a sure bet. Papa John's stumbled on its first foreign sojourn, when it entered Mexico in 1998. "We didn't have our act together," says David Flanery, president of the pizza company's international operations. "We had the wrong franchise partner."

As a result, the company eventually closed most of its 40-or-so stores there, found new local operators, revised its support structure and started over. Today, the Louisville-based firm has pizzerias in 28 countries.

Despite the allure, some big U.S. restaurateurs haven't ventured outside North America. They include Cheesecake Factory Inc., Jack In The Box Inc., Panera Bread Co., CBRL Group's Cracker Barrel Old Country Store chain and Darden Restaurants Inc.. Each has indicated it sees significant growth at home.

"We periodically look at international expansion to understand where opportunities exist," says Darden spokesman Rich Jeffers. "However, given the momentum that we have at our existing businesses and given the potential that we have with LongHorn [steakhouse], Bahama Breeze, Capital Grille and Seasons 52, we believe that our focus on domestic opportunity will consume most of our time over the next few years." Darden does operate a smattering of Olive Garden and Red Lobster restaurants in Canada.

Write to Richard Gibson at dick.gibson@dowjones.com