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."

Francorp Client - Dirty Dog Hauling

Dog days
Friends are in business for the long haul
By Elizabeth MillardAs published in: Franchise Times - August 2008
Two lifelong friends team up to create Dirty Dog Hauling, an African-American owned company going head-to-head (and truck-to-truck) with larger competitors.Some entrepreneurs team up because they've been pals for a few years, while others develop a friendship after months of working together. But for Leland Nelson and Gary Fallings, their partnership was forged decades ago, when the two were teenagers walking to school together.
Although they competed against each other on the football field as well as wrestling mat, they maintained their friendship in college despite being at schools that were hours apart. During one visit, they were both surprised to learn they'd even joined the same fraternity, Omega Psi Phi.
After graduation - Fallings earned a degree in education and Nelson 's was in accounting - they were again living in the same city, Harrisburg, Pennsylvania, and working odd jobs since work was proving tough to find. Fallings had a small landscaping business, and when the pair spotted a 1976 Chevy one-ton dump truck for sale, the friends invested $2,400 to buy it. They thought they could be "weekend warriors," Nelson says, and bring in some extra money.
The Dirty Dog trio: Gary Fallings, vice president; Shanika Brown, vice president of marketing and franchise relations; and Leland Nelson, president and co-founder."I had no idea I'd lose my job a week after we bought the truck," Nelson says. "Suddenly, it wasn't about having fun on the weekends making some extra money, it was a primary source of income."
Because their fraternity mascot is a dog, the duo named the enterprise Dirty Dog Hauling, and decided to focus not just on removing landscaping detritus, but also on commercial and residential junk.
"The name stuck, because it's kind of negative, but in a funny way," says Nelson. "People remember it, they call us that on the street, 'Hey, dirty dog!' - and customers love it."
When they opened their (truck) doors in 2005, it was at the height of the housing boom, so demand was great as people starting moving from rental properties to homeownership. And when the bubble burst just a few years later, demand was even higher with the need to clean out foreclosed properties.
At a glance
Franchise Fee: $25,000
Royalty: 8%
Co-op Marketing: 2%
Initial Investment: $70,500 - $93,000Beyond riding the housing wave, Nelson and Fallings have discovered that many people just want to get rid of their junk. Those with two-car garages yearn to park two cars there, rather than squeezing one car amid the discarded air conditioners, old boxes, bags of clothes, and other gear that seems to accumulate in life.
With a call center and courteous drivers, Dirty Dog stands out, Nelson believes: "Many people think that when they call a junk hauler, they'll get a couple of scraggly guys that will take their stuff and dump it illegally somewhere. We're changing that image."
Franchise opportunity
Nelson and Fallings were building their business through advertising and word-of-mouth, when they decided to attend the IFE in 2006 to scope out their competition. They were looking for 1-800-GOT-JUNK, Nelson says, and when they discovered that company representatives weren't there, they felt there was a bigger opportunity to be had.
"They had franchises that were sold out, areas where they couldn't expand, and we thought, this is a great chance to become the second biggest junk removal service," Nelson says.
During one forum, Nelson heard that "if you have no competition, you have no market," and he realized that Dirty Dog could be the Burger King - rather than the McDonald's - of the junk hauling industry.
The company decided to investigate franchising, and just a year later, signed up their first franchisee, based in Lancaster, Pennsylvania. Currently, there are "a lot of tire kickers" that call, Nelson says, but he hopes interest will turn into more franchises in the near future.
"You can have the best process and systems in the world for creating a franchise, but until someone buys, it's not validated," Nelson says. "We now have that validation, so we're ready to go to the next level."
Focusing on East Coast expansion first, the company has been trying to raise private equity to grow the concept, he adds.
Going Strong
Dirty Dog has had its challenges in the past few years, Nelson notes, but none of them were tied to the fact that it's a minority-owned business, even though there are few of those types of franchises that exist, he says.
"We just happen to be minority-owned, but we feel like the financing and opportunities are open to everybody," Nelson adds. "I do think that everyone faces the same challenges with putting together the right systems, and avoiding being undercapitalized. But if we can do it, anyone can do it."
The company got kicked off by startup money from family and friends, as well as money from both Nelson's and Fallings' 401(k) plans. "We put our skin in the game," Nelson says.
One differentiator, Nelson says, is a "franchise dashboard" they've developed that uses technology like Blackberry devices to keep haulers connected with customers. In keeping with the dog theme, the system is called Paw Tracker.
And they haven't forgotten their connection to the local community, which fostered them as teenagers and keeps them busy now. Every September, the company hosts "Woofstock," a dog parade that focuses on litter prevention and junk awareness.
The company has also worked on a dozen community service projects, in a program called (what else?) FETCH, which stands for Faith, Enthusiasm, Tenacity, Community, and Harmony. "You can't take without giving back," Nelson says.

www.francorpconnect.com

Francorp Client - Al's Beef

From its humble beginning back in 1938, brother Al Ferreri and his sister and brother-in-law, Frances and Chris Pacelli, Sr. began developing what is known today as one of the "Top 10 Sandwiches in America," a "Chicago Food Legend" and "Chicago's #1 Italian Beef Sandwich," an honor bestowed upon it by Chicago magazine.
The original idea for the Italian beef sandwich was formed out of necessity, as many great ideas are. In the great depression era, meat was scarce. Chris and Al would go to family weddings and in order to make the meat go around, the family sliced it thinly and made sandwiches.
Chris and Al sat down in Al’s home kitchen and formulated their now legendary recipe. They would make their thinly sliced Italian beef sandwiches and deliver them to the local hospitals and businesses in the area. Soon, demand required that they take the next step and build a little beef stand that the local neighbors could visit.
The first official Al's Beef stand began as a small, curbside, outdoor, wooden neighborhood food stand with countertop service located on Laflin and Harrison Street, in Chicago’s “Little Italy” neighborhood. This is where the Italian beef simmered and the newly added Italian sausage grilled over flaming charcoal.
Chris Sr., who was Al's brother-in-law, maintained an outside job during the war, while Al's sister Frances managed to work at the beef stand and raise three sons, Terry, Chuck and Chris, Jr. When the pressures and demands of growing a business became overwhelming, Chris Sr. was forced to devote all of his energies to the beef stand on a full-time basis. It was then that the legend truly began.
The beef stand gradually grew and moved to its present location at 1079 W. Taylor Street, still in Chicago’s "Little Italy." It was here that they added Chicago hot dogs, fresh, homemade, hand-cut French fries, and Polish sausage to the menu.
Chris and Al ran the business from 1938 into the 1970’s when Chris Sr.’s sons Terry, Chris Jr. and Chuck took over the helm. The three brothers ran the day to day operation at the Taylor Street location and began receiving incredible media praise for their restaurant specialty, the Al’s Italian beef sandwich and their homemade, hand-cut French fries. It was after one such media article in Chicago magazine that the brothers had to expand the beef stand to its current building.
In 1999, Dave Howey, of Chicago Franchise Systems, Inc., owner and franchisor of Nancy's Pizza, bought the rights to Al's #1 Italian Beef Restaurants. Dave had been a loyal customer since 1971 and worked out the details to expand Al’s Beef through franchising. Al's Beef now has almost 100 locations around the United States.

The first Al's Beef franchise opened in Tinley Park, IL in the summer of 2001. The Al's Beef chain has grown significantly throughout Chicagoland and is currently casting its eye to other states.
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Al's Beef is totally dedicated to preserving what this country has come to recognize as a true food icon. When the History Channel produced their 2-hour "History of Food in America" documentary, Al's Beef was the only Chicago restaurant featured. When Gourmet magazine decided to do a story on the new Italian beef sensation, it was Al's Beef that was featured in a 4-page spread. And when Travel and Leisure magazine ran their "Top 10 Sandwiches in America"… you guessed it, it was Al's Beef that was picked. In March of 2008, Esquire Magazine named the Al’s Italian Beef sandwich as one of “the Best Sandwiches in America.” It's these and so many more awards and recognitions that have kept us focused on the tradition: keeping our eye on the beef. We have a lot to be proud of and a great legacy to grow and preserve.

Buffalo Wild Wings

The Best Stocks for New Money
By Rex Moore July 6, 2008 Comments (0)
2 Recommendations
If I told you I would hand you some money to buy a few shares of a stock, but only if you could tell me which company was at the top of your buy list, could you do it? Most investors probably could do no more than toss out a random name, because few keep an up-to-date short list of their best investing ideas.
Yet such a list is crucial -- even beyond the obvious reason of knowing which stocks to buy when opportunities arise. The very act of diligently keeping such a list will sharpen your investing skills. It forces you to develop a thesis for every company and constantly reassess that business to make sure your thesis still holds. You'll also be in better tune with valuation, especially relative to other companies in the industry.
For example ... My own portfolio includes full positions in some stable, blue-chip stalwarts such as Procter & Gamble (NYSE: PG) and Anheuser-Busch (NYSE: BUD). I also have lighter positions in some small caps, Ctrip.com (Nasdaq: CTRP) and Buffalo Wild Wings (Nasdaq: BWLD) among them.
So when it came time to add new money a few years ago, I had good balance in my portfolio and was free to consider almost any stock. For many reasons, including solid management, reliable cash flows, and compelling valuation, Johnson & Johnson (NYSE: JNJ) had been on my short list. After a 10% drop in less than a month, it had moved up to No. 1. I pulled the trigger in early February 2006 and got in at $56.95.
Of course, only time will tell whether that was a good buy (so far, so good). But because I keep an up-to-date list of my best stock ideas, I was able to buy with confidence when the opportunity presented itself.
Look inward, grasshopper When making your list, don't forget stocks you already own. All of us will have a limited number of great ideas in our investing lifetime. Often, your best stocks are already sitting in your portfolio, just waiting for new money.
Most of history's greatest investors followed this route. You may already be familiar with Charlie Munger's disdain for over-diversification; he'd rather have his money in a small handful of stocks, allocating not a single penny to any second-tier idea. David and Tom Gardner are thinking along the same lines for their Motley Fool Stock Advisor members. Each month, they publish their top five stocks to buy now for those ready to allocate new money.
But don't think that you need to limit yourself to just four or five stocks. In fact, the less experienced you are as an investor, the more diversity you need in your portfolio, to keep one or two bad mistakes from torpedoing your net worth. Masters such as Munger and Buffett are tops in their field; they're not perfect, but it's highly unlikely that any one investment of theirs will completely tank and significantly harm Berkshire Hathaway shareholders. The rest of us, however, need a bit more diversification.
But no matter your investing experience, you'll want to focus on your best ideas as you add new money. And as the years roll by, if you were right about most of your ideas, the extra concentration in them will supercharge your returns.

Starbucks to Introduce Smoothie Line

By Jennifer Martinez
LOS ANGELES,, July 11 (Reuters) - Starbucks Corp (SBUX.O: Quote, Profile, Research, Stock Buzz) is preparing to launch a line of smoothies next week, according to advertising at stores in several U.S. cities.
Signs in at least four coffee shops in Los Angeles and Chicago said the smoothies, called "Vivanno Nourishing Blends," will hit stores on July 15. Employees at stores in New York, Washington and San Francisco also confirmed the launch of new smoothies next week.
Starbucks would not comment on it.
A Washington, D.C. store gave out samples, saying the drink will have 250 calories. The new smoothies come in two flavors, Orange Mango Banana and Chocolate Banana, according to a sign in a Los Angeles store.
"Starbucks hasn't had real meaningful innovation in its stores in the past couple of years," said John Owens, a restaurant industry analyst with Morningstar Inc. "(The smoothies) are one of several initiatives Starbucks has in place to breathe life into their new brands."
The new drinks will mean increased competition for smoothie chains such as Jamba Inc (JMBA.O: Quote, Profile, Research, Stock Buzz), Owens said.
The smoothies are being rolled out as Starbucks is scrambling to increase sales at its U.S. coffee shops. Demand for the company's premium-priced coffee drinks has softened as consumers deal with a housing downturn and higher prices for food and energy.
Competitors like Dunkin' Donuts and McDonald's Corp (MCD.N: Quote, Profile, Research, Stock Buzz) are also chipping away at Starbucks' business with cheaper espresso drinks and iced coffee.
To help revive profits, Starbucks said on July 1 it planned to close 600 poorly performing U.S. stores and cut up to 12,000 jobs. On a conference call that day, Chief Financial Officer Pete Bocian said Starbucks would be rolling out a line of smoothies nationwide in mid-July. (Additional reporting by Erin Zureick in Chicago, Lisa Baertlein in San Francisco, Martin Howell in New York and Diane Bartz in Washington) (Reporting by Jennifer Martinez in Los Angeles; editing by Nichola Groom)

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 .

Fantastic Sam's

Franchise Interviews Meets with Master Franchisee to Fantastic Sam’s Jerome Williams Any time you hear the word ‘franchise’, people think of fast food. However, did you know over seventy-five industries are now franchising? One of these industries that more professionals from Corporate America, the IT world and aspiring entrepreneurs are entering is the hair care industry. Fantastic Sam’s® is the world's largest full-service hair care franchise, with salons located throughout the United States, as well as some salons in Canada, Singapore and Japan.

Their first salon opened in Memphis, Tennessee in July of 1974 and we began franchising in 1976. Their salons have earned a reputation for providing quality hair care services, including cuts, perms and color, to the entire family. The goal at Fantastic Sam’s® is to provide our guests with unexpected quality, unexpected service and unexpected style at a great value. With over 1350 salons, Fantastic Sam’s® provides a wide range of services including: haircutting & styling, hair coloring, texturizing and a variety of hair treatments. Their stylists are continually attending classes presented by our very own educators to keep up with all the latest styles and trends. I had the distinct pleasure of meeting Jerome Williams who owns a Master Franchise for Fantastic Sam’s. Jerome provided us with the keys to success in finding a franchise, training for Fantastic Sam’s’ franchisees, and the characteristics of typical Fantastic Sam’s franchisees. I hope you enjoy it as much as we did.

Definition of Master Franchise Master franchises offer the opportunity for qualified individuals or corporations to purchase the rights to sub-franchise the brand within a given country or territory. Master franchises acquire an area franchise, as well as operate in its own location. Some of the services normally provided by the original franchisor will be provided by the master franchisee and between them they will divide the franchise fee and subsequent royalties paid by the sub-franchisee.

The Interview Franchise Interviews – What were you doing before getting involved with Fantastic Sam’s? Jerome Williams – I used to be a medical equipment and supplies sales representative. Franchise Interviews – That is a big difference from franchising. How did you get involved with Fantastic Sam’s? Jerome Williams – Although I worked in Corporate America, part of my game plan was to one day own a business. At least twice a year, I would meet with a franchise broker. I did that for 5 years until I found something I wanted to investigate further which was Fantastic Sam’s. Pictured above is Master franchisee to Fantastic Sam’s Jerome William. Franchise Interviews – What is a typical day like as a Fantastic Sam’s franchisee? Jerome Williams – Because we are a master franchisee, there is no typical day. It includes some of the following: · Helping our franchisee under us with daily operation questions, · Creating new marketing and advertising materials, · Planning meetings with current and new vendors, · Looking for real estate for a new franchisee, · Interviewing and prospecting candidates, · Resolving problems, · Negotiating letters of intent for real estate, · Creating sales and marketing materials. -continued on back page- M Franchise Interviews, LLC● 327 Waterford Terrace● Easton, PA 18042 Phone 1-888-722-2785● Fax 1-800-784-8374● email- marty@FranchiseInterviews.com An exterior view of a Fantastic Sam’s salon franchise In addition to all of that, we own a Fantastic Sam’s in Lawrenceville, NJ, which is our prototype store. Franchise Interviews – Who is the typical franchisee that purchases a Fantastic Sam’s franchise? Jerome Williams – It may be people from Corporate America, who may have just been downsized. We get a lot of people from the IT world. We also get a lot of entrepreneurs. Franchise Interviews – What type of skills or qualities should someone have to be a Fantastic Sam’s franchisee? What skills do you typically look for? Jerome Williams – They should have an entrepreneurial spirit. They should also remain open to learning as well as be a team player because franchising by nature is about building a brand. Franchise Interviews – It seems better that a prospective franchisee doesn’t have experience in the industry because they would be more open to learning. Jerome Williams – Without question. Someone who has owned a salon may struggle because they would ask questions like, “Why are these guys doing it this way?” and “Why do I need to pay a franchise fee and royalty?” Franchise Interviews – They don’t understand franchising. Jerome Williams – That is right. Franchise Interviews – What is the training like for a new Fantastic Sam’s franchisee? Jerome Williams – Training is intense. New franchisees go to Fantastic Sam’s University, which is a weeklong and is located in the Boston, Massachusetts’s area or out in California at our old corporate headquarters. They learn everything from soup to nuts about the business from how to price their products and services and how to deal with people. There is a wealth of information provided in the training. The beautiful thing is training doesn’t stop there. For our salon owners, training is continuous. We have a monthly meeting at our regional office in East Brunswick, NJ where other owners can share best practices. Franchise Interviews – What advice would you give to aspiring entrepreneurs looking to buy a franchise? Jerome Williams – That is a big question that I would answer with a couple of suggestions. Buying a franchise is a very involved process. If you are doing it alone, I would suggest using a franchise broker because they can present you with various options based on your interest, finances and skills. A skilled franchise broker will help guide your through the due diligence process and present more than one option to look at. That type of guidance, which is usually free, is invaluable. If you are researching a franchise with a partner, than you can divide tasks for your search. The key to both scenarios is education. Make sure you know everything about the opportunity you are looking at. Also make certain you are mentally, emotionally and financially prepared to move forward if you find something that your like. Franchise Interviews – A lot of times we compare it to a marriage Jerome. Jerome Williams – Exactly, and like a marriage, you can lose your shirt if you are not careful.

The Coffee Bean

Summary
Don't be chai; stand your grounds and espresso yourself over a cup at The Coffee Bean. International Coffee & Tea operates and franchises more than 520 coffee shops operating under the name The Coffee Bean & Tea Leaf. The outlets, found mostly in California and in about a dozen foreign countries, feature a variety of fresh roasted coffees and specialty teas, along with baked goods and blended ice drinks. More than 270 locations are company owned, while the rest are franchised. The chain was started by Mona and Herbert Hyman in 1963. Chairman Sunny Sassoon, his brother Victor, and investor Severin Wunderman bought the company in 1998. More from Hoovers »
1945 S. La Cienega Blvd. Los Angeles, CA 90034 USA +1-310-237-2326 (Phone)310-815-3676 (Fax)
Company website:http://www.coffeebean.com

Huffman Builders

Huffman Builders, “Building a Business, Not Just a Building”, had met with Francorp,
the leader in Franchising, based in Chicago, IL. Francorp invited Jerry Huffman, founder
& CEO of Huffman Builders for a week long session as a new client of Francorp.
Huffman Builders “Building a business, Not just a building” is more than a slogan for
Mr. Huffman, who specializes in custom medical facilities, medical office condos, and
professional custom offices in multiple states.
“We are more like advisors, “Huffman Advisors,” with an end product that is customized
for each customer assisting them with our in house professionals from site selection,
lending, architects, interior design, technology & equipment, and marketing,” says Jerry
Huffman, President & CEO of Huffman Builders, a Texas based company. “We build
businesses, not just buildings. Ownership of office space creates an atmosphere of
pride and a great return on the investment. We help our clients realize their aspiration!”,
Huffman the 2006 Ernst & Young Entrepreneur Finalist of the Year concluded.
Francorp expects Jerry Huffman’s “business in a box” to help grow many businesses
nationwide. According to Francorp, they will build an alliance with Huffman Builders.
Huffman Builders will be part of Francorps’ clients, which includes many global companies
such as; American Express, Ace Hardware, Bridgestone/Firestone, Churches Chicken,
Holiday Inns, IBM, MetLife, Sharper Image, Xerox.

Investing in a Franchised Business

It is a known fact that franchise owners usually have a better chance of success as a business operator than an independent start up owner. The likelihood of success can be attributed to a proven and tested business model, existing market brand, support and training from the franchisor. The question is, are there advantages to investing in the public stocks of franchises?
Comparing the actual ownership and operation of a franchise to owning the stocks is like comparing apples to oranges. In terms of just an investment hypothetical, there are some clear advantages. We will take McDonald’s Corporation (NYSE:MCD) as an example.

The start up capital requirement for owning a McDonald’s franchise ranges from $500K-$1.6M. It would take a number of years to break even and turn a profit on the money invested. Since it is a franchise business, there are royalty payments to be paid and the time expenditure of running a business can be hefty.
On the other hand, you do not need much to really own a piece of McDonald’s; in fact you can be an “owner” for $54.10 (current share price). If you are independently wealthy and just happen to have an extra $500K at your disposal and bought MCD five years ago at $13 per share, today you are sitting on at least a cool $2M in profits assuming proper trailing stop loss management and you got out at the $63.69 high.
Not a bad ROI for about 20 minute’s worth of work placing trades and without all the hassles of running a brick and mortar business. Ok, ok I hear what you are saying. This was an ideal situation, hindsight is 20/20 and no one in their right mind would plop down half a million on just one stock.

The point of this exercise is to demonstrate the potential of publicly traded franchises as a unique class of stocks to invest in. Entrepreneur magazine just recently released their “2008 500 Franchise Rankings” of both private and public franchises. McDonald’s and Yum! Brands (NYSE:YUM) were among several of the many publicly traded franchises which made the top 20 on this list. Owning a carefully chosen basket of these stocks would have performed well.
The University of New Hampshire’s Rosenberg Center compiles an index that tracks the market performance of the top 50 U.S. public franchisors every quarter. Over 98 percent of the market capitalization of corporations involved in the business of franchising is represented by the RCF 50 Index. This composite index of franchisors has beaten the S&P 500 in the past 5 years as shown in the published 2007 3rd quarter report.
Professor Udo Schlentrich, director of the University of New Hampshire’s William Rosenberg International Franchise Center has this to say about the performance of the RCF 50 Index during and interview with Blue MauMau:
“Although the Fran 50 companies have out-performed the S&P 500 companies for the past 5 years, there is no guarantee that they will continue to do so in the future. We believe some of the reasons we have seen this growth is that franchising, as a business model, has become better understood and valued by the investment community. For example, franchised companies are, by their very nature, less capital intensive. In addition, the financial risk is largely borne by the individual franchisee. Also, franchisee-owned stores are seen to operate more effectively in a retail environment than corporate-owned stores — however, there is still some controversy on this subject. Finally, many franchise systems have been able to effectively penetrate international markets, thus achieving additional growth and spreading economic and political risk.” –Udo Schlentrich
Fourth quarter 2007 and this year may see an overall drop in the index because of recent franchisor consolidations, market volatility and uncertainty, but if past performances are of any indication, the trend in the RCF 50 Index may continue to outperform the S&P 500 –even in this downturn.

Francorp Client - SealMaster

SealMaster Sells 32 Franchises

We are excited to announce that Francorp client, SealMaster, has sold 32 franchises and is planning to have franchisees in all 50 states.
SealMaster approached Francorp in 2000 to assit them in the development of their franchise program. Today, SealMaster is the industry leader in production of high-quality pavement maintenance equipment. Contractors, highway/street departments, and property owners have come to rely on SealMaster for quality products and service. SealMaster is driven by a philosophy of total dedication to the pavement maintenance industry.

Don Boroian - Beadniks

Beadniks Joins Mall of America

Beadniks has recently closed a deal with the largest retail and entertainment complex, Mall of America.
After receiving a full development program from Francorp, Beadniks has become "one of the hottest new franchises in the U.S." according to the 2008 Bonds Franchise Resource Guide. Beadniks is one of the largest bead sellers in the world with seven locations including Martha's Vineyard, Chicago, and Santa Monica. Beadniks offers an inspiring and imaginative atmosphere in which customers can craft their own beaded works of art.

Coca-Cola

Coca-Cola FEMSA completes Brazil franchise buy
Coca-Cola FEMSA completes $364.1 million acquisition of Coca-Cola Brazil franchise Remil
June 27, 2008: 06:54 AM EST

NEW YORK (Associated Press) - Coca-Cola FEMSA SAB de CV, the largest Coca-Cola bottler in Latin America, said late Thursday it completed the purchase of Coca-Cola Co.'s Refrigerantes Minas Gerais Ltda. franchise territory for $364.1 million.
Coca-Cola FEMSA said the deal will expand its footprint in Brazil by more than a third.
Founded in 1948 in Belo Horizonte, Remil sold 114 million unit cases of sparkling beverages, water, still beverages and beer in 2007. The franchise serves the cities of Belo Horizonte, Contagem, Curvelo, Divinopolis, Governador Valadares, Ipatinga, Juiz de Fora, Lavras, Leopoldina, Mariana, Montes Claros, Janauba and Petropolis.
Coca-Cola FEMSA's operations in Brazil, including both of its franchise territories, will now represent about 30 percent of the Coca-Cola bottling system in Brazil.
Mexico's Coca-Cola FEMSA produces and distributes Coke, Sprite, Fanta and other Coca-Cola drinks in Mexico, Guatemala, Nicaragua, Costa Rica, Panama, Colombia, Venezuela, Brazil and Argentina. The company has 30 bottling facilities in Latin America and serves over 1.5 million retailers.
Coca-Cola Co. owns a 31.6 percent stake in the company.

E-Myth

E-Myth and FranchisEsource Partner


June 20, 2008 - Santa Rosa, CA — A strategic partnership was announced today between E-Myth Worldwide™, the global leader in entrepreneurial business success education systems and FranchisEsource Brands International, a multi-brand franchisor, whose three business coaching franchise concepts, together with E-Myth, provide a one stop resource for all things entrepreneurial. The partnership creates the largest franchise network providing business success education and business coaching to entrepreneurs.

In the initial phase of the partnership, FranchisESource will enhance its business education portfolio with new programs based on E-Myth’s proven business success model. These programs will be available through FranchisEsource’s network of business coaches including AdviCoach®, The Entrepreneur’s Source® and Business Partner Marketing®.

“For more than 20 years we’ve helped entrepreneurs embark on their life’s dream of successful self employment by guiding them through a discovery process to select franchise and business opportunities, and then coaching them through their early stages of business,” said Terry Powell, CEO of FranchisEsource. “The integration of E-Myth’s educational programs will enhance our business coaching programs to help our clients develop the skills and knowledge they need to achieve predictable business success.”

“The E-Myth business success system has been embraced and successfully leveraged by small business owners, independent franchisees and leading franchise corporations,” said Bill Schlegel, CEO of E-Myth Worldwide. “FranchisEsource shares our commitment to entrepreneurial success. Together, we’ll support the estimated 20 million self-employed individuals in the U.S. leveraging E-Myth’s proven business success coaching platform.”

About E-Myth Worldwide

E-Myth Worldwide is a business success education company that delivers comprehensive, web-based programs. For more than 30 years, the company has trained business owners to work on their business, not just in their business, by building the strategic systems crucial to success. E-Myth provides entrepreneurs with the growth strategies and skills necessary to build predictable, sustainable and successful businesses. The company's programs, systems and tools are based on the principles first articulated in founder Michael Gerber's bestselling book, The E-Myth Revisited: Why Most Small Businesses Don't Work and What to Do About It. Visit http://www.e-myth.com for more information.

About FranchisEsource Brands International

FranchisEsource Brands International is a multi-brand franchisor principally engaged in growing solid concepts into major international franchise brands such as The Entrepreneur's Source, Decor & You, AdviCoach® (formerly Business Advisers International), Business Partner, FranchiseSearch.com and WEBB, Women Empowered by Business. FSBI dominates the business coaching franchise market, with over 33 percent of the market controlled by its three business coaching brands. Visit http://www.FranchiseNewsRoom.com

© 2008 E-Myth Worldwide, Inc. All rights reserved. Information is subject to change without notice. E-Myth and the E-Myth Worldwide logo are trademarks of E-Myth Worldwide, Inc. All other brand or product names are trademarks or registered trademarks of their respective holders.

Religious "Franchises"

Inspired by Starbucks
Charismatic Pastors Grow New Flocks Overseas,
Using Satellites, DVds and Franchise Marketing
To Spread Their Own Brand of Religion.
By ALEXANDRA ALTER
June 13, 2008; Page W1

Lima, Peru

Josh Ritchie/Rapport Press (3) and Karel Navarro/Getty Images (4) both for The Wall Street Journal
Flamingo Road services in Lima, Peru, and Cooper City, Fla.
On a recent Sunday, worshippers gathered in a multiplex theater next to a Starbucks, McDonald's and T.G.I. Friday's. The lights dimmed and the Rev. Troy Gramling, a goateed man dressed in jeans, T-shirt and blazer, filled the screen. "God knows your secret, and he loves you anyway," he said. "Isn't that cool?" A few people answered, "Amen," as if Mr. Gramling was there preaching, instead of 2,650 miles away in Cooper City, Fla.

While missionaries have long carried their message overseas, a new generation of churches is spreading a strain of evangelical Christianity with worship services as slickly packaged as any U.S. franchise. Rather than seeking converts to a mainstream denomination, these independent churches are forming global organizations anchored by a single leader. Many far-flung congregants watch their pastor via satellite or DVD each week; the services abroad are designed to replicate Sundays at the home church.

Mr. Gramling's Flamingo Road Church, which has a weekly attendance of 8,000, is based in Broward County, Fla., where he records his sermons on DVD for screenings here, as well as at three branches in South Florida. Each church uses the same distinctive music, banners and logo -- a white cube bisected by a black curving road. Mr. Gramling says he tried to copy the success of Starbucks by assembling a creative team to hone "the look, the feel, the branding idea, of what Flamingo Road is." Like Starbucks, Mr. Gramling is thinking big. His goal is 50 churches world-wide, 100,000 members and a $150 million-a-year budget.


Interactive map of seven churches with global reach
At least half a dozen U.S. mega-churches have opened international branches in recent years, and plans are in the works for many more. "If Starbucks can start four stores a day, why can't churches?" says John Bishop, the pastor at Living Hope Church. His congregation in Vancouver, Wash., which has a weekly attendance of 6,000, has 23 satellite churches, including new sites in New Zealand, India, Mexico and the Philippines. The Healing Place Church in Baton Rouge, La., has eight U.S. branches, and in the past year opened churches in Mozambique and Swaziland. Celebration Church in Jacksonville, Fla., with 10,000 members, recently launched branches in Bulawayo, Zimbabwe and Atiquipa, Peru. "We try to keep consistent what we call the DNA of our church, much like a business would," says Celebration's pastor, Stovall Weems.

These super churches have the resources to expand overseas, as only mainstream denominations could in the past. With a large base of followers, the biggest independent churches have "as much money as a small denomination, so they're creating denominations of themselves," says Dana Robert, co-director of the Center for Global Christianity and Mission at Boston University. Flamingo Road, which is named after the street that fronts the main church, spends about $130,000 a year to run its Lima branch, a fraction of its $7.5 million annual budget. That money, as well as plans to spend $1 million on a live satellite system to link the campuses, are strategic investments for a toehold in a growing overseas market.

"The religious market is saturated in the U.S.," says Manuel Vasquez, co-author of "Globalizing the Sacred: Religion Across the Americas." "There is a sense now that you have to go international to expand your reach if you want to be a player." By 2025, seven of 10 Christians will live in Africa, Latin America and Asia, according to Philip Jenkins, author of "The Next Christendom: The Coming of Global Christianity." In Africa, Christians make up nearly half of the continent's population, up from about 10% in 1900.

A haze of morning fog and pollution cloaked downtown as volunteers on a recent Sunday transformed the Cineplanet Alcázar Theater into a branch of Mr. Gramling's church. Next to movie posters for "Indiana Jones," hung an 8-foot banner, "Flamingo Road: One Church, Where You Are." Greeters passed out glossy church brochures. At a table near the popcorn and drink counter, people browsed Bibles in English and Spanish. There was a sign-up sheet for baptisms during an upcoming visit by Mr. Gramling, and DVD copies of his past sermons.


Karel Navarro/Getty Images for Wall Street Journal
A prerecorded sermon in Lima
The Lima church receives weekly FedEx shipments with components of the Flamingo Road brand: Mr. Gramling's recorded sermons; business cards with the church name, logo and service times; color brochures that advertise sermon themes for the month, and MTV-style documentaries on such topics as lust and temptation for the youth services. Staff members and volunteers get Flamingo Road T-shirts and dog tags.

Inside the theater, about 150 worshippers clapped and swayed to a 10-piece rock band. "God is awesome, he's so awesome, God is awesome in this place," they sang. During his sermon, Mr. Gramling compared King David's struggle to control his desire for the married woman Bathsheba with WWE wrestling.

"Sometimes, you feel like he is here," church member Fiorella Bernal, 21 years old, says of Mr. Gramling. Ms. Bernal, who used to attend a Baptist church, has never met the pastor. She joined Flamingo Road in January and now sings in the church band. She also attends the weekly Saturday night youth service at a jazz club. Ms. Bernal says she admires Mr. Gramling's preaching style: "He talks about everything. Nothing's taboo."

Anibal Pinedo, 25, a translator, says he's still not accustomed to watching prerecorded sermons. "I don't like that he's not here," he says. But Mr. Pinedo, who was raised Catholic, says he likes the services, upbeat music and Mr. Gramling's skill at applying biblical teachings to everyday life. "I feel like he's my pastor because of his message," he says. Max Vergara Fowler, 45, another former Catholic, says he started attending a year ago after he heard an ad on the radio. "The Catholic Church is too rigid," he says. "I feel more comfortable here."

Some of Mr. Gramling's sermons fail to translate well. One, about being "tattooed for Christ," confused congregants who thought the pastor was advocating real tattoos. In another sermon series, called "I've Screwed Up," Mr. Gramling urged congregants to confess their sins anonymously on the church Web site. Some congregants were scandalized, particularly those who were raised in the Catholic Church, where confession is administered by a priest.


Josh Ritchie/Rapport Press for The Wall Street Journal
The Rev. Troy Gramling onstage
After the sermon, Steve Guschov, an American expatriate who oversees the Lima church, collects the offering in a popcorn container. Flamingo Road Church launched its Lima branch nearly two years ago, after several mission trips to Peru by Mr. Gramling. He recruited Mr. Guschov, a 43-year-old lawyer from Boston, who had moved to Lima to work as a missionary. To attract congregants, Mr. Guschov and his Peruvian wife, Dorcas, offered free movie tickets and sandwich coupons to first-time visitors. They advertised on a rock radio station and posted fliers and brochures outside English language classes. Today, 100 people attend the 9 a.m. Spanish-language service, which has a live translator, and 200 people worship at the 10:30 a.m. English service. The church attracts mostly young, middle-class Peruvians, many of them former Catholics.

A charismatic, self-taught preacher from Paragould, Ark., Mr. Gramling, 41, joined Flamingo Road's staff as an assistant pastor in 2000. Two years later, he took over the church, which is loosely affiliated with the Baptists. Mr. Gramling says he read articles about Starbucks's branding strategy in the Harvard Business Review. He used a "coffee for Christ" campaign to recruit new members by giving away $10 Starbucks gift cards one Easter. Since 2002, his flock has swelled four-fold.

Flamingo Road and other fledgling church chains compete with mainstream denominations and local churches. Critics say franchise churches are culturally homogenous and sap local congregations, just as Wal-Mart and other big retailers squash local competitors. "The downside of McDonaldization is that everything is the same, everything is predictable," says Kurt Fredrickson of Fuller Theological Seminary. "When you're franchised, it becomes more difficult for the local flavor to come through."

Mr. Bishop, of Living Hope Church, says he is expanding abroad in part because of demand: Christians in other countries invite him to launch Living Hope churches. "It's like they're asking us, 'Can we please sell Nikes in our country?' " Mr. Bishop says. "They just love the brand."

Church franchising isn't unique to Americans. Protestant congregations in Nigeria have sites in Europe and the U.S. The Yoido Full Gospel Church of South Korea has more than 100 campuses around the world and 830,000 followers. Hillsong, an evangelical church in Sydney, Australia, has churches in London, Kiev, Ukraine, and Cape Town.


Karel Navarro/Getty Images for The Wall Street Journal
Three people pray in front of the theater concession stand.
Flamingo Road Church leaders hope Lima will be a hub for expanding throughout Peru and neighboring countries. The church is preparing to start prayer services in Iquitos, a city in the middle of Peru's rainforest, and is seeking sites in Cusco, Peru, and São Paulo, Brazil.

Recently, the Guschovs flew to Iquitos to scout locations and enlist local Christian leaders to join Flamingo Road. Iquitos, a noisy grid of corrugated tin-roofed buildings swarmed by motorcycle rickshaws, has attracted missionaries since Jesuit priests arrived in the 1500s. Today, the city draws Baptists and other mainstream denominations seeking to convert indigenous tribes along the Amazon. During a visit this month with members of the Yagua tribe, Mr. Guschov brought cooking oil, rice, sugar and soap. He prayed with 15 residents of a thatch-roofed village, which is built on the banks of an Amazon River tributary.

Mr. Guschov later met with local Christian leaders to float the idea of a Flamingo Road franchise. Many agreed English-language services would attract young Peruvians, especially those seeking jobs in tourism. Others were skeptical. Alex Litarolo Suarez, 30, who works as a translator for American missionaries, asked Mr. Guschov if he planned to feed off local congregations. "We don't see ourselves as competition, but other churches do look at it that way, unfortunately," Mr. Guschov said. "We're not trying to rob members from other churches."

After the meeting, Mr. Guschov inspected a hotel conference room that overlooked the Amazon. There was a big screen to show a sermon, and room for 150 chairs. It would do for now. "When it comes to Flamingo Road, because of the brand, we need large campuses," Mr. Gramling says. "We're not going to be satisfied with a campus running at 300."

On Sunday, Mr. Gramling preached to thousands at his Cooper City, Fla., headquarters, a 28,000-square-foot building outfitted with three 15-foot high movie screens and a 30,000-watt sound system. In his sermon, he encouraged people to tithe, saying God would bless them. Afterward, in the main church lobby, congregants lined up for free Starbucks coffee.

Write to Alexandra Alter at alexandra.alter@wsj.com

Francorp Clients

Press Releases - Ice Cream and Smoothie FranchisesEstablished Restaurateur Will Open 12 Restaurants in Raleigh-Durham,Wilmington and Lumberton.WILBRAHAM, Mass.

(December 4, 2006) - - Friendly’s Restaurants Franchise, Inc., one of America’s most successful restaurant franchises, today announced that it will significantly expand its presence in North Carolina through a development agreement with established restaurateur Cliford E. Bullard, Jr. Under the development agreement, Bullard will open three Friendly’s restaurants in the Raleigh-Durham, Wilmington and Lumberton markets with the option for nine additional restaurants. The first restaurant is scheduled to open in Lumberton by the end of June 2007, and all 12 locations will be open by June 2013.

Friendly’s current North Carolina location is in Huntersville. Cliford “Clif” Bullard, Jr., has more than 25 years of multi-concept restaurant experience. He owns and operates 19 Burger King and eight Smithfield’s Chicken ‘n Barbecue franchises, primarily in North and South Carolina.“We have long regarded North Carolina as an extremely important strategic market for Friendly’s, and in Clif Bullard we believe we have found the perfect partner to expand our presence here,” said Jim Sullivan, vice president, franchising and real estate development. “Clif’s record as a restaurateur speaks for itself. With his operations expertise and his understanding of local store marketing, he was an ideal choice for Friendly’s and we are confident that he and his team will help make the Friendly’s brand a tremendous success in North Carolina.” Friendly’s, named among the nation’s 25 top performing franchises by the Wall Street Journal, opened its first location in Springfield, Mass., in 1935 and now has more than 500 locations in 16 states.“With delicious food and signature ice cream offered in a concept with five day-parts, the opportunity for volume and growth is outstanding.

Friendly’s top-notch marketing and operations teams offer the complete package of products and support services needed in today’s marketplace.”Each Friendly’s will bring additional jobs and tax revenues to the local area. “I’m looking forward to making Friendly’s an active and valued part of the Raleigh-Durham, Wilmington, and Lumberton communities,” Bullard added. The announcement is part of an ongoing franchise expansion strategy by Friendly’s, which has announced plans for 23 restaurants in the last 10 months. Friendly Ice Cream Corporation (Amex: FRN) is a vertically integrated restaurant company serving signature sandwiches, entrees and ice cream desserts in a friendly, family environment in more than 515 company and franchised restaurants throughout the Northeast.

The company also manufactures ice cream, which is distributed through more than 4,500 supermarkets and other retail locations. With a 71-year operating history, Friendly's enjoys strong brand recognition and is currently revitalizing its restaurants and introducing new products to grow its customer base.

Don Boroian's Profile

A published author, noted speaker and expert legal witness, Mr. Boroian is one of the world's most sought-after consultants in the field of franchise strategy and business expansion. With a career spanning more than four decades, Mr. Boroian and his companies have provided consulting services to more than 10,000 companies and have created full franchise development programs for more than 2,000. His clients have ranged from small and medium-sized businesses to corporate leaders, such as ARCO, Texaco, Hershey Foods, NutraSweet, Nestle, John Deere, Popeye's Fried Chicken, Ryder Trucks, USA Baby and Valvoline. Mr. Boroian’s career in corporate management included a position as Executive Vice President with one of America's largest, publicly-held, fast-food franchisors.

In 1976, Mr. Boroian founded Francorp, pioneering the franchise consulting industry. Providing coordinated strategic planning, legal, operations and marketing services, Francorp was the first and only firm to offer clients comprehensive franchise consulting and development services under one roof. Today, with 13 international offices, serving more than 40 countries worldwide, Francorp is the world's leading franchise consulting and development firm.

Mr. Boroian is a current member of the Advisory Board of DePaul University and a past member of the Board of Trustees of Rush-Presbyterian-St Luke’s Medical Center, the Board of Trustees of Riverside Hospital, and the Board of the Rush Alzheimer’s Center, holding the position of Vice-Chairman. He served as an arbitrator and mediator for the American Arbitration Association and has been an expert witness in franchise litigation in more than 80 cases. An accomplished writer, he has co-authored three of the leading books on franchising: The Franchise Advantage, with Patrick Boroian; How to Buy and Manage A Franchise, with Joseph Mancuso; and most recently Franchising Your Business, with Francorp’s President, Patrick Callaway. A dynamic speaker, his exciting and informative franchising seminars are known throughout the world, and he is sought after for panels, symposia, and media interviews. Mr. Boroian is a graduate of DePaul University and pursued his post-graduate studies at DePaul University and the University of Chicago’s Executive M.B.A. program.

www.francorp.com