Don Boroian - Francorp Consulting

Francorp is the world's largest and most experienced franchise develpment and consulting firm. Francorp has a responsibility to work with all of the world's small and medium sized businesses to help them understand and explore the concept of franchising their businesses as a way to grow.
Francorp is the largest franchise consulting firm in the world and has the resources to be at all of the world's major franchise and small business exihibitions. This weekend Francorp is working with the New York Restaurant Show and convention to educate the successful restauranteurs in the North East about franchising and help them evaluate the concept of franchise development.

Francorp will be presenting to the restaurant owners at the show on how franchising works and whether the expansion vehicle could be an opportunity for some of the business owners at the show. Francorp has done business in the northeast with many of the successful food franchise concepts and restaurants. For more information on Francorp and the work that the global firm has done please visit the Francorp site, www.francorp.com

Francorp was founded in 1976 and has worked with most of the world's largest and most successful franchise systems. Francorp was founded by Don Boroian and continues to lead the franchise marketplace through the United States and around the globe.

Immigrants as Franchisees

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

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

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

What's Up Dog! To Expand Through Franchising

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

What’s Up Dog has announced they will be launching an aggressive expansion program through franchising.For over five years, What’s Up Dog has offered the hot dog enthusiast a variety of gourmet hot dogs and sausages within the San Francisco area. Their tantalizing menu consists of old carnival favorites like the corn dog, chili cheese nachos and garlic fries. But the eclectic selection of frankfurters and sausages (“Lemon Chicken”, Veggie Tofurky”, “Kielbasa”) has reinvented an American favorite.Americans eat an estimated 20 billion hot dogs a year, with 150 million consumed on Independence Day alone.

We love hot dogs so much that the U.S. Chamber of Commerce actually dubbed July as National Hot Dog Month over 50 years ago.It was this shared love for hot dogs that inspired What’s Up Dog owner King Lei to open his own hot dog shop. To ensure that he only offered the best, he visited hundreds of hot dog stores from Los Angeles to New York. And his research resulted in rave reviews. “People love our name and products,” remarks King.This response has led What’s Up Dog to Francorp, the world’s leader in franchise consulting, to assist them in the development of their franchise program.

For more information about What’s Up Dog, call (415) 864-3707
or visit www.whatsupdogs.com

###

L. Patrick Callaway - President of Francorp, Inc.

People often ask me about franchise brokers. On the surface, the idea of a franchise broker seems simple enough. Brokers put buyers and sellers together so whether a buyer or a seller, brokers would seem to be a very important component in the equation.The fact is, brokers get paid to put buyers and sellers together. After all, they need to get paid too.

Thus, by the pure nature of that relationship, they typically have a biased opinion. Odds are, they are representing a party that pays them upon procurement of a sale. So, let us look at this from both perspectives, the franchisor and prospective franchisee.

For you franchisors or perspective franchisors - Brokers fill a void as a nice additional franchise sales outlet, but do not make the mistake in thinking that brokers are going to be your only source of sales for your franchise company.We have found that companies that sell their own franchises have the greatest success in the long run. The reason for this is that a company selling their own franchises has to live with them for the term of the contract. This causes in house sales teams to have more stringent criteria placed on them. Thus, my advice is to first deploy an in-house sales initiative. In order to be successful with an in-house sales force, they will need to deploy a marketing program in order to generate leads for those sales people to follow up with. This strategy needs to address the following marketing opportunities:

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

Francorp believes that this multi-pronged approach is the best way to address franchise sales and marketing. As a secondary plan, brokers can add additional prospects to the equation. Though, be weary of deploying a marketing program and sending all of your leads to outside brokers.I would not recommend that strategy. Your leads are then likely to be distributed among that brokers other franchisor clients in the event that they have a qualified franchisee prospect that is not interested in your particular business off hand.

My advice would be to only use brokers that generate their own leads. In addition, be careful not to enter into an exclusive broker arrangement.For those of you that are prospective franchisees, be weary of brokers steering you to a particular business in which they are obtaining a commission. Not all franchise companies pay commissions. What happens if you work with a broker and they do not show you a particular franchise that you are interested in learning more about? GO DIRECTLY TO THAT COMPANY. There are many brokers that are great people and and help people find their dream business. Though, brokers are not for everyone. I am not aware of any large national brokerage networks that are paid directly by the buyer. All of the brokers that I have met are paid by the actual franchise companies upon the sale of a franchise. In a perfect world, you perspective buyers should work with a broker for a fee that you pay so that your interests are being represented, not those of a hand full of franchisors.Now you sellers and prospective buyers are in a better informed position to be able to find the right opportunities that are out there for you all. You heard it here from Francorp, the franchising leader.

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

Francorp Regional Director - Peter Yang

PRESS RELEASE


FOR IMMEDIATE RELEASE FOR INFORMATION CONTACT:
Francorp
(714-293-7124)

Francorp Welcomes New Regional Director


(Diamond Bar, CA) - Francorp is proud to announce that Peter Yang has joined the Regional Directors Program.

Peter has had extensive experience in sales in business development, most notably with First Data, a giant in the credit card processing industry. He has been successful in acquiring sales both with large corporations as well as small businesses through a variety of sales methods including: telemarketing, business to business, cold calling, referrals, and networking. Peter also has a BS in Organizational Leadership from Biola University in La Mirada, CA with a special emphasis on Business Ethics. He currently resides in Diamond Bar, CA.

Francorp is acknowledged as the world's leader in franchising. Since 1976 Francorp has provided full development programs to help insure the franchise success of over 2,000 businesses. To continue helping businesses expand, Francorp has established a Regional Directors Program. This program allows representatives throughout the country to provide the necessary resources to new business interested in franchising. For more information, visit www.francorp.com or call 714-293-7124.


# # #

Francorp Client - Soul De Cuba Cafe

The Soul of Crown Street
Nicole D'Andrea, Senior Writer
08/06/2008
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If you go... Soul de Cuba 283 Crown St., New Haven; 203-498-cuba; souldecuba.com What makes a city a city isn't something you can exactly put your finger on but when you feel it, you know it.
That's sort of the best way to explain the vibe of Soul de Cuba, tucked away on the corner of Crown and High streets.
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Just 40 seats for dining and only a handful of stools at the bar, Soul de Cuba embodies everything that is the lifeblood of New Haven. Think diversity in culture, historically accurate native cuisine and of course, authenticity of ownership.
Birthed by New Haven staple Yoon Kim, son of Sung Kim who has operated Seoul Restaurant on Crown Street for many years and brothers Jesus and Robert Puerto, Soul de Cuba has solidified itself as a New Haven necessity since its doors opened in January 2005.
Shortly after opening the first location- about one year- Jesus revisited his past, traveling to the South Pacific where he used to do work for the Peace Corps and launched a second Soul de Cuba in Honolulu, Hawaii across the street from the Hawaii Theater.
Hailing from an international relations background, Jesus shares that he and his partners are now finalizing the details for a global franchise expansion of Soul de Cuba which coincides with the debut of the restaurant's new line of homemade mango salsa, honey balsamic vinaigrette dressing and mojo marinade which are sold in store and are coming soon to participating supermarket shelves.
Phoning in from Hawaii- he gets to run this location while little brother Robert mans the New Haven locale- Jesus explains, right now he's at a crossroads with his business and he's hoping to figure out what is the best way to replicate the Soul de Cuba concept on a national level and become one of, if not, the first chain of Cuban eateries.
But before this Afro-Cuban enclave takes the world by storm, it's important to consider where it came from and who the Puertos are.
Though Jesus has a lengthy background serving in the international relations field- he came to New Haven through Paul Newman's Association of Hole In The Wall Camps to serve Thailand, Southern Africa and Japan- his family's past is deep rooted in Cuban cuisine.
Coming to the Tampa area of Florida, at the turn of 19th century, Jesus' great grandfather Santiago Gonzalez settled in Ybor City, which is the oldest Cuban-American community in the U.S.
The Puerto's family established themselves in Ybor and became well-known bakers. Even today, Robert says, they have a cousin who has taken up the baking trade in Ybor.
Generations of Afro-Cubans from the Puerto lineage have contributed to the flavor and style of Sol de Cuba and when speaking of franchising in terms of a restaurant "concept" it's sort of impossible to do so because the mantra of the restaurant is anything but trendy, stylish or en vogue. There's no "concept" per-se because it's real, right down to the family photos, which adorn the walls and even the cigar box tops that decoupage the bar top- yes, the Puerto family was also cigar rollers in Ybor City.
By way of food, diners can delight in the traditional marinated pork, a famous Cuban dish called lechon asado where the meat is marinated 24 hours in mojo- a creamy blend of citrus, oregano and garlic- before cooking.
But also on the menu, there are dishes that aim to highlight the unique Afro-Cuban heritage that the brothers share. Jesus explains that in addition to meals bearing the namesake of their past, it's the paintings of Afro-Cuban spirituality and respect for family that really puts the soul in Soul de Cuba.
Rabo encendido, traditional oxtail stew shares a place on the menu with Abuela's sopa de frijoles negros and less conventional dishes like Robert's pollo Soul de Cuba.
Cooking for almost half his life, Robert has taken the reins of the business from behind the stove and says he continues to try to represent the Cuban and Afro-Cuban cultures with his food while also taking into consideration the importance of creating new dishes with more contemporary ideals.
Before the rest of the world has the opportunity to delight in the wondrous multi-sensory experience of Sol de Cuba, which wakes your mind and taste buds simultaneously, take advantage of dining in the New Haven location where it all started (283 Crown St., New Haven; 203-498-cuba).
The Spread: Lunch entrees $11-$16, sandwiches $7-$9, appetizers $7-12, dinner entrees $12-$21.Signature: Soul de Cuba offers jars of homemade mango salsa and bottles of honey balsamic vinaigrette dressing and mojo marinade for sale in store, and soon on participating supermarket shelves. Also, make sure to order the Puerto family recipe sangria or a classic Cuban mojito.
Beyond the food: Monthly, you can come enjoy drum nights at as the restaurant is turned from a dining space to a dancing frenzy. Check souldecuba.com for dates.What we ate: Pollo Soul de Cuba, $18 (Marinated chicken breasts (overnight) pan fried and served with Chef Robert's special salsa of mango, black beans, red onion and rum, served over arroz blanco and plantanos maduros.
What we thought: Soul de Cuba is the epitome authentic and represents the best of New Haven's multicultural cuisine. If you're interested in having some imported wines or Cuban influenced drinks, this is one the city's most romantic spots to do so. If you're dining, Soul de Cuba is known for making traditional Afro-Cuban food with a contemporary twist- evidence of its success is the sweet and hearty Pollo Soul de Cuba.

www.francorp.com

www.francorpconnect.com

Don Boroian - How to Buy and Manage a Franchise

The American Dream with a Safety Net:
An Introduction to Franchising
Fred DeLuca needed cash. At seventeen, he was ready for college, but unless he raised some
money fast, he knew he couldn’t cover his first-year expenses at Connecticut’s University of
Bridgeport. As it would turn out, DeLuca’s solution for financing his college education would
lead to one of the biggest franchising success stories of the late eighties and early nineties. But
back in 1965, all he wanted was a financial fix.
DeLuca approached a wealthy family friend for the money. He recalls hoping that Peter
Buck, a nuclear physicist, would “reach into his pocket and pull out a big stack of hundred-dollar
bills.” Instead, Buck offered something more valuable – a business proposition. Instead of a gift
or loan, he would give the youngster $1,000 to open a submarine sandwich shop. And so Pete’s
Submarines of Bridgeport was born.
After a slow start (and a name change), the partners added fifteen more sandwich shops
in the following eight years. The chain had potential for further growth, but the traditional
method of building and operating company-owned stores was proving to be slow and costly.
The choice of an alternative wasn’t hard to make. McDonald’s and Kentucky Fried Chicken,
among others, had set an excellent example by franchising, and it was in that direction that
DeLuca turned to expand his business.
More than twenty-five years after it was started as a collegiate money-making venture,
this submarine sandwich idea has truly paid off. DeLuca and Buck’s business has become the
pacesetter among sandwich chains, setting a growth standard believed to be untouched by even
mega outlet food giants such as McDonald’s or Domino’s Pizza. In a single year – 1988 –
Subway, as the franchise is now called, opened more than one thousand outlets, a feat never
previously accomplished by a single chain.
Of course, opening a sandwich shop isn’t a rocket-scientist type of proposition. All one
needs is money (which, as has been demonstrated, can be someone else’s) and desire. Even
making that shop a success isn’t a superhuman task. Combine hard work, a good product, and a
reasonably decent location, and you can be the local roast beef and salami king. But to establish
and successfully duplicate such a store a few thousand times across the country and around the
world takes more than a profitable outlet (or even a few such outlets). It takes one of two things:
(1) Nearly unlimited capital (quite literally in the billions of dollars) to finance such growth; or
(2) the proven, synergistic power of franchising.
Chapter One
Compliments of Francorp Connect, Inc. 7 www.francorpconnect.com
So if you happen to have a couple of billion dollars lying around in a family trust, or a
friendly banker whose loan checks come preprinted with nine zeros, then what follows will
likely not be of much interest to you. But if you have a desire to become part of – or simply
learn more about – franchising, the successful and growing form of business the U.S.
Department of Commerce has called “the wave of the future”, this book is the source you’ve
been looking for.
As franchising has grown in prominence and performance, it has attracted wide coverage in the
media – some positive, some negative; some aimed at potential franchisees, some at franchisors;
some purely analytical, some philosophical and esoteric. But what was missing was a
comprehensive, easy to read (and perhaps fun to read) book that tied it all together – a book that
combined practical and useful information for both franchisees and franchisors with unbiased
reporting and interpretation of the development and influence of franchising. The challenge,
then, is to fill this information gap.
This book sets out to be the only book anyone (be they franchisees, franchisors, or even
just curious consumers) needs to read about franchising. And that’s not just a boast or some
lofty goal – it is our personal mission as authors.
Perhaps it sounds too simple: anyone with any interest in franchising. But it’s true. This book
was written with the widest possible variety of readers in mind. Whether you are interested in
purchasing a franchise (that is, becoming a franchisee), developing an existing business into a
franchise (becoming a franchisor), or simply learning more about the form of business
responsible for more than one-third of all retail sales in the United States, this book will inform,
educate, and perhaps even amaze you.
Do you dream of becoming your own boss but are wary of striking out on your own?
We’ll help you assess whether you’re ready (financially and emotionally) to become a
franchisee. Are you ready to buy a franchise, but not sure which one to choose? We’ll give you
some valuable advice to help narrow which franchises are best suited to you.
Perhaps you own a small (or even not so small) business and are considering expansion.
We’ll help you answer two questions of paramount importance when it comes to considering a
franchise program: (1) Is your business franchisable? and, (2) if so, what is the best way to go
about it? The fact is times have never been better to consider expansion through franchising, for
anyone who owns or operates a successful business. There is definitely an audience of qualified
potential franchisees available. Big corporations, including many Fortune 500 companies, are
stripping away layers of middle managers with layoffs and early retirements. Add to this pool of
Why This Book?
Who Should Read This Book?
Compliments of Francorp Connect, Inc. 8 www.francorpconnect.com
talent the growing number of executives whose jobs have been “leveraged” out of existence (due
to buy outs, mergers, and other corporate reshufflings), and you have an experienced and
professional class of people ready for a new challenge. For many of these people – and others
ready for a change – franchising is the best choice.
Joe’s brother, John Mancuso, is a good example of a new breed of franchisee. He owned
and operated a small machine shop in Hartford, Connecticut, for the past half dozen years. He
also was a customer of the local Physicians Weight Loss Center in Hartford, and trimmed down
from a hefty 270 pounds to close to 210 pounds. He was thrilled with his weight loss -- so much
so that he sold his machine shop and used the proceeds to acquire the franchise location where he
had lost weight. Rather than start a new business in an area that interested him (but in which he
had no practical experience), he bought the franchise and the national reputation and source of
knowledge that went with it – a franchise that he knew was effective, because it helped him lose
weight.
John had never anticipated being involved with franchising, but at the age of forty, he too
came to marvel at the power of the concept. (But, as you’ll learn later in this book, John lost
more than just weight. That was another motivation to write this book.)
Franchising is a broad term that described a relationship between two or more parties. In
general, the purpose of this relationship is to distribute goods and/or services. The two primary
types of franchise systems in the United States are product or tradename franchising and
business-format franchising. Product or tradename franchising is franchising in its most limited
form: A manufacturer grants another party a license to sell goods produced by the manufacturer.
Principal examples of this form of franchising include sales of cars through dealerships, gasoline
through service station, and soft drinks through local bottlers.
For the purposes of this book, we will almost always be discussing the other type –
business-format franchising. We will refer to it by the simpler term franchising. Under
business-format franchising, a business owner or manager (the franchisor) allows someone to
market products or services using her name, trademark, and most importantly, her prescribed
business format – thus the name business-format franchising. (Frequently – in fact, usually – the
products sold are not provided by the franchisor.) In return for use of the name and system, the
franchisee – as that person or organization is called – pays a fee and, usually, an ongoing royalty
(in the form of a percentage of sales). Moreover, the franchisee pays all the costs of going into
business. The effect of business-format franchising is to make it less a system of distribution
than a system of proliferation or expansion.

Franchise Demand

Creativity, flexibility carry franchises through tough times
National Restaurant Association SmartBrief 08/15/2008
Despite a sour economy, companies are finding ways to make their franchises grow, taking advantage of lower real estate prices and changing the way they market themselves. Even franchisors in industries that have stayed in demand, such as education and cruises, are coming up with new ideas for growth. Entrepreneur.com (08/13)

Americans Squeeze Wallets

Americans squeeze wallets to afford food, energy increases
NFIB SmartBrief 08/15/2008
Americans have lowered their standard of living to pay the inflated costs of food and energy, according to this analysis. July's consumer price index rose faster than anticipated, setting a 17-year record with prices 5.6% higher than the same month last year. Energy prices rose 29.3% and food prices increased 6%. MSNBC (08/14)

Pizza Delivery In China

Pizza Delivery Gets Big Push In China

Restaurant giant Yum Brands Inc. is betting that, as China's expanding middle class continues to demand more of the typical Western middle-class lifestyle, consumers will develop a taste for one of America's favorite convenience foods -- pizza, delivered.

Pizza delivery, ubiquitous in the U.S., is a new concept in China, where dining out has long been seen as a form of conspicuous consumption. As a result, until recently Yum had focused on positioning its Pizza Hut locations as a "five-star experience, (with a) three-star price" that would attract Chinese consumers looking for a night on the town. But as China's wealth swells -- along with its legions of harried office workers who have less and less time to cook at home -- pizza delivery is beginning to look like a faster way to expand the Pizza Hut brand, and consumers have begun to respond.

During the past year, Yum has been ramping up delivery operations in the country -- building call centers, securing a nationwide telephone number and building out new locations at an expeditious rate.

"We think we could build thousands of these," said Yum Chief Financial Officer Rick Carucci. The company has 61 delivery-only locations, up 49% from a year ago, and plans to continue at that rate for the next year.

The reason for their appeal to Yum is simple economics: Delivery-only locations, unlike fine-dining establishments, don't have to occupy prime (read expensive) real estate and can still pull in 60% to 70% of the revenue of fine-dining locations, and they are already making money. Yum's China division aw its operating profit jump 38% in the second quarter, and Pizza Hut was the division's fastest-growing brand.

To be sure, Yum faces risks in its expansion. Domino's Pizza, the dominant delivery-only brand in the U.S., has been slow to move into the Chinese market, noting the lack of a convenience culture that would demand food delivery. But that is changing: Domino's has built central delivery commissaries in Shanghai and Beijing -- a sign they will build out in the near future.

"I think for a couple of years they were skeptical that there was going to be a delivery business there," Bank of America analyst Joseph Buckley said. "Now they think there is; it could be because of what Pizza Hut is doing."

Yum, whose China group's slogan is "Rooted in China, Part of China," says it is just following the market.

When lawyer Zhan Zhao moved to Beijing in 2002, after spending his teenage years and getting his education in the U.S., he was shocked to find no food-delivery service was available.

"I was a lawyer working long hours and new to China, so a service of convenience was something that I really needed to help adjust to the other realities of modern-day China," said Mr. Zhao, 32 years old, an associate at Skadden, Arps, Slate, Meagher & Flom LLP. To fill the gap, he started a delivery service, Beijing Goodies, to deliver food, at an additional price, from Beijing restaurants. After a rocky start in May 2002, the business has taken off in recent years. Today, the company has 7,000 registered users in Beijing -- and Mr. Zhao, who now lives in Shanghai, sees food delivery as a growth market.

"Food delivery will only become more and more popular, especially for the local white collars, as the Chinese consuming public continues to work longer and longer hours," Mr. Zhao said.

Yum's recent television advertising campaign in China makes a similar case. One ad, for example, shows a young mother rushing from work to the market, cooking dinner and doing dishes, contrasted with a serene woman stretching and enjoying her afternoon. The serene woman has already ordered pizza, and a moped-mounted delivery man is on the way with it.

Papa John's, which recently opened its 100th restaurant in China, has been noticing a pickup in delivery orders, too, according to David Flanery, the company's chief financial officer and head of its international operations.

"The delivery percentage has probably doubled over the past two to three years," Mr. Flanery said. "You go through those cities and see apartment building after apartment building and you go, 'you know, those people have to eat, and more of them have enough money to go to a restaurant and have something delivered.'"

Mr. Flanery said Papa John's is more than happy to follow Yum's lead in the country, where Yum already has a massive head start. Yum was the first Western fast-food company to gain entrance to China in the 1980s, and its KFC chain is one of the most recognized Western brands in the country, with 2,264 locations as of June 30.

Mr. Carucci said he expects Yum to ramp up the building of Pizza Hut delivery locations during the next year or so, moving into more second-tier cities, with the eventual goal of China being a bigger market than the U.S.

"We're off to the races on delivery," Mr. Carucci said.

Source: Dow Jones Newswire

www.francorpconnect.com

Caribou Names New President

Caribou Coffee Co. Inc. has named Michael Tattersfield as its new president and CEO, the company announced Monday.
Tatterfield has 20 years of finance, operations and general management experience in the restaurant and specialty retail industries, both domestically and internationally. He most recently served as chief operating officer and executive vice president of Lululemon Athletica Inc., a yoga-inspired athletic-apparel company based in Vancouver, British Columbia. He also previous worked for Limited Brands and Yum! Brands.
“Michael Tattersfield’s industry experience in shaping and executing brand strategies will be an added benefit to Caribou Coffee in addition to his financial and operational expertise,” Brooklyn Center-based Caribou (NYSE: CBOU) Chairman Gary Graves said in a statement. “Caribou Coffee is focused on strategic growth, domestically and internationally, and Mike will guide Caribou Coffee through continued growth and expansion opportunities.”
Tattersfield replaces Roz Mallet, who has served as interim CEO since former chief executive Michael Coles left the company in November 2007.
jvomhof@bizjournals.com (612) 288-2101

Francorp Client - LuluLemon Athletica

Lululemon's Next Workout
Can Christine Day broaden the yoga clothier's appeal?
by Aili McConnon
BW Magazine

Incoming Lululemon CEO Day and co-workers Chris Buck
Lots of chief executives talk about keeping an ear to the ground. Few do it. Even fewer do it literally. But on a recent Sunday in Vancouver, B.C., Christine Day, the incoming CEO of yoga apparel retailer Lululemon Athletica, was on her hands and knees in a fitting room hemming pants. That's standard operating procedure at Lululemon. Every worker, from the C-suite to the accountants to the design team, must spend at least eight hours a month working in stores—an unusual mandate for a retailer. It's a way to keep close to the company's carefully cultivated and well-heeled clientele: the burgeoning Yoga Class.
Serving that niche with a laser-like focus has paid off for the Vancouver retailer. In 2007, sales rose 85%, to $275 million; profits leapt 300%, to $31 million; and the company raised $344 million in an initial public offering. Lululemon fans shell out $92 for a pair of workout pants, compared with $60 at Nike (NKE) or $70 at Under Armour (UA), according to research firm ThinkEquity Partners. No wonder, then, that at most of its 86 warehouse-chic stores, Lululemon sells $1,710 worth of gear per square foot—about triple the rate of red-hot retailers Abercrombie & Fitch (AWF) and J. Crew (JCG). "It's the best growth story in retail today," says Paul Lejuez, a senior analyst at Credit Suisse (CS).
As Day takes over—her official start is June 4—Lululemon is at a precarious point. It plans to increase its U.S. store count from 38 to 69 this year, with a goal of 300 over the next few years. But inventory problems have crimped margins, since the company had to pay extra to ship out-of-stock items to stores by air. Amid worries over cash-strapped U.S. consumers, the stock price, which rocketed to 60 after going public at 18, has fallen back to 31. How Day manages the rapid growth will determine whether Lululemon fades away, like so many once-hip retailers, or becomes a lasting franchise.
Day most recently ran Asia-Pacific operations at Starbucks, which serves as both a growth template and a cautionary tale for Lululemon. "At Starbucks, we moved too quickly away from the authentic Italian espresso," she says. CEO Howard Schultz hired her in 1986 as his assistant. She took care of everything from bookkeeping to human resources and quickly moved up the management ranks. In his memoir, Schultz credits Day for her early insight that the coffee chain's stores should be designed as "sisters—each with an individual appearance, but clearly from the same family." In her most recent post, as head of Asia, Day oversaw a side of Starbucks' business that is still growing furiously even as U.S. stores slump.
Lululemon has been quietly growing since 1998, when it was founded by Dennis "Chip" Wilson, a Canadian entrepreneur who had previously founded a surf, skate, and snowboard company. After attending a yoga class, he found the cotton-polyester blends most people wore to the studio were uncomfortable and ill-fitting, and they collected sweat. He created a black exercise pant for women made of fabric that would wick away perspiration and fit well, too. In 2000, Wilson, still the company's design chief, opened a small design and retail space in Vancouver that doubled as a yoga studio. He created clothing during the day and tweaked it based on feedback from students who took yoga classes in the same space at night.
Linking with local gurus has been crucial. Before Lululemon opens a store in a new city, it approaches yogis or other fitness class teachers. In exchange for a year's worth of clothing, they become Lululemon "ambassadors," wearing the duds in front of students and giving the company design feedback. They also host students at private sales and free classes sponsored by Lululemon in unmarked lofts or condo spaces.
Now the pressure's on Day to expand Lululemon beyond yoga into sports such as running, swimming, and biking. Outgoing CEO Robert Meers, who previously led Reebok International, put together a management team of retail vets from the likes of Nike, The Limited (LTD), and Abercrombie (RL). Day, though, has been visiting stores and picking up tips from workers on the line. At regular breakfast meetings, she's fond of asking employees: "What's the most idiotic thing we did in the last 60 days?"
SIDESWIPED BY SEAWEED
Early on, Lululemon dodged a bullet. In November, The New York Times reported the company made false claims about a line of clothing infused with seaweed that purported to moisturize skin during exercise. Lululemon says third-party tests confirmed its garments contained a seaweed derivative, but it removed the claims from labels.
A more pressing challenge is inventory. Analysts say stores in coastal areas often run short of small sizes and those in the Midwest sell out of larger sizes. Day says the company has rolled out a new inventory-management system and will spend up to $1 million on a direct-sales Web site. Day is quite aware that, in a recession that's punishing other retailers, she'll have a brief window in which to fix the glitches. "You can't be complacent about blaming the economy," she says, "when it's probably some operating...issue you're trying to get right."
To watch a video interview with incoming Lululemon CEO Christine Day, go to businessweek.com/go/tv/lululemon.
Back to the Hot Growth Table of Contents
McConnon is a staff editor for BusinessWeek in New York.

Francorp Client - Boston Pizza

Francorp worked with Boston Pizza to structure their US franchise operations and grow the concept into the US market. The company and brand continue to make strides and become a powerful player in the franchise market both in the U.S. and Canada.

The Boston Pizza concept began in Edmonton, Alberta in 1964 when Greek immigrant Gus Agioritis opened “Boston Pizza and Spaghetti House”. Although he lacked any significant restaurant experiences, Agioritis achieved success by combining hard work with a business strategy that included a focus on growth through franchising. This strategy established the early success of the Boston Pizza chain, and by 1970 Boston Pizza had 17 locations throughout Western Canada, of which 15 were franchised.

One of the first franchisees attracted to the Boston Pizza concept was an RCMP officer named Jim Treliving. Treliving noticed the growing popularity of Boston Pizza and in 1968 opened his first franchise restaurant in Penticton, British Columbia. In Penticton, Treliving met George Melville, a chartered accountant and then manager of the local Peat Marwick office. Melville acted as Treliving’s business consultant for four years before becoming his partner in the business in 1973. Over the next 10 years the two men built a chain of 16 restaurants throughout B.C., giving them the hands on experience that would prove invaluable in their future position as the franchisor of the Boston Pizza concept.In 1983, Treliving and Melville acquired the chain of 44 Boston Pizza restaurants from then owner Ron Coyle, who had bought the company from Agioritis in 1978. The pair immediately divested 15 of their restaurants to individual franchisees, converted one restaurant to a corporate training restaurant and set about establishing systems and operating standards designed to enhance the already successful franchise system. In 1986 Boston Pizza made a corporate commitment to be the official pizza supplier for Expo 86 in Vancouver, B.C. The exposure that Boston Pizza received through the course of the world’s fair created significant interest in the franchise opportunity, leading to 17 new franchises in 1987 and 1988.By 1995, Boston Pizza had grown to 97 restaurants in Western Canada, with total system sales in excess of $110 million. Over the years the concept had evolved into a full service restaurant, the sports bars had been established as an integral part of the business, and the menu had been expanded to include a variety of appetizers, entrées, salads and desserts. On the corporate side the organization was preparing for future growth and evolution by adding core management resources to the corporate management team.

In order to ensure the success of its eastern expansion, BPI made significant commitment of finances and personnel in Eastern Canada. In 1997, BPI opened a regional office in Mississauga, Ontario and Jim Treliving moved to Toronto to oversee the operations, hiring senior experienced foodservice management and transferring a senior operations person from Vancouver. The organization signed its first development agreement for the city of Ottawa in that same year and opened the first restaurant in September 1998. As the company continued to grow in eastern Canada, Boston Pizza opened a regional office in Laval, Quebec in April 2004. Today there are over 90 Boston Pizza restaurants in Eastern Canada, including 18 in the Maritimes, and BPI has signed agreements and/or collected deposits for another 75 restaurants. At the same time, development continues in Western Canada, as strength of the brand provides new opportunities for growth.It took 12 years for the Boston Pizza chain to grow from $25 million in annual system sales to $100 million in 1995. Five years later the chain had reached $200 million in annual system sales and in 2005 it surpassed $500 million in annual system sales. Growth has been accelerating, and Management believes that the necessary conditions exist to continue the level of growth achieved over recent years as the strength of the Boston Pizza brand continues to grow.

In 2006 Boston Pizza reported sales in excess of $647 million.Jim & GeorgeAfter 32 years in the business, partners Jim Treliving and George Melville still love the business they are in. Though they have sold off all but five of their restaurants to devote all of their attention to managing the corporate operations, their attitude remains the same as the day they entered the restaurant industry. "Think like a customer, deliver outstanding food value and work closely with your partners."www.francorp.com

Francorp Client - Knowfat! Lifestyle Grille

Francorp has worked with Knowfat! Grille in their franchise development. The company is poised to go to the next level in their market, here are some of the reasons why:

Why Knowfat Grille?

Americans want their fast food, as they will always be on the run in today’s fast paced world. But how can they get their food on the run and still live a healthy lifestyle? The answer is the KnowFat! Lifestyle Grille.64% of food/beverage industry executives believe that the “better for you food” category has the greatest growth potential.43% of fast food customers rate the “availability of healthy/nutritious food” as extremely important.U.S. Department of Health & Human Services has declared that obesity will surpass smoking as the #1 cause of preventable death in America.64% of adults consider themselves healthy eaters; 50% say they follow some form of health-conscious diet.What makes this concept really work is the symbiotic relationship between the restaurant and the supplement side.

The contribution of nutrition center retail sales to the total volume of a KnowFat! unit allows KnowFat! to far outpace typical quick-serve restaurant volumes.http://www.knowfat.com/video.php

Coffee, Tea or Red Espresso?

Coffee, Tea, or Red Espresso?
Red espresso is a tea designed to be ground and brewed in coffeemakers. As coffee, it underwhelms. But as a tea—regular or iced—it's a hit
by David Kiley
Lifestyle
SUVs and Trucks Plunge in Trade-In Value
The Mini Cooper Clubman: Fast, Fun, and Hard-to-Find
Coffee, Tea, or Red Espresso?
Sleep Needs Decline With Age
Luxury Leaders: Montblanc's Jan-Patrick Schmitz
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When I tried red espresso, a relatively new product from South Africa, I was put in mind of a bit that comedian Lewis Black does on candy corn: "It's corn that tastes like candy…candy that looks like corn."
Red espresso, which is sold at Whole Foods (WFMI) and similar stores, is Rooibos tea, which is made from a member of the legume family and grown only in South Africa. It is noncaffeinated, full of antioxidants, and ground to brew in coffeemakers, especially espresso pots and makers. What it isn't…is espresso.
The advertising line that accompanies red espresso is, "the café revolution: who would have thought a tea could play by coffee's rules." And yet, I pay homage to Lewis Black: It's tea that looks like espresso; espresso that's made from tea.
Taste Test
It doesn't taste like espresso. I brewed it, as instructed, in a stove-top espresso pot. It was dark, rich, and strong, and had a crema on top. I poured it into an espresso cup, took a deep breath, and…. Well, nah.
Okay, let's be fair. This is good tea—quite good, in fact. What it isn't, as I said, is espresso. It is to espresso what, say, Postum is, or was, to coffee. Postum, conjured up in the late 19th century by Post as a noncaffeine replacement for coffee and adopted during wartime food shortages, was recently discontinued by Kraft (KFT).
Now, I'd like to step back a second. One's taste in food and drink is highly subjective. I like cabernet sauvignon. But merlot? Also, I prefer microbrews to Budweiser or Miller. Who, I asked myself, might like red espresso? If you are a tea drinker, and you do not drink coffee because you don't care for the taste, red espresso may appeal to you. I drink a lot of tea and a considerable amount of espresso. I have no objection to coffee or caffeine. Indeed, I'd go so far as to say I need a cup of coffee a day. So, for me, red espresso brewed to take the place of espresso joins that list of stuff that doesn't hit my taste buds well, such as Postum, lite mayonnaise, Diet Coke, NutraSweet, Lactaid Milk, nonalcoholic beer, and "yogurt" made from tofu.
Distaff Vote
My wife tried it, too. She drinks espresso and does not like tea unless it's iced. As iced tea, she liked red espresso fine. But she raised a question I was silently thinking: Why wouldn't people who don't drink coffee, and prefer tea, simply have a cup of tea brewed the conventional way?
Oddly, red espresso earned Best New Product in the specialty beverage category at the Coffee Association of America's Conference & Exhibition last May. That's a little like New York Giants quarterback Eli Manning getting voted Most Valuable Player by Major League Baseball.
One reason tea drinkers might like red espresso—an idea mentioned to me by the company and spelled out on a PowerPoint presentation somewhere, I presume—is that red espresso enables tea drinkers to partake more of the café culture. Call me crazy, but I don't think tea drinkers at Starbuck's (SBUX) sitting with coffee drinkers are experiencing an inferiority complex. Do they feel they need to sit at another table from their friends?
Not So Addictive
The Web site, www.redespresso.com, says that inventor Carl Pretorius was moved to develop the brew when he became "addicted" to six shots of espresso a day. Oprah Winfrey's O Magazine wrote that it was a hit with the magazine's staff. The price of red espresso is $12.99 for an 8.8 ounce pouch, or $25.99 for a 2.2 lb. package.
But let's take another step back and examine red espresso for what it is: good tea. I took the leftover tea in the espresso pot and made iced tea. It was terrific. I then mixed it with ice and water and tossed in an ounce of apple juice. Also very nice. In another glass, I added muddled mint leaves to both the iced tea and the apple tea. Superb. Now we're on to something, I thought.
Red espresso is now on my shelf with the dozen or so boxes of tea I keep (along with glass jars of tea botanicals from my own garden). One of the tins on my shelf is, in fact, Rooibos tea, much like red espresso. Pretorius' whole point, it seems to me, is to get the product off the crowded tea shelf and make me think of it as an alternative to just one other product in my pantry—espresso coffee.
That's not happening. For the remainder of the summer, though, when I have guests, I'll ask if anyone wants to try red espresso. That is, unless I blow through the two big pouches the company sent me making pitchers of delicious iced tea first.
Kiley is a senior correspondent in BusinessWeek's Detroit bureau.

Harvard Business Review - Ideas for a difficult Economy

Let’s Hear It for B Players
Key ideas from the Harvard Business Review article by Thomas J. DeLong and Vineeta Vijayaraghavan
The Idea
Who’s most critical to your company’s success, especially during a weak economy? Who supplies the stability, knowledge, and long-term view your firm needs to survive? B players—competent, steady performers far from the limelight.
These supporting actors of the corporate world determine your company’s future performance far more than A players—volatile stars who may score the biggest revenues or clients, but who’re also the most likely to commit missteps. B players, by contrast, prize stability in their work and home lives. They seldom strive for advancement or attention—caring more about their companies’ well-being. Infrequent job changers, they accumulate deep knowledge about company processes and history. They thus provide ballast during transitions, steadily boosting organizational resilience and performance.
Yet many executives ignore B players, beguiled by stars’ brilliance. The danger? If neglected, these dependable contributors may leave, taking the firm’s backbone with them. How to keep your B players? Recognize their value—and nurture them.
The Idea in Practice
The Best B Players
Your most valuable B players are:
• Former A players. These highly skilled, focused professionals often jump off the fast track to balance work and family. They continue accomplishing A work—but on their own terms. Seasoned and sharp, they step up during crises.
• Truth tellers. Zealously honest in interactions with superiors, they pose challenging questions. Colleagues, recognizing their lack of ambition, highly value their opinions.
• Go-to managers. These power brokers compensate for second-rate functional skills with profound understanding of company processes and norms. They amass such extensive networks that everyone consults them when pushing initiatives through politically challenging terrain.
Corporate Backbone
During turbulent times especially, B players provide stability by:
• Accumulating organizational memory. B players remember how their company survived earlier crises—providing indispensable perspective during tough times.
• Adapting to inevitable change. Less threatened by restructuring, B performers adapt to change and have the credibility to dispense vital information. They mentor younger people through the trauma of change, cultivating a reassuring sense of emotional and psychological safety.
• Staying focused during management shakeups. Unlikely to be promoted or fired when a new CEO arrives, B players are usually the most secure people in any company. They ignore political infighting and get back to business, quietly completing projects while A players prepare to jockey for new positions.
Nurturing B Players
To keep your B players motivated:
• Accept differences. We’re all tougher on people who differ from us. If you’re an A player, avoid the temptation to undervalue B performers. Ask what they want from their careers, then match them with mentors who’ll help them get it.
• Give the gift of time. Track your communication patterns to ensure you’re not ignoring—and thus alienating—solid performers.
• Hand out the prizes. Since B players are promoted relatively infrequently, reward them in others ways. Even handwritten notes of appreciation can make them feel valued and motivated.
• Give choices. Rather than grooming only stars, allocate scarce resources—compensation, coaching, promotions—to high-potential B players. Promoting sideways can provide appealing career alternatives.
This HBR in Brief presents key ideas from a full-length Harvard Business Review article.

Don Boroian - Jimmy John's

Don Boroian ran into Jimmy John's in the early 1990's on the campus of Eastern Illinois. He worked with the sandwich operator to create what now is a franchise chain with almost 2000 franchisees across the United States. Here is an overview of Francorp Client Jimmy John's fantastic success.

Jimmy John's is franchised sandwich restaurant owned by Jimmy John Liautaud. The restaurant was founded in 1983 and has since grown to nearly 682 stores, with many locations in college towns. Their headquarters is located in Champaign, Illinois.
It is not to be confused with Jimmy John's Pipin Hot Sandwiches in West Chester, Pennsylvania, which specializes in hot dogs and is known for its assortment of electric trains.[1]
Contents
History
After founder Jimmy John Liautaud graduated second-to-last from Elgin Academy in 1982 high school class, his options were joining the Army, college, or starting a business. He chose to start a business.
Inspired by Portillo's, Liautaud's father loaned him $25,000 to start his own hot dog business. If the business was successful, he would own 52% of it and his father would own 48%. If it failed, he would join the Army.
After Liautaud realized it would cost nearly twice as much as the loan to start a hot dog business, he ventured down the sandwich shop route. A nearby neighbor told Liautaud that the secret of a successful sandwich was in the bread. He started baking bread in his mother's kitchen, bought the most expensive meats from Dominick's and had several family members vote on the top four sandwiches he created.
The first Jimmy John's opened in a garage in Charleston, Illinois on January 13, 1983, with used equipment, without a menu or outdoor advertisement, selling the four sandwiches and 25-cent Cokes. After giving samples out around town, his business began to thrive. He especially catered to college students at Eastern Illinois University. After two friends backed out as managers, he ran the store himself for the first few years, working seven days a week from open to close.[2]
In April 1985, he bought out his father's side of the business and became sole owner. He opened his second store in Macomb, Illinois, and, after manager William "Billy" Burns was killed in a car accident, he ran the second store himself for a few months. Liautaud went on to honor Burns by naming the "Billy Club" sandwich after him, which remains a popular menu item.
He would later open several more stores, and he developed a prototype before franchising began in 1993.

Current statistics

States with Jimmy John's Restaurants
Jimmy John's now offers 25 different sandwiches and has over 682 stores in 35 states. Liautaud projects the chain to grow to at least 1,000 shops by 2009. About 95% of the current restaurants are franchise-owned.

Lists of miscellaneous information should be avoided. Please relocate any relevant information into appropriate sections or articles. (September 2007)
Since many Jimmy John's shops are located in college towns, many of the decorations in the shops are designed to appeal to that market, with witty phrases like "the customer is usually right", "your mom wants you to eat at Jimmy John's","We'd love to see you naked but state code requires a shirt and shoes" ,"Free Smells", "bread so French it must be liberated!", which is a campy version of the classic "no smoking" sign, and, for employment opportunities, "Rock stars wanted". Many of these signs are designed to look rustic, with old fashioned text and, in the case of a metal sign, faux rust.[citation needed]
Most Jimmy John's shops feature a large picture of Jimmy himself surrounded by his products.
In 2007 Jimmy John's sponsored NASCAR driver Kenny Wallace in the #2 Richard Childress Racing Chevrolet during the Gateway 250 at Gateway International Raceway. Jimmy John's will be a part-time sponsor on the #66 Rusty Wallace, Inc. Chevrolet driven by Steve Wallace during the 2008 NASCAR Nationwide Series.
Comedian Mitch Hedberg was briefly hired as a spokesman for several radio spots utilizing his unique comedy stylings "Eating deli meat with artificial ingredients is like eating a turkey breast...with implants!"

[edit] References
^ JimmyJohn's at HollyEats.com
^ Jimmy John's Menu
^ Jimmy John's History
^ Jimmy Johns stake sold, Chicago Tribune, January 4, 2007
www.francorp.com

Francorp Client - Saladworks

Saladworks, a chain of fresh tossed-salad franchised restaurants, said it has identified Greater Boston as ideal territory for expansion.
The Pennsylvania chain, which has 96 franchise locations, said it has signed an agreement with a multi-unit developer that is exploring opening Saladworks restaurants in Cambridge and in Boston's Back Bay and Financial District.
“The health-conscious, highly educated people of Boston have indicated that they want healthier food choices, which makes the city a perfect fit for Saladworks,” John Scardapane, chairman and chief executive of the company, said in a statement.(By Chris Reidy, Globe staff)

For More information on this and other Francorp Clients, visit the company site, www.francorp.com and www.francorpconnect.com.

Pizza Inn Celebrates 50 Years

Pizza Inn Celebrates 50th AnniversaryMonday July 7, 6:32 pm ET Pizza Inn Icon 'Jo Jo' Set to Return in 'Moustache Monday' Promotion

THE COLONY, Texas, July 7, 2008 (PRIME NEWSWIRE) -- For fifty years, Pizza Inn (NasdaqCM:PZZI - News) has served its Original Thin crust pizza and sweet ice tea to millions of customers following big games, first dates, break-ups and make-ups as well as swell birthday parties. To commemorate the chain's many contributions to the American experience, Pizza Inn will begin a two-month anniversary celebration beginning in July at participating domestic buffet and delivery-carryout locations.


``During the celebration our goal is to act as if we are ten years old, not 50,'' said Charlie Morrison, President and CEO of Pizza Inn. ``It's all about having fun. Sure, we are going to have discounts and games and special giveaways, but most of all we are going to party like crazy while thanking our customers for letting us play a small part in their lives. Our guests didn't grow up going to Pizza Inn. They grew up with Pizza Inn and for that we are grateful.''
The chain will reintroduce ``Jo Jo'' - its original pizza-tossing, moustache-wearing mascot in a promotion called ``Moustache Mondays'' beginning August. During Moustache Mondays, customers sporting a moustache (or faking one) will be given $1 off any adult buffet purchase or $2 off any medium large or giant pizza purchase (dine-in or carry-out) each Monday in August. Moustache stickers will be provided to those not quite capable of generating a moustache, making it an event for the entire family.
The series of promotions launches this week with a variety of special offers, including a $.50 medium one-topping pizza with the purchase of any large 3-top, Signature or Max pizza at regular price. Customers will also be able to play ``Pizza Bingo,'' where they can win a free large one-topping pizza with a bingo blackout. Some Pizza Inns will also redecorate their stores in a 1950's motif, complete with music, special offers and activities for the kids.
Other activities and events will be announced by the chain during the course of the promotion.
``Stay tuned,'' said Morrison. ``This is going to be a good time.''
Pizza Inn, Inc. (http://www.pizzainn.com) is headquartered in The Colony, Texas, along with its distribution division, Norco Restaurant Services Company. The Company is a franchisor and food and supply distributor to a system of franchised and company owned restaurants operating both domestically and internationally under the trade name ``Pizza Inn.''
The Pizza Inn logo is available at http://www.primenewswire.com/newsroom/prs/?pkgid=4933

Franchising in India

Franchising in India
International Franchise Lawyers Association e.V. (IFLA)
IntroductionThe franchising industry rightly deserves to be called the wave of future businessin India. The phenomenon of franchising developed at the end of Second WorldWar and the system has taken its roots in the United States of America, wherealmost 50% of all retail sales are through franchise outlets. Decades later, Indiahas begun to see the growth of both domestic and international franchisesbalancing the philosophy of the free market with the philosophy of swadeshi(indigenous) products.Franchising encourages spirit of entrepreneurship with its essence lying in anagreement between two independent undertakings, the franchisor and thefranchisee. The consideration is the payment of some fee or royalty to thefranchisor against the rights granted to the franchisee to market the goods andservices of the former with their brand names using the franchisor’s trade marksand business methodology for which the franchisor would also provide the knowhowand technology.
Emergence of the Indian marketOne of the primary factors which control the success of a franchising business inan emerging economy like India is the ability of a foreign franchisor to identifyand seize the appropriate moment when the business environment is favorableand reap its rewards. Home to over a billion people, including a flourishing classof urban consumers possessing considerable amounts of disposable incometogether with the continued growth of the economy have strengthened India’sclaim to be a viable and beneficial destination for a foreign franchisor.India ranks as the fourth largest economy globally in terms of purchasing powerparity (PPP) with GNP of US $ 2.91 Trillion (2001-02). According to a recentreport by UNIDROIT, the foundation of a successful franchising industry in anycountry lies in the existence of a “healthy commercial law environment” whichhas been defined as one with a ‘general legislation on commercial contracts, withan adequate company law, where there are sufficient notions of joint ventures,where intellectual property rights are in place and enforced and wherecompanies can rely on ownership of trademarks and know-how as well as onconfidentiality agreements’. The Indian business and legal set up is characterizedby all these attributes, a fact which has been acknowledged as well as exploitedby numerous foreign companies.
India offers vast openings for a franchisor to set up its business; createawareness for his products or services and exploit the enormous market offered.As a result, it comes as no surprise that India has recently been declared as thesecond most attractive destination for retailers among 30 emerging markets.Though current investment regulations of the Indian Government bar foreigninvestment in the retail sector, it hasn’t deterred foreign participation. Rather thanshying away from the enormous market that India offers, international companieslike Marks & Spencer, the global retail chain of stores have taken to entering intodifferent forms of franchising arrangements, ranging from just use of its trademark for a fee to the standard model of allowing its system to be used for afranchise fee.Seasoned franchisors such as McDonalds were one of the first to realize thewidespread prospects offered by India and extended its services into this market.The international recognition of its brand together with the adaptation of itsproducts to suit the preference of Indian consumers, which include offering morespicy items in its menu, has resulted in McDonalds becoming a household namein India.An important aspect which determines the feasibility of any franchising businessin a country relates to the class of consumers it caters to. India is a country withthe largest young population in the world; a staggering 870 million people arebelow the age of 45 years, a market that will suit the products and services ofmultinational franchising companies primarily dealing in Food &Beverages (F&B)and lifestyle products. Indian consumers have experienced the standard ofservices offered overseas and have sufficient exposure through media, whichhas further fuelled their expectations. They now want to avail of the benefits thata foreign franchisor can generate for them.However, to state that a franchisor can rely on the international recognition of hisbrand and proven business system to ensure a successful venture in India wouldbe nothing short of an oversight. Almost every product or service has a market inIndia but sometimes, innovative strategies like ‘indianisation’ of its products andmarketing techniques must be employed by a foreign franchisor to further accessthe sizable market of India. A notable example in this regard is the deliberateexclusion of beef by McDonalds giving due consideration to the religioussentiments of the Indian public. Majority of India’s population is follower of theHindu religion which preaches that the cow is considered sacred and is thereforeanti cow slaughter.
The Legal Framework in IndiaThere is no specific legislation regulating franchise arrangements in India, butthere are various laws which affect the relationship between thefranchisors and franchisees, including intellectual property laws, taxation, laborregulations, competition laws, property and exchange control. A deepunderstanding of the laws related to the business of franchising is imperative fora foreign franchisor which is planning a foray into the India market.The Government permits foreign franchisors to charge royalties up to 1 % fordomestic sales and 2 % on exports for use of the foreign franchisor’s brand nameor trade mark, without transfer of technology. In effect, this means that by lendingjust their brand name or trade mark to an Indian company, a foreign companycan receive royalties. The laws in India also permit lump sum and royaltypayments to be made by Indian franchisees to their foreign counterparts for useof foreign techno logy, which includes manuals, systems etc. Lump sumpayments up to US$ 2 million are permitted and royalties of 5% on domesticsales and 8% on exports can be paid to the foreign franchisor. In addition, foreigncompanies can enter into consulting agreements and receive up to US$ 1 millionper project. Amounts in excess of these can also be received but with thepermission of the Indian Government. These rules allow a foreign franchisor tostructure its business in India in such a way so as to ensure that it can repatriatethe maximum amount from India.
A foreign franchisor also needs to decide whether to appoint a master franchiseefor the entire country or appoint franchisees around the country independently orthrough its subsidiary which acts as a master franchise. The franchisee will notonly be responsible for developing and adapting the foreign prototype to a newand different market in which it has limited name recognition, but will also beresponsible for implementing the expansion plan of the franchisor for an entirecountry. It is important to recognize that a potential master franchisee in NorthernIndia may have an extremely strong network in that part of the country but maynot be able to provide similar resources in other parts of the country. India is ahuge market and demands, networks and languages vary from region to regionand state to state. It may be a better idea to appoint different franchisees fordifferent regions rather than trusting one master franchisee to control theappointment of suitable sub-franchisees around the country. Further, it is vital toconduct a thorough financial and legal due diligence or feasibility report on one’spotential partner, which includes a check on the owners, directors, financialstatus and its ability to invest and expand the business.
Taxation is another issue which deserves due consideration. It is important toknow the local sales tax, property tax and withholding tax. Eventually, the localtax laws and the existence of treaties between the countries involved mayhave considerable influence on the structure adopted. Where the franchisorreceives royalties, service or franchise fees, tax has to be paid under theincome tax act (as income arising and accruing in India), whether thefranchisor is an Indian or foreign party. In a case where the foreign franchisorsends training personnel and supervisors to India, the salaries payable tothese persons may be subject to personal income tax, whether anarrangement is made to deduct the tax at source or they are taxed as selfemployedpersons (if they come as consultants).
In calculating the amount of tax payable by the franchisor or the franchiseecompany, the deductions available in tax laws of India can be important for taxplanning purposes. Some of these relate to rent, repairs and insurance inrespect to premises used for business; depreciation and expenditure onresearch; and, expenditure of capital nature on acquisition of patent rights orcopyrights. However, the availability of tax advantages would depend on thetype of franchise, the product of the franchise and where the unit is to belocated.It must be noted that the above is subject to double taxation avoidanceagreements (DTA) involving India and any foreign country. The tax liabilitywould accordingly be reduced. The income tax law in India gives recognitionto this and double taxation agreements take precedence over the terms of theIncome tax act.A signatory to the international conventions on intellectual property rights,India offers adequate protection to trademarks or brand names as well ascopyright and designs of the foreign franchisor. A significant step takenrecently is the recognition and protection extended to service marks in Indiaenabling the foreign franchisor to license its mark to a franchisee in order toextend the services synonymous with him to the consumers in India.Enforcement mechanisms are becoming more reliable, which has previouslybeen a bone of contention for foreign corporations.The key issue to a beneficial relationship between any franchisor and itsfranchisee is related to the smooth transfer of technology and training ofpersonnel followed by regular assistance provided by the franchisor in therunning of the business. Like other developing countries, India had, tillrecently, a restrictive technology policy which attempted but didn’t succeed inattracting substantial foreign technology. Owing to this, franchisors initiallypreferred to spread their business in countries which were investment friendlyor culturally similar to the country of their origin.
India: New OpportunitiesPost 1991, India has liberalized the economy and has also emerged as aninformation technology and outsourcing hub. These, coupled with theomnipresent knowledge of English language amongst Indians havesubstantially bridged the cultural divide between India and the westerncountries. Indian franchisees have successfully comprehended andimplemented technology which initially may have been alien to them and haveprovided the required impetus to the franchising industry. In addition tobringing down the costs for the franchisors, the increase in the level ofeducation amongst Indians has created a pool of talent and skill which can berelied on by the foreign franchisors for beneficial partnerships and its fruitfuloutcome.
India offers a large and expanding consumer market with an increasingpurchasing power which amounts to almost 350 million, more than the entirepopulation of some European countries put together. World EconomicReform’s Global Competitiveness Report, 2002-03 has declared India ashaving the best technology licensing regime causing an upturn in the interestof foreign companies to invest in India.One of the most vital tools for the expansion of any business relates to itsadvertising, marketing and brand management. The competence of theadvertising and media sector in India is globally recognized. An extensive medianetwork is always at the disposal of the foreign franchisor to reach the populationof India of over a billion and create awareness of its services and products.Sponsorship of events and festivals by franchisor companies is a commonoccurrence in India.
ConclusionForeign franchisors should take time to understand the huge potential Indiaoffers to their business. Like any business expansion strategy, a foray into theIndian market would require a detailed feasibility study and calculation of risksattached to it. On the other hand, the Indian Government must be open toconfidence building measures in favor of the international franchisors includingpolicy amendments and adoption of a single focus approach to the promotionand regulation of the franchising industry in India.
Note about authors and firm:Srijoy Das (sdas@archerangel.com, +91-11 26261302) is a Partner with the lawfirm of Archer & Angel, based in New Delhi, India with offices in Chennai andMumbai. The firm advises on franchising, intellectual property, foreigninvestment, technology and corporate law.Kartik Srivastava (ksrivastava@archerangel.com +91 -11 51641302) is anassociate in the Corporate and IP department.For further details please contact:DAS, SrijoyARCHER & ANGEL AttorneysK-4 South Etension - 2New Delhi - 110 049IndiaPhone + 91-11-26261302Fax + 91-11-26261303sdas@archerangel.comhttp://www.archerangel.com/