Top 15 Franchise Failures

Top 15 Franchise Failures
Published: 28 Oct 2009 19:32:35 PST
Author: Katie Adams
http://news.alibaba.com/article/detail/entrepreneur/100191506-1-top-15-franchise-failures.html

The recession has hit franchise owners particularly hard, with the Small Business Administration (SBA) reporting record loan default rates for 2008-2009. According to the SBA, individuals who took on SBA loans to finance a franchise had a 43% higher failure rate than in 2007. In total, those franchise losses cost the SBA $93.3 million last year - nearly 170% higher than the year before. Since 2004, franchise loan defaults have increased by nearly 10% (from 3.1% to 13.4%), highlighting that franchise owners have had an increasingly difficult time making a successful go of their new ventures. Sorting through the 2009 Franchise Coleman Report we were able to determine the franchises that had the highest SBA loan failure rates in 2008.

1.Noble Roman's Pizza
Billing itself as "The Better Pizza People," this Indianapolis-based franchiser has had a tough time selling that proposition to customers. While the company reported a 30% net income increase in Q1 of 2009, Q2 total revenues were down more than $500,000 from the comparable period in 2008. Maybe that's why 53% of all owners with SBA loans defaulted in 2008.

2.PJ's Coffee and Tea Café
PJ's Coffee and Tea Café started out as a small business in New Orleans 30 years ago and only recently began selling franchise rights across the south, southeast and southwest. It might want to stick to Cajun country - 50% of the franchisees failed on their SBA loans last year.

3.Super Suppers
At the height of the market, working families expanded their spending to include luxuries such as cleaning services, lawn services and even assemble-your-own dinner services. Super Suppers jumped on the concept and its franchise growth was exponential between 2005 (40), to 2006 (152), and 2007 (206). However, the growth stalled with no new franchise owners coming on board in 2008, and existing owners with SBA loans began failing at a quick pace - 42%, to be exact, in 2008.

4.Figaro's Italian Pizza
Figaro's has been in business for 28 years, but most of its franchise owners aren't likely to reach that same anniversary. One-third defaulted on their loans, unable to grab enough of the industry's $32 billion in annual revenues.

5.New York NY Fresh Deli
Perhaps it was the low single-site franchise fee ($17,500) that attracted new business owners, but it was low revenues that led to closed doors. Thirty-one per cent defaulted on SBA loans in '08.

6.Amazon Café
This franchiser offers smoothies, wraps, salads, soups, juices and more, but apparently not enough more to keep all operators in business. Thirty per cent failed in 2008, and more than 52% have defaulted on their SBA loans since 2000.

7.Simple Simon's Pizza
Simple Simon's grew from one store in Tulsa to a network of 220 restaurants nationwide since 1982. However, nearly 30% of store owners who took on an SBA loan to finance the start-up have defaulted. Perhaps selling pizza isn't quite so simple after all.

8.Snip-Its
The Snip-Its children's hair salons ranked 30th on the Franchise Times' 2007 list of 55 fastest growing franchises, but two years later that growth has stalled. Thirty per cent of store owners with SBA financing failed to repay their loans in 2008.

9.U Build It
Seeking to grab a share of the market that made Lowe's and Home Depot household names the U Build It franchise offers owners an opportunity to serve as "construction consultants" for DIYers interested in building or renovating their own homes. But when the housing market collapsed, it shouldn't come as a shock that 27% of their franchisees reneged on their SBA loans.

10.Bellacino's Pizza
If you're a Facebook user, you can become a Bellacino's Pizza "fan." Unfortunately 26% of Bellacino's owners that took on SBA financing couldn't get enough regular fans to stay current on their debt payments. That number closes in on 30% dating back to 2000.

11.Blockbuster Video
While Blockbuster was able to fend off brick and mortar competitors, it has struggled to maintain market share since Netflix and Redbox changed the rules of the game. In 2008, one in four store owners with SBA loans failed to repay their debt; that number jumps to a sobering 38% since 2000.

12.Pizza Factory
If this list proves anything, it should be that entrepreneurs might do well to avoid pizza franchises. Twenty-four per cent of Pizza Factory owners took a pass on repaying their SBA loans in 2008, and that number jumps to 43% if you look back to 2000.

13.Pro Golf
With a rising unemployment rate, workers aren't knocking off early to hit the links. Perhaps that's what led to 24% of Pro Golf franchise owners defaulting on their SBA loans. But the fact that 64% of all owners have failed to repay their loans since 2000 makes you think that perhaps the business model is the real news, not the recession.

14.Conoco Service Station
While ConocoPhillips Company is a Fortune 500 company, its service center franchise owners (more than 3,100 operate under the Conoco, Phillips 66 and Union 76 brands) are struggling. More than one in five (22%) have defaulted on their SBA financing commitment.

15.Keva Juice
Keva's product isn't a "blendsation" everywhere. Twenty-two per cent of these smoothie store owners didn't raise enough revenue to repay their SBA loans last year; more than one in four (26%) have defaulted on their loans since 2000.

Conclusion
The moral of this story? If you're going to take on an SBA loan to finance your franchise, take a close look at which fellow entrepreneurs failed before you face the same fate.

Francorp will Be at The Seattle Coffee Fest

Francorp to Present at the Seattle Coffee Fest on Expansion Options

Francorp, the world leader in franchise development and new franchise system launches will be at the Seattle Coffee Fest this coming weekend. The Show is the largest of its kind catering to business owners in the coffee industry.

Francorp has been asked to present and run workshops in order to help educate and provide a resource to the show's attendees on franchising a business.

Francorp works closely with most major tradeshows and business sectors around the globe. Don Boroian founded Francorp in 1976 as the only full service, in-house franchise development firm, to this day Francorp is unique in that they continue to be the only franchise consulting firm that has a full time staff and "all under one roof" approach.

Mr. Tom DuFore, Executive Vice President for Francorp Consulting, will be in attendance for the show this weekend. Below are details:

Washington State Convention & Trade Center
800 Convention Place
Seattle, WA 98101-2350

Phone: 206-694-5000
Fax: 206-694-5399
Email: info@wsctc.com
Website: www.wsctc.com

Exhibition Hours:
Friday & Saturday: 12:00pm - 5:00pm, Sunday: 12:00pm - 4:00pm

Educational Training: Exhibition Hours:
Friday & Saturday: 12:00pm - 5:00pm, Sunday: 12:00pm - 4:00pm

Educational Training:
Friday & Saturday: 8:00am - 5:00pm, Sunday: 8:00pm - 4:00pm
Friday & Saturday: 8:00am - 5:00pm, Sunday: 8:00pm - 4:00pm

For more information on franchising or how to franchise, visit the Francorp corporate site, www.francorp.com

Francorp Consulting

Francorp Upcoming Events
Francorp is the world leader in franchise development and franchise launches. As part of that, the ongoing responsibility for the firm is to provide information and up to date facts on the current franchise market and most recent happenings in the field of franchising.

Francorp has a podcast site for Francorp clients that can be accessed any time with continuously updated information and discussions on the franchise industry.

www.francorppodcast.com

With the most recent technology improvements in place this site will allow constant access to many informative video and audio recordings on franchising from Francorp's Chairman, Don Boroian and other Francorp professionals.

There you can also access Don Boroian's extensive discussion on franchising in today's economy and what strategies have worked best in the franchise field.

If you are planning on attending the International Franchise Expo in Los Angeles October 2-4, please come visit us at the Francorp Booth

Show Dates & Hours
Friday, October 2, 2009 11:00 am to 7:00 pm
Saturday, October 3, 2009 10:00 am to 5:00 pm
Sunday, October 4 , 2009 11:00 am to 4:00 pm

Location:
Los Angeles Convention Center
South Hall H & J
1201 South Figueroa Street
Los Angeles, CA 90015
PH: 213-741-1151
Fax: 213-765-4266

Booth # 821

Francorp will have a number of staff members there at the booth to discuss franchising and hold consultations. Several members of the Francorp team who are based throughout California will also be at the show.

Francorp also has an office based in Mexico City that has been established for nearly 20 years run and operated by Mr. Ramon Vinay. Mr. Vinay brings almost 35 years of franchise experience around the globe to Francorp and will be available for business owners to discuss franchise strategies and implementation in Spanish.

If you would like to arrange for a meeting with any members of the Francorp team please call 708-481-2900. Please call us for a free registration to the show before October 1, 2009.

Francorp will be conducting Franchise Marketing Training with former Francorp Client, Todd Sullivan at the Francorp world headquarters.
Francorp Marketing Training is focused on lead generation, developing a franchise brand and efficient marketing strategies for a franchise company.
October 20th & 21st
Francorp, Inc
20200 Governors Drive
Olympia Fields, IL 60461

Francorp - Franchise India Client Meetings
October 12-14th, 2009
Francorp will be inviting select franchisors to the Francorp corporate headquarters for meetings and discussions with Francorp India to break down strategies and implementation for entering the Indian Market. Francorp India will have several Francorp team members in attendance including the Francorp India CEO Gaurav Marya.
Francorp, Inc
20200 Governors Drive
Olympia Fields, IL 60461


Franchise Management Training Module
This training module is run by Mr. John Dukach, Vice President of Strategic Planning with Francorp. He discusses current management strategies for new franchise companies, system management, franchise relationship building and other processes to effectively run and manage a franchise company. Mr. Dukach brings over 30 years of franchise management to Francorp.

October 21st & 22nd, 2009
Francorp, Inc.
20200 Governors Drive
Olympia Fields, IL 60461


Franchise Expo South
January 15 - 17, 2010
Francorp will be Exhibiting at the Exposition
Miami Beach Convention Center, Hall C
1901 Convention Center Drive
Miami Beach, FL 33139

Show Dates & Hours
Friday, January 15, 2010 11:00 am to 6:00pm
Saturday, January 16, 2010 11:00 am to 6:00 pm
Sunday, January 17, 2010 11:00 am to 5:00 pm

For constant updates on Francorp, Francorp clients and global updates on the franchise industry, follow Francorp on Twitter, www.twitter.com/Francorp

Francorp will be presenting at the Florida Restaurant Show in Orlando, Florida this weekend. For information visit the Florida Restaurant Show website for details.

Here are a list of the conference educators. Francorp is presenting on how to franchise a business and how to buy a franchise.

Don Boroian founded Francorp in 1976 and since that time, Francorp has cemented itself as the global leader in franchise development and franchise consulting.

Francorp is frequently brought into restaurant and trade groups to help their members and associates about franchising in order to help them evaluate whether franchising would work to expand their company.

Full Conference Schedule
Friday, September 11

10:00 – 11:30 AM
Knowledge Exchange – Invitation Only
Moderator: Larry Stuart, President, Larry Stuart Hospitality
Featuring Joel Cohen, Chief Experience Officer/Wizard of WOW, RestaurantMarketing.com
www.larrystuarthospitality.com

The Knowledge Exchange is 60 minutes of idea and solution sharing with peers on the theme topic:
Time is tight and business is challenging. How do you ensure growth in this economy? To kick-off the Knowledge Exchange, Larry Stuart will deliver a quick ten minute guide on the top 3 keys to surviving in a down economy – and then the knowledge exchange begins!
Sponsored by Tyson Foodservice.

11:00 AM – 12:00 PM
Marketing Recipes for Success in Challenging Times
Linda Duke, CEO, Duke Marketing, LLC
www.marketing-cookbook.com

Restaurant marketing expert and author Linda Duke will share some of her sales driving tips, tools and tactics of successful marketing programs and creative visuals of top restaurant brands in the country. The restaurant business has become highly competitive and with consumers ever changing demands and time constraints, it is imperative that restaurant operators have marketing programs in place to get their share of sales, awareness and frequency.
www.marketing-cookbook.com

11:00 AM – 12:00 PM
Email Marketing-How to Skyrocket Sales & Make it Your Best Weapon
Boris Bugarski, CEO and President mUrgent
www.murgent.com

From email marketing strategies to tactics, this session will demonstrate proven methods for stinging your competition, creating business and buzz in your neighborhood, and making your email marketing work harder to combat this slowing economy. Learn how thousands of restaurant locations across the U.S. have used Boris Bugarski's top email marketing secrets and tips for growing sales month after month by building a monster email list overnight and effectively leveraging email for higher ticket sales.

Take-Aways:
What components are necessary for a solid e-club program

1. Learn the differences between email marketing service providers
2. Know the secrets for building an email list overnight – and how to keep it growing
3. Discover how to create subject lines that command higher open rates – and the best tips on how to create higher click through rates

PLUS! Boris’s top tips on growing bigger ticket sales

12:30 – 1:30 PM
Disney's Approach to Quality Service
Tom Madden, Manager, Content Delivery and Quality Control - Keynote Speaker
The Disney Institute
www.disneyinstitute.com

Quality Service showcases how Disney is able to understand the psychographics and demographics of Guests’ needs, using a sound service infrastructure, ongoing research, and quality service standards that exceed Guests’ expectations. Discover how attention to detail creates a consistent, world-class service environment for both employees and consumers.

11:00 AM - 12:00 PM
Retaining Your Customers & Brewing Profits with Delicious Coffee
Michael Love, Ultimate Barista USA, Owner, Coffee Labs Roasters Inc.
www.coffeelabs.com

Join Mike Love, in a lively informative presentation about Coffee, its origin, Market trends and how to add to your bottom line with brewing “Tips and Tricks”.
New and Current Coffee trends will be discussed, along with how to implement these into your business. Don’t let your customers be “deserters”..(Patrons who leave an establishment after a meal to find delicious coffee). Adding quality coffee to your menu will increase profits and let your customers first, last and lasting impression be an excellent one.

1:30 – 2:30 PM
A Year in Social Media – Case Study
Paul Barron, SVP, Publisher & Chairman
Fast Casual Magazine
www.fastcasual.com/magazine.php

Building your brand and restaurant business is a challenge now more than ever. Why? It's simple you have lost control of the consumer. But wait that's a good thing in today's always on everything anywhere, anytime consumer social sphere. New media branded as social media, social web, and few terms yet to be named is really just about connecting to your audience. Problem is in requires high-tech tools and an understanding that we as restaurant owners and operators are not familiar or comfortable using. Fear not, as we take you into a real how to process of creating your own digital footprint and develop your Social Media Makeover!

2:00 – 3:00 PM
Pouring and Inventory Control
Brice Jones, Hospitality Consultant, Attrarre Group,
www.attrarregroup.com

2:00 – 3:00 PM
How to Keep Fine Dining Alive and Profitable
Larry Stuart, President, Larry Stuart Hospitality
Social media, communal tables, and tasting menus are just some of the ways restaurants have reacted to the change in consumer dining. When and how should your restaurant respond? Learn what some of the most successful restaurateurs and chefs are doing, to continue to bring in crowds without sacrificing their brand.

2:00 – 3:00 PM
Imaginative Resort & Restaurant Branding
Scott Ward, Vice President, Sales/Marketing, Scrub Island Resort, BVI, www.mainsailhotels.com
Tom DiGiorgio, CEO, DK-Group, www.dk-group.com
Andre' Capi, Director of Architecture, DK-Group, www.dk-group.com
In today's economic and competitive environment, there is a temptation to resort to short-term tactical pricing strategies to the detriment of your brand. Consumers have to be motivated and captivated so it is important to develop a brand with charisma and drive it home throughout the customer experience.

2:00 – 3:00 PM
Expanding Your Company Today Through Franchising
Christopher Conner, Vice President, Francorp
www.francorp.com

This session will highlight multiple ways companies look at to grow and how the present market conditions are affecting each. Growth strategies include: venture capital, licensing, franchising, debt, internally generated capital, and business opportunities. If you are serious about growing your company, this session is a must.

3:00 – 4:00 PM
Stand Out…or Step Aside
Larry Mersereau, CTC
PromoPower LLC
www.promopower.com

What do you think goes through a person’s mind when they’re thinking about eating out? Do they ask “Where’s the cheapest place in town?” Maybe it’s “Where can I get this over with in a hurry?” Or is it “Where can I go where I feel welcomed and appreciated, and will feel like it was well worth the money when I leave?” Actually, there are a number of questions. Your marketing and advertising should answer some of them. Your sales efforts answer more. And service controls whether they get the kind of experience that will leave them satisfied and likely to come back again…and again. You must understand each step of the loyalty-nurturing-continuum, and manage them all properly if you want to grow your business. This program gives you simple, doable…effective strategies and tactics you can use immediately to make that first thing that they think be: “Let’s go to ( your name ). Why would we go anywhere else?”

3:30 – 4:30 PM
Customer Service – When You Care, They Know
Richard Flint CSP, Chairman & CEO
Flint, Incorporated
www.RichardFlint.com

When the customer enters your establishment and doesn’t feel their business is valued, you lose! You talk about “service” and the customer talks about “satisfaction”: when the two aren’t connected through the feeling of “being appreciated”, business is lost. Join Richard Flint as he shares his insights into how to build the bridge between the concept of Customer Service and the experience of Customer Satisfaction through being able to define “Customer Appreciation.” The program – When You Care, They Know!

The Philosophy: Your product gets you noticed, your service gets you remember and when the two are tied together through quality, the customer feels appreciated: that creates Customer Loyalty.

3:30 – 4:30 PM
Common Sense Marketing For Independent Restaurants: How To Compete Against The Big Chains & Win!
Joel Cohen, Chief Experience Officer/Wizard of WOW, RestaurantMarketing.com

Designed for independent restaurants, this fast-paced workshop shows you how to do the little things inside and outside of your restaurant that win the hearts and wallets of your guests. Common sense marketing is simply about being the "mayor" and winning the campaign in your neighborhood.This workshop gives every attendee a direction and over 25 easy, inexpensive tactics to use that will make their guests say, "Wow!" For the restaurateur that needs simple ideas that are rewarding and easy to achieve, this workshop is it.

3:30 – 4:30 PM
100 Million Singles + The internet + Your Restaurant + Success Tom Jaffee, CEO/Founder, 8minuteDating.com and David Evans, President, Digicraft

Want to create a "buzz" for your venue, attract new customers on your slow nights of the week, or grow your base of regulars? There are more than 100 million singles in America, whose available time, discretionary spending, and appetite for premium brands represent a huge and untapped business opportunity for restaurants. This session will outline specific strategies for utilizing recent innovations in social networking, mobile services, event hosting, and online dating that you can employ right away with just a small outlay of time or resources, and in some cases with no expense to your business.
Saturday, September 12

10:00 – 11:00 AM
Common Sense Marketing For Independent Restaurants: How To Compete Against The Big Chains & Win!
Joel Cohen, Chief Experience Officer/Wizard of WOW, RestaurantMarketing.com

Designed for independent restaurants, this fast-paced workshop shows you how to do the little things inside and outside of your restaurant that win the hearts and wallets of your guests. Common sense marketing is simply about being the "mayor" and winning the campaign in your neighborhood. This workshop gives every attendee a direction and over 25 easy, inexpensive tactics to use that will make their guests say, "Wow!" For the restaurateur that needs simple ideas that are rewarding and easy to achieve, this workshop is it.

10:30 – 11:30
Tactical Marketing Workshop
Rob Crews, President
C Results Marketing

Hear from a former restaurant CMO who will give you 30 ideas in 30 minutes to drive your business and then spend 30 minutes answering your toughest marketing issues. Bring your questions and expect a lively, fast-paced discussion.

11:00 AM – 12:00 PM
How to Sell More Franchises
Sponsored by The Franchise Edge & The Franchise Sales Solution
www.thefranchiseedge.com

Join Paul Samson, President of The Franchise Edge (The National Franchise Development Partner for Sysco foods) in an interactive session that will provide you with critical information on how to sell more franchises and grow your business. Key focal points will include: generating, managing and tracking leads, how to build a measurable and consistent sales process, creating a 10 Point-of-Contact Campaign, establishing a goal-setting dialogue with prospects and moving prospects through the sales process.

12:00 – 1:00 PM
Turning Your Vendors Into Partners
Moderator: Linda Duke, CEO, Duke Marketing, LLC
www.dukemarketing.com

Restaurant operators have numerous vendors to purchase goods and services from. Across the entire food and beverage industry there are thousands of product partners and opportunities that often go unnoticed or under utilized. This panel of restaurant Supplier/Vendors will discuss what type of support, promotional dollars and innovative programs are available to restaurant operators. Panelists will share several case studies and success stories, as well as discussing current opportunities for operators to take advantage and turn their vendors into partners.

12:00 – 1:00 PM
Culinary Cocktails Francine Cohen, Beverage Consultant

12:00 – 1:00 PM
Restaurant Operations for a Profitable Bottom Line
Darren s. Denington, CFBE
Service With Style
www.servicewithstyle.com

Systems, Systems, Systems. Implement tested and proven systems on Service, Hiring, Training, Cost Controls, Inventory and Daily Functions that will have your restaurant operating smoothly for a strong future.

12:30 – 1:30 PM
Retaining Your Customers & Brewing Profits with Delicious Coffee
Michael Love, Ultimate Barista USA, Owner, Coffee Labs Roasters Inc.
www.coffeelabs.com

Join Mike Love, in a lively informative presentation about Coffee, its origin, Market trends and how to add to your bottom line with brewing “Tips and Tricks”.
New and Current Coffee trends will be discussed, along with how to implement these into your business. Don’t let your customers be “deserters”. (Patrons who leave an establishment after a meal to find delicious coffee). Adding quality coffee to your menu will increase profits and let your customers first, last and lasting impression be an excellent one.

1:30 – 2:30 PM
Senior Hospitality: Gearing Up for a Graying America
Jeff Catrett
As life expectancy rises and baby boomers enter their retirement years, accommodating seniors is increasingly a fact of life for the hospitality industry. However, to date, not enough thought has been devoted to the needs of older guests. Mr. Catrett will provide an overview of the expectations of this important and growing market segment, while highlighting mistakes made by the healthcare industry to draw parallels on how the hospitality industry can avoid the same pitfalls. He will offer insight and advice on what the hospitality industry can do to prepare for and better service the growing number of aging baby boomers.

2:00 – 3:00 PM
Environmentally Sustainable Restaurant
Colleen Oteri, Communications Manager
Green Restaurant Association
www.dinegreen.com

Yes, it’s possible. The Green Restaurant Association, the leading organization for restaurants achieving restaurant sustainability will provide you with an overview of how your restaurant can become more environmentally sustainable in a way that makes sense for your business.

2:00 – 3:00 PM
Email Marketing – How to Skyrocket Sales & Make it your Best Weapon
Boris Bugarski, CEO and President
mUrgent
www.mUrgent.com

From email marketing strategies to tactics, this session will demonstrate proven methods for stinging your competition, creating business and buzz in your neighborhood, and making your email marketing work harder to combat this slowing economy. Learn how thousands of restaurant locations across the U.S. have used Boris Bugarski's top email marketing secrets and tips for growing sales month after month by building a monster email list overnight and effectively leveraging email for higher ticket sales.

Take-Aways:
What components are necessary for a solid e-club program

1. Learn the differences between email marketing service providers
2. Know the secrets for building an email list overnight – and how to keep it growing
3. Discover how to create subject lines that command higher open rates – and the best tips on how to create higher click through rates

PLUS! Boris’s top tips on growing bigger ticket sales

3:00 – 4:00 PM
Marketing Optimization
Rob Crews, President
C Results Marketing

Being good enough is no longer the benchmark. Come hear how the best marketers are now optimizing their ideas and not leaving money on the table. This is your chance to come see the future of marketing.

3:30 – 4:30 PM
Want To Own A Business? Need a Job? Franchise is Your Solution
Christopher Conner, Vice President, Francorp
www.francorp.com

In this session you will learn how buying a franchise is an excellent option to consider in today’s job market. It also will discuss the advantages to buying into a franchise instead of going into business on your own. If you are a job seeker or future entrepreneur this session is for you.

Zoom Room Dog Agility Centers

The Zoom Room Launches the Nation's First Dog Agility Franchise Opportunity

Los Angeles, CA (PRWEB) September 2, 2009 - The Zoom Room, recently featured on Animal Planet, is now offering the only brick-and-mortar dog training franchise in America, as well as the only dog agility franchise opportunity in the world. Dog agility is the fastest-growing dog sport in the U.S., according to the American Kennel Club. It was just a matter of time before someone figured out a way to develop this popular pastime into a full-blown pet business. A matter of time and the right person. That person turns out to be Los Angeles native Jaime Van Wye, who as founder and owner of the Zoom Room Dog Agility Training Center and Canine Social Club, this week announced their nationwide dog franchise opportunity.

The Zoom Room, conceived as a franchise from its inception, was created to be the ideal dog business by Van Wye, the nation's leading pet business consultant and the Dog Daycare Chair of the Pet Care Services Association. An unrivaled expert in helping entrepreneurs start a dog business, Van Wye designed the Zoom Room as a streamlined, fun-filled business that incorporates everything great about working with dogs.

In 2001, Van Wye opened Rover Kennels, which soon became the go-to boarding facility in L.A., frequented by the dogs of celebrities like Tom Cruise, Kelly Clarkson, and Tyra Banks. Van Wye grew the business from two employees to 25 in under three years. The business became a tremendous success, grossing over $750,000 in the first year alone.

But in addition to Rover's success, it was also "a phenomenal learning experience," says Van Wye, who quickly learned the pitfalls of pet services: demanding dog owners, unreliable employees, and enormous liability issues, not to mention an often prohibitive start-up cost.

In 2007 Van Wye sold Rover to develop the Zoom Room, a dog franchise that eliminates all aspects of boarding, thus removing liability issues. By subtracting the need for employees, a Zoom Room is run "by a single, passionate proprietor, someone who combines a love for dogs with savvy business sense."

"The Zoom Room," says Van Wye is "not a drop-off training facility; this sets us apart from competitors. We train owners to train their dogs, and to more deeply understand, communicate and bond with their pets." A tired dog is a happy dog, and Van Wye is committed to her belief that "a well-trained dog is an even happier dog - not to mention one with much happier owners. In our experience, placing an emphasis on agility training is an extremely effective means to reach this goal."

Dog agility, practiced recreationally, is the perfect bonding experience for an owner and dog. The key to dog agility is teamwork and communication - core components of a great relationship with one's dog. Integral to the Zoom Room's brand identity, agility training appeals to active lifestyle dog owners. Although they offer dog training classes like puppy training, dog obedience, tricks training, therapy dog training and even Pup-Lates™ the gym-like atmosphere dominates. Even their sporty retail section furthers the impression of an upscale human fitness club.

As a Canine Social Club featuring a Hound Lounge and Doggy Disco™, the Zoom Room can host a dog birthday party, Bark Mitzvah, or local dog club in their indoor dog park.

As a dog franchise, the Zoom Room is a true pioneer. Not only is it the first dog agility franchise; it is the only brick-and-mortar dog training franchise opportunity in the U.S. Absolutely no prior dog training experience is required.

Please visit the Zoom Room Dog Agility Training Center for more information on the availabiliy of their pet franchise, or call 877-ZOOM-ROOM.

Learn More about the Zoom Room Franchise Opportunity.

About the Zoom Room:

The Zoom Room Dog Agility Training Center was established in 2007 by Jaime Van Wye, a graduate of U.C. Berkeley with a degree in philosophy, who has trained dogs in search and rescue, bomb and drug detection, criminal apprehension and tracking. She is a Certified Master Dog Trainer and a Professional Level Member of the International Association of Canine Professionals. Van Wye speaks regularly for the Pet Care Services Association, of which she serves as the National Dog Daycare Chair. She is the author of the satirical self-help book, How to Have an Ill-Behaved Dog (Knock Knock), as well as a regular columnist for Pet Care Services Magazine and Dog's Life Magazine.

Contact:

Mark Van Wye
Zoom Room Dog Agility Training Center
310-382-4148

Francorp Presents at the Western Food Service Expo

This past weekend, the California Restaurant Association asked Francorp to present to it's members in San Diego on franchising a business and how to buy a franchise.
Tom DuFore attended the show over the weekend and presented on the topics.

Western Food Expo
www.westernfoodexpo.com
Sunday, 8/30/09
12:30 – 1:30
Expanding Your Company Today Through Franchising
Tom DuFore, Executive Vice President
Francorp
www.francorp.com

This session will highlight multiple ways companies look at to grow and how the present market conditions are affecting each. Growth strategies include: venture capital, licensing, franchising, debt, internally generated capital, and business opportunities. If you are serious about growing your company, this session is a must.

Francorp is regarded as the world leader in franchise consulting and franchise development. Don Boroian founded the firm in 1976 and continues to run and operate the international consulting firm out of Chicago, IL. Francorp has 22 offices around the globe and is the industry leader in start up franchise organizations.

www.francorp.com

Francorp - Don Boroian

Francorp has worked with 112 of the most recent Franchise 500 companies. This is important from the perspective that Francorp as a consulting firm has done work with these franchise systems, many of which Francorp developed from the ground up. Francorp is renowned as the world leader in franchise development and new franchise launches. The firm continues to develop successful franchise systems today after 34 years of franchise consulting work. Look over the Francorp corporate site for more information on the firm and the clients Francorp has developed.

www.Francorp.com

Should I Franchise?

Should I Franchise?
Whether you have a totally new concept or an established business in need of faster growth that is lacking the capital, time and people to expand the question is, “Should I franchise?”
Today more Businesses and greater variety of businesses are implementing franchising to distribute their products and services. Virtually any business can be expanded through franchising. Franchising a business is often the only viable source of capital available for expansion especially in today’s tight credit markets. In most instances, the cost of franchising is often a smaller investment that the cost of establishing just one new location.

After paying the initial cost of developing your franchise program, the remaining cost of expansion along with most of the business risk is assumed by the franchisees. Because the franchisee pays an upfront franchisee fee the franchisor is often able to recoup the total cost of franchise program development rather quickly while establishing a monthly revenue stream from royalties paid by the franchisees.

Franchising can provide the capital for rapid growth when your business doesn’t have the capital, the people, or even the time to establish a company owned growth program. Franchising solves the problems of slow growth, the problems of finding outside capital and the problems of finding the right employees associated with company owned units. Franchising a business is the solution for the problems of money, time and people.

Money

Franchising transfers almost the entire cost of expansion to the franchisees. Franchisees build the building or pay the rent, buy the inventory, pay the employees, do the marketing and provide the working capital until sales make the business profitable. In reality, the growth of a franchise system is limited only by the number of people willing to buy the franchise and the number of locations that can be sold.

Time

If you’re anxious to move quickly before the competition catches on with a hot new concept franchising provides solution. Franchising is the one growth system that allows businesses to expand exponentially. A franchise can grow rapidly simply by selling individual units. Some franchises can grow even faster by selling multiple units or territories to sub franchises. Either way, it is almost always faster to open franchises than company-owned units.

People
Franchisees make excellent employees and managers. They have a vested interested in making the business successful. They own it. A franchisor not only gets a dedicated manager they are relieved from the daily problems associated with hiring, firing and managing employees.

In summary, if you are looking to expand your business and lack capital, time or people, franchising is a viable solution to all three problems. If this scenario applies to you and your business the answer to the question, “Should I franchise?” is definitely yes.

Francorp Middle East To Work with Mumtaz Mahal Restaurant Chain

Mumtaz Mahal Restaurant teams-up with Francorp to develop its full franchise development program

 

21 June 2009
Mumtaz Mahal Restaurant has signed an agreement with the American based company Francorp through its Middle East regional office in Dubai. According to the agreement, Francorp will design and develop the full franchise program development for Mumtaz Mahal Restaurant, who plans to expand regionally through franchising.

Through this ambitious program, Mumtaz Mahal Restaurant plans to develop and prepare itself for regional expansion and open new branches to compete with multinational companies specialized in the authentic Indian fine dining cuisine. This step is taken after Mumtaz Mahal Restaurant's successful 25-years experience in the local Omani market, where it has secured a considerable market share, acquired customer satisfaction for its quality products and services. The company is known in Muscat by offering high-quality food products with an unforgettable customer experience.

The agreement was signed between Rishi Khimji, Managing Director, Ajit Khimji GroupAjit Khimji Group, and Imad Charafeddine, Managing Partner at Francorp UAE - Middle East.

"Started in 1984, Mumtaz Mahal is an Indian specialty and fine dining restaurant which caters to all palate types - Indian, Western and local. Mumtaz Mahal is the landmark of Muscat and the best North Indian specialty restaurant around.

Truly Indian, the guests are entertained with live Indian band in the evenings. Mumtaz Mahal menu offers popular vegetarian and non vegetarian Mughlai dishes with consistent innovation in preparation of its dishes. The meals consist of starters, main courses and sweet dishes. The main restaurant is situated on a hilltop and offers a magnificent view of the cityscape and the sea. The interior of the restaurant has arches and motifs, typical of the Mughal era with a generous use of wood (Burma Teak) in the pillars, ceiling and arches. The floor is thickly carpeted and the central area of the restaurant has designated space for live music performances - vocal and instrumental".

"We, at Francorp, are very delighted to see franchises expand in the region," commented Imad Charafeddine. "Franchising is becoming a necessity for many local businesses aiming at achieving more business successes. It is observed that the awareness of the importance of franchising is increasing day by day. Successful local businesses started to realize its great benefits and the positive impact it has on their business development. Franchising is one of the most effective options which takes ambitious companies to new destinations and accelerate their expansion plans without their direct investment in developing new branches, especially from emerging markets such as the Middle East."

"We are also pleased to add Mumtaz Mahal Restaurant to our successful client list and to offer them our franchise consultancy for their expansion program. This is due to their remarkable success as industry leaders in Muscat - Oman market, and now it is the opportunity to duplicate and clown their local success and know how to others. It is our commitment now to use our long experience to offer a comprehensive full franchising development program to Mumtaz Mahal Restaurant," added Imad A. Charafeddine.

"We have teamed-up with the US-based Francorp, the leader in franchise development and consultation, because of their vast experience that goes back to 33 years and their track record in the development programs along with their experience in this region," concluded Rishi Khimji of Ajit Khimji GroupAjit Khimji Group.

Francorp opened their office in Dubai and started their regional operation by offering professional commercial services throughout the Middle East. With their extensive experience, outstanding achievements and high quality services, Francorp became one of the largest leading international companies in franchise development and consultancy.

-Ends-

FOR MORE INFORMATION CONTACT:
Mr. Imad A. Charafeddine
Off: +9714 3297675
Email: Info@francorp.ae
imad@francorp.ae
Web: www.francorp.ae

 

 

Christopher James Conner

Vice President

Francorp, Inc.

The Franchising Leader.

www.francorp.com / www.francorpconnect.com

BLOG:  www.francorp1.com

PH: 800.372.6244 / 708.481.2900

CELL: 708.606.7260

FAX: 708.481.5885

 

 

 

Ice Cream Business Doing Well

NO COOLING OFF FOR ICE CREAM BUSINESS

Cape Cod Times
By Sarah Shemkus
May 24, 2009

As economic uncertainty encourages families to rethink how much they can spend on vacations, entertainment and dining out, the simple pleasures of the cream parlor seem to be a little luxury that consumers are unwilling to cross off their budgets.
Evidence from past seasons, in fact, suggests that ice cream vendors don't just survive economic downturns, they thrive, said Robert Bryson, the executive director of the New England Ice Cream Restaurant Association.
"In a challenging economy, in a down economy, ice cream shops do very, very well," he said. Business "actually increases because people are going to maybe not be buying a new television set "¦ but they will not be denying their children the treat of an ice cream cone during the summertime."
Across Cape Cod, ice cream purveyors are confident that this phenomenon will hold true this summer.
Last summer, the first hints of economic decline and soaring gas prices did nothing to deter ice cream enthusiasts.
Even with the widespread optimism, ice cream professionals are taking a few steps to ensure strong business in a recession-struck summer.
All of the shops surveyed have chosen not to raise their prices this year.
"Normally, we would have," said Bob Hannon, owner of Ice Cream Sandwich in Sandwich.
Because of the constantly rising cost of ingredients, he usually increases prices by about 5 percent each year, Hannon said.
"This year we're maintaining the prices," he said. "If we can keep a stable price, then hopefully it will make it a little easier for people to enjoy the treats."
Approaching Memorial Day weekend, most ice cream sellers said that their stores' performance during the informal kickoff to the tourist season probably won't provide much indication of how the rest of the summer will go.
Weather, the ice cream shop proprietors said, is easily the biggest factor in determining the success of the summer.

McDonald's

McDonald's same-store sales up, but shares fall
Mon Jun 8, 2009 9:50am EDT


CHICAGO (Reuters) - McDonald's Corp (MCD.N) on Monday reported a 5.1 percent increase in May sales at restaurants open at least 13 months, with demand strong in Europe and Asia/Pacific.

However, the growth was down from April, when global same-store sales rose 6.9 percent. McDonald's shares fell 3.3 percent in early trading.

May same-restaurant sales were up 2.8 percent in the United States, helped by new coffee drinks and snacks. That was significantly slower than the 6.1 percent growth in April.

The world's largest hamburger chain is one of the restaurant industry's top performers largely because its Dollar Menu has been attracting diners amid a lengthy recession that has sent unemployment sharply higher.

The stronger U.S. dollar -- which lessens the dollar value of overseas sales -- led to an overall 0.4 percent decline at worldwide McDonald's restaurants, the company said. Sales rose 7 percent in constant currencies.

Fast-food restaurants generally have held up better in a tough economy than higher-priced sit-down restaurants.

McDonald's May same-store sales increased 7.6 percent in Europe, and 6.4 percent in the company's Asia/Pacific, Middle East and Africa segment. In April, same-store sales in the two regions were up 8.4 and 6.5 percent, respectively.

McDonald's said the hit by the foreign exchange rates, if they remain around current levels, is expected to be 8 cents to 9 cents a share in the second quarter and about 20 cents for the year.

The company also said second-quarter results, which it is scheduled to report on July 23, are expected to include 2 cents to 3 cents a share of income due to a license deal in Indonesia and the sale of Redbox Automated Retail.

Its shares fell $2.08, or 3.3 percent, to $57.80 in early trading on the New York Stock Exchange.

(Reporting by Ben Klayman and Lisa Baertlein in Los Angeles; Editing by Maureen Bavdek)

Francorp To Exhibit at the Atlanta Franchise and Finance Exposition

Francorp, the worlds oldest and most experienced franchise consulting and development firm will be exhibiting at the Atlanta Franchise and Financing Exposition on May 2nd and 3rd at the Cobb Galleria Center in Atlanta, GA.

Show Dates & Hours
Saturday, May 2, 2009
11:00 am to 5:00 pm
Sunday, May 3, 2009
11:00 am to 5:00 pm

Location: Cobb Galleria CentreTwo Galleria Pkwy Atlanta, GA 30339
(770) 953-4099
http://www.cobbgalleria.com/
Hall D
Booth # 215

Francorp has been developing successful franchise organizations for over 33 years and has a client list of over 2,000 franchise systems. Francorp is heavily involved with franchise exhibitions around the world including India, the Middle East and Latin America. Atlanta is a wonderful franchise market place and the Atlanta Franchise and Finance Exposition should be a great show.

Francorp has five clients exhibiting at the Atlanta show also including European Wax Centers, Monster Mini Golf, Patrice and Associates, Omega Learning Centers and Froots Fresh Smoothies. All of these companies are exciting brands that have continued to grow and work with new franchisees over the past year. European Wax Centers now has almost 100 locations in just under two years of franchising, Froots continues to set the trend for the smoothie industry with almost 100 locations as well and Monster Mini Golf has almost 30 locations in only a couple of years in the franchise business.

Froots
http://www.froots.com/
Omega Learning Center
http://www.omegalearningcenter.com/
Patrice And Associates
http://www.patriceandassociates.com/
Monster Mini Golf
http://www.monsterminigolf.com/
European Wax Centers
http://www.waxcenter.com/

Here is a great excerpt from the Atlanta show's site that explains the value and opportunity that the show brings to its attendees.
http://www.localfranchiseshow.com/atlanta/indexatt.cfm

The Franchise and Financing Expo is the perfect event for exploring and investing in opportunities that put you in business for yourself – but not by yourself. Because when you purchase a franchise, you're purchasing a proven business concept designed to help ensure your financial success. The Atlanta Franchise & Financing Expo will give you the opportunity to meet face-to-face with representatives from many of the top franchise concepts, at every investment level – looking to expand throughout Atlanta. All in one place, and at one time, you'll be able to learn about franchises in virtually every industry. Sample products. Attend educational conference tracks. And get all the information you need to find the franchise that matches you skills, interests and budget. Lenders will be on hand to answer questions about financing your venture, or you can start the financial qualification process now when you pre-register for the event. For More Information request to be contacted by the Lender(s) of your choice after Pre-Registering. If you want more information or have questions before you arrive at the Atlanta Franchise & Financing Expo please contact Rick Brunsman.

Attend These Informative Conference Tracks
The A to Z's of Buying a Franchise
How to Franchise Your Business
Financing Your Franchise
Opportunities in Franchising for Minorities & Women

For more information on Francorp please visit the corporate site, http://www.francorp.com/

United to begin charging very obese for second seat

By Wallace Witkowski

Last update: 2:06 p.m. EDT April 15, 2009

Comments: 42

SAN FRANCISCO (MarketWatch) -- United Airlines, operated by UAL Corp. (UAUA:

UAL Corp

UAUA 6.56, +0.51, +8.4%) , said Wednesday on its Web site that it will join other airlines and begin charging very obese passengers for a second seat. Under the new guidelines, passengers who are unable to fit into a single seat in the ticketed cabin; unable to properly buckle the seatbelt using a single seat-belt extender; or unable to put the seat's armrests down when seated will have to buy a second ticket. The guidelines apply to tickets purchased on or after March 4 for travel on or after April 15.

 

 

Christopher James Conner

Vice President

Francorp, Inc.

The Franchising Leader.

www.francorp.com / www.francorpconnect.com

BLOG:  www.francorp1.com

PH: 800.372.6244 / 708.481.2900

CELL: 708.606.7260

FAX: 708.481.5885

 

 

 

FW: KFC Menu Change

www.chicagotribune.com/news/sns-ap-kentucky-grilled-chicken,0,414298.story

chicagotribune.com

Kentucky Grilled Chicken? KFC gambles on changing tastes in launching new option nationwide

BRUCE SCHREINER

Associated Press Writer

2:27 PM CDT, April 14, 2009

LOUISVILLE, Ky. (AP) — Would KGC ever have the same ring?

In a culinary gambit backed by buckets of big money, KFC is hoping to replicate its founder's recipe for success with the national introduction of Kentucky Grilled Chicken.

This week's rollout is KFC's most ambitious attempt to win over health-conscious customers as the chain known worldwide for fried chicken tries to reinvigorate lackluster U.S. sales.

"It's going to get people who haven't eaten KFC for a long time to come back into our restaurants," said KFC President Roger Eaton. "It's going to get people who have never eaten KFC to come into our restaurants."

Eaton says he spent years as part of the team tinkering with a grilled alternative, and the rollout follows KFC's longest market test ever. It will be backed by a marketing blitz.

Grilled chicken items are staples at some KFC competitors. McDonald's Corp. offers grilled chicken in sandwiches and wraps, and says chicken sales "continue to be extremely good." McDonald's has also recently been emphasizing its new Southern Style Crispy Chicken sandwich, which is fried. Chick-fil-A says its Chargrilled Chicken Sandwich "continues to grow rapidly" as part of a menu offering "balanced choices" for customers.

KFC's slow-grilled chicken drew strong reviews from the lunchtime crowd Monday at a KFC restaurant in Louisville, the chain's hometown. Eddie Collard proclaimed grilled better than fried.

"I think the colonel would be happy," Collard said of KFC founder Colonel Harland Sanders.

Like its predecessor, Kentucky Grilled Chicken has its own secret recipe. The original copy of the recipe — a blend of six herbs and spices — will be kept in an electronic safe at company headquarters. It will sit alongside Sanders' handwritten recipe of 11 herbs and spices coating the chain's Original Recipe fried chicken.

The difference is in the nutritional numbers.

KFC says each piece of its grilled chicken has 70 to 180 calories and four to nine grams of fat. By contrast, the Original Recipe items have between 110 and 370 calories and 7 to 21 grams of fat, depending on the piece. The grilled chicken contains from 160 to 440 milligrams of sodium per piece, as opposed to 290 to 1,050 milligrams of sodium per piece of Original Recipe chicken.

Michael Jacobson, executive director of the Center for Science in the Public Interest, a Washington-based advocate for nutrition and health, called the grilled introduction a "major step in the right direction."

While applauding the reduction in sodium, Jacobson said the 440 milligrams listed by KFC in a grilled chicken breast still amounts to more than one-fourth the amount that someone middle aged or older should consume daily.

KFC has launched non-fried chicken before, but each prior initiative flopped. In the early 1990s, it introduced a rotisserie-style chicken that fell by the wayside due to equipment problems and long cooking times. A tender roast product followed but lasted only a couple of years.

Eaton said the difference this time is partly in the cooking process. Chicken is cooked on grill racks in custom-designed ovens in a patented process that takes about 20 minutes per batch.

The grilled chicken rollout is offered only at KFC stores in the United States, though Eaton said the product may eventually expand to international markets.

KFC had 5,166 U.S. stores at the end of 2008. All but about 100 franchise stores are selling grilled chicken, the company said. Some stores couldn't fit the oven into their kitchens, and in other cases franchisees opted not to sell the product, the company said.

KFC won't say how much the ovens cost, but Eaton said the company helped franchisees with the expense and would have made such an investment only if it was "incredibly confident about the outcome."

Larry Miller, a restaurant analyst with RBC Capital Markets, said expanding beyond its fried staple offers a huge opportunity for KFC. But perceptions won't be easy to change.

"They still have the credibility barrier to overcome," Miller said. While achievable, "it's tough when your name has 'fried' in the middle."

In late 2008, Yum Brands Chairman and CEO David C. Novak said KFC had been a drag on the company's U.S. performance while sister brands Pizza Hut and Taco Bell had a good year.

Miller said this week that Yum would hit "the trifecta" if it turns around KFC's U.S. sales.

Mike Ash, who ate a grilled chicken lunch at the Louisville KFC, remembered the rotisserie chicken as "mushy and bland." He liked the new grilled offering, having picked it to the bone.

He said he might be more apt to pick up a bucket of chicken on his way home, though he predicted he might still "fall off the wagon every now and then" and choose the fried option.

The grilled chicken will cost the same as Original Recipe chicken. KFC will offer customers a free piece of grilled chicken on April 27.

But the push for grilled chicken doesn't mean KFC is abandoning its roots, Eaton said. The chain is testing new fried chicken products, and remains committed to its core product.

"It would be incredibly arrogant to think we could create a product that could supersede Original Recipe chicken," Eaton said. "But this product is easily good enough to sit alongside it."

___

AP Business Writer Lauren Shepherd in New York contributed to this report.

 

 

Tom DuFore

Executive Vice President

Francorp, Inc.

The Franchising Leader.

www.francorp.com / www.francorpconnect.com

BLOG: www.francorp1.com

PH: 800.372.6244 / 708.481.2900

CELL: 708.606.7264

FAX: 708.481.5885

 

The Scariest Monster of All Sues for Trademark Infringement

The Scariest Monster of All Sues for Trademark Infringement
Fancy Audio-Cable Outfit Defends Its Brands; A Mini Golf Course Fights Back
Article
Comments (62)
more in US »
By STEVE STECKLOW

When Christina and Patrick Vitagliano dreamed up their Monster Mini Golf franchises -- 18-hole, indoor putting greens straddled by glow-in-the-dark statues of ghouls and gargoyles -- they never imagined that a California maker of high-end audio cables would object.
But Monster Cable Products Inc., which holds more than 70 trademarks on the word monster, challenged the Vitaglianos' trademark applications. It filed a federal lawsuit against their company in California and demanded the Rhode Island couple surrender the name and pay at least $80,000 for the right to use it.
"It really seemed absurd," says Ms. Vitagliano.
Video
Watch the YouTube video of Monster Cable's Mr. Lee and Monster Mini Golf's Ms. Vitagliano.
The legal actions were nothing new for Monster Cable, which was granted its first "Monster" trademark in 1980. Since then, the company has fought more monsters than Godzilla did.
Over the years, it has gone after purveyors of monster-branded auto transmissions, slot machines, glue, carpet-cleaning machines and an energy drink, as well as a woman who sells "Junk Food Monster" kids' T-shirts that promote good eating habits. It sued Monster.com over the job-hunting Web site's name and Walt Disney Co. over products tied to the film "Monsters Inc." It opposed the Boston Red Sox trademark applications for seats and hot dogs named for the Green Monster, the legendary left-field wall in Fenway Park. All in all, Monster Cable says it has fought about 190 monster battles at the U.S. Patent and Trademark Office and filed around 30 monster lawsuits in federal courts.
Along the way, it has attracted its share of ire from those who say it is overreaching and trying to corner the market on a word, not a brand. "If Monster Cable prevails, the Gila monster will become just another lizard" and "the monster under your bed will have to become an ogre," wrote Michael Meadors of tabberone.com, a Web site that sells fabrics and also keeps tabs on trademark issues.
"Monster Cable's practice of suing anyone using the word 'Monster' in their name is nothing short of playground bullying," says Robert Holloway, a computer contractor in Iowa who set up a Web site called monstercablebully.com to support the Vitaglianos.
Monster Cable says its trademark challenges are a matter of necessity. "If you don't defend your mark, and people use [it], it runs the risk of becoming generic and then you lose the mark," says Noel Lee, founder of the Brisbane, Calif., company, whose corporate title is "Head Monster." Mr. Lee says the company sells many other monster-branded products besides cables that it has to protect, including music, clothing and candy mints.
To a legal novice, it may seem odd that a common word like monster can be trademarked at all. But in the complex and sometimes murky world of trademark law, common words can be registered, provided they are associated with specific classes of goods. Apple Inc., for example, holds trademarks for the word apple when it's related to computer products, not fruit.
Sometimes, trademarks can obtain a higher order of protection, known as "famous marks." This category is supposed to be reserved for words that have become so entwined with a product and a company -- like the word visa and Visa Inc.'s credit card -- that the trademark owner can argue that no other product may use the word in its name.
David Tognotti, Monster Cable's general manager and an attorney, says the company considers "Monster" a famous mark -- on a par with Barbie dolls or Camel cigarettes. "We're protecting our mark as if it's a famous mark," he said in an interview in Monster Cable's headquarters, where the walls are lined with framed copies of the company's trademarks and patents.
Mr. Tognotti cited a chapter on famous marks in the law book "McCarthy on Trademarks and Unfair Competition" by J. Thomas McCarthy, a noted expert in the field.
But in an interview, Prof. McCarthy expressed doubt that Monster Cable possesses a famous mark. He said such determinations are made by courts. Mr. Tognotti acknowledges Monster Cable hasn't obtained such a court ruling.
Most of the company's lawsuits have been settled privately under confidential terms. In some instances -- such as the case of the Discovery Channel's reality auto show, Monster Garage -- companies have surrendered their trademarks to Monster Cable, which sometimes licenses them back for a fee. Discovery Channel declined to comment. The show is no longer in production.
In its federal civil lawsuit against Monster.com, Mr. Tognotti says owner Monster Worldwide Inc. agreed to pay Monster Cable's legal fees and post a clickable link to its Web site on Monster.com that says, "Looking for Monster Cable?" A spokesman for Monster Worldwide acknowledged the lawsuit was resolved but wouldn't discuss details.
A Disney spokesman says the company settled the lawsuit over Monster Inc.-related products without paying any compensation. Mr. Tognotti of Monster Cable says his company dropped the lawsuit after determining there was no trademark infringement.
He says Monster Cable has no plans to pursue the new DreamWorks Animation film, "Monsters vs Aliens." Says Mr. Tognotti: "We do not have a concern if a company is using the word 'monster' in a purely descriptive sense to describe actual monsters."
As for the Red Sox, Mr. Tognotti says the team agreed to withdraw or modify some of its trademark registrations for Green Monster-related products after Monster Cable argued there was "confusion in the marketplace." At the time, San Francisco's Candlestick Park was called Monster Park because Monster Cable had bought the naming rights. A Red Sox attorney referred questions to Major League Baseball, where a spokesman said the team had agreed with Monster Cable over a "procedural matter" but declined to elaborate.
Occasionally, Monster Cable has retreated. After it sued MonsterVintage LLC, an online used-clothing store based in Oregon, owner Victor Petrucci says he drove a rented truck to Monster Cable's headquarters and around San Francisco for two weeks. It was emblazoned with a giant sign that read in part, "Monster Cable S-." Monster Cable dropped the lawsuit.
"We have to balance what we do legally to protect our mark with that of public opinion," says Mr. Lee, adding, "We're very sensitive to our reputation."
The Vitaglianos say their monstrous fight erupted in 2006, two years after the couple opened their first mini-golf course. "It never occurred to me that a cable company might not like it," she says. Adds her husband, "We just all assumed it was going to go away."
Their attorney, Arthur L. Pressman, says he suggested they consider changing the name to Scary Mary's Monster Mini Golf to play down the word monster. But the couple refused to back down. By late last year, with their legal bills approaching $100,000, they agreed to try mediation. But after 10 hours, "we got really angry and sort of stormed away," says Ms. Vitagliano.
The couple then launched an Internet-based guerrilla campaign to generate public support. "We blogged nonstop, around the clock, for weeks, and enlisted much of our staff to do the same," she says. The couple offered to sell symbolic slices of "Justice" for $1 on eBay and raised about $4,400 for their legal defense. Two days before Christmas, she sent Mr. Lee a DVD of the film, "How the Grinch Stole Christmas."
Monster Cable's Mr. Lee says the company also received at least 200 angry consumer complaints. After speaking with the Vitaglianos, he decided to drop the lawsuit, withdraw his company's opposition to Monster Mini Golf's trademark applications and pay up to $200,000 of their legal expenses.

Francorp - Franchise Business Planning

Franchise Business Plans

Franchising a company is a big decision and a major change in direction for most companies. The good franchise systems are ones that plan appropriately and put together the pieces before they get into this game. As the saying goes, you either “when you fail to plan you are planning to fail”. The same holds true for franchising. Good franchise endeavors have great franchise business plans. So what constitutes a good franchise business plan?
The key ingredients include several pieces, like any good recipe, if some of the ingredients are left out the final product just won’t taste right, which in franchise business planning that means big problems. The franchise business plan sets the stage for a franchise expansion program. It literally acts as the foundation upon which the house will be built. Everything in the franchise program should have uniformity and continuity with what is defined and determined in the franchise business plan.
The franchise business plan should begin with goals and objectives. What is the purpose of franchising? What is the goal for the company and where do you plan on being in five years? These goals will set the standards for the plan and identify how you intend to get there. You then should establish the buyer profile, who will be purchasing these franchises and opening up locations of your operation? The better franchise plans have more specific descriptions. Bad example: “middle aged person with income around $100k”. Good example: Female, ages 35-45, experience with children preferable age ranges between 5-12 years old, married, existing capital of $100k, sales ability, work ethic, married at least 5 years….etc.”. Get specific in the franchise business plan, that means you are honing in on your targets.
We then need to define the business issues of the franchise model. What will a territory look like for the franchisees? We don’t want to overcrowd markets and we also don’t want to give away business. Franchising is about saturation, take advantage of all market opportunities. After the franchisees have been established it will be extremely critical to have an ongoing support program for the people who have committed their futures to this franchise organization. Good franchise business plans clearly identify the training programs, processes and materials that will be used to get franchisees up and running and then to keep them happy and successful once in the system. With this comes hiring management and support staff. The franchise business plan should clearly identify who, when and what role they will fill in the franchise organization. The type of business will dictate how many people and at what times in the franchise expansion they should be brought on board.
The franchise business plan should also go into specifics regarding the franchise fee structure. What will the franchise fee be for this model? What will the royalty percentage be……and why? Will there be an advertising budget set to build the brand and if so what is the buy in for the franchisee to be a part of that co-op ad fund? If there are products included in the franchise system that the franchisor would like to sell through franchisees what is the distribution structure for delivering and supporting that part of the franchise system? All of this should be clearly outlined in the franchise business plan.
In the end, a complete set of pro-formas and financials should be established to define the ROI for both the franchisee and the franchisor. This can be used as an investment tool, to raise capital and most importantly as a road map for running and operating the franchise operation as the system grows.

Toxic Asset Plan

Treasury to roll out toxic asset plan
by Politico.com
Saturday March 21, 2009, 12:59 AM

Treasury Secretary Tim Geithner will announce a plan early next week to relieve failing banks of their toxic assets by attracting back private investors rather than have the government buy up all the risk, according to officials familiar with the plan. Private investors, including hedge funds, will be able to bid on the assets using a pool of capital from the investors and the government, with taxpayers sharing in profits or losses. The plan uses up to $100 billion of taxpayer funds to leverage up to $1 trillion in private capital, the officials said. “We’re creating a market, not bailing out banks,” said an official briefed on the plan. “Because we’re creating a market, we’re letting the private sector set the price, which will likely be below purchase price but above what government would get for them. “ Here is how it would work: —A Treasury/Federal Reserve /FDIC Purchase Facility will provide funding to purchase real estate-related legacy assets. —Public-Private Capital will co-invest, initially at up to $500 billion, expanding to $1 trillion over time. —Private Sector Pricing: Private sector buyers determine price for currently troubled and previously illiquid assets. The government estimates bank balance sheets that currently have at least $2 trillion in “legacy” (toxic) assets that originated in 2005 and 2006. “All of this is based on private investment – that’s what is so innovative about it,” the official said. “We are using the private sector to help us stabilize the system, which saves taxpayer dollars. Government has never done this before. Taxpayers are protected because they share in all the profit, and investors share in all the loss. So there is a huge incentive to make good, careful investments.” Treasury has taken action to deal with three big problems fueling the economic meltdown—falling home prices, frozen credit markets, lack of confidence and capital in the banks—and now is taking on toxic assets.
The officials explained the problem the plan is aimed at correcting: The bursting of the housing bubble caused losses for financial institutions on residential mortgages and related securities. Those losses resulted in the need to reduce risk and leverage. As a result, institutions were forced to sell, causing further price declines. This fueled further deleveraging, creating a bad cycle. This has reduced banks' ability to lend—because these loans are stuck on bank balances sheets because of a large gap between banks' carrying values and market prices. This makes it difficult for banks to access the private markets to access new capital. And, since there's no secondary market for these assets, they've become frozen.

Francorp Client Brake King

Despite the recession, Brake King aims to expand
By Ashley Kelly 247-4778
March 19, 2009

-->NEWPORT NEWS — Since Brake King opened in 1966, the company has gone from having two auto bays to 21.And customer demand continues to grow despite the recession. Now the Hutchisons are expanding the family business by franchising."We knew we had to expand for our customers," said company vice president Bubba Hutchison, who said Brake King currently serves more than 35,000 people. "In the past month we've had customers come from Richmond, Woodbridge and Dale City (near Manassas). It's almost like we felt obligated to expand."The company has received about 60 inquiries since January from people considering buying a store, Hutchison said. Current plans call for the company to license four franchises, located between Richmond and the Outer Banks, by the end of the year.
Each franchise is being sold for $50,000. Brake King will receive 5 percent of the gross sales of each store. Hutchison said the franchises will range from 4,000 to 10,000 square feet. The Jefferson Avenue shop is 15,000 square feet.The company originally wanted to award eight franchises by the end of this year, but the recession caused Brake King to scale the number down to four. In five years the company plans to have 50 stores operating, Hutchison said.The strain that the economy has put on banks has made it difficult for people to secure loans or get credit, a challenge that Brake King faces while trying to sell franchises."We're in the worst recession in years. There is such volatility in the market that a lot of people have the money, but they're just sitting on it." he said.Brake King expanding in the recession may seem risky to some, but is not uncommon."It's either expand or perish, that's the American way," said Patrick Callaway, president of Francorp, a franchise consulting company based in Illinois."There are businesses that are operating in spite of this recession. After all, we all have cars and need to replace our brakes, recession or no recession."Hutchison did not want to grow the family business by opening other shops locally and hiring managers."We realized we wanted owners, not managers," he said. "We wanted people that have real skin in the game. People who are vested in the business."Hutchison said it's also about putting the family business into the right hands."Just because someone has the money doesn't mean they have a franchise .... The challenge is finding the right people, not just people that have the capital."

Francorp Client Red Arrow Diner

Red Arrow may launch franchises
By DAN TUOHYNew Hampshire Union Leader Monday, Mar. 16, 2009

MANCHESTER – The Adam Sandler Burger may be coming to a diner near you.
The locally famous Red Arrow Diner will roll out franchising opportunities across New England later this year, said Carol Sheehan, who come September will have owned the Queen City landmark eatery for 22 years.
The burger named for Manchester's favorite comedian son -- lettuce, tomato, mayo and raw onion -- has but a cameo role in a menu packed with great comfort foods.
Meatloaf on sourdough. Hash browns with grilled onions. A "Sloppy Moe" with macaroni and cheese. Not to forget a tempting dessert lineup that features cream pies, eclairs and homemade "twinkies."
All of it -- breakfast, lunch and dinner -- available 24 hours a day.
Franchising is a matter of the restaurant's reputation preceding itself. Sheehan, who is looking to hire a general manager to keep up with this year's growth, said she cannot go anywhere these days without Red Arrow recognition.
"I can be in the Caribbean and somebody knows The Red Arrow," Sheehan said.
Sheehan will retain ownership of the diner on Lowell Street in Manchester, as well as The Red Arrow Diner she opened last year in Union Square in Milford.
The Red Arrow brand is powerful. It has won numerous awards in recent years, including being rated in the top 10 of diners in the country by USA Today. In a 2007 visit by Guy Fieri of the "Diners, Drive-ins and Dives" show on the Food Network, the host raved about their American Chop Suey.
The diner draw
Diners have long been popular across the state, from MaryAnn's Diner in Derry to The Common Man's family of restaurants, which include the Airport Diner in Manchester and the Tilt'n Diner in Tilton.
During every New Hampshire presidential primary campaign, candidates saddle up to diner counters to meet voters and grab a bite. Red Arrow visitors have included President Obama, Hillary Rodham Clinton, Mitt Romney, Ron Paul and Rudy Giuliani. Celebrity diners have included musicians and actors, such as Central High graduate Sandler.

Red Arrow Diner owner Carol Sheehan and franchise manager Kim Capen, in the Lowell Street eatery last week. (MARK BOLTON)
In a way, multiple locations are a tip of the hat to the past.
There were five Red Arrow locations around the city at one point. David Lamontagne opened the original Red Arrow Diner in Manchester in 1922.
Kim Capen, Sheehan's franchising manager, has worked to ensure recipes are trademark protected and that a franchisee has a clear understanding of the diner's operating systems.
"From recipes to product descriptions to portions," Capen said, "a lot of that needs to be documented in a format to duplicate what you are doing."
Sheehan and Capen are committed to matching the right owner-operator with the right location. The right location, for example, may feature high vehicle traffic counts or pedestrian traffic counts, and proximity to businesses, colleges or hospitals.
Red Arrow officials declined to discuss the cost of a Red Arrow franchise or any financial details regarding potential franchise arrangements.
The demographics have to be just so for a 24-hour diner, they said.
"There are challenges whenever you open a new restaurant," said Capen.
Opening The Red Arrow Diner in Milford last year proved instrumental to their franchising planning.
"It was a great learning experience," Sheehan said. "We did not expect that as soon as we opened the door the place would be full and there was a line out the door."
The Milford diner, like the original diner in Manchester, is still busy. Sheehan said she has 38 employees in Manchester and 46 in Milford.
It remains a growth industry, Capen said. "Business increases every year," he said.
The success is indicative of the recession-proof operating model, according to Capen. Consumer lifestyles are also at play.
"People eat out a lot," he said. "Sometimes out of necessity."
Good and affordable comfort food remains the draw, said Sheehan. Her favorite? She could not name just one. But with a smile, she said, it is tough to beat a plate of meatloaf with gravy and mashed potatoes.

Franchise Information

Franchise Information
Franchising is one of the most exciting and explosive growth industries in the world today. More and more industries have come to embrace and utilize franchising as a means to expand their companies. Each business day a new franchise operation opens in the US every 8 minutes!
The traditional franchise offering consists of a fixed location business that typically is related to food. As the amount of franchise information and the value of franchising has spread, other businesses have maximized their growth potential through franchising. For example, more companies in the past year have franchised who do not have a fixed location business. The franchise model is territory based and the franchisee many times works from their home. The advantages of franchising remain the same, vested owner operator, leverages system, brand equity, economies of scale, they all still hold true regardless of the model.
Franchise information is available everywhere today, it is rare that any American goes through a regular day without shopping or stepping foot in a franchised business, they are everywhere! The franchise industry has become a part of our everyday lives, and now that more and more of the world is becoming globalized, franchising is spreading to new countries and new areas of the globe.
More and more venues have become available for people, buyers, investors and franchise developers to access franchise information. The Internet clearly is the weapon of choice. Over 70% of franchise buyers access their initial searches for franchise information over the web. Trade Shows can also be extremely effective ways to discover and evaluate franchisors on the market. There are also several industry guides that provide information on the market, industry growth and specific franchise companies.
When franchisees commit to a franchise, they will want as many details as possible before committing their future to a new business endeavor. That being said, providing franchise information to a prospective franchisee is a delicate process in that the presentation must be professional and honest, it must clearly paint the picture of the business, the potential for the industry and the franchisees responsibilities once they open the operation. There are guidelines and rules that dictate how franchise information can be presented and in what format. The best franchise systems in the world are the ones that are the most forthcoming and disclose the facts up front.

www.francorp.com

Great Clips Opens New Franchises in Texas

Great Clips Opens Franchised Salon in Live Oak, Texas
March 16, 2009 - Rob Goggins, vice president of franchise development for Great Clips, Inc., announced the Grand Opening of the company’s newest franchised salon in the Gateway Plaza Shopping Center in Bexar County, TX.
“This manager-run salon sits in a high-trafficked shopping center on the corner of Highway 35 and Loop 1604,” said Goggins. “This thriving regional mall in the northeast quadrant of San Antonio is anchored by Target, Home Depot, Kohl’s and Best Buy. The demographics of the area are well-suited for our value-priced, no appointment necessary service.”
For a complete list of salon locations, go to http://www.greatclipsfranchise.com.
“Our franchise owners open to a $55-billion hair-care industry. With more than $700 million in total system-wide sales, Great Clips is the industry leader,” said Goggins. “We’re in a growing market. People get their hair cut every four to five weeks, and our same-store sales have increased consistently for several years.”
About Great Clips:
Great Clips is North America’s largest hair-care brand with more than 2,700 salons conveniently located in high-visibility strip malls in nearly 140 markets. Great Clips consistently ranks among Entrepreneur magazine’s Franchise 500Ò. Entrepreneur also ranks Great Clips as one of their Fastest Growing and one of America’s Top Global Franchises for 2009. For more information, go to http://www.greatclipsfranchise.com. Great Clips, Inc., 7700 France Avenue S., Suite 425, Minneapolis, Minnesota 55435. Contact Rob Goggins, vice president of franchise development, office (952) 746-6467.

TES Franchise Show in Chicago

Explore Business Ownership at the Franchise Show Chicago
March 13, 2009 - Chicago, Ill – Over 60 of the nation’s fastest growing franchises will be participating in the Franchise Show Chicago for aspiring business owners to learn what it takes to be successful in a franchise concept. The event is free to the community and will be held on Friday, March 27 from 10:00 am to 6:00 pm and Saturday, March 28 from 9:00 am to 3:00 pm at The UIC Forum, 725 W. Roosevelt Rd, Chicago.
The event is hosted by The Entrepreneur’s Source (TES), the nation's premiere source for self-employment options, franchising information, education and training. Co-sponsors of Franchise Show Chicago are National City Bank, Illinois Service Bank, The Women's Business Development Center and the Illinois Small Business Development Center. All sponsors will have representatives’ on-hand to answer questions about business ownership.
“Franchising is one of the few business sectors that are actually growing in this challenging economy,” says Steve Rosenkrantz, regional developer for TES. “Our Franchise Show is an opportunity for people to gain some real insight on the many business options available,” he added.
Franchise Show Chicago will offer opportunities to speak one-on-one with franchise representatives and hear from business resource partners addressing funding, legal, and other support concerns on the minds of aspiring business owners. TES business coaches will be available to answer questions about franchise business ownership and to explain the ‘discovery process’ they take aspiring entrepreneurs through to ensure they find the right business investment for their lifestyle goals, needs and expectations.
As a former senior executive in the corporate world, Tom Anderson of Inverness, Illinois points to the 2008 Franchise Show Chicago as the launching pad for his new franchise as a regional developer for AdviCoach, a business coaching firm. “The quality of the showcase and the impressive TES business coaching ‘discovery process’ led me to the business of my dreams,” said Tom.
Attendees will also have the opportunity to participate in interactive workshops covering many areas of interest for aspiring entrepreneurs:
• How to Find the Right Business for You
• Franchisee Panel – Learn From Their Experience
• Keys to a Successful Start-up in Recessionary Times
• Financing Your Business
On Friday, WBBM NewsRadio 780 will be broadcasting live from Franchise Show Chicago with hosts Kris Kridel and Sherman Kaplan with two hours of news and the WBBM Noon Business Hour. People who pre-register for the Show online before March 27th will be eligible for an Apple Vacation Getaway to Riviera Maya Mexico.
Franchise Show Chicago is FREE to the community. To register and for more information, please go visit www.FranchiseShowChicago.com, or contact Steve Rosenkrantz at esource@valinet.com or 888-264-6667.
View Company Website: http://www.theesource.com

LPCW Offerring Franchises!

A Franchise that Celebrates Children and the Arts!

Filling the Gap
Early exposure to dance and theatre can have lasting benefits, including acquiring social and physical skills that will help children throughout their lives. Yet, dance professional Daune Pitman noticed two disturbing trends in dance classes for young children: either the little ones were being taught strict ballet, which was beyond their physical capabilities, or the classes were treated as playtime.
Seeking to establish a meaningful program, Daune developed Little People’s Creative Workshop (LPCW). LPCW classes are age-appropriate and taught by trained professionals. They are largely held in daycare centers and preschools, which puts them within reach of children who may not otherwise be able to take them.
Established in 1991, Little People’s Creative Workshop is now the largest organization teaching dance to children in the U.S. We’re augmenting our steady growth with expansion, via franchising. Our turnkey franchise program provides all you need to establish and grow a home-based business with multiple growth avenues!