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
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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.

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.

How to Franchise

The Rules: Restrictive CovenantsThe success of most franchises is based on the operating systems, methods, and products produced. For this reason, franchisors must protect their proprietary information and trade marks. In order to do this, they establish restrictive covenants for their franchisees. These covenants govern the things a franchisee can do.
For example, one restrictive covenant may state that the franchisee cannot operate another similar business that would compete with the franchised business during the term of the franchise agreement. These are called in-term non-competition covenants. There may also be post-term non-competition covenants that prohibit the franchisee from operating a similar business even after the terms of the franchise have expired. Each state, however, has its own laws regarding the enforcement of non-competition covenants. Often, in-term covenants can be more readily enforced than post-term covenants.

Francorp - How to Market a Franchise

How to Market a Franchise:

The perpetual question on every franchisor's mind today is how do I keep generating good quality leads for franchise sales in this economy? When the going gets tough, the franchisor needs to get creative. The great thing about franchise marketing is that it is very targeted and specific. When was the last time you saw a Super Bowl Ad marketing for new franchisees? It's just not that likely. The reason is simple, the consumer advertising we see every day is expensive because of the reach and coverage. It is worthwhile for a company to advertise for car insurance when almost anyone who sees the TV commercial could be a potential client. That is not the case when advertising for a franchisee, the franchisee is a clearly defined candidate. The demographics have hopefully been defined ahead of time, the areas of interest are predetermined, the capital requirements and all other attributes are clearly defined. Thus, the advertising is much more focused and generally speaking less expensive.

The different avenues that franchisors use for franchise marketing run the gambit. The Internet of course is the most widely used medium, about 74% of all franchise leads today come from the web. Print Media can be effective based on the readership and specificity of a publication. Direct Mailings can work in some instances as well as Email Marketing Campaigns. Tradeshows are the most showy and grand of the marketing mediums for franchise lead generation and can also be a wonderful way to market a franchise. When it comes down to it there are a lot of avenues...but how does a franchisor know where to spend their ad budget? How do they determine where they will get the most "bang for their buck"? There are several keys that my firm has lived by when it comes to franchise marketing, if these key issues are clearly and completely defined and addressed, the franchise marketing process can be a lot of fun and generate great leads. If these key points are ignored or only briefly addressed, the franchise marketing process can drive a franchisor mad!

1. Define your Buyer. Have you ever heard the phrase, "Ready, Fire, Aim!" It sounds funny, that's because it doesn't make sense! The first goal of the franchise marketing effort should be to clearly define the buyer. I don't mean "salesperson with a desire to succeed".....I mean, "Female, ages 28-37, Midwest and Southeastern US, Household income between $75k-100k, work experience with kitchen products, married, preferably with children." We want specifics, down to every last detail. Once we completely figure out who this franchisee is, then we can more effectively plan our marketing.

2. Establish franchise sales goals. Clearly identify the marketing approach. Start first with how many franchises you plan on selling into the system within the next 6 months and year. Don't plan much further than that, because beyond that point you will most likely have to redo this plan based on then current circumstances. Once we have the goals set, we then can back out of that equation. Typically we are looking at around 1000 qualified leads for every 50-100 meetings with prospective franchisees. From those meetings the closing percentage is typically around 5%. So if we determine that we would like 5 franchises to open during the first 12 months of rolling out the franchise, we need to plan on generating 1000 leads during those first 12 months. The beauty of franchise marketing is that it is very measureable and much easier to track then consumer marketing...we can actually tell how effective it is!

3. Determine the advertising mediums. Different buyers can be reached via different advertising avenues. In some franchises all of the marketing can be done over the Internet, in others the marketing has to be done through direct mailers to specified candidates....like doctors in the case of a rapid care facility. Outline the pros and cons of each medium and establish the most effective based on the cost. This is where the importance of the defined franchise buyer comes through.

4. Establish the Budget. The average cost per lead on the Internet is around $30, the average cost from a tradeshow can be as much as $200 when factoring in travel, time, booth set up and other costs. So take into account some kind of an average cost based on the advertising venues you have determined will be most effective at reaching the target audience. For those thousand leads you may need $10,000 in advertising dollars for that first year to hit the 5 franchises sold.

5. Create the Collateral materials. A Franchise is a big investment for most franchisees, in fact for many of the buyers it is literally everything they have. The franchise offering should look extremely professional and really has to be buttoned up. This means that the brochure should be top quality, there should be a sales video to present to the buyer what the business entails and helps create excitement in the franchise. Pamphlets and handouts should be put together. All of this built around creating value in the business offering, not the product or service that the business offers. The overall theme should be "Mr. or Mrs. Franchisee, you can make a great living doing this, and have fun while you're at it." Franchise buyers fall in love with franchise concepts because they envision themselves running a business doing what the franchisor does. The collateral materials should be the vehicle that sparks that interest in the franchisee's mind.

6. Put together a comprehensive application form. There should be two forms in the end...one that the franchisee fills out initially to give the franchisor initial information from which the franchisor can make a decision if they want to follow up with the prospect any further. This should be basic information that the franchisor should know up front as soon as possible in the sales process, like how much capital do you have to invest! The second form will go into much more detail and would be sent with the brochure and information packet. This form should go into work history and personal background, so that the franchisor can really get to know who this prospect is and what they are all about.

7. Execution. Franchise marketing is like all advertising and marketing, it isn't a science, although it is much closer to one than consumer marketing, it still varies a great deal in its effectiveness and results. Some times, just when things are getting to the point where a franchisor is thinking they should throw in the towel and call it quits is when they really should do some MORE advertising! It takes consistency. The franchise buyers can be fickle, lots of time it has nothing to do with the franchise offering or the marketing, but rather with the franchisees life and circumstances. They do come back and look again, we want to be there when that prospect makes the buying decision.

8. Excellent Follow Up. Great franchisors have wonderful salesmanship in the sales process. Leads should be followed up with immediately upon contact. Phone calls are important and there should be high frequency between calls until a contact is made. The franchise sales process isn't rocket science, it just takes hard work and good planning.

Christopher Conner
Vice President Francorp, Inc.
http://www.francorp.com
Article Source: http://EzineArticles.com/?expert=Christopher_Conner

Own Your Own Business Seminar - Atlanta

"Own Your Own Business" SEMINAR
________________________________________________

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

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

New Business Development in Our Current Economy

GSU center aids small businesses
February 3, 2009
BY MIKE NOLAN Staff writer
When Colleen Simon's out-of-work husband suggested to her they take a gamble and open their own restaurant, her initial reaction was less than supportive.
"I told him he was out of his mind," Simon said as she sat inside Vito & Nick's II in Tinley Park. The couple opened the pizza parlor in April.

Co-owner Colleen Simon sits at a table at her Vito & Nick's restaurant in Tinley Park. She and her husband Rick opened the Italian restaurant in April.(Art Vassy/SouthtownStar)

With the country in a recession, wouldn't anybody be out of their mind to start a new business?
Actually, it's the fragile condition of the economy that has lots of Southlanders coming to Bob Rakstang and asking for advice on starting their own business.
The assistant director of CenterPoint for Entrepreneurs - the small business development center at Governors State University - Rakstang finds himself lately counseling folks looking to chart a new future for themselves. Some are worried about their job security, while others would rather strike out on their own than be beholden to a boss.
"There have been quite a number of people I've counseled who have a job but are concerned," he said. "A lot of people are thinking a little further ahead than before."
Some, like Dan Vaughan, are chucking their current job in favor of a completely different tack. The Orland Park resident abandoned a career as a civil litigation attorney, and next month he will open a franchised Massage Envy salon in Bloomingdale.
He signed a lease in September, just weeks before the stock market meltdown.
"I had been a bit apprehensive about the economy even before that," Vaughan said.
He knew of the chain from his sister, who'd worked as a therapist at a Massage Envy shop in Arizona. Vaughan said he left law because he "wanted to become my own boss."
To open Vito & Nick's II, Simon said she left a career in health care. She worked as an occupational therapist at Ingalls Hospital and also provided in-home health care.
She said her husband, Rick, an electrician, hadn't been able to find work, and what she earned wasn't enough to support them and their two young children.
"The situation we were in forced us to make a move," Simon said. "Plus, there was always something in him (Rick) that he wanted to have his own restaurant."
Simon said she met with Rakstang last year to get his opinion on ideas she had for the business.
"Bob's a good listener," she said. "He helps you sort out your thoughts."
He's also feeling the pinch in the tough economy. While demand for CenterPoint's services, which are free, has increased, funding to run the center hasn't kept pace.
"We have to be more efficient with the delivery of our services," Rakstang said.
That might include stopping by a client's business on his way home, or doing more counseling in the field. CenterPoint recently began offering counseling to Tinley Park Chamber of Commerce members.
"Right now it's every other Wednesday (at the chamber office), but we'll probably start doing it weekly."
Simon said she and her husband "didn't even consider" the state of the economy when they opened and that business "is progressing, despite the recession."
"Everybody loves pizza," Simon said. "It's a staple of the American diet."

Gamin' Ride! Franchise Opportunity

Gamin' Ride is a mobile video-game theater.  Xbox, PlayStation, Wii on each TV.  Portable arcade for parties! It's climate controlled with comfortable chairs for 16 players. They also offer packages for food and treats for the 2 hour rentals for birthdays, bachelor parties, etc. 

Their new trucks, which are being offered to their new franchisees, also have two TVs on the outside for parents to watch while the kids are having fun inside.  Francorp set up their franchising and Gamin' Ride has more information about purchasing a franchise at www.GaminRide.com.

Gamin' Ride makes for a great low-cost investment compared to other start-up franchises.

Watch the full video here: http://blip.tv/file/1546951

In Home Care Demand Growing

Piece of Mind The demand for in-home care is growing, and clients and their families say it is a great way for senior citizens to stay in their homes.
By JORDAN RAUBOLT of the Tribune’s staff
Published Saturday, October 4, 2008

The demand for in-home care is growing, and clients and their families say it is a great way for senior citizens to stay in their homes and keep their independence.
Creola Jones loves her home.
The 93-year-old retired schoolteacher has lived with her daughter, Jackie Jones, in the split-level off of North Garth Avenue for more than 27 years. Because Creola Jones’ mobility is limited by severe arthritis and several knee surgeries, she spends most of her days enjoying the scene in her backyard from her perch in the living room, which overlooks woods and a small stream that host birds and other wildlife.
Jones said the routine has helped her make it to her 93rd year.
Don Shrubshell photos
Leanna Clayton, a caregiver for Home Instead Senior Care, gives client Creola Jones a hug at the end of the day. Below, Clayton, right, waters flowers for Jones. “I call them my daughter’s peace of mind,” Jones said of her caregivers.
"It’s very peaceful here," she said. "I don’t know whether I could have made it without the birds."
Jones also has had some help from Home Instead Senior Care of Columbia. Jackie Jones hired Home Instead in 2006 to provide her mother with companionship and assistance during the times Jackie Jones’ job as vice chancellor of administrative services at the University of Missouri keeps her away from home.
Home Instead of Columbia, a franchised outlet of Omaha, Neb.-based Home Instead Inc., is one of several local businesses that provide nonmedical in-home-care services, such as companionship visits, grocery shopping, meal preparation, light housekeeping and appointment and errand transportation.
"There are times because of my work where I have to go out of town, and Home Instead will send someone to spend the night with her," Jackie Jones said. "You can count on them. I just know that I don’t have to worry."
Creola Jones said there are a handful of caregivers who come to her home five days a week. They help her up and down the stairs, assist with light house-cleaning and drive her to the doctor’s office and the grocery store - and provide good company.
"I love them all," she said. "I look upon them as friends, and they are my friends. I could call on any of them for help."
●
According to the U.S. Census Bureau, nearly one in five U.S. residents will be 65 or older by 2030. And that same age group is projected to reach 88.5 million in 2050, more than doubling from 38.7 million this year.
Don Shrubshell photo
Clayton puts away groceries for Jones. Clayton also cooks some meals for Jones.
Home Instead co-owner Debbie Critchfield said she has seen tremendous growth in the industry since 1998, when she and her husband, Greg, opened their business.
She said Home Instead franchises have expanded from around 130 U.S. locations in 1998 to an international franchise network of more than 800 today. And their business has grown from 18 to 75 employees and now serves anywhere from 60 to 80 elderly clients at any given time.
"It is something that I think is a huge new trend," Critchfield said. "This is a fairly new concept to be able to provide nonmedical, companion home care. ... A lot of people, they don’t need a nurse. It’s the stuff that all of us do every day, but when you’re in your 80s, 90s and 100s, it becomes more of a challenge."
“Handymen are a dime a dozen, but there’s no one who specializes toward the seniors. I’m someone that they’re familiar with and comfortable with.”
— Rod Perry,owner of Senior Hand
Mike Armstrong, fiscal administrative manager for the state Division of Senior and Disability Services, said in-home care is catching on because it’s less expensive than nursing home care. He said it costs about $32,000 to $35,000 per year for a person to receive nursing home care, whereas in-home care typically costs about $6,000 to $7,000 per year.
"It is fiscally more beneficial to keep somebody at home because it’s cheaper, and most individuals would prefer to stay at home if they have the option," Armstrong said.
Phil Melugin, co-owner of the Springfield-based in-home medical-care company Integrity Home Care, said the state has saved $1 billion over the past 12 years by funding in-home care. He said recent studies suggest that home medical care also results in a shorter recovery time for patients after surgery, injury or illness.
"They have their plants, their pets, and they’re able to nest in a setting that many of them have been in for 40 to 50 years," Melugin said. "That is an emotional connection that cannot be achieved in a nursing home facility."
For those who need constant monitoring for their medical needs, in-home care can provide much-needed relief for family members.
Deshai Richardson, 17, said caring for her great-great-aunt - 81-year-old Louise Ellis - over the past few years has taken a toll on her family. Ellis is bedridden and suffers from diabetes and high blood pressure.
"This is like a full-time job," Richardson said. "It’s worth it, though, because she’s done a lot for everybody, so we’re returning the favor."
Richardson said that in 2006 Ellis began receiving in-home nursing and housekeeping services from Integrity. Caregivers assist with bathing, bed changing, laundry, preparing meals and monitoring Ellis’ medications.
"If it wasn’t for the extra help, it would be harder to have our own personal time outside of helping her," Richardson said. "It’s hard, but Integrity makes it easier. We’ll do anything before we’d let her go to a nursing home."
●
According to the Senior Network of Columbia, there are more than 13 businesses in Boone County that provide in-home health, private duty nursing, light-duty and respite care. The network consists of local organizations, businesses and individuals interested in promoting senior services. It maintains a directory of local businesses and resources at its Web site, seniornetwork.missouri.org.
One of the newest entrants into the in-home-care market is Living Well Home Services.
Cindy Hansen and Terri Maples opened the business in May. The business, which has 15 caregivers, offers nonmedical care and catered meals for seniors and people with disabilities for $17 to $22 an hour.
Hansen said she developed an affinity for the elderly during the six years she spent working for the Columbia Parks and Recreation Department’s 50 Plus Program, and she saw a business opportunity in providing seniors with assistance.
"The companionship is so important because a lot of these people are living away from their families, and they need stimulation just like anyone else," she said.
When Laura England, 59, moved to suburban Denver this spring, she hired a medical in-home-care company to care for her 87-year-old mother. But she soon realized that her mother needed personal interaction more than a nurse, so she hired Living Well.
"It’s nice to have someone stop in for a couple of hours and visit," England said. "They spend time with her and take the time to help her do the things she enjoys."
Local businessman and auctioneer Rod Perry has filled a related niche.
He recently started a home-based business called Senior Hand to offer handyman services such as rearranging furniture, interior and exterior painting, replacing light bulbs, yard work and other light repairs. The business charges $30 per hour.
Perry said the idea for the business came from hearing his retired mother and her friends discuss the difficulties they had in finding a trustworthy and reliable workman to do various jobs around the house.
"Handymen are a dime a dozen, but there’s no one who specializes toward the seniors," he said, noting that he’s getting a lot of word-of-mouth business as customers refer him to friends. "I’m someone that they’re familiar with and comfortable with."
Creola Jones has her own handyman - or handywoman.
Leanna Clayton, 66, one of Jones’ regular caregivers, has developed a reputation for her handiness. A retired American Airlines accounting officer, Clayton has worked part time for Home Instead for the past two years.
Clayton said all of the caregivers develop close relationships with their clients and each provider develops a reputation for his or her style and set of skills.
"We get categorized," Clayton said, noting that Jones often says, "If we’ve got something mechanical, we’ll wait for Leanna."
Jones said she appreciates the companionship and help of the caregivers, for herself and her daughter.
"I call them my daughter’s peace of mind because that’s really what they are," Jones said.

Small Businesses on a Discount

Small Businesses on Discount
By ELIZABETH OLSON
Published: May 27, 2008
To all the usual reasons that small businesses are put up for sale — personal problems and personnel squabbles among them — add economic woes this year. But even as for-sale listings rise around the country, so is buyer interest.


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

In-Home Care Aides Find Demand For Services Is Booming

In-home care aides find demand for services is booming
11:24 AM CDT on Tuesday, September 2, 2008

By BOB MOOS / The Dallas Morning News bmoos@dallasnews.com
When Gertrude Hurd returned home from the hospital after a fall, she relied on in-home caregivers to fix her breakfast, remind her about her medications, tidy up her place and help with other household chores.
"I've graduated from a wheelchair to a walker in just a month," boasted Ms. Hurd, an 84-year-old Lewisville resident, who added that her Home Instead aides share the credit for her recovery.
Mildred Krueger has had the same aide from Right at Home for seven hours a day, four days a week since 2006. The two women have become good friends and enjoy baking and cooking together.
The 87-year-old Dallas resident likes having someone around her house who knows her well enough to anticipate her needs. "I'd be in a nursing home otherwise," she said.
As more seniors decide to "age in place" and remain out of nursing facilities, they're increasingly turning to professional in-home aides to help with everyday living.
Some 11,000 licensed home-care businesses served 7.6 million people last year, according to the American Association of Homes and Services for the Aging. And in-home aides are projected to be the second fastest-growing job over the next decade – the government forecasts a 50 percent increase, from 767,000 to 1.2 million jobs.
Though "mom and pop" businesses have dominated home care, entrepreneurs have propelled the recent growth by opening franchises to capitalize on the expected doubling of the older population by 2030.
The industry includes established brands such as Home Instead Senior Care and Comfort Keepers as well as up-and-comers like Always Best Care Senior Services and Right at Home.
"Nothing is recession-proof, but home-care franchises are faring well in the slow economy because the elderly need help in both good times and bad," said Alisa Harrison, a spokeswoman for the International Franchising Association.
The nonmedical in-home caregivers don't do physical therapy, as home health aides do. Rather, they concentrate on personal care, such as bathing, dressing or just keeping someone company.
Ms. Hurd's aides work for the Home Instead franchise, which Gianna Loftis opened in Denton early this year.
Ms. Loftis got into the field partly because of her experience in caring for her father after his cancer diagnosis. She had been a financial consultant and launched her business after visiting for months with Home Instead's executives and other franchisees and after training at the company offices in Omaha.
"I'm now putting in 70-hour workweeks," she said, "but I don't know of another business where your clients tell you that you're a gift from God."
Franchises
Franchises appeal to people who want to start their own businesses but also prefer to reduce their risk. Franchisees follow a proven business plan and can call on company staff for advice when problems pop up, Ms. Harrison said.
Home-care and other service-based franchises are particularly attractive to entrepreneurs because they don't require as much capital to open as brick-and-mortar franchises, such as restaurants.
Still, home-care franchise owners say initial franchise fees and other start-up expenses can amount to between $50,000 and $100,000.
Harley Cohen, a financial planner before buying a Right at Home franchise in Dallas in 2006, also recommends setting aside enough money to cover one to two years of personal expenses.
"Your first goal is to break even and meet your business expenses and employees' salaries," he said. "Only then do you think about paying yourself a salary. For me, it took 16 months to get a paycheck."
Marcus Gardner, who launched an Always Best Care franchise in June, keeps his overhead down by operating a "virtual office" with a Grapevine mailbox. He and his two employees work out of their homes – or on the road – and communicate by computer.
"My time is better spent visiting hospitals and senior-living communities and introducing the business," he said.
Michael Newman, president of Always Best Care, said the Web-based tool is popular with new franchisees because it lets them manage their business until they can lease office space,
The company charges franchisees a royalty fee of 5 percent of their gross revenue.
Mr. Gardner considers it a fair exchange for the training and support he receives from the home office in Sacramento, Calif.
"Shortly after I opened, a company trainer rode with me for a week and coached me on sales calls to hospitals, nursing homes and doctors' offices. It was quite an education," said Mr. Gardner, who has a civil engineering degree.
Growing industry
The two biggest challenges for any home-care franchisee are cultivating referral sources, such as case managers and social workers, and hiring and supervising caregivers, Mr. Cohen said. On any day, his agency has 40 to 60 aides on duty.
Licensed agencies routinely screen their job applicants, said Anita Bradberry, director of the Texas Association for Home Care, an industry group. Besides checking references, the agencies perform criminal background investigations.
"We also do a gut check," Mr. Cohen said. "If we can't see someone caring for one of our own family members, we don't hire. It's not worth the risk. A couple of bad apples can destroy your business."
Experts say competition among home-care agencies has become fierce in Dallas and other metropolitan areas. Dallas County has 322 licensed agencies, the second-highest concentration among Texas' most populous counties.
"The competition can be difficult for the franchisees, but it should be good for consumers because it will drive up quality and hold down prices," Ms. Bradberry said.
Most seniors pay out of pocket or use long-term care insurance to pay for in-home care, though some on lower incomes qualify for help from Medicaid. Private home care costs an average of $18 per hour nationwide and $17 in Dallas, according to a Genworth Financial survey of long-term care prices.
Ms. Bradberry sees no letup in the industry's steady growth.
"If everyone had three daughters who lived around the corner and checked in every day, I might think otherwise," she said, "But most of us aren't that fortunate."
WHAT TO ASK
The 10 questions to ask before hiring a home care agency:
1. How long have you been in business?
2. Is your agency licensed?
3. Are your caregivers employees, and are you withholding taxes for them?
4. Is your agency insured?
5. How do you screen your caregivers?
6. What are your fees?
7. How do you match a caregiver with a client?
8. If I'm unhappy with a caregiver, how will you find a replacement?
9. How do you monitor your caregivers?
10. Will you provide references I can call?
SOURCE: Dallas geriatric care manager Molly Shomer

The Flirty Girl Attends Francorp Seminar

The Flirty Girl is an innovative and amazingly creative site devoted to the wedding industry. Stacie Tamaki is a brilliant business person, here is what she had to say.


Visit The Flirty Guide WebsiteTFG HOME PAGE FLIRTY IDEAS THE TREASURE HUNT THE NITTY GRITTY

Thursday, August 28, 2008

Francorp - An Introduction to Franchising
Upon my return from Ohio I had one day off then was up at the crack of dawn (if the crack of dawn takes place at 5:45 am) to head out to Millbrae at 6:30 am to attend a franchising seminar. At the moment I don't have any plans to franchise The Flirty Guide. This was simply an investigative learning experience. Because I have received some inquiries as to when I'll be creating more Flirty Guides by both brides and industry professionals nationwide, I thought I should learn more about franchising now as a future possibility for later.So back to Thursday morning at 7:30 am at the Westin with Christopher Conner. I'm constantly learning new things. I simply love to learn. I'm not only motivated by the gain of knowledge but thoroughly enjoy the discovery process that learning entails. In the past two years the majority of what I've learned has come from taking self imposed immersion courses on the internet reading blogs, news articles, Googling and reading anything and everything I can find on topics like blogging and search engine optimization (SEO) to learning more about online social communities and entrepreneurship.So to go somewhere, so early in the morning, to learn something was a bit out of my ordinary when it comes to how I've chosen to gain knowledge about business aspects I'm unfamiliar with. But boy was I glad I went!The presentation a group of 7 of us were given? Far exceeded my expectations. Christopher led the seminar with a casual air inviting us to interrupt with questions or comments whenever we wanted to. After introducing ourselves to the group and discussing where our businesses were at now and what our future plans are, he spent the next 3 hours explaining the franchising process. I came away with a firm grasp not only as to what franchising is all about but because of both the presentation and some one on one time after the seminar I learned how, in particular, my own company will be a viable business model to franchise someday, if I'm so inclined.
I'll be reading this book as soon as I finish "The Tipping Point."There was much to be gleaned not only from Christopher but from some of the other attendees as well. One in particular, Justin Moreau of Fireplant Media, made a comment that really resonated with me:"When there is a failure in the economy it creates another opportunity."He was talking about business owners being able to adapt to what is going on around them. That we can't always just keep doing what we've been doing and remain successful. I love to meet people who recognize that sometimes not only is change necessary but one can embrace it as a progressive challenge to overcome, not an insurmountable obstacle that tolls the impending doom of how "things used to be."My thanks to Christopher for his time and expertise. If anyone has questions about franchising I would highly recommend you read his blogs and contact him to learn more about what makes a business franchisable and how to do it successfully.

Christopher J. Conner
Vice President of Francorp
www.Francorp.com

Franchise Statistics

q Franchised businesses account for nearly 50% of all retail sales in the United States.



q The International Franchise Association has reported that franchising is responsible for 760,000 businesses, 18 million jobs, 14 percent of the private sector employment, and over $500 billion in payroll!



q From January 2000 to December 2004 the index that tracks the performance of the top 50 franchisors increased 34.5% compared to a drop of 20.1% in the S&P 500 over the same period.



q A 1999 study by The United States Chamber of Commerce found that 86% of franchises opened within the last five years were still under the same ownership and 97% of the were still open for business.



q A U.S. Department of Commerce study conducted from 1971 to 1997 showed that during that time less than 5% of franchise businesses were closed each year.



q A U.S. Small Business Administration study conducted from 1978 to 1998 found that 62% of non-franchised businesses closed within the first 6 years of their existence due to failure, bankruptcy, etc.



q Total sales by franchised businesses are projected to reach over $2 trillion, this year.



q 1 out of every 12 businesses is a franchised business.



q A new franchised business is opened every 8 minutes of every business day.



q In 2000, the median gross annual income, before taxes, of franchisees was in the $75,000 to $124,000 range, with over 30% of franchisees earning over $150,000 per year.

Franchising - Even Churches!

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

Lima, Peru


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

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

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


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

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

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

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


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

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

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

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

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


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

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

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

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

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


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

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

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

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

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

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

Franchising Outside of the U.S.

FRANCHISING


U.S. Restaurants Push Abroad
By RICHARD GIBSON

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Good Article From Jeff Elgin

Buying a Franchise
Lay-offs mean opportunities for new franchisees.

One of the most significant trends in franchising over the past 15 years is the emergence of ex-corporate executives as new franchisees. This trend began in earnest with the downsizing of the early '90s, and has continued steadily--corporate layoffs of white-collar workers have become a way of life in large companies.

This is actually exciting for franchisors, because the pool of potential franchisees isn't only larger--it also contains many people with extensive management experience. Many of these prospective franchisees also have significant capital available due to severance packages or simply via years of earning high salaries (read "Executive Decision").

Yet from your perspective, there are certain dynamics of being a franchisee you should be aware of. Your experience as a franchisee running a small business will probably be light years away from the world of being an executive in a Fortune 100 company.

If you're an ex-executive considering becoming a franchisee, realize that, in a franchise operation, you won't have large budgets and staff personnel to support you. You need to make decisions much more rapidly and almost always without having complete information at your disposal. The risks of making a mistake may be much smaller in a financial sense, but they're also far more personal, since it's your own treasure that's at stake.

It's essential that you communicate well with your franchisor and understand clearly what your role will be as a franchisee. Failure to do so could seriously jeopardize the chances of you being happy and successful as a franchisee.

Your first decision in making the transition between corporate employee and franchisee is whether you want a "standard" or an "executive" franchise business. Both can be great, but they're quite different in terms of the role you'll play.

In a standard franchise business, you'll be very involved in the daily operation of the unit. You can expect to spend a significant amount of time working at the physical location of the business or trying to increase business through marketing or sales. This is very much a hands-on role, and you'll probably work harder than you have in quite some time, especially during the first few years.

The standard franchise can be quite exciting and rewarding if you're an executive who's tired of all the bureaucracy, committees and decision levels involved in a large corporation. This gives you the ability to personally control and drive the business and make decisions on every level, and on an immediate basis. You can also interact with your customers and know from first-hand experience what makes the cash register ring. The downside is that in addition to being the CEO of such a business, you'll have to take on potentially every other role, from the janitor on up. Expect to get your hands dirty in this type of franchise.

In an executive franchise, your role is much more indirect--you work through others to drive the success of the operation and usually have very little, if any, interaction with customers. In this type of franchise, typically managers or other key employees actually run the business operations, while you supervise the managers and key employees.

The advantage of an executive franchise business is that it's tailored to match the corporate experience you're familiar with. It feels comfortable, because it's how you're used to working to achieve results. The downside is that, just as in corporate America, if your subordinates don't perform, the responsibility ultimately rests with you (and in this case, failure has a very personal financial impact).

There's no right or wrong answer as to which type of franchise is best for you. This is a personal choice based on your individual desire, but it's very important that you understand the distinction and the role you'll play in any business you choose (read "The Golden Ticket").

Some other factors you should consider when making your decision include:

The type of employees you want to work with. Some franchise businesses feature large numbers of minimum-wage employees; others have fewer or higher skilled employees. Consider the types of employees you can most effectively manage and work with in choosing a franchise that'll match up well for you.
The hours you want to work. You need to be involved in the business during the high-volume periods. Many retail franchise businesses do most of their volume during the evenings and weekends, yet you may be used to having your evenings and weekends free. This is a very important point you need to resolve--otherwise, you'll probably experience a great deal of anxiety once the excitement of the new business wears off.
The franchise's potential for larger than normal operating margins. Such businesses are simply more forgiving of mistakes and, despite whatever success you're used to having, starting any new business is going to involve making some mistakes. Many of these potentially higher margin franchises are in the service or sales sectors, though you can also find such opportunities in retail or food if you research carefully.
If you're a displaced executive, take heart: The franchise industry represents a great potential opportunity. The secret to making the transition a positive and successful one is to figure out what you want from a business and to gather all the information you need to ensure the franchise you buy is the right one for you. If you do that, you should be well on your way to a better and more rewarding life.

Jeff Elgin is the "Buying a Franchise" coach at Entrepreneur.com and has almost 20 years of experience in franchising, both as a franchisee and a senior franchise company executive. He is currently the CEO of FranChoice Inc., a company that provides free consulting to consumers looking for a franchise that best matches their needs.

Moe's - Focus Brands

MOE’S SOUTHWEST GRILL ENERGIZES FRANCHISE GROWTH
FOLLOWING RECENT ACQUISITION
FOCUS Brands’ Advanced Resources Set Stage for 75 New Restaurants
ATLANTA, Ga. – Moe’s Southwest Grill, a 2007 Top Ten Growth Chain according to
Restaurant Hospitality and Technomic, is prepared for vigorous franchise growth
following its recent acquisition by FOCUS Brands,® Inc with the same flavor and energy
found in its more than 370 fast-casual restaurants.
Propelled by the resources and expertise of its new franchisor and operator, FOCUS
Brands, Inc., which operates more than 2,100 ice cream stores, bakeries, restaurants,
and cafes worldwide, Moe’s Southwest Grill is well poised to reach its impressive goal of
signing 100 new deals and opening 75 new restaurants by the end of 2008.
“Moe’s growth will be backed by more resources than ever before,” said Steve
Romaniello, President and CEO of FOCUS Brands. “In addition to the newly built Moe’s
R&D kitchen, we have added resources in real estate, purchasing, international and
licensing. We’ve got something special with Moe’s and we intend to share it with as
many people as possible.”
Company executives say recent brand initiatives, including the introduction of meal
combo deals and a new menu board, have further strengthened Moe’s marketplace
potential. Other Moe’s successes in 2007 included the opening of the first international
unit in Canada and launching the concept’s first ever limited time offer.
“The Moe’s concept lives in a segment – fast-casual Mexican – that is experiencing
exponential growth,” said D’Wayne Tanner, Vice President of Franchise Sales for Moe’s
Southwest Grill. “The momentum we’ve built over the past year has generated record
interest in our concept among prospective franchisees. While the market is competitive,
the strength of the brand, coupled with the core competencies of FOCUS Brands,
positions Moe’s with what it takes to dominate the multi-billion dollar fast-casual dining
segment.”
Ranked #9 on Fast Casual magazine’s 2008 Top 100 Movers & Shakers list, Moe’s
enjoys a solid presence in 36 states and is best known for its “Welcome to Moe’s”
greeting, vibrant décor and fresh made-to-order southwest fare including the uniquely
named Homewrecker burrito, Closetalker salad and John Coctostan quesadilla.
Each Moe’s location is approximately 2,500 square feet, employs an average of 25 staff
members, and seats approximately 80 guests. Operating hours vary by location.
About Moe’s Southwest Grill
Moe’s Southwest Grill is the neighborhood burrito place offering flavorful Southwestern
fare with a healthy twist. With over 360 locations across the country, Moe’s Southwest
Grill serves only the freshest ingredients prepared right before your eyes, including the
Homewrecker burrito, the Billy Barou nachos, and the Closetalker salad, in a fun and
welcoming atmosphere. Founded in 2000, Atlanta-based Moe’s Southwest Grill is
ranked the #1 fast-casual chain based on change in system-wide sales according to
QSR Magazine and the #2 fast-casual chain under 300 units in 2006. For more
information, visit www.moes.com. For franchise inquiries, contact D’Wayne Tanner at
dtanner@focusbrands.com (615) 776-1685.
About FOCUS Brands Inc. ®
FOCUS Brands Inc. is the franchisor and operator of over 2,100 ice cream stores,
bakeries, restaurants, and cafes in the United States, the District of Columbia, Puerto
Rico, and 32 foreign countries under the brand names Carvel®, Cinnabon®,
Schlotzsky’s®, Moe’s Southwest Grill®, and the franchisor of Seattle’s Best Coffee® on
military bases and in certain international markets. Based in Atlanta, the primary
objective of FOCUS Brands is to “FOCUS on making people happy.” Please visit
www.focusbrands.com to learn more.

Coca-Cola Franchising

Interesting franchise story, some don't realize that Coca-Cola is also a franchise company. By shipping their prized syrup to franchisees who mix the ingredients with water and carbonation, they decrease shipping and distribution costs while increasing their management's effectiveness through franchise owner operators in different parts of the world.

The Coca-Cola Company (NYSE: KO) is the world's largest beverage company,largest manufacturer, distributor and marketer of non-alcoholic beverage concentrates and syrups in the world, and one of the largest corporations in the United States. The company is best known for its flagship product Coca-Cola, invented by pharmacist John Stith Pemberton in 1886. The Coca-Cola formula and brand was bought in 1889 by Asa Candler who incorporated The Coca-Cola Company in 1892. Besides its namesake Coca-Cola beverage, Coca-Cola currently offers nearly 400 brands in over 200 countries or territories and serves 1.5 billion servings each day.

The company operates a franchised distribution system dating back to 1889 where TCCC only produces syrup concentrate which is then sold to various bottlers throughout the world who hold an exclusive territory.

The Coca-Cola Company is headquartered in Atlanta, Georgia. Its stock is listed on the NYSE and is part of DJIA and S&P 500.

Hotel Franchises

This is an article from the Wall Street Journal on the current hotel market. If you want to franchise your company go to www.francorp.com.

Room to Rise? In Hotels, Operators Have an Edge Over Owners
By ALEX FRANGOSApril 30, 2008; Page C1
http://online.wsj.com/article/SB120950200271853909.html?mod=djkeyword
Heading into an economic downturn, hotels are often among the first industries to suffer as travel slows and room rates weaken. And now, vacancies are on the rise just as the fruit of a hotel-construction boom is set to add a quarter of a million new rooms to the U.S. supply over the next 24 months.
For investors trying to determine which hotel companies are best positioned to ride out a downturn, economic and construction data don't tell the whole story. The industry has evolved over the past decade into two groups. One is composed of companies that manage and operate hotels, such as InterContinental Hotels Group PLC, Starwood Hotels & Resorts Worldwide Inc., and Wyndham Hotels & Resorts LLC, a unit of Wyndham Worldwide Corp. The other group is composed of real-estate investment trusts that build, buy and own hotel properties; most REITs aren't household names.
"The companies that historically are less real-estate-intensive have generally performed better during a recession," says J.P. Morgan Chase & Co. analyst C. Patrick Scholes. That is partly because hotel operators have lower leverage and higher margins. Moving forward, some operators may even profit from the impending oversupply of hotel rooms by garnering management fees from the larger number of rooms. Operators also have broader exposure to international markets.
InterContinental, which besides its namesake owns brands such as Holiday Inn and Crowne Plaza, is signing up two new hotels a day that will in the future carry its brand. It is the largest hotel company by rooms, with 585,000 under its brands. Much of the growth will come in India and China.
Leslie McGibbon, senior vice president at InterContinental, says the United Kingdom company takes a 5% to 6% franchise fee on room revenue, before the local owner has to pay for expenses such as maid service, laundry and electricity. "As long as you can add the amount of rooms, even if overall revenues don't increase, you still grow," he says. In return for the fees, hotel owners get the benefit of the operators' brand recognition, reservation systems, advertising and marketing spending.
Many investors aren't convinced and are punishing both sides of the business. As of Monday, the total return for the 12 hotel REITs tracked by SNL Financial, a financial-research firm, was down 28% compared with a year ago. During the same period, an index of hotel-operating companies, such as Marriott International Inc. and Starwood, is down 15%. Both sectors are hovering around break-even this year.
A few savvy investors are starting to pick over the industry and have decided the biggest operators are good buys. In February, an investment arm of real-estate magnate Sam Zell said it scooped up nearly 8% of Starwood's shares. At a real-estate conference earlier this month, Mr. Zell explained his play: "Cheap is cheap, and I tend to get very motivated by cheap."
Lodging analyst Smedes Rose at Keefe, Bruyette & Woods Inc. sees opportunities for longer-term investors in real-estate-light operators such as Marriott and Starwood. He estimates Marriott, for instance, is trading at 17 times its expected earnings per share this year. It traded as high as 30 times a year ago and on average trades 21 times. (The firm expects to do investment-banking business with several hotel companies.)
The split in the hotel industry between owners and managers dates to the decision in 1993 by Marriott to spin off its debt-laden real-estate assets into what is now Host Hotels. Nearly all other publicly traded hotel companies have followed suit. InterContinental went from owning 230 properties in 2003 to owning 18 today. Starwood, which operates hotels under the Westin, Sheraton and W brands, owns 74 of its 900 hotels. It sold 51 in 2006 and 2007 for $4.6 billion.
Model Business?
The hotel operators praise their low-leverage business model that relies on charging management or franchise fees based on top-line revenue of a given hotel. "We generate our revenues off the top line of the hotel as opposed to taking something off the bottom line," says Stephen Holmes, chief executive of Wyndham, which typically takes as much as 8% of a hotel's revenue in a franchise agreement, even if a hotel itself fails to turn a profit.
The owners of the hotels, meanwhile, carry the burden of paying for staff, energy costs and other expenses. And as owners, they are responsible for capital-intensive outlays such as development costs and renovations. Sheraton, for instance, announced a $4 billion makeover and building plan -- funded by its owners. InterContinental's Holiday Inn brand launched a $1 billion plan to rejuvenate its musty reputation. The hotel owners will carry the weight.
Indeed, DiamondRock Hospitality Co., a Bethesda, Md., hotel REIT, lowered its revenue outlook for the year Tuesday, saying in a statement that "room demand in several of our key markets will be lower than our initial expectations."
'Far Better Shape'
The hotel REITs don't subscribe to the notion that they are worse off, especially compared with past economic cycles.
"We are in far better shape as an industry than in the prior cycle," says Jon Bortz, chief executive of LaSalle Hotels, a hotel REIT that owns hotels in urban downtowns and resorts. Several weaker players were taken out by private-equity firms. His company has learned to cut costs faster in the downturn. And LaSalle's properties, in markets with high barriers to entry such as New York and San Francisco, will benefit in an upturn thanks to limited new competition.
Problem Potential
Still, REITs have more potential for problems during a downturn because of their structure, which requires them by law to pay out most of their profit as dividends. "Operators have less volatile cash flow than the owners do," says John Arabia, a hotel analyst for Green Street Advisors Inc., a Newport Beach, Calif. research and trading house.
That makes it difficult, especially for debt-heavy REITs. In the last downturn, in 2001, most lodging REITs were forced to cut their dividends. Some put off critical hotel renovations that depressed business when the turnaround started. Several hotel REITs that didn't exist during the last recession have high debt loads. Ashford Hospitality Trust Inc., for instance, has a long-term debt to total market capitalization ratio of 72%, according to BMO Capital. The more-experienced hotel REITs carry lower debt ratios. Host is at 37%; LaSalle at 36%.
Perhaps the biggest edge that operating companies have over owners is that they can more easily expand their exposure to foreign markets. Starwood derives around 40% of its fee revenue abroad. Marriott gains around 20% abroad and it was a big part of its profit in the first quarter.
The REITs, because their tax structure is unique to the U.S., tend to stay homebound. That is starting to change, but slowly. Host Hotels has a joint venture in Europe and announced it will enter a Singapore-based joint venture to invest in up to $2 billion worth of hotels in Asia.
--Tamara Audi contributed to this article.
Write to Alex Frangos at alex.frangos@wsj.com

Service Franchises

This article explains more about a new and coming franchise company in the franchise industry. If you want to franchise your business go to www.francorp.com.

Irving franchisor brings assisted living to small towns
07:19 AM CDT on Wednesday, April 30, 2008
By BOB MOOS / The Dallas Morning News bmoos@dallasnews.com
http://www.dallasnews.com/sharedcontent/dws/bus/stories/043008dnbuscountryplace.3b91280.html

What McDonald's legend Ray Kroc once did for burgers and fries, Dallas-area entrepreneur Jack West hopes to do for retirement living.
Franchising has been used to sell everything from fast food to maid service to child care. Now Mr. West's company, Country Place Living, is using it to help bring assisted-living centers to small-town America.
"If you've lived in the same town all your life, you shouldn't have to leave it for the big city when you can't care for yourself anymore," he said. "You should be able to grow old with your family and friends nearby."

Elizabeth M. Claffey/Special Contributor Jack West, founder of Country Place Living, has five assisted-living centers and two group homes in small Kansas towns.
View larger More photos Photo store
Mr. West founded the company five years ago and has opened five assisted-living centers and two group homes in small Kansas towns.
The privately held company has relocated its main office to Irving and set its sights on expanding in Texas and other states.
Country Place will build a number of assisted-living centers on its own in North Texas and elsewhere to "prime the pump" and introduce the brand, but most of its expansion will be through franchises.
Since its franchising push started early this year, Country Place Living has received four applications from Texas.
The prospective franchisees include a developer, a former nursing home administrator, a homebuilder and a physician.
Though the aging population has spawned hundreds of franchises that provide in-home care, Mr. West's Country Place communities will be among the first franchises to cater to seniors moving out of their houses.
"It's a logical next step in franchising, given the expected doubling of the older population over the next 25 years," said Alisa Harrison, an executive with the International Franchise Association. "Mr. West is on to something."
Almost 1 million Americans live in more than 38,000 assisted-living communities, most in cities or their suburbs, according to the Assisted Living Federation of America.
Assisted-living residents get help with day-to-day tasks but don't require round-the-clock skilled nursing care.
Twenty-five years in the senior living business have taught Mr. West that older adults prefer homelike settings. So his company is franchising eight-bedroom group homes and 18-unit assisted-living apartments.
Small towns
Small towns tend to have older populations but often lack senior care facilities, which could be lucrative for companies like Country Place Living, said Paul Williams, the assisted-living federation's director of public policy.
"They'll fill a niche passed over by others," he said.
Mr. West said his company is seeking highly motivated, altruistic franchisees who want to make an investment in their communities.
Country Place Living's marketing pitch to prospects plays off that goal: "Do well while doing good."
Getting into the senior care business is not for the fainthearted, industry officials say.
"A group home is about more than providing room and board. It's about caring for residents as their health declines," said Robert Kramer, president of the National Investment Center for the Seniors Housing and Care Industry.
"This isn't just a real estate proposition," he said.
Buying a franchise will appeal to people who might hesitate to build a business from scratch, Mr. West said.
Country Place Living franchisees can turn to corporate staff for help with finding a building site, securing financing, overseeing construction, applying for a state license, training employees and promoting the residence, he said.
"Our franchisees will be expected to follow our already successful business practices," he said. "They won't be reinventing the wheel."
Corporate expertise
Before entering the senior living business, Mr. West owned a number of KFC franchises, where he learned the value of relying on the corporate headquarters' expertise when he had questions, he said.
"I didn't know the first thing about running a chicken restaurant when I started, but I always had the corporate team to support me," he said.
At Country Place Living, franchisees can expect to pay $37,500 upfront and 5 percent of gross receipts as a royalty fee.
An eight-bed group home requires an overall investment of $600,000 to $1 million.
An 18-apartment assisted-living center runs from $1.8 million to $2.3 million. Small-business loans can cover most of that.
Mr. West said a franchise would be a good fit for boomers looking to invest in something that will provide a steady income during retirement.
The company's first franchisees are Diane and Rob Floersch, a 40-something couple who intend to open a group home this fall in her hometown of Scandia, Kan.
The couple said they bought the franchise so families in Scandia can enjoy the same homelike care that Mr. Floersch's mother receives at one of Country Place Living's company-owned residences in another Kansas town.
"People in Scandia cried at the news that we're building a place for seniors," Mrs. Floersch said. "We already have a list of prospective residents."
To finance their investment, the Floersches applied for a low-interest loan through the county's economic development agency.
They will keep their current jobs – he's a grocer and she's an office manager – and hire a staff to operate their new business.
Mr. West hopes to dot the countryside with 200 to 300 Country Place Living residences within five years.
"It's the perfect time for something like this," he said. "Nursing homes have become outdated. People now prefer someplace where they can feel a sense of community. That's what we're creating."