McDonald's

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


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

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

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

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

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

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

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

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

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

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

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

Francorp To Exhibit at the Atlanta Franchise and Finance Exposition

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

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

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

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

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

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

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

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

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

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

Franchise Information

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

www.francorp.com

Choice Hotels

Choice Hotels Plays Up Free Services
March 2, 2009

-By Elaine Wong

Choice Hotels International is going after money-conscious consumers with a new campaign highlighting the value travelers get by choosing its family of brands.

Three new spots, via Arnold Worldwide in Washington, show that Quality, Comfort Inn and Comfort Suites--among other Choice Hotels International properties--offer complimentary services like free breakfast and Internet access. Choice Hotels has 5,800 locations worldwide.

The spots, which show hotel guests dining, visiting an amusement park and taking a carriage ride, relay the value message via free amenities that Choice Hotels offers. In the past, however, ads played up the convenience of its locations with Johnny Cash's “I’ve been everywhere” serving as the jingle since 2005. The change in advertising strategy comes as Choice Hotels reported a 33 percent drop in fourth quarter profit.

“For us, it’s not an entirely new focus. Our brands have been known for providing the best value and convenient locations, but we are placing more emphasis on the value,” said Chris Malone, Choice Hotels CMO. “The message to our consumer is: ‘You don’t have to give up all the things you enjoy and love.’”

Choice Hotels, which spent $75.3 million in both 2007 and 2008 on advertising, per Nielsen Monitor-Plus, did not disclose cost of the campaign. Malone said the push coincides with the company's heavy emphasis on search and online advertising.

The hotel chain has ramped up its keyword search for all properties, as 60 to 70 percent of all hotel bookings are made online, Malone said. Malone also added that in 2009, the company would increase broadcast and online impressions by 4 percent and 39 percent, respectively.

Even during an economic slump consumers still want to travel, but they’re looking for value more than anything else, said Woody Kay, managing partner and chief creative officer in Arnold's Washington office. “If anything, this is the year of the deal. The staycation is becoming the nearcation. People are discovering that staying at home is not fun,” Kay said, adding that events like weddings and business trips will always call for a hotel stay. The only difference is that instead of seeking out more luxury brands, consumers will be focused on hotels that provide more bang for their buck.

McDonald's

McDonald's names new China chief executive
Mon Mar 2, 2009 8:30pm EST Email | Print | Share| Reprints | Single Page[-] Text [+]
Market News
Global stocks rise on China hopes
China hopes, oil's surge snaps Wall Street's 5-day rout
Oil gains nearly 9 percent on U.S. crude stocks drop
More Business & Investing News... BEIJING, March 3 (Reuters) - McDonald's Corp (MCD.N) on Monday named Kenneth Chan as its new chief executive officer in China, replacing Jeffrey Schwartz, the company said in a statement.

Chan, a Singaporean, has been with McDonald's for 12 years, most recently acting as regional manager in Malaysia, Taiwan and Korea, and managing director of its restaurants in Singapore.

Schwartz, a 40-year McDonald's veteran, will retire from the company, the statement said. (Reporting by Michael Wei; Editing by Ken Wills)

Francorp Client Schotzsky's

Schlotzsky’s Goes Web 2.0 for Sandwich Debut
March 3, 2009

-By Becky Ebenkamp

Schlotzsky’s is throwing out the first pitch for its initial major QSR deal this week with a spring baseball-themed program that supports the casual chain’s launch of three Big League Clubz sandwiches.

The creative challenge was to spread the word about the new Beef ‘n Bacon Club, Chick ‘n Turkey Club and Ham ‘n Turkey Club sandwiches among dads and their ball-playing kids by the bonding the sport brings—from Little League to the big leagues. (The promo has no affiliations with Major League Baseball or any other organization, however.) Austin, Texas-based Schlotzsky’s is owned by Focus brands (Carvel, Cinnabon, Moe’s Southwest Grill) and has about 350 restaurants in 35 states.

This is the largest promotion Schlotzsky’s has ever done, and the first time the chain has gone beyond the traditional TV, radio, FSI, POP route to communicate.

“We brought in all these [components] to help [Schlotzsky’s] understand the power of social media to drive sales and to show them how measurable it is,” said Van Vandegrift, executive producer at branded entertainment company Matrixx Pictures in Santa Monica, Calif., the agency that devised the promotion. “In Web 1.0, we used to care about the time visitors spent on the site and where they went; now, the sentiment is about the brand, how many times it’s mentioned in blogs and in what context, photos posted to Twitter, drive-by buzz. This is great because this is a brand new sandwich--there’s no buzz yet.”

At a microsite (Bigleagueclubz.com), fans can join a Big League Clubz club and enter a sweepstakes to win a trip for four to St. Louis (coincidentally timed around the MLB All-Star Game). The sweeps runs through May 31, and visitors who come back for extra site experiences—such as to play games or sign up for an e-letter—get bonus entries. Gameplay will be a main draw, as there are video games and a fantasy baseball league component that involves drafting friends for teams. The latter will also extend to social networking sites, such as Facebook.

A downloadable desktop widget lets players keep track of scores and other baseball info and gives Schlotzsky’s a conduit of communication. “We’ll know how many people download the widget, and when we push out an offer, we’ll know who we pushed it to and who responded,” Vandegrift said.

There are many more components: Codes from ads and POP can be texted to win additional sweepstakes chances, the sandwiches have their own baseball-type cards that factor in and fans who collect those can upload photos to a site to receive a mini engraved baseball bat premium. There’s a local market activation push to help restaurants connect with baseball entities in their communities through sponsorships, team nights and other touch points.

“It’s rare to see a 40-year-old brand take a shot at new media," said Vandegrift. Most are afraid to dip their toes in, and he believes the best way to introduce clients to Web 2.0 is to engage them personally. He added: “If you want to know how text messaging works, [we say to them,] ‘Text this message to this code and when you get a message back you can see if you like how it works. That’s better than sitting around all day saying, ‘We should have a better web site.’ It’s about building a better social experience.”

Francorp Middle East

Franchise demand in UAE to expand
Armina Ligaya

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Franchise Information - Jani-King

Business Description
JANI-KING INTERNATIONAL is the world's largest commercial cleaning franchisor, with locations in 19 countries and over 125 regions in the U. S. and abroad. Our franchise opportunity includes initial customer contracts, training, continuous local support , administrative and accounting assistance, an equipment leasing program and national advertising. If you are searching for a flexible business opportunity, look no further.

Franchisor Background
Year Established: 1969
Franchising Since: 1974

Franchised Units: 13,000
99.8%
Company-Owned Units: 27
0.2%

Total Operating Units: 13,027
100.0%

Geographic Distribution:
U.S.:
12,148
93.3%

In 39 States

Canada:
351
2.7%
In 7 Canadian Provinces

International:
528
4.1%
In 0 Foreign Countries

Total:
13,027
100.1.0%

North America:States/Provinces with the largest number of operating units:
Density
Units
1. California 737
2. Florida 307
3. Texas 880

Registered in Following Registration States: California, Florida, Hawaii, Illinois, Indiana, Michigan, Minnesota, New York, Oregon, South Dakota, Virginia, Washington, Wisconsin, District Of Columbia

Financial Requirements
Investment:
Minimum Net Worth:
$2.9-33K
Cash Investment:
$2.9-33K
Total Investment:
$2.9-40K
Average Total Investment:
$22K

Fees:
Initial Franchise Fee:
$8-33K
Average Franchise Fee:
$20K
On-Going Royalty:
10%
Average Royalty:
10%
Advertising Fee:
0%

www.francorp.com

Francorp Process

Our Proven Franchising Method
Franchise Your Business Seminars
Want to know how franchising works? Want to know how it stacks up to other forms of expansion and what controls are in place to protect you? Attend a Franchise Your Business Seminar, held in cities across the country. Conducted by a Francorp Senior Consultant, this seminar is designed to answer your questions and provide you with a better understanding of costs, time frames and working capital typically needed to grow through franchising.
The Francorp Tour
As business owners and executives examining franchising as an expansion strategy, you are encouraged to visit Francorp's headquarters in Olympia Fields, Illinois, a Chicago suburb. Here, you are invited to tour through all of our departments, meet our staff and senior officers, and review the documents needed in effective franchise growth. Your time spent with us will allow you to gain a detailed understanding of Francorp's unique process and how this process fits your needs for expansion.
Consultation
Is franchising right for your business? How long will it take to transition your business into a franchise? What kind of costs should you expect? These are just a few of the questions that are answered when you meet with a Senior Consultant. The Francorp consultation is typically a face-to-face meeting that allows you the opportunity to obtain an impartial evaluation of your business and its readiness for franchising from a professional with strong business experience and exceptional expertise in franchising.
Franchise Development
Franchise Development is our area of expertise. Whether you are developing a brand new franchise, reworking an existing one, or converting company-owned operations, Francorp has extensive experience across a wide variety of industries. Franchise Development includes designing a strategy for expansion, legal documents, operations manuals and marketing materials. These documents are created by a team assigned to your program that works closely with your company and staff to create materials that meet your expectations and deliver franchise sales.
Franchise Sales Training
While Francorp doesn't function as a broker for our clients, as part of our Franchise services, Francorp provides franchise sales training to new and existing franchisors. Attendees are taught by industry experts with numerous years of franchise sales experience, receive a "how to" manual and personalized instruction on how to sell effectively. On an ongoing basis, Francorp provides implementation consulting to ensure that the lessons learned in the classroom work effectively in achieving sales.
Franchise Management Training
Francorp conducts a two-day Franchise Management Training course designed to educate the Client's management team on the complexities of operating and managing a growing franchise organization. Detailed and comprehensive manuals are provided to all attendees on all course segments:
Building the Franchise Organization
Training Your Franchisees
Providing Effective Field Support
Marketing as a Franchisor
Franchisor Compliance
Franchisee Relations
Franchisor Services
While franchisors have specific needs that differ from one company to another, there are some basic needs that remain the same for all franchise organizations. Franchisors need both speed and accuracy in keeping their documents in step with the current marketplace. Experience and flexibility are critical. Francorp is structured perfectly to meet these needs. From a singular document revision to a whole system audit, Francorp adapts to meet the needs of each of our clients. We have the resources and experience to assess a problem, offer solutions and implement them in a timely manner.

Francorp Services

Franchise Program Development
Development Services for New Franchisors
Francorp Consultation
Franchise your Business Seminars
Strategic Planning & Business Plan Development
Market Research & Competitive Analysis
Prototype Development Consulting
Franchise Document Drafting Services
State Filings & Registrations
Operations Consulting and Manual development
Advertising and Marketing Services
Franchise Internet Marketing
Web System Development, Guidance and Consulting
Media Plans & Budgeting
Franchise Sales DVDs
Training DVDs
Franchise Sales Training
Franchise Management Training
Implementation Consulting
General Consulting
Development Services for Existing Franchisors
Industry Research Services
Legal Document Revision
Registration Updates & Renewals
Operations Manuals Drafting, Review and Revision Services
Franchise Sales Training
Franchise Management Training
Training DVDs
Sales DVDs
Franchise Program Review
Web System Development, Guidance and Consulting
Franchise Internet Marketing
Lead Generation Services
Sales Strategy Critique & Training
Advertising and Marketing Services
Franchise Ads & Media Planning
Market Research Services
Special Projects
Expert Witness
General Consulting

Franchising in India

Franchising in most parts of the world is well established and part of everyday life. In the U.S. over $1 trillion is spent per year in franchised outlets, 1 out of every 12 retail locations is a franchised operation. Now franchising is moving into other parts of the world, most notably India.
India now presents and enormous opportunity for franchise organizations. The country has over 12 million retailers which surpasses even China. This makes India the country with the highest retail outlet density in the world.
Indians have taken to franchising like the U.S. Already in this young and undeveloped franchise environment there are over 600 franchisors franchising in the Indian marketplace today. Along with that comes over 40,000 franchisees spread out across the country and across different sectors, over 300,000 Indian employees are employed directly by Indian franchise companies there. The market is enormous with almost unlimited potential. Currently the education sector of franchised businesses is the leading franchise model, but retail is catching up. The size of the consuming class means big opportunities for more franchise development.
The potential downsides of the new Indian market are what comes along with any developing market. For one the lack of regulation can still be an issue, real estate can be tricky and skewed in some cases and financing can be difficult. But if you can deal with those, this market has loads of potential.
There are a lot of companies in the services sector that are actively looking at India to set up their franchise operations today and will continue to be in the future. The growing popularity of the franchise model among Indian business men is evident in and around the country of India. The same issues that are taking place in the U.S. are also happening in India today. More people are losing their jobs, the big companies are downsizing with the slowing the economy in many sectors. This puts more people in the franchise market who would otherwise be working in a management position at a salary.
A franchise is a way for someone to earn a living without the risk of starting their own business. The other side of the equation is that as is the case in the U.S., investors are becoming more and more wary of putting their money into the stock market today. Earning the kinds of returns that were possible 2-5 years ago are extremely difficult today. This prompts more and more Indian business people to invest in themselves through a franchise model. Overall, the Indian franchise market represents one of the largest franchise opportunities in the world today.
Franchise organizations with applicable concepts and good planning will absolutely take India into account when planning their franchise system expansion for the coming years.


Christopher J. Conner

Vice President

Francorp, Inc.

708-481-2900

http://www.francorp.com/

Citrusolutions - Powerful Message

Here is a really powerful letter written by Paul Romanick, CEO of Citrusolutions based in Atlanta. Paul has a truly clear picture of what we are dealing with and some great advice to all of us. Take a moment and read through his thoughts that were written to inspire his network of partners in Citrusolutions.

Hello everyone,

Unemployment is at a 16 year high. Watching the news you would think it was 70 years. We are in a recession created in most part by two industries. Builder-developers who overbuilt homes, and financers who gave loans to people who couldn't afford to pay for them. Bad business models suffering the consequence of their behaviors. Unfortunately, they are affecting the overall economy. The auto industry is in trouble,yes? No! The big three are in trouble. Yes, the other car companies are selling less cars. That's a recession. The big three, though, are in big trouble. Uncontrolled costs, and an unpopular product. You don't have that problem.

You are in a recession, but you have a popular product, honest prices, and great customer service. That's called added value.The good news is you can promote that at relatively low costs compared to your competitors. You can network, you can do events, you can develop relationships. You should continue to do what you have done that has been working for you. You should do more of what's been working for you. You should look for more ways to integrate with the community.

I have rewritten and updated the Marketing Manual in response to this economic climate. It has new content focused on working with your existing client base. There is a new chapter on networking. I encourage you to read this updated manual with a fresh eye. I f you have ever thought of implementing the referral certificate program, now would be a good time. If you have not been marketing as hard as you did when you were new to the business,now would be a good time to renew your energy. Ths economic climate could provide you the incentive to not only survive this economy , but to thrive in it. I know someting of what I speak.

Unemployment is at a sixteen year high! That is where it was in the 1991-1992 era when I built my own carpet cleaning company in Atlanta. In 1992 I grossed $225.000 with our price point at 5 rooms for 88.95. That's $17.00 a room or so. At todays prices that would be a half million. I guess I just didn't participate in the recession. You can decide not to part of this recession. You can decide to be part of the recovery. It won't happen on Pennsylvania Avenue. It will happen on Main Street. Don't wait for a bailout. Lift yourself up! America succeeds in spite of our government, not because of it. Succeed. Do it yourself. Make it happen!

Networking: The act of meeting new people in a business context. Network! With a group, an individual, or with your existing clientele. With anyone and everyone. All business is two people talking. Almost every Citrusolution owner came to us from one form of networking or another. It works. Our most successful locations, simply, have implemented more of the marketing components. Most of the marketing concepts involve "the act of meeting new people in a business context". Make it happen!


I don't expect you to spend as much time reading this as I spent writing and rewriting it, but our goals are the same. Your success!

Happy New Year!

Paul

Citrusolutions - Paul Romanick

Hello, Paul Romanick here.

You know, Citrusolution Carpet Cleaning. Twenty nine Metro Atlanta locations! 45 locations nationwide!

Also, co-owner, with Ron and Marie Dinsmore, of Network for Success in Forsyth and North Fulton.

My New Years Resolution is to help you take your business, your career, through this economy, and into 2010! Network for Success was an effort by Ron, Marie, and I, to give business people a unique opportunity to not only expand thier businesses, but to expand thier views on how to go about doing just that! Part of that business and personal growth was exemplified by The Business Extravaganza that we hosted at The Metropolitan Club on October 14th, 2008.

We put that event together to showcase our Network for Success members and to create a one of a kind network opportunity for our business community. It was open to the members of the Forsyth County Chamber, The Johns Creek Business Association, and the business community at large. The cost at the door was the same for everybody. We wanted to generate not only attendance, but excitement, as well. We did just that!

The event was incredible! If you are one of the 438 people in attendance, you saw it firsthand, and have been asking for more of the same. If you heard about it secondhand, you wished you had not missed the opportunity. In preparing our NFS people for this special event we realized we wanted to provide this style of Networking for all the business people in the 400 corridor. THAT is why we created BUSINESS 400!

We can't bail you out, but we can lift you up!

Ron and Marie sold 33 homes in 2008! That's impressive! That's Networking! Almost all of of my Citrusolution locations owners came to me through networking. 14 from my Network for Success family alone! That's Networking! That's the reason we created BUSINESS 400. It has worked for us. It can work for you! All business is two people talking together! We are the economy! We are the recovery! Let's Network in 2009,and 2010,and 2011.........

Please go to www.business400.com to learn more.

Paul Romanick
Business 400

New Francorp Videos

Here are some good videos about Francorp and the client work the company has done, click on the links to be directed to them.

"Francorp Clients"
http://www.youtube.com/watch?v=SAz3ZqPhA8k

"Francorp Team"
http://www.youtube.com/user/connercj79

"Francorp"
http://www.youtube.com/watch?v=evCqkRh4vlo&feature=channel_page

Visit www.francorp.com for more information on the firm and the work that Francorp does for start up franchisors.

Krispy Kreme Closings Are Possible Amid Loss

WINSTON-SALEM, N.C., Dec. 11 /PRNewswire-FirstCall/ -- Krispy Kreme Doughnuts, Inc. (the "Company") today reported financial results for the third quarter of fiscal 2009, ended November 2, 2008.


The Company incurred a net loss in the third quarter of $5.9 million, or $0.09 per diluted share, compared to a net loss of $798,000, or $0.01 per diluted share, in the third quarter last year. A number of factors affected results for the quarter compared to the third quarter of last year, which are discussed in detail in the Company's Quarterly Report on Form 10-Q filed this morning. The higher cost of doughnut mix and shortening resulting from higher agricultural commodity costs compared to last year and higher gasoline prices adversely affected results. Recent economic developments have resulted in a significant decline in the price of agricultural commodities, which should benefit both Company and franchise stores in the fourth quarter. In mid-October, the average price of gasoline fell below that of last year's third quarter, and the Company expects to see a reduction in its fuel costs in the fourth quarter.
Total revenues for the third quarter decreased 8.7% to $94.3 million compared to $103.4 million in the third quarter last year. The decline in revenues reflects decreases in Company Stores and KK Supply Chain revenues, partially offset by an increase in Franchise revenues. Company Stores revenues were $64.7 million, down $8.1 million (11.1%) from last year, of which approximately $2.0 million reflects store closings. Within this segment, on-premises revenues fell 5.4% in total (1.3% on a same-store basis) and off-premises revenues fell 15.3% compared to the third quarter last year. KK Supply Chain revenues declined 6.6% to $23.2 million while Franchise revenues rose 12.6% to $6.4 million.

During the third quarter of fiscal 2009, 37 new Krispy Kreme stores were opened systemwide and 22 stores were closed systemwide. This brings the total number of stores systemwide at quarter end to 509, consisting of 284 factory stores and 225 satellites. The net increase of 15 stores in the quarter reflects a net increase of 21 international stores and a net decrease of six domestic stores. All 37 new stores were opened by franchisees. Over 80% of total stores are operated by franchisees, and over half are located outside the United States.
Third quarter systemwide sales decreased 1.0% from the third quarter of last year. The growth in sales by international franchisees was offset by a decline in domestic sales arising principally from store closures.

"Our third quarter performance was impacted by a challenging operating climate led by high gas prices, as well as our commitment to investing in our growth plan," said Jim Morgan, Chairman, President and Chief Executive Officer. "We have undertaken key strategic initiatives to strengthen our business as well as the economics of our stores, and that should help us succeed through various economic cycles and deliver positive long-term results. I remain confident that our employees and our management team will execute our strategic initiatives and the results will be a transition year in FY10 that positions Krispy Kreme for a prolonged period of growth in FY11 and beyond. We will drive our business forward, and continue to deliver the unique Krispy Kreme experience to customers worldwide."

In addition to further declines in revenues, many other factors could also adversely affect the Company's business. In particular, increases in the cost of raw materials and fuel and strengthening of the U.S. dollar relative to other currencies could adversely affect the Company's operating results and cash flows. In addition, several franchisees have been experiencing financial pressures which, in certain instances, have become exacerbated in recent quarters. Royalty revenues and most of KK Supply Chain revenues are directly related to sales by franchise stores and, accordingly, the success of franchisees' operations has a direct effect on the Company's revenues, results of operations and cash flows.

The Company's consolidated financial statements include sales by Company stores, sales to franchisees by the KK Supply Chain business segment and royalties and fees received from franchisees, but exclude sales by franchise stores to their customers. Systemwide sales, a non-GAAP financial measure, include sales by both Company and franchise stores. The Company believes systemwide sales data are useful in assessing the overall performance of the Krispy Kreme brand and, ultimately, the performance of the Company.
Management will host a conference call to review third quarter results this afternoon at 4:30 p.m. (ET). A live webcast of the conference call will be available at www.KrispyKreme.com . To access an archived audio replay of the call, dial 888-203-1112 and enter the passcode 4362219. International callers may access the replay by dialing 719-457-0820 and entering passcode 4362219. The audio replay will be available through December 18, 2008.
Information contained in this press release, other than historical information, should be considered forward-looking. Forward-looking statements are subject to various risks, uncertainties and assumptions. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual results may vary materially from those anticipated, estimated or expected. Among the key factors that may have a direct bearing on Krispy Kreme's operating results, performance or financial condition are the outcome of pending governmental investigations, including by the Securities and Exchange Commission (the "SEC") and the United States Attorney's Office for the Southern District of New York; potential indemnification obligations and limitations of our director and officer liability insurance; the quality of Company and franchise store operations; our ability, and our dependence on the ability of our franchisees, to execute on our and their business plans; our relationships with our franchisees; our ability to implement our international growth strategy; our ability to implement our new domestic operating model and refranchising strategy; currency, economic, political and other risks associated with our international operations; the price and availability of raw materials needed to produce doughnut mixes and other ingredients; compliance with government regulations relating to food products and franchising; our relationships with wholesale customers; our ability to protect our trademarks; risks associated with our high levels of indebtedness; restrictions on our operations and compliance with covenants contained in our secured credit facilities; changes in customer preferences and perceptions; significant changes in our management; risks associated with competition; and other factors discussed in Krispy Kreme's Annual Report on Form 10-K for fiscal 2008 and other periodic reports filed with the SEC.

KRISPY KREME DOUGHNUTS, INC. CONSOLIDATED BALANCE SHEET (Unaudited) (In thousands) Nov. 2, Feb. 3, 2008 2008 ASSETS CURRENT ASSETS: Cash and cash equivalents $32,175 $24,735 Receivables 21,289 22,991 Accounts and notes receivable - equity method franchisees 1,017 2,637 Inventories 17,865 19,987 Deferred income taxes 83 83 Other current assets 5,699 5,647 Total current assets 78,128 76,080 Property and equipment 86,762 90,996 Investments in equity method franchisees 1,563 1,950 Goodwill and other intangible assets 23,856 23,856 Other assets 9,831 9,469 Total assets $200,140 $202,351 LIABILITIES AND SHAREHOLDERS' EQUITY CURRENT LIABILITIES: Current maturities of long-term debt $1,480 $1,557 Accounts payable 8,289 5,712 Accrued liabilities 31,270 35,949 Total current liabilities 41,039 43,218 Long-term debt, less current maturities 73,694 75,156 Deferred income taxes 83 83 Other long-term obligations 26,725 27,270 Commitments and contingencies SHAREHOLDERS' EQUITY: Preferred stock, no par value - - Common stock, no par value 360,912 355,615 Accumulated other comprehensive income 517 81 Accumulated deficit (302,830) (299,072) Total shareholders' equity 58,599 56,624 Total liabilities and shareholders' equity $201,140 $202,351 KRISPY KREME DOUGHNUTS, INC. CONSOLIDATED STATEMENT OF OPERATIONS (Unaudited) (In thousands, except per share amounts) Three Months Ended Nine Months Ended Nov. 2, Oct. 28, Nov. 2, Oct. 28, 2008 2007 2008 2007 Revenues $94,338 $103,355 $292,216 $318,371 Operating expenses: Direct operating expenses (exclusive of depreciation and amortization shown below) 87,143 90,911 264,926 283,239 General and administrative expenses 5,842 5,650 17,406 19,394 Depreciation and amortization expense 2,107 4,868 6,609 13,642 Impairment charges and lease termination costs 345 (268) (648) 34,504 Settlement of litigation - - - (14,930) Other operating (income) and expense, net 213 196 626 (73) Operating income (loss) (1,312) 1,998 3,297 (17,405) Interest income 65 379 287 1,224 Interest expense (2,978) (2,274) (7,341) (7,429) Loss on extinguishment of debt - - - (9,622) Equity in losses of equity method franchisees (335) (216) (685) (695) Other non-operating income and (expense), net (921) (309) 71 (263) Loss before income taxes (5,481) (422) (4,371) (34,190) Provision for income taxes (benefit) 404 376 (613) 1,046 Net loss $(5,885) $(798) $(3,758) $(35,236) Loss per common share: Basic $(.09) $(.01) $(.06) $(.55) Diluted $(.09) $(.01) $(.06) $(.55) Basic - weighted average shares outstanding 66,794 63,934 65,587 63,652 Diluted - weighted average shares outstanding 66,794 63,934 65,587 63,652 KRISPY KREME DOUGHNUTS, INC. CONSOLIDATED STATEMENT OF CASH FLOWS (Unaudited) (In thousands) Nine Months Ended Nov. 2, Oct. 28, 2008 2007 CASH FLOW FROM OPERATING ACTIVITIES: Net loss $(3,758) $(35,236) Adjustments to reconcile net loss to net cash provided by operating activities: Depreciation and amortization 6,609 13,642 Deferred income taxes (283) 206 Impairment charges (109) 33,671 Settlement of litigation - (14,930) Accrued rent expense (460) (830) (Gain) loss on disposal of property and equipment 344 (316) Share-based compensation 4,263 6,646 Provision for doubtful accounts 534 755 Amortization of deferred financing costs 701 5,856 Equity in losses of equity method franchisees 685 695 Other 244 828 Change in assets and liabilities: Receivables 2,243 1,543 Inventories 2,114 (2,297) Other current and non-current assets 7 1,227 Accounts payable and accrued liabilities (1,777) (2,788) Other long-term obligations (588) (572) Net cash provided by operating activities 10,769 8,100 CASH FLOW FROM INVESTING ACTIVITIES: Purchase of property and equipment (2,618) (4,928) Proceeds from disposals of property and equipment 427 6,751 Investment in a franchise investee (56) - Decrease in other assets 10 10 Net cash provided by (used for) investing activities (2,237) 1,833 CASH FLOW FROM FINANCING ACTIVITIES: Proceeds from issuance of long-term debt - 110,000 Repayment of long-term debt (1,673) (130,238) Deferred financing costs (434) (2,891) Proceeds from exercise of stock options 3,103 290 Repurchase of common shares (2,069) - Net cash used for financing activities (1,073) (22,839) Effect of exchange rate changes on cash (19) 83 Net increase (decrease) in cash and cash equivalents 7,440 (12,823) Cash and cash equivalents at beginning of period 24,735 36,242 Cash and cash equivalents at end of period $32,175 $23,419 KRISPY KREME DOUGHNUTS, INC. Store Count NUMBER OF STORES FACTORY SATELLITE TOTAL Three months ended November 2, 2008: AUGUST 3, 2008 286 208 494 Opened 7 30 37 Closed (11) (11) (22) Converted to factory stores 2 (2) - Converted to satellite stores - - - NOVEMBER 2, 2008 284 225 509 Nine months ended November 2, 2008: FEBRUARY 3, 2008 295 154 449 Opened 16 80 96 Closed (22) (14) (36) Converted to factory stores 2 (2) - Converted to satellite stores (7) 7 - NOVEMBER 2, 2008 284 225 509 KRISPY KREME DOUGHNUTS, INC. SELECTED OPERATING STATISTICS (Dollars in thousands) Three Months Ended Nine Months Ended Nov. 2, Oct. 28, Nov. 2, Oct. 28, 2008 2007 2008 2007 Year over year percentage change in systemwide sales (1) (1.0)% (2.6)% 1.8 % (2.0)% Average weekly sales per store (2): Company $49.9 $52.9 $51.0 $53.4 Systemwide $29.5 $36.4 $32.6 $37.7 Store operating weeks (3): Company 1,287 1,373 3,939 4,279 Systemwide 6,319 5,174 17,993 15,310 Change in same store sales (on-premises only) (4): Company (1.3)% (2.9)% (1.3)% (0.4)% Systemwide (11.8)% (6.0)% (8.3)% (3.4)% Company off-premises sales (5): Change in average weekly number of doors (5.9)% (5.7)% (7.0)% (2.1)% Change in average weekly sales per door (9.1)% (7.4)% (8.5)% (5.9)% (1) Systemwide sales, a non-GAAP financial measure, include the sales by both Company and franchise stores. The Company believes systemwide sales data is useful in assessing the overall performance of the Krispy Kreme brand and, ultimately, the performance of the Company. (2) Represents, on a Company and systemwide basis, total sales of both factory and satellite stores divided by the number of operating weeks for both factory and satellite stores. (3) Represents, on a Company and systemwide basis, the aggregate number of operating weeks for both factory and satellite stores. (4) The change in "same store sales" represents, on a Company and systemwide basis, the aggregate on-premises sales (including fundraising sales) during the current year period for all stores which had been open for more than 56 consecutive weeks (but only to the extent such sales occurred in the 57th or later week of each store's operation) divided by the aggregate on-premises sales of such stores for the comparable weeks in the preceding year period. Once a store has been open for at least 57 consecutive weeks, its sales are included in the computation of same stores sales for all subsequent periods. In the event a store is closed temporarily (for example, for remodeling) and has no sales during one or more weeks, such store's sales for the comparable weeks during the earlier or subsequent period are excluded from the same store sales computation. (5) For Company off-premises sales, "average weekly number of doors" represents the average number of customer locations to which product deliveries are made during a week by Company Stores, and "average weekly sales per door" represents the average weekly sales to each such location by Company Stores. KRISPY KREME DOUGHNUTS, INC. SEGMENT INFORMATION (In thousands) Three Months Ended Nine Months Ended Nov. 2, Oct. 28, Nov. 2, Oct. 28, 2008 2007 2008 2007 Revenues: Company Stores $64,708 $72,787 $201,961 $228,504 Franchise 6,393 5,679 19,532 15,773 KK Supply Chain: Total revenues 46,747 48,933 143,724 150,415 Less- intersegment sales elimination (23,510) (24,044) (73,001) (76,321) External KK Supply Chain revenues 23,237 24,889 70,723 74,094 Total revenues $94,338 $103,355 $292,216 $318,371 Operating income (loss): Company Stores $(4,470) $(1,855) $(8,985) $(7,187) Franchise 4,188 3,793 12,528 9,997 KK Supply Chain 5,449 5,735 17,440 19,681 Unallocated general and administrative expenses (6,134) (5,943) (18,334) (20,322) Impairment charges and lease termination costs (345) 268 648 (34,504) Settlement of litigation - - - 14,930 Total operating income (loss) $(1,312) $1,998 $3,297 $(17,405) Depreciation and amortization expense: Company Stores $1,548 $2,603 $4,854 $9,018 Franchise 21 22 64 70 KK Supply Chain 248 1,960 765 3,671 Corporate administration 290 283 926 883 Total depreciation and amortization expense $2,107 $4,868 $6,609 $13,642 Photo: http://www.newscom.com/cgi-bin/prnh/19991216/NYTH146AP Archive: http://photoarchive.ap.orgPRN Photo Desk, photodesk@prnewswire.com Krispy Kreme Doughnuts, Inc.
CONTACT: Brian K. Little of Krispy Kreme, +1-336-726-8825,

McDonald's urging franchisees to oppose card-check bill Email warns of dangers of pro-union legislation; 'will impact the McDonald’s system'

McDonald's urging franchisees to oppose card-check bill Email warns of dangers of pro-union legislation; 'will impact the McDonald’s system'
By David Sterrett


December 8, 2008 1:29 PM ET(Crain’s Chicago Business)—McDonald’s is mobilizing its U.S. restaurant owners to fight a measure in Congress supported by President-elect Barack Obama that would make it easier for workers to unionize. In a Nov. 25 memo, McDonald’s USA President Don Thompson urged 2,400 franchisees to “contact your U.S. senators and representatives to oppose” the Employee Free Choice Act. The EFCA, or “card-check” bill, would enable unions to organize a workplace by obtaining the signatures of a majority of workers on authorization cards. Current law requires secret ballots. In addition, the legislation would establish a bargaining process that could lead to binding arbitration for labor contracts. Mr. Thompson warns franchisees of the “gravity of the issue,” saying the legislation, “if enacted, will impact the McDonald’s system.” Binding arbitration, he adds, would result in worker contracts “being written by government-appointed arbitrators who are not familiar with our business and don’t have long-term accountability for the decisions they make.” With more than 600,000 U.S. restaurant workers, many earning less than $10 an hour, the chain makes an attractive target for union organizers. Unionized employees could demand higher pay and stricter work rules in McDonald’s kitchens. “This bill is a huge threat to fast food and has the ability to impact the long-term health of the industry,” says Rick Berman, a lobbyist in Washington, D.C., for the restaurant industry. Oak Brook-based McDonald’s has formed an internal “response team” to help franchisees “actively participate in the opposition to EFCA,” Mr. Thompson’s memo says. The company also is a member of the National Restaurant Assn., which, in turn, belongs to the Coalition for a Democratic Workplace. The latter group is running ads saying the card-check bill would inhibit job growth. As it fights the bill, McDonald’s must take care not to antagonize customers who may belong to or support unions. It also needs to maintain good relations with Mr. Obama and the new Democratic power structure in Washington. The company’s political action committee—which received contributions from top executives and hundreds of franchisees—distributed $197,000 to candidates during the past election cycle, government records show. As of Oct. 15, 65% of McDonald’s contributions had gone to Republicans. The remaining 35% went to Democrats, the highest portion McDonald’s PAC has given to that party since at least 1980. Mr. Thompson personally contributed $29,500 to Mr. Obama and supporting groups. McDonald’s CEO James Skinner contributed $19,800 to Republican candidate John McCain and his supporting organizations. In a statement, McDonald’s says it is “neither anti-union nor pro-union,” but declines to comment further. Unions have been almost nonexistent in fast food in the past 25 years. Labor made numerous attempts to organize McDonald’s employees in the 1970s without success. Mr. Thompson tells franchisees to reach out to employees to “build a more confident and committed team.” Removing the secret ballot requirement would have a particularly strong effect on the fast-food industry because of its high turnover rate and large percentage of young workers who may be more easily pressured by co-workers to sign union cards, Mr. Berman says. Starbucks employees have had some success organizing in the past four years with the Industrial Workers of the World. The union represents a small number of employees in six cities, including Chicago. “We would be thrilled to have an opportunity to work with McDonald’s employees on organizing,” says a spokesman for the Cincinnati-based union.
Write to the editors at fw_editor@financialweek.com.

Jamba Juice and Oatmeal

Jamba Juice joins oatmeal bandwagon
December 18, 2008
BY CHERYL V. JACKSON cjackson@suntimes.com
Jamba Juice wants to bowl over customers with its newest breakfast product. The smoothie company begins sales of oatmeal in Chicago this morning in advance of a national launch of the item next month.
Jamba, with about 700 stores, earlier this year introduced a breakfast menu nationwide.
Jamba Juice begins sales of oatmeal in Chicago Thursday morning in advance of a national launch of the item next month. (AP file)
With the oatmeal, it tries a product that's proved successful for coffee slinger Starbucks. Since its September addition oatmeal has become one of the best-selling food items in the Starbucks system, the company said.
Jamba and Starbucks join companies such as Potbelly and Corner Bakery in serving the product, playing to consumers looking for healthier, inexpensive and quick dining options.
The steel cut oatmeal, will sell for about $2.95 and come topped with sugar crumbs and bananas or apple-cinnamon or blueberry-blackberry blends.

Travel Franchise Group Shifts Leadership

The Travel Franchise Group (TTFG), with more than 1,700 franchised locations under four brands, announced that two key members of its executive management team would shift into different roles within the company.

Peter Thomson, who has served as vice president of Cruise Holidays since 2005, has been tapped to lead The Travel Franchise Group’s strategic initiatives.

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http://www.travelagentcentral.com/consortia/travel-franchise-group-shifts-leadership-11891

Irving franchisor brings assisted living to small towns

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

Continue to read at:
http://www.dallasnews.com/sharedcontent/dws/bus/stories/043008dnbuscountryplace.3b91280.html

Dubai Welcomes Fatburger

Fatburger unit has announced the opening of its first Middle East restaurant at The Dubai Mall in the most populous city of the United Arab Emirates. Fatburger Franchisee Khalil Asfour of Vetra Investments is responsible for the planned multi-unit development Fatburger in Dubai.

Continue to read at:
http://www.qsrmagazine.com/articles/news/story.phtml?id=7648