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

Francorp Client - Nathan's Famous

Nathan's Famous annual net income up 18%
9th June 2008
By Staff Writer
Nathan's Famous, which operates and franchises fast food units, has reported a net income of $6.55 million, or $1.01 per share for the fiscal year ended March 30, 2008, an 18.3% increase compared to $5.54 million, or $0.87 per share for the fiscal 2007.

Income from continuing operations was $4.85 million, or $0.75 per share for the fiscal year ended March 30, 2008, an 11.7% increase compared to $4.34 million, or $0.68 per share for the fiscal 2007.
Total revenue from continuing operations increased by 10.3% to $47.39 million for the fiscal year ended March 30, 2008, compared to $42.97 million in fiscal 2007.
For the fourth quarter ended March 30, 2008, income from continuing operations was $774,000 or $0.12 per share as compared to $824,000 or $0.13 per share for the same period of 2007. The company reported total revenue from continuing operations of $10.27 million, a 14.6% increase compared to $8.96 million for the same period of 2007.
Net income for the fourth quarter ended March 30, 2008 was $752,000 or $0.12 per share, as compared to $1.24 million or $0.19 per share for the same period of 2007.

Panera Bread Company

Time to make the dough …Ronald M. Shaich, CEO of Panera Bread Co. and alumnus of the class of 1976 at Clark University, got his start in business in Worcester.

As a student, Mr. Shaich saw the need on campus for a source of snacks and essentials. So, he founded the General Store, which remained a student-run store at Clark until 2003. Five years after graduating from Clark with a degree in government-international relations and two years after earning a master’s degree in business administration from Harvard Business School, Mr. Shaich, co-founder, chairman, and chief executive officer of Panera Bread Co., began his career in the bakery-café industry when he opened a small cookie store in downtown Boston. Shortly thereafter, he combined his cookie store operations with a local bakery to co-found Au Bon Pain Co. Inc. In 1993, Mr. Shaich led Au Bon Pain’s purchase of a 19-location bakery-café concept called St. Louis Bread Co., and launched the comprehensive revamp of St. Louis Bread. Under Mr. Shaich’s leadership, the average business volume at St. Louis Bread increased by 75 percent between 1993 and 1997, the year St. Louis Bread began its national expansion using the name Panera Bread Co.

In 1999, Mr. Shaich decided to sell all of Au Bon Pain’s business units, including the flagship Au Bon Pain brand, betting the future of the company on the growth of Panera Bread. The entire company was renamed Panera Bread. Last year, Panera Bread had more than 1,200 bakery-cafés and has been ranked No. 1 by J.D. Power and Associates out of 110 companies for customer satisfaction. “We’re doing the highest volumes of any food-service company outside of casual dining. That’s 20 percent more than a McDonald’s,” Mr. Shaich said. In his 25-plus years as CEO, Mr. Shaich has received widespread recognition for his leadership and, in 2005, he received the International Foodservice Manufacturers Association’s Gold Plate Award as the outstanding leader in the food service industry that year. But everyone knows there’s always a Worcester connection: Mr. Shaich continued his involvement with his alma mater as chairman of Clark’s board of trustees from 1998 to 2001, and continues to support the school where it all started. Poetry to our earsIf you haven’t had the opportunity to meet Worcester poet laureate Gertrude Halstead, here’s your chance. Worcester Polytechnic Institute and the Worcester County Poetry Association will help Miss Halstead celebrate her 92nd birthday during “Rare Readings” from 2 to 3:30 p.m. July 20 in the Higgins House, on John Wing Drive off Salisbury Street, Worcester. During this free event, which is open to the public, Miss Halstead will read from her book “memories … like burrs” which recalls her incredible escape from Nazi Germany during World War II. She will be joined by Sam Cornish, poet laureate of Boston, who will read the title poem from “Generations,” which is about the “wonders and woes” of urban life and is the best known of his many published volumes. Olympiad of academiaWhen athletes compete in the 2008 Olympic Games in Beijing next month, a group of Nichols College students the same age as some of the competitors will be able to relate to its theme, “One World, One Dream.” “Being on top of the Great Wall of China was a life-changing experience I will never forget,” said senior Ryan Johnston, who recently returned from a 13-day trip to China with other students, alums, faculty and staff of the Dudley school. Mr. Johnston said he was truly impressed by how friendly and accessible the Chinese people were and most enjoyed talking to average Joes on the street, most of whom spoke at least a little English. Libba Moore, associate dean for business, was “fascinated with artifacts from three incredibly different political regimes: emperors and dynasties, Mao’s Communist China, and the contemporary transition to a leading capitalist power today.” Dawn Sherman, assistant dean for special academic programs, couldn’t believe that there were KFC restaurants on practically every corner. After suffering from a sinus infection early in the trip, Miss Sherman was relieved to run into a group of Curry College nurses who were working at a local hospital and advised her on a change in medication. It was professor Rick Hilliard’s third trip to China, but the signs “Everybody Does Every Job” and “This Is a Communist Workshop” stood out to him. Pat Hertzfeld, associate vice president for finance, was startled by China’s wholehearted embrace of internationalization, as evident in the use of English on most signs. “And the spaces are huge. Tiananmen Square holds over a million people. I couldn’t possibly show its true size by taking pictures. We Americans have never seen building on this scale.” The trip’s focus was to examine international business in Beijing, Xi’an, Shanghai and Hong Kong, but it also included visits to important historic and cultural sites. How do I love thee?Rather than reading about the classics, a group of Fitchburg State College students is traveling the road to Verona, made famous as the home of Romeo and Juliet, in the region of the northern Italy with a well-preserved artistic heritage of the Roman, Medieval, Renaissance and Modern periods. The Center for Italian Culture at Fitchburg State College has awarded $12,000 in scholarships for students to pursue studies in Italian language and culture. Scholarship recipients are: Jeffrey Andree, Stephanie Aguilar, Nicholas Asilo, Megan Benevides, Kate-Lynn Coraccio, Joana Dos Santos, Nathan Fiske, Katrina Gigante, Katie Gowell, Rachael McWeeney, Genna Sandler, Matthew Tomasetti, Amanda Valcourt, Sara Viola and Erik Weikert. Twelve students will use the scholarship money to study in Verona as part of the college’s summer study abroad program; others will put the money toward tuition and fees. The Center for Italian Culture at Fitchburg State College was established in 1999 by Amelia Gallucci-Cirio, class of 1938. “Amelia’s history with Fitchburg State began in 1934, when she received a scholarship of $150, a considerable amount in 1934, and it enabled her to attend Fitchburg State,” said Anna Mazzaferro, advisory board president for the Center for Italian Culture It’s never too lateAmerica’s largest undergraduate transfer scholarship has been awarded to recent Quinsigamond Community College graduate Gerard Boucher. The Jack Kent Cooke Foundation scholarship awards up to $30,000 per year to help students transfer from community colleges to complete their bachelor’s degrees at a four-year institution. Mr. Boucher plans to attend Clark University to pursue psychology/therapy, psychology and human services. After 14 years drug- and alcohol-free, Mr. Boucher became a counselor and plans to improve himself academically in order to help more people. “No matter how far someone has strayed from social norms, they are redeemable, recoverable human beings,” said Mr. Boucher. He said he knows this not only because he once might have been deemed “unrecoverable,” but also from his years of experience with others who found themselves in similar situations. Helping handsInstead of jumping into the work force, more than a few Assumption College 2008 graduates have committed to a year or more of volunteer service: Allyse Gruslin will work with inner-city high school students who come to St. Gabriel’s Spiritual Center for Youth on Shelter Island, N.Y., for retreats and other spiritual opportunities. Next month, Caitlyn Jones will head to orientation for the Jesuit Volunteer Corps. Meghan Lovett is completing the Providence Alliance for Catholic Teachers program this summer, and in the fall will teach math and science to middle-schoolers at St. James-St. John School in New Bedford, while working on her master’s degree in school administration at Providence College. Angela Martano will head to Denver in October to work with AmeriCorps National Civilian Community Corps, which focuses on disaster relief, environmental aid, educational needs and public safety. She could be assigned to a project anywhere in the United States, wherever there is need. Jaclyn Sargent will volunteer with City Year New Hampshire to tutor at-risk middle school students, work with an after-school program, and direct service projects.

Francorp - QSR Magazine

ARTICLE FROM QSR MAGAZINE – JULY 2008


FRANCHISING: By Laura Tutor


THE GOLD RUSH
Tapping into global franchising opportunities offers a respite from U.S. economic woes.

Nick Vojnovic is betting that somewhere in Brazil there’s a city in need of an American-style neighborhood sports pub. There are families in Brazil. Most people – old and young – are involved in activities that take them into the country’s vibrant city centers. And market research shows a lack of consistent restaurants that offer a reliable, franchisable product.

As president of Beef O’Brady’s, Vojnovic and others looking to grow the brand are casting their eyes southward to find new markets for franchise expansion in the hope of offsetting a downturn in the U.S. restaurant industry that experts say will last another two years.

“We definitely are very bearish right now,” says Vojnovic. “Oil, the housing market, the overall economy…consumers are really pulling back.”

Scanning the first-quarter sales of quick-serve, fast-casual, and full-service dining reveals that almost every major franchise or national brand has negative sales numbers when compared with previous years.

Responding with slowing consumer spending, many franchisors have put the brakes on franchise sales expansion plans in the U.S. At franchising trade shows, developers looking to buy franchises are increasingly coming from farther afield. The U.S. economy might be stalled, but the demand for U.S. food – specifically its franchised restaurants – has never been greater.

“The money is out there,” says Patrick Callaway, president of Francorp, itself an internationally franchised company in the business of helping other companies franchise. “At trade shows, they are stacked with international opportunities.”

One reason global franchising is attractive to franchisors is simply because an oncoming recession has made it harder for Americans to buy a franchise. In past recessions, Callaway says, franchise sales picked up as workers and professionals leery of mainstream business wanted to take more control of their financial futures. They bought a franchise to get some security. This time, however, the credit crunch and collapse of the housing market has made banks reluctant to finance such ventures.

Overseas entrepreneurs don’t have this problem. They have money and are willing to buy an imported expertise and business formula, Callaway says.

Dunkin’ Donuts, Starbucks, and McDonald’s are among the biggest brands that have emphasized their global intentions, both in opening new stores and increasing sales in existing markets. Dunkin’ announced in January its plan to open 100 stores in mainland China over the next 10 years. A month later, Starbucks announced that former Starbucks executive Arthur Rubinfeld was back to serve as president of global development, a new position charged with site selection, design, and creative concepting for Starbucks stores worldwide. While not franchised, Starbucks’ global emphasis is seen as a bell cow for U.S. products overseas.

McDonald’s turned in double-digit first-quarter profits for its stockholders based largely on comparable global sales and its international performance. One analyst pointed out that half of McDonald’s profits were generated from international sales.

Dunkin’ already has a presence in 31 countries, and President and Chief Brand Officer Will Kussell describes its plans as “expanding globally at a robust pace.” The key, he said during the company’s China expansion announcement in January, was finding a good international operating partner.

Vojnovic and his group are looking for that partner, too. He says Beef O’Brady’s is in the process of interviewing consultants to help find an international developer to help the U.S. franchisor avoid many of the mistakes that some other, earlier franchises have encountered. Ideally, Vojnovic says, the partner would be someone with U.S. foodservice experience.

“There are pitfalls out there, if you don’t know where to look,” Vojnovic says. “In the Middle East, you have to close so many times a day. You need to worry about communication so many time zones away from the home office. What about supply lines? We really see finding that partner as the key step.”

Callaway, who in April released the book Franchising Your Business with his grandfather and co-author, Donald Boroian, says it’s essential for U.S. franchisors to find a local connection to help a brand deal with any cultural concerns. If a restaurant is going into an international market, someone needs to read the signage, the menus, and the promotions to make sure nothing is lost or changed in translation. Some color schemes aren’t acceptable in certain countries, and décor will make or break a U.S. venture in a new market.

Beyond finding that partner, a few other considerations come into play. For instance, the dollar’s current value in the rest of the world means those fees that had been exorbitant in years past are now more affordable. While many U.S. franchisors might hope to find a multiunit developer, may international partners might be interested initially in only one or two units.

Callaway and Boroian’s book advises brands considering a global expansion to study the infrastructure in their potential markets. That includes local business customs, demographic trends, and consumer habits. That same litmus test must be applied to training employees, and it can be as basic as making sure portion sizes are scaled right for the culture.

They also advise against going for a big, one-time fee. Not only can that price a franchisor out of a country’s economic setting, it might also scare off potential franchisees that could bring a lot to the organization. Royalties and advertising plans need to be scaled for the local market; often that means adjusting expectations from what’s been the norm in the U.S. or Canada operations.

One element U.S. franchisors won’t have to fear on their first international venture is a reluctance to buy.

“In spite of the political negativity – or a negative opinion of U.S. politics right now – our brands, our country, and our business concepts are highly respected,” Callaway says.

The food is not always so much the emphasis, Callaway says, as the U.S. culture. He explains that a cup of Starbucks costs three times as much in some overseas markets as the prices consumers pay in the U.S. Haagen Dazs ice cream in China sells for $4; a slice of Pizza Hut pizza goes for $10.

Vojnovic says his company will keep fairly close to home on this maiden voyage. Mexico has a population of 140 million, of which 20 percent eat out on a regular basis. Yet, only 2 percent of the country’s restaurants are franchised.

“They want the consistency, the branding power of franchised concepts,” Vojnovic says. “Most have not got that vision.”

Francorp Client - Pulte Homes

Pulte Homes, Inc., through its subsidiaries, engages in the homebuilding and financial services businesses primarily in the United States. The company's homebuilding business involves in the acquisition and development of land for residential purposes within the continental United States and Puerto Rico; and the construction of housing on such land for the first-time, first and second move-up, and active adult home buyers. As of December 31, 2007, the company's homebuilding operations offered homes for sale in 636 communities. In addition, its financial services operations consist of mortgage banking and title operations. The company arranges financing through the origination of mortgage loans for its homebuyers; sells such loans and the related servicing rights; and provides title insurance policies as an agent, and examination and closing services to its home buyers. Pulte Homes was founded in 1956 and is headquartered in Bloomfield Hills, Michigan.

Francorp Dubai - Midas

Midas Furniture Teams-Up with Francorp to Develop Its Franchise

Kuwait, Kuwait, October 17, 2007 --(PR.com)-- Midas Furniture has signed an agreement with the American company Francorp through its Middle East regional office in Dubai. According to the agreement, Francorp will design a special program to develop a franchise system for Midas, who plans to expand regionally and globally through franchising, or what is known as brand sale and franchising rights.

Through this ambitious program, Midas Furniture plans to develop and prepare itself for regional and global expansion and open new branches to compete with multinational companies specialized in the furniture industry. This step is taken after Midas’s successful 15-year experience in the Kuwaiti market, where it has secured a considerable market share, acquired customer satisfaction for its quality products and services. The company is known in Kuwait by offering affordable, high-quality furniture and accessories which appeal to all tastes making it one of Kuwait’s largest home and office furniture retailers.

The agreement was signed between Khaldoon Al Khammach, President of Midas, and Imad Charafeddine, Regional Business Development Manager at Francorp Middle East.

“Our massive success in Kuwait and Jordan represents a platform for us to move forward,” said Khaldoon. “We are planning to cross borders towards regional markets as a preliminary step to expand to international markets. We intend to position ourselves over the coming years as a leading brand in the region.”

“We, at Francorp, are very delighted to see franchises expand in the region,” commented Imad Charafeddine., Regional Business Development Manager at Francorp Middle East. “Franchising is becoming a necessity for many local businesses aiming at achieving more business successes. It is observed that the awareness of the importance of franchising is increasing day by day. Successful local businesses started to realize its great benefits and the positive impact it has on their business development. Franchise is one of the most effective options which takes ambitious companies to new destinations and accelerate their expansion within the global markets, especially from emerging markets such as the Middle East.”

“We are also pleased to add Midas Furniture to our premier client list and to offer them our consultancy for their expansion program. This is also due to their remarkable success as industry leaders in the Kuwaiti market, and now it is the opportunity to duplicate their local success at both regional and global levels. It is our commitment now to use our long experience to offer a comprehensive franchising program to Midas Furniture,” added Imad Charafeddine.

“We have teamed-up with the US-based Francorp, the leader in franchise development and consultation, because of their vast experience that goes back to 30 years and their track record in the sale of franchise rights and development programs along with their experience in this region,” concluded Khaldoon.

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

###


Contact Information
Francorp Middle East
Alda Solamia
+97143297675
pr@francorp.ae
www.francorp.ae

Pizza Inn Celebrates 50 Years

Pizza Inn Celebrates 50th AnniversaryMonday July 7, 6:32 pm ET Pizza Inn Icon 'Jo Jo' Set to Return in 'Moustache Monday' Promotion
THE COLONY, Texas, July 7, 2008 (PRIME NEWSWIRE) -- For fifty years, Pizza Inn (NasdaqCM:PZZI - News) has served its Original Thin crust pizza and sweet ice tea to millions of customers following big games, first dates, break-ups and make-ups as well as swell birthday parties. To commemorate the chain's many contributions to the American experience, Pizza Inn will begin a two-month anniversary celebration beginning in July at participating domestic buffet and delivery-carryout locations.

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

The Oracle of Omaha and Dairy Queen

THE ORACLE OF OMAHA GETS HIS JUST DESSERTS Warren Buffett stops by his favorite local Dairy Queen(R) to enjoy the debut of the Dairy Queen Girl Scouts Thin Mint Cookie Blizzard(R) with Omaha Girl Scout Molly Maloy, 10. The Girl Scouts Thin Mint Cookie Blizzard(R) is available nationwide at Dairy Queens throughout July. This is the first time that Dairy Queen has merged its iconic Blizzard Flavor Treat with the best-selling Girl Scouts cookie ever, Thin Mint. (Photo: Business Wire)

Dairy Queen

Summary
International Dairy Queen (IDQ) has been supplying brain-freezes for almost 70 years. The company is a leading franchiser of frozen treat stores, with more than 5,600 Dairy Queen quick-service restaurants popular for their ice cream treats, including Blizzards, sundaes, and cones. Many of the stores also serve burgers, fries, and other items. A small number of units are company-owned. In addition, IDQ franchises about 400 Orange Julius locations serving blended fruit drinks, and a small number of Karmelkorn stands offering a variety of popcorn treats. IDQ franchisees operate in the US, Canada, and 20 other countries. Tracing its roots back to 1938, the company is owned by Warren Buffett's Berkshire Hathaway. More from Hoovers »
7505 Metro Blvd. Minneapolis, MN 55439 USA +1-952-830-0200 (Phone)952-830-0273 (Fax)
Company website:http://www.dairyqueen.com

Franchising in India

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

Franchise Basics

Franchise Basics Are you thinking about buying a franchise? We've got all the information you need to help you decide whether franchising is right for you.
Franchise Basics
Are you thinking about buying a franchise? We've got all the information you need to help you decide whether franchising is right for you.

If buying an existing business doesn't sound right for you but starting from scratch sounds a bit intimidating, you could be suited for franchise ownership. What is a franchise--and how do you know if you're right for one? Essentially, a franchisee pays an initial fee and ongoing royalties to a franchisor. In return, the franchisee gains the use of a trademark, ongoing support from the franchisor, and the right to use the franchisor's system of doing business and sell its products or services.
In addition to a well-known brand name, buying a franchise offers many other advantages that aren't available to the entrepreneur starting a business from scratch. Perhaps the most significant is that you get a proven system of operation and training in how to use it. New franchisees can avoid a lot of the mistakes start-up entrepreneurs typically make because the franchisor has already perfected daily operations through trial and error.
Reputable franchisors conduct market research before selling a new outlet, so you'll feel greater confidence that there is a demand for the product or service. Failing to do adequate market research is one of the biggest mistakes independent entrepreneurs typically make; as a franchisee, it's done for you. The franchisor also provides you a clear picture of the competition and how to differentiate yourself from them.
Content Continues Below
document.writeln(AAMB2);

Finally, franchisees enjoy the benefit of strength in numbers. You'll gain from economics of scale in buying materials, supplies and services, such as advertising, as well as in negotiating for locations and lease terms. By comparison, independent operators have to negotiate on their own, usually getting less favorable terms. Some suppliers won't deal with new businesses or will reject your business because your account isn't big enough.

Francorp Clients - Math Monkey

Math Monkey Honored

Math Monkey has been awarded the winner of the 7th Asia Pacific International Entrepreneur Excellence Award 2008 under the category of Emerging Entrepreneur. Math Monkey teaches children concepts based on the principles of Vedic math from India. At the Knowledge Centers, children ages six to fourteen use Vedic math to solve mathematic problems within seconds-without the use of paper or a calculator. Fully aware of the role franchising consultants could play in their success, Math Monkey turned to Francorp in 2005. Together, they developed a simple and unique business system designed for franchisees who are passionate about children.

www.mathmonkey.com

www.francorpconnect.com

Francorp Clients - Beadniks

Beadniks Joins Mall of America

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

Denny's

Denny's announces new organizational structure
13th June 2008
By Staff Writer
Denny's, a family-style restaurant chain, has redesigned its organizational structure to support its ongoing transition to a franchise-focused business model.
RELATED ARTICLES
Denny's and Pilot Travel Centers announce partnership10 Oct 2007
Denny's Q3 same-store sales rise11 Oct 2007
Denny's appoints new board members22 May 2008
Denny's $3.8 million growth in Q1 net income1 May 2008
Denny's Q1 system-wide same-store sales down16 Apr 2008
According to the company, it has completed an extensive review of its organizational structure. In April, the firm realigned its senior leadership with three executive officers reporting to the CEO. The company has restructured the organization under this leadership to effectively execute its new strategic direction with primary emphasis on sales, brand and franchise.
Additionally, the company has created four regional vice presidents of operations (RVP) positions that will have accountability for the performance of both company and franchise restaurants within a geographic region. The RVP's and their support teams will manage an integrated effort to drive guest counts, sales and profitability while ensuring operational excellence.
The new organizational structure increases brand and franchisee support, but also allows for consolidation of certain departments and job functions resulting in the near-term elimination of approximately 50 positions, the company said.
As a result of these staff reductions, the company expects to incur a restructuring charge attributable to severance and other expense of approximately $5 million in the second quarter of 2008, which will be paid out over the next 12 months.
Nelson Marchioli, president and CEO of Denny's, said: "Through the success of Denny's franchise growth initiative, the mix of franchised restaurants in the Denny's system is now up to 76%. In our quest to become a franchisor-of-choice in the restaurant industry, we must continue to evolve our corporate structure and mission to focus on driving sales, expanding the brand and providing valuable support to our franchisees."

Realty Franchises

BY ROBERT FREEDMAN2003 Franchise report, plus the five emerging companies

Is it time to brand your company? For many companies in the last year, the answer has been yes. The country’s residential real estate franchise companies are seeing healthy growth, an exclusive REALTOR® Magazine survey shows. Many of the national and regional franchisors surveyed posted gains in franchisees. The study also tracks companies, including Howard Hanna Co. and Long & Foster Real Estate, that license their brand name and services to affiliated offices. Of the three Cendant brands—Century 21, Coldwell Banker, and ERA—Coldwell Banker led the Cendant pack and the national franchises, reporting 150 new offices and 14,700 new associates in the past year. Those additions bring its totals to 3,400 and 104,900, respectively. Regional franchisors saw growth, too. In a typical case, Crye-Leike based in Memphis, Tenn., added four offices and 167 associates within the past year, giving it a total of 66 company-owned and franchised offices with 2,367 associates. This year we cover 26 companies that offer franchising or licensing opportunities—up from 21 last year. In addition to these, watch for five emerging players we’re beginning to track—from Realty United in Cary, N.C., which has just one office but hopes to grow nationwide through a profit-sharing model, to West USA Realty in Phoenix, which has grown in two years to 12 offices and nearly 2,000 sales associates with the help of Web-based transaction and lead management.

Rug Decor

Rug Decor Franchise Recognized by Entrepreneur Magazine




February 1, 2008 - St. Louis, MO – Rug Décor, the nation’s leading rug retail franchise, announces it’s inaugural ranking in the Entrepreneur Franchise 500 listing. With an overall ranking of No. 369, the company is the highest ranking specialty floorcovering retailer within the esteemed list.


“Rug Décor fills a gap in the home furnishings market and by offering a huge selection of quality area rugs at great prices,” said Mark Jameson, vice president of franchise development with Rug Décor. “Our dedication to perfecting our turnkey business model and raising the bar in specialty retailing will continue to play a great role as Rug Décor continues its growth.”


Entrepreneur considers many factors in determining its rankings. Among the most important criteria are financial strength and stability, growth rate and size of the system. Also considered are the number of years in business and length of time franchising, start-up costs, litigation, and percentage of terminations and whether the company provides financing. All companies, regardless of size, are judged by the same criteria.


The company plans to have a strong placement in the ranking again in 2009 due to expansion plans calling for 40 new locations by the end of 2009.


Entrepreneurs interested in Rug Décor franchise investment opportunities can contact Mark Jameson at 800-466-6984, ext. 1136 or by email at mjameson@ccaglobal.com.



About Rug Decor

Rug Decor is a growing system of specialty retail stores selling branded, fashion oriented area rugs with operations in 37 markets throughout the United States. Backed by strong buying power among its affiliates, Rug Decor carries a selection of thousands of affordable area rug choices from the leading and private brands, including Kathy Ireland, Karastan, Urban Renaissance and Andy Warhol to compliment any room design theme. Purchased by CCA Global Partners in 2000, Rug Decor began franchising in June of 2000. Stores are available to qualified candidates in a limited number of U.S. markets. For Rug Decor franchise opportunities, please contact Mark Jameson at 800-466-6984, ext. 1136 or email him at mjameson@ccaglobal.com. Visit the company’s website at www.rugdecor.com


# # #

Francorp Middle East

Francorp Middle East is a Key Sponsor for the Franchise, Investment and Business Opportunities Expo being held in Amman, Jordan. Francorp International President, Ramon Vinay will be the Keynote speaker for the conference. Francorp works with International groups and conferences around the world to continue the education and further the marketplace for franchising globally.

FIBE is the Franchise, Investment and Business Opportunities Expo, which is going to be held in Amman, Jordan at the Zara Expo Exhibitions Center in the duration between October 21st & October 23rd of 2008.

FIBE has the aim of fomenting and helping to expand Jordan’s possibilities providing a Proffessional atmosphere for Jordanian companies and SME’s to interact and create new business opportunities.

This Trade show’s main objective is to demonstrate the franchise and license experience to entrepreneurs and investors from around the world. It is a meeting point to launch new franchise systems, appoint master licensees /
franchisees, seek new local franchisees in the Jordanian market and support existing ones in one of the world’s fastest growing markets. FIBE offers a world of exciting opportunities to International franchisers to access the thriving Middle East and North Africa (MENA) market and launch their franchise concepts.

The trade show facilitates direct communication between entrepreneurs and Potential franchise buyers from the Region and beyond - Jordan, G.C.C. countries, Iraq & other Middle East countries & North African nations.

Pulsating Middle East Market: Industry analysts have estimated that the Middle East Region generates franchise-driven revenues of US $30 billion*.
www.ameinfo.com

Exhibitor Manual
Overview
Why Jordan?
. Stability and security
. Unique and strategic location.
. International agreements accessing a market of one billion customers.
. Member of WTO.
. Jordan-US Free Trade Agreement (FTA).
. Qualifying Industrial Zone (QIZ) Agreement.
. Greater Arab Free Trade Agreement.
. Euro-Jordanian Association Agreement.
. Agadir Agreement.
. Jordan-EFTA FTA.
. Jordan-Singapore FTA.
. Qualified and competitive human resources.
. Over 91% literacy rate.
. 192,000 students currently enrolled in universities.
. 17% of the population receives higher education.
. 24 universities (14 private, 10 public).
. 60 community colleges.
. 35 vocational training centers training over 10,000 people each year.
. Competitive wage structure.
. Competitive cost of doing business .
. Macroeconomic stability: 6.4% GDP growth rate in 2006 compared to 4.1% in 2000,
External Debt as a % Percentage of GDP down from 189% in 1990 to 51.9% in 2006.
· Investment incentives and tax exemptions
· Free zones, special economic zones and industrial estates.
· Transparency and rule of law
· World class infrastructure and communications.
· Good quality of life and nice weather
· World Investment Report 2007 (UNCTAD)
. Jordan has moved from an under performer in 1988-1990, to below potential in 1993- 1995, and has been a front runner since 2000.
. Jordan ranks 8 in the Inward FDI Performance Index Common reasons for exhibiting
. Generating sales leads.
. Meet thousands of new buyers and develop a quality database
. Generating actual sales at the show.
. Enhancing your image and visibility.
. Reaching a specific audience.
. Establishing a presence in the marketplace.
. Improving the effectiveness and efficiency of your marketing efforts.
. Personally meeting your customers, competitors and suppliers.
. Prospecting for new customers.
. Introducing new products and services.
. Demonstrating your product in ways not possible using other marketing channels.
. Recruiting distributors or dealers.
. Educating your target audience.

Franchise, Investments & Business Expo Zara Expo - Grand Hyatt Amman October 21-23, 2008
ConXepts Event Management Tel: +962 6 5530253 Fax: +962 6 5520419 www.conxepts.info info@conxepts.info
Place Sticker Here
Exhibitor and Visitor Profiles
Exhibitor Profile
. Automobile Services
. Banks
. Beauty aids and Saloons
. Business Services
. Cafes
. Child Care Services
. Cleaning Services
. Clothing and Designer Wear
. Computer and Internet Services
. Consumer Goods
. Courier Services
. Distribution and Logistics
. Education
. Fashion, Apparels and Accessories
. Fast Food, Restaurants and Catering
. Financial Services
. Footwear
. Franchise Consultation Services
. Gifts and Greetings
. Health care and Medical Services
. Home Furnishing
. Investment Services
. Leisure & Entertainment
. Office Equipment and Services
. Print & Publishing
. Real Estate
. Retailing
. Trade Events
. Wealth Management Companies
Visitor Profile
. Analysts - Business & Industry
. Business Development Managers
. Corporate Management, Directors and General
Managers
. Entrepreneurs
. Experts in Retail, Foreign Trade, Marketing and
Brand Management
. Investment Consultants & Venture Capitalists
. Master Licensees
. Media
. Owners looking for expansion /diversification
. Potential franchise buyers
. Small & Medium Enterprises (SME)
Schedule of events
Event Date Time
Build-up 19 Oct 08 9:00 am - 9:00 pm
Move-in 20 Oct 08 9:00 am - 9:00 pm
Exhibition open 21-23 Oct 08 11:00 am - 9:00 pm
Gala Dinner 23 Oct 08 9:00 pm - 11:00 pm
Move-out 24 Oct 08 9:00 pm - 9:00 pm
FIBE Conference
The conference is scheduled for three days and ongoing alongside the exhibition.
Specialized speakers from Jordan and the world are going to be giving seminars, workshops
and presentations on major important topics related to each themed day of the conference.
Day 1: Jordan, The new investment destination in the Middle East.
Day 2: Aqaba, the special economic investments haven.
Day 3: Franchising A to Z.
Each session is an open forum or workshop – interaction with speakers and other audience
members is key in producing a meaningful discussion. We encourage thought-provoking
questions as well as creative solutions to complex problems based on previous experiences.
This program is specifically designed for investors and senior executives interested in
learning more about opening new businesses in Jordan. This is a “must attend” event for
anyone involved in the investment or manufacturing or the franchise businesses including
Presidents, CEOs, Vice Presidents, Directors, Managers, Development and sales executives
and entrepreneurs.
Day 1: Jordan, The new investment destination in the Middle East
1. Benefits of investing in Jordan:
Introduction on the Jordanian economical history and market also to the significant investment
incentives including the international agreements and the Jordanian Investment Law.
2. Main investment sectors and opportunities in Jordan:
An overview of the main sectors for potential investment.
3. Start your own investment in Jordan (workshop):
• How to register and license a project: Introduction to the procedures and requirements
needed to carry out an investment project in Jordan.
• How to apply for exemptions under investment promotion law: Practical lessons, step by
step on starting a successful investment in Jordan.
Franchise, Investments & Business Expo Zara Expo - Grand Hyatt Amman October 21-23, 2008
ConXepts Event Management Tel: +962 6 5530253 Fax: +962 6 5520419 www.conxepts.info info@conxepts.info
Place Sticker Here
FIBE Conference
Day 2: Aqaba, the special economic investments haven
1. Why Invest In Aqaba?
This seminar is ideal for foreign and domestic business owners interested in investing in
Aqaba; it offers information about prime locations for investments in Jordan and in particular,
Aqaba Special Economic Zone (ASEZ).
2. Investment Opportunities In Aqaba
A balancing act was sought between developing Aqaba as a tourist destination and maximizing
the use of Aqaba as a ‘Port City’ with advantages for export industries and services.
3. Start your own investment in Aqaba
Special Economic Zone (workshop):
• How to register and license a project: Introduction to the procedures and requirements
needed to carry out an investment project in Aqaba Special Economic Zone.
• How to apply for exemptions under investment promotion law: Practical lessons, step by
step on starting a successful investment in ASEZ.
• How to obtain all the necessary Public Safety, Health, Environment, Zoning and Operation
Permits, required before commencing operation in the Zone.
• How to obtain all necessary forms for requesting land, work, visa and residency permits for
foreign labor
Day 3: Franchising A to Z
1. How to Franchise Your Existing Business
This seminar is ideal for business owners interested in franchising or those simply looking to
determine if franchising is a legitimate growth option.
2. The A to Z’s of Buying a Franchise
This seminar is designed to help prospective franchisees as they evaluate the many different
opportunities available to them. From finding a franchise that’s right for you, to asking
questions of the franchisor and franchisees, to understanding the franchising legal documents,
this seminar prepares you to acquire a franchise opportunity with confidence.
3. Financing Your Franchise
In this seminar, speakers from a number of institutions will discuss how to use financing as
a tool to help you achieve your goals through business ownership. Financing opportunities
available to you through the program and equipment leasing, as well as other potential
financing options will be addressed.
4. Helping Franchise Systems Succeed
Avoiding the pitfalls encountered in the early stages of franchising; this breakout session will
provide business and legal advice geared toward the emerging franchisor.
Venue Details
4000 square meters covered exhibition area
Business offices available
Internet and telephone facilities
24 hour security
Conference facilities
Multilingual translators and hostesses
Custom stand contracting
Multimedia systems
Catering and food outlets
Booking Information
By Fax
Please send your booking requirements by fax
to the exhibition management at:
+ 962 (6) 5520419
By E-mail
To book via e-mail please write to
booking@fibexpo.com
Online Booking
to book online please visit
www.fibexpo.com
and fill out the booking form
For further information please contact
the organizers:
Conxepts Event Management
P.O. Box 36252 Amman 11120 -Jordan
Tel: +962 6 5530253
Fax: +962 6 5520419
www.conxepts.info
info@conxepts.info
General Information

Francorp Client - Friendly's Ice Cream

Press Releases - Ice Cream and Smoothie FranchisesEstablished Restaurateur Will Open 12 Restaurants in Raleigh-Durham,Wilmington and Lumberton.WILBRAHAM, Mass. (December 4, 2006) - - Friendly’s Restaurants Franchise, Inc., one of America’s most successful restaurant franchises, today announced that it will significantly expand its presence in North Carolina through a development agreement with established restaurateur Cliford E. Bullard, Jr. Under the development agreement, Bullard will open three Friendly’s restaurants in the Raleigh-Durham, Wilmington and Lumberton markets with the option for nine additional restaurants. The first restaurant is scheduled to open in Lumberton by the end of June 2007, and all 12 locations will be open by June 2013. Friendly’s current North Carolina location is in Huntersville. Cliford “Clif” Bullard, Jr., has more than 25 years of multi-concept restaurant experience. He owns and operates 19 Burger King and eight Smithfield’s Chicken ‘n Barbecue franchises, primarily in North and South Carolina.“We have long regarded North Carolina as an extremely important strategic market for Friendly’s, and in Clif Bullard we believe we have found the perfect partner to expand our presence here,” said Jim Sullivan, vice president, franchising and real estate development. “Clif’s record as a restaurateur speaks for itself. With his operations expertise and his understanding of local store marketing, he was an ideal choice for Friendly’s and we are confident that he and his team will help make the Friendly’s brand a tremendous success in North Carolina.” Friendly’s, named among the nation’s 25 top performing franchises by the Wall Street Journal, opened its first location in Springfield, Mass., in 1935 and now has more than 500 locations in 16 states.“With delicious food and signature ice cream offered in a concept with five day-parts, the opportunity for volume and growth is outstanding. Friendly’s top-notch marketing and operations teams offer the complete package of products and support services needed in today’s marketplace.”Each Friendly’s will bring additional jobs and tax revenues to the local area. “I’m looking forward to making Friendly’s an active and valued part of the Raleigh-Durham, Wilmington, and Lumberton communities,” Bullard added. The announcement is part of an ongoing franchise expansion strategy by Friendly’s, which has announced plans for 23 restaurants in the last 10 months. Friendly Ice Cream Corporation (Amex: FRN) is a vertically integrated restaurant company serving signature sandwiches, entrees and ice cream desserts in a friendly, family environment in more than 515 company and franchised restaurants throughout the Northeast. The company also manufactures ice cream, which is distributed through more than 4,500 supermarkets and other retail locations. With a 71-year operating history, Friendly's enjoys strong brand recognition and is currently revitalizing its restaurants and introducing new products to grow its customer base.

Starting a Business in a Down Economy

Starting Up in a Down Economy
Nobody loves a recession*. But many successful entrepreneurs say that, in retrospect, they were lucky to have launched their businesses in tough times.
By: Ryan McCarthy, Nadine Heintz, Bo Burlingham
Published May 2008

Case Study No. 1: How Method Weathered the Dot-com Bust
* A recession is commonly defined as two consecutive quarters during which the country's gross domestic product shrinks. It is too soon to say whether the economy is in a recession now.
When they look back on the early days of their start-up, Adam Lowry and Eric Ryan remember that a lot of potential investors laughed at them. The Bay Area, where they were living, was awash in Internet start-ups. Each week in 2000 brought another glitzy launch party or news that the scantest of business plans had attracted venture capital. Even office landlords were demanding equity from their dot-com tenants. Lowry and Ryan, who wanted to start a company to make -- of all things -- humdrum household products, were decidedly out of step with the times. "You had the sense that there was this real historical thing going on in the region, even if it was not going to end well," says Ryan.

Still, Ryan and Lowry felt they had a good idea. Method, their start-up, wouldn't sell just any household products. Its soap and cleaning supplies would be made from environmentally friendly ingredients and would come in chic packaging. Compared with the products of giants like Procter & Gamble (NYSE:PG) and Clorox (NYSE:CLX), Method's merchandise would be hip. So the partners passed on interesting and potentially lucrative job offers and pooled $100,000 in personal savings to get started.

You know what happened next: The go-go New Economy abruptly ran out of steam. Dot-coms ran out of money, layoffs were rampant, and the entire city of San Francisco seemed to suffer from an economic hangover. People started to worry openly about a recession.
Like most business owners facing hard times, Lowry and Ryan focused on their costs. They were expert bootstrappers, mixing cleaning solution in a bathtub, bottling it themselves, and driving around town to restock shelves. They would accost any store manager who would listen to their spiel. They returned to some stores three and four times before they got an order, and little by little their sales pitch improved. And the partners noticed something else: Compared with the situation a year before, when there seemed to be five start-ups for every idea for a business, the competition was relatively muted. "Starting a business in a recession is like vacationing in the off-season," says Ryan. "It's a little less crowded, and everything starts going on sale."
By spring of 2001, Lowry and Ryan had gotten small-batch production on track and had hired a CEO named Alastair Dorward. But Method's debt stood at $300,000, split among the three men's personal credit cards. Payments to their vendors were three or four months past due, and at one point Lowry and Ryan had just $16 left in the bank. "We had to appeal to the inner entrepreneur of each of our vendors," says Lowry. "We had to sell them on the fact that Eric and I could do something that had never been done before."

Lowry and Ryan also tried again to raise money, and with VCs falling out of love with dot-coms, they found that there was more interest in their idea. In early September 2001, the partners received a term sheet for $1 million -- a sum that would allow Method to get current on its bills and then begin to expand. They were set to close the round on September 11. Needless to say, the deal didn't go through right away; the partners finally closed in November. And there were some serious strings attached. Lowry and Ryan would receive $550,000 up front. Of that money, the legal fees associated with the transaction would eat up $110,000, and $300,000 would go to pay outstanding vendors' bills. That left Method with $140,000 in capital. To get their hands on the remaining $450,000, Lowry and Ryan were obliged to meet a key milestone: They would have to add distribution to 800 stores by March, which was just five months away.
The tenuous nature of Method's financial situation was underscored at the dinner Lowry, Ryan, and Dorward hosted to celebrate the deal. The partners gathered their investors plus their lawyers and accountants at an expensive restaurant in San Francisco. When the bill came, Lowry's credit card was declined. Then Ryan's card was declined. And Dorward's. Their backup cards were declined, too. "It's a good thing Eric knew the owner of the restaurant," says Lowry. "We convinced him we were good for it -- that that guy over there was about to give us a million bucks."

Method did make it into 800 stores by March -- though just barely. When Lowry and Ryan got the remainder of their Series A funding, they paid off old accounts and then jumped right back into fundraising mode. With the recession in full swing, venture capitalists were being very picky when it came to making new investments. But Method, which had been ignored barely 18 months earlier, was suddenly a Bay Area darling. "It was really interesting," says Lowry. "We used to be completely off investors' radar screen, but when the bubble burst, people were clamoring for us. Our business plan wasn't some sort of ad-based or online thing that was hard to understand. Our model was, 'Hey, we're going to make this cool product, and if you think we can sell a lot of it, then it's a good investment."

Being able to raise money in 2001 undoubtedly put Method on the growth path. By 2006, the company had $71 million in sales, and today the founders are pushing to reach $100 million. But Lowry and Ryan look at the period before they raised money, when they struggled and nearly drowned, as pivotal. In retrospect, the fact that they had to hone their pitch in countless meetings with store managers and vendors was fortuitous. They were practiced enough that by the time their big break came -- pitching Target for national distribution -- they didn't blow it. Which raises the question: Did the recession actually make Method better? The founders think so. As Ryan puts it, "The hungriest wolves hunt best."

Francorp Client - Spectrum Home Services

Spectrum Home Services is a Francorp Client that began working with Francorp in 2003 In just a few short years they already have nearly 40 locations and continue to grow. They are a service franchise company that specializes in home cleaning, maid service, lawn services, handyman services, senior care services, and relocation services. They were recently featured in the San Diego Business Journal and it talks about how this franchise is a good option in today's economy. Spectrum Home Services can be found at www.spectrumhomeservices.com.

If you are considering franchising your business and would like to talk with professional franchise consultants, please visit to www.francorp.com.

Posted date: 3/31/2008
Franchise Ownership Offers Comfort in Tough Economy
Franchising Has $1 Trillion Impact on Economy, Report Says
By LIZ WIEDEMANN
San Diego Business Journal Staff
http://www.sdbj.com/industry_article.asp?aID=53045197.9287073.1605825.6295696.9942067.936&lid=&sid=&cid=&page=1

A period of economic uncertainty is not the time to sink one’s life savings into a restaurant or shop, but it may be the perfect time to consider owning a service franchise, according to local franchise consultant Cheri Carroll.
One factor in franchise choices is home equity — how many new franchisees financed their businesses in the past, she says.
“Since equity loans aren’t as available or as generous as they once were, service businesses with their much lower entry costs offer a path that many are taking to beat the economic blues,” said Carroll.
An 11-year volunteer with the San Diego chapter of Score, a nonprofit organization providing free consulting and inexpensive workshops for small businesses and new startups, Carroll was recruited by Score to provide franchise expertise.
“While a franchised sandwich shop may cost $120,000 or more for the build-out and equipment, or $300,000 for a retail shop, a service business can cost as little as $20,000 to get started, with almost no overhead,” she said.
Some growing service businesses among San Diegans are Gurnee, Ill.-based BrightStar Healthcare and Sandy, Utah-based Spectrum Home Services, which offer nonmedical services to seniors such as running errands and yard cleaning.
Consulting businesses such as the Carlsbad-based Expense Reduction Analyst, along with executive training services such as the La Jolla-based Renaissance Executive Forums also offer popular franchising opportunities, says Blair Nicol, president of the Louisville, Ky.-based Franchise Network Group’s San Diego and Orange County operations.


The Numbers
With a countywide unemployment rate of about 5 percent in the first two months of 2008, up from about 4 percent in early 2007, according to the Employment Development Department of California, franchising is bigger than ever in San Diego, says Nicol.
Franchise businesses now make up $1 trillion in U.S. direct economic output, according to an International Franchise Association report sponsored by the U.S. Small Business Administration.
More than 3,000 companies are franchising nationally, and franchise businesses account for more than 50 percent of total retail revenue, according to the report, which was released in March.
“High-level executives are saying they don’t want to go through layoffs again, so, ready to leave the corporate world, they’re using severance packages to start a business,” Nicol said.
He says that former business executives are ideal candidates for franchising because they can apply their existing skill sets in a white-collar environment, while investing between $80,000 and $100,000 in office-based types of franchises such as executive coaching, financial consulting and information technology businesses, as opposed to a storefront business that costs a minimum of twice the money.

Ruben Garcia, district director of SBA’s San Diego office, says that he cautions potential business owners to be ready for the challenge.
“Only a small percentage of business owners are franchisees,” he said.
“The tried-and-true format and trademark you’ll use as a franchisee is certainly the benefit, but those same regulations are going to limit the leverage, the freedom that you may have considered a benefit to owning a business,” Garcia said.
He says that some executives coming out of corporate America like the strategic action plan franchising offers because it mimics the business world with which they are familiar.
“It’s not just about having the capital; it’s energy, skills, time and the capability to put up with all the nuances of starting a business,” he said.
The No. 1 tip for budding franchisees is to know and love the product, according to Carroll. “If you’re considering a high sales business, but you hate sales, choose something else — no matter how much money other people are making in that business,” Carroll said.
Because of the night-and-day effort required at the beginning of opening a franchise, Carroll says that passion for the mundane tasks at hand is the biggest factor in choosing the right business.
In the wake of corporate downsizing, or perhaps chasing a dream of autonomy in the workplace, San Diegans might be surprised to find harbor in the franchising arena.