Thursday, April 23, 2009
Francorp To Exhibit at the Atlanta Franchise and Finance Exposition
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/
Wednesday, April 15, 2009
United to begin charging very obese for second seat
By Wallace Witkowski
Last update: 2:06 p.m. EDT April 15, 2009
SAN FRANCISCO (MarketWatch) -- United Airlines, operated by UAL Corp. (UAUA:
UAL Corp
UAUA 6.56, +0.51, +8.4%) , said Wednesday on its Web site that it will join other airlines and begin charging very obese passengers for a second seat. Under the new guidelines, passengers who are unable to fit into a single seat in the ticketed cabin; unable to properly buckle the seatbelt using a single seat-belt extender; or unable to put the seat's armrests down when seated will have to buy a second ticket. The guidelines apply to tickets purchased on or after March 4 for travel on or after April 15. ![]()
Christopher James Conner
Vice President
Francorp, Inc.
The Franchising Leader.
www.francorp.com / www.francorpconnect.com
BLOG: www.francorp1.com
PH: 800.372.6244 / 708.481.2900
CELL: 708.606.7260
FAX: 708.481.5885
FW: KFC Menu Change
www.chicagotribune.com/news/sns-ap-kentucky-grilled-chicken,0,414298.story
chicagotribune.com
Kentucky Grilled Chicken? KFC gambles on changing tastes in launching new option nationwide
BRUCE SCHREINER
Associated Press Writer
2:27 PM CDT, April 14, 2009
LOUISVILLE, Ky. (AP) — Would KGC ever have the same ring?
In a culinary gambit backed by buckets of big money, KFC is hoping to replicate its founder's recipe for success with the national introduction of Kentucky Grilled Chicken.
This week's rollout is KFC's most ambitious attempt to win over health-conscious customers as the chain known worldwide for fried chicken tries to reinvigorate lackluster U.S. sales.
"It's going to get people who haven't eaten KFC for a long time to come back into our restaurants," said KFC President Roger Eaton. "It's going to get people who have never eaten KFC to come into our restaurants."
Eaton says he spent years as part of the team tinkering with a grilled alternative, and the rollout follows KFC's longest market test ever. It will be backed by a marketing blitz.
Grilled chicken items are staples at some KFC competitors. McDonald's Corp. offers grilled chicken in sandwiches and wraps, and says chicken sales "continue to be extremely good." McDonald's has also recently been emphasizing its new Southern Style Crispy Chicken sandwich, which is fried. Chick-fil-A says its Chargrilled Chicken Sandwich "continues to grow rapidly" as part of a menu offering "balanced choices" for customers.
KFC's slow-grilled chicken drew strong reviews from the lunchtime crowd Monday at a KFC restaurant in Louisville, the chain's hometown. Eddie Collard proclaimed grilled better than fried.
"I think the colonel would be happy," Collard said of KFC founder Colonel Harland Sanders.
Like its predecessor, Kentucky Grilled Chicken has its own secret recipe. The original copy of the recipe — a blend of six herbs and spices — will be kept in an electronic safe at company headquarters. It will sit alongside Sanders' handwritten recipe of 11 herbs and spices coating the chain's Original Recipe fried chicken.
The difference is in the nutritional numbers.
KFC says each piece of its grilled chicken has 70 to 180 calories and four to nine grams of fat. By contrast, the Original Recipe items have between 110 and 370 calories and 7 to 21 grams of fat, depending on the piece. The grilled chicken contains from 160 to 440 milligrams of sodium per piece, as opposed to 290 to 1,050 milligrams of sodium per piece of Original Recipe chicken.
Michael Jacobson, executive director of the Center for Science in the Public Interest, a Washington-based advocate for nutrition and health, called the grilled introduction a "major step in the right direction."
While applauding the reduction in sodium, Jacobson said the 440 milligrams listed by KFC in a grilled chicken breast still amounts to more than one-fourth the amount that someone middle aged or older should consume daily.
KFC has launched non-fried chicken before, but each prior initiative flopped. In the early 1990s, it introduced a rotisserie-style chicken that fell by the wayside due to equipment problems and long cooking times. A tender roast product followed but lasted only a couple of years.
Eaton said the difference this time is partly in the cooking process. Chicken is cooked on grill racks in custom-designed ovens in a patented process that takes about 20 minutes per batch.
The grilled chicken rollout is offered only at KFC stores in the United States, though Eaton said the product may eventually expand to international markets.
KFC had 5,166 U.S. stores at the end of 2008. All but about 100 franchise stores are selling grilled chicken, the company said. Some stores couldn't fit the oven into their kitchens, and in other cases franchisees opted not to sell the product, the company said.
KFC won't say how much the ovens cost, but Eaton said the company helped franchisees with the expense and would have made such an investment only if it was "incredibly confident about the outcome."
Larry Miller, a restaurant analyst with RBC Capital Markets, said expanding beyond its fried staple offers a huge opportunity for KFC. But perceptions won't be easy to change.
"They still have the credibility barrier to overcome," Miller said. While achievable, "it's tough when your name has 'fried' in the middle."
In late 2008, Yum Brands Chairman and CEO David C. Novak said KFC had been a drag on the company's U.S. performance while sister brands Pizza Hut and Taco Bell had a good year.
Miller said this week that Yum would hit "the trifecta" if it turns around KFC's U.S. sales.
Mike Ash, who ate a grilled chicken lunch at the Louisville KFC, remembered the rotisserie chicken as "mushy and bland." He liked the new grilled offering, having picked it to the bone.
He said he might be more apt to pick up a bucket of chicken on his way home, though he predicted he might still "fall off the wagon every now and then" and choose the fried option.
The grilled chicken will cost the same as Original Recipe chicken. KFC will offer customers a free piece of grilled chicken on April 27.
But the push for grilled chicken doesn't mean KFC is abandoning its roots, Eaton said. The chain is testing new fried chicken products, and remains committed to its core product.
"It would be incredibly arrogant to think we could create a product that could supersede Original Recipe chicken," Eaton said. "But this product is easily good enough to sit alongside it."
___
AP Business Writer Lauren Shepherd in New York contributed to this report.
Tom DuFore
Executive Vice President
Francorp, Inc.
The Franchising Leader.
www.francorp.com / www.francorpconnect.com
BLOG: www.francorp1.com
PH: 800.372.6244 / 708.481.2900
CELL: 708.606.7264
FAX: 708.481.5885
Monday, April 6, 2009
The Scariest Monster of All Sues for Trademark Infringement
Fancy Audio-Cable Outfit Defends Its Brands; A Mini Golf Course Fights Back
Article
Comments (62)
more in US »
By STEVE STECKLOW
When Christina and Patrick Vitagliano dreamed up their Monster Mini Golf franchises -- 18-hole, indoor putting greens straddled by glow-in-the-dark statues of ghouls and gargoyles -- they never imagined that a California maker of high-end audio cables would object.
But Monster Cable Products Inc., which holds more than 70 trademarks on the word monster, challenged the Vitaglianos' trademark applications. It filed a federal lawsuit against their company in California and demanded the Rhode Island couple surrender the name and pay at least $80,000 for the right to use it.
"It really seemed absurd," says Ms. Vitagliano.
Video
Watch the YouTube video of Monster Cable's Mr. Lee and Monster Mini Golf's Ms. Vitagliano.
The legal actions were nothing new for Monster Cable, which was granted its first "Monster" trademark in 1980. Since then, the company has fought more monsters than Godzilla did.
Over the years, it has gone after purveyors of monster-branded auto transmissions, slot machines, glue, carpet-cleaning machines and an energy drink, as well as a woman who sells "Junk Food Monster" kids' T-shirts that promote good eating habits. It sued Monster.com over the job-hunting Web site's name and Walt Disney Co. over products tied to the film "Monsters Inc." It opposed the Boston Red Sox trademark applications for seats and hot dogs named for the Green Monster, the legendary left-field wall in Fenway Park. All in all, Monster Cable says it has fought about 190 monster battles at the U.S. Patent and Trademark Office and filed around 30 monster lawsuits in federal courts.
Along the way, it has attracted its share of ire from those who say it is overreaching and trying to corner the market on a word, not a brand. "If Monster Cable prevails, the Gila monster will become just another lizard" and "the monster under your bed will have to become an ogre," wrote Michael Meadors of tabberone.com, a Web site that sells fabrics and also keeps tabs on trademark issues.
"Monster Cable's practice of suing anyone using the word 'Monster' in their name is nothing short of playground bullying," says Robert Holloway, a computer contractor in Iowa who set up a Web site called monstercablebully.com to support the Vitaglianos.
Monster Cable says its trademark challenges are a matter of necessity. "If you don't defend your mark, and people use [it], it runs the risk of becoming generic and then you lose the mark," says Noel Lee, founder of the Brisbane, Calif., company, whose corporate title is "Head Monster." Mr. Lee says the company sells many other monster-branded products besides cables that it has to protect, including music, clothing and candy mints.
To a legal novice, it may seem odd that a common word like monster can be trademarked at all. But in the complex and sometimes murky world of trademark law, common words can be registered, provided they are associated with specific classes of goods. Apple Inc., for example, holds trademarks for the word apple when it's related to computer products, not fruit.
Sometimes, trademarks can obtain a higher order of protection, known as "famous marks." This category is supposed to be reserved for words that have become so entwined with a product and a company -- like the word visa and Visa Inc.'s credit card -- that the trademark owner can argue that no other product may use the word in its name.
David Tognotti, Monster Cable's general manager and an attorney, says the company considers "Monster" a famous mark -- on a par with Barbie dolls or Camel cigarettes. "We're protecting our mark as if it's a famous mark," he said in an interview in Monster Cable's headquarters, where the walls are lined with framed copies of the company's trademarks and patents.
Mr. Tognotti cited a chapter on famous marks in the law book "McCarthy on Trademarks and Unfair Competition" by J. Thomas McCarthy, a noted expert in the field.
But in an interview, Prof. McCarthy expressed doubt that Monster Cable possesses a famous mark. He said such determinations are made by courts. Mr. Tognotti acknowledges Monster Cable hasn't obtained such a court ruling.
Most of the company's lawsuits have been settled privately under confidential terms. In some instances -- such as the case of the Discovery Channel's reality auto show, Monster Garage -- companies have surrendered their trademarks to Monster Cable, which sometimes licenses them back for a fee. Discovery Channel declined to comment. The show is no longer in production.
In its federal civil lawsuit against Monster.com, Mr. Tognotti says owner Monster Worldwide Inc. agreed to pay Monster Cable's legal fees and post a clickable link to its Web site on Monster.com that says, "Looking for Monster Cable?" A spokesman for Monster Worldwide acknowledged the lawsuit was resolved but wouldn't discuss details.
A Disney spokesman says the company settled the lawsuit over Monster Inc.-related products without paying any compensation. Mr. Tognotti of Monster Cable says his company dropped the lawsuit after determining there was no trademark infringement.
He says Monster Cable has no plans to pursue the new DreamWorks Animation film, "Monsters vs Aliens." Says Mr. Tognotti: "We do not have a concern if a company is using the word 'monster' in a purely descriptive sense to describe actual monsters."
As for the Red Sox, Mr. Tognotti says the team agreed to withdraw or modify some of its trademark registrations for Green Monster-related products after Monster Cable argued there was "confusion in the marketplace." At the time, San Francisco's Candlestick Park was called Monster Park because Monster Cable had bought the naming rights. A Red Sox attorney referred questions to Major League Baseball, where a spokesman said the team had agreed with Monster Cable over a "procedural matter" but declined to elaborate.
Occasionally, Monster Cable has retreated. After it sued MonsterVintage LLC, an online used-clothing store based in Oregon, owner Victor Petrucci says he drove a rented truck to Monster Cable's headquarters and around San Francisco for two weeks. It was emblazoned with a giant sign that read in part, "Monster Cable S-." Monster Cable dropped the lawsuit.
"We have to balance what we do legally to protect our mark with that of public opinion," says Mr. Lee, adding, "We're very sensitive to our reputation."
The Vitaglianos say their monstrous fight erupted in 2006, two years after the couple opened their first mini-golf course. "It never occurred to me that a cable company might not like it," she says. Adds her husband, "We just all assumed it was going to go away."
Their attorney, Arthur L. Pressman, says he suggested they consider changing the name to Scary Mary's Monster Mini Golf to play down the word monster. But the couple refused to back down. By late last year, with their legal bills approaching $100,000, they agreed to try mediation. But after 10 hours, "we got really angry and sort of stormed away," says Ms. Vitagliano.
The couple then launched an Internet-based guerrilla campaign to generate public support. "We blogged nonstop, around the clock, for weeks, and enlisted much of our staff to do the same," she says. The couple offered to sell symbolic slices of "Justice" for $1 on eBay and raised about $4,400 for their legal defense. Two days before Christmas, she sent Mr. Lee a DVD of the film, "How the Grinch Stole Christmas."
Monster Cable's Mr. Lee says the company also received at least 200 angry consumer complaints. After speaking with the Vitaglianos, he decided to drop the lawsuit, withdraw his company's opposition to Monster Mini Golf's trademark applications and pay up to $200,000 of their legal expenses.
Tuesday, March 31, 2009
Francorp - Franchise Business Planning
Franchising a company is a big decision and a major change in direction for most companies. The good franchise systems are ones that plan appropriately and put together the pieces before they get into this game. As the saying goes, you either “when you fail to plan you are planning to fail”. The same holds true for franchising. Good franchise endeavors have great franchise business plans. So what constitutes a good franchise business plan?
The key ingredients include several pieces, like any good recipe, if some of the ingredients are left out the final product just won’t taste right, which in franchise business planning that means big problems. The franchise business plan sets the stage for a franchise expansion program. It literally acts as the foundation upon which the house will be built. Everything in the franchise program should have uniformity and continuity with what is defined and determined in the franchise business plan.
The franchise business plan should begin with goals and objectives. What is the purpose of franchising? What is the goal for the company and where do you plan on being in five years? These goals will set the standards for the plan and identify how you intend to get there. You then should establish the buyer profile, who will be purchasing these franchises and opening up locations of your operation? The better franchise plans have more specific descriptions. Bad example: “middle aged person with income around $100k”. Good example: Female, ages 35-45, experience with children preferable age ranges between 5-12 years old, married, existing capital of $100k, sales ability, work ethic, married at least 5 years….etc.”. Get specific in the franchise business plan, that means you are honing in on your targets.
We then need to define the business issues of the franchise model. What will a territory look like for the franchisees? We don’t want to overcrowd markets and we also don’t want to give away business. Franchising is about saturation, take advantage of all market opportunities. After the franchisees have been established it will be extremely critical to have an ongoing support program for the people who have committed their futures to this franchise organization. Good franchise business plans clearly identify the training programs, processes and materials that will be used to get franchisees up and running and then to keep them happy and successful once in the system. With this comes hiring management and support staff. The franchise business plan should clearly identify who, when and what role they will fill in the franchise organization. The type of business will dictate how many people and at what times in the franchise expansion they should be brought on board.
The franchise business plan should also go into specifics regarding the franchise fee structure. What will the franchise fee be for this model? What will the royalty percentage be……and why? Will there be an advertising budget set to build the brand and if so what is the buy in for the franchisee to be a part of that co-op ad fund? If there are products included in the franchise system that the franchisor would like to sell through franchisees what is the distribution structure for delivering and supporting that part of the franchise system? All of this should be clearly outlined in the franchise business plan.
In the end, a complete set of pro-formas and financials should be established to define the ROI for both the franchisee and the franchisor. This can be used as an investment tool, to raise capital and most importantly as a road map for running and operating the franchise operation as the system grows.
Saturday, March 21, 2009
Toxic Asset Plan
by Politico.com
Saturday March 21, 2009, 12:59 AM
Treasury Secretary Tim Geithner will announce a plan early next week to relieve failing banks of their toxic assets by attracting back private investors rather than have the government buy up all the risk, according to officials familiar with the plan. Private investors, including hedge funds, will be able to bid on the assets using a pool of capital from the investors and the government, with taxpayers sharing in profits or losses. The plan uses up to $100 billion of taxpayer funds to leverage up to $1 trillion in private capital, the officials said. “We’re creating a market, not bailing out banks,” said an official briefed on the plan. “Because we’re creating a market, we’re letting the private sector set the price, which will likely be below purchase price but above what government would get for them. “ Here is how it would work: —A Treasury/Federal Reserve /FDIC Purchase Facility will provide funding to purchase real estate-related legacy assets. —Public-Private Capital will co-invest, initially at up to $500 billion, expanding to $1 trillion over time. —Private Sector Pricing: Private sector buyers determine price for currently troubled and previously illiquid assets. The government estimates bank balance sheets that currently have at least $2 trillion in “legacy” (toxic) assets that originated in 2005 and 2006. “All of this is based on private investment – that’s what is so innovative about it,” the official said. “We are using the private sector to help us stabilize the system, which saves taxpayer dollars. Government has never done this before. Taxpayers are protected because they share in all the profit, and investors share in all the loss. So there is a huge incentive to make good, careful investments.” Treasury has taken action to deal with three big problems fueling the economic meltdown—falling home prices, frozen credit markets, lack of confidence and capital in the banks—and now is taking on toxic assets.
The officials explained the problem the plan is aimed at correcting: The bursting of the housing bubble caused losses for financial institutions on residential mortgages and related securities. Those losses resulted in the need to reduce risk and leverage. As a result, institutions were forced to sell, causing further price declines. This fueled further deleveraging, creating a bad cycle. This has reduced banks' ability to lend—because these loans are stuck on bank balances sheets because of a large gap between banks' carrying values and market prices. This makes it difficult for banks to access the private markets to access new capital. And, since there's no secondary market for these assets, they've become frozen.
Thursday, March 19, 2009
Francorp Client Brake King
By Ashley Kelly 247-4778
March 19, 2009
-->NEWPORT NEWS — Since Brake King opened in 1966, the company has gone from having two auto bays to 21.And customer demand continues to grow despite the recession. Now the Hutchisons are expanding the family business by franchising."We knew we had to expand for our customers," said company vice president Bubba Hutchison, who said Brake King currently serves more than 35,000 people. "In the past month we've had customers come from Richmond, Woodbridge and Dale City (near Manassas). It's almost like we felt obligated to expand."The company has received about 60 inquiries since January from people considering buying a store, Hutchison said. Current plans call for the company to license four franchises, located between Richmond and the Outer Banks, by the end of the year.
Each franchise is being sold for $50,000. Brake King will receive 5 percent of the gross sales of each store. Hutchison said the franchises will range from 4,000 to 10,000 square feet. The Jefferson Avenue shop is 15,000 square feet.The company originally wanted to award eight franchises by the end of this year, but the recession caused Brake King to scale the number down to four. In five years the company plans to have 50 stores operating, Hutchison said.The strain that the economy has put on banks has made it difficult for people to secure loans or get credit, a challenge that Brake King faces while trying to sell franchises."We're in the worst recession in years. There is such volatility in the market that a lot of people have the money, but they're just sitting on it." he said.Brake King expanding in the recession may seem risky to some, but is not uncommon."It's either expand or perish, that's the American way," said Patrick Callaway, president of Francorp, a franchise consulting company based in Illinois."There are businesses that are operating in spite of this recession. After all, we all have cars and need to replace our brakes, recession or no recession."Hutchison did not want to grow the family business by opening other shops locally and hiring managers."We realized we wanted owners, not managers," he said. "We wanted people that have real skin in the game. People who are vested in the business."Hutchison said it's also about putting the family business into the right hands."Just because someone has the money doesn't mean they have a franchise .... The challenge is finding the right people, not just people that have the capital."