Francorp Client Success in 2009

Francorp Client Success in 2009.

Francorp Clients continue with great success through difficult economic times! Recently in the past months Entreprenuer has again released the coveted Franchise 500 list, which is a documented list of the fastest growing 500 franchise systems in the U.S. Each year companies and professionals in the franchise industry wait anxciously to see who has made the list, which industries are growing quickly and how all the top franchise companies are doing currently.

Francorp is acknowledged as the industry leader in franchise development and consulting work in launching and developing new and existing franchise concepts and organizations. Francorp has been in business for over 33 years with almost 20 offices around the world. Clients have included McDonald's, Kentucky Fried Chicken, Auntie Anne's, Omni Hotels, Jimmy Johns, 800-Flowers and many others. This year on the Franchise 500 list, Francorp has 112 clients with whom the firm has worked with at some point, or continues to work with.

112 of the top 500 fastest growing franchise systems have worked with Francorp Consulting.

Francorp works with companies of all sizes and years in the franchise business. Here are some of Francorp's more recent clients who are experienceing success right now in 2009. These are franchise systems that will in the years to come gain more and more exposure, but for right now are just getting a foothold in the market.

Patrice and Associates, www.PatriceandAssociates.com - 3 franchises sold in 2009 Hot Box Pizza, www.gethotboxpizza.com – first franchise soldPlay Party, www.playparty.net – first franchiseAdvanced Maintenance, www.advancedmaint.com – 7th locationSofi’s Crepes, www.sofiscrepes.com – 3rd location -1st franchise in 2009Al’s Beef and Nancy’s Pizza, www.alsbeef.com - 6 Franchises sold in 2009

For more information on other great franchise concepts and on how to franchise a business, visit Francorp's corporate site, www.francorp.com.

New Francorp Videos

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

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

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

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

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

Krispy Kreme Closings Are Possible Amid Loss

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


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

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

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

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

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

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

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

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


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

Francorp Attends The Restaurant Finance and Development Conference in Las Vegas, NV

FRANCORP CAPITAL

Francorp has an entire division of the company that is focused on financing for restaurants and small businesses - Francorp Capital. Francorp's Vice President, Mr. Senn Sodweidel attended the show and focused on several different forums to discuss financial options in today's economy. With the current financial crisis, finding capital for new businesses and new franchises is one of the most critical and foremost issues to be aware of right now.

Francorp Capital was formed with the purpose of supplying Francorp clients franchisees with the financing they need to open their operations. With the current economic and financial climate it takes some creative methods to get the financing for new franchisees. Francorp is on the front line of working with financial groups and banking institutions to organize and arrange for Francorp clients to get the newest and most current techniques and strategies for getting funding for their buyers. Here is an overview of the conference and what was included in the discussion forums.

The Restaurant Finance & Development Conference is the largest industry event that is exclusively focused on the finance side of the restaurant business. Designed for multi-unit restaurant operators and senior executives, the conference has become the “must attend” for so many in the industry. Don’t miss your chance to be part of this networking and dealmaking event!
Attend this year's Restaurant Dealmaker’s Event.
Register Online Today!

Capital—The Restaurant Finance & Development Conference is the restaurant industry's top financial forum for growth-minded restaurant company owners and executives, to meet with banks, finance companies, brokerage firms, real estate developers, investment bankers and other financial intermediaries—with a focus on the financing and deal-making opportunities available in the restaurant industry. This conference is the restaurant industry's premier business networking event and also offers expert speakers on the "business side" of the restaurant industry and what it takes to succeed in today's business environment.
Growth—The Restaurant Finance and Development Conference is where attendees meet and network with the many financing sources available to national, regional, chain, and independent multiple-unit restaurant operators. Representatives from banks, finance and leasing companies, real estate syndicators, brokerage firms and investors specializing in restaurant financing will preview their 2009 financing programs during the Finance & Development Mall. You'll meet with lenders and investors to discuss your financing and development needs. In addition, the Mall provides an opportunity for growth-minded operators to preview multi-unit franchise and joint venture opportunities and also find other financial services. The conference offers financial programs which feature practical financial and development topics presented by restaurant finance experts. The conference's professional atmosphere attracts the top restaurant operators and financial dealmakers in the world.

Who Should Attend? Owners and operators of multi-unit restaurant chains including senior restaurant executives in finance, accounting, development, legal, real estate and franchising. Also invited are consultants, investors, brokers, bankers, developers, accountants, attorneys and financial dealmakers who serve the restaurant industry.
Contacts—The top restaurant operators in the nation attend the annual Restaurant Finance & Development Conference. Attendees have the opportunity to learn from America's top financial minds about business strategy, mergers, acquisitions and investment. The nation's leading growth restaurant companies including franchisors, franchisees and multi-unit independents, send representatives to the conference each year. Many companies hold their annual planning meetings at the conference. Restaurant owners and executives make deals, find financing and re-charge their professional batteries at this conference. This is the one restaurant industry event of the year that you can't afford to miss! The networking at the Restaurant Finance & Development Conference is better than any other restaurant industry event you'll attend!

http://www.francorp.com/

Francorp Continues to Grow

Francorp's Chairman, Don Boroian held a meeting three weeks ago with the entire staff of 60 people at Francorp. The meeting was focused on the economy and the direction of our business, country and global economy. Mr. Boroian is extremely well read, he goes through 6 papers every day and reads numerous publications focusing on the economy and economic news.

He voiced some of the concerns that every American is going through right now. Where is the light at the end of the tunnel here? What is tomorrow going to look like? When could I possibly retire with all these swings in the market? Don Boroian has not acheived all of the successes and accolades he has compiled in his 55 years of business by being one of the "flock". Mr. Boroian expressed an extreme displeasure with the media and their focus on the negative aspects of our economy. Mr. Boroian spoke of the negative effects. "When an average consumer hears a news report that talks of doom and gloom, they don't go on that vacation or buy that car they were thinking about getting." It is a vicious cycle, the consumer's behavior is driven by the information they have, right now it is all negative information about the economy.
We see many companies downsizing and shrinking their businesses as a result. We then have less employment and therefore less spending. Mr. Boroian pointed out that of course there are some deep underlying economic issues at hand here, but the fact is that we create our own destiny. If we succomb to the media and the swirl of negative publicity, then we ourselves will fall into that trap.

Don Boroian is a bold person. He throughout his life has made decisions and moves with his business and clients that others would not have the gumption to do. As a result, he is Chairman of the world's largest franchise consulting firm, Francorp. Prior to Francorp Mr. Boroian created an industry in the music business by franchising a chain of music operations. He also did the same in the restaurant industry. It is this temperment for tumultuous times where most business owners are "pulling in their horns" that Don Boroian makes aggressive moves.
It was announced at the Francorp meeting that we would be bringing on some new staff. Could this really be true? That when all the news and publicity is saying that every company in America is faltering and Francorp is hiring new people?
Mr. Boroian mentioned, that now, more than ever, Francorp clients need the resources and attention of Francorp staff. Look at the world's most successful investors, they make their moves when the market is down...not when it's up! Having been in business for almost 33 years, Francorp has seen several recessions and market downturns, this is nothing new to Don Boroian.
Francorp has recently hired Gail Doonan on full time as Regional Director Administrator. Ms. Doonan brings over 30 years of business experience to Francorp and Francorp clients. She has owned her own businesses and successfully managed client projects for some time. Ms. Doonan will be working closely with the Francorp Regional Directors, who are a nationwide network of franchise brokers and franchise sales people.
Francorp also recently brought on Tiffany Franco as a full time person. Ms. Franco works closely with Mr. Christopher J. Conner, Vice President of Francorp Consulting. Ms. Franco brings over 10 years of business experience to the consulting firm.
Francorp will also be adding some additional staff to support and manage client development. Mr. Boroian closed the meeting with Francorp Staff with a final thought. "As long as we can continue to develop successful clients who sell franchises, Francorp will continue to sit at the top of it's industry. Everything we do is to be of the highest quality workmanship and nothing leaves this building without every bit of our effort and attention. At Francorp, the client is king."

http://www.francorp.com/

http://www.francorpconnect.com/

Francorp, Francorp, Francorp

There are three important things to remember when choosing a company to work with as a franchise consulting group.

One: Make sure that the company has it's resources in house. The internet and evasive marketing can cloud the fact that many franchise consultants do not have an in-house consulting team. Why is this important? Because you don't want to play general contractor on your franchise development project. The business owner and entrepreneur should not have to be tracking people down throughout the development of their program. Francorp has an all in-house team that does not outsource any part of the franchise development. Francorp is the only franchise consulting firm that has an in-house legal staff. This is important because the franchise attorneys should be involved in all aspects of the franchise development process, the business planning, the operations development, the marketing materials, the website design and throughout the planning of the project.

Two: Depth and Resources. What happens if you hire an individual consultant or "Group" of consultants when the consultant working on your project decides to retire, take a vacation or has other work to attend to? The fact is that you need a team of experienced people who have depth and the resources to provide a complete consulting service. Francorp has been in operation for 33 years and worked with thousands of franchisors, the company is not going anywhere and will be here tomorrow. This is important because a new franchise company needs the guidance for years after they are introduced to the market.

Three: Experience and Diversity of Work. When developing a new franchise organization every company is unique and different, it is important that there is no magic pill for creating a successful franchise company. Each business and company has it's own philosophies, culture and business model. The franchise consulting company should have a broad range of clients and work that they have done in order to draw from that experience and impliment the appropriate strategies and structure for their franchise organization. Why is this important? There are many franchise consultants out there who associate themselves with franchise systems they worked on while with other companies, they played a part in the development but did not run the projects or oversee the implimentation of the programs. Even other consultants claim work on franchise projects that in reality they played little or no part in the development of the critical aspects of the franchise program. Francorp brings more experience and a more extensive client list than any other franchise consulting organization. The depth and extent to which Francorp has worked with franchise systems of all kinds is unmatched by anyone in the market.

Go to the Francorp site for more information on the firm, Francorp clients, Francorp processes, Francorp testimonials and Francorp's executive team.

www.francorp.com

Francorp also lists many of its clients for marketing and franchise sales purposes on its web portal. Here Francorp clients can generate leads and create a market presence.

www.francorpconnect.com

Francorp also has a strong international presence in 13 countries representing over 40 different countries around the world. Francorp is the only franchise consulting firm that has franchised it's own operations internationally.

www.francorpinternational.com

Francorp also provides financing for many of its clients franchisees. This is critical in most markets and from a marketing and franchise sales perspective it is very important that Francorp clients can offer this to their franchisees.

www.francorpcapital.com

Papa Johns Creative Approach to Out-of-Stocks

Papa John's Creative Approach To Out-of-Stocks
Written by Evan Schuman October 9, 2008

It's 9 PM on a Saturday night and Bill hits the E-Commerce site of his local pizza parlor to order a pie with a pineapple and anchovy topping. The site knows his favorite orders and his payment data and his order is quickly processed, but it flashes a message that they just ran out of pineapple and would he care for an alternative topping.With the new Web site that $1 billion Pappa John's launched this week, restaurant workers update the site to a topping out-of-stock by calling a headquarters call center, which sends a message to have the site updated for that specific restaurant. But the chain is preparing for a much faster system, where store employees could tell its POS system about running out of pineapple as easily as ringing up a cheesesteak to go.In the world of retail, restaurants—and especially pizza chains—have unusual challenges. Take out-of-stocks, for instance. That traditionally refers to a completed item, such as running out of red bicycles when the last of 70 in stock are sold. POS can talk with inventory and know how many are in stock and can assume an out-of-stock when the last one is sold.But in a pizza chain, pepperoni and sausage and other toppings are not wrung up individually, other than as a topping. Theoretically, the POS could assume strict measurement adherence, knowing that the storeroom has 100 pounds of pineapple and that that is enough for maybe 1,000 pineapple pizzas. Things are rarely that precise, with some workers throwing on more or less and then there are the pepperoni slices that fall on the floor.The only accurate way to work out such a system would be to allow workers to key in such shortages when they happen.Tish Muldoon, the chain's PR director, stressed that her chain rarely runs out of such topping, but that the technology could prove useful.Pizza chains are also different from other E-tail sites that allow deliveries in the time urgency. What other retailer would concede that a 90-minute delivery of a fully customized product from mouse click to doorbell ring was far too lengthy?With that time urgency, the ability to have an absolutely current menu display is challenging.Bob Ford is the director of online marketing for the chain of 3,270 restaurants in 50 U.S. states and 28 countries, which dubs itself the world's third largest pizza company, presumably behind Pizza Hut and Domino's.Ford, who oversaw a major relaunch of the chain's E-Commerce site this week, said that his team "has provisions in place" for connecting the E-Commerce site directly with the homegrown POS units in each store, but it won't be until a future rev of the site.The key changes for this version was moving menus to appear before any logins were requested. "I don't want to tell you who I am. I just want the menu," Ford said.But for Papa John's, that's not so easy. The chain makes extensive use of regional preferences, offering, for example, black olives in much of the country but green olives in Texas, Muldoon said. Almost 10 percent of the regional menus are localized, making it ill-advised to show a California consumer a menu with items that can only be purchased in Florida.Papa John's created a generic menu, but then asks for address and Zip Code to display the full menu for the nearest restaurant. The very next release of the site—slated for "before the end of the year"—will include an improved restaurant locator, Ford said.The site also updated its mobile and desktop interfaces, reflecting the capabilities and screen sizes of the more popular mobile/desktop options out there today. "Many sites were designed for 800 x 600 screen monitors," Ford said, "but 95 percent plus now have 1024 x 768" or better.One observation that Ford mentioned was consumer perception of speed with order online versus ordering on the phone. "The perception is that online is faster, but the reality is that it's self-paced so it feels better to you" compared with a phone order.Maybe, but it's quite likely that the E-Commerce transactions are indeed a lot faster. First, there's the self-selecting factor, meaning that the consumer who choose to order online and likely very comfortable with computers and would therefore likely be very fast at order entering. Also, after the first order, if the consumer orders a favorite package and if they allow their payment card information to be retained, that online order truly should be a lot faster.That's even more likely during busy pizza hours when the store is more likely to have to put phone customers on hold. On the flip side, a phone order rarely crashes and requires a reboot, nor do multiple orders display an eternal hourglass, but even with Windows, being placed on hold is probably more likely.

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Editor Evan Schuman at eschuman@storefrontbacktalk.com
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Holding Onto Customers in a Tough Economy

Keeping Customers in a Crummy Economy
With recession expectations growing, some companies are taking extraordinary steps to hold on to customers
by David Bogoslaw
Even before the U.S. economic outlook darkened as the gravity of the financial crisis came into focus, companies started to get more aggressive in their attempts to hold onto old customers and attract new ones. Telephone companies' offers for two months of free service and reduced rates, discounted gym membership renewals, and generous gift cards from high-end department stores all underscore a pervasive fear on Main Street: With the uncertainty around the credit seize-up, consumers may be digging in for a long hibernation.
In upstate New York and other rural communities it serves, Frontier Communications (FTR) is even sending sales representatives door-to-door to persuade customers to lock in another year's worth of service at a discount rate. Those visits are effective where customers are often two-income families with busy lives, and many of those drop-ins are scheduled in advance, says Brigid Smith, a company spokeswoman. "We're sensitive to what this financial crisis means to them and we have to communicate with them," she says.
It's not only because of the gloomier economic picture that Frontier and other telephone companies are trying harder to hold onto customers. Ongoing attrition of users to more advanced technologies, like wireless, and poaching by cable companies have also called for more aggressive retention efforts. Verizon Communications (VZ) estimates an average loss of 8% to 9% of its customer landlines a year over the past few years, most of them going exclusively wireless or switching to service from a voice over IP (VOIP) or cable company, says spokesman Bill Kule. The barrage of competition from cable operators was a key impetus for Verizon's fiber-optic service, called FiOS, which bundles voice, high-speed Internet, and television service together into a triple-play package, which had been connected in more than 7 million households by the end of June.
Verizon has long been pitching promotional offers at "customers on the precipice of leaving," says Kule, but those became more urgent after the company saw bigger than expected departures of both broadband and voice customers during the second quarter. Since July, it's been offering all three services for the price of two to keep customers thinking about switching and to win back residential and small business customers who have already left, says Kule. Verizon is also urging customers to sign up for at least a one-year plan, hoping it will help them stick, he adds.
Sinking Economy…Cable Company Boost?
The tougher economy may have put cable service providers more squarely in the catbird seat, relieving some pressure to offer perks to customers. Their rationale: Subscribers to premium cable channels and pay-per-view events have arguably already chosen to cut their entertainment expenses and trade down—by staying home, says Christopher King, a telco analyst at Stifel Nicolaus (SF).
Long before the financial crisis tripped off new alarms last month, DirecTV (DTV) had initiated a program to retain customers, who sign up for either 18 months of standard service or two years for advanced service with features such as high-definition. "We're always looking at customers who are about to roll off their commitment, and there are groups we do go after with commitment-renewal efforts," using free digital video recorders or HD boxes as incentives, says Paul Guyardo, DirecTV's chief sales and marketing officer.
More often than not these efforts are directed at customers who live in areas where cable competition is more cutthroat. The company also discourages switching by charging early termination fees—generally $150 to $250—that are pro-rated according to how much time remains on a contract.
With a longer and deeper recession looming larger on the horizon, telephone and cable providers will be more inclined to use prices to differentiate themselves from their rivals, predicts King at Stifel Nicolaus.
Tough Task for Car Dealers
For big-ticket items like cars, keeping customers coming requires a more Herculean effort. With larger banks increasingly unwilling to approve car loans even to applicants whose credit scores used to be regarded as stellar, it's up to the manufacturers to risk filling the gap by financing less creditworthy customers, or "buying deep," as auto industry analyst Brett Hoselton at Keybanc Capital Markets (KEY) calls it. Carmakers can also offer a bigger discount so that the remaining cost meets the threshold of 90% of the manufacturer's suggested retail price that financing organizations generally require, he adds.
Car dealerships are starting to create their own incentives by narrowing their profit margins, in some cases giving up the profit they used to make on the financing terms, which can reduce the customer's monthly payments. Dealers are happy just to make a sale, says Jack Sayer, managing partner at Sayer Partners, a consultant to car dealerships and a former car dealer himself.
The best dealers he works with are aggressively contacting current customers three months before their leases or financing contracts are due to expire and preparing them for the tougher challenges of getting financing. For them, retaining customers requires as much outreach to potential financing sources as to the customers themselves. Dealers are now courting the smaller local banks that are still eager for business—banks that dealers wouldn't have felt as confident using in the past, says Sayer. They're also contacting local credit unions, which are typically less aggressive about drumming up new business than banks. "[It gives dealers] another source for financing and it also works in reverse," he says. "These credit unions are sending you customers and they usually have pre-approval of $25,000. This generally doesn't happen with bank customers."
Subscribing to services such as DealerTrak, an Internet-based credit application system, is another way for dealers to expand their lists of potential financing sources. It allows them to submit a customer's application to 1,000 banks all at once instead of faxing it to them individually, says Sayer. He also encourages clients who may have been resistant to using the Internet to make their Web sites more user-friendly, including posting information about customers' financing options.
Seeking Access to Affluent Customers
Health clubs like Life Time Fitness (LTM) seem to be among the most pro-active companies when it comes to customer retention. Life Time eschews long-term contracts and discount offers in favor of more lavish customer service, facilities, equipment, and features like children's centers—replete with computers, basketball courts, and climbing equipment—where parents can securely park kids under 12 while they work out.

"There's more stickiness in the membership base already because of the family component in the membership," says Laura Richardson, an analyst at BB&T Capital Markets (BBT). "The best way to retain a customer is to get them more fully involved in the club, using it as frequently and broadly as possible." (BB&T Capital Markets expects to receive or intends to seek compensation for investment banking services from Life Time in the next three months.)
Life Time is beefing up its customer connectivity program by bolstering its online advantage club, through which members get discount offers on everything from groceries to cellular service to vacation resorts from a network of nearly 100 partners who want access to Life Time's affluent customer base, says Scott Lutz, Life Time's chief marketing officer.
"In a tough economy, people start justifying every spend they make," says Lutz. "We make it easier for you to justify [that expense] because you can only get this discount if you're a member of Life Time. We allow it to fit your budget."
Veering Off the Yellow Brick Road
Department stores are also getting more desperate to keep customers engaged. In addition to buying customer lists from credit-card companies, some upscale retailers are offering gift cards for $150 or more after a $1,000 purchase, and turning their stores into entertainment venues to boost store traffic, says Patricia Pao, chief executive of Pao Principle, a retail consulting firm in New York.
For a Wizard of Oz theme party during New York's annual Fashion Week in September, Saks (SKS) brought in top shoe designers to create their renderings of the MGM film version's iconic ruby slippers, an event that probably cost Saks an additional couple of hundred thousand dollars, Pao estimates. She doubts such attention-grabbing tactics are working since sales at stores open at least one year continue to be extremely weak. With comparable sales already faltering for a year before the Lehman Brothers collapse and other recent events, "it's going to be very hard for [retailers] to retain their customers, or just to get them in the door," she says.
Aggressive markdowns on prices are also occurring much earlier than in the past, she notes, with fall merchandise already being advertised at 60% off at the start of October. "[Stores] are going to start doing markdowns [on Christmas items] by the middle of November" rather than waiting until the traditional day after Thanksgiving.
Says Pao: "I guarantee you're not going to see Black Friday anymore."
Bogoslaw is a reporter for BusinessWeek's Investing channel.

Franchising Your Business - J. David Washington

VMG Vivere Management Group, LLC. Bringing energy, passion, and vigor to your business… INFLUENCE • INTEGRITY • INNOVATION Book Review

Franchising Your Business is the Quintessential Resource
For Growth Expansion in Today’s Marketplace
By J. David Washington

After reading "Franchising Your Business" by Donald D. Boroian and Patrick Callaway, I felt that the veil of the franchising world had been removed. Don and Pat carefully unravel all the myths that surround the world of franchising. One of the most important ingredients to success is to have a winning formula & blue print. The blue print required for success in franchising is mapped out clearly and succinctly in sixteen exciting and fast moving chapters. In chapter one the reader learns the rules of engagement and gets a 30,000 feet view of where the industry was and where it’s heading. Don and Pat have clearly shared gems of wisdom that can only be acquired through vetted industry experience. "Franchising Your Business" is filled with charts, examples of operation manuals, and a very practical franchiseability test to help a business owner to determine where there my stand in becoming the next great franchise success story.

Chapter fourteen was very intriguing for me"Going International"; with the globalization of the world’s economy it’s important that one has a balanced prospective on the opportunities and pitfalls that lurk about in the international marketplace. Don and Pat do a good job of sharing their good and no so good experiences in the shark infested world of international business. The eight-step international checklist is a must read and review for entrepreneurs that aspire to expand their business beyond the shores of their local, regional, and domestic markets. Even though I'm not a teacher, this is a well written book based on first-hand experience and industry knowledge I give it an A+! It truly is a "must read" for anyone wanting to go into franchising and really want to expand their business. As a franchise consultant, I recommended "Franchising Your Business" to every prospective client with information garnered from this book you will be at the "head of the class" Clearly Don is a Guru in the world of franchising. Patrick, Don’s grandson merges their experience and prospective in a way to anticipate every thought you would have, every question, and every action you would take as you investigate, start up of your franchise system. Their goal is to equip the reader with "franchise blueprint knowledge." They have achieved this goal and more. If you are thinking of expanding into a franchise, "Franchising Your Business" is the book for you. If your goal was to take your business to the next level through franchising, the secret to success has been reveled in this resources guide, what you want to accomplish in terms of your franchise goals and what you need to know has been made available in "Franchising Your Business An Owner’s Guide To Franchising As A Growth Option". Good luck and many blessing to you on the journey!

www.francorp.com

Francorp Consulting

NutriPure Beverages, Inc. Subsidiary Inka Grill Franchise Systems Describes Alliance with Francorp, Inc.; Introduces Management Team
Posted : Wed, 27 Aug 2008 16:30:53 GMT
Author : CA-NUTRIPURE-BEVERAGES
Category : Press Release
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NEWPORT BEACH, Calif. - (Business Wire) NutriPure Beverages, Inc. (Pink Sheets:NUBV) subsidiary Inka Grill Franchise Systems has released further details regarding its unique partnership/alliance with Francorp, Inc. Francorp, a Chicago-based firm founded in 1976 by industry legend Don Boroian, has consulted with over 10,000 companies and created over 2,000 full franchise programs, some of which have gone on to become global market leaders. Francorp, Inc. is convinced that a major international franchise opportunity exists with the exploitation of the Inka Grill brand and has committed significant operational, legal, marketing and strategic consulting expertise to the project. Mr. Boroian will personally oversee the Inka Grill franchising operation.
KEY FACTORS TO INKA GRILL’S FRANCHISABILITY
Excellent track record -- low cost basis with strong year-on-year profitability.
New and exciting casual dining concept with “first mover advantage” – currently no significant Peruvian restaurant franchises exist in the USA.
Unique alliance/partnership with global franchise leader
Delicious, affordable cuisine with broad geographic appeal
Strong customer turnover and high customer revisits
Restaurants run to peak efficiency at below average cost basis (28%), yielding above average margins.
Easily duplicated.
Unique food and beverage lines ready for retail sales in major outlet and club stores
INKA GRILL MANAGEMENT TEAM
Ana Kishiara, Founder and Chairman of Inka Grill Franchise Systems.
Ana was born the 10th child in a family of 12 children, grew up in Peru, married in Greece, and traveled the world before settling in America. Growing up in a large family meant that every meal was an event, and the bustling family kitchen was always the center of life in Ana’s home. Ana sees Inka Grill as an extension of her home and her guests as an extension of her family. For this reason, all the food served at Inka Grill is prepared using only the finest and freshest ingredients and utmost care – a true recipe for success that has put Peruvian food on the map in Southern California. Inka Grill serves the ultimate Peruvian food experience, based on Ana’s home-style recipes from the Northern Provinces of Peru, where seafood, chicken, lamb, beef and potatoes are the staple. Every dish is prepared to order and only the freshest organic ingredients and care are used in all of Inka Grill’s preparations.
Donald Boroian, Founder of Francorp Inc.
Donald has personally committed to a hands-on approach to the future of a global Inka Grill franchise program. Donald knows franchising, having literally written the book on the subject. (two books, actually). Donald pioneered the franchise consulting industry in 1976 working with such clients as Hershey Foods, Arco, Texaco, Nutrasweet, Nestle, John Deere, Popeye's Fried Chicken, Ryder Trucks, USA Baby, and Valvoline. Donald has invaluable knowledge of the restaurant and franchise industries, and also brings with him a team of the country’s top franchise industry analysts, lawyers, sales and marketing executives to help steer Inka Grill to achieve maximum success.
Alan Rothman, CEO of Inka Grill Franchise Systems.
Alan is an serial entrepreneur and practicing attorney who is well connected with Fortune 500 CEOs and global business leaders. Alan’s primary strength lies in his ability to quickly assimilate information and develop tactical and strategic strategies that greatly enhance position in the market place. Alan is also well versed in the complexities of public companies and will be instrumental in guiding the company’s efforts in this regard.
Mairead Howe, VP Franchisee Management/Marketing & PR.
Mairead is a strong and strategic communicator who has had a distinguished career as Marketing and Communications Manager for The Vintners' Federation of Ireland (VFI), one of Ireland’s leading political lobby groups. Representing over 6,000 independent business owners, Mairead was responsible for the development, management and execution of all internal and external media and member driven communications. Her ability to communicate complex information into easy to understand terms is a valuable asset to the legal and commercial aspects running a service orientated business.
ABOUT NUTRIPURE BEVERAGES, INC.
NutriPure Beverages, Inc. is focused on growth and diversification in the healthy food / healthy water industries. NutriPure currently owns two wholly-owned subsidiaries, Inka Grill Franchise Systems. and XND Technologies, Inc. For more information visit www.nutripurebeverages.com
Safe Harbor Statement: This release contains forward-looking statements with respect to the results of operations and business of NutriPure Beverages, Inc., which involves risks and uncertainties. The Company's actual future results could materially differ from those discussed. The Company intends that such statements about the Company's future expectations, including future revenues and earnings, and all other forward looking statements be subject to the "Safe Harbors" provision of the Private Securities Litigation Reform Act of 1995.
NutriPure Beverages, Inc.Kenyatto Jones, CEO866-202-5256

www.francorp.com

Francorp Conducts Franchise Workshop at the California Restaurant Show

Francorp presented at the Western Food Service Show this past weekend on August 24th. Francorp works closely with most of the countries restaurant associations to educated its members on franchising and help business owners evaluate whether franchising is a viable expansion strategy. Christopher J. Conner presented in Los Angeles this past weekend to a group of over 100 restaurant show attendees. Here is an overview of the association.

www.francorp.com

California Restaurant Association
For almost 100 years, the California Restaurant Association has been the largest nonprofit state restaurant association in the nation. CRA is committed to serving the unique needs of its member restaurants who have raised billions of dollars in tax revenue for the state. Restaurant sales have had an economic impact of more than $90 billion to the California economy, making the foodservice trade one of the most powerful industries in the state.
Join the CRA during the Show and receive $100 off the annual membership dues!
If you aren’t a member, do your business a favor and sign up today!
Membership in the California Restaurant Association provides the following valuable benefits:
Save Money on essential products and services relevant to your business. Members receive discounts on necessities such as health, dental and life insurance; payroll processing, property, casualty and liability insurance and labor law services
Save 20% on all educational products at the CRAEF online store. Members save even more!
Stay Informed! As a CRA member you will be kept informed on vital industry issues through informative newsletters and publications. The CRA Educational Foundation also provides resources for you to achieve and to maintain state-mandated certifications, and helps you to develop professional employees for your business
Be Influential! CRA’s professional government affairs team works on your behalf to deliver effective foodservice industry representation on a local, state and national level
Promotion Possibilities! Membership offers you numerous marketing and networking opportunities to publicize your business to countless customers
Be a Partner! As a CRA member, you automatically receive membership in your local CRA chapter and the National Restaurant Association.

www.francorp.com

Francorp Client - FastSigns

FASTSIGNS(R) News: Attention! 'Moving Billboards' on the Road

Franchise Opportunity
Franchise Requirements
Franchise Information
Franchise News
FOR IMMEDIATE RELEASE
AUGUST 28, 2008
FASTSIGNS Franchise Opportunities Available
» Request Information
August 28, 2008 // Franchising.com // Carrollton, TX - The last time you were on the road, did you look at the other vehicles around you? Did you notice the graphics on delivery vans, trucks and other vehicles that identify businesses and organizations in your area? If not, next time you are driving around, look at the information on vehicles – the company's name, phone number, website or location. There could also be photographs of people, products or facilities. Does the vehicle of your business or organization have any type of identifying signs or graphics? If this is not something you think about on a regular basis, maybe it should be."From major corporations to small individually-owned businesses, companies are trying to create affordable attention by using every media available," says Drue Townsend, senior vice president of marketing for international sign and graphics franchisor, FASTSIGNS(R). "The road to advertising has taken a turn toward the big, the bold and the beautiful when it comes to vehicle graphics, and due in part to new materials, techniques and technology available, the day of the simple logo and phone number is long gone."Full-color digital graphics and wide format prints allow businesses to wrap entire vehicles, both large and small, in giant photographs, and thanks to a remarkable perforated vinyl material, graphics can continue across the side and rear windows without obstructing the view from inside.The most effective vehicle graphics incorporate vivid colors and keep the message brief and memorable. Viewers typically have only a few seconds to view a vehicle in traffic, which is why the presentation should be dramatic enough to grab their attention quickly. One exception is the back of the vehicle that drivers may see for several minutes while idling in traffic, making it the best place to list products or services.If a business is not ready to completely wrap a vehicle, or maybe the vehicle is used for multi-purposes, there are still signage options available. The standard magnetic sign even has a new look. Magnetic signage has become more colorful, flexible and durable than ever before. Magnetics can be custom-cut in virtually any shape to conform to a vehicle or to the design of the graphic. It still creates awareness and catches the eye of the public.Thanks to advances in technology and new, less expensive materials, high-impact vehicle graphics are now available and affordable for budgets of all sizes.FASTSIGNS(R) sign and graphics centers use innovation and technology to make the sign buying process simple by offering for a full range of custom sign and graphic products.

Empty Space Means Big Opportunity

(Crain’s) — The vacancy rate for Chicago-area retail real estate shot up during the second quarter to its highest level in nearly five years, and is expected to continue to climb this year as merchants retreat.
Amid an increasingly harsh economy, the vacancy rate climbed to 8.65% during the second quarter, compared to 7.93% during the first quarter and 7.51% during the second quarter of 2007, according to a report by CB Richard Ellis Inc.
The vacancy rate hasn’t been this bad since the third quarter of 2003, when it was 9.19%.
CB Richard Ellis says the vacancy will continue to rise this year at a slower rate, but does not predict how high. The rapid rise in vacancy can’t be blamed on developers, because the total amount of space remained unchanged during the quarter. Instead, the escalating rate is largely the result of store closings during the quarter by retailers such as Linens 'n Things and Sharper Image.
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“Doom and gloom is not my nature,” says Sharon Kahan, a first vice-president with CB Richard Ellis’ retail brokerage group. But “everyone realizes that we still have some tough times ahead of us.”
Last week, trendy discount apparel retailer Steve & Barry’s filed for Chapter 11 bankruptcy protection and is expected to liquidate. The Port Washington, N.Y.-based company has about a dozen stores in the Chicago area, including one planned for Evanston.
The 0.72-percentage-point jump in vacancy is the largest quarterly increase since the fourth quarter of 2002, when the rate soared more than a percentage point, to 11.13%, the highest level since at least 1994.
Chicago developer Robert Bond offers a particularly bleak assessment of the local retail real estate market, particularly if oil prices continue to rise.
“This economic morass we are in will continue past 2009, and hopefully start turning around in 2010,” says Mr. Bond, president of Chicago-based Bond Cos.
In addition to weakened retailers closing stores, even healthy retailers are slowing down their expansion plans.
For example, Walgreen Co., a driving force in retail real estate nationwide, said last week it plans to slow down expansion over the next three years.
The Deerfield-based drugstore company said it would add 365 stores during the 2011 fiscal year, 27% fewer than the 500 stores its expects to add during the current fiscal year, which ends Aug. 31.
And Plano, Texas-based J.C. Penney Co., said it plans to open just 20 stores nationwide in 2009, compared to 36 new or relocated stores in 2008. Penney’s opened five stores in the Chicago area in 2007.
The total amount of retail space rose just 0.63% during the second quarter, to about 124.2 million square feet.
The amount of space under construction slipped to 10.4 million square feet during the second quarter, compared to 10.7 million square feet during the previous quarter. Despite the slight decline, the amount of space under construction in 2008 is still well above recent historical averages of about 8 million square feet, the report says.
A joint venture led by Mr. Bond completed the only significant new shopping center during the second quarter: Springbrook Prairie Pavilion, a 270,000 square foot, two-stage lifestyle center in Naperville. Anchored by Austin, Texas, based-Whole Foods Market Inc., the center will be about 93% leased in October, when the second phase is completed, Mr. Bond says.
The vacancy rate rose in nine of the 12 Chicago-area submarkets during the second quarter, CB Richard Ellis says. The rate was the highest in Kane County, where it rose to 16.4% during the second quarter, compared to 14.81% during the first quarter.
Outlying retail centers that were banking on the suburban homebuilding boom are expected to face stiff challenges, Ms. Kahan says.
The vacancy rate is the lowest on the city’s North Side, falling to 3.99% in the second quarter, compared to 4.71% during first quarter.

Don Boroian Article - Inc. Magazine

April 21, 2005

A Franchise is a Franchise is a Franchise
Posted by Don Boroian at 1:47 PM
Franchising is more than chains like McDonald's. Sometimes, it's an expansion strategy, a license, a partnership, or a joint venture.
Let's play a word association game. When I say "franchise," you think ___________.
Many of you are saying "McDonald's." Certainly, McDonald's is the model for franchising's success in America. When you hear the word "franchise", many of you think of restaurants, and while it is true that the food service industry makes up a large portion of the franchise marketplace, franchising has made its way into nearly every sector of the economy. As a business model, franchising has extended into over 70 different industries. Currently, according to a recent PriceWaterhouseCoopers's study on the impact of franchising, franchising accounts for 14% of private sector employment in the United States. Why then is franchising so confusing when it accounts for such a large part of the U.S. economy?
At several points during my career as a franchise consultant and also helping businesses explore expansion, I have had entrepreneurs come to me looking to find a way not to franchise by calling their expansion strategy something else, a license, a partnership, or a joint venture. For these entrepreneurs, it is often just a misunderstanding of what franchising is that leads to the confusion. They see it perhaps as being a negative, and feel that franchising is only for certain kinds of businesses. Sometimes, the requirements of being a franchisor appear from the outside to be too cumbersome. In reality, it is usually easier legally to be a franchisor than to latch onto a business opportunity where each state would require different legal documents. I often have to tell these business owners that the fact of the matter is that, if three specific conditions exist, it doesn't matter what you call it; it's a franchise.
The franchising business model in a nutshell:
Franchising is a method of business expansion whereby a business owner allows someone to market products or services under their name and trademark and in strict adherence to a system he/she prescribes. In return, the franchisee, as that person (or organization) is called, pays a fee and, usually, an ongoing royalty. Moreover, the franchisee pays all of the costs of getting into his or her own business.
There are three basic elements to being a franchise.
1. The Name - You allow someone the use of your name or trademark. 2. The System - You require them to operate their business, using your prescribed system. 3. Payment of a Fee - In return for the use of the name and system of operation, they pay you a fee or royalty. By having these three elements items in place makes your business a franchise, and you are then required to follow the federal guidelines of having a Uniform Franchise Offering Circular.
A licensing arrangement is typically where you allow someone the use of your name for a payment of a fee.
A business opportunity is when you give someone a system of operation for the payment of a fee.
In these three elements, you have a very powerful combination. As a person looking into starting a business, owning a franchise gives you an established name, a proven system of operation, and a coach or mentor who as the franchisor is tied to your success. This gives you a huge advantage over starting a business from scratch. As a business looking to expand, franchising provides you with capital for expansion through the franchise buyers, motivated managers who have a vested interest in the success of your operations, as they have invested their capital into them. It is easy to see why so many companies have used franchise expansion to grow.
Just because your expansion program is a franchise, doesn't mean that you have to call it a franchise, as long as you comply with all of the franchise laws and regulations. We have had clients at Francorp who, for marketing reasons, may refer to their business relationships as a License. For example, we have clients offering franchises to the medical community. We feel that doctors may not be receptive to owning a franchise; so we refer to it as a License program but still follow all of the requirements of franchising, such as the legal documents and selling requirements. This enables the company to expand with the controls needed that a franchise program provides, while still keeping medical professionals (whose visions of a franchise involve flipping burgers) happy that they are Licensees or member partners of the program.
It's these three key elements (name, system, and fee) that make franchising so successful, as it makes everyone more involved in the success of the organization. It is the epitome of a "win-win situation."

www.francorp.com

Franchising A Business

Franchising a business takes a great deal of planning and structure. In order to do this effectively one must have the correct structure, training systems and commitment to effectively grow a franchise organization. This is only possible by bringing in the right people, professionals and experienced staff. Francorp is a professional organization of franchise consultants built on the principals that make businesses successful. Please visit Francorp's site, http://www.francorp.com/ for more information, details and insight into what has make the firm the most productive and successful franchise organization in the world.

You can also interact with and see what Francorp clients have to say about the firm at http://www.francorp1.com/