Showing posts with label franchise consulting. Show all posts
Showing posts with label franchise consulting. Show all posts

Tuesday, March 31, 2009

Francorp - Franchise Business Planning

Franchise Business Plans

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.

Thursday, March 19, 2009

Francorp Client Brake King

Despite the recession, Brake King aims to expand
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."

Francorp Client Red Arrow Diner

Red Arrow may launch franchises
By DAN TUOHYNew Hampshire Union Leader Monday, Mar. 16, 2009

MANCHESTER – The Adam Sandler Burger may be coming to a diner near you.
The locally famous Red Arrow Diner will roll out franchising opportunities across New England later this year, said Carol Sheehan, who come September will have owned the Queen City landmark eatery for 22 years.
The burger named for Manchester's favorite comedian son -- lettuce, tomato, mayo and raw onion -- has but a cameo role in a menu packed with great comfort foods.
Meatloaf on sourdough. Hash browns with grilled onions. A "Sloppy Moe" with macaroni and cheese. Not to forget a tempting dessert lineup that features cream pies, eclairs and homemade "twinkies."
All of it -- breakfast, lunch and dinner -- available 24 hours a day.
Franchising is a matter of the restaurant's reputation preceding itself. Sheehan, who is looking to hire a general manager to keep up with this year's growth, said she cannot go anywhere these days without Red Arrow recognition.
"I can be in the Caribbean and somebody knows The Red Arrow," Sheehan said.
Sheehan will retain ownership of the diner on Lowell Street in Manchester, as well as The Red Arrow Diner she opened last year in Union Square in Milford.
The Red Arrow brand is powerful. It has won numerous awards in recent years, including being rated in the top 10 of diners in the country by USA Today. In a 2007 visit by Guy Fieri of the "Diners, Drive-ins and Dives" show on the Food Network, the host raved about their American Chop Suey.
The diner draw
Diners have long been popular across the state, from MaryAnn's Diner in Derry to The Common Man's family of restaurants, which include the Airport Diner in Manchester and the Tilt'n Diner in Tilton.
During every New Hampshire presidential primary campaign, candidates saddle up to diner counters to meet voters and grab a bite. Red Arrow visitors have included President Obama, Hillary Rodham Clinton, Mitt Romney, Ron Paul and Rudy Giuliani. Celebrity diners have included musicians and actors, such as Central High graduate Sandler.

Red Arrow Diner owner Carol Sheehan and franchise manager Kim Capen, in the Lowell Street eatery last week. (MARK BOLTON)
In a way, multiple locations are a tip of the hat to the past.
There were five Red Arrow locations around the city at one point. David Lamontagne opened the original Red Arrow Diner in Manchester in 1922.
Kim Capen, Sheehan's franchising manager, has worked to ensure recipes are trademark protected and that a franchisee has a clear understanding of the diner's operating systems.
"From recipes to product descriptions to portions," Capen said, "a lot of that needs to be documented in a format to duplicate what you are doing."
Sheehan and Capen are committed to matching the right owner-operator with the right location. The right location, for example, may feature high vehicle traffic counts or pedestrian traffic counts, and proximity to businesses, colleges or hospitals.
Red Arrow officials declined to discuss the cost of a Red Arrow franchise or any financial details regarding potential franchise arrangements.
The demographics have to be just so for a 24-hour diner, they said.
"There are challenges whenever you open a new restaurant," said Capen.
Opening The Red Arrow Diner in Milford last year proved instrumental to their franchising planning.
"It was a great learning experience," Sheehan said. "We did not expect that as soon as we opened the door the place would be full and there was a line out the door."
The Milford diner, like the original diner in Manchester, is still busy. Sheehan said she has 38 employees in Manchester and 46 in Milford.
It remains a growth industry, Capen said. "Business increases every year," he said.
The success is indicative of the recession-proof operating model, according to Capen. Consumer lifestyles are also at play.
"People eat out a lot," he said. "Sometimes out of necessity."
Good and affordable comfort food remains the draw, said Sheehan. Her favorite? She could not name just one. But with a smile, she said, it is tough to beat a plate of meatloaf with gravy and mashed potatoes.

Tuesday, March 17, 2009

TES Franchise Show in Chicago

Explore Business Ownership at the Franchise Show Chicago
March 13, 2009 - Chicago, Ill – Over 60 of the nation’s fastest growing franchises will be participating in the Franchise Show Chicago for aspiring business owners to learn what it takes to be successful in a franchise concept. The event is free to the community and will be held on Friday, March 27 from 10:00 am to 6:00 pm and Saturday, March 28 from 9:00 am to 3:00 pm at The UIC Forum, 725 W. Roosevelt Rd, Chicago.
The event is hosted by The Entrepreneur’s Source (TES), the nation's premiere source for self-employment options, franchising information, education and training. Co-sponsors of Franchise Show Chicago are National City Bank, Illinois Service Bank, The Women's Business Development Center and the Illinois Small Business Development Center. All sponsors will have representatives’ on-hand to answer questions about business ownership.
“Franchising is one of the few business sectors that are actually growing in this challenging economy,” says Steve Rosenkrantz, regional developer for TES. “Our Franchise Show is an opportunity for people to gain some real insight on the many business options available,” he added.
Franchise Show Chicago will offer opportunities to speak one-on-one with franchise representatives and hear from business resource partners addressing funding, legal, and other support concerns on the minds of aspiring business owners. TES business coaches will be available to answer questions about franchise business ownership and to explain the ‘discovery process’ they take aspiring entrepreneurs through to ensure they find the right business investment for their lifestyle goals, needs and expectations.
As a former senior executive in the corporate world, Tom Anderson of Inverness, Illinois points to the 2008 Franchise Show Chicago as the launching pad for his new franchise as a regional developer for AdviCoach, a business coaching firm. “The quality of the showcase and the impressive TES business coaching ‘discovery process’ led me to the business of my dreams,” said Tom.
Attendees will also have the opportunity to participate in interactive workshops covering many areas of interest for aspiring entrepreneurs:
• How to Find the Right Business for You
• Franchisee Panel – Learn From Their Experience
• Keys to a Successful Start-up in Recessionary Times
• Financing Your Business
On Friday, WBBM NewsRadio 780 will be broadcasting live from Franchise Show Chicago with hosts Kris Kridel and Sherman Kaplan with two hours of news and the WBBM Noon Business Hour. People who pre-register for the Show online before March 27th will be eligible for an Apple Vacation Getaway to Riviera Maya Mexico.
Franchise Show Chicago is FREE to the community. To register and for more information, please go visit www.FranchiseShowChicago.com, or contact Steve Rosenkrantz at esource@valinet.com or 888-264-6667.
View Company Website: http://www.theesource.com

LPCW Offerring Franchises!

A Franchise that Celebrates Children and the Arts!

Filling the Gap
Early exposure to dance and theatre can have lasting benefits, including acquiring social and physical skills that will help children throughout their lives. Yet, dance professional Daune Pitman noticed two disturbing trends in dance classes for young children: either the little ones were being taught strict ballet, which was beyond their physical capabilities, or the classes were treated as playtime.
Seeking to establish a meaningful program, Daune developed Little People’s Creative Workshop (LPCW). LPCW classes are age-appropriate and taught by trained professionals. They are largely held in daycare centers and preschools, which puts them within reach of children who may not otherwise be able to take them.
Established in 1991, Little People’s Creative Workshop is now the largest organization teaching dance to children in the U.S. We’re augmenting our steady growth with expansion, via franchising. Our turnkey franchise program provides all you need to establish and grow a home-based business with multiple growth avenues!

Thursday, March 12, 2009

How to Franchise - Franchise Sales

Franchise Sales

How do all of these franchise organizations manage their franchise sales process? It is remarkable how many franchise systems out there, in the United States a new franchise is opened every 8 minutes of each business day, that is an amazing rate of growth! So franchising works, I get it. How do you find franchisees once you have gone through this process of franchising a business though?
When evaluating franchise sales, it is critical to first identify who the franchise buyer is and who we are working to sell the franchises to. Franchise sales encompass a large array of different types of franchise offerings. The traditional franchise is the owner operator model where typically a moderately well capitalized individual buys into the rights to run and manage a single location of the franchise offering. This franchise sales approach is most effective when using an emotional sales presentation. Presenting the franchise to the buyer is not about the financial details, the minutia of the business offering or other particulars, it becomes an emotional decision for the buyer to get into business on their own with your help. Franchise sales is about creating that emotional connection with the buyer, similar to the process of selling a home, the buyer falls in love with the idea and the notion that they will be in that house, neighborhood, they picture their family being raised in that home and envision the future they will have there. The individual franchise buyer is typically not a former executive or highly educated individual with millions to invest, it typically is just someone who wants to get into business for themselves and they know they need someone’s help doing it.
The franchise sales process is typically a 30-120 day process with a potential candidate, some take much longer. The evaluation process takes place on both sides, the buyer judging whether the franchisor has the support, training and overall package to truly support them and the franchise sales person gauging whether the franchise buyer has the capital, experience and wherewithal to be a franchisee.
The second type of franchise sales is to sell to a multi-unit franchise owner. This franchise offering is someone who has much more capital and experience. In this franchise sale, the buyer purchases the franchise rights to a much larger territory with a larger responsibility. They then are put on a performance schedule by the franchisor who establishes how many units the multi unit franchisee will be opening. This franchise sale is a different sale than the individual franchise. This buyer is highly sophisticated and has most likely been in franchise development before. They look over the financials and make an investment decision based on the ROI and how quickly they will see a return on the investment. In order to make this franchise sale the franchise system probably needs to be somewhat mature and have a really professional package to offer the franchisee, they are typically being courted by many franchise systems. The offering needs to make sense, in many cases the only realistic way to attract this buyer is to present earnings claims and business plans, these people are making an investment when they buy into the franchise, not buying into a lifestyle.
When approaching the process of franchise sales, it is critical to have people, consultants and a system in place. The first step is planning out the stages and carefully preparing for how to manage the influx of leads and responsibilities that come with franchise sales. The beauty and excitement of franchising is that with each franchise sale a company is expanded.

Friday, March 6, 2009

How to Franchise Your Business?

How to Franchise Your Business?
Tom DuFore, Executive Vice President at Francorp
Francorp – 1000 Words
10/22/2008
Revised/Edited on 3/6/2009
How to franchise? This is a question that is often asked by many small businesses of all kinds throughout the world. When looking into how to franchise a business there are a number of factors that need to be considered prior to franchising. First we need to further understand what a franchise is and then if our business has the ability to franchise. If after your franchise analysis you determine that your company is capable to franchise then the next steps are to decide whether or not to move forward with franchising and then how do you do it. Let’s take each of these one at a time.
What is a franchise
Franchising is governed by the Federal Trade Commission and according to the FTC Rule 436 a franchise is, “A method of doing business by which a franchisee is granted the right to engage in the business of offering, selling or distributing goods or services under a marketing plan or system prescribed in substantial part by a franchisor and which is substantially associated with the franchisor’s trademark, name, logo or advertising.”
Basically this means that if someone pays you a fee, upfront and/or ongoing for the use of your business name and your business system you most likely fall into the category of being a franchise. If that is the case you will need to comply with the federal franchise law which states you need to have a Uniform Franchise Disclosure Document in place. Please note that there are 23 states that require some form of additional franchise compliance beyond just the federal franchise regulations.
Are You Franchiseable?
To asses if your company can be franchised in the first place there are five criteria to use as general guidelines in assessing the feasibility of your business as a franchise. As always, these criteria are not perfect and may not always be accurate, but they are typically on point. As we always recommend you would do yourself a favor by speaking with a franchise consultant and other professionals regarding this issue. The five criteria are:
1. Do you provide a decent product or service to your customers?
2. Do you have a great system in place to run your operation by? This means the operations, marketing, management, etc.
3. Can you teach someone in a relatively short amount of time, say 1-4 months, how to run the business? Obviously the timeframes will vary based on the complexity of the business model, but the main focus is if you can teach someone.
4. Does your business have a market nationally? Even if you don’t go nationally or intend to do so today, you very well may change your mind five years from now.
5. Can you provide a 15% return on your franchisees initial cash investment and provide them the ability take a manager’s salary if they are an owner/operator?
Do You Want to Franchise?
One of the most important steps components to the entire process is to take a look at you in the mirror and ask, “What do I want to be when I grow up?” What is your is your dream, your aspiration, as a business person? Do you want to be an owner/operator running your one or two unit business for the rest of your life? Or, do you want to become the CEO of a regional, national, or international company? The decision isn’t always easy, nor is it to be taken lightly. This is why seeking proper guidance from a franchise consultant could prove to be useful.
Remember that getting into the franchise industry is a completely new business. You are no longer selling burgers, selling insurance, or competing with 10 other local companies for the same customer that is going to spend maybe $30 or $40. Your customer in the franchising business is going to quit their job, pay around $500,000 for a franchise (including a franchise fee, working capital, equipment, leasehold improvements, etc), and run a franchise. You no longer are in need of having hundreds of customers walk in your operation every day, week, or month. You now need to find just one, two, or three people to buy your franchise each month.
How to Franchise Your Business
So we are finally here, the point of no return. You have concluded from the previous topics that franchising is for your company and it is something that you want to do. Well, in order to franchise your company you are going to need to have a lot of pieces in place in order to make it work. These pieces include a well written franchise business plan, thorough research, legal documents to comply with the franchise laws, an operations manual, a thorough franchise marketing plan, a franchise brochure, and you will need to know how to market, sell, and grow a franchise company. Each and every one of these components is vital and important for you to have done by experts in the franchise field. Subcontracting this out to the lowest bidder or to other folks that outsource the project does not work well in setting up your franchise program the right way. You will want to work with experts that have a turn-key franchise program and that have a track record of success. Just like your franchisees will want to see that you have a good operation, you should look for the same from the franchise people you work with.
One of the most common mistakes business owners make when looking into how to franchise is contacting their local business attorney to have them draft the Uniform Franchise Disclosure Document. While your business lawyer has been good to you, chances are that they do not specialize in franchise law. The other problem this creates is that you will receive a questionnaire from your lawyer asking you what your franchise fee should be, your royalty, territory issues, demographics, initial training, ongoing support, which of franchise structures do you intend to offer, and so on. The point is that legal documents merely DEFINE your franchise program and do not DRIVE it. The business decisions that are made in the franchise business plan are the keys to your success. It is here that the future success of your franchise program can be made or broken. Having great advice at this stage of the game is critical to making your franchise work. This is an area that we at Francorp focus on intently and is one of the main reasons why an average client of ours will sell 33 franchises in their first 3 years of operation as a franchise company.
There are many ways to get the work done that is needed to get into the franchising business, however, this is something that has to be done right the first time! If you make a bad judgment call on your royalty or territory size, your franchise program could very quickly be in jeopardy. This is a brand new business you are looking into and you owe it to yourself to research and find out as much as you can prior to moving forward with franchising. Take the time to make a decision from an informed perspective and be sure to truthfully answer the question, “What do I want to be when I grow up?”
For more information on how to franchise your business you can download a free book called, “Franchising Your Business,” by Don Boroian and Patrick Callaway at www.francorp.com.


For 32 years, Francorp has been the industry leader in the franchise development and consulting industry. We have a unique approach that remains unmatched by any other firm in the world. We have assembled a team of experts whose talents are coordinated seamlessly to create customized materials that fit the specific needs of our clients. Successful systems create successful franchises, and our unique proven method maximizes your chances of success and minimizes costly mistakes. Francorp will handle your program development through your strategic planning, franchise agreement, franchise offering circular, state registrations and filing, marketing plan, internet marketing, operations manual, sales training and management training, all under one roof.

How To Franchise A Sales Organization

How to Franchise a Sales Organization.
Franchising is a unique entity. It is regarded as an industry, but is defined as a method of distribution. Most of franchising is associated with food oriented businesses, you know, the ones that line every street corner and you probably bought lunch from the other day. But franchising as permeated all industries today, we now see franchise companies in all industries that are successfully duplicating themselves across the country and around the world. Franchising is a dynamic, aggressive way to grow a business, there is no question about that. But what is the process? How do you franchise a business that typically is not associated with franchising?
In this article I will discuss How to Franchise a Sales organization and the process involved. Francorp is the world’s largest and most experienced franchise development and consulting firm. The company has franchised over 2,000 different businesses in it’s 33 year history. So needless to say I hear from plenty of business owners, many of which have products or services that they wish to sell more of to a larger customer base. Franchising can be a way to do this effectively and control the quality and effectiveness of the sales team. When discussing How to Franchise a Sales Team it is important to understand that franchising is a controlled mode of growth. The franchisor can control the quality, consistency and overall brand image of the company if a franchise system is managed correctly.
So, How to Franchise a Sales Team begins with setting the system. As a sales oriented franchisor your most valued asset is the sales system. The process you use to sell the product or service. That needs to be clearly defined, documented and tested. Once that system is in place, the marketing process makes sense, scripts have been put together, sales call procedures have been mapped, technology has been identified and all of the above is on paper and ready to go, then the franchise is ready. A Franchise system is only as strong as the system that is replicated through it. So if you’ve ever heard of the saying, “Garbage in, Garbage out, or GIGO”, that would apply here when considering How to Franchise a sales territory.
An interesting misconception about franchising is that the success depends on the quality of the product or service more than the surrounding business model. In fact, most franchise systems don’t have overly astounding products to offer, but the good ones always have great business models and ways of doing business. The product obviously should be a good one, but what will make a Sales Oriented franchise successful is the process to market the offer and close the deal.
The key for How to Franchise a sales business to think about how to replicate the sale, the pitch, the marketing, the lead generation all the way to the payment. That is where the secret lies. Many great sales organizations have been built through franchise systems, it is worth investigating if you are looking to sell something across larger territories or areas.

Thursday, March 5, 2009

Francorp Client DirectBuy

Bart Fesperman announced as DirectBuy's new executive vice president

DirectBuy, the home improvement and home furnishings club with direct insider prices, is pleased to name Bart Fesperman as its new executive vice president.

MERRILLVILLE, IN, February 26, 2009 /Franchise PR News/ -- Mr. Fesperman has been with DirectBuy since 2004 when he joined DirectBuy's executive team as vice president of sales & marketing. Fesperman has nearly doubled DirectBuy's annual membership enrollments each of the last two fiscal years.

Mr. Fesperman's career with DirectBuy dates back to February 1995 when he and his wife LeaAnn, along with partners Lynn and Tammy Corbin, opened their first franchise in Springfield, Missouri. In addition to being recognized as top performers in the network, the Fespermans and Corbins were the recipients of the prestigious Founder's Award in 1998 in recognition of their outstanding contributions to the company.

In July of 2002, the Springfield ownership team opened their second franchise in Johnson County, Kansas. In 2003, at DirectBuy's International Sales & Service Conference in San Diego, both franchises were recognized as Top 10 centers in the network for the conference year 2002-2003.

"We congratulate Bart and look forward to a prosperous future as he leads DirectBuy's sales organization to even greater levels of success," said DirectBuy President and CEO Scott Powell.

DirectBuy offers consumers thousands of items, including kitchen cabinets, flat-screen televisions and major appliances from more than a thousand top manufacturers and their authorized suppliers throughout North America. At more than 160 clubs throughout the United States and Canada, DirectBuy members enjoy a comfortable, welcoming setting and design center where they finally have the financial control of buying direct.

To assist members with their home renovation projects, DirectBuy also offers access to interior designers and product specialists who are specially trained in one of five areas of merchandise: Home Furnishings, Home Improvement, Flooring, Entertainment/Outdoor, and Accessories. Additionally, members benefit from the use of a children's play area, cafe and a member's lounge to relax while shopping.

DirectBuy members also have access to renowned designer Christopher Lowell. Lowell has designed twelve room settings - created exclusively with products available through DirectBuy - using his Seven Layers of Design. An innovative approach to home decor, The Seven Layers of Design keeps homeowners on budget and from feeling overwhelmed by their project.

DirectBuy Membership
Consumers who are interested in joining DirectBuy are encouraged to attend an exclusive Open House event, which is designed to educate families about DirectBuy's unique business model. The Open House also helps consumers better understand how DirectBuy members avoid traditional retail markup when purchasing brand-name merchandise.

To request a "Free Insider's Guide to Buying Direct" and a Visitor's Pass to learn more about the superior value and benefits of a DirectBuy membership, call 1-800-DIRECTBUY or visit www.directbuy.com.

About DirectBuy
For more than 37 years, DirectBuy has been showing thousands of consumers unparalleled ways to save as they shop for virtually everything for in and around their homes - from furnishings, home improvement and flooring, to entertainment and outdoor products, accessories and much, much more. With more than 160 locations in North America, DirectBuy offers its members access to approximately 700 brand-name manufacturers and their authorized suppliers in the US, and more than 500 brand-name manufacturers and authorized suppliers in Canada.

Consumers interested in seeing DirectBuy's savings, service and selection up close may obtain a Visitor's Pass to attend an Open House by visiting www.directbuy.com or www.directbuycares.com.

Wednesday, March 4, 2009

Choice Hotels

Choice Hotels Plays Up Free Services
March 2, 2009

-By Elaine Wong

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

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

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

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

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

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

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

Francorp Client Schotzsky's

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

-By Becky Ebenkamp

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

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

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

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

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

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

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

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

Francorp to Exhibit at the Franchise Middle East Show

Franchising Middle East expo opens
Dubai: Mon, 2 Mar 2009

Franchising Middle East (FME), the region’s leading exhibition for the franchise sector, opened at the Dubai International Exhibition Centre, with 72 exhibitors from 22 countries.

The exhibition, now in its sixth year, aims to provide an injection of business ideas to the Middle East market as international brands come to Dubai with a view to expanding across the Middle East with local partners, said organisrs.

'Never has the franchise concept been more vital to business growth than in today’s economic environment,' stated Abdul Rehman Falaknaz, president of International Expo Consults (IEC), organisers of FME.

'Franchising offers local entrepreneurs access to established brands and business models, while international players are provided with a chance to tap into new markets at relatively low set-up costs.'

Big names from Europe, Asia and the Middle East are exhibiting at the show this week, including participation from Cremeria Vienna, Subway, London Dairy Café and Tom Tailor.

Master Franchisers from Jebel Ali Free Zone is leading a delegation of international brands, many of whom are debuting at the show. These include Zerga, Bed + Bath, Padini Authentics, Trio and New Zealand Naturals.

Franchise consultants such as FranExcel and FranCorp will be on hand to offer would-be entrepreneurs advice on how to set up franchise operations in the region.

FME is the region’s only exhibition that offers a world of exciting opportunities to international franchisers to access the thriving Middle East and North Africa (Mena) market and launch their franchise concepts.

The exhibition facilitates direct communication between entrepreneurs and potential franchise buyers from the region and beyond.

The show has earned a name for providing an ideal networking opportunity for the franchising industry in the Middle East, which industry analysts have estimated is worth $30 billion.

'With the franchise industry already growing at 25 per cent per annum, the UAE and the rest of the GCC region is a fertile market for franchise companies to expand into,' Falaknaz added.

'With approximately 85 per cent of the UAE population comprising expatriates, this is the market that needs to be catered for.'

FME 2009 takes place from March 2 to 4.-TradeArabia News Service

Sunday, March 1, 2009

Francorp to Present at the New York Restaurant Show on How to Franchise

Francorp International Consulting firm to present on franchising and how to franchise at the New York International Foodservice Show. Francorp works closely with the New York Foodservice show to educate and assist restaurant owners and business owners in the evaluation of franchising as an expansion option.

Several Francorp clients and former clients will also be taking part in the show including Uno Chicago Grill, Buffalo Wild Wings and McDonald's . Francorp Executive Vice President Thomas DuFore will be handling the workshops and presentations during the week in New York.

Francorp is headquartered in Chicago, IL but operates out of 22 offices globally and does work for franchise companies in over 40 countries around the world.

Below are the details and featured events during the show. For more information on Francorp and Francorp's development work visit the corporate site, www.francorp.com.

Intl. Foodservice Show of NY opens today
01 Mar 2009
The International Restaurant & Foodservice Show of New York starts today at the Jacob K. Javits Convention Center in New York City. The show runs March 1-3 and features National Restaurant Association chairman Michael Kaufman as the keynote speaker. Kaufman's address, America's Restaurants - Serving our Nation, will be held at 1 p.m.

Educational sessions for the day include:
"Menu Targeting Trends: See what Generation Y and the Millenials are Eating Before they Hit Your Market," presented by Rob Harison, a chef with Princeton University Dining Services - 11:30 a.m. - 12:30 p.m.
"Fast Casual - Changing the Way America Eats," a panel discussion hosted by Linda Duke, CEO of Duke Marketing. Panelists include Paul Barron, publisher of Fast Casual magazine; Ed Frechette, senior vice president of Au Bon Pain; Louis Basille, CEO of Wildflower Bread Company; and James Strobino, SVP, new concept development, Uno Chicago Grill - 2:30 p.m. - 4 p.m.
"6 Reasons Why You Should Franchise Your Restaurant," presented by Tom Dufore, executive vice president, Francorp - 3:30 p.m. - 4:30 p.m.
Co-located with this year's event is the New York Pizza Showcase. The showcase features performances by the U.S. Pizza Team and the Hall of Fame Award presentation. Dom DeMarco of Di Fara's Pizza and chef Santo Bruno of Marsal & Sons are recipients of this year's awards.

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Tuesday, February 24, 2009

Francorp Process

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

Francorp Services

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

Sunday, February 22, 2009

Francorp Clients - Children's Orchard

Francorp developed the original franchise program for Children's Orchard franchising systems. The Franchise company is the industry leader in children's resale clothing. They currently have almost 100 locations and continue to define their industry. Here are the details on the company and background on the company.

Children's Orchard
900 Victor's Way, # 200
Ann Arbor, MI 48108

800 #:(800) 999-5437

Tel:(734) 994-9199 + 222
Fax:(734) 994-9323
E-Mail:campaign364@mail.emaximation.com
Website:www.childorch.com
Contact: Ms. Lisa Morgan, Franchise Development Director

Business Description:
Upscale children's retail/resale stores, featuring clothing, toys, furniture, equipment, books and parenting products. We buy top-brand items from area families by appointment, and re-sell in boutique-style stores, along with top-quality new children's items from nearly 200 suppliers. These are large volume stores selling thousands of items per week.

Franchisor Background
Year Established: 1980
Franchising Since: 1985
Operating Units:
Franchised Units:
84 98.8%
Company-Owned Units:
1 1.2%

Total Operating Units:
85 100.0%

Geographic Distribution:
U.S.: 85 100%

North America:States/Provinces with the largest number of operating units:
Density

Units
1. Michigan 6
2. Massachusetts 14
3. California 18

Registered in Following Registration States: California, Florida, Illinois, Indiana, Maryland, Michigan, Minnesota, New York, Oregon, Virginia, Washington, Wisconsin, District Of Columbia, Alberta Financial Requirements
Investment:
Minimum Net Worth:
$200K
Cash Investment:
$30-50K
Total Investment:
$72.5-158K
Average Total Investment:
$150K

Fees:
Initial Franchise Fee:
$22.5K
Average Franchise Fee:
$22K
On-Going Royalty:
5%
Average Royalty:
5%
Advertising Fee:
1.0%

Average Number of Employees: 1 Full-time, 3 Part-time

Space Needs (in square footage): 1,200-2,000

Preferred Sites: Storefront, Strip CenterOther Sites: Encourage Conversions? YesEarnings Claims Provided?: No
Franchisee Qualifications

Ranked from 1 (unimportant) to 5 (important):

Financial Net Worth:
5
General Business Experience:
3
Specific Industry Experience:
2
Formal Education:
4
Psychological Profile:
2
Personal Interview(s):
5

Terms of Contract

Term of Initial Contract:
10 Year(s)
Term of Renewal Period:
Year(s)
Passive Ownership:
Allowed, But Discouraged
Area Development Agreements?
Yes, for 1 Year(s)
Sub-Franchising Contracts?
No
Franchisees Allowed to Expand Within Territory?
No

Support and Training

International Franchise Association:
Yes
Canadian Franchise Association:
No
Franchisee Association/Member:
Yes, Member
Size of Corporate Staff:
15
Site Selection Assistance?
Yes
Lease Negotiation Assistance?
Yes
Financial Assistance?
Yes, Direct


Projected New Units Over Next 12 months: 15
U.S.: Yes, All US Except HI, AK
Canada:
No
Overseas:
No

Thursday, February 19, 2009

Francorp to Hold Annual Client Conference in Washington D.C.

Dear Reader,

Francorp would like to invite you to our Annual Client Conference. This is an opportunity for you to get a "Behind the Scenes Look" at how we continue to coach and provide assistance to our clients.

This event will be held in Washington, DC at the Marriott at Metro Center, 775 12th Street NW, on Friday, March 20th from 7:30 AM to 4:00 PM. Our conference will be held in conjunction with the International Franchise Expo (IFE) held on March 20th, 21st, and 22nd. The IFE is the largest franchise show in the United States. The IFE show features nearly 300 franchisors who are set up in booths and who are presenting themselves to over 10,000 attendees and visitors who are intersted in buying franchises. We would suggest you plan on arriving in Washington, DC on Thursday evening, March 19th, attending the Francorp Annual Client Conference on Friday and then attending the IFE on Saturday and Sunday. When you notify us of your attendence, we will arrange for you to receive free admission tickets to the expo.

Our client conference will be featuring an outstanding presentation by our Executive Vice President, Tom DuFore, on "How to Exhibit in a Franchise Show or Tradeshow", and a presentation by Francorp's International offices on some of the exciting opportunities for U.S. companies to sell their master licenses in foreign countires. Represented in the program will be the heads of Francorp's operations in India, Argentina, Chile, Japan, Malaysia, Mexico, Middle East, and the Phillippines. There is no charge for your admittance to this meeting and you are free to send as many people as you like from your company.

Reservations for the event are required in order to reserve a seat to our annual conference and to allow the necessary time to send you the information for obtaining your tickets to the IFE. To reserve seats for your company, please contact one of our Franchise Anaylists at 1-800-372-6244 or tradeshow@francorp.com by March 11, 2009.

If you have not doen so already, please take a few moments to review our video on Selling Franchises in a Challenging Economy at www.francorp.com/economy.

We look forward to seeing you at the show!

Sincerely,

The Francorp Team

Sunday, February 8, 2009

How to Franchise Children's Businesses - Mad Science Group

Francorp worked with Mad Science Group in developing their original franchise program and assisting them in the development and implimentation of the franchise expansion. Mad Science is the industry leader in their segment and continues to set the bar for children's oriented franchise organizations.

Here is a wonderful interview with Francorp President, Patrick Callaway and Mad Science CEO Ariel Schlien. Mad Science was originally founded in Canada and has since become a global phenomenon with the help of Francorp.

http://www.youtube.com/watch?v=yVLNmlEr5gw

For more information on how to franchise, visit the Francorp corporate site:www.francorp.com

Friday, January 30, 2009

Francorp Client: Johnny Rockets

Football Star and Entrepreneur, Joe Theismann, Helps the Johnny Rockets Group Prepare for Meteoric Growth


Former NFL Quarterback Lends Motivation and Restaurant Expertise to Up and Coming Brand
LAKE FOREST, Calif., Dec. 1 /PRNewswire/ -- Football, broadcasting, and restaurant veteran, Joe Theismann, has joined the Board of Directors of fellow American success story, Johnny Rockets. Having been in both the sports entertainment and restaurant industries for more than thirty years, Theismann will contribute his business acumen, enthusiasm and teambuilding expertise to the 22-year-old chain of All-American theme restaurants. He will also lend his voice and likeness to select Johnny Rockets publicity efforts and non-profit campaigns.

According to Chris Ainley, Johnny Rockets Chairman of the Board, "We're thrilled to have Joe on our team to share his knowledge in negotiation, competition, relationship management and operations. He definitely knows about running successful restaurants and we believe he also knows how to recognize a real winner when he sees one."
Theismann, the former Washington Redskins quarterback who led the team to two Super Bowls, had his first official appointment at the October 16 Johnny Rockets Group Board of Directors meeting in Washington, D.C. He will attend quarterly Board meetings and be available to counsel Executive Team members, as needed. He will also work with franchise owners to help them secure - and inspire them to build - lucrative, competitive businesses.
"My family and I eat there every chance we get," said Theismann, "and, having been in the industry as long as I have, I know that serving delicious food in a fun, friendly, clean atmosphere is the key to both good offense and defense in any restaurant situation. The fact is that Johnny Rockets serves great food. Their niche is one that keeps our All-American wholesome goodness in the forefront. Their successful expansion both domestically and internationally should be a surprise to no one."
Added Johnny Rockets' President and CEO Lee Sanders, "We have a proven business model, savvy franchisees and genuinely good menu offerings which is why our business continues to grow, despite the current economy. With leadership that now includes Joe's experience, we are positioned to be a successful, enduring example of American innovation and culture for years to come."
Johnny Rockets and its franchisees currently operate 217 restaurants in the U. S. and 36 restaurants in nine other countries, including: Bahamas, Bahrain, Canada, Egypt, Kuwait, Mexico, Qatar, Turkey and United Arab Emirates. New locations are scheduled to open soon in Saudi Arabia, Germany and the Dominican Republic, and several more international franchising deals are currently in the works. Current development plans are on track to open 60 new restaurants, this year.
About Johnny Rockets
For more than 22 years, Johnny Rockets has offered the food, fun and friendliness reminiscent of feel-good Americana. Every Johnny Rockets restaurant offers its guests simple, great-tasting food from a menu of all-American favorites, including juicy hamburgers and hand-dipped shakes and malts. Headquartered in Lake Forest, Calif., Johnny Rockets has 253 corporate and franchise-owned restaurants in 29 states and nine countries, including those found in Six Flags amusement parks, FedEx Field and aboard Royal Caribbean cruise ships. Johnny Rockets is currently franchising new restaurants in most markets. To learn more about Johnny Rockets, visit johnnyrockets.com.
SOURCE Johnny Rockets

Monday, January 19, 2009

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.