Soul De Cuba to Expand Through Franchising

PRESS RELEASE


FOR IMMEDIATE RELEASE FOR INFORMATION CONTACT:
Cuba de Soul
(808) 521-0888


Soul de Cuba Cafe to Expand Through Franchising

(Honolulu, HI) – Soul de Cuba Cafe has announced they will be launching an aggressive expansion program through franchising.

Soul de Cuba Cafe brings traditional, authentic Cuban cuisine by embracing Afro Cuban culture and history. “The Soul de Cuba dining experience goes far beyond enjoying a plate of rice, beans and plantains,” explains founder Jesus Puerto. For most, it’s a first time emersion into a dwelling infused with Afro Cuban ambiance. In every Soul de Cuba Cafe, patrons dine to the sounds of Afro Cuban music and Jazz and each restaurant displays Afro Cuban art and memorabilia.Soul de Cuba Cafe has approached Francorp, the world’s leader in franchise consulting, to assist them in the development of their franchise program. “We never planned on franchising, but we investigated,” says Jesus. “After gathering the facts and dispelling the myths we felt it was unquestionably the right thing to do. After all, being one of the first Cuban restaurant franchise programs in the world is a rare lifetime opportunity.”

For more information about Soul de Cuba Cafe, call (808) 521-0888 or visit

www.franchise.souldecuba.com

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Franchisors Making some Adjustments

Franchisors Offer Reduced Fees, Deals, and Financing Help to Court Franchise Owners
October 02, 2008
Franchise companies are offering potential franchisees a variety of incentives to buy a franchise. Pointing to the current economic climate, franchisors are offering two for one specials, lower franchise fees, and help with franchise financing to help lure new investors. Some franchise companies are also offering their current successful owners bonuses for recommending potential franchise buyers. Franchisors are also becoming more creative in helping potential business owners buy a franchise because the competition among franchise concepts has grown in recent years. The International Franchise Association estimates that there is over 3000 franchise concepts currently available for sale. So if you are looking to invest in a business, be sure to do your research and be aware of the creative incentives being offered by the franchise companies.

Francorp Client Lifeway Foods to Open 2nd Starfruit Cafe

Lifeway to open 2nd Starfruit Café
Morton Grove-based Lifeway Foods Inc. plans to open a second company-owned Starfruit Café early next year in Lincoln Park at 2142 N. Halsted St. The 2,000-square-foot store will test out new products such as oatmeal and crepes as well as offering frozen kefir, a yogurt-like dairy product, and smoothie-style kefir drinks. Publicly held Lifeway opened its first such café in April in Wicker Park, and in July announced it was launching a franchise program to expand the cafes outside Chicago. Lifeway also plans to open a store later next year downtown at Block 37, says Edward Smolyanksy, the company’s CFO. Allen Joffe of Baum Realty Group is representing Lifeway.

 

 

 

 

Francorp Client - Great Clips

How to Grow Without Growing Pains Ray Barton transformed Great Clips from just four hair salons into nearly 3,000, and he did it by turning down franchises that didn’t fit into his expansion strategy.
By Geoff Williams September 10, 2008

How to Grow Without Growing Pains
Ray Barton transformed Great Clips from just four hair salons into nearly 3,000, and he did it by turning down franchises that didn’t fit into his expansion strategy.
Adds Article to your Entrepreneur Assist Bookmark page.
You'd never know it, but during his childhood, Ray Barton could barely afford a haircut. Now, the 59-year-old Minneapolis, Minnesota, native is the CEO of the 2,700-salon franchise behemoth known as Great Clips.
Like Barton, Great Clips has its own humble-beginnings story. When Barton took over as CEO in 1983, the 1-year-old company had four locations. In 2007, his hair salon business had more than $650 million in sales, and he expects that number to top $1 billion by 2010, when the franchise will have 3,000 locations across North America.
Despite its success, Great Clips still manages to be rather invisible. It doesn't get the fawning press coverage, probably because it didn't reinvent an industry the way Fed-Ex, Amazon and Google have, and it stays under the radar in ways that Starbucks and Wal-Mart never could. In other words, Barton's company is the quiet success story that many entrepreneurs dream of achieving.
How He Did It"There's nothing special about my background other than I worked hard, and I dreamt big," says Barton, adding that anyone could duplicate his formula to success: embrace teamwork, have a vision, surround yourself with great people and have a little bit of luck.
And maybe it helps to grow up poor. Barton's father was a construction worker who specialized in building grain elevators, traveling to where the jobs were with his wife and six children in tow. With money tight, Barton's mother was often starting her own businesses, from running a drive-in restaurant to opening her own cheese shop.
The children were encouraged to find odd jobs. Barton's first was organizing soda bottles at a drugstore. Later, like many children who grew up in 1950’s America, he made money mowing lawns, shoveling snow and delivering newspapers.
Poverty in his childhood served as an incubator for dreaming of a better life.
"I saw people living different lives," Barton says, "lives that I thought would be fun and more comfortable, and I was willing to work very, very hard to get to where I wanted to go."
Ultimately, that meant going to four different colleges and eventually getting his accounting degree. After graduating, Barton worked for a CPA firm, but it was developing and servicing franchises at a real estate agency where Barton began to see the power of franchising.
Barton, who by now was married and had started a family, realized that the hair care industry had numerous independent operations and plenty of potential for turning their capital and talent into a nationwide company. Though he admits he wasn't the first to see hair as a franchising model--Fantastic Sams and SuperCuts had beat him to that--he recognized that there was room in the industry for at least one more.
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In 1981, Barton became the first investor-owner of a franchise called The Barbers. While the franchise endured for another decade, Barton left a year later, somewhat disheartened by his experience.
Two fellow Minnesotans Barton met during the course of his first year in hair care, Steve Lemmon and David Rubenzer, approached him about being a partner in their venture, a business called Great Clips. The men liked his background and business acumen. Barton politely declined.
A Strategy to SuccessFive months later, badly needing something stable, he went back with a change of heart. But despite losing two jobs in a year, "I don't even remember being discouraged," Barton says. "I just thought, 'I'll go find something else.' I've always been willing to work very hard. I think that's an important part of it." Five years later, with 150 salons across the country, Barton presided over his first Great Clips franchisee meeting.
In addition to working hard, Barton recommends surrounding yourself with great people and remaining true to your business plan and long-term vision. From the beginning, Barton had a clear-cut strategy to grow the company by spreading out slowly, rather than wildly crisscrossing the country. When one Indiana entrepreneur offered $10,000 to open a Great Clips, Barton told the man they weren't ready to do business yet.
The Indiana entrepreneur--eitherfilled with chutzpah or trying to impress Barton--filled out the application anyway and sent a $10,000 check to get the franchise process started. Though that $10,000 would have been nice to have deposited in the bank, Barton sent the check back. He was positive that moving into a new state too soon would take his focus off the franchises he was nurturing.
"We grew slowly at first, and because our foundation was so solid, we were able to continue our growth," Barton says. "But we had to focus first on helping our franchisees be successful. They have to be successful and profitable if you want to build a successful company."

Francorp Client Plains & Prints to Move into Asian Markets

Plains & Prints sets sights on Asian market
Plains & Prints was established in November 1994 by Roxanne and Erickson Farillas. Then known as Prints & Plaids, the first boutique opened in Shoppesville, Greenhills. The company’s first products were lace-edged towels and basic polo shirts.
Later on, the brand ventured into women’s apparel, carrying the concept of classic and stylish, which became a hit with teenagers and young professionals.
In 2002, Plains & Prints took on Gretchen Barretto as endorser and this move brought the brand to the national consumer’s consciousness.
Plains & Prints has strengthened its position as a major player in women’s apparel by providing stylish and classic apparel. The present product line includes shoes, handcrafted bags, belts, Bread and Butter (basic tees), Down Under (underwear), Eve (eau d toilette), and Intuitions (body spray).
In terms of brand recall and market share, Plains & Prints ranks among the top 5 local women’s apparel brands. The brand has become synonymous with quality clothing for women with style.
Plains & Prints offers franchise opportunities to entrepreneurs who wish to own and operate their own Plains & Prints boutique. Plains & Prints has been franchising since November 2002 and has franchised outlets in Cebu City, Bacolod, Iloilo, Davao City, Cagayan de Oro, Baguio, Dagupan, Cabanatuan, Marilao and Valenzuela.
Plains & Prints was awarded the Most Promising Filipino Franchise (retail category) in the 2004 Franchise Excellence Awards. The company’s franchise program was developed by Francorp, a leading international franchise consultancy firm with offices in the Philippines, Malaysia, Japan, United States and South America.
The brand now embarks on a bold expansion move that, hopefully, will introduce the Plains & Prints concept to the Asian market.
Leading the expansion plan is the introduction of new collections that highlight the creativity and ingenuity of local fashion designers. Plains & Prints has collaborated with designer Rajo Laurel for its high-end R.A.F. (Rich and Famous) line.
Roxanne explains that the new collection highlights Laurel’s avant-garde approach to fashion, featuring designs that incorporate architecture, romance and luxury.
Another major leap for Plains & Prints is its choice of Thai-British model Paula Taylor as its image model.
“With Paula as the model of our new campaign, we are confident that Plains & Prints will be given more exposure globally and hopefully, discovered as a brand that provides a new twist on classic fashion,” says Roxanne.
Next on the brand’s agenda is opening stores in key cities in Asia, starting with Thailand and Malaysia. The brand has 49 stores in the Philippines, including the newly opened branch at the fifth level of the Shangri-La Plaza Mall. Aside from its Asian expansion, Plains & Prints also wants to open more branches in prime locations in the country.
“Despite stiff competition from international brands, Plains & Prints still emerged as a top local brand which Filipino women prefer,” says Roxanne. “The next step is really to move forward and introduce Filipino fashion to the world. Now that we’ve been given an opportunity to do so, we have big plans to make our mark in the international fashion community.” Dinna Chan Vasquez

www.francorp.com

www.francorpconnect.com

What's Up Dog! To Expand through Franchising

What’s Up Dog to Expand Through Franchising
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San Francisco, CA, October 01, 2008

What’s Up Dog has announced they will be launching an aggressive expansion program through franchising.For over five years, What’s Up Dog has offered the hot dog enthusiast a variety of gourmet hot dogs and sausages within the San Francisco area. Their tantalizing menu consists of old carnival favorites like the corn dog, chili cheese nachos and garlic fries. But the eclectic selection of frankfurters and sausages (“Lemon Chicken”, Veggie Tofurky”, “Kielbasa”) has reinvented an American favorite.Americans eat an estimated 20 billion hot dogs a year, with 150 million consumed on Independence Day alone.

We love hot dogs so much that the U.S. Chamber of Commerce actually dubbed July as National Hot Dog Month over 50 years ago.It was this shared love for hot dogs that inspired What’s Up Dog owner King Lei to open his own hot dog shop. To ensure that he only offered the best, he visited hundreds of hot dog stores from Los Angeles to New York. And his research resulted in rave reviews. “People love our name and products,” remarks King.This response has led What’s Up Dog to Francorp, the world’s leader in franchise consulting, to assist them in the development of their franchise program.

For more information about What’s Up Dog, call (415) 864-3707

or visit www.whatsupdogs.com

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Venture Capital and Franchising

Sun Gapital Springs Mattress
Company lntoShape

SNAPSHOT:
Flrm: Sun Capital Partners
Target: Mattress Firm
Price $450 million
Return Multlple 68x
Buyer:J.W Childs
Flnanclal Adviser: William Blair
If anyone doubted that Sun Capital Partners could do much with a flagging mattress retailer, the tumaround shop put those doubts to bed last year. In January 2007, the Boca Raton-based shop sold MattressFlrm for a brisk 68x invested capital after four years of work.

Apparently, it was never a deal that Managing Director Steve Llff had to sleep on. Houston-based Mattress Firm was a great company that was underperforming and in need of operational support and capital. "We likect it from day one," Liffsaid.

Moreover, the slumbering giant came cheap. Sun Capital committed just $4.5 million in equity; another $30 million in debtcame from lenders, including, primarily, Cerberus Capital

Management. A little more than four years later, following an operational overhaul, a strategic refocusing and a build-up through acquisition, Sun Capital sold Mattress firm in a secondary
cleal worth $450 million.

Indleed, this a deal ripped from the Sun Capital playbook. The buyout firm seized an oppoftunity to buy a sagging division of a larger corporation, plunking down a small slice of equity to take a neglected but nonetheless valuable operating unit off the hands of a grateful parent. It then injected its operational and financial know-how into the company, producing something far
different than a sleeper hit.

Still, even Sun Capital, owner of a number of furniture companies, "didn't think [Mattress Firm] would be the huge home run that it was," Liff said. That's largely because Mattress Firm begged for moderate, not sweeping, reforms. Opening 85 more, while at the same time closing outlets in five unprofitable markets.

Marketwide trends also contributed to Mattress Firm's newfound success. The company got a boost from soaring mattress prices and sales volume thanks to Tempur-Pedic beds, whose "memory foam" technology costs thousands of dollars and whose enormously popular products began flþg from the stores. Plus, Americans began showing some desperation for shuteye.

"We really hacl the wind at our back, with so many pharmaceutical companies introducing new sleep drugs and people becoming more proactive about sleeping well." Liffsaid.

After a little more than four years of ownership, Sun Capital juiced the company's balance sheet, increasing EBITDA by a whopping 22x. ln January 2007, Sun Capital found a willing buyer in LBO shop J.W. Childs, which paid $450 million for the company. Not bad for a $4.5 million
equity investment.

Sun Capital nabbed the company in the first place because it didn't fall asleep at the wheel and moved quickly into acquisition mode. In 2002, Sealy Corp. owned Mattress Firm, and Mattress Firm was in tum Sealy's biggest customer.'vVhen Sealy's thenowner, buyout firm Bain Capital, decided to take the company public, Bain Capital needed to shed the underperforming Mattress Firm unit.

Bain Capital brought the deal to Sun Capital, which quicldy agreed to take the unit offBain
Capital's hands. (Bain Capital ended up selling Sealy in 2004 to fellow LBO shop Kohlberg
I(ravis Roberts for $1.5 billion; I(KR rook rhecompany public in 2006.)

The Mattress Firm deal was one of many bright spots in 2007 for Sun Capital.
Through the end of the year, the firm's first three funds have exited a combined 64
companies for an estimated gross IRR of 75 percent. The firm's fourth fund, which
closed on $1.5 billion in April 2005, has exited from 36 companies for an estimated
gross IRR of56 percent.

Meanwhile, the firm needed a scant 47 days in 2OO7 to close on S6 billion for its fifth tund, far surpassing its $4 billion goal. Last year Sun Capital also notched an 18x return on another turnaround play, selling Horsehead Holdings, the biggest zinc proclucer in the U.S., for $342 million.-C.L.

For example, the former Malachi Mattress America Inc., which owned 200 stores and was at the time of acquisition the nation's second largest nÌattress retailer, had no idea how many potential customers were walking through its doors each day, and the showrooms themselves were poorþ
desigaed and inhospitable. Moreover, many of its employees appeared sloppy and indifferent
to customers. These were small, almost cosmetic concems, but they were crucial because Mattress Firm, like all mattress retailers, competed in a highly aggressive business known for its small margins. Every bit counted.

But the company's basic strategy was sound. There was no management shakeup;
Sun Capital didn't replace Mattress Firm's longtime CEO, GaryFazio, a formerexecutive
at mattress manufacturer Sealy Corp. Rather, under Sun Capital's stewardship,
Mattress Firm made its stores more welcoming and homelike by installing wood floors
and hanging artwork on the walls. The company created supercenters with greater
selection. It also raised the bar on who worked for the company and took a greater
interest in what they did on the job. That included tracking customers' comings and
goings and giving them more elaborate service. Perhaps nrost important, Mattress
Firm grew like crazy, acquiring 98 stores and

Why The Firm Won

o The firm achieved a gaudy return on a solid turnaround play.
o Sun Capitalgenerated 22x EBITDA
growth through a combination of
strateg¡c, operational and
fi nancial improvements.
¡ The firm took a neglected
corporate unit and turned it into
market leader.

Reprinted trom Buyouts, Yearbook 2008 . 195 Broadway, gth Floor, New York, NY 10007 . (646) 822-3049