Archive for October, 2010

Buy A Franchise – Food Franchises

October 12th, 2010

(Buy A Franchise, Seattle Franchise, Bellevue Franchise)

Food Franchises:

The Food and Restaurant category of is the most popular and well known area of franchising. Food service franchises continue to thrive and long term trends appear to bode well for franchises engaged in the food service industry. Opportunities in food include: restaurants, QSR, pizza chains, Mexican food, sub shops, ice cream and smoothie shops, bakeries, donuts, coffee and beverages as well as bars. The list is endless. For more information on the top notch Food Franchises available in your territory, click the “Buy A Franchise” tab above, or contact Thomas Wolter at 206-200-3325.

(Buy A Franchise, Seattle Franchise, Bellevue Franchise)

Popularity: 2% [?]

Buy A Franchise – Marriot to Capture Russian Market

October 11th, 2010

(Buy a Franchise, Seattle Franchise, Bellevue Franchise)

Marriott International plans to open 25 new hotels across Russia within the next two-three years, the company’s Vice President and Area General Manager, Michael Stengel said on Monday.

The company plans to open one of its Courtyard hotels in the Urals city of Kazan in early 2011. Later in the year, further hotels are planned for Moscow, Krasnodar, Krasnoyarsk, Irkutsk and Ufa.

Marriott International is a luxury hotel group with modern facilities ranging from conference business halls to spa salons and fitness centers.

The company already has 11 hotels in Moscow, St. Petersburg and Samara.

Marriott International also operates and franchises hotels under other brands, such as the Ritz-Carlton.

In 2010, Moscow’s Marriott Grand won the World Travel Award for Russia’s Leading Conference Hotel.

(Buy a Franchise, Seattle Franchise, Bellevue Franchise)

Popularity: 2% [?]

Buy A Franchise – McDonald’s Social Responsibility a Privelage

October 10th, 2010

(Buy A Franchise, Seattle Franchise, Bellevue Franchise)
 
McDonald’s: “Social responsibility a privilege”.
 
Chief executive Jim Skinner says charities like the Ronald McDonald House are ‘the right thing to do’.

McDonald’s Franchises  may be known for its “billions and billions” served, but chief executive Jim Skinner gathered with Ronald McDonald and several hundred people in Saint Louis to celebrate a significant, if slightly smaller, milestone — the opening of the 300th Ronald McDonald House.

Skinner was joined at the ribbon-cutting ceremony at St. John’s Mercy Medical Center by several families of sick children.

Every night the Ronald McDonald Houses around the world accommodate more than 25,000 family members of children who must undergo treatment at affiliated hospitals. During his opening remarks, Skinner said McDonald’s Franchises have saved families millions of dollars in hotel room charges by giving them rooms to stay near health-care facilities when they must travel to seek care for their children.

Ronald McDonald House Charities officials said families stay an average of 10 days at RMHC facilities during treatments.

Skinner and Marty Coyne, chief executive of RMHC, noted that the charity stands in contrast to negative publicity McDonald’s receives as the prime target for activists assailing quick-service operators for alleged unscrupulous marketing to children. However, they view the company’s corporate social responsibility efforts not as an obligation but as a privilege, and they said RMHC continues its mission because “it’s the right thing to do.”

Skinner spoke with Nation’s Restaurant News about the importance of the brand’s image and the consumer experience. He also provided an update on how the company’s signature initiatives helped McDonald’s Franchises weather the recession.

(Buy A Franchise, Seattle Franchise, Bellevue Franchise)

Popularity: 7% [?]

Buy A Franchise – Yum Brands Have Foreign Flavor

October 9th, 2010

(Buy A Franchise, Seattle Franchise, Bellevue Franchise)

Taco Bell, Pizza Hut and KFC aren’t obvious candidates for this decade’s big growth story. But they show precisely why investors need to think outside the U.S.

yumtape1004

Sales at Yum Brands, the parent company of KFC and Taco Bell, are expected to rise about 5% during the quarter at China locations open a year or more.

The restaurant chains’ parent, Yum Brands, reports third-quarter earnings Tuesday. For a company whose brands are so distinctly American, its results are likely to show a business that is increasingly international and, specifically, Chinese. Sales at China locations open a year or more are expected to rise about 5% during the quarter, according to analysts, compared with 1% to 2% growth at U.S. locations.

That should push Yum one step closer to a turning point, likely to be reached sometime next year, at which more of its revenue comes from China than the U.S. Deutsche Bank analyst Jason West expects the company will fall just shy this year, with China contributing 36% of Yum’s estimated $11.2 billion in revenue, compared with 37% from the U.S. Locations across 100-plus other countries contribute the rest. Within five years, Yum is expected to generate twice as much revenue from China as it does from the U.S.

[AOT] 
More broadly, Yum reflects a shift in consumer-spending growth away from Western economies toward Asia and Latin America. Consumer spending across emerging markets is expected to increase by about 6% this year and next, says HSBC, compared with 1.4% in the developed world. The transition of those nations from export-led growth toward consumer-driven economies bodes well for retail and restaurant demand.

And yet there are relatively few large, publicly traded U.S. companies poised to take immediate advantage. McDonald’s rivals Yum for international exposure, although Brockhouse Cooper analysts note only about 20% of revenue comes from the fast-expanding Asian-Pacific region. Rival Burger King was just taken private. That basically leaves investors with Starbucks and Domino’s Pizza, says Barclays Capital analyst Jeffrey Bernstein. Both have smaller, albeit still formidable, overseas operations.

Little wonder that Yum is up more than 30% this year, while the S&P 500-stock index has risen just 2%. And at 16.7 times estimated 2011 earnings, compared with a multiple of 15.3 times for McDonald’s, the stock isn’t cheap. But that premium doesn’t look too rich given that Yum’s long-term, global growth prospects look tasty indeed.

(Buy A Franchise, Seattle Franchise, Bellevue Franchise)

Popularity: 2% [?]

Buy A Franchise – Franchise Agreements – Pt. 2

October 8th, 2010

(Buy A Franchise, Seattle Franchise, Bellevue Franchise)

This is Part 2 explanation of Franchise Agreements.

As stated in our prior discussion about Franchise Fees, the relationship is not one of parity. As mentioned, ‘If it were a relationship of parity, the Franchisee would take on a great deal more responsibility, and of course, liability and risk as well. So the relationship is not one of actual partnership in the legal sense. Therefore the Agreement is not a Partnership Agreement in the legal sense either. However, good Franchise systems will generally recognize their Franchisees as Strategic-Partners, meaning they are in a partnership of sorts that is aimed at achieving unified goals, but not one of legal partnership or equity.’

Consequently, the Franchise Agreement will describe the details of operation and the methods of protecting the system. After all, each Franchisee wants to be sure that the Franchisor has the right, and the clout, to deal with any Franchisee that causes detriment to the system – the very system in which they are investing. Each Franchisee should want to know that the Franchisor will have the ability to protect their investment, and evolve the business to increase in value on their behalf. In order to provide for those protections, the Agreement will seem to be slanted in the favor of the Franchisor. Actually, it’s slanted in the favor of the system.

One of the more expensive errors a Franchise Candidate can make is to simply take the Agreement to an advisor that is not familiar with Franchising. I have seen legal bills for thousands of dollars where the lawyer wanted to negotiate every clause of the Agreement as if it were a normal Partnership Agreement. Those dollars end up being wasted because the Agreement is not negotiable, regardless of the basic business tenet that everything is negotiable. In this case, the lawyer should be trying to help the Franchisee to understand that the system operates in a certain way, and to determine if the Franchisee is comfortable operating the Franchisors system in their own market under the terms described in the Agreement.

It’s akin to going into McDonalds and ordering three Big Macs and a hot dog. McDonalds doesn’t sell hot dogs. They have a proven formula that works for their Franchisees, and in their case, that doesn’t include hot dogs. So if someone wants to sell Big Macs, they can become a McDonalds Franchisee. If they want to sell burgers and dogs, then they will have to start ‘Joe’s Burgers & Dogs’.

In a more general sense, the Franchisor has certain disclosure requirements in both Canada and the United States. In certain States, the Uniform Franchise Offering Circular (UFOC) has to be registered before Franchises can be offered. It is incumbent upon the Franchisor to ensure that the Agreement that is signed with its Franchisees is consistent with the Agreement included in Disclosure Documents. Therefore, if the Franchisor negotiates the various clauses of its Agreements, then they will be inconsistent with their Disclosure Documents.

In summary, the main reasons that Franchise Agreements are non-negotiable include:

  • The requirement and desire for consistency among all Franchisees
  • The need for a strong Agreement that can consistently deal with any problems that may arise in order to protect the system for all Franchisees on an ongoing basis
  • The strong belief in the value of the system, which makes that system so valuable to each participant, extends to the Agreements among all parties
  • The need for consistency with Disclosure Documents

For a Refferal to a top Franchise specific legal firm to represent your interests, please contact me.

(Buy A Franchise, Seattle Franchise, Bellevue Franchise)

Popularity: 2% [?]

Buy A Franchise – New IRS 1099 Reporting

October 7th, 2010

(Buy A Franchise, Seattle Franchise, Bellevue Franchise)

New 1009 Reporting Requirements to Impact Franchise Businesses

On Wednesday, the International Franchise Association called for the repeal of expanded reporting requirements for small businesses enacted as part of the health care reform bill in comments submitted to the Internal Revenue Service.
 
“The immense scope of this new information reporting requirement will undoubtedly impact the operations of small franchised businesses and lead to serious unintended consequences,” said International Franchise Association’s  Senior Vice President of Government Relations & Public Policy David French.  “The proposed rules are very broad and afford no opportunity to minimize the burden of these requirements. Therefore, the IFA strongly believes that the only solution for franchise business owners is to repeal these new reporting requirements before they are scheduled to go into effect.”

Under the new health care law, The Patient Protection and Affordable Care Act, beginning in 2012, businesses must report all transactions that involve property and services, and which aggregate more than $600 in a year.  These transactions will trigger the requirement to file a Form 1099 with the IRS and furnish taxpayer identification numbers (TINs) for the businesses and persons involved.  Currently, businesses are only required to file Form 1099 for independent contractors they use in their businesses.  The new rules expand the requirements to cover all goods and services purchased for the business.

The International Franchise Association says that with the amount of new information the IRS will receive, small businesses are likely to face a heightened level of scrutiny from IRS examiners.

(Buy A Franchise, Seattle Franchise, Bellevue Franchise)

Popularity: 3% [?]

Buy A Franchise – Franchise Agreements Pt 1

October 6th, 2010

(Buy A Franchise, Seattle Franchise, Bellevue Franchise)

All good Franchise systems will require that Franchise Agreements are the same for all Franchisees. As a consequence, they will generally make the statement that the Franchise Agreement is a non-negotiable instrument. If a Franchise system allows for the negotiation of the various clauses contained within its Agreement that should be an indication that their own belief in their system is not as strong as you might think. Yet the system is what a Franchisee will be investing in, so…

That’s not to say that Franchise Agreements don’t evolve over time to consider current business practices and opportunities. However, in any short-term time window, the Agreement will be the same for all Franchisees joining the system. If you think about that premise, that’s really what Franchising is all about.

The Franchisor offers a consistent system of value to all its Franchisees, including a uniform support system, branding strategies, operating systems, and administration systems. That’s a primary reason for Franchisees to invest in becoming a Franchise within the system – because those things all deliver a great value as opposed to starting from scratch.

Therefore it is imperative that the Agreement between a Franchisor and each Franchisee is the same so that everyone knows the playing field is even. The Agreement is really a description of the business systems, and the rules of engagement for that system. Each Franchisee should review that Agreement to ensure that those systems and those rules of operation make sense for them. Each Franchise Candidate should make the decision that ‘yes, this makes sense to me, and I can prosper in this relationship, control my own outcomes, and build an asset for the future’.

(Buy A Franchise, Seattle Franchise, Bellevue Franchise)

Popularity: 3% [?]

Buy A Franchise – Fitness Together – Type 2 Diabetes

October 5th, 2010

(Buy A Franchise, Seattle Franchise, Bellevue Franchise)

PORTSMOUTH — Some of the newest clients exercising at area Fitness Together Franchise locations in Portsmouth are doing more than stepping on a scale to chart their progress. They’re giving blood.

They are part of a type 2 diabetes observational study being conducted by area Fitness Together studios to examine the impact of a 26-week individualized fitness training program. Regular blood glucose tests with a small prick on the finger are as important as exercise in measuring safe success.

“Diabetes is a major health issue affecting more than 24 million Americans, and our franchisees have told us they are happy to have a chance to make a difference,” says Jeff Jervik, president and CEO of Fitness Together Holdings, Inc.

Fitness Together Franchise studios are welcoming a minimum of 50 subjects to the program and will share the results with the American Diabetes Association (ADA) of Eastern New England where the Fitness Together Franchise group is also the Official Health and Fitness Sponsor for the ADA’s Step Out: Walk to Fight Diabetes.

  1. In one of the largest research projects of its kind, 42 Fitness Together Franchise studios have assembled across Massachusetts and Rhode Island to enlist men and women over the age of 30 who have been clinically diagnosed with type 2 diabetes and are more than 30 pounds overweight. They will be monitored by a Certified Diabetes Educator as well as Fitness Together studio personal trainers.

From September through February, the Fitness Together Franchise studios will chart weight loss and conduct A1c tests, which measure one’s average blood glucose level and helps track if people are at risk of complications owing to uncontrolled diabetes. The studios will also track blood pressure, medication use and sense of well-being before and after test results and look for indicators of significant health improvements from the clients. People with type 2 diabetes who wish to be part of the study can locate participating studios at www. FT Gets Results. com.

Each client who signs up for the type 2 diabetes study must be cleared by a doctor to exercise and must agree to six-months of observation for the following:

  • Resistance training three times a week with a personal trainer in the studio.
  • Cardiovascular exercise a minimum of three times a week in the studio.
  • An initial fitness evaluation followed by fitness re-tests every six weeks.
  • Documenting of all meals in a nutrition journal.
  • Frequent blood glucose checks at Fitness Together.

In the help to fight diabetes, the Fitness Together studio Franchise owners have also pledged to raise a minimum of $40,000 for the ADA Eastern New England Chapter. To join the cause, you can make a donation at participating studios.

(Buy A Franchise, Seattle Franchise, Bellevue Franchise)

Popularity: 2% [?]

Buy A Franchise – Fast Start on Franchise Businesses

October 4th, 2010

(Buy A Franchise, Seattle Franchise, Bellevue Franchise)

Franchises get head start on starting businesses.

Lynn Boden says the Curves franchise support has helped her Point Place fitness center grow.

Tom Curdes, the co-owner of two local Weed Man franchises, believes franchising has played a crucial role in the growth of his business.

Weed Man, a Canadian company, gave corporate support that helped him write his first business plan. That document allowed Mr. Curdes to secure financing and buy a 16,000-square-foot building in Holland last May.

He’s confident that kind of assistance will continue to benefit his franchises, which had $750,000 in sales last year. “Had it not been for my franchisor, who worked with me very diligently to put a business plan together, I probably never would have done this,” said Mr. Curdes, who has 25 employees among his Weed Man businesses and his independently owned company, Barron’s Lawn Service.

Mr. Curdes is one of thousands of franchisees whose businesses affect the economy, according to U.S. Census Bureau data.

For the first time, the agency recorded and analyzed statistics on franchise businesses in its 2007 economic census. The survey is conducted every five years, and franchise information was issued last week.

The bureau received responses from 453,326 franchises, which represented 10.5 percent of the 4.3 million companies surveyed for 2007. Those companies reported about $1.3 trillion in total sales for that year, compared to $7.7 trillion for all businesses. They also paid $153.7 billion in salaries to 7.9 million employees.

Statistician economist Andrew Hait said the Census Bureau was surprised to see that franchises make up a substantial part of the nation’s businesses. The bureau didn’t study the number employed by each franchise. But Mr. Hait said many of the businesses were in industries that typically include small companies, including fast food, educational services, and diet and fitness centers.

That may be because franchises provide support to small business owners who pay for it, compared to independent entrepreneurs who usually go it alone.

“The franchise agreements give them a head start in getting themselves going,” Mr. Hait said.

That was the case for Lynn Boden, who owns a Curves fitness center in Point Place. Mrs. Boden bought the business three years ago from its previous owner, who opened the business in 2003.

Mrs. Boden pays monthly franchise and marketing fees that provide her business with targeted advertising campaigns and technical assistance, among other services. She said the fees have been somewhat difficult to pay during the recession.

However, she has grown her business. Thursday, the center has three part-time employees and annual sales of about $60,000.

She believes Curves’ franchise support will help her build the company. “I do think that I get something in return for that franchise payment I’m making,” Mrs. Boden said.

Mr. Curdes said the franchise costs have been manageable for Weed Man. They are paid seasonally, based on the number of company vehicles. The assistance Mr. Curdes pays for from Weed Man has made the business more successful than it would have been on its own.

“The national buying power and the negotiations they do for us behind the scenes … I couldn’t do that myself,” he said.

(Buy A Franchise, Seattle Franchise, Bellevue Franchise)

Popularity: 2% [?]

Buy A Franchise – McAlister’s Deli

October 2nd, 2010

(Buy A Franchise, Seattle Franchise, Bellevue Franchise)

After its CEO of more than a decade stepped down in July, McAlister’s Deli, a fast-casual concept with 295 locations in 22 states, named Frank Paci its new chief on Sept. 9.

Before accepting the role of CEO, Paci was executive vice president, CFO, and corporate secretary at The Pantry Inc., a publicly traded convenience-store chain. In his 25 years in retail and foodservice, he has held senior roles at Blockbuster, Burger King, and Pizza Hut.

Today Paci takes the helm of the Ridgeland, Mississippi–based company after McAlister’s experienced a roughly 50 percent decrease in franchise openings in 2009 even as its sales grew 2.5 percent year over year. QSR got the chance to speak to him last week just before he assumed the role of CEO for the fast-casual brand.

What appealed to you about being the CEO of McAlister’s Deli?

McAlister’s is a great concept and a great brand with an incredible amount of potential. It has been successful in the past, and I believe it will continue to be successful.

If you look at the products that we have, they’re great quality. Our [Famous Sweet Tea] is a great product. Our customers are loyal. And I think we are right on target in terms of the trend of eating fresh food. [McAlister's has no fried food.]

What experience do you have in the foodservice industry?

I worked in the finance group at Burger King and was ultimately head of corporate strategy and planning. From there I went to running franchise development for the United States, Canada, and Latin America, and ultimately I became head of franchise development worldwide in the mid-90s.

From there I went to Pizza Hut to run its school-delivery program. I worked with Aramark, Host Marriott, institutional franchisees, and a lot of nontraditional venues from convenience stores to airports to college campuses. As part of that assignment, I was involved in the very first co-branding of putting a Pizza Hut inside of a Taco Bell.

At a time when the economy is sluggish and consumers are pinching pennies when it comes to dining out, what do you think is the appeal of McAlister’s?

People are always interested in getting value. You know, “Am I getting what I’m paying for?” Certainly with the [slow] economy you have some trading-down going on, and I think McAlister’s in that fast-casual niche is a great place to go for quality food. It is not as expensive as a casual-dining restaurant, and it is a step up in quality from the quick-service segment.

What initiatives do you plan to implement as CEO?

It’s a little bit early. I know McAlister’s more as a customer at this point. My first goal is to learn what has worked for us, what’s been successful, and to see where there are opportunities [for growth] in the business. Running a business, in my mind, is really about knowing where to put your resources and where to put your investment. For me, it will be about getting up to speed.

With a business that has been successful like McAlister’s, obviously you want to learn from [the company's] experience. I’ve had multiple experiences when I worked at Burger King and at Pizza Hut where there were things that worked well and things that didn’t. So the combination of my prior experience and McAlister’s historical experience will help guide me in finding the right places to drive the business forward.

How long do you think it will take you to get comfortable running a new company?

I expect I’ll be comfortable right away. My objective is to meet the staff, do some training in restaurants, meet the franchisees, and meet the group here [at the corporate offices] so that we can refine where we want to take the business.

Your predecessor, Phil Friedman, ran the company for a long time. How do you make the transition a smooth one?

 (Buy A Franchise, Seattle Franchise, Bellevue Franchise)

You have to respect the fact that Phil was here for 11 years and ran a very successful business. To me that deserves a lot of respect. That doesn’t mean you don’t change anything. Part of the learning process is understanding why we were successful so we can be more successful in the future.

Popularity: 2% [?]

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