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End of the Year(2005) Q & A with Franchise
Leaders - Dec. Part 1
Franchising saw some changes in 2005, most of which were good. More American
franchises are circling the globe, the hospitality business enjoyed a
recovery, and restaurant owners breathed a collective sigh of relief as
customers chowed down on carbs again. For our end of the year roundup,
we asked an array of franchise industry players to reflect on franchising
events of 2005. In the spirit of the season, we also had a little fun
asking about personal experiences, dreams, and choices.
The Following franchise leaders answered our questions:
Matthew
Shay, President, International Franchise Association (IFA). The IFA
is a membership organization of franchisors, franchisees and suppliers
in its 45th year. In March of 2005, more than 2,000 franchise executives
participated in the IFA Annual Meeting and Convention.
John Fox, Managing Director, DJM Asset Management.
DJM is a diversified real estate consulting and advisory firm that purchases,
evaluates, restructures, disposes of and facilitates the acquisition of
all types of real estate both nationally and internationally.
Steve Feirman, franchise attorney. Feirman
is a partner with DLA Piper Rudnick Gray Cary. He concentrates his practice
in domestic and international franchise and distribution law, as well
as antitrust and trade regulation matters.
Steve Hockett, President, FranChoice, Inc.
FranChoice is a 5-year-old consulting company that acts as a broker for
franchisors while helping potential franchisees find the right franchise
opportunity to meet their goals. |
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Matthew Shay, President, International Franchise Association (IFA) |
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Q: What is your reaction to the article in Fortune
Small Business, "Hidden Risks?"
A: That Fortune missed an opportunity to inform their readers and deliver
a balanced message about franchising by acknowledging the "rewards" as well
as the '"risks." |
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Q: Favorite beverage?
A: Hot chocolate on a cold day, Heineken on a hot day. |
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Q: What was the franchise event of the year?
A: The IFA Annual Meeting and Convention. More than 2,000 franchise executives
gathered earlier this year to network and exchange ideas about how to expand
and refine their franchised businesses. |
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Q: What was your childhood ambition?
A: To be an oceanographer. |
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Q: Next big trend for the franchising industry?
A: Products and services for the retiring baby boomer generation. |
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Q: Favorite hotel amenity?
A: Over-sized bath towels. |
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Q: What's the biggest myth about franchising?
A: That there are limits to what can and will be franchised. |
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Q: Last book you read?
A: "1776" by David McCullough. |
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Q: First job you ever had?
A: Planting roses in spring and cutting Christmas Trees in winter for a
landscaping company. |
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John Fox, Managing Director, DJM Asset Management |
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Q: What was the most interesting franchise event
this year?
A: The sale of El Pollo Loco at an extremely high price. |
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Q: What law would you change?
A: I would go to a flat tax. |
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Q: Biggest pet peeve about franchisees?
A: Believing that they know more about the system than the franchisor. They
buy the franchise because it's a proven business system and then they try
to reinvent the wheel. They should have stayed in business for themselves
or picked something else. |
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Q: Where is your favorite vacation spot?
A: East Cape, Mexico. It is a little hidden gem. |
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Q: What's the trend for real estate next year?
A: It's going to stay strong in most urban areas on both coasts. The bubble
burst we predicted five years ago didn't. As interest rates go up, cap rates
have to increase and values will go back to where they should be, but it's
still going to be good. |
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Q: Last book you read?
A: "Illusions" by Richard Bach |
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Q: Favorite hotel amenity?
A: Coffee. No latte. I want black coffee, understand? Black! |
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Q: What's the biggest myth about choosing a location?
A: All corners are good. |
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Q: What's your philosophy?
A: Life is good and every day is a great day. |
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Steve Feirman, Partner, DLA Piper Rudnick Gray Cary |
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Q: As a very loyal reader of our newsletter,
what do you like about it?
A: FranchiseHelp Online is pleasing to the eye and user friendly in addition
to containing very interesting stories and information. |
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Q: What is your reaction to the article in Fortune Small Business,
"Hidden Risks?"
A: The article was overly pessimistic. It quoted those that primarily had
an axe to grind against franchising or lawyers representing those people |
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Q: Favorite source of business news?
A: Wall Street Journal |
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Q: What was the franchise event of the year for you?
A: The first Israel International Franchise Fair in Tel Aviv. |
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Q; First job you ever had?
A: Golf caddy. My first real job was as an attorney for the Federal Trade
Commission right when I got out of law school. |
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Q: What was your childhood ambition?
A: From the time I could read the sports section I wanted to be a pitcher
for the New York Yankees. |
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Q: Biggest pet peeve about franchisors?
A: When the company says they understand the rules and they're going to
follow the rules, and then they go off track. As a lawyer that's very upsetting.
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Q: What's your favorite movie?
A: The Wizard of Oz |
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Q: How do you spend your leisure time?
With my family. And travelling, film, and skiing. |
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Steve Hockett, President, FranChoice, Inc. |
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Q: What is your reaction to the article in Fortune
Small Business, "Hidden Risks?"
A: I've heard it all before. Franchising isn't perfect, but there's no question
it increases your chance of success. |
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Q: Who do you admire most?
A: People who write good essays. |
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Q: Franchisors seem to be utilizing organizations
like FranChoice more and more for selling franchises. Do you see this continuing
in 2006?
A: Yes. The most difficult process in franchising is finding highly qualified
candidates and that is what we do - send high quality candidates to franchisors.
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Q: What should a franchise company look for in a franchise brokerage?
A: The key is a solid system for generating qualified leads that are a true
match. |
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Q: First job you ever had?
A: Delivering the Sioux City Journal. |
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Q: What for you was the franchise event of the year?
A: IFA conference in March. FranChoice celebrated its fifth birthday this
spring and participating in the activities of the IFA Conference really
drove home how we have helped many franchise companies grow aggressively
and change their business. |
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Q: How do you spend your leisure time?
A: Reading, golf, and growing flowers. |
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Q: What was your proudest moment?
A: It was also my saddest moment, when I gave my son a hug and sent him
off to college |
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