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March 2008 |
Vol. 10, Issue 3, Part 2, March 2008 |
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March: The ChangeOver
Month
In this issue...
Video
:
Illusions: How Do They Do It?
Click
Here
Street Smarts:
Surefire Tips For
Improving Your Next Franchise Convention
Industry Focus:
Annual Franchise Conventions-
A Waste of Money?
Guest Column:
Best Practices in Protecting and Enforcing Trademarks,
Copyrights and other Intellectual Property Interests.
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Surefire Tips For
Improving Your Next Franchise Convention
Want to stop wasting
money and start producing results from your franchise conventions?
You can avoid making costly mistakes with these
tips from Rick Cornish of Flying Colors:
1. Set objectives. Use your objectives in
your planning, stay focused, and always control the message.
2. Ask questions. What do I want attendees to do? What do
I want my staff to do? What do I want vendors to do?
3. Follow a disciplined creative development
process. Keep an open mind to new or non-traditional ideas.
Bring in fresh ideas, but use a structure when brainstorming.
Match the medium to the message and remember: good graphic
design matters.
4. Promote early and often. Nothing else
matters if they don’t come. Give them good (business)
reasons to show up. Videotape your convention and start
promoting next year’s convention immediately post-show.
5. Presentation matters. Learn proper mic
techniques and rehearse, rehearse, rehearse. Remember, brevity
is a blessing—don’t recap. Choose the right
guest speaker. And please—don’t read your PowerPoint.
6. Go with the flow. Plan the rhythm of
your show. Start with a strong first impression, choose
the right breakout format, and build to a climax.
7. Have fun with a purpose. This isn’t
a pricey party. Choose appropriate entertainment that will
support your convention’s business objectives. Don’t
let them forget the experience.
8. Get it right the first time. In live
production, there is no second take. Every presenter should
have a tech rehearsal and the tools they need.
9. Don’t skimp. Avoid the hotel A/V
department. Go for quality sound, projection, and lighting.
It doesn’t have to be extravagant; it does have to
work.
10. Manage your budget. Look for hidden
costs in hotel, speaker, and entertainment contracts. Urge
all your top suppliers to sponsor meals and other needs.
Annual
Franchise Conventions- A Waste of Money?
The typical franchise convention is an expensive
shindig, with a price tag that can easily run into six figures.
So what are you getting for that money? An expensive theme
party or a stronger organization? A convention is an opportunity
to improve your business-something most franchise organizations
fail to do according to Rick Cornish of Flying Colors,
a premiere convention production company. "A franchise
business needs to do two things: sell more units and make
franchisees more successful. The average annual convention
does neither," says Cornish.
A convention should be the centerpiece of
franchisee communications, says Cornish. "You have to realize
that franchisees are thinking, 'what have you done for me
lately?' They feel they're out on the Russian front while
the franchisor is back in the ivory tower with no clue about
what's happening out in the real world. A well-planned convention
can promote a greater emotional connection and turn a lot
of those 'have-to's' of franchising into 'want-to's' for
the franchisee."
A good place to start is to structure the
convention around a specific objective that will help grow
business. "For example, let's say there's a product that's
being introduced and a significant percentage of the network
has been slow to adopt it. First, create the message around
the benefits of introducing this product and how easy it
is operationally to add to existing store operations. Then
make the franchisee the hero. You might say, 'meet three
franchisees who have increased their same store sales by
5% by promoting this product.' A really brilliant CMO or
CEO can get up on stage and talk about how great it is.
But when peers gets up there and talk about how it worked
in their stores, the reaction is 'gee, those guys aren't
any smarter than me, they're just making more money.' Now
the attending franchisees have a reason to do what they
can relate to."
One reason many conventions fail is because
they don't meet franchisees' expectations. "Franchisors
often think it's ok to do a homemade kind of convention,
but that projects an unprofessional image. An increasing
number of franchisees are coming out of corporate America;
they know what a good meeting looks like. When they see
something that's been done on the cheap, it undermines the
franchisor's credibility. The mistake is in not taking it
seriously enough."
All that planning and money-how do you know
if it's worth it? Find a way to measure the effect your
convention has on attendees such as a survey. "We have an
instrument called eMotivate, a 5-minute web-based tool that
measures how franchisees are feeling on a quantitative basis.
We run it prior to the convention and then again to conduct
a post-convention 'post-mortem' to see where we've moved
the needles. Invariably, the franchisor is surprised at
some of the findings."
Contact Info:
Rick Cornish, President & Creative Director
Flying Colors
612-752-0222; rcornish@flyingcolors.biz
www.flyingcolors.biz
Best
Practices in Protecting and Enforcing Trademarks, Copyrights
and other Intellectual Property Interests.
By: James A. Wahl
Trademarks, copyrighted works, trade secrets
and proprietary business information form the core of any
franchise system, and are frequently a company’s most
valuable assets. Trademarks, including service marks, logos,
slogans and trade dress, define the brand identity as presented
to the public. The “behind the scenes” business
know-how on which the system is built and implemented by
franchisees is embodied in a variety of copyrighted and
proprietary works – operations manuals, proprietary
processes, recipes and formulas, custom software, advertising
copy to name a few.
Obtaining, maintaining and enforcing legal
protections for these intellectual property interests is
of critical importance to all franchise operations. Following
are some best practices to maximize your legal protection.
• Register all trademarks with the
US Patent and Trademark Office for all goods and services
your business offers.
• Monitor your trademarks as
used on the Internet, in competitors’ advertisements,
in publications and other media, and take prompt enforcement
action against unauthorized users.
• Register domain names for all of your trademarks,
including common misspellings and variations, and register
domain names if available for names describing the products
and services your business offers.
• Place copyright notices on manuals, customized software
and other proprietary business materials.
• File copyright registrations with the U.S. Copyright
Office for important works that are likely to be copied
by competitors.
• Place prominent confidentiality notices on important
internal business documents, operations manuals, and other
proprietary information.
• Have your key officers and employees, as well as
franchisees and their managers, sign confidentiality and
non-compete agreements.
• Obtain written work for hire / copyright assignment
agreements from all outside firms such as software developers,
consultants, advertising agencies and design firms that
produce any creative works for your business.
The last point is commonly overlooked, but it is a practice
that every business must take. If you adopt only one practice
as a result of reading this article, it should be this.
Without written work for hire / copyright assignment agreements,
your business will not have ownership of the copyrights
to creative works your company has hired outside firms to
produce. You will instead have only limited rights to use
the works, and the outside firm will retain rights to use
the works for others, including your competitors.
While this is not an exhaustive list, it
is a good starting point to evaluate your current procedures.
Franchisors that follow these practices will have taken
the basic steps needed to secure legal protection for key
intellectual property assets.
Jim Wahl is the Co-Chair of the Intellectual
Property and Franchise Departments at Krass Monroe, P.A.,
Minneapolis, Minnesota Jim represents clients in all aspects
of franchise, trademark, copyright and trade secret law,
including trademark evaluation and clearance, branding issues,
registration of trademarks and copyrights, franchising,
licensing, technology, computer software, and enforcement
of trademark, copyright, trade secret and related intellectual
property rights. He has been recognized as a “Minnesota
Super Lawyer” by Minnesota Law & Politics and
a “Legal Eagle” by Franchise Times. He can be
reached at 952-885-5991 or jwahl@krassmonroe.com.
Popeyes Founder Al Copeland Passes Away
Al Copeland, founder of the Popeyes Chicken & Biscuits and Copeland's
of New Orleans chains, died this month at the age of 64
at a clinic in Germany, where he was being treated for cancer
of the salivary gland. A flamboyant figure who also supplied
spice mixes to the restaurant industry through his Diversified
Foods & Seasoning company, Copeland established the spicy,
Cajun-style chicken of Popeyes as a local favorite before
turning it into a sizeable franchise chain with national
ambitions.
Copeland eventually lost ownership of the
brand after buying a rival operation, Church's Chicken.
A successor company, now known as AFC Enterprises, eventually
sold Church's. AFC still operates and franchises Popeyes
which has grown to 1,905 restaurants. Copeland later shifted
his attention to his dinnerhouse operations, including Copeland's
of New Orleans. He also experimented with a full-service
concept called Straya, a local favorite in New Orleans for
a number of years. (Nation's Restaurant News, 3/24/08)
Franchises Show Resiliency in Slowing Economy
Despite a rocky market, franchise businesses continue to perform well,
according to a recent Pricewaterhouse-Coopers study on growth
of such businesses nationwide. The study researched 5,940
franchise businesses in operation, generating revenue of
$5.3 billion and employing 79,800. Owners and industry experts
expect growth this year for the franchise industry even
as the economy slows. In past recessions, the franchise
industry has seen an uptick in franchise sales. During these
periods, franchises survive mainly on brand recognition,
reliable systems, and growth. The report concluded that
the franchise industry, valued at $880 billion, had annual
revenue increases of 9 percent from 2001 to 2005. (Toledoblade.com,
3/20/08)
In a potential departure from its long heritage, KFC
Corp. will give franchisees the option of rebranding their
stores "Kentucky Fried & Grilled Chicken" as part of the
scheduled rollout of a nonfried product now in widespread
tests. The revised moniker already is being used on store
facades during tests at what is believed to be hundreds
of units in Colorado Springs, Colo.; San Diego; Oklahoma
City; Jacksonville, Fla.; and Austin, Texas.
After failing repeatedly for more than a decade
to find a following for nonfried chicken offerings, the
struggling division of Yum! Brands Inc. is pinning its hopes
for success this time in part on high-volume cooking gear
that would be deployed to all domestic stores by next spring.
KFC is marketing the new product as grilled, but the chicken
is actually roasted in an automated, high-temperature convection
oven. The cooking process is designed to yield tastier,
juicier chicken. The Kentucky Grilled Chicken product, depending
on the part of chicken, has as much as 50 percent fewer
calories and half the sodium, and up to two-thirds less
fat than KFC's fried chicken. (Nation's Restaurant News,
3/21/08)
Motel 6 Unveils New "Phoenix" Prototype
Motel 6, known for offering a clean, comfortable room
for a low price, is reinventing the economy lodging experience
with the announcement of its first new prototype in 12 years.
Accor North America, one of the nation's largest hotel owner/operators
and the parent company of Motel 6, will unveil the Motel
6 "Phoenix" prototype this month. Major features of the
Phoenix prototype include a new building exterior, a spacious
lobby with a new 24-hour food and beverage vending market
place, and a modern guestroom design that features bright
accent colors. The room includes ambient lighting, wood-effect
flooring rather than carpet, a 32-inch flat-screen TV and
a pedestal bed with a new taupe-colored coverlet and pillow-top
platform mattress.
The first Phoenix prototype will be a corporate-owned
location and construction will begin in the latter half
of 2008. The new prototype will be available to franchisees
in the summer of 2009. Future plans call for many current
Motel 6 corporate properties to be retrofitted with elements
of the new prototype. (Hotels Magazine, 3/11/08)
Mama
Fu's Bought by Franchisee
The top franchisee of Mama Fu's Asian House has bought the Pan-Asian
fast-casual restaurant brand in the United States and Mexico
markets for an undisclosed sum from Atlanta-based Mama Fu's
Noodle House. Austin, Texas based Murphy Adams Restaurant
Group, the largest franchisee of Mama Fu's, now has 17 Mama
Fu's restaurants in the United States. Adams already owned
five and had a sixth in development before the deal. And
now, the company also has the rights to future Mama Fu's
restaurants in Mexico.
Mama Fu's was started in 2003 by Atlanta-based
Raving Brands Inc. In 2006, 40 Mama Fu's Asian House franchisees
and investors sued the fast-casual franchising company and
its founder, Martin Sprock, alleging fraud and breach of
contract. According to a spokesperson for Mama Fu's, Murphy
Adams Restaurants Group would not inherit any liabilities
from the suits. (Atlanta Business Chronicle, 3/12/08)
Pizza Hut to Start Delivering Pasta
Pizza Hut said it would start delivering family-sized
servings of pasta entrees systemwide on April 6. Two delivery
pasta choices will be offered: creamy chicken alfredo and
meat marinara. Each is priced at $11.95, which is the same
price of a large pizza with one topping. Delivered in pans,
each order feeds six people and comes with five breadsticks.
Franchisor Pizza Hut Inc. said the new delivery options
would not require more equipment for stores or delivery
people. The pasta will be supplied to locations frozen and
baked in the units' pizza ovens. The delivery pouches used
for pizzas will also be used for the trays of pasta, and
the aluminum pans can be reheated. Pizza Hut consists of
6,200 restaurants in the United States, with 4,000 more
operating in 100 other nations. (Nation's Restaurant News,
3/25/08)
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