Franchise Help
 Free Newsletter Sign Up    HOME | ABOUT US | CONTACT | SITE MAP | MY SHOPPING CART    

Become a Member
My Account Login
Free Franchise Newsletter Signup
Archive Franchise Newsletter Search
Current Franchise Newsletter
Franchise Product Store
  - Franchise Disclosure Document
  - Research
My Shopping Cart
Franchise Directory
Newly Listed Franchises
Best Franchise Opportunities
Featured Franchise
Franchise Supplier Directory
Newly Listed Franchise Suppliers
Best Franchise Supplier Opportunities
Featured Franchise Supplier
Public Franchise Companies
Franchise Show Schedule
Franchise Quiz

December 2007
Volume 9, Issue 12, Part 2

Publisher: Mary E. Tomzack
Editor: Lynie Arden
Assistant Editor: Vanessa Goldschneider
Design: Halit Rugova


December:
Festivities and the end of a year

In this issue...

Video:
Magic Tricks to give you something to contemplate. How do they do it?
Click Here.


End of the Year (2007) Q & A with Franchise Leaders - Dec. Part 2

It's fascinating how different people in the same (franchising) industry can share similar ideas on some issues yet be so diverse in other ways. As we continue our end of the year roundup, we found that people from all areas of franchising have unique insights into where franchising has been and where it's headed. Of course, we couldn't resist having some fun uncovering the lighter side of these dynamic people.

Tune in with Marianne Murphy, Steven Greenbaum, Don Johnson, Harold Kestenbaum and Dan Martin.

Marianne Murphy is the VP Marketing & Development for HouseMaster, a home inspection franchise.
Q: How is the troubled real estate market affecting your business?
A: We’re a 30 year old franchise so we’ve been there, seen that. In markets such as this we tend to thrive. What happens is the crowd thins. Anybody who thinks they could get into the business just because there was a boom is not going to survive. And that’s what a good quality franchise does, helps you get over the rough markets and actually thrive in them.
Q: What’s the first job you ever had?
A: Car hopping at a Stewart’s Root Beer. And then a Carvel, so I’ve been in franchising all my life.
Q: What’s the biggest myth about franchising?
A: That it’s easy—that it’s a “get rich quick.” It’s not. A lot of hard work has to go into it.
Q: If you could trade places with anyone for one day, who would it be?
A: Lynette McKee, VP of franchising for Dunkin’ Brands. She came from a very humble beginning and is a very motivated woman. I just think she is a good role model and I’d love to see how she pulls it all together.
Q: What’s the most adventurous thing you ever did?
A: Tipping my skis over one of the back bowls at Vail. I had no business being there and just kept going.
Q: What’s your favorite hotel amenity?
A: A pillow-top mattress.
Q: What’s your secret indulgence?
A: Dark chocolate Hershey’s Kisses.
Q: What’s your fantasy job?
A: Talk show host.
Q: if you could invite anybody to a dinner party, who would it be?
A: I don’t cook so it would have to be Rachel Ray because she can cook and she’s just plain fun. Besides, if I had her cooking, I could get anybody else I wanted to come.



Steven Greenbaum is President, CEO and cofounder of PostNet International, a business services franchise. He is also slated to become the Chairman of the IFA in 2008.
Q: How will the cooling economy affect your business in 2008?
A: We’re really a small business support center that is needs-based, which is very different from a business that is reliant on a trend or certain market conditions. People use our stores as a problem solver. It’s an extremely stable business economically, now more than ever.
Q: What’s your favorite destination?
A: I absolutely love Colorado and that’s where I live. I have the luxury of living in my favorite place.
Q: What was the most interesting franchising trend in 2007?
A: There are now ways of utilizing franchising in a social environment to serve under-served communities. For example, I’m on the board of directors of a franchise model in Kenya that has 65 child and family wellness shops. We’re using franchising as a vehicle to provide critical drugs and medical services to communities in Africa where they have no access and no hope of being treated.
Q: What’s your biggest gripe about mainstream news?
I really get frustrated with some of the minutia. I was shocked at how much energy and attention went into this whole baseball steroid issue. It’s a big issue, but how could we be so consumed by this when you look at the world of issues that are on our plate right now?
Q: What’s your favorite franchise that you personally frequent?
A: Del Taco. It’s a brand that we’ve known and respected for years and it’s now under the leadership of Sid Feltenstein, CEO of Sagittarius Brands. He’s one of the most visionary, focused, and competent executives in franchising today.
Q: What would you be doing if you weren’t doing this job?
A: I can’t imagine anything else. This job is me. I love the opportunity to be part of a shared vision, to lead and motivate people. It’s very humbling and it’s an honor to do what I do.
Q: Do you ever do anything adventurous?
A: All the time. I’m a single engine airplane pilot. I also scuba dive, mountain climb, mountain bike ride, and travel worldwide from rural parts of Africa through Europe.
Q: What’s the most important issue facing the nation in 2008?
A: Unification. Whether we’re looking at Republicans versus Democrats or ethnicity or other issues, as a nation we need to come together. We need to learn how to understand each other’s differences and challenges and work more effectively together.
Q: What’s something you admire about another country?
A: Who wouldn’t admire the healthcare system in Canada? I also admire the strength and the conviction of the South African people. Over the last 14 years to see that country emerge after Apartheid and become the nation that it has and see the passion of the people and the empowerment movement—we should stand up and take notice.



Don Johnson is a business finance consultant with Diamond Financial Services, loan packagers specializing in SBA financing. He also cohosts a franchise radio show on the Internet.
Q: Do you think the cooling economy will affect the franchising industry in 2008?
A: I definitely think there will be some effect, but on a scale from 1 to 10, I’d say in the 2-3 range.
Q: What bit of advice would you give to franchise buyers looking for financing?
A: Make sure you look at all your financing options and make sure you get prequalified early on in the process so you know what your loan potential is—even before you start to look for a franchise. And obviously to speak to a franchise financing specialist because we work with lenders that are very pro franchise.
Q: What do you do in your leisure time?
A: I like playing with my twins who are 3 ½. I also read a lot.
Q: What do you like to read?
A: I like biographies and autobiographies of people who are successful. I read the Sam Walton book, and the Dave Thomas book, and even Franchising for Dummies, which was cowritten by Dave Thomas. But I’m a big fan of Donald Trump, so his books like The Art of the Deal are my favorites.
Q: What’s the biggest myth about franchising?
A: People assume that once they make their investment it’s not going to be as hard as a regular non-franchise business. They don’t realize that they’re going to have to work just as hard as with any other business.
Q: What’s the bravest thing you ever did?
A: Starting up a business at age 27.
Q: Who would you like to invite to a dinner party, living or dead?
A: Babe Ruth, Abraham Lincoln, my dad, and Donald Trump.
Q: What’s your fantasy job?
A: Exactly what I’m doing.



Harold Kestenbaum is a top franchise attorney with Ruskin Moscou Faltischek. His book, So, You Want to Franchise Your Business? (Entrepreneur Press) will be released in June of 2008.
Q: How will the upcoming election affect franchising in 2008?
A: Franchising revolves around the economy and I think that we haven’t been helped by Bush. I’m not sure which candidate would be more of a benefit to franchising. We did very well with Bill Clinton in the White House. I’m not sure she’s ( Hillary Clinton ) as good. It’s hard to tell.
Q: What’s your biggest pet peeve about franchisors?
A: They don’t read.
Q: What was the most interesting trend in franchising in 2007?
A: A lot more women are getting into it, both as franchisors and franchisees.
Q: What law would you like to change?
A: The FTC rule, which is the main law for franchising, doesn’t require a registration with the government like the securities law does. I would love to see the FTC change the law so you have to file in one place for the whole country, which would be in Washington like the SEC does. That’s not the way it is in franchising. You have 15 different states and it’s all over the place.
Q: What was your childhood ambition?
A: To be a professional athlete or a sports agent.
Q: What is something you admire about another country?
A: The country I admire the most is probably Israel. They’re like the little engine that could. For a small country with a small population, they’ve done so much to better themselves, as opposed to all these gigantic nations and they do it with such little help from anybody except us.
Q: Who do you admire most?
A: Bill Clinton, because he grew up poor, struggled to become President and he really made quite a man out of himself.
Q: What’s the most important issue facing the nation in 2008?
A: I’d like to say the economy but I have a real problem with immigration issues.
Q: What’s the bravest thing you ever did?
A: Speaking up for my son when he needed to be spoken for.
Q: Where would you like to go that you haven’t yet gone?
A : Alaska and Israel.


Dan Martin is President of IFX Online, a tech firm that develops web-based applications for franchise companies. He is also Chairman of the IFA Suppliers Forum.
Q: How is the cooling economy going to affect the franchise industry in 2008?
A: It’s having somewhat of an impact on new sales of franchise systems in that a number of prospective franchisees are finding it more difficult to get financing.
Q: What was the most interesting franchise event of 2007?
A: The IFA convention in February. It was the biggest convention we’d ever had and it incorporated a remarkable series of workshops, especially for startup franchisers.
Q: What’s your biggest pet peeve about franchisors?
A: They don’t document their communications enough with their franchisees.
Q: What’s your favorite movie?
A: Saving Silverman. I saw it on DVD probably 10 times.
Q: What do you do in your leisure time?
A: Run, ride motorcycles, play tennis, and hang out at the beach drinking Margaritas.
Q: What was the first job you ever had?
A: House painter.
Q: What’s your favorite franchise that you personally frequent?
A: Baskin Robbins
Q: What was your proudest moment?
A: Making it to the office today on time
Q: What’s your philosophy of business?
A: Multitasking is critical.

Foodservice Sales Growth to Slow in 2008

Foodservice sales in the United States will grow at a slower rate of 4.4 percent during 2008 or just under 1 percent in inflation-adjusted or "real" terms, the National Restaurant Association forecast in its comprehensive outlook for the year ahead. That predicted rate would fall well below the association's projected 2007 real growth of 2.1 percent and the 3.5-point gap between the real and nominal figures for 2008 - a discrepancy usually attributed to menu price increases - underscores the cost pressures that are expected to eat into margins despite the price hikes.

Nonetheless, the increase forecast by the NRA would raise total U.S. foodservice sales to $558.32 billion, a $23.6 billion rise from the projected '07 tally. Association officials often point out that the industry's nominal sales increase is usually larger than the total intake of many major U.S. industries. (Nation's Restaurant News, 12/12/2007)

Wendy's Adds Double Burger Bargains

Wendy's has added a 99-cent double cheeseburger to its value menu, matching the double-burger bargains already offered by McDonald's and Burger King. In Southern California, BK is using billboards to tout its 99-cent double cheeseburger as being bigger than McDonald's. Privately, BK has acknowledged that McDonald's $1 double-cheeseburger has been a strong customer draw.

Wendy's entrant in the emerging value battle will be promoted via national television advertising from Dec 31. through the end of January. Called the Snack Attack, the new sandwich consists of two hamburger patties with cheese between them. According to Wendy's executives, the addition of the burger is the first step in a new initiative that will hopefully broaden the way people think about value from Wendy's. The chain currently operates or franchises 6,600 restaurants worldwide. (Nation's Restaurant News, 12/18/07)

Darden's Profit Drops

Darden Restaurants Inc. reported a 29.5-percent year-over-year drop in profit for the second quarter ended Nov 25. with results weighed down by its October acquisition of Rare Hospitality International, Inc., a "difficult consumer environment" and a "tougher than anticipated cost environment." Because profits fell short of projections, Darden cut its per share earnings forecast for the fiscal year ending in May. The company now expects annual earnings per share to grow between 2 percent and 4 percent from fiscal 2007, including charges related to the acquisition of Rare. In September, Darden had said it expected year-over-year earnings growth of as much as 10 percent.

The operator of 1,738 casual dining restaurants said latest-quarter net earnings fell to $43.5 million or 30 cents per share from $61.7 million or 41 cents a share, a year earlier. The $1.4 billion acquisition of Rare, as well as charges for a legal settlement in California, negatively affected per-share profit by 12 cents per share. The Rare acquisition added the Longhorn Steakhouse and The Capital Grille brands to Darden's portfolio, which already included Red Lobster, Olive Garden, Bahama Breeze and Seasons 52. The company recently received regulatory approval to proceed with the sale of its Smokey Bones barbeque chain to an affiliate of Sun Capital Partners for about $80 million. (Nation's Restaurant News, 12/19/07)

CKE Sells Thirty Hardee's Locations

CKE Restaurants Inc., which operates Carl's Jr. and Hardee's restaurants, announced this month that it sold 30 Hardee's restaurants in the Kansas City area as part of an ongoing refranchising program. CKE said franchisees Steve Rosenfield and Buddy Brown bought the restaurants. The two franchisees already operate Hardee's locations in Georgia, Montana and Wyoming. The refranchising program, announced in April, is expected to involve about 200 Hardee's locations in the Midwest and Southeast. So far, the company said it has sold 136 restaurants to franchisees and secured commitments for 59 new franchise restaurants under development agreements. (CNNmoney.com, 12/5/07)

Nestle USA to Sell Jamba Juice

Nestle USA is planning to sell smoothie maker Jamba Inc's drinks at grocery stores in eight states in the western United States, the Wall Street Journal said in its online edition. The deal is Jamba's first venture beyond its own retail stores where its drinks had been sold exclusively. Two types of Jamba's fruit drinks will be sold in supermarkets in California, Utah, Nevada, Washington, Oregon, Idaho, Arizona and Colorado starting in the second quarter next year.

According to the president of Nestle USA's beverage division, the deal will be expanded to other states and into new channels like convenience stores. Nestle USA, a unit of Nestle, will manufacture and distribute the drinks, the Journal said, adding it may eventually sell Jamba Juice in other countries. (Reuters.com, 12/4/07)

For more information on Hotel Performance, Click Here, for FranchiseHelp's recent white papers on this subject, including franchised hotel brand vital information.









  PRIVACY POLICY | DISCLAIMER ©2004 - 2008 Franchise Help. All Rights Reserved.