Franchise Blog

Sandella’s, the 125 + unit flatbread chain has embarked on an aggressive national expansion plan with Fransmart, an Alexandria, Va franchise development company and secured its first master franchise agreement. Dan Rowe along with Stephen Crystal of Sandella’s Franchise Nevada, LLC (SFN) have purchased the development rights for Nevada and will bring as many as 50 new restaurants to casinos, airports, sporting arenas, retail centers and food courts. The company plans to open the first unit by late summer.

Stephen Crystal is the former president of Barrick Gaming Corporation, a hotel/casino company which previously operated six casino/hotel properties with over 2,000 hotel rooms and 150,000 square feet of gaming in downtown Las Vegas. He currently serves on the Board of Directors for Las Vegas Gaming, Inc., a public gaming technology company and is co-owner of Vox Wine Bar and Supper Club in Henderson.

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Johnny’s Lunch, a 71-year-old dining institution in Jamestown, NY and home of Johnny’s famous Hots, Burgers and Shakes that kicked off its national franchise expansion earlier this year, announced a national contract with Coca-Cola Fountain Division to carry Coke products in its restaurants.

George Goulson, Johnny’s chief development officer, announced the contract during the Multi-Unit Franchising Conference and Expo 2007 being held April 18-20 at the Broadmoor Hotel, here, where the Johnny’s Lunch Executive Team is attending.

“Johnny’s Lunch is very excited to be able to partner with Coca-Cola in our national expansion,” explained Anthony Calamunci, Johnny’s president and grandson of the founder of the long-time dining icon Johnny Colera. “Coke brings a wealth of experience in operating a food establishment and a menu of top selling quality soft drink products.”

Earlier this year, Goulson announced an agreement with Michigan Group, JBV, LLC of Franklin, MI just north of Detroit to open 75-units in Michigan, what Goulson termed a “record for a first time expansion.” Goulson said that additional agreements will be announced soon.

A veteran of 22 years experience in franchise development including Little Caesar’s, A&W Restaurants and Long John Silver’s Restaurants, Goulson projected several stores to be open in Spring 2007 complete with an updated restaurant motif. Johnny’s is registered to franchise in all states including Colorado where expansion plans are being targeted.

Calamunci added that the original Johnny’s in southwestern New York has developed an almost cult-like following with a number of celebrities such as country and western singer- actor Kenny Rogers making periodic visits to the restaurant.

Johnny’s features a menu of Johnny’s Hots and Johnny’s Burgers that are sold in increments of three (Threebees R) and takeouts of 30’s, 60’s, 90’s and 120’s at a reasonable price along with Johnny’s Fries, Johnny’s Rice Pudding, Johnny’s Shakes and other menu items.

Coverall Cleaning Concepts announced today that Ted Elliott, the company’s President and Chief Executive Officer, has been recognized in the 2007 “Palm Beach Ultimate CEO Awards” sponsored by the South Florida Business Journal and law firm Greenspoon Marder, P.A. The program honors CEOs in Palm Beach County who demonstrate a commitment to excellence, leadership and community service.

Elliott was recognized for his role in the continued growth of Coverall Cleaning Concepts, a commercial cleaning franchising company that currently has system-wide sales of over $300 million and more than 8,500 Franchise Owners worldwide.

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Wendy’s International, Inc. (NYSE:WEN) today announced it has named Jay Fitzsimmons as Executive Vice President and Chief Financial Officer.

Fitzsimmons comes to Wendy’s after serving for more than 12 years as senior vice president and treasurer at Wal-Mart Stores, Inc., where he had responsibility for treasury, planning, financial analysis, investor relations, financial operations and corporate mergers and acquisitions. Wal-Mart grew revenues from $64 billion to more than $350 billion during his tenure at the company.

Prior to his arrival at Wal-Mart, Fitzsimmons worked as a sell-side analyst covering the restaurant and hospitality industry. He has also served as a senior officer and chief financial officer of several publicly and privately held restaurant companies, including S&A Restaurants, National Pizza Company (the largest Pizza Hut franchisee), Sea Galley Stores and Flakey Jake’s.

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Illinois Class Action Lawsuit Represents Five, Less Than 2.5%, of the More Than Two Hundred Quiznos Franchise Owners Statewide

Quiznos, one of the nation’s fastest-growing quick service restaurant chains, today responded to allegations made Thursday, April 19, 2007, with regard to Illinois’ class action lawsuit filed by plaintiffs’ bar law firm, Marks & Klein, against Quiznos.

“Through their repeated grandstanding with the press, Justin Klein and Christopher Bray have repeatedly demonstrated that they have little knowledge of the Quiznos business, or appreciation for its many successes,” said Fredric A. Cohen, Member of Cheng Cohen LLC, Quiznos counsel. “Additionally, their comments are misleading, making it appear as if Justin Klein represents a large number of Quiznos Illinois franchisees. In reality, only five of the more than 200 Illinois Quiznos franchise owners are involved.”

He continued, “These claims are false, misleading, and wholly without merit and, therefore, the company must vigorously defend itself, its brand, and its goodwill on behalf its franchise owners throughout the nation.”

About Quiznos

Celebrating its 25th anniversary in 2006, Denver-based Quiznos is a national chain designed for today’s busy consumers who are looking for a tasty, fresher alternative to traditional fast food restaurants. Using only premium quality real ingredients, Quiznos restaurants offer creative, chef-inspired recipes for sandwiches, soups and salads. With more than 5,000 franchise restaurants, Quiznos is one of the fastest-growing quick service restaurant chains.

In June 2006, Nation’s Restaurant News ranked Quiznos in its Top 100 Restaurant Chains as the #1 restaurant chain in growth in number of units – five years in a row. Entrepreneur magazine in January, 2006 ranked Quiznos in its annual Top Franchise 500 as the #2 Best Overall Franchise and QSR magazine ranked the chain in its Top 50 Chains in August, 2005 as #3 by change in system wide sales.

Further illustrating its position as an innovator in the home-based travel agency industry, Cruise Planners announces the acquisition of International Conferences, a 27 year old company that successfully provided accredited, continuing medical, medical legal, nursing and dental education at sea (CME, CEU, CLE).

Physicians, dentists, nurses and even attorneys are able to receive between 18 and 24 Category 1 (AMA/PRA) continuing education credits during the seven-to-fourteen day sailings scheduled throughout 2007. Each voyage features a different seminar topic for medical professionals, including seminars in legal-medical issues, as well as specialty courses like: Infectious Disease; Emergency Medicine, Cardiology, Pediatric and Adolescent Medicine, Endocrinology, Pulmonology, Rheumatology and Urology. Qualifying physicians who complete one of the accredited seminars in legal medicine may be eligible for a discount on their professional liability insurance premiums.

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McDonald’s Corp. reported higher first-quarter earnings on Friday on strong U.S. demand for its new chicken Snack Wrap and improved performance in international markets such as China, Japan, France and Russia.

The world’s largest hamburger chain operator also said it has reached an agreement to franchise nearly 1,600 restaurants in Latin America and the Caribbean to an organization led by entrepreneur Woods Staton.

McDonald’s said it expected to receive about $700 million for the sale of the operations and will use the funds for dividends and share repurchases. The company now expects to pay out $5.7 billion for dividends and share repurchases in 2007 and 2008.

The company also said it will post a second-quarter charge of about $1.6 billion related to the sale of the restaurants, about half of which will be for the difference between the book value of the assets being sold and the cash proceeds. The other half will be for accumulated currency losses, the company said.

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If you want to open your own business or buy a franchise, make sure you do some research first, said the keynote speaker at the opening day of a 2 1/2 -day franchising seminar Thursday at the University of Texas at El Paso.

“Due diligence, homework and research, research, research,” said Mary Jo Larson, vice president of Franchise Times Corp. and publisher of the Minneapolis company’s three publications, including Franchise Times magazine.

“Right now, there are 2,500 franchise concepts in 18 different industries,” Larson said in an interview before her speech. “Of course, out of 2,500, not all of them will be good opportunities.”

About 30 people representing six states are attending the UTEP Franchise Center’s semi annual Franchise Management Certificate Program, which will continue through Saturday.

During the program’s 13-year history, 254 of the 648 participants have been Hispanic and 224 have been women, according to the Franchise Center.

Sixty-two graduates have purchased franchises, and 13 have franchised their businesses.

Larson urges prospective entrepreneurs to talk to other franchise owners before buying in themselves. Take a look at the Uniform Franchise Offering Circular, a key document that most franchising companies can provide to you, she added.

This document contains information on pending litigation against the company and other financial information, she said.

“Don’t fall in love with a franchise before you buy into it,” Larson said. “When you do that, you start to make bad decisions. They say the same thing about real estate.”

Eastsider Le Trien, owner of a Vietnamese restaurant, Pho Tre Bien, attended to get more information on franchising. She would eventually like to expand and sell franchises of her restaurant.

“I know it will be a big challenge for me,” she said. This conference “is going to be helpful to me.”

Eastsider Marco Zuñiga, 56, has worked in construction most of his life, starting as a carpenter and working his way up to a supervisor and project manager.

He’s attending the seminar to learn more about starting his own business. “The information they give you is great,” he said. “It’s more than I was expecting.”

Eastsider Esteban Trujillo, 29, said he’s attending to get more information on whether he wants to start his own business from scratch or buy a franchise. The conference provides “very good, helpful information,” he said.

When Tom Patschorke signed up for the Marine Corps, he was a single guy prepared to follow orders and serve his country.

Now the soldier-turned-married-father of two is tapping his military background to be his own boss, running the antithesis of an armed forces operation: a gym geared toward the preschool set.

The Rolly Pollies children’s fitness center on Hillsborough Avenue that he and his wife own is one of hundreds of franchises launched through VetFran, a financial incentive program targeting honorably discharged military veterans.

A partnership between the International Franchise Association and the U.S. Department of Veterans Affairs, it’s a kick-start for budding business owners who didn’t make a lot of money during their years of service, IFA spokesman Terry Hill said.

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Qdoba Mexican Grill hopes to stand out with at least 80 more restaurants this year

Qdoba Mexican Grill is in the middle of an ambitious expansion that company executives say make the chain’s prospects as hot as its new ancho chile barbecue pork burrito.

The Wheat Ridge-based fast-casual chain, which has 354 restaurants in 42 states, plans to open at least 80 more this year.

“We don’t see any slowing in the momentum anytime soon,” said Gary Beisler, who has been president and chief executive of Qdoba since 1999.

The company has financial help from hamburger chain Jack in the Box, which purchased Qdoba in 2003 for $45 million.

“They’re a great partner because they bring us buying power,” Beisler said. “It doesn’t hurt to have a very successful public company as your big brother, but we operate very independently.”

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In September 2003, Katharine Halpin sat eating breakfast with a business associate at a Phoenix restaurant.

For 10 years, the Phoenix-based coach and leadership strategist for CEOs and corporations had hired personal contractors in order to keep up with high demand. In return, she found herself training her competitors and diluting her brand.

After she put down her fork and finished venting, her friend referred her to a franchise consultant. Halpin’s first two-hour meeting with the consultant resulted in three options: grow company-owned stores with others managing employees, license her product to others or franchise.

“I was a very successful solo-preneur with a few part-time employees,” Halpin said. “I wasn’t big enough to hire full-time employees to be leadership strategists. If I licensed, I would lose quality control.”

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But be sure you feel confident about the firm you plan to work with

John Wessel is a vice president with Wesfam Restaurants Inc., a Huntsville-based, multi-unit franchisee of Burger King Corp. For more information, e-mail him at john@wesfam.com or visit www.wesfam.com.

Starting a business can be tricky and challenging. Many potential business owners can become overwhelmed by the number of steps needed to develop and execute an idea. As a result, the concept of franchising often finds its way into the scenario.

Franchising offers opportunities to individuals looking for self-employment as well as corporations attempting to grow their businesses.

The franchise model removes several inherent new business hurdles. While remaining an individual business owner/operator, the franchisee reaps the benefits of joining an established brand with name recognition, proven product delivery systems and other customized, often proprietary technology that facilitates the operation of the business.

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Greensfelder, Hemker & Gale, PC is proud to announce the launching of www.TheFranchiseAffiliates.com.

TheFranchiseAffiliates(SM) was created to help start-up and emerging franchisors. We formed TheFranchiseAffiliates(SM) because we believe that start-up and emerging franchisors have, for years, been under served and over charged.

Because of that, we developed a network of professionals who provide everything needed by a start up or emerging franchisor while not busting their budget. For franchisors, it’s a one stop affordable shop.

The following types of services and service providers are available to you through TheFranchiseAffiliates(SM): (1) Franchise Brokers; (2) Outside Sales Directors; (3) Website Lead Generating Networks; (4) Attorneys; (5) Operation Manuals Providers; (6) Website Designers; (7) Real Estate Brokers; (8) Online Initial and Continuing Training of Franchisees; (9) Franchise Consultants; (10) Companies that Specialize in Franchise Site Selection; (11) Accountants; (12) Marketing Agencies; (13) Convention Materials Designers/builders; (14) Printers that print advertising materials; (15) Media Buying Firms; (16) Audio Visual Producers; (17) Direct Marketing Providers; (18) Promotional Items Companies; (19) Customized Software Providers; and (20) Computer System Providers.

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Sandella’s, the 125 + unit flatbread chain has embarked on an aggressive national expansion plan with Fransmart, an Alexandria, Va franchise development company and secured its first master franchise agreement. Dan Rowe along with Stephen Crystal of Sandella’s Franchise Nevada, LLC (SFN) have purchased the development rights for Nevada and will bring as many as 50 new restaurants to casinos, airports, sporting arenas, retail centers and food courts. The company plans to open the first unit by late summer.

Stephen Crystal is the former president of Barrick Gaming Corporation, a hotel/casino company which previously operated six casino/hotel properties with over 2,000 hotel rooms and 150,000 square feet of gaming in downtown Las Vegas. He currently serves on the Board of Directors for Las Vegas Gaming, Inc., a public gaming technology company and is co-owner of Vox Wine Bar and Supper Club in Henderson.

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The Ruth’s Chris Steak House chain plans to open about six new company-owned restaurants and six to eight franchise locations in 2007, the company said in a recent sales report.

It’s unclear whether one of those sites will be in the Charleston area, however. The company, which is among the nation’s largest upscale steakhouse proprietors, signed its first franchise agreement in the Palmetto State in December 2005 with an eye on the high-growth Myrtle Beach and Charleston markets.

Ruth’s Chris has since signed a lease for a Grand Strand location, but hasn’t finalized any deals in the Lowcountry, said Staffan High, director of operations for the Wilmington, N.C.-based franchise. The site selection process is confidential, he said.

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UFOC Projected to be Completed Within 30 Days.

Rocket City Automotive Group, announced today that it has received over 31 inquiries from dealers across the nation, requesting information about obtaining an eAutoDrop franchise. Upon the completion of the UFOC, RCAU will immediately begin selling franchise locations to any requesting dealers that are licensed and certified for an initial payment of $25K. A finalized UFOC is anticipated to be available as early as May 15th, 2007.

As previously released, eAutoDrop provides the general public a new portal to obtain retail sales prices on their vehicles without any of the hassles of maintaining an online auction or classified listing. Trained and certified dealership personnel who excel in the marketing of their own new and pre-owned inventories will offer their skill set and marketing prowess to the retail consumer, allowing them to obtain above average wholesale prices for their vehicle and taking the stress out of selling a vehicle privately.

Additionally, eAutoDrop creates an entirely new stream of revenue for the automotive retailer not only through the marketing effort, but also through the potential sale opportunity of mechanical service, appearance service and financial applications. In an industry cluttered with similar marketing messages, eAutoDrop allows the dealer to differentiate themselves from their competitors in the marketplace.

“We are confident that this service can revolutionize the automotive industry and increase consumer confidence through competent and innovative dealers. We are excited to bring to the marketplace such a fresh and potentially massive revenue generating concept,” states Jeff Roman, CEO of RocketCity.

Next Generation Media Corporation, whose subsidiary, United Marketing Solutions, Inc., is a national leader in the multi-billion dollar direct mail industry and in franchising, today announced it has taken a number of significant steps to improve the quality and quantity of its franchises.

United Marketing Solutions has retained ZGurus, Inc.(TM), Carlsbad, California (http://www.zgurus.com) to assist in the recruitment and development of new franchises. ZGurus is one of the leading outsource firms in assisting franchise companies to meet their growth expectations.

The Company also announced that it has partnered with several well known Internet firms that provide directories of franchise and business opportunities to numerous potential franchise owners. Finally, Patricia E. Delosh, with significant franchise experience including as Senior Franchising Specialist for Dunkin’ Brands, Inc., has joined United Marketing Solutions to support franchise development. Ms. Delosh is a graduate of the University of Massachusetts and is a Certified Franchise Executive with the International Franchise Association.

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First Franchise to Open in Northern Florida

Einstein Bros.® Bagels, a brand of New World Restaurant Group, Inc. (Pink Sheets: NWRG – News), a leader in the quick casual segment of the restaurant industry, is proud to announce that it signed a multi-unit development agreement with MC Squared Investments, LLC to open the first Einstein Bros. Bagels franchises.

Headquartered in Orlando, Fla., MC Squared Investments, LLC plans to build 21 Einstein Bros. locations throughout Northern Florida in the next eight years, with the first restaurant expected to be unveiled in Jacksonville, Fla.

“We fell in love with the Einstein Bros. Bagels brand several years ago and believe it’s a good fit for us,” said Mohammed Chaudhry, owner of MC Squared Investments, LLC. “We look forward to bringing more Einstein Bros. Bagels restaurants to the North Florida market as well as having the opportunity to be a part of this win-win relationship.”

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In recognition of National Scoop the Poop Week, April 23-30, Pet Butler is encouraging pet owners to make an extra effort to be respectful of the environment and to clean up after their furry animal friends.

Pet waste that isn’t properly disposed of can have a big impact on the environment. Whether in yards or in public spaces, accumulated domestic animal waste can ruin lawns and present a significant source of water pollution. Many cities recognize the negative effect of pet waste and have adopted laws requiring owners to clean up after their pet in public areas or face fines. On top of that, there are the unpleasant odor and unsightly mess, both of which can keep pet owners from enjoying their yards, and the fact that uncollected pet waste attracts disease-carrying insects and can breed harmful bacteria.

Pet Butler has disposed of more than 37 million piles of poop in its 19 years in business, helping to reduce the threat of contamination to the public water supply.

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Business Advisers International (BAI) has been named a ‘rising star’ by Entrepreneur Magazine as it is placed in the top 50 New Franchises of 2007. These acknowledgements follow another such honor with Franchise Market Magazine also choosing BAI as one of the “Top 100 New Franchises for 2007.”

“BAI, along with its sister company The Entrepreneur’s Source (TES), has become a One Stop/One Source resource for entrepreneurs,” says Terry Powell, CEO of BAI and TES. “Our unique coaching process has helped us build an extensive track record of success in helping small-to-mid size companies get on the road to profitability,” he added.

Using the AdviCoach® Advantage, BAI coaches consult, mentor, facilitate, and train people in the critical areas of business. These areas could involve starting up, increasing profitability, improving systems, expanding operations, or even deciding on the best way to exit a business.

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