Franchise demand in UAE to expand
Armina Ligaya
Last Updated: March 02. 2009 10:12PM UAE / March 2. 2009 6:12PM GMT
Customers line up at Popeye's, a fast food outlets. Experts say franchising is likely to expand this year as people seek alternative forms of income. Jaime Puebla / The National
DUBAI // The franchising industry in the UAE will continue to grow in the coming year as regional investors shift away from property and financial markets, and out-of-work executives seek new forms of employment, industry insiders say.
“The potential for growth is there,” said Matthew Shay, president and chief executive of the International Franchise Association, on the sidelines of the Franchise Middle East Exhibition in Dubai. “From what we’re hearing from our members, [the UAE] is still a positive climate.”
The US market, valued at US$1 trillion (Dh3.67tn), was forecasted to see declines of 1 to 2 per cent in 2009, according to a study conducted by the IFA and Pricewaterhouse Coopers, Mr Shay said.
However, he expects the UAE market to have a brighter outlook due to relatively easier access to credit and its role as the gateway to the region. Mr Shay estimates the UAE franchising industry, valued at about $30 billion, will grow between 5 and 8 per cent.
“This is one of those places that you can’t skip; you have to do business here,” he said.
Local investors are also looking to get into the franchising game as the traditional investment avenues such as property and the financial markets are less stable, said Imad Charafeddine, managing partner of the UAE branch of Francorp, a franchise consultant.
He said franchise inquiries have increased by 20 per cent in the past two months.
It is a similar pattern at the Kuwait-based Middle East Franchising consultancy, which has seen a 25 per cent jump in inquiries, according to its deputy chief executive, Barrak Al Homaisi.
“A lot of people who have lost their jobs and have a good amount of savings are looking to start their own business,” he said.
Mr Shay said typically in economic downturns, as unemployment rates go up, more people look to start their own business, and franchises are an easy option. However, he said recent studies in the US show access to financing will drop by 30 per cent in the next year.
“This [crisis] is an opportunity for franchises, but the rub is lack of access to credit.”
Mr Charafeddine said this is less of a problem in the UAE because Emiratis can secure funds from Government agencies and expatriates with a business background can still be granted start-up funds.
In the past five years, the UAE industry has grown by about 25 per cent to roughly 400 franchising systems, said Sary Hamway, the Dubai-based chief executive of FranExcel, a franchise consultancy that organised the World Franchise Forum alongside FME.
Franchise inquiries have gone up, he said, but investors were more hesitant to buy.
“It will continue to grow,” he said. “Retail franchises are good because it is medium-risk, and medium investment.”
Darren Smith, manager of retail and marketing support with Emarat’s coffee chain Bakeria, said the tightening credit markets have also helped to bring down the cost of rent. Outside of the major city centres, some rents have gone down from Dh350 a square foot to Dh150, he said.
“Now, suddenly, you’re hearing a word you haven’t heard before from landlords: negotiate.”
Global brands are now clamouring to enter the region to access the strong demand for international food brands, said Steve Rothenstein, the international operations manager for tasti D-lite, a US chain of low-fat yogurt stores.
“In the UAE, the people like their food brands from around the world,” he said. “It’s a great area to do business — friendly, ease of entry, and they know what they’re doing here in terms of infrastructure.”
Showing posts with label franchise consulting. Show all posts
Showing posts with label franchise consulting. Show all posts
Tuesday, March 3, 2009
Sunday, February 22, 2009
Children's Orchard Franchise
Francorp developed the original franchise program for Children's Orchard franchising systems. The Franchise company is the industry leader in children's resale clothing. They currently have almost 100 locations and continue to define their industry. Here are the details on the company and background on the company.
Children's Orchard
900 Victor's Way, # 200
Ann Arbor, MI 48108 800 #:(800) 999-5437Tel:(734) 994-9199 + 222Fax:(734) 994-9323E-Mail:campaign364@mail.emaximation.comWebsite:www.childorch.comContact: Ms. Lisa Morgan, Franchise Development DirectorBusiness Description:
Upscale children's retail/resale stores, featuring clothing, toys, furniture, equipment, books and parenting products. We buy top-brand items from area families by appointment, and re-sell in boutique-style stores, along with top-quality new children's items from nearly 200 suppliers. These are large volume stores selling thousands of items per week.
Franchisor Background
Year Established: 1980
Franchising Since: 1985Operating Units:Franchised Units:84 98.8%Company-Owned Units:1 1.2% Total Operating Units:85 100.0% Geographic Distribution:U.S.: 85 100% North America:States/Provinces with the largest number of operating units:Density
Units1. Michigan 62. Massachusetts 143. California 18
Registered in Following Registration States: California, Florida, Illinois, Indiana, Maryland, Michigan, Minnesota, New York, Oregon, Virginia, Washington, Wisconsin, District Of Columbia, Alberta Financial Requirements Investment:Minimum Net Worth:$200KCash Investment:$30-50KTotal Investment:$72.5-158KAverage Total Investment:$150K Fees:Initial Franchise Fee:$22.5KAverage Franchise Fee:$22KOn-Going Royalty:5%Average Royalty:5%Advertising Fee:1.0%
Average Number of Employees: 1 Full-time, 3 Part-time
Space Needs (in square footage): 1,200-2,000
Preferred Sites: Storefront, Strip CenterOther Sites: Encourage Conversions? YesEarnings Claims Provided?: NoFranchisee Qualifications Ranked from 1 (unimportant) to 5 (important):
Financial Net Worth:5General Business Experience:3Specific Industry Experience:2Formal Education:4Psychological Profile:2Personal Interview(s):5 Terms of Contract Term of Initial Contract:10 Year(s) Term of Renewal Period:Year(s)Passive Ownership:Allowed, But DiscouragedArea Development Agreements?Yes, for 1 Year(s)Sub-Franchising Contracts?NoFranchisees Allowed to Expand Within Territory?No Support and Training International Franchise Association:YesCanadian Franchise Association:NoFranchisee Association/Member:Yes, MemberSize of Corporate Staff: 15Site Selection Assistance?YesLease Negotiation Assistance?YesFinancial Assistance?Yes, Direct Projected New Units Over Next 12 months: 15U.S.: Yes, All US Except HI, AKCanada:NoOverseas:No
Children's Orchard
900 Victor's Way, # 200
Ann Arbor, MI 48108 800 #:(800) 999-5437Tel:(734) 994-9199 + 222Fax:(734) 994-9323E-Mail:campaign364@mail.emaximation.comWebsite:www.childorch.comContact: Ms. Lisa Morgan, Franchise Development DirectorBusiness Description:
Upscale children's retail/resale stores, featuring clothing, toys, furniture, equipment, books and parenting products. We buy top-brand items from area families by appointment, and re-sell in boutique-style stores, along with top-quality new children's items from nearly 200 suppliers. These are large volume stores selling thousands of items per week.
Franchisor Background
Year Established: 1980
Franchising Since: 1985Operating Units:Franchised Units:84 98.8%Company-Owned Units:1 1.2% Total Operating Units:85 100.0% Geographic Distribution:U.S.: 85 100% North America:States/Provinces with the largest number of operating units:Density
Units1. Michigan 62. Massachusetts 143. California 18
Registered in Following Registration States: California, Florida, Illinois, Indiana, Maryland, Michigan, Minnesota, New York, Oregon, Virginia, Washington, Wisconsin, District Of Columbia, Alberta Financial Requirements Investment:Minimum Net Worth:$200KCash Investment:$30-50KTotal Investment:$72.5-158KAverage Total Investment:$150K Fees:Initial Franchise Fee:$22.5KAverage Franchise Fee:$22KOn-Going Royalty:5%Average Royalty:5%Advertising Fee:1.0%
Average Number of Employees: 1 Full-time, 3 Part-time
Space Needs (in square footage): 1,200-2,000
Preferred Sites: Storefront, Strip CenterOther Sites: Encourage Conversions? YesEarnings Claims Provided?: NoFranchisee Qualifications Ranked from 1 (unimportant) to 5 (important):
Financial Net Worth:5General Business Experience:3Specific Industry Experience:2Formal Education:4Psychological Profile:2Personal Interview(s):5 Terms of Contract Term of Initial Contract:10 Year(s) Term of Renewal Period:Year(s)Passive Ownership:Allowed, But DiscouragedArea Development Agreements?Yes, for 1 Year(s)Sub-Franchising Contracts?NoFranchisees Allowed to Expand Within Territory?No Support and Training International Franchise Association:YesCanadian Franchise Association:NoFranchisee Association/Member:Yes, MemberSize of Corporate Staff: 15Site Selection Assistance?YesLease Negotiation Assistance?YesFinancial Assistance?Yes, Direct Projected New Units Over Next 12 months: 15U.S.: Yes, All US Except HI, AKCanada:NoOverseas:No
Thursday, January 22, 2009
Don Boroian - How to Franchise
In November, Francorp's Chairman, Don Boroian, did a presentation on the economy and its effect on franchising. Here is the transcript from that presentation and what was said about how franchising would be affected by our current economic downturn.
Hi, I am Don Boroian, Chairman of Francorp. I’d like to talk to you today about a couple of things that are very important to us as we meet this challenging economy right now that is raising havoc with a lot of the financial markets. It will definitely have an effect on franchising as well. However, contrary to what you might think, it is going to have a positive effect. For example, the biggest growth of franchising has occurred during these downturns in the economy. And we are going to look at it in two ways. First of all, why it makes sense, for you as a franchisor to expand during this particular time. And secondly, why you need to change your message to prospective franchise buyers to meet the economic perceptions that people have about whether or not it is a good time for them to buy a franchise.
First of all, as a franchisor, there’s a lot of uncertainty in the market. Many companies, right now, as they hear all of the economic woes and credit issues and so on are pulling in their horns. They’re not expanding, particularly companies who are looking to expand with borrowed money or looking for investors to open operating units. First of all, we all know that investors don’t invest in companies to open ten stores. The return on investment to venture capitalists is not sufficient to justify that kind of investment. They don’t want to be in a situation where their money is tied up for three or four years before they begin to turn a profit. By the time you open operating units and put managers in them and the amount of return on invested capital at the unit level, which generally, is about fifteen percent, has to be split between the investor and you. It’s just not a sufficient amount of money. In addition, during times like this, investors are investing their money in distressed merchandise. Depleted value of stocks are a bargain for investors. And the money from the venture capital people is not going into start ups or development into relatively new companies. However, there’s a silver lining to all of this. And that is, that as a franchisor, your ability to move out into the marketplace is going to be enhanced by the availability of opportunity for you. For example, if you are in retailing or in restaurants or any business that needs to go into a shopping center or into inline stores, there are going to be more vacancies in areas now that you might not be able to get into when times are good and business is booming. Those stores were already filled. Right now, some of those stores will become available. Even though you may not have the capital to go into those stores personally, this is where franchisees come in. And while we hear all the talk about credit and difficulty in getting credit, remember, we’re dealing with a different buyer. For example, if you have a retail store or if you have a restaurant, you need hundreds of customers to come into your store, every day, every week.
But in franchising, we don’t have to sell hundreds of franchises every week or every day or every month. We only need to sell one or two, certainly, in a time like this, if you’re a new emerging franchisor. And the people that you’re going to be selling franchises to are more abundant now in quality. These are people that are being laid off, downsized, reengineered in companies that are laying off people or are going out of business. And these are the people that have been working in these companies for a number of years. They have good credit. They have a high credit score. They have equity in their homes; that can get refinanced at their local bank because they have longevity in their community and they are very good credit risks. In addition, these are people that have excellent job skills. Many of them are middle managers. These are people that always really would’ve liked to own their own business; were afraid to leave the job and risk their fortunes on starting a business. But now that, that decision has been made for them, they’re on the market. And many of these people have gone to job interviews only to find that companies in their same industry, that have just laid them off, are also laying off people. That’s when we get their interest in buying a franchise.
So that from your standpoint, as a franchisor, there are going to be a lot of opportunities because your competitors that are not franchising, are not going to be occupying more stores, borrowing money, opening more branches, opening more markets for their businesses. A good case in point right now is Starbucks. They’re closing 700 of their stores. Now for Starbucks, to put a manager in an outlet and to make the entire investment in the store and to be able to make a profit over and above the manager’s salary, is quite different than for a franchisee who is to buy a franchise and go into a business and work 60 hours a week. In many cases just making their salary, without even a profit over and above that, meets their needs. They just want to own their own business, be their own boss, be the captain of their own ship, master of their own destiny. And so many of these kinds of situations or companies that have corporate owned locations; those locations are going to be available. In retailing, in the food service industry, in anything that occupies a store, where someone has already done the leasehold improvements, in the restaurant business they have the walk in coolers, freezers, 3-compartment sinks, and grills and so on. And many of the landlords are bending over backwards giving free rents to get tenants in there to occupy these spaces. And in the service business as well, many of your competitors, those of you in service businesses; these companies are going to be cutting back on their expansion because it takes capital and not only just the start up capital but the burn rate. When we sell a franchise, a franchisee doesn’t expect to make money for the first two years. If they just barely take out a salary initially, to get the business going, that’s pretty much expected. They don’t expect to walk in on day one to be turning a salary and a profit.
But companies today can’t afford to do that if they’re borrowing a lot of money at their banks because, first of all, the bank financing isn’t available to that extent. And certainly, as the credit markets and standards tighten, it makes it more difficult for companies to expand with company owned units, where typically it takes two years to get to a breakeven point. And so those of us that are franchising our businesses have a great opportunity here because our competition is pulling in their horns.
You have three choices right now in this current challenging market. Number one, pulling your horns, hunker down, climb in a fox hole, wait until the storm blows over. If you do that, you’re going to miss a lot of opportunities. But companies that need capital in order to expand their own company owned units are going to have to do that because they don’t have the available capital.
A second strategy is to do what you’re doing right now. Just keep on going and keep on your current expansion strategy. But again, companies that are doing this with their own company units are inhibited by the inability to get capital and by their inability to move out into other markets and support these kinds of expansions.
A third option and this is an option great for franchisors, because this is an opportunity to look around and capture markets that are being abandoned or not expanded into by your competitors. And by franchising, you’re allowing yourself to go into these markets with the capital resources and the human resources of others. So from your standpoint, as a franchisor, this is the time to move out. And as we talk to prospective franchisors whether it’s through our regional director program, whether it’s through the people who contact us, whether it’s the seminars that we do, or the advertising that we do, and we talk to companies who are considering franchising. And looking at this as an optional strategy, we’re quick to point out to them that now is the time to expand your business into a market that’s weakened.
The time to attack the fort is when the walls are crumbling. And the walls in many of these companies today, which were well fortified, are crumbling because they are reliant totally upon bank financing that isn’t going to be there to the extent it has been in the past. And as franchising affords you the opportunity to expand, it does so by you finding those one or two or three people each month who do have good credit, high credit scores, who are looking to own their own business, who will make that investment, who will be the human resource solution for you as well as a capital solution, as they invest in buying the land, building the business or developing their markets. And it gives you the opportunity to move into a market that is weakened. This is the time. The lions in the Serengeti always attack the weakest of the prey. And this is the time for us to move into the marketplace by franchising into these markets while the companies that are reliant totally on expansion capital in either internally generated, borrowing money, bringing in investors or through other means. And we have an added opportunity here to raise funds through the investment of individuals. And we don’t have to get 300 of them a month or a hundred a day.
We only need to get 2 or 3 or 4 people to buy a franchise each month. These are people with good credit. These are people with equity. These are people with 401(k)s. These are people with savings. These are people with family and friends that will help them get started. So, take advantage of this opportunity now. And from the franchise buyer’s point of view, let’s take a look also at why we need to adjust our message. In the past our message was be your own boss, be master of your own destiny, captain of your own ship. Now is the time to get into this expanding world of whatever your concept is. But that message is changing now because now people have a perception that this may not be a good time to go into their own business. Because you know already how to run that business, they’re getting a jump start. And so this is an opportune time for you to look over the marketplace at a much better qualified group of people, who are desperately seeking either a job, which is very difficult to replace, similar to the one they’ve had or to start their own business. And because these are not people that are high risk, they’re not as likely to start their own business from scratch because they know the rate of business failures is about 95 percent of all new businesses that start. According to the Department of Commerce 95 businesses, 95 percent of all start ups from scratch fail within the first 5 years. And so with a franchise, the odds are in their favor and these are people who are more conservative, who are comfortable following the plan. And now that decision has been made for them, that they’re out in the marketplace without a job, they’re taking a look at you, as a franchisor, and what you offer. So what we can tell the prospective buyers today is that we have a system, we have it worked out. We have a complete business model. We have the opportunity for you to learn. We will teach you everything you need to learn. You don’t have to know anything about our business. We’ll teach you, we’ll help you. There are available stores now. There are landlords that are giving free rent and doing leasehold improvements and tenant improvement allowances.
There are competitors that are on the ropes, some of them going under. Now is the time to buy a franchise, to get yourself established, to get yourself started with our assistance as franchisors helping you. Now is the time. So don’t hunker down, don’t crawl in the fox hole. Now is the time to move out. Take advantage of the weakened economy, the weakened market, your weakened competitors. Sell these franchises and help people get started. And show the prospective buyer why now is a good time for them to capitalize on this opportunity that this challenging economy has presented.
Don Boroian
Chairman
Francorp, Inc.
www.francorp.com
Hi, I am Don Boroian, Chairman of Francorp. I’d like to talk to you today about a couple of things that are very important to us as we meet this challenging economy right now that is raising havoc with a lot of the financial markets. It will definitely have an effect on franchising as well. However, contrary to what you might think, it is going to have a positive effect. For example, the biggest growth of franchising has occurred during these downturns in the economy. And we are going to look at it in two ways. First of all, why it makes sense, for you as a franchisor to expand during this particular time. And secondly, why you need to change your message to prospective franchise buyers to meet the economic perceptions that people have about whether or not it is a good time for them to buy a franchise.
First of all, as a franchisor, there’s a lot of uncertainty in the market. Many companies, right now, as they hear all of the economic woes and credit issues and so on are pulling in their horns. They’re not expanding, particularly companies who are looking to expand with borrowed money or looking for investors to open operating units. First of all, we all know that investors don’t invest in companies to open ten stores. The return on investment to venture capitalists is not sufficient to justify that kind of investment. They don’t want to be in a situation where their money is tied up for three or four years before they begin to turn a profit. By the time you open operating units and put managers in them and the amount of return on invested capital at the unit level, which generally, is about fifteen percent, has to be split between the investor and you. It’s just not a sufficient amount of money. In addition, during times like this, investors are investing their money in distressed merchandise. Depleted value of stocks are a bargain for investors. And the money from the venture capital people is not going into start ups or development into relatively new companies. However, there’s a silver lining to all of this. And that is, that as a franchisor, your ability to move out into the marketplace is going to be enhanced by the availability of opportunity for you. For example, if you are in retailing or in restaurants or any business that needs to go into a shopping center or into inline stores, there are going to be more vacancies in areas now that you might not be able to get into when times are good and business is booming. Those stores were already filled. Right now, some of those stores will become available. Even though you may not have the capital to go into those stores personally, this is where franchisees come in. And while we hear all the talk about credit and difficulty in getting credit, remember, we’re dealing with a different buyer. For example, if you have a retail store or if you have a restaurant, you need hundreds of customers to come into your store, every day, every week.
But in franchising, we don’t have to sell hundreds of franchises every week or every day or every month. We only need to sell one or two, certainly, in a time like this, if you’re a new emerging franchisor. And the people that you’re going to be selling franchises to are more abundant now in quality. These are people that are being laid off, downsized, reengineered in companies that are laying off people or are going out of business. And these are the people that have been working in these companies for a number of years. They have good credit. They have a high credit score. They have equity in their homes; that can get refinanced at their local bank because they have longevity in their community and they are very good credit risks. In addition, these are people that have excellent job skills. Many of them are middle managers. These are people that always really would’ve liked to own their own business; were afraid to leave the job and risk their fortunes on starting a business. But now that, that decision has been made for them, they’re on the market. And many of these people have gone to job interviews only to find that companies in their same industry, that have just laid them off, are also laying off people. That’s when we get their interest in buying a franchise.
So that from your standpoint, as a franchisor, there are going to be a lot of opportunities because your competitors that are not franchising, are not going to be occupying more stores, borrowing money, opening more branches, opening more markets for their businesses. A good case in point right now is Starbucks. They’re closing 700 of their stores. Now for Starbucks, to put a manager in an outlet and to make the entire investment in the store and to be able to make a profit over and above the manager’s salary, is quite different than for a franchisee who is to buy a franchise and go into a business and work 60 hours a week. In many cases just making their salary, without even a profit over and above that, meets their needs. They just want to own their own business, be their own boss, be the captain of their own ship, master of their own destiny. And so many of these kinds of situations or companies that have corporate owned locations; those locations are going to be available. In retailing, in the food service industry, in anything that occupies a store, where someone has already done the leasehold improvements, in the restaurant business they have the walk in coolers, freezers, 3-compartment sinks, and grills and so on. And many of the landlords are bending over backwards giving free rents to get tenants in there to occupy these spaces. And in the service business as well, many of your competitors, those of you in service businesses; these companies are going to be cutting back on their expansion because it takes capital and not only just the start up capital but the burn rate. When we sell a franchise, a franchisee doesn’t expect to make money for the first two years. If they just barely take out a salary initially, to get the business going, that’s pretty much expected. They don’t expect to walk in on day one to be turning a salary and a profit.
But companies today can’t afford to do that if they’re borrowing a lot of money at their banks because, first of all, the bank financing isn’t available to that extent. And certainly, as the credit markets and standards tighten, it makes it more difficult for companies to expand with company owned units, where typically it takes two years to get to a breakeven point. And so those of us that are franchising our businesses have a great opportunity here because our competition is pulling in their horns.
You have three choices right now in this current challenging market. Number one, pulling your horns, hunker down, climb in a fox hole, wait until the storm blows over. If you do that, you’re going to miss a lot of opportunities. But companies that need capital in order to expand their own company owned units are going to have to do that because they don’t have the available capital.
A second strategy is to do what you’re doing right now. Just keep on going and keep on your current expansion strategy. But again, companies that are doing this with their own company units are inhibited by the inability to get capital and by their inability to move out into other markets and support these kinds of expansions.
A third option and this is an option great for franchisors, because this is an opportunity to look around and capture markets that are being abandoned or not expanded into by your competitors. And by franchising, you’re allowing yourself to go into these markets with the capital resources and the human resources of others. So from your standpoint, as a franchisor, this is the time to move out. And as we talk to prospective franchisors whether it’s through our regional director program, whether it’s through the people who contact us, whether it’s the seminars that we do, or the advertising that we do, and we talk to companies who are considering franchising. And looking at this as an optional strategy, we’re quick to point out to them that now is the time to expand your business into a market that’s weakened.
The time to attack the fort is when the walls are crumbling. And the walls in many of these companies today, which were well fortified, are crumbling because they are reliant totally upon bank financing that isn’t going to be there to the extent it has been in the past. And as franchising affords you the opportunity to expand, it does so by you finding those one or two or three people each month who do have good credit, high credit scores, who are looking to own their own business, who will make that investment, who will be the human resource solution for you as well as a capital solution, as they invest in buying the land, building the business or developing their markets. And it gives you the opportunity to move into a market that is weakened. This is the time. The lions in the Serengeti always attack the weakest of the prey. And this is the time for us to move into the marketplace by franchising into these markets while the companies that are reliant totally on expansion capital in either internally generated, borrowing money, bringing in investors or through other means. And we have an added opportunity here to raise funds through the investment of individuals. And we don’t have to get 300 of them a month or a hundred a day.
We only need to get 2 or 3 or 4 people to buy a franchise each month. These are people with good credit. These are people with equity. These are people with 401(k)s. These are people with savings. These are people with family and friends that will help them get started. So, take advantage of this opportunity now. And from the franchise buyer’s point of view, let’s take a look also at why we need to adjust our message. In the past our message was be your own boss, be master of your own destiny, captain of your own ship. Now is the time to get into this expanding world of whatever your concept is. But that message is changing now because now people have a perception that this may not be a good time to go into their own business. Because you know already how to run that business, they’re getting a jump start. And so this is an opportune time for you to look over the marketplace at a much better qualified group of people, who are desperately seeking either a job, which is very difficult to replace, similar to the one they’ve had or to start their own business. And because these are not people that are high risk, they’re not as likely to start their own business from scratch because they know the rate of business failures is about 95 percent of all new businesses that start. According to the Department of Commerce 95 businesses, 95 percent of all start ups from scratch fail within the first 5 years. And so with a franchise, the odds are in their favor and these are people who are more conservative, who are comfortable following the plan. And now that decision has been made for them, that they’re out in the marketplace without a job, they’re taking a look at you, as a franchisor, and what you offer. So what we can tell the prospective buyers today is that we have a system, we have it worked out. We have a complete business model. We have the opportunity for you to learn. We will teach you everything you need to learn. You don’t have to know anything about our business. We’ll teach you, we’ll help you. There are available stores now. There are landlords that are giving free rent and doing leasehold improvements and tenant improvement allowances.
There are competitors that are on the ropes, some of them going under. Now is the time to buy a franchise, to get yourself established, to get yourself started with our assistance as franchisors helping you. Now is the time. So don’t hunker down, don’t crawl in the fox hole. Now is the time to move out. Take advantage of the weakened economy, the weakened market, your weakened competitors. Sell these franchises and help people get started. And show the prospective buyer why now is a good time for them to capitalize on this opportunity that this challenging economy has presented.
Don Boroian
Chairman
Francorp, Inc.
www.francorp.com
Friday, September 26, 2008
Sonic Franchise Operations outperform Company Owned Stores
Sonic slips on same-store sales outlook
Associated Press 09.24.08, 5:37 PM ET
NEW YORK -
Several analysts trimmed their fourth-quarter profit estimates for Sonic Corp. on Wednesday, after the drive-through restaurant chain said preliminary fourth-quarter same-store sales were "slightly negative."
Shares of Sonic fell 53 cents, or 3.3 percent, to $15.41.
After Tuesday's closing bell, Sonic said same-store sales were positive nationwide for the fiscal year ended Aug. 31, but partner drive-in sales declined for the fiscal year and in the fourth quarter. Same-store sales measure sales at stores open at least a year and are considered a good gauge of ongoing retail health.
In the fourth quarter, Sonic said same-store sales were positive at franchised drive-in locations, but same-store sales for partner drive-ins were "significantly negative," causing slightly negative same-store sales systemwide. Partner drive-ins are locations where the company owns a majority interest.
Oklahoma City-based Sonic is set to report fourth-quarter results Oct. 16, and analysts polled by Thomson Reuters expect 35 cents per share in earnings for the fourth quarter.
Stifel Nicolaus & Co. analyst Steve West trimmed his quarterly profit forecast by a penny to 34 cents, and expects Hurricane Ike and input costs to weigh on fiscal 2009 results. West said the impact from Hurricane Ike is much worse than previously expected because of massive power outages.
West, however, kept a "Buy" rating on the stock, expecting new products to drive sales and boost margins.
Meanwhile, KeyBanc Capital Markets analyst Lynne Collier, who rates the stock "Hold," also trimmed her fourth-quarter estimate and noted higher commodity costs and softening consumer spending. The company has significant exposure to rising beef and dairy costs, Collier said.
Collier also said a happy hour promotion increased customer traffic, but ended up hurting the average check.
Associated Press 09.24.08, 5:37 PM ET
NEW YORK -
Several analysts trimmed their fourth-quarter profit estimates for Sonic Corp. on Wednesday, after the drive-through restaurant chain said preliminary fourth-quarter same-store sales were "slightly negative."
Shares of Sonic fell 53 cents, or 3.3 percent, to $15.41.
After Tuesday's closing bell, Sonic said same-store sales were positive nationwide for the fiscal year ended Aug. 31, but partner drive-in sales declined for the fiscal year and in the fourth quarter. Same-store sales measure sales at stores open at least a year and are considered a good gauge of ongoing retail health.
In the fourth quarter, Sonic said same-store sales were positive at franchised drive-in locations, but same-store sales for partner drive-ins were "significantly negative," causing slightly negative same-store sales systemwide. Partner drive-ins are locations where the company owns a majority interest.
Oklahoma City-based Sonic is set to report fourth-quarter results Oct. 16, and analysts polled by Thomson Reuters expect 35 cents per share in earnings for the fourth quarter.
Stifel Nicolaus & Co. analyst Steve West trimmed his quarterly profit forecast by a penny to 34 cents, and expects Hurricane Ike and input costs to weigh on fiscal 2009 results. West said the impact from Hurricane Ike is much worse than previously expected because of massive power outages.
West, however, kept a "Buy" rating on the stock, expecting new products to drive sales and boost margins.
Meanwhile, KeyBanc Capital Markets analyst Lynne Collier, who rates the stock "Hold," also trimmed her fourth-quarter estimate and noted higher commodity costs and softening consumer spending. The company has significant exposure to rising beef and dairy costs, Collier said.
Collier also said a happy hour promotion increased customer traffic, but ended up hurting the average check.
Saturday, August 16, 2008
Soul De Cuba Cafe
The Soul of Crown Street
Nicole D'Andrea, Senior Writer
08/06/2008
Email to a friendPost a CommentPrinter-friendly
If you go... Soul de Cuba 283 Crown St., New Haven; 203-498-cuba; souldecuba.com What makes a city a city isn't something you can exactly put your finger on but when you feel it, you know it.
That's sort of the best way to explain the vibe of Soul de Cuba, tucked away on the corner of Crown and High streets.
');
}
//-->
Just 40 seats for dining and only a handful of stools at the bar, Soul de Cuba embodies everything that is the lifeblood of New Haven. Think diversity in culture, historically accurate native cuisine and of course, authenticity of ownership.
Birthed by New Haven staple Yoon Kim, son of Sung Kim who has operated Seoul Restaurant on Crown Street for many years and brothers Jesus and Robert Puerto, Soul de Cuba has solidified itself as a New Haven necessity since its doors opened in January 2005.
Shortly after opening the first location- about one year- Jesus revisited his past, traveling to the South Pacific where he used to do work for the Peace Corps and launched a second Soul de Cuba in Honolulu, Hawaii across the street from the Hawaii Theater.
Hailing from an international relations background, Jesus shares that he and his partners are now finalizing the details for a global franchise expansion of Soul de Cuba which coincides with the debut of the restaurant's new line of homemade mango salsa, honey balsamic vinaigrette dressing and mojo marinade which are sold in store and are coming soon to participating supermarket shelves.
Phoning in from Hawaii- he gets to run this location while little brother Robert mans the New Haven locale- Jesus explains, right now he's at a crossroads with his business and he's hoping to figure out what is the best way to replicate the Soul de Cuba concept on a national level and become one of, if not, the first chain of Cuban eateries.
But before this Afro-Cuban enclave takes the world by storm, it's important to consider where it came from and who the Puertos are.
Though Jesus has a lengthy background serving in the international relations field- he came to New Haven through Paul Newman's Association of Hole In The Wall Camps to serve Thailand, Southern Africa and Japan- his family's past is deep rooted in Cuban cuisine.
Coming to the Tampa area of Florida, at the turn of 19th century, Jesus' great grandfather Santiago Gonzalez settled in Ybor City, which is the oldest Cuban-American community in the U.S.
The Puerto's family established themselves in Ybor and became well-known bakers. Even today, Robert says, they have a cousin who has taken up the baking trade in Ybor.
Generations of Afro-Cubans from the Puerto lineage have contributed to the flavor and style of Sol de Cuba and when speaking of franchising in terms of a restaurant "concept" it's sort of impossible to do so because the mantra of the restaurant is anything but trendy, stylish or en vogue. There's no "concept" per-se because it's real, right down to the family photos, which adorn the walls and even the cigar box tops that decoupage the bar top- yes, the Puerto family was also cigar rollers in Ybor City.
By way of food, diners can delight in the traditional marinated pork, a famous Cuban dish called lechon asado where the meat is marinated 24 hours in mojo- a creamy blend of citrus, oregano and garlic- before cooking.
But also on the menu, there are dishes that aim to highlight the unique Afro-Cuban heritage that the brothers share. Jesus explains that in addition to meals bearing the namesake of their past, it's the paintings of Afro-Cuban spirituality and respect for family that really puts the soul in Soul de Cuba.
Rabo encendido, traditional oxtail stew shares a place on the menu with Abuela's sopa de frijoles negros and less conventional dishes like Robert's pollo Soul de Cuba.
Cooking for almost half his life, Robert has taken the reins of the business from behind the stove and says he continues to try to represent the Cuban and Afro-Cuban cultures with his food while also taking into consideration the importance of creating new dishes with more contemporary ideals.
Before the rest of the world has the opportunity to delight in the wondrous multi-sensory experience of Sol de Cuba, which wakes your mind and taste buds simultaneously, take advantage of dining in the New Haven location where it all started (283 Crown St., New Haven; 203-498-cuba).
The Spread: Lunch entrees $11-$16, sandwiches $7-$9, appetizers $7-12, dinner entrees $12-$21.Signature: Soul de Cuba offers jars of homemade mango salsa and bottles of honey balsamic vinaigrette dressing and mojo marinade for sale in store, and soon on participating supermarket shelves. Also, make sure to order the Puerto family recipe sangria or a classic Cuban mojito.
Beyond the food: Monthly, you can come enjoy drum nights at as the restaurant is turned from a dining space to a dancing frenzy. Check souldecuba.com for dates.What we ate: Pollo Soul de Cuba, $18 (Marinated chicken breasts (overnight) pan fried and served with Chef Robert's special salsa of mango, black beans, red onion and rum, served over arroz blanco and plantanos maduros.
What we thought: Soul de Cuba is the epitome authentic and represents the best of New Haven's multicultural cuisine. If you're interested in having some imported wines or Cuban influenced drinks, this is one the city's most romantic spots to do so. If you're dining, Soul de Cuba is known for making traditional Afro-Cuban food with a contemporary twist- evidence of its success is the sweet and hearty Pollo Soul de Cuba.
www.francorp.com
www.francorpconnect.com
Nicole D'Andrea, Senior Writer
08/06/2008
Email to a friendPost a CommentPrinter-friendly
If you go... Soul de Cuba 283 Crown St., New Haven; 203-498-cuba; souldecuba.com What makes a city a city isn't something you can exactly put your finger on but when you feel it, you know it.
That's sort of the best way to explain the vibe of Soul de Cuba, tucked away on the corner of Crown and High streets.
');
}
//-->
Just 40 seats for dining and only a handful of stools at the bar, Soul de Cuba embodies everything that is the lifeblood of New Haven. Think diversity in culture, historically accurate native cuisine and of course, authenticity of ownership.
Birthed by New Haven staple Yoon Kim, son of Sung Kim who has operated Seoul Restaurant on Crown Street for many years and brothers Jesus and Robert Puerto, Soul de Cuba has solidified itself as a New Haven necessity since its doors opened in January 2005.
Shortly after opening the first location- about one year- Jesus revisited his past, traveling to the South Pacific where he used to do work for the Peace Corps and launched a second Soul de Cuba in Honolulu, Hawaii across the street from the Hawaii Theater.
Hailing from an international relations background, Jesus shares that he and his partners are now finalizing the details for a global franchise expansion of Soul de Cuba which coincides with the debut of the restaurant's new line of homemade mango salsa, honey balsamic vinaigrette dressing and mojo marinade which are sold in store and are coming soon to participating supermarket shelves.
Phoning in from Hawaii- he gets to run this location while little brother Robert mans the New Haven locale- Jesus explains, right now he's at a crossroads with his business and he's hoping to figure out what is the best way to replicate the Soul de Cuba concept on a national level and become one of, if not, the first chain of Cuban eateries.
But before this Afro-Cuban enclave takes the world by storm, it's important to consider where it came from and who the Puertos are.
Though Jesus has a lengthy background serving in the international relations field- he came to New Haven through Paul Newman's Association of Hole In The Wall Camps to serve Thailand, Southern Africa and Japan- his family's past is deep rooted in Cuban cuisine.
Coming to the Tampa area of Florida, at the turn of 19th century, Jesus' great grandfather Santiago Gonzalez settled in Ybor City, which is the oldest Cuban-American community in the U.S.
The Puerto's family established themselves in Ybor and became well-known bakers. Even today, Robert says, they have a cousin who has taken up the baking trade in Ybor.
Generations of Afro-Cubans from the Puerto lineage have contributed to the flavor and style of Sol de Cuba and when speaking of franchising in terms of a restaurant "concept" it's sort of impossible to do so because the mantra of the restaurant is anything but trendy, stylish or en vogue. There's no "concept" per-se because it's real, right down to the family photos, which adorn the walls and even the cigar box tops that decoupage the bar top- yes, the Puerto family was also cigar rollers in Ybor City.
By way of food, diners can delight in the traditional marinated pork, a famous Cuban dish called lechon asado where the meat is marinated 24 hours in mojo- a creamy blend of citrus, oregano and garlic- before cooking.
But also on the menu, there are dishes that aim to highlight the unique Afro-Cuban heritage that the brothers share. Jesus explains that in addition to meals bearing the namesake of their past, it's the paintings of Afro-Cuban spirituality and respect for family that really puts the soul in Soul de Cuba.
Rabo encendido, traditional oxtail stew shares a place on the menu with Abuela's sopa de frijoles negros and less conventional dishes like Robert's pollo Soul de Cuba.
Cooking for almost half his life, Robert has taken the reins of the business from behind the stove and says he continues to try to represent the Cuban and Afro-Cuban cultures with his food while also taking into consideration the importance of creating new dishes with more contemporary ideals.
Before the rest of the world has the opportunity to delight in the wondrous multi-sensory experience of Sol de Cuba, which wakes your mind and taste buds simultaneously, take advantage of dining in the New Haven location where it all started (283 Crown St., New Haven; 203-498-cuba).
The Spread: Lunch entrees $11-$16, sandwiches $7-$9, appetizers $7-12, dinner entrees $12-$21.Signature: Soul de Cuba offers jars of homemade mango salsa and bottles of honey balsamic vinaigrette dressing and mojo marinade for sale in store, and soon on participating supermarket shelves. Also, make sure to order the Puerto family recipe sangria or a classic Cuban mojito.
Beyond the food: Monthly, you can come enjoy drum nights at as the restaurant is turned from a dining space to a dancing frenzy. Check souldecuba.com for dates.What we ate: Pollo Soul de Cuba, $18 (Marinated chicken breasts (overnight) pan fried and served with Chef Robert's special salsa of mango, black beans, red onion and rum, served over arroz blanco and plantanos maduros.
What we thought: Soul de Cuba is the epitome authentic and represents the best of New Haven's multicultural cuisine. If you're interested in having some imported wines or Cuban influenced drinks, this is one the city's most romantic spots to do so. If you're dining, Soul de Cuba is known for making traditional Afro-Cuban food with a contemporary twist- evidence of its success is the sweet and hearty Pollo Soul de Cuba.
www.francorp.com
www.francorpconnect.com
Subscribe to:
Posts (Atom)
