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Franchise Articles

Browse our selection of franchise articles and features to help further your knowledge in opening and operating a franchise business. Our exclusive features cover the , , , , , , and site of the franchise business. Written by the editorial team that produces Franchise Update Magazine and Multi-Unit Franchisee Magazine, the franchise industries premier magazines.

Feature Story:

Franchisees Serve Travelers At North Carolina Airport »

franchise, franchising, multi unit franchising, franchise update, mult-unit franchisee

Judy Ewing-Lonetti and Sandy Dunn have known each other for three decades. They went from being friends to being franchising partners and, they say, they couldn't have done it without each other.
"We both know, that the other one does, what they do, better," says Ewing-Lonetti, chief executive officer of Charlotte, North Carolina-based Ewing-Dunn.
Franchisees seeking insight to business success with a partner would be wise to look at Ewing-Lonetti and Dunn. Mutual respect is the cornerstone of their 30-year relationship.
Ewing-Dunn is a mainstay at North Carolina's bustling Charlotte Douglas International Airport, where the company operates coveted food franchise locations under three different brands--Brioche Dorée, Cinnabon, and TCBY...

Feature Story:

Safety First!: Protect Your Brand From Security Breaches »

By Rick Dakin

The data breach reported by Jimmy John's last September affected just over 10 percent of the company's locations, but the bad press and customer fallout affected the entire chain. From pink slime to bed bugs, the national news cycle can be capricious--and damaging--when it's your brand in the spotlight.
Franchisees are used to dealing with these types of reputational risks in other contexts. Cybersecurity is a different order of threat, however. It's easy enough to show customers quality food products and clean premises, but how do you demonstrate a secure POS?
Data insecurity brings increasing legal risks as well. The FTC has now pursued more than 50 enforcement cases against companies that allegedly failed to protect their customers' personally identifiable information...

Feature Story:

Captain D's Joins A Good Cause »

Captain D's is showing its philanthropic side by joining the Share Our Strength's Dine Out for No Kid Hungry campaign. The program connects kids in need with nutritious food and teaches their families how to eat healthy and affordable meals, while raising national awareness of the childhood hunger epidemic that affects one in five children.
Captain D's, the 512-unit restaurant chain in 26 states, said in a statement that its commitment to its customers goes beyond just the food they serve to families at an affordable price. "We fully support No Kid Hungry's mission to raise awareness about childhood hunger and look forward to uniting with other restaurants across the nation to make a difference in the communities we serve and the lives of families in need," said Phil Greifeld, Captain D's chief executive officer...

Feature Story:

CruiseOne: Integrating Technology Into The Sales Process »

By Kerry Pipes

We asked Tim Courtney, vice president of franchise development at CruiseOne, "What are you doing to integrate technologies for both your overall development strategies and into how you create a profile of your best prospects?" Here's what he had to say.

It's really incredible how much technology continues to evolve! There are so many tools available to assist franchisors with their development plans today, and at CruiseOne integrating technology is an essential part of our development strategy.

Feature Story:

Good News Is Back! »

By Eddy Goldberg

The good news: Franchising is experiencing a remarkable growth phase - not only in unit count and system-wide revenue, but also in the number of new and emerging brands. The bad news: It's harder to keep up with all the good news! That's a nice problem to have - and why we're bringing back our "Good News" roundup of selected news items about unit growth, investment and financial developments, international expansion news, refranchising, and milestones attained by franchisors large, medium, and small. Here's your chance to follow the leaders, every third Tuesday of the month.
So if you're not doing it already, send us your good news here.

New Units/Growth/Expansion
Pizza Press Set To Add 15 Locations by Year-End

Arooga's Signs AD Deal for 50 Units in Florida and Georgia

Fresh Healthy Vending Adds 119 New Locations in One Month

Fresh To Order (f2o) Signs 4-Unit Chicago Deal with Progressive Dining Group

Zeroez Opens in Albany, NY; Continues Expansion in Northeast

Papa John's Franchisee Lands $30...

Feature Story:

Idea Man: Steve Sager Continues His Innovative Ways »

By Helen Bond

Steve Sager knows a good idea when he sees one. The franchise veteran championed Subway's innovative $5 footlong sandwich as a nationwide promotion and pioneered the brand's use of speedy ovens to offer customers toasted subs in a flash. So when Sager says he sees financial promise in a new fast casual pizza franchise, you might want to listen. Sager, who owns 16 Subways in South Florida and 7 Auntie Anne's in Florida, Alabama, and Mississippi, is in on the ground floor of a development plan for Persona Neapolitan Pizzeria, a create-your-own, handcrafted pizza concept out of Santa Barbara.
At Subway, Sager opened 265 stores over the years as a development agent and has grown accustomed to fielding queries from franchising candidates seeking his funding and expertise...

Feature Story:

At Your Service!: Mike Bidwell Leads The Dwyer Group Into The Future »

By Kerry Pipes

Mike Bidwell is a leader who is clear, pragmatic, and to the point. "I'm passionate about creating opportunities for others to grow," says the 57-year-old president and CEO of The Dwyer Group. It's this focus that keeps him excited about the organization and its potential. Growth has been strong and strategic plans are in motion to continue growing through the expansion of its eight service brands and the acquisition of other, complementary brands.
Early in 2014, Bidwell, president of the Waco, Tex.-based brand for the past eight years, also became CEO. "That was really just a formality because I had been handling both roles for some time as Dina transitioned into her growing role as a public speaker and board co-chairwoman," he says...

Feature Story:

Don't "Grow Broke": Overcoming The Dangers Of Poorly Managed Growth  »

By Rod Bristol

Good news! The economy is growing again. However, expanding businesses are often in greater peril than those that have suffered through a challenging economy and declining revenues. The often misunderstood truth is that it costs money to grow.
Business owners who don't understand this end up fulfilling their higher sales dreams, but often at the cost of bankrupting their company. How can you prevent this? A great place to start is understanding the concept of "Financial Gap," the difference between the money you have and the money you need to grow.

Why does growth cost money?
As your sales grow, your company needs new assets to support those increased sales. By using the Financial Gap tool and calculating the present efficiency of your operation, you can predict with great accuracy what you will need in new assets to support increased sales...

Feature Story:

Putting Heads In Beds: Value Place's Kelly Poling On Her New Role »

By Kerry Pipes

This past September Value Place, the largest economy, extended-stay hotel brand in the U.S., named Kelly Poling executive vice president and chief marketing officer. As the leader of Value Place's brand, marketing, and distribution strategies, Poling says she is focused on strengthening the positioning of the brand and driving more guests to its hotels across the country.
The veteran executive came to Value Place from Rosetta Stone, where she led consumer marketing strategy and operations, but her hospitality industry experience runs deep. She spent seven years at Choice Hotels International, where she ran corporate strategy, marketing, and e-commerce. Other experience includes managing brands at Johnson & Johnson and developing IT and corporate strategies as a management consultant with Arthur Andersen...

Feature Story:

Washington State Gets First Taste Of Capriotti's »

Multi-Unit Franchisee

Ron Mehiel brought the first Capriotti's Sandwich Shop to the state of Washington this week as he opened the doors of his new location in Tukwila. There were free "Bobbie" sandwiches for the first 100 guests and at an official grand opening early next month all proceeds for the day will be donated to the Tukwila Pantry Food Bank to provide produce and dry goods to local families in need.
Mehial says he was first introduced to the sandwich brand by his brother and says he quickly noticed the difference in the high quality meats and fresh ingredients. "When I first stepped foot in Capriotti's I was blown away by the sandwich shop's commitment to serving its guests only the best quality products," he says. "It was at that moment that I realized I had to open up a location in our area...

Feature Story:

Industry Groups Join To Oppose Overtime Regulations »

Multi-Unit Franchisee

A united front of 15 franchisee associations and the International Franchise Association (IFA) are working together to fight the government's proposed changes to overtime regulations. Together, the groups submitted comments last week declaring the Department of Labor's (DOL) proposed changes to overtime regulations are "fundamentally flawed and bad for employers and employees," according to a statement issued. The IFA also accused the DOL of "failing to extend the comment period on the radical changes that will severely hamper job growth in the small business sector."
"The proposed change to the overtime rule is another action by the Obama Administration that dramatically alters how small businesses operate," said IFA President & CEO Steve Caldeira, CFE...

Feature Story:

Digital Ordering: Welcome To The Bring-Your-Own-POS World »

By Noah Glass

Digital ordering has gone through several waves of evolution over the past 15 years, starting with online ordering as the only ordering channel and now spanning multiple ordering channels, with mobile shining in the spotlight. But is mobile the key to digital ordering success? The brief history of digital ordering helps to shed light on the rise of mobile and its role in digital ordering today and in the future.

Digital ordering in the restaurant industry began with pizza. In the late 1990s and early 2000s, the big three (Domino's, Pizza Hut, and Papa John's) found a new way to capitalize on the rise of home dial-up by letting hungry customers place orders over the web. Online ordering was a natural fit for pizza customers, who were used to calling their local store and placing orders for home delivery...

Feature Story:

Social Media Roundup: September 8, 2015 »

By Daniel Lieberman

Is Facebook Ripping Off Businesses?
Sam Fiorella, a partner at Sensei Marketing, makes a strong case that it is. In his blog last month, he wrote: "Imagine a magazine's marketing team charging a business for an ad in its publication but then black out that ad unless the business pays more money for subscribers to actually see the ad. What would your reaction be to such an advertising policy? Any sane business person would be outraged and walk away. Yet Facebook is getting away with it." Limiting the number of followers who see a Facebook page's unpaid posts in their feeds was the last straw for some businesses (as few as 3% of brand fans now see unpaid posts). Facebook page owners work hard to build communities around them, and many of them feel it's unfair for Facebook to make them pay to run advertisements or to "boost" their posts...

Feature Story:

Clearly Transparent: Communicating And Sharing Success »

By Helen Bond

When it comes to creating a successful corporate culture, veteran Jiffy Lube franchisee Richard Paek has found that seeing does lead to believing. Paek, who opened his first Jiffy Lube in 1992, has built a multi-unit system that emphasizes transparency inside and out. If there is a sales, customer service, or employee performance stat to be had, Paek will use it to rank, reward, and motivate his team.
"'No sugarcoating' is one of our favorite quotes," says Paek, CEO of Newport, Calif.-based Allied Lube Inc., which operates 75 Jiffy Lube service centers in California and Texas.
This focus on sharing the facts with his 800 employees is paying off. With estimated annual revenue of more than $60 million, Allied Lube's growth outpaced the 2,000-unit Jiffy Lube chain by 9 percent in 2012, 7 percent in 2013, and is on track to three-peat growth in 2014...

Feature Story:

STAR Power: Top Performers In Franchise Recruitment Honored »

By Debbie Selinsky

Franchise Update mystery shoppers, posing as qualified prospects, surveyed attendees at the 2014 Leadership & Development Conference for best practices in lead generation, follow-up, and recruitment. Mystery shoppers scored 146 franchisors on their telephone responses, 147 on their recruitment websites and responses to website inquiries, and 147 on social media implementation, judging how well--and how quickly--franchise sales and development staff replied to qualified inquiries.
The resulting STAR Awards (Speaking To And Responding) were presented at a special awards dinner at the conference, held Oct. 15-17 in Atlanta. Multiple award winners were CertaPro Painters, PostNet, and Wild Birds Unlimited.

Best Overall Performance
1st Place: CertaPro Painters
The winner of three STAR Awards this year, CertaPro Painters celebrated for about 10 minutes before getting back to work, says Peter Barkman, vice president of franchise development for the Philadelphia-based brand...

Feature Story:

Partners Bring Sports Image To North Carolina »

Multi-Unit Franchisee

Tim Clougherty and Keith Fogleman have both officiated NCAA Division I basketball for more than 15 years. They both love sports and as the new Raleigh, North Carolina-based franchisees for Sports Image, they will help schools and organizations increase their revenue streams and get new equipment as the struggle for funding their athletic departments continues.
"Having played and officiated high school sports in North Carolina and having three children that are also involved in youth sports I realize how much sports builds character and how important it is for these organizations to not only exist but thrive," says Clougherty. "Both Keith and I have officiated NCAA division 1 basketball for over 15 years and you see some of the inventive ways that college institutions raise money through corporate and individual sponsorships...

Feature Story:

Avoiding Litigation Over System Changes »

By Cheng Cohen

Franchised brands are increasingly focused on implementing significant system changes. This trend is largely driven by maturing brands whose "makeovers" are necessary to keep the brand attractive and relevant, and by technological advances that are essential to operating efficiencies.
The biggest hurdle to system change often is franchisees who balk at the cost and time involved in making the change. Several recent lawsuits illustrate that when this happens there is a real risk of becoming embroiled in resource-draining litigation.

For example, Wendy's recently brought suit against its fourth-largest franchisee, who had challenged Wendy's right to require extensive remodeling to its restaurants and upgrades to the POS system...

Feature Story:

IFA Claims Labor Department Conducting Franchise "Witch Hunt" »

Multi-Unit Franchisee

Last week, the International Franchise Association (IFA) filed a Freedom of Information Act request with the Department of Labor's (DOL) Occupational Safety & Health Administration (OSHA) asking for the rationale behind questions OSHA inspectors are asking franchise owners, which appear specifically designed to presume a joint employer relationship between brand companies and local franchise small business owners. The group also wants to see correspondence between DOL and OSHA officials and the National Labor Relations Board (NLRB) and Service Employees International Union (SEIU), which is engaged in a three year, $50 million corporate campaign to destroy the legal separation between franchise businesses and grow union membership.
"The Labor Department is conducting a witch hunt that, at a minimum, exceeds the statutory authority afforded to the OSHA by Congress...

Feature Story:

Does Your Sales Process Fulfill The Real Needs Of Your Candidates? »

By Jim Bender

In a previous issue, we discussed the power of selling your brand's marketing expertise during the franchise recruitment process. This is a subject most franchise development people at best gloss over. Yet it is a compelling reason for candidates to select your brand over another. After all, if your ability to put "butts in the seats" is proven superior to that of other brands in the category, you have a distinct advantage when justifying differences in investments or franchise fees.

When you consider your overall franchise sales strategy, selling your marketing expertise is on par with selling your training, grand opening, business consultation, or technical support. It is one of a multitude of topics we in the development business must master...

Feature Story:

Homage To Heritage: Pollo Campero Rebrands For The 21st Century »

By Tim Pulido

Rebranding a major chain is never easy, but when your brand's historic roots run deep, there is even more on the line. It's great to have an established fan base, but a serious group of longtime devotees can be a double-edged sword. When a brand's look and feel starts to tire, how does a franchise draw in new audiences without alienating supporters who feel like family?
Pollo Campero, the world's largest Latin chicken restaurant brand, started as a small family restaurant more than 40 years ago. The restaurant's flavors were so special that Guatemalans and Salvadorans would bring chicken back in their suitcases to give family members living out of the country the unparalleled taste of home. Today, that devotion has helped Pollo Campero grow to more than 350 restaurants in 12 countries across the globe...

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Multi-Unit Franchisee Magazine

Issue IV, 2015

Multi-Unit Buyers Guide    

2015 Multi-Unit Buyers Guide

Special Edition

A Franchise Update Media Group Production
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