Franchise Update Magazine Issue II, 2006: The Road Less Traveled
Franchise Update Magazine: The Road Less Traveled

Q2 | 2006

The Road Less Traveled

RedBrick Pizza
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RedBrick Pizza
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RedBrick Pizza
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State regulators across the country are out to blur the distinction between franchisors and employers. If they succeed, they could crimp the growth of one of the franchise industry's hottest segments: franchise providers of janitorial, security guard, industrial gardening, delivery, and other services to commercial clients.
Barry Kurtz and Richard Rosenberg
Barbara Moran had given up on the idea of ever heading up her father Dennis's company, Moran Industries. She'd wanted to be president, but was told that it wasn't in the cards because a woman in a male-dominated industry just wouldn't work for customers and franchisees.
Eddy Goldberg
There's nothing mysterious about what investors and franchisors want from one another: a reliable partner who can help them achieve their goals. For the franchisor, it's all about brand and unit growth; for the investor, it's return on investment.
Eddy Goldberg
Manuel Solorzano was frustrated with his drivers and their excuses. The owner of six Martinizing Dry Cleaning stores in Tampa, Fla. would call his drivers on their cell phones during the day and never know whether he would reach them or not.
Linda C. Ray
The use of outsourcing continues to expand within the franchise industry. In addition to information technology outsourcing, service providers are being called upon to perform a number of business processes including accounting, call center operations, disaster recovery, human resources management, and sales training.
Milton B. Whitfield
Belgium's new franchise law, which was the subject of several legislative delays during 2005, has now been formally adopted. Originally, the law was set to go into effect as of September 1, 2005; however, on January 23, 2006, a decree published in the Belgian Official Gazette notified the public that the law had been amended to establish an initial effective date of February 1, 2006.
Ryan Whitfill
Wayback Burgers
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Time for my annual "just got back from the IFA Convention" column. I saw lots of my lawyer friends while there-also met a lot of suppliers, franchise consultants, academicians, journalists, and franchisees. Occasionally, I even came a cross a franchisor. Didn't see too many psychologists, however. Why not?
Rupert M. Barkoff
On January 25, 2006, an amendment ("Amendment") to the Mexican Industrial Property Law ("IPL") was published in the Federal Official Gazette. The Amendment was published after a long discussion initiated by Congress in early 2005, and became effective on January 26, 2006. The Amendment's final provisions were the result of a very effective lobbying campaign by major players in the franchising sector and, fortunately for the industry, Congress eliminated many of the overly restrictive aspects of the initial bill that could have unnecessarily hampered the industry. In the end, Congress' objective of providing more protection to franchisees was well balanced with the legitimate rights of franchisors. For example, certain ultra-protectionist provisions for franchisees originally contained in the bill, such as certain rights of first refusal in franchisees' favor and the right to request cancellation of registration of franchisor's trademarks in certain cases, were not incorporated into the Amendment.
Alberto de la Peña
Unfortunately for those who take on the job of growing a franchise business, financial risk is always present. If you are like other franchisors who want to minimize risk and boost profits, you may want to take a serious look at using a more extensive corporate-ownership program than you now have in place.
On January 25, 2006, an amendment to the Mexican Industrial Property Law was published in the Federal Official Gazette. The Amendment was published after a long discussion initiated by Congress in early 2005, and became effective on January 26, 2006. The amendment's final provisions were the result of a very effective lobbying campaign by major players in the franchising sector and, fortunately for the industry, Congress eliminated many of the overly restrictive aspects of the initial bill that could have unnecessarily hampered the industry. In the end, Congress' objective of providing more protection to franchisees was well balanced with the legitimate rights of franchisors. For example, certain ultra-protectionist provisions for franchisees originally contained in the bill, such as certain rights of first refusal in franchisees' favor and the right to request cancellation of registration of franchisor's trademarks in certain cases, were not incorporated into the amendment.
Alberto de la Peña
After 25 years in franchising, Russ Cooper, age 55, retired--but it didn't stick. "I flunked retirement, basically," he says, laughing.
Eddy Goldberg
There is no better way to appreciate the popularity and economic buoyancy of franchising south of the border than to have witnessed the phenomenon of the 29th International Franchise Fair, held from March 8 to 10 at Mexico City's World Trade Center. This three-day event rivals franchise trade expos in any other part of the globe. The event receives almost unprecedented press and TV media attention and typically delivers a high-profile exposure of both Mexican and non-Mexican franchise brands.
Charles Weeks
Belgium's new franchise law (the "Law"), which was the subject of several legislative delays during 2005, has now been formally adopted. Originally, the Law was set to go into effect as of September 1, 2005; however, on January 23, 2006, a Decree published in the Belgian Official Gazette notified the public that the Law had been amended to establish an initial effective date of February 1, 2006.
Ryan Whitfill
There are a lot of ties in life. In baseball, a tie goes to the runner. In the hiring process, a tie goes to the boss's son. Well, for customers choosing between competing stores, a tie often goes to the graphics.
Bruce Olans
"If you're not moving forward, you're standing still," goes the old business axiom. In franchising, expansion is one way of moving forward. Whether you're a start-up organization or a player who's been around a while, growth through new sites is an objective--and when it comes to successful site selection tactics and techniques, consider the following approaches.
Kerry Pipes
When doing business in Mexico, it is essential to establish relationships with associates who are well connected. This requires checking their backgrounds and reputations to determine the depth and breadth of their personal and professional networks. Joining local social clubs and business organizations, participating in the American Chamber of Commerce in Mexico, and visiting the nearest U.S. consulate and the Commercial Attaché at the U.S. Embassy are useful ways to obtain such information. Cultivating personal relationships with your Mexican banker and local executives of your joint venture partnership also provides access to this kind of business intelligence.
Richard Hill
After more than 20 highly successful years in the painting business, Charlie Chase still finds himself--several times a day--trying to convince people that painters aren't just guys who can't hold down a job.
Debbie Selinsky
When doing business in Mexico, it is essential to establish relationships with associates who are well connected. This requires checking their backgrounds and reputations to determine the depth and breadth of their personal and professional networks. Joining local social clubs and business organizations, participating in the American Chamber of Commerce in Mexico, and visiting the nearest US consulate and the Commercial Attaché at the US Embassy are useful ways to obtain such information. Cultivating personal relationships with your Mexican banker and local executives of your joint venture partnership also provides access to this kind of business intelligence.
Alberto de la Pena
ATAX
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ATAX
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ATAX
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