Arizona Feature Articles

Conventional wisdom has it that young franchises are jumping on the area developer bandwagon to grow quickly and establish their presence in the most efficient way.

Business owners understand the importance of advertising and the need to maximize how their dollars are spent. But how do you do that? For multi-unit franchise operators, much is at stake. Here's a look at what four area developers have done to make the most of their advertising spending.

Area developers usually come to the party with experience in franchising and the industry they're in--or at least one of the two. In the case of new Precision Tune Auto Care area developers Dick Lippert and Al Unser, Jr. (yes, that Al Unser, Jr.), neither has franchise experience. But Lippert brings a strong track record of business success. And Unser? Well, he knows a little something about cars.

When Mike Willett was looking for creative ways to finance the growth of his franchise plans in the Houston area, he looked no further than his existing retirement plan. With a program known as a BORSA (Business Owner's Retirement Savings Account) Plan, he recently tapped his 401(k) holdings to launch the regional development of Synergy HomeCare. The BORSA program is structured so that retirement funds can be used for business development without distributions, taxes, penalties, or loans.

Most small businesses, including franchises, are usually so busy concentrating on running their businesses that they don't realize the toll it is taking on their technology and environment. With limited staff and hours in the day, these businesses tend to grow organically without a specific design or technology plan. Yet these play an important role in how productive a business can be.

One-third of the nation's population is "minority" (U.S. Census), but only about 10 percent of franchises are minority-owned (National Minority Franchise Initiative). Or, to look at it another way, 90 percent of franchises are not minority-owned.

In the world of ice cream retailing, many believe that mix-ins and premium ice cream originated in 1973 when Steve Herrell opened the now-legendary Steve’s in Somerville, Massachusetts. Today’s brands make those days seem almost quaint, like Henry Ford’s Model T in a world of 200-mph Ferraris.

"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.

Gina Mehr has experienced success; now she wants to be effective.

Whether it's high-fat super-premium gourmet ice cream with mix-in candy, fudge, or fruit, or just plain vanilla low-fat frozen yogurt, for most Americans it's not if or when, but how often they'll indulge in a sweet, tasty, frozen dessert or treat. In the U.S. today, ice cream is a $20 billion-plus industry, with 90 percent market penetration. The industry is mature, meaning any gains from one competitor (Haagen-Dazs vs. Carvel) or segment (super premium vs. light) will be scooped from another.

Irvine, CA-based El Pollo Loco has a penchant for serving hand-marinated, flame-grilled chicken and the freshest Mexican foods, and last year the company experienced record sales of $396 million. But executives there say that although their product is important, they owe much of their success to their loyal and dedicated employees. In fact, multi-unit operator Roland Spongberg recently went six years without losing a single manager at his 21 southern California El Pollo Loco locations. So what's going on at this company that's creating this environment of motivated, hard-working employees who stay the course?

Franchised businesses generate jobs for more than 18 million Americans and account for 9.5 percent of the private-sector economic output, a study released today by International Franchise Association Educational Foundation reported.