North Carolina Feature Articles

Can an elephant change its spots? Sometimes it feels easier to start a new brand than to change an old one-even if the old one seems ready for the bone yard. But how do franchisors who want to keep a valuable (but tired) nameplate breathe new life into it, attracting new customers while retaining the faithful--and convince its franchisees not only to have faith after years of malaise, but that change is what they need? Franchise UPDATE spoke with three franchisors who knew they had a good thing going-and figured out a way to make it fly once again.

As a college dropout with a highly successful father (a transplant surgeon), Brian Scudamore had a mission. He had started 1-800-Got-Junk? as a way to pay for college and now was determined to put his business to the test. But let's not get too far ahead of ourselves.

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.

Guess who the biggest rival to Starbucks is? Would you think Dunkin Donuts? You should, says Jett Mehta, a Dunkin Donuts multi-unit franchisee in New York. "Starbucks may own their experience, but Dunkin is nipping at their heels," he says. "Starbucks can't touch Dunkin in new England." In fact, Mehta says, it's not about the donuts: "Dunkin Donuts is a beverage business-it's all about coffee. In western New York, 50% of our sales are beverage-based, or premium things like bulk beans. Donuts are only about 25%."

Ron Berger knows the advantage of buying an existing franchise concept and improving on it. That is what he has done with Figaro's Pizza, a Salem, Oregon-based chain that is growing at a rapid pace.

Bill Welter's name may not be familiar, but one small phrase he created decades ago will place him for you immediately: "Where's the beef?" Yes, Welter was executive vice president of marketing for Wendy's when that famous campaign made a star out of a little old lady named Clara Peller, and gave Wendy's a real boost in the marketplace.

Steven Rogers has set his company apart from the crowd with a winning formula on acquiring franchise systems in the residential services field. As president and chief executive officer of the Franchise Company, Rogers has amassed 9 franchise operations that provide services to more than 400,000 customers through a network of more than 2,000 franchisees employing 8,500 workers.

Bill Welter's name may not be familiar, but one small phrase he created decades ago will place him for you immediately: "Where's the beef?"

Franchisors in search of new concepts have discovered a rich market in small businesses that could benefit from the perks that larger companies enjoy, but cannot justify or afford them. Having access to these professional services can have a profound impact on the success of small businesses.

Multi-unit, multi-brand, co-branding, area development--you've seen these defined, and they are distinct entities. Most multi-unit franchisees start with a few, and quickly grow one brand, then add another, and often enter into an area franchise agreement.

Franchisors in search of new concepts have discovered a rich market in small businesses that could benefit from the perks that larger companies enjoy, but cannot justify or afford them. Having access to these professional services can have a profound impact on the success of small businesses.