Vermont Feature Articles

Multi-unit, multi-brand operators continue growing larger each year--a trend that continues to accelerate as these Dominators expand their portfolios through acquisitions, new units, refranchising offers, and scooping up successful units from retirees

Multi-unit franchise operators are about to exceed the 55 mph speed limit (or in this case, the 55% limit).

As savvy franchise companies continue to flourish in a changing economy, FUSR continues to bring you good news each month, highlighting brands that are adding units, increasing comp store sales, striking deals with investors, innovating, and continuing to grow, whether domestically or overseas.

The Great Recession has shifted the thinking and behavior of consumers, forcing franchise brands to respond with changes of their own as they try to keep up with the new normal. Indeed, no discussion of franchise trends in 2011 and multi-unit operators' favorite brands can begin without a nod to the recent economic turmoil and its residual short and long-term effects.

The south-of-the-border spirit of great Mexican food and authentic art could soon spread throughout New England and beyond, thanks to a new franchising and area development agreement rolled out by Margaritas Mexican Restaurant.

2009 continued to be a year in which courts found that by providing earnings information in an Item 19 franchisors were able to prevail in cases in which the franchisee asserted claims for fraud surrounding alleged misleading earnings claims. Due to the length of time it takes a case to arise and percolate through the court system, each of these cases involves franchisees who received disclosure under the prior UFOC Guidelines. However, as the cases all relate to a franchisee's ability to rely on the earnings information there is no reason to believe the result would differ under the FDD format.

Airport concessions may, at first glance, seem like a risky endeavor. Traffic has been steadily declining for a year - down nearly 12 percent in February 2009 when the FAA released its last traffic statistics - and the barrier to entry remains high. But consider the upside. The largest U.S airports host an average of 60 million passengers each year. Not one U.S. air carrier offers their coach passengers breakfast, lunch, or dinner service on domestic flights. Locations offering healthy, fresh, portable options are limited, yet travelers often have hours to wait for delayed flights, missed connections, or - in the best case scenario - a shorter than average security wait time.

In franchising, no one has to be reminded of the importance of making deals and signing fabulous new franchisees. But unless you actually open new units, inking the deal is only part of the story. This important distinction--between units sold and units opened--led us to examine six franchises that grew by more than 100 units between 2005 and 2006 and ask them how they did it.

Keld Alstrup went to Canada in 1968 to see the world outside his native, tiny Denmark. He ended up working for Ford and then Volvo. So things, as he says "worked out."

In the $150 billion worldwide hair-care industry, Regis Corp. rules the roost. Regis has 55,000 corporate and 33,000 franchise employees in its more than 11,000 salons worldwide. Company brands in North America include Regis Salons, MasterCuts, Trade Secret, Supercuts, and Cost Cutters. (The company has about 60 brands gloally.) Regis owns a four percent domestic and two percent worldwide market share and predicts $2.4 billion in revenue in fiscal 2006.

Franchise organizations cite these conventions as a vitally important part of their success. Traditionally, the meetings have provided an opportunity to bring franchisees together regularly to share system information and offer training. But these "family" get-togethers are continuing to evolve as franchisors look for new and refreshing ways to attract, motivate, and energize their franchise operators and send them back to their stores full of information and inspiration.

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.