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May 2007 |
Volume 8, Issue 5, Part
2 |
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May: Thanks to
our Troops, past and present.
An Irreverent Look at Our Nations' Newspapers
1. The *Wall Street Journal* is read by the
people who run the country
2. The *Washington Post* is read by people who think they run
the country
Click
Here For More
In this issue...
Street
Smarts: Tips for Getting the Most Out of Trade
Shows. Industry
Focus: One-of-a-Kind Franchises. Guest
Column: What's The Big Secret?. |
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Tips for Getting the
Most Out of Trade Shows
Last time we gave you tips for getting the most
out of your next exhibition at a franchise show. But what about trade shows? In
some cases, they are more suitable for selling franchises. Trade shows aren't
looking to attract franchise buyers, they're focusing instead on attracting
target audience. That target market could be your franchise company's
industry. The National Restaurant Association Show, for example, would be an
ideal event for showcasing a restaurant franchise. However, there are distinct
differences between franchise expos and industry trade shows. The following tips
are specifically geared for trade show exhibitions.
• First, make sure the trade show you
have in mind is a good fit for your franchise concept. All trade shows do a
great job of tracking the kind of information that will help you evaluate if the
audience is indeed your target market.
• Trade shows often draw a
national or even an international crowd. Instead of weekends, they are often
held during the week. And instead of lingering after the show, attendees are
eager to go home at the end. Any meetings, seminars, or receptions should be
scheduled as early in the show as possible.
• Industry shows are often
large. Some have thousands of exhibitors. To get noticed, start advertising in
appropriate trade publications several months in advance. "Come visit us in
Booth #___" will help ensure your prospects will seek you out rather than get
lost in the sea of activity.
• Trade shows tend to be a
better match for franchise concepts that require a larger initial investment.
The general rule of thumb is franchise expos work best when the investment
requirement is less than $250,000.
• You can sell a franchise
during a franchise expo. Not so at a trade show. Trade shows are about lead
generation, not sales. Your goal should be meeting and qualifying new prospects
and building rapport. There's a lot of traffic at a trade show, which represents
an opportunity to attract many new prospects.
• Bring a bigger team to a
trade show than you would a franchise expo. Because of the larger attendance,
you'll need more manpower. The cost will go up, of course, but the cost-per-lead
and cost-per-sale should go down.
One-of-a-Kind Franchises
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 Company:
Adam & Eve Units: 40 Startup costs:
$200k Franchise fee: $30K Address/phone:
302 Meadowland Dr., Hillsborough, NC 27278 Phone:
(919)644-8100 Website: www.adamevestores.com In
business: 1970 Franchising since:
2003
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In the last issue, we introduced you to a
couple of franchise companies with very unique concepts. In this issue, we
continue our look at one-of-a-kind franchises.
Adam & Eve stores provide a safe and inviting
couples-oriented, female-friendly environment to explore romance and
erotica. The stores aim to have something for the sensualists in all of us
with everything from lingerie to bachelor and bachelorette gifts and
instructional manuals to games designed specifically to re-ignite the spark in
long-term relationships. Back in 1969, Adam & Eve made history as the first
adult mail order business in America. Over 35 years and 4 million customers
later, the company is a pioneer once again. It is the first (and still the only)
franchise in the adult store industry.
Marcus Goswick, Operations Manager of the Franchise Division,
says, "These types of stores are typically either corporately or individually
owned. There are some unique issues involved that make it a little more
challenging to franchise than traditional businesses. Mainly, there are
preconceived notions to overcome. It's kind of interesting that everybody uses
sex to sell, but when you attempt to use sex to sell sex, there are problems. So
we usually take the high road and try to be very classy in our presentation. Our
stores reflect that. We feel if we can provide a comfortable environment for
women to shop in, then everyone will be comfortable."
Finding a location is another challenge. Goswick says, "Whenever
we deal with landlords and site selection, there are legal issues with zoning.
The biggest challenges have been specifically related to finding locations and
finding landlords that are willing to deal with us. But we feel very comfortable
in our ability to get a franchisee open in 90 days."
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 Company:
L & W Investigations Units: 37 U.S, 2
International Startup costs: $105k Franchise
fee: $100K Address/phone: 3140 Red Hill Ave., #270,
Costa Mesa, CA 92626 Phone:
(714)979-0707 Website: www.lwinvestigation.com In
business: 2002 Franchising since:
2002
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L & W Investigations is the first franchise opportunity
in the U.S. to focus on private investigations specializing in all types of
insurance fraud. It's a bit surprising when you consider that insurance
fraud is an $80 billion crime wave. Scott Crowell, VP and part owner, says, "The
investigation industry is extremely fragmented due to the number of retired law
enforcement people in the business. Most are mom and pop operations. No one has
ever stepped up and built a network like ours. We implemented a standardized
program so insurance companies can have a one-stop shop for their cases
throughout the country."
"We have another secret ingredient," says Crowell. "Law
enforcement people are very good at field operations, but they really lack
business acumen. Over 90% of our franchise owners come from corporate executive
level positions. They have no investigative background. We're working with
billion dollar insurance companies. We need people with the business skills
necessary to manage a team of highly skilled investigators while being fiscally
responsible. The typical retired law enforcement guy has never managed people,
never run an office, hates being in front of his computer and on the phone,
doesn't know what customer service means, and all he wants is to be out
investigating. We'll certainly want that guy for investigations, but we need a
business guy running the business. We have national accounts and if the guy
running the Chicago office screws up our Delta Airlines account, everybody is
going to suffer. There aren't many executive style white-collar type franchises.
Our program is very much targeted toward the executive."
What's The Big
Secret? By: David Handler
Part I of
II
"The secret is the answer to all that has been, all that is
and all that will be." - Ralph Waldo Emerson
A lot of the big name talk show hosts - the Oprah/Ellen crowd -
devoted air time recently to The Secret, the book and video that sit atop The
New York Times and Amazon bestsellers list. So what is this media phenomenon
that claims to have "traveled through the centuries to reach you"?
It's a great marketing idea in creative packaging. As The Da
Vinci Code made Dan Brown a rich man, The Secret is creating über wealth for
author Rhonda Byrne. My advice: save yourself $20, or spend your summer reading
Harry Potter and the Deathly Hallows instead.
The big secret of The Secret is to introduce the masses to The
Law of Attraction (LOA), which has, indeed, existed in relative obscurity for
centuries. You previously may have come across its half-sister: The Power Of
Positive Thinking. However, equating positive thinking to attraction is like
comparing Larry The Cable Guy to Larry King. Positive thinking is based on
self-hypnosis, daily affirmation and avoiding negativity. LOA is about
intention, trust and allowing. Put another way, you attract into your life
people and things that are aligned with your thoughts and beliefs.
Critics dismiss LOA because they struggle to believe that when a
person identifies his or her true desires then exactly what they want appears. I
fully understand their skepticism…because I was right there with them 18 months
ago, setting out on a mission to prove LOA a myth - just a bunch of new age
gobbledygook.
However, in researching The Law Of Attraction from religious,
scientific and business perspectives, I discovered that many legendary thinkers
understood its ability to manifest desired results. Buddha, Albert Einstein and
Henry Ford are among those who realized that clear intention is the essential
element of success. Consider me a convert.
Next time: The Law Of Attraction and the future
of franchising.
David Handler is the founder of Success Handler, LLC, and
previously served as a senior executive at ICED. He leads franchisors and
franchisees to explore their professional and personal dreams. To unleash
attraction in your life, send an e-mail to coach@successhandler.com or visit
www.successhandler.com
Mexican Flavors Reach
Mainstream at QSRs
Larger numbers of burger, chicken and other
quick-service operations in the fast-food mainstream are adding south of the
border spice to their menus. Chipolte and polano peppers, spicy beans, cilantro
and all kinds of salsa are becoming commonplace at most of the major burger
chains and at submarine sandwich and bakery concepts. Even the Kentucky origins
of the KFC brands are being back-burnered at nearly 300 of that chain's Southern
California outlets to feature a new Grilled Mexi Bowl item containing
Mexican-style rice, jalapeno pinto beans and pico de gallo relish. From Dairy
Queen to Quiznos Sub, such ingredients are appearing in everything from
breakfast burritos to spicy salad dressings to burger and chicken sandwich
condiments.
According to Nation's Restaurant News research, at least 52
percent of quick-service chains offer Mexican-style menu items. The study also
found that nearly 60 percent of restaurants of all types plan to increase the
number of Mexican items. The growth of the Latino population and the year-round
availability of authentic ingredients from Mexico and elsewhere in Latin America
are making the offering of such dishes both more essential and practical.
Additionally, cravings for spicier foods are evident across all demographic
groups nationwide. (Nation's Restaurant News, 5/21/2007)
Kahala-Cold Stone Purchases
Blimpie
Kahala-Cold Stone, the newly formed company created from the merger
of multiconcept operator Kahala Corp and ice cream chain Cold Stone Creamery ,
has acquired the assets of New York-based Blimpie Associates and Metropolitan
Blimpie, a wholly independent franchisor and operator of the Blimpie concept.
Kahala, which already owns and operates the 1,300-unit Blimpie International,
acquired the 295-unit New York company for an undisclosed sum. Blimpie
Associates owns the franchise rights for New York City, Maryland, Pennsylvania
and parts of New Jersey. Blimpie International owns the rights for the rest of
the United States. Kahala Cold Stone said the unification of the two Blimpie
concepts will enable the company to consolidate all purchasing, marketing and
training programs. The 4,600-unit multibrand company said it also will step up
expansion of the quick-service chain, particularly in the international arena.
(Nation's Restaurant News, 5/18/2007)
 A Holiday Inn Express in Nashville, Tennessee has
sold for $39.25 million, only 4 ½ years after Montclair Hotel Investors Inc.
bought it for $8.4 million. Montclair said the sale to Birchmont Capital
Advisors LLC of Los Angeles may be the biggest ever for a Holiday Inn Express,
at $137,000 per room. In comparison, Highland Hospitality Corp. bought the
Renaissance Hotel for $77 million or $114,000 per room in February 2006.
Birchmont is a privately-held company that invests in real
estate. The company's last acquisition was 1,101 multifamily units in Dallas,
Texas and 282 multifamily units in Amarillo, Texas, purchased in joint venture
with JRK Asset Management of Los Angeles for $48.5 million. Montclair, based in
suburban Chicago, is a hotel investment and management company. The company owns
16 hotels in California, Illinois, Washington, Minnesota and Wisconsin.
(Nashville Business Journal, 5/11/2007)
Wendy's Upgrades
Coffee
Wendy's plans to follow the lead of its rivals by
introducing a new proprietary line of upscale coffees. The chain said the new
array will be a key component of its breakfast menu, which is currently in
widespread tests in anticipation of a rollout starting later this year.
Franchisor Wendy's International said its new coffees will be marketed as
Wendy's Custom Bean by Folgers Gourmet Selections. Initially, the new brews will
be offered throughout the day at 20 to 30 percent of the North American
restaurants that intend to start serving breakfast by the end of 2007.
With this move, Wendy's joins its major burger chain competitors
that are continuing to upgrade their coffee programs. Burger King has dubbed its
new brew BK Joe and McDonald's has attributed a significant portion of its sales
growth to the rollout of its new McCafe coffee. Kerrii Anderson, Wendy's chief
executive and president, said the goal is to make Wendy's a destination for
coffee and expects the upgrade to help attract new customers and positively
impact store margins. (Nation's Restaurant News, 5/18/2007)
KFC Corp. is testing milkshakes, grilled
chicken and late-night hours at its U.S. restaurants as part of a move to boost
domestic sales. The fast-food chain's traditional chicken-on-the-bone offerings
- Original Recipe and Extra Crispy - are both fried. The chain believes the
grilled menu items will appeal to women, health-conscious consumers and anyone
else who wants an alternative to fried chicken.
The late-night hours have been tested in New York City and will
be expanded to other markets. Most KFC stores now stay open until 10pm and
stores that stay open from midnight or later will offer a trimmed-down menu and
drive-through service only during the late hours. The addition of milkshakes to
the menu is part of an effort to create "destination" drinks and desserts at Yum
restaurants, which also include Pizza Hut, Long John Silver's and A&W All
American Food. The KFC shakes, called Avalanche, cost $1.99 and come in two
flavors: Old Fashioned Vanilla and Chocolate Dream. A decision about national
rollout will most likely be made by the end of this year. (The Courier Journal,
5/3/2007)
After a brand repositioning over the past three years, Ramada is
poised to see positive room growth in 2007. According to company officials, with
the acquisition of international rights and brand improvements, the hotel chain
is seeing performance gains. Revenue per available room in the last 24 to 36
months increased faster than the midscale-with-food-and-beverage segment month
after month.
After removing about 30,000 rooms from the system, the brand is
ready to grow with quality. Additional improvements to the now smaller Ramada
system will continue to be made including more emphasis on service, cleanliness,
product quality and training. The portfolio is made up of about 600 properties
in the United States, 70 in Canada and 200 internationally. (Hotel & Motel
Management, 5/7/2007)
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