Heavy-hitters in Franchising on Franchise Today in 2013

Media Contact: Sara Schulte, Fishman Public Relations, (847) 945-1300 ext. 256 or sschulte@fishmanpr.com
For Immediate Release

“Franchise Today” Announces 2013 Interview Schedule Featuring Heavy-Hitters in Franchising
Franchise radio show announces new format with in-depth, multi-part series

Houston, Texas – January 25, 2013 – “Franchise Today,” the franchise-focused radio show on Blogtalkradio.com, kicks off 2013 with a new multi-part series format featuring some of the most respected names in franchising. Following the recent merger between franchise development companies FranchisEssentials and Franchise Foundry, the platform is now a production of the latter and is poised to continue its growth within the industry.

Hosted by Paul Segreto, president and CEO of Franchise Foundry, the show’s newly expanded format continues to focus on presenting the franchise community with best practices and advice on various aspects of management and development. Each series of multiple episodes will feature industry leaders, experts and key players sharing their unique perspectives on the chosen topic. The first of nine themes centered on marketing and included guests such as CEO of PostNet Steve Greenbaum on promoting your brand, Jeremy LaDuque of ElementsLocal on the challenges and opportunities of online marketing, Steve Baxter of Satmetrix on the customer experience as a key marketing component and Sandy Lechner of SproutLoud on the brand management value proposition.

“Our goal with ‘Franchise Today’ is to help educate franchisors by providing volumes of information on the most pertinent issues in the industry,” said Segreto. “Over the past four years, we’ve been able to build a community of listeners both here and internationally that is hungry for knowledge and best practices. I’m excited to be part of a resource that can aid franchise professionals and create success at all levels.”

Upcoming Q1 series include February’s “Voices of Franchising” featuring IFA President and CEO Steve Caldeira, just days before the IFA convention, as well as Nancy Weingartner from Franchise Times; “Franchise Finance & Multi-Unit Franchising” in March; and the fourth annual “Franchise Legal Series” made up of eight parts culminating with the IFA Symposium recap for April and May. New to the Franchise Today lineup is a summer-long Franchisor Spotlight Series where some of the leading franchisors share best practices they’ve implemented for improved unit-economics and franchise growth. Additionally, Segreto is planning six to eight special event broadcasts throughout the year for a total of approximately 60 live shows in 2013.

For more information or to listen to live and archived shows, please visit http://www.blogtalkradio.com/franchisetodayshow.

About “Franchise Today”:

Hosted by industry veteran Paul Segreto, “Franchise Today” is a production of Franchise Foundry, a full-service franchise management and development company. The radio show has grown to thousands of listeners, including international, and focuses on sharing advice and best practices from the leaders of the franchise community. Segreto and his team’s goal is to educate franchise professionals and help franchisors succeed at all levels. The new format promises multi-part series throughout the year as well as several special event broadcasts. Franchise Foundry also co-produces FranSummit, a social media and digital marketing workshop. To listen to “Franchise Today” live or hear archived shows, visit http://www.blogtalkradio.com/franchisetodayshow.

A New Beginning…

Just to eliminate any confusion… In my new expanded role as CEO at Franchise Foundry my goal is to bring the strengths of Franchise Foundry and FranchisEssentials together as one for the benefit of start-up and emerging franchise brands, both domestic and international.

In addition to seeking investment opportunities, Foundry will expand its franchise sales & development services, and also provide consulting services in franchise management and technology. Services will be provided on a contract basis or in an interim c-level management capacity. In essence, what FranchisEssentials previously provided as services to the franchise community, will now be part of a suite of services offered by Franchise Foundry.

Foundry will also provide matchmaking services for acquisition, partnership, merger and investment capital, while offering transition management services to effectuate a smooth transaction and maintain continuity within the franchise system.

In relatively short order, online presence to include websites, blogs and social profiles, will reflect changes detailed above to define a unified blend of two successful franchise organizations as one, Franchise Foundry.

This blog will now become my own personal blog where I’ll share my thoughts and insights on many topics relevant to franchising. I trust my insight and perspective will continue to have value to franchise professionals at all levels.

A Special Thank You to Franchise Professionals Ahead of the IFA Convention!

Are we there yet? That’s what I posted on Twitter about the upcoming IFA Convention in Las Vegas. I truly feel like a kid in the backseat of a long family road trip. I can’t wait to get there. I’ve been looking forward to it for quite some time. But now that it’s within reach, only a couple of days away, my excitement is peaking. Yes, are we there yet? How many more hours until we get there? Well, when we do get there I’m going to do this and that. Let’s just call it the kid in a candy store syndrome.

It is an exciting time in franchising. Riding the heels of the positive Franchise Business Economic Outlook 2011 report, and news about even the slightest loosening of business credit, it’s definitely an exciting time to be a part of franchising.

Year-long improvements at the IFA, a new CEO and President, Steve Caldeira, who by the way was just named to the board of directors of the Small Business Legislative Council, a new and improved website and social media presence, some great new people including Matt Haller complementing some great IFA veterans including Alisa Harrison, Paul Rocchio and Scott Lehr, just to name a few, just lends to the strength of the franchise community. Great work over the past year by IFA Chairman Ken Walker and anticipation of Jack Earl, a multi-unit franchisee, as incoming Chairman further exemplifies the focus of the IFA. Definitely too many to thank on the recent segment of Franchise Today as we only had an hour. But I believe all of you at the IFA and everyone else in franchising knows who you are.

To the many guests my co-producer Joe Caruso has scheduled to be on Franchise Today over the past year, I thank you as well and look forward to meeting all of you in person at the Convention. Again, many to mention but allow me to try…

Many thanks to Steve Caldeira for taking the time out of an unbelievably busy schedule to discuss the franchise business economic outlook, Alisa Harrison for helping to coordinate Steve’s appearance as well as her guest appearance on Franchise Today, and to Ron Feldman and Darrell Johnson for their great insight into franchise finance.

Of course, I can’t forget the many lawyers Joe has scheduled for both our popular legal eagle franchise series and individual segments where we discussed a wide range of riveting, relevant topics within franchising. To Warren Lewis for his great Franchise Sellers Handbook, to Lane Fisher for his fabulous perspective on Franchise Performance Representations, to Jonathan Redgrave for his discussion about the legal aspects of social media within franchising. To Michael Webster, franchisee attorney and strategic chair at the International Association of Franchisees and Dealers, and to Leslie Curran for her insight into utilizing franchise brokers effectively. And, to Arthur Pressman, who took time out of vacation on the Cape to spend an hour talking about franchise litigation. To all the attorneys that appeared on Franchise Today, I say thank you.

On the pr side, I thank Brad Fishman and Rhonda Sanderson for two very candid conversations on Franchise Today. Of course, thank you to my most recent guest, Jack Monson, another pr genius. To Mary Ann O’Connell who is always a pleasure to speak with, to Michael Stone for sharing his vision with the Professional Athletes Franchise Initiative, and to Nancy Weingartner and Franchise Times for time spent visiting with me both on and off the air, always providing compelling franchise news and sneak peeks at upcoming issues.

On the technical side of things I thank BJ Emerson and Jeremy La Duque for their insight into social everything. And let’s not forget the franchisors and franchisees that Joe has brought through our virtual studio including Amy Nichols and Deb Evans, and Dave Melton who shared his experience and success as a Dominos franchisee.

What an unbelievable “who’s who” in franchising that Joe Caruso has brought to the table for Franchise Today. Certainly, I’ve missed some and I do thank you as well. And look forward to meeting everyone at the IFA Convention.

Last, but definitely not least, I do thank my co-producer, trusted advisor, and sometime chaplain and therapist, but mostly friend, Joe Caruso. Without him Franchise Today would not be the leader in franchise media as it is today. I can’t thank you enough.

Discussion About IFA’s 50th Anniversary Exemplifies What Franchising is Really About!

Recently, on the International Franchise Association group on LinkedIn, I posted the following discussion, “The 50th Annual IFA Convention in San Antonio is less than three weeks away. Will you be attending? If so, what do you hope to bring back to your organization? If not, is there a specific reason?”

Many franchise professionals responded and explained why they would be attending the event. Most of the responses centered around sharing ideas and building relationships. Sure, some mentioned exploring new opportunities with potential and existing clients, but we are all in business to make money, right? But in addition to generating new business, almost all that responded were looking to interact with fellow franchise professionals. Hopefully, long-term relationships will be established over time and the franchise community will continue to evolve and strengthen.

One of the responses was from franchise veteran, Michael Seid. He stated that he had been going to IFA conventions for 25 years. I really admired the fact that he had attended these events for over a quarter of a century! Think about all that has changed in 25 years. Just think about the technological changes that have occurred during this period of time. I mean no one was walking around the IFA event in 1985 with a cell phone, right? How about a laptop? Could anyone have even imagined the internet and email? Heck, fax machines were barely around in 1985, albeit the ones that were used that ridiculous paper that always seemed to roll onto to the floor and under a desk… just out of reach.

Yes, times sure have changed, but the love and passion for franchising apparently has not. It’s just been passed onto people like Michael Seid. By virtue of his responses to my original discussion, and subsequent question, “I’m curious, what was the convention like back in, what, 1985?”, Michael takes us down memory lane and does so in such a dignified manner and with genuine sincerity, that he really seemed to pay it forward. For the benefit of all within the franchise community, I am honored to share his response below.

“1985 was in Miami if I recall and that was not my first so it may be longer than [25 years]. If I recall the attendance at my first convention was measured in the hundreds – not like we have now in the thousands. It was a much different association – we have come a long way with programming and content and member services. A lot of the founders were still around. I just got a great biography of Joe Francis from The Barbers who was very active years ago. If you did not know Joe you missed a great man – really a fine individual who went out of his way to give guidance to anyone who asked for his help. His son is still very active in the IFA. It’s a great quick read if you have not seen the book. Joe is gone 15 or more years.

The culture of the IFA has not changed. You can still corner an experienced member as a new comer and they seem always to be thrilled to mentor and give advice. I remember asking Fred DeLuca a question when I was new in the association and he spent two or more hours giving me his advice. That has not changed at all as most members today will do the same for a new comer.

Looking back at what has changed – No franchisees back then. That was a major difference Steve Lynn and Jim Bugg made that happen). No PAC to speak of (Sid Feltenstein changed that). No franchise appreciation day (Bernie Browning‘s idea). No Education Foundation only an education committee (I think Sid Feltenstein is also responsible for that). No thought of diversity or minorities in franchising (Ron Harrison). No VetFran (Don Dwyer‘s idea during the first gulf war). No Second Tuesdays (if it was not Lane Fisher and Scott Lehr then they were responsible for making it grow as it has). Who would have thought we would be looking at using franchising to provide products and services to the poor in the emerging markets and yet today we have the Social Sector Franchising task force. No CFE (John Reynolds). No one would have thought of a franchisee ever being chairman (Steve Siegel was the first and Doc Cohen the second). No franchisees or suppliers forum leadership on the board (Joyce Mazero if I recall was the first Counsel of Suppliers chair on the board and Jeff Kolton was the second – although we had no vote then. Supplier membership on the Executive Committee did not exist (I had that privilege when I was supplier chair to be the first because of Gary Charlwood).

I remember the IFA chair years ago saying that he would never let a mattress salesman (his word for suppliers) ever being on the board. Suppliers got a board vote when Gary Charlwood was chairman). No suppliers elected to the board in their own name for six years (I was privileged to be the first and Lane Fisher the second). No women as chairman (Joanne Shaw was the first and Dina Dwyer the second). No major investment in research (Mike Isakson). I think Jim Amos when he was chair actually creating the first IFA long range strategic plan. When Don DeBolt became president of the IFA we were near bankrupt and look at the great financial condition we are in now (Russ Frith as Treasurer did an amazing job). We did a lousy job in lobbying years ago and now we have a huge public affairs team. We dealt with Coble and LaFalce holding hearings on relationship laws in Congress and those days are gone.

Yes a lot has changed over the years. We owe a debt to a lot of some very smart folks who were in the leadership back then who kept adding great elements to make the association better. Along the way we had some who were less than stellar also but for the most part, we have been fortunate by those who chose to be in the leadership. Lets not forget the amazing job Debbie Moss has done in growing and professionalizing the convention supported by a really professional team of staff.

Still with all of the change, growth and the better financial condition of the association, the culture of the IFA has not really changed. I expect that many of the members/leaders from years ago who have not been active in the IFA will be at the 50th anniversary. Some of them will be surprised and pleased how far we have come.”

Introduction to International Franchising

The following article was submitted by Guest Author, Kathryn Rookes. Kathryn is an experienced franchise attorney and a member of FSB Legal, a virtual law firm. She is one of the very few franchise attorneys in the United States with experience in a government regulatory practice (Maryland Division of Securities), private practice, and as in-house counsel. With this diversity of experience, Kathryn understands the issues that franchisors face on a daily basis.

Introduction to International Franchising
as submitted by Kathryn Rookes, Attorney, FSB Legal

Introduction

Many franchisors perceive international expansion of their franchise concepts to be a great way to generate cash on a short term basis and do not fully appreciate the long‐term commitment that successful international franchising requires. The level of commitment and resources required to expand internationally is often greater than that required for domestic expansion. This article provides a brief overview of the requirements for international franchising and identifies a typical international deal flow process. We also have included several resources that contain additional information for further research.

Evaluate Your Resources

When making the decision to go international, you must consider the additional resources that you will need to successfully expand and support your new international franchisees. Areas of increased costs to consider include telephone and postage, travel, marketing, trademark registration, preparing international franchise agreements and disclosures, costs of goods due to export/import controls, foreign taxes, translations and document registration, to name a few.

Determine What You Will Offer

International deals are normally structured in one of three ways. First are single unit franchise sales (sometimes called direct franchising), much like many systems sell in the United States. The next option is area development rights, in which you identify 1 developer who opens multiple units of its own. The third common option is master franchising (also called sub‐franchising). In this method you identify 1 developer that has the right to open its own units, and also the right to sell additional units to other franchisees. In addition to these three methods, some international arrangements are structured as joint ventures, in which you are an equity partner with your foreign franchisee. Each method has its own risks and rewards, so you must evaluate your goals and your resources to determine which method best suits your needs.

Finding Good Research

Your research on each opportunity generally consists of two areas, research on the territory and research on your prospective franchisees. The internet provides a wealth of information on the territory. The United States Department of Commerce is a good starting point as is its included agency, the International Trade Administration. The trade promotion unit of the International Trade Association, the United States Commercial Service also provides significant help by providing market research, worldwide trade events for promoting your offering, assistance in identifying prospective franchisees, manufacturers and distributors, and individualized counseling on going international.

For research on your prospective franchisees, you are well served to retain the services of one of the many companies that provide due diligence or investigative type services. Research on people and companies in other countries is a very tricky business, as the stability, accuracy and adequacy of information in other areas of the world is often lacking. These companies will be able to evaluate the trustworthiness of the information they obtain, and can educate you on the limitations of the information so that you can make your own decisions on the risks you are assuming by choosing any particular franchisee.

Establishing a Deal Flow Process

The deal flow process for international deals will usually be significantly different from your domestic deal flow process and will necessarily require more time and resources for each deal. We generally recommend the following steps to ensure compliance with Unites States’ and the foreign country’s local law.

1. Determine whether there are any legal or practical barriers for your target country. Legal barriers include the U.S. government’s trade embargos and terrorism sanctions, in which U.S. businesses are prohibited from conducting business in certain countries. You may find this information primarily at the United States Department of the Treasury, Office of Foreign Asset Control website. The primary restrictions involve, as of January 2009, Balkans, Belarus, Burma, Cote d’Ivoire (Ivory Coast), Cuba, Democratic Republic of the Congo, Iran, Iraq, former Liberian Regime of Charles Taylor, North Korea, Sudan, Syria and Zimbabwe. Practical barriers (which also can be legal in nature) might include currency export restrictions (you won’t be able to get paid), prohibitions on foreign investment and/or ownership (you’re not allowed to invest there), lack of governmental infrastructure (you can’t register your trademarks or protect your intellectual property, trade secrets or contract interests due to lack of a stable court system), competition (both laws and actual), taxes (you can’t afford), restrictions on transfer (can’t stop your franchisee from selling out), economic conditions (won’t support your business model) and other such items.
2. Once you have determined that there is no barrier, you should determine whether there is a franchise disclosure and/or registration law in the target country. If there is, you should retain local counsel immediately to draft the necessary disclosure and handle the registration for you. We are happy to assist you with this process.
3. Identify your prospective franchisee and begin your background check on the prospect.
4. Negotiate and document a Letter of Intent that contains the material terms of the new deal. You will normally require a deposit against the initial development fee on the signing of the LOI.
5. Retain local counsel to review your proposed form of agreement to revise the agreement to ensure that it complies with all applicable local laws.
6. Negotiate with your prospective franchisee on any changes to your form of agreement. Once all terms are negotiated, you will finalize the agreement and proceed with signing.
7. Once your agreement is fully signed, you will want to proceed with registering your trademarks in the country, if you don’t already have the marks registered. If you have a large budget for your international expansion, you should ideally move this step up as early as you can afford, even up to step 2 if possible.
8. Once all of the above is accomplished, the real work begins. You now need to arrange for training, import of products or ingredients, site selection assistance, site development assistance, marketing assistance, and all of the other support services that franchisors normally provide.

Summary

With proper planning, international expansion of your franchise system can be an exciting new challenge that brings you many rewards. At FSB Legal, our attorneys are experienced in international franchising and have completed deals in over 35 countries. We are happy to help you begin this journey.