Franchising.

Franchises Opening World of Opportunity for Tomorrow's Entrepreneurs

You'd never know it to look at today's headlines, but not everyone in America has gone dotty over anything.com. Savvy investors, especially the ones who recognize the opportunities provided by the nation's emerging markets, continue to find almost unlimited entrepreneurial opportunities in the franchised business sector.

Take Washington, D.C.-area businessman Calvin Johnson, for example. When he opened his first Athlete's Foot franchise in an inner city neighborhood three years ago, only 2 percent of the company's franchisees were African Americans. That number has now grown to 12 percent, including inner-city franchisees whose stores are some of the most profitable in the 700-store chain.

"Franchising is not for everyone," cautions Don DeBolt, president of the International Franchise Association (IFA), a global trade group representing a diverse membership of franchisees, franchisors and suppliers. "'But, franchising has provided a good lifestyle for hundreds of thousands of people."

Franchise companies are rapidly adopting the philosophy that doing business in emerging markets is great business. According to IFA Vice President of Public Affairs and Emerging Markets, Debbie A. Smith, diversity has become a business imperative of franchise company executives. The rapid expansion of Hispanic, Asian and other immigrant populations has made minorities an attractive consumer class with increased buying power not only to spend on goods and services, but on owning their own franchise.

"Thirty percent of our customers and a lot of our employees belong to ethnic groups," said Carl McManus, director of franchise minority development for Taco Bell. "We feel it's time to diversify ownership, too."

IFA has sponsored franchise trade delegations in cities which have exceptional potential for minority business development including Baltimore, Brooklyn, Charlotte, N.C., Miami, Richmond, Va., San Diego and Washington, D.C. Future events are planned in Atlanta, Dallas, New Orleans and New York.

"Historically, minorities have brought less equity to the table because fewer owned homes or had relatives in business," said delegation participant Howie Hodges II, senior vice president of small-business lending with Bank of America. "Now federal, state and private programs are available to level that out."

Hodges says the pairing of franchising with economic development provides an excellent opportunity for interested minorities. Franchising, he says, gives a new business owner a proven system and the support he or she needs to succeed. "The loans we've made to franchisees have the lowest delinquency rate in our portfolio," he says.

In addition, the shift toward a service-oriented economy has led to the development of a number of franchise concepts that require little overhead or can be run from a home office. "A barrier to self employment, particularly among minorities, is finding the capital to get started," said PepsiCo Vice President of Community Relations, Ron Harrison. "But, nearly half of the franchise companies have initial investment levels below $100,000."

Minorities, in some systems, have become majorities. Jani-King actively recruits minorities to its low-investment commercial cleaning businesses, which most franchisees run from their homes. Half Of the franchisees of Just-a-Buck, a retail chain in which all items cost one dollar, are from minority groups. And 55 percent of the economy hotel rooms in the U.S. are owned by Asian-American franchisees.

Smith says, "We finally have all the pieces we need to build a strong minority franchise community: willing lenders, committed franchisors and a business climate that encourages inclusion. We must work to connect the pieces and provide this opportunity for business ownership to everyone on an equal basis."

Choice Hotels

Choice Hotels International, one of the world's largest hotel companies, franchises more than 4,000 hotels, inns, all-suite hotels and resorts open or under development in 33 countries under the brand names of Comfort, Quality, Clarion, Sleep, MainStay Suites, Econo Lodge and Rodeway Inn. Entrepreneur magazine has named Choice the number one lodging franchisor for several consecutive years in the publication's annual "Franchise 500" ranking.

Choice offers a host of support and training services to help give franchisees an edge on today's competition. Among them is the "Total Lodging by Choice" owner and general manager training program which is conducted in The Learning Center, a $2.5 million, 11,000 square foot state-of-the-art educational facility located at the Choice Centre complex in Silver Spring, Maryland. The week long program, which is mandatory for all new franchisees entering the Choice system, incorporates a case-study methodology and offers in depth courses on marketing, reservations, operations, staffing, guest relations and budgeting. The program is designed to help franchisees leverage Choice's proven business systems, proprietary technology and strategic partnerships to succeed in today's competitive marketplace.

If you are interested in franchising with a proven leader, call 800-547-0007 to learn more.

Churchs

THE CHURCHS CRAVE FOR FRANCHISE SUCCESS

In case you haven't heard, Southern-fried chicken is a crave item ...

And among franchises like Churchs Chicken[R], an AFC Enterprises company, the chicken category is growing like crazy.

For nearly 50 years, Churchs has known that its "homemade" Southern-fried chicken is a winning concept. Today, Churchs has over 1,500 restaurants in 28 states and nine countries worldwide. With more than $820 million in sales during 1999, the world's second largest (in terms of number of restaurants) quick service (QSR) chicken restaurant chain touts a menu that is sure to satisfy. Unique side items include fried okra, corn on the cob, Churchs signature Honey-Butter biscuits and jalapeno peppers.

"We've set our sights on becoming the World's Franchisor of Choice. Churchs will continue to create opportunities that benefit the people and communities who are at the heart of our customer base," said Hala Moddelmog, Churchs president and the only female head of a worldwide QSR. Simply put, Churchs is working hard to expand its franchise ownership to include more women and minorities. The company is already proud that a third of its franchises are minority-owned.

THE CHURCHS BUSINESS SUPPORT CENTER

As one of the fastest growing franchises, Churchs stands out by offering a world-class business support center. It is designed to provide franchise partners with ongoing, personalized assistance from the initial phases of development and construction to the grand opening of a restaurant. Churchs Business Support Center is also backed by field-based specialists who are experts in the day-to-day operations and marketing of its restaurants.

With the continued support of its parent company, AFC Enterprises, Churchs will continue to build brand equity by expanding franchise ownerships and sharing success with the people who make a difference.

Coverall 

THE COVERALL[R] BUSINESS MODEL: A PROVEN FORMULA FOR PROMOTING SUCCESS

Coverall[R] has developed an unrivaled three-phase for promoting entrepreneurial success by carefully analyzing successful business prototypes then modifying them to fit the unique needs of the commercial cleaning industry.

The Start-Up Phase contains a comprehensive training program, covering virtually all aspects of the commercial cleaning business and is designed so that even persons with little or no experience in the cleaning industry can learn and succeed with a Coverall[R] franchise. The training also teaches how to manage a business and follow environmental, safety and security procedures.

Start-Up Phase highlights:

* beginning equipment package

* initial customer base

* available financing options

The Operating Phase builds on the solid relationship between Coverall[R] and its franchisees. With Coverall[R] providing guidance and support, franchisees are able to focus on their business, enabling them to provide top-quality, superior work, while avoiding many of the pitfalls that can plague independent small business owners.

Operating Phase highlights:

* customer relations

* billing and collection

* cash flow protection

With the groundwork in place, the growth potential of a Coverall[R] franchise is virtually limitless. During the Growth Phase franchisees can count on the strength and reputation of Coverall[R] to help them expand their business.

Growth Phase highlights:

* national marketing support

* advanced and specialized training for unique services and niche markets.

"I was amazed how the Coverall[R] business model is designed so that Franchise Owners can easily build a business. I could see right from the start that being a Coverall[R] Franchise Owner provided me with the potential to grow my business as much as I wanted" Kaur Singh, Franchise Owner--Stockton, CA.

Denny's

As the leading family dining chain, Denny's has been aggressively growing through franchising over the past several years. In 1999, the company experienced record franchise growth with the opening of 82 new franchise-owned restaurants. Of those new Denny's restaurants, approximately 40 percent were developed by minority franchisees.

Today, African Americans represent 15 percent of Denny's franchise system. As entrepreneurs, these franchisees like Leighton Hull of Golden West Foods Corporation, are creating a wealth of business and job opportunities in their local communities. Denny's, in partnership with entrepreneurs like Hull, is creating economic opportunities for African American owned franchise restaurants. Denny's spent nearly $300 million in goods and services with African American businesses over the past three years.

According to Jim Lyons, Denny's chief franchising and development officer, the company is continually seeking qualified franchise candidates. "Denny's offers a comprehensive program for franchisees that includes initial training for restaurant management personnel, assistance in the opening of new restaurants, advertising support and on-going field support," Lyons explains.

Denny's commitment to diversity has been recognized by national civil rights leaders and the news media. For two consecutive years, Fortune magazine has ranked Denny's parent company among the top 10 companies in the United States for minorities. As evidence of the commitment, every person employed by Denny's receives training that emphasizes respect for racial and cultural differences and is encouraged to value and celebrate those differences.

"Denny's sincere focus on diversifying its system to mirror a diverse customer base has only enhanced the tremendous equity already present in the brand," Hull says.

Franchise Solutions

"So many opportunities to choose from.., which one is right for you? Since 1993, Franchise Solutions--www.franchisesolutions.com--has been making it easier for potential business owners like you to find the business made for you.

Food, Service, Retail--what business makes sense for you? Franchise Solutions is your resource to explore hundreds of today's best franchise and business opportunities.

Create your own personalized list of franchises-matched to your background, interests, and investment level. Check out company previews and request information from companies of interest. Link to hundreds of sites from our directory. Search for companies by category or investment level. Share ideas and solve problems with other business buyers.

One-stop shopping for franchise and business opportunity information--great FREE services at your fingertips ... www.franchisesolutions.com Find the business that was made for you.

Golden Coral

GOLDEN CORRAL PROVIDES FRANCHISEES WITH TOOLS, SPECIFICATIONS, SUPPORT STRUCTURE TO IMPLEMENT RESTAURANT OPERATIONS.

"When franchisees sign the franchise agreement, what they get in return is the Golden Corral Operating System," says Kress Muenzmay, executive vice president of operations.

"We in Operations provide the tools, the specifications and an entire support structure to implement the Golden Corral Operating System."

Golden Corral brings support close to individual franchisees by dividing Operations into four geographic divisions, each of which is directed by a president.

Division presidents work side by side with franchisees as though their own money were invested in the business. In a real sense, it is--the compensation of division presidents is heavily influenced by the success of their franchisees.

When a franchisee site has corporate approval, the division president sets his organization in motion. The division training director and division director of staffing begin an on-going consulting relationship keyed to the new restaurant's opening date. The training director schedules the franchisee for a three-phase 12-week training program, follows the franchisee's progress and recommends future management development sessions.

The marketing director works with the franchisee to develop grand opening and local store marketing programs. He and the division president meet annually with the franchisee to develop a business plan.

The support provided for the opening of a franchisee's first new restaurant is key to its future success. An "A-Team" of certified and experienced co-workers for other Golden Corrals help open the new restaurant and train the new staff during the launch period. This group of up to 20 specially trained managers and co-workers remains with the new Golden Corral for about two weeks, or until operations are running smoothly.

Jackson Hewitt 

Jackson Hewitt Tax Service is the second largest and fastest growing national tax preparation service with nearly 3,000 locations across the U.S. The company provides full service individual federal and state tax preparation as well as various bank products for customer convenience. Jackson Hewitt is a leader and pioneer in electronic filing of tax returns which ensures increased accuracy and a faster refund. The company was rated the #3 overall franchise company for year 2000 by Entrepreneur magazine, which also rated Jackson Hewitt the #1 tax service franchise in each of the last six years. And with numerous changes to the tax code over recent years, Jackson Hewitt's future looks bright as the demand for tax professionals remains high.

Jackson Hewitt franchisees receive marketing, operations and training support along with a highly rated, proprietary tax preparation software program. Marketing support is provided through powerful national, regional and local marketing efforts including television, radio, outdoor and direct marketing campaigns. Franchisees also benefit from a toll-free nationwide office locator system, an external website that features a Tax Tip Hotline and an intranet site for consistent internal communication. Operational support is provided through field based regional directors and a full staff of franchise service managers. Training begins with a week-long Business Management Training program that is required for all new franchisees and continues with on-going technical, employee recruitment and business planning support.

Jackson Hewitt is a subsidiary of Cendant Corporation, a global provider of consumer and business services. That relationship provides Jackson Hewitt franchisees with national buying power and extensive cross marketing opportunities with other highly respected brands.

Mail Boxes Etc.

Mail Boxes Etc. (MBE), the leading franchisor of business support services, encourages existing MBE franchisees to become multiple franchise owners (MFO) by offering them a variety of incentives, such as franchise fee discounts, territory development opportunities and educational training programs.

MBE's franchise sales program includes an incentive plan that promotes multiple franchise ownership. This plan gives potential MBE multiple franchisees a discount on franchise fees--a discount not available to first-time MBE franchise buyers. Site location is an integral part of the entire franchise sales process, and is especially crucial when someone is seeking to buy multiple units. As such, MBE offers a targeted site development program designed to allow MFOs to efficiently manage their multiple centers.

MBE also provides MFOs with an educational training program to help them with the transition from single to multiple franchise ownership. The intensive, interactive training program is held at the MBE Home Office in San Diego. The week-long training course focuses on fundamental business management principles that apply in every MFO situation. Some of the program objectives include: to educate franchisees about the differences in managing a single-location business versus a multiple-location business; to identify the general business management principles required to manage a multiple-location business; and to provide ideas and information to support MFOs in putting those principles to work in their MBE business.

MBE has been successful in promoting and supporting multiple franchise ownership throughout its twenty-year history. Since the start-up costs for an MBE franchise are relatively low compared to other leading franchises, many MBE franchisees have taken advantage of the benefits of becoming an MFO. In fact, approximately one-third of the MBE network are multiple center owners.

At MBE, we are making business easier for our customers and for our franchisees.

Meineke

Maineke's Success Fast Track

As members of today's largest discount muffler and brake franchise, Meineke's nearly 900 store owners are charging into the new century with a spirit of both accomplishment and expectation.

This chainwide enthusiasm is reflected in the slogan: "Meineke--Our commitment to you begins with me." These words are especially relevant to new franchisees because the promise behind the phrase is one of support and guidance--from each and every Team Meineke member.

From the moment a new dealer joins the chain, he or she receives assistance in every phase of business from locating a high-traffic store location and ordering equipment to managing cash flow and developing a customized business plan.

These and other components of the Meineke System are all geared toward helping each store owner to open smoothly and build momentum using time-proven business and operational procedures.

A prime example is Meineke's staff of real estate and construction specialists who analyze and create market layouts for proposed store placement, then utilize advanced AutoCAD technology to generate building and equipment plans.

New Meineke franchisees also undertake a four-week training program of hands-on technical, operational and sales instruction. Further support comes from our staff of in-house and field-based Operations Managers. Each store is assigned a specific field representative to assist in getting the shop open and operational, then stands ready with ongoing support in day-to-day operations.

To this add Meineke's instant name recognition, multi-media advertising, and broad-based purchasing power to form a truly solid franchise opportunity. For those eager to attain their personal goals, a Meineke franchise can represent a fast track to alter-market success.

Merry Maids

When a Merry Maids franchise owner is ready to consider expansion, he or she is only a phone call away from an extensive array of resources provided by the Merry Maids home office. From a three-hour conference call to a personal visit to the franchise location, Merry Maids is very committed to seeing its franchises grow.

Stephen Fisher, director of franchise support, said, "We have a guiding philosophy that drives the home office support staff and that is to be a business advocate to the franchisees. We feel if we can create a good, solid relationship between the support staff and the franchisee, then we can help the franchise grow."

One of the most powerful tools the Merry Maids support staff uses is an operations visit. Fisher explained, "An operations visit is designed to help a franchise know its strengths and challenges. We help a franchise evaluate itself so that it can tackle any obstacles that might hinder growth. Once those challenges are met, we look for other nearby territories that might be good expansion areas for a franchise."

"We like to encourage especially successful franchises to consider expansion, or they may make the initial contact to inquire about it," Fisher said. "Either way, we are ready to work closely with the franchisee to ensure proper planning and execution, and to experience the greatest gain from the expansion."

In either instance, the franchisee is fully prepared by the home office to take advantage of an expansion situation. Throughout all stages of expansion, a franchisee is backed by a full support staff to make the process a smooth and successful one.

SUBWAY[R]

SUBWAY[R] Restaurants, the world's largest submarine sandwich franchise, seeks to bolster minority ownership in communities. With more than 14,200 restaurants in 72 countries, SUBWAY[R] offers a well-structured franchise program with access to the expertise that comes from 35 years of helping entrepreneurs build and succeed in their own business.

SUBWAY[R]'s commitment to minority franchisees covers financial assistance by financing 90% of the franchise fee, $10,000 for qualified minority prospects, and about $40,000 worth of equipment leasing. From step one throughout the entire franchise process, SUBWAY[R] provides training and assistance in all areas of operation.

"We are seeking candidates with good common business sense, the ability to work within a structured franchise system and a willingness to be involved in the day-to-day operations. We want hands-on owner operators," says Don Fertman, SUBWAY[R]'s director of franchise sales.

The company is in the process of rolling out an extensive strategic plan to help its franchisees stay competitive and reach out to new customers in the year 2000 and beyond. As part of the continuous plan to improve product and satisfy customers, SUBWAY[R] has undergone a major re-formulation of its freshly baked white and wheat bread program, which is now underway throughout the chain.

Tricon Global Restaurants

Thornton Edwards, President and CEO of TEC Foods, Inc., in Pontiac, MI, is a Taco Bell franchisee who's grown his system to 12 units in only 1 1/2 years--and he's just getting started. Taco Bell is part of Tricon Global Restaurants, Inc., headquartered in Louisville, KY, which is also the parent company of Pizza Hut and KFC. In addition to his Taco Bell units, Edwards owns and operates two Shell Oil stations and has been approved as a KFC and Pizza Hut franchisee, which gives him the unique opportunity to explore co-branding options.

Edwards always knew he was destined to be an entrepreneur. After earning an MBA, he headed for corporate America where he spent 17 highly successful years in management before branching out on his own. "Tricon actively seeks to attract minority franchisees who can grow within our system. Thornton's impressive track record, and his passion for people and for our industry make him an ideal candidate," says Carl McManus, Director of Franchise Recruitment and Minority Development.

Edwards says the secret to running a successful multi-unit operation is attracting high quality talent and then letting go of the reins. "You have to be able to manage through your people," Edwards advises. "Train, develop, and reward them, help them create a vision for their futures, and they'll help you grow. I've been able to get some good talent in high level positions because I believe in my people and I'm willing to extend an equity position in the company to folks who are really good. You build a great business by building a great organization."

Edwards says an important outgrowth of his success is being able to put money back into the community and support local educational institutions. He's committed to being a mentor and a positive role model and hopes to encourage future entrepreneurs.

Val-Pak

Val-Pak is the company that pioneered the local cooperative direct mail industry over 30 years ago. Headquarters in Largo, Florida, Val-Pak has a network of more than 244 franchises in the United States, Canada and Puerto Rico. Today the company prints and mails over 15 billion coupons per year to more than 53 million unduplicated addresses throughout North America. Val-Pak franchise owners operate their service business with no inventory. As a franchise owner, you and/or your sales staff will make sales calls on local business owners, offering them our proven direct mail system. Val-Pak's unique Neighborhood Trade Area[R] system allows advertisers to define their target customers and pinpoint them geo-demographically. Val-Pak provides a full-range of direct mail marketing services, from ad concept to graphic design, top quality, printing and distribution services. The company's outstanding customer service begins with the Val-Pak sales force, which has been named one of the nation's top sales forces by Sales & Marketing Management. For franchise information, call Dave Elmer at 1-800-237-6266 Ext. 3548