DailyFranchiseNews.com

Southern Charm

Breakfast on one. Lunch on two. Hut hut!

The Palladium-Item reported Huddle House aims to build in Richmond, Indiana by late fall, its officials said Tuesday. The Atlanta-based company is looking for a franchisee before it commits to setting a restaurant location and opening date, said Debra Webb, who is the company's franchise development director in the Midwest. The Richmond location will be the fourth Huddle House in the state; the company has more than 400 restaurants across the nation.

"We have identified a couple good sites in the area and the challenge is finding someone to be a restaurateur," Webb said. "This is not just a sit-down, wait-and-see feeling. We have gone through and done demographics studies throughout the state and Richmond fits our profile in what we look for."

Webb said the Huddle House company profile looks for cities and towns that either have between 10,000 to 25,000 people or places such as Richmond, which are a little larger. Webb said that the company tries to stay out of major metropolitan areas but will open restaurants on the outskirts.

"We have units in Indianapolis but they are outside the city," she said. The company has received interest from about four or five parties interested in owning the Huddle House after running advertisements in various publications in the area, Webb said. She said once an owner has been selected, the restaurant could be opened within 90 days of the announcement.

Shaping Her Future

Some people start a business to escape the corporate world while others do so to follow their life’s dream. Nombuso Radebe, however, embarked on her first entrepreneurial journey to save a life.

Sowetan reported Radebe is the owner of Shapes for Women gym, the first black franchisee of the female-only gym and a modern-day superhero.

“My mother, Pumla, who is also my business partner, was very sick from bronchitis and pneumonia. The doctor advised her to join a gym to help speed up her recovery. We took the idea a step further and opened our own gym when we heard about the Shapes for Women franchise. I thought what better place to get a workout than at your own gym,” she said.

The 25-year-old former human resources assistant is certain that her gym will be a success, and is not threatened by established gyms in the area. Radebe said she had always wanted to help women in some way and the opening of the gym had helped her to fulfill that dream. “This is hopefully the first of many branches that I will own. It feels fantastic to be the first black owner of the franchise.”

The said the gym, as with all the other franchises, lived by what they called three M’s: no men, no mirrors, and no make-up.

“The women who come into our gym are treated as individuals and not as numbers, and we help them to formulate a workout that fits their goal of either weight loss, fitness, or just wanting to tone their bodies,” said Radebe.

A Pretty Picture Indeed

Big-box stores like Home Depot may seem to have it all in terms of selection, but when you can’t find an orange apron-wearing employee to assist you for hours on end, that aforementioned selection is as useful as wings on an elephant.

The Hendricks County Flyer reported CertaPro Painters franchisee Matt Rolfson is putting an end to this impersonal approach by opening the first ever “paint-only” design center on May 1st. The 16,600-square-foot facility will serve as a brainstorming site for private and commercial consumers in the process of redecorating their homes and offices. It will also feature floor models in a variety color combinations aimed for offices, bedrooms, bathrooms and playrooms. There is also an on-site training facility for the local company’s 300-plus painters to hone their skills in sanding, caulking, and painting. Rolfsen added that the CertaPro design center will also offer its conference room as a meeting place for area non-profit organizations to have business functions at no charge.

“We’ve had the vision of a training center for four years now and it has been fun to see it come together,” Rolfson said, adding that home remodeling has become even more of a trend as the housing market continues to stall. “Painting is one of the most economically friendly ways to liven up and freshen up the interior and exterior of a home and for businesses it’s important because they need to stay fresh in a competitive environment. If they are a blank page and have no idea than we can bring them in and give them one. Our purpose is to inspire but it’s also very interactive. People can actually bring in pieces of fabric see it under the same lighting that they have in their home.”

The CertaPro center will be open to the public and its patrons will also be permitted to bring photos of theirs homes to virtually make over and display on a 50-inch flat-screen television. Interestingly, no actual sales occur at the design center. Rolfsen said that the center is intended to be more of a brainstorming source rather than a sales shop.

“It’s very low pressure and basically a value add to our customers,” he said. “They are simply here to get inspired.”

Be Aggressive, B-E Aggressive

How does a business accelerate their growth beyond what their own capital allows at a time when tight credit and food inflation has many customers curtailing spending? Through franchising, of course.

CNNMoney.com reported two Colorado-based fast-casual restaurant groups are betting that aggressive franchising will accelerate their growth beyond what their own capital allows at a time when tight credit and food inflation has many customers curtailing spending.

Good Times Restaurants Inc., based in Golden, wants to hasten its growth outside Colorado by franchising. About half its 52 stores are franchised, but CEO Boyd Hoback hopes to boost that percentage to 70 percent in five years. The chain hopes to have 100 restaurants overall by 2010.

Good Times started in 1987 as a double drive-through in Boulder selling burgers and fries with an emphasis on quality, not price. Today, the 52-restaurant chain includes stores with plenty of tables for customers. Its menu has expanded to include frozen custards and chicken. It even has a sub-dollar slider to compete with other restaurants' dollar menus.

Hoback and Jim DeBolt, vice president of franchise development for Good Times, said it was too early to tell how the weak credit market might affect franchise growth - but that it hasn't hurt so far. Hoback expects mid-single-digit same-store sales increases in 2008. The company plans to open as many as eight company-owned and joint venture stores this year, and it's focusing on smaller markets where it can quickly build brand recognition in college towns like Brookings, S.D. Good Times also is acquiring real estate and lowering investments for potential franchisees. It expects franchisees to have a net worth of at least $600,000 with liquid assets of at least $250,000.

"We'd like to get on the radar," Hoback said. "Our goal is not to be a national chain. We'd like to be a solid regional chain."

Financing Your Future

When two entities enter into an agreement, it’s expected that one will do the work and the other will pay for said work. When one party doesn’t hold up their end of the bargain, however, that’s when the problems begin.

The National Post reported if there’s one phrase all small business owners and contractors cringe at hearing, it’s “the check’s in the mail.” Even when dealing with household corporate names, delayed payments are surprisingly common as head offices decide contractors or vendors can wait another 30, 60, or even 90 days for whatever reason. It turns out companies that provide interim financing to these struggling small business owners by purchasing their creditworthy, outstanding invoices -- minus a fee -- comprise a thriving, if little-known, global industry.

It's called factoring and it's worth an estimated $1-trillion a year worldwide, with $100-billion of that in the United States and about $4-billion in Canada, according to Factors Chain International, a global network of factoring companies operating internationally, and the industry is set to grow again in light of current instability in U.S. markets related to credit lending practices among major lenders such as banks.

"A client that comes to us has capacity to grow their business, but are limited by the financial resources," says Brian Birnbaum, founder of Toronto-based Liquid Capital Corp. "Our business really appeals to service sector companies because they have a great deal of payroll to meet on an on going basis." Birnbaum and his partners, Sol Roter and Barnett Gordon, launched Liquid Capital in 1999 after spending years in related financial services. The company now has 25 franchises spread across Canada and 38 in the United States after entering that market two years ago. Liquid Capital is on a major expansion kick with plans to open 25 to 50 more U.S. locations this year and 10 in Canada, building to 50 as market conditions permit.

Sorry, Dave

April 24th marked a dark day for Wendy Thomas: it was the day her namesake restaurant chain was sold.

The Columbus Dispatch reported Triarc Cos., the parent company of Arby’s, has acquired Dublin, Ohio-based Wendy’s. Wendy's signed a merger agreement with Triarc Cos., led by billionaire investor Nelson Peltz, ending an ordeal that began in 2005 when Peltz took a large stake in the company and started pushing for change. Already agreed upon by the boards of directors of both companies, the $2.3 billion deal awaits shareholder approval and is expected to close in the second half of the year.

Company namesake Wendy Thomas, daughter of founder Dave Thomas, called the outcome a "huge, huge disappointment." Thomas, her three sisters and her mother had been pulling for J. David Karam, a franchisee from Upper Arlington who had joined with two private-equity firms to bid for the company. But the deal with Triarc was sealed at the eleventh hour, said Karam, who thought he had an agreement sewed up. He and his partners had received an endorsement from the Wendy's special committee handling the process and were "hours away" from a vote by the board of directors, he said. Peltz then began "lobbing in bids one after another" until he found one that the board liked, Karam said.

"It's a sad day for Columbus," Karam said.

A Not So Cuddly Report

For a business offering a product that most children get “beary” excited about, the numbers behind Build-A-Bear Workshop aren’t so loveable.

St. Louis Post-Dispatch reported Build-A-Bear Workshop Inc. reported that North American same-store sales continued their downward spiral during the first quarter, while net income fell 21 percent. However, its shares rose slightly as financial results were better than analysts expected.

The stuffed animal company posted earnings of 32 cents per share. Analysts on average had expected the company to earn 27 cents a share , according to Reuters Estimates. The quarterly results were "satisfactory," Maxine Clark, chief executive, told analysts during a telephone conference. "That doesn't mean we are pleased." North American same-store sales, a key measurement of a retailer's performance, declined 13.1 percent compared to a fall of 6.9 percent a year ago. However, Clark said the company is making significant progress in European operations, where same store sales rose 14.5 percent. This is the first time Build-A-Bear has reported this figure for European operations. Total revenue rose 6 percent, however, they were fueled by new store openings, European operations and franchising.

The company plans to slow new store growth in 2008 compared to last year. It has slated 25 new company-owned stores for this year, with 20 in North America and five in Europe. In 2007, it opened 39 new stores in North America and 11 in Europe.

Wings Over Looks to Land in Athens

Watch out, Chick-fil-A..another chicken chain is poised to spread its wings in Georgia. 

The Athens Banner-Herald reported Wings Over plans to open locations throughout Athens over the next two years and the company actively is seeking qualified franchisees in the area. In addition to its chicken wing menu, Wings Over offers St. Louis-style ribs, fried or broiled chicken sandwiches and wraps, choice beef hamburgers, crispy fries and real onion rings.

Wings Over offers a comprehensive training program in franchising with classroom and hands-on instruction provided during a 30-day program at the Wings Over corporate-operated store and training center in Springfield, Massachusetts. In addition, 10 days of on-site training and assistance - including training of hourly employees - is provided at the franchisee's location.

Get Ready, Get Set, Get Tossed!

To anyone that’s ever said salad is just an appetizer or diet food, be prepared to eat your words and embrace your inner chef.

Fast Casual reported in celebration of its 10-year anniversary, Tossed is inviting its customers to put on their chef’s caps and test their culinary prowess with its first national salad recipe contest. During National Salad Month, May 1-31, 2008, customers are encouraged to submit their original, unpublished recipe for a chance to have their salad featured at Tossed locations across the country. Additionally, one winner per store will be selected to receive a catered meal for 10 people from their local Tossed restaurant.

Tossed also is continuing to expand and grow its catering program. Tossed Catering offers this service in three options — the Full Toss, the Quick Toss and the Half Toss — which features an assortment of salads, crepes, sandwiches and desserts. Tossed has a growing presence in major U.S. markets such as Houston, Atlanta, Boston, Indianapolis, South Florida and Northern California. Conceived in 1997 by chef and restaurant industry veteran Marc Meisel, the first Tossed opened in New York City in July 1998. The chain experienced 300 percent growth in 2007 and has 64 locations in various stages of development, according to company officials.

Ferrari Franchises

For anyone that’s ever seen a Ferrari in action, two thoughts usually come to mind: why don’t I have one and man, those things are fast. The car maker’s retail efforts will mirror its speed, shifting into high gear with its most recent franchising agreement.

Reuters reported Ferrari plans to open a store in London this autumn, the latest to join a lucrative retail network that stretches the globe. The company has signed a franchising agreement with Italian retail group Percassi to open a two-level store on Regent Street in Milan. Selling everything from caps to sunglasses to model cars with the prancing horse logo, the stores have proven to be a success since Ferrari opened its first one in Italy in 2002. Apart from the one in London, Ferrari has 20 stores in cities including Beijing, Las Vegas, and Singapore.

Rival Lamborghini is hoping to have the same retail success with its brand when it opens its first store in Las Vegas this spring.