DailyFranchiseNews.com

Happy Thanksgiving from the DFN Team!

We'll be off for the next few days eating exorbitant amounts of food and partaking in excessive family time. The DailyFranchiseNews team wishes you all a very happy holiday; we'll return to our regularly-scheduled blogging on December 2nd. Enjoy Thanksgiving, everyone!

Giving is Good!

‘Tis the season for giving and this next story proves that more than a few business owners have adopted that mantra as their own.

The Wall Street Journal’s Independent Street blog reported that according to a recent American Express survey, three-quarters of small business owners said they donate a percentage of their profits to charity, with 5 percent of small firms donating more than 10 percent. Faced with a tough economy and a strained giving climate, some small firms are making their relationships with area nonprofits work harder by creating strategies where both parties make money. Norm and Mary Jo Lorentz, the owners of three Cousins Subs shops in Racine, Wisconsin, are a perfect example: When they saw sales start to slow in September and October, they ramped up their fund-raising partnerships with schools and church groups in the Racine community that needed their help.

The Lorentzes started offering a new product – a smaller Cousins sub sandwich called the Cup ‘o Sub that nonprofits can purchase at a discount and then resell at a higher price at fund-raising events. This approach brings in more sales and new customers for the sub shop and charities keep the proceeds – about $1.50 a sandwich. Some schools have made up to $500 in three hours, Norm says, and since September, sandwich sales at events have raised $1,500 for area schools. Cousins also provides schools and nonprofits with promotional materials such as a banner and signs to publicize the event. “It’s a win-win situation,” Norm says. “Plus, it gets our name out in the community and brings in new customers.

Rick Clark, the owner of Handyman Matters in Hendersonville, North Carolina, is also giving back to his local community by donating construction and remodeling work on the homes of senior citizens. Clark says this effort “brings our name out, brings businesses in” and serves as a way to show customers “we run an ethical business.”

Making It Big While Making a Difference

For as long as they could remember, Rob Nash and Joe Luis wanted nothing more than to be professional baseball players. While that dream didn’t pan out exactly according to their plan, their alternate career is nothing to sneeze at.

Entrepreneur.com reported that Nash, 40, and Luis, 41, grew up together and both worked hard through high school and college to reach their dream. Although neither one made it to the big leagues, they were both good enough to play in the minor leagues but after several years, varying circumstances led both Nash and Luis to leave professional baseball. Despite leaving the arena they always dreamed of playing in, Nash and Luis still shared a passion for baseball and continued to host clinics and give private coaching sessions. It didn't take long for the two to realize that something was missing for kids today: a safe and structured environment to play in.

"When we were growing up, it was 'go to the ball field at 8 a.m. and make sure you're home when the streetlights come on.' That just doesn't happen too much anymore," Nash says. "We quickly found out that parents will spend money for their kids to give them a greater advantage skill-wise or give them a safe place to play."

Nash and Luis started Extra Innings, an indoor baseball and softball training center based in Middleton, Mass., in 1996. Kids loved the structured learning environment and nice equipment and facilities, and parents loved the price. Nash and Luis began franchising their business in 2004 and now have close to 40 franchises across the country and system-wide sales of close to $15 million.

Nash and Luis won’t argue that the success of their venture is wonderful but biggest payoff for them is the ability to teach kids the same skills that helped them become successful. Many of their students have become stars in high school, college and beyond, including a former student who made his major-league debut this spring with the San Diego Padres.

Photo: Joe Luis (left) and Rob Nash (right)

70 is the New 50

At 71, Steve Bursten starts work before 9 a.m. and ends well after 5 p.m. The Washington Examiner recently sat down with the CEO of Exciting Windows! – the company he started in 2004 with co-founder and president Steve Wishnow – to see just what makes him tick.

What drives you now as an entrepreneur, even at 71?
The pleasure of seeing people succeed and do well with a package I’ve brought to them. The Internet has changed everything, and I want to be a part of it before the end of this life.

What advice would you give to older people who are looking to change careers or start up a business?
I would say to someone who’s coming into their 60s that getting into a new business is as thrilling as getting a new job, or a new wife. It’s really energizing. Many people are afraid to get into their own business — they want the security of being in a corporate framework. But the only real security is being able to make money because of initiative.

How’d you get your start in the business?
I’ve been in the business since 1960. I find the field is one where the customers love what they’re doing — it’s a very exciting industry. I had actually retired, but the time is ripe for a new kind of business.

What’s the deal with the ColorVan?
I actually invented the ColorVan in 1973 — the first one in history. I’ve brought that back as ExciteVan. It’s a traveling billboard — it works like television. It creates awareness just by driving around. It’s an awareness vehicle. Double entendre there.

Are you ever going to retire?
I think by 75, I’ll try to cut back to 40 hours a week — a normal workweek. My children are grown — it’s kind of what drives a painter or an artist or a writer. I’m driven by creativity.

But is 70 the new 50?
Absolutely.

Photo: Steve Bursten (left) with Steve Wishnow (right)

Four Fixes…Fast!

Even in down economy, homeowners are still on track to spend over $170 billion remodeling their homes by the end of the year. Thankfully, all of this spending doesn’t revolve around big-ticket items!

INTERIORS by Decorating Den’s Chandler, Arizona franchisee Cynthia Hammersley knows that many homeowners - both old and new - are on very tight budgets given the current economic conditions and want the biggest bang for their buck without compromising style and quality. Because of this, EVLiving.com has posted her four fast fixes that give any home an instant lift. Check them out!

Let There Be Light: Many lovely color schemes fade into drabness when under lit. Make sure to develop a lighting plan to ensure that rooms are decoratively and evenly illuminated.

Consider The Details: Don’t follow fads in decorating. Instead, choose items and styles that suit personal tastes, lifestyle and budget rather than what happens to be “hot” at any given time.

Work Your Windows: Window treatments can become the focal point of any room if both functionality and aesthetics are taken into consideration. Choose a palette that complements the room’s existing furnishings and color scheme and fabrics that are visually pleasing as well as practical for their surroundings.

Mix Things Up: Consider mixing different wood tones. In fact, mixing natural wood tones with painted wood furniture will create a very unique and harmonious look in any room.

It's All in the Name

With a name like Value Place, consumers expect just that – a place to stay that’s filled with value. The good news is that their expectations couldn’t be more spot-on.

The Naples Daily News reported Wichita-based Value Place is one of the fastest-growing hotel brands in the nation, and it’s growing in Southwest Florida. In August, the first Value Place opened in Lee County offering 129 studios, all with full kitchens. And there are plans to open more Value Places in the region: A location in eastern Collier County is in the works, with a second hotel under construction in Fort Myers; a site is also being scoped out in Bonita Springs.

The Value Place expansion comes at a tough time for the hotel industry — in Florida and around the country. Fortunately, according to Value Place Franchise Services LLC president Gina-Lynne Scharoun, “Florida has been a very good market for us. Most of our expansion has been near the Orlando area and the I-4 corridor. We have some very good franchises that are developing there, as well as our own company development. So we are excited to be bringing a presence to Florida.”

The first hotel in Fort Myers is a franchise owned by Liberty Lodging LLC, a subsidiary of Liberty Investment Properties based in Orlando. The company has plans to build more than 100 of the hotels in Florida and nine other markets. “We are the largest franchisee in the system,” said Mike Mikkelson, Liberty’s president and CEO. “Our travelers are project-oriented people. They are traveling nurses or (information technology) specialists or engineers. Occasionally, we’ll have some people who are just in-between apartments or homes. The price is just incomparable. There’s nothing like it.”

“It has not been a choice to have an economy extended-stay hotel like Value Place,” Scharoun added. “We are delivering a service and opportunity that Americans have not had.”

Wings Over to Land in Spartanburg

Wings Over is getting ready to touch down. Its destination: Spartanburg, South Carolina.

The Spartanburg Herald Journal reported that Massachusetts-based Wings Over, a national delivery and carry-out chain known for its 22 flavors of chicken wings and St. Louis-style ribs, is planning its debut in Spartanburg. The company has identified the city as one of its target markets and is looking for franchisees to open and operate locations throughout the county over the next two years.

Wings Over has 20 franchisee-owned restaurants and five corporate-owned locations in Connecticut, Massachusetts, Michigan, North Carolina, Ohio, New Jersey, New York, Pennsylvania, Vermont and Washington, D.C. The chain is hoping to open one new store per month in the coming years to reach its growth initiative goal of 60 restaurants by 2010.

“To us, there's no unobtainable number when we're talking about store sales,” said Mark Simonds, president of Wings Over. “We are not just selling our franchisees a job; we are selling them a business.”

Busy, Busy, Busy!

Looking for work? Join the club and head to your nearest staffing agency.

The Carroll County Times reported that as unemployment levels climb higher, staffing agencies have been inundated with people looking for work, but placement has grown harder. David and Laurie VanLeeuwen, owners of the newly-opened Express Employment Professionals in Owings Mills, Maryland said they’ve been flooded with people looking for jobs. The company has been interviewing about 20 people per day for placement and it has been able to place between 10 percent to 20 percent of its clients.

“Every employer needs quality workers,” David said. “Temporary and contract workers are a good fit right now because employers may not be able to commit to the long term.” He said the company has focused on pockets of strength in the Baltimore region, such as health care, data providers, accountant services and defense and aerospace technologies but he said they’re ready to help anyone.

“I’m optimistic but realistic,” he said. “This [economic downturn] came quicker [than the 1994 and 1987 recessions] but our hope is recovery and the bounce back is quicker too.” In October, the national unemployment rate hit 6.5 percent, a high not seen since March of 1994, according to U.S. Department of Labor Statistics.

The Right Decision

Scenario: High fuel costs put a damper on your trucking business…what do you do to avoid going under? If you’re Kevin Grupp and Bob Moll, you diversify.

BuffaloAtHome.com reported that rather than trying to find other opportunities in the trucking business, Grupp and Moll really thought outside of the box, and went back to their roots: As it turns out, both men worked in the restaurant and bar business when they were younger so they began researching restaurant and bar opportunities. After looking at several different food franchise opportunities, they came to one – Salsarita’s Fresh Cantina – they believed would be a winner…and it is a decision that is really paying off: People are showing up in droves.

With locations in both Buffalo and Cheektowaga, New York and a third location soon to open in Clarence, it seems that Grupp and Moll really hit on something. And they did it by thinking outside the box, and trusting themselves. Today, Grupp and Moll split their responsibilities, with Grupp managing the restaurants full time and Moll focusing on the trucking business. As fuel prices settle, the trucking business does well and with ever expanding plans for Salsarita’s restaurants, it looks like they’ll do well on that front as well.

Well done, gents!

From One Generation to Another

If Mom and Dad own a business, it’s usually assumed that their offspring will one day take over the company. Ted Hofer, however, wasn't about to map a career path based on an assumption.

Franchise Times reported that while Ted worked for the family business – Spring-Green Lawn Care – in college, he never expected the company his father, Tom, led to be handed to him on a silver platter; in fact, he even bought and operated a franchise of his own for several years. But he was impressed with what his dad was doing with the company and three years ago, Ted sold his franchises and went to work for his dad, starting a five-year process to transfer the business from one generation to the next.

"For me it was a good opportunity," said Ted, currently Spring-Green's vice president, but who will become company CEO by the fall of 2010. "I've been around Spring-Green most of my life growing up, but some exciting things started to happen. The company had a recommitment to growth."

Passing businesses from one generation to the next is far more common among franchisees than it is franchisors - but in either case it is increasingly rare these days, as the next generation seeks to establish its own identity and is less likely to carry on the family business. The Hofer family demonstrates how that transition could be done: The company has been around since 1977, and many of its top managers have been there since Ted, the 33-year-old, soon-to-be CEO, was in elementary school. And, since Ted had not been involved in the company, he had a lot to learn.