DailyFranchiseNews.com

Knoxville Gets Some Added Value

People are looking for value now more than ever. Knoxville area residents are lucky: They have to look no further than 4412 Singleton Station Road in nearby Louisville, where the newest Value Place hotel has officially opened its doors.

The Knoxville News Sentinel reported Value Place, an economy extended stay lodging chain headquartered in Wichita, Kan., plans to open five hotels in the Knoxville area by 2012. The Louisville location will be owned and operated by Evan Carzis, an architect and real estate developer, and Bill Davidson, a former principal with Foodtown Supermarkets and the founder of Pet Food Giant. Though based on the East Coast, Carzis and Donaldson own warehouses in Knoxville and felt it was a great market for the Value Place concept as well.

"We liked Value Place immediately because it fit perfectly with our backgrounds but also because it was a business addressing an underserved niche," Davidson said. "While most extended stay chains focus on higher price points and business clients with expense accounts, Value Place focuses on the guests that are picking up the tab themselves. It made a lot of sense to us," Davidson said in a statement.

Gina-Lynne Smith, franchise services president for Value Place, said investment in the Knoxville market will be $4 million to $5 million per location and that company officials will be meeting today in Knoxville with potential investors looking at purchasing Value Place franchises. "Many of our customers are business travelers, but typically our brand is for anyone who pays for lodging out of pocket. We are appealing to housing transitioners - people in transition who are relocating to a new city ahead of their families," Smith said.

Gina McKee, vice president of franchise development for Value Place, said the company is looking to locate franchises in U.S. markets similar to Wichita. "Knoxville has a lot of growth and development and we believe Knoxville has a need for the market niche we provide," McKee said.

Photo: Gina-Lynne Smith outside a Value Place property.

To Tan or Not to Tan?

By now, everyone has heard about the recent Associated Press report which deems tanning beds as deadly as arsenic and mustard gas. But what do those in this $5 billion industry have to say about it? One tells the St. Louis Post-Dispatch that he doubts the claims will hurt business.

"These reports have been coming out since I got in the business in 1984. This is very usual this time of year [but] there is no proof a tanning bed causes cancer," said Todd Beckman, chief executive officer of The Tan Company, a Fenton, Mo.-based chain with over 70 U.S. locations. He said that there isn't any way to discount the amount of time people have been exposed to natural sunlight and that there are other considerations like hereditary factors and environmental influences which should be taken into account. "We've all been outside since we were toddlers.”

Dan Humiston, president of the Washington-based Indoor Tanning Association, disputed the findings as well – so much so that the group is running a full-page ad in today's New York Post condemning the "hype" related to the article. "A sunburn is bad for you. Everybody knows not to get a sunburn. But that's a benefit of professional tanning salons," said Humiston, who lives in Buffalo, N.Y. "We reduce your risk to overexposure because we control your environment."

What are YOUR thoughts, DFN readers?

The Perfect Candidate

Roughly a quarter of a million active-duty service members transition out of the military each year but with employment opportunities fewer and farther between, many are electing to start their own businesses. For those who need a little assistance in doing so, read on. 

Military.com reported that Spring-Green Lawn Care feels veterans have the perfect skill sets to succeed as small business owners. According to company president James Young, veterans are comfortable in leadership roles and as members of larger teams, able to complete the task at hand while thinking one step ahead and 100-percent willing to keep working until the job is done right. In fact, Spring-Green CEO Tom Hofer is a retired Navy lieutenant and some of the company’s most successful franchisees are veterans, all of whom are using the experience they gained serving our country to serve their local communities. Given this seemingly perfect match, Spring-Green has been offering a grant program designed to help military veterans interested in owning a Spring-Green Lawn Care franchise since 2007. Spring-Green’s Military Assistance Program (M.A.P.) applies up to $15,000 of the initial franchise fee toward the start-up expense to make it easier for veterans to get back into the civilian workforce. Veterans who qualify for the program immediately gain Spring-Green's unwavering commitment to help each and every franchise owner achieve their business goals.

"We recognize that many veterans returning to a corporate environment may not find what they are looking for, but the Spring-Green franchise opportunity allows for freedom and flexibility for individuals who enjoy the outdoors and want to take control of their own lives," Young says. "Returning to civilian life may seem difficult but with organizations like Spring-Green that not only utilize but reward military experience, that transition can be more comfortable."

Ten of Spring-Green's 120 franchisees are military veterans and five have taken advantage of military assistance funding, such as Matt Denney. Denney served in the Navy for nearly 15 years before medically retiring in 2007. But, instead of scrolling through job search websites and going on countless interviews, Denney felt his military experience left him better suited to act as his own boss. After working mostly desk jobs in the Navy, Denney wanted the opportunity to spend more time outdoors and provide a useful service. After a little research, he found the best of both worlds in Spring-Green with the added bonus of M.A.P. He began servicing the lawn and tree care needs of residents throughout North Carolina's Pender, New Hanover and Onslow counties two years ago.

"If my time in the Navy taught me anything, it's the importance of delivering on your promises and Spring-Green adopts that mindset,” said Denney. “By doing my due diligence and weighing all of my options, I found a concept that fit my wants and needs and also recognized and rewarded my military service. If you're a veteran thinking about opening a business, franchising is definitely the way to go."

Photos from top left: Spring-Green president James Young; franchisee and Navy veteran Matt Denney.

A Great Read

Next time you fly, forego SkyMall in favor of a newspaper: You could just find your next career at 35,000 feet.

The Appeal Tribune reported it’s exactly what happened to David Yoast. A truss industry veteran with more than 15 years of experience, Yoast parted ways with his employer with no clear goal in mind but found that opportunity staring back at him on a flight to Los Angeles as he read a USA Today piece about Amramp.

"At the time I thought, 'Hmm,' and didn't think about it again," Yoast said. "About six months later I thought about it again and looked them up." Today, Yoast has a Silverton, Ore. warehouse stocked with Amramp's black metal ramp parts which provide mobility for those in wheelchairs and scooters. The ramps come in various sized sections, can be tailored to fit most applications, meet building codes, and unlike many homemade ramps, won't rot or get slick in the rain.

"The ramp has been a real help," said Salem resident Craig Orlob, who had a ramp installed in June. "It makes it a lot easier for me to get around. We had to figure out a way to get the dogs to stay in the yard, but we managed. They don't like it, but I do."

It's comments like these that give Yoast the assurance that he's made the right choice, he said. "I always wanted to do my own thing, but I never knew what to do," he said. "That is why this is so appealing. It has a proven model, yet it's still mine. It wasn't easy, but I believe in myself and will make it work."

Photo: David Yoast (left) checks a support rail for Amramp client Craig Orlob.

Franchise…Get Your Franchise!

Fred Bartliff is a man with a vision…and right now his sights are set on Jackson, Tennessee.

The Jackson Sun reported that Bartliff, the senior director of franchising for Express Employment Professionals, has announced the company has a franchise opportunity in the Jackson market.

"Now that we feel the economy is showing signs of turning, we feel Jackson would be an excellent place for an office," said Bartliff. Opening an Express office requires startup capital of $130,000 to $140,000 and a $35,000 franchise fee; three people are required to be on staff and in the office during business hours to provide temporary, full-time, professional staffing and help with writing and developing human resource projects.

Express Employment Professionals is the nation's fourth largest staffing agency and 100-percent franchised. There are currently 13 additional offices in the state of Tennessee.

Photo: Fred Bartliff (right) with Express franchisees Deidra Viney and Holly Doan.

So Hot It’s Cool!

If someone is talking about you, your ears are supposed to burn. Good thing frozen treats don’t have ears because this brand’s would be en fuego 24/7!

The Jersey City Journal reported Tasti D-Lite further expanded its empire this past weekend with its newest location in Jersey City, N.J. Owner Rob Cox, a former Wall Streeter, has been plotting for more than a year to open the location and feels the addition of Tasti D-Lite to Jersey City is the first step in mirroring Manhattan like a twin city where the franchise has several locations.

"Tasti D-Lite was a concept I knew firsthand as a consumer and given that familiarity, owning my own was the next natural step," Cox said. "I'm an ice cream lover. This product is fantastic, people are trying to stay fit these days and this gives them the best of both worlds."

Looks like the only thing left to do is grab a spoon and dig in!

Covering All Bases

Have you struck out in an attempt to grow your business? If so, step back up to the plate and let Joe Luis and Rob Nash show you how to swing for the fences.

The Boston Business Journal reported the former minor league ball players have a hit with Extra Innings, their 13-year-old indoor baseball and softball training centers. Since opening their first location in 1996, Nash and Luis have grown the company to 38 locations in 16 states and plan to add 13 new locations this year. The expansion is the result of a successful franchising program that Luis and Nash launched in 2004.

Extra Innings’ system-wide revenue grew to approximately $14.5 million in 2008 from $9.8 million in 2007. The company expects to bring in about $18.7 million this year. Their offerings range from $1 for 12 pitches to $495 for a year-long program including summer camp and five private lessons but Extra Innings currently derives about 57 percent of its revenue, on average, from its on-site pro shops. To complete the retail component, Luis and Nash launched an e-commerce site, ShopExtraInnings.com in May, which Nash predicts will generate over $1 million in 2010. “It doesn’t make sense for our customers to go elsewhere for their equipment,” said Nash. “And, we want to provide more revenue streams to ensure the success of the franchisees and further grow the system.”

As for their wildly successful franchising program, Nash said, ”We had friends and customers coming in to [our facility in] Middleton all the time, saying, ‘What a great idea. Teach me how to do this.’ So we thought, we could probably teach people how to do this and develop some buying power with vendors and further develop our operational systems. Jim Wolff, an Extra Innings franchisee in Indianapolis, said that the Extra Innings team has been with him every step of the way – a support system responsible for all locations’ past, present and future success.

Photos from top left: Joe Luis; Rob Nash.

Taylor Swift is in LOVE...with Tasti D-Lite!

Tasti D-Lite has attracted quite the following – from stay-at-home moms to CEOs to celebrities – that continues to increase with every new location the company opens. Case in point: Taylor Swift. Last night, the country singer, who previously said Tasti D-Lite was one of her favorite parts about visiting New York City, tweeted her excitement over a Tasti shop’s upcoming opening in Nashville. Check it out here and below!

 

Expansion on Tap at Alamo Drafthouse Cinemas

Texans know that once you’ve been to an Alamo Drafthouse Cinema, it’s nearly impossible see a movie anywhere else again. Not from Texas? Don’t fret: Alamo has some big plans for a town near you.

Film Journal International reported that in addition to three corporate locations (one in Austin and two in the Houston, Texas area), Alamo has three Drafthouse Cinema franchises operating in Austin and one in San Antonio. On the horizon, and an agreement with a “well-known multi-unit operator and restaurant group” which is “taking down the rest of Texas” and building out the state beyond already confirmed Alamo locations, according to John Martin, Alamo’s president and CEO. The latter encompass two more locations in San Antonio (scheduled for October 2009 and fall 2010, respectively) as well as Austin #5 (summer 2010) and, coming this fall, the franchise’s first venture outside of Texas: an eight-screen, 40,000 square-foot facility for Winchester, Virginia.

Consumer response to the brand has been enthusiastic. “We’ve had the best year in our history,” says Martin. He “absolutely” believes that the “Dinner at the Movies” concept offers a particularly strong value proposition to the consumer in this time of economic difficulty. “2008 was up 8.7 percent at Alamo. People are definitely going out to enjoy dinner, drinks, movies and popcorn. No matter what age you are and no matter where else you go, during those two-and-a-half hours everybody is still getting the best bang for their buck at our place. We have not seen a dip on the customer counts and people still want to see the movies and eat out,” Martin said.

As for future development, Alamo expects to have ten theatres open nationwide by the end of 2010 and 30 locations within five years. Martin encourages anyone interested in owning an Alamo Drafthouse Cinema to come to Austin so he can show them how the brand has developed over the course of the company history. The majority of franchise growth is expected to be generated by multi-unit area developers who have the resources and capability to open, own and operate five to ten locations in an exclusive territory in a three- to five-year period. Because of its unique niche as a cinema-eatery, the Alamo Drafthouse concept is particularly well-suited for individuals or investment groups who have prior or current experience owning/operating multi-unit restaurant concepts as well as those with prior or current theatre experience.

From Finance to Franchising

When life gives us lemons, we’re told to make lemonade. Joe Sassano did just that, minus the citrus: When life handed him a layoff, he created the career he’d always wanted.

The Ridgefield Press reported Sassano spent 30 years in the financial sector before he was laid off three years ago. Instead of reentering the corporate world, however, Sassano decided to fulfill his lifelong dream of owning a business. He examined the franchise market, and found ShelfGenie, a growing company that specialized in shelving systems.

“I needed to find something that would balance my living. After job hunting for a number of months, nobody was doing any hiring whatsoever, so I thought it was time to start my own business,” he said. “ShelfGenie just spoke to me. I read the concept, loved the concept. I was extremely impressed by the support and infrastructure. Here’s an opportunity to step into something that is really put together.”

Sassano saw ShelfGenie’s products and services as something homeowners today truly needed. Many don’t have the disposable income they once did to spend remodeling an entire kitchen or bathroom but they can redesign and repurpose what they already have at a fraction of the cost. Sassano says this is the key because ShelfGenie’s high-quality Glide-Out shelving is custom fit to existing cabinets to provide easy access to frequently-used items and maximum storage capacity. Though he’s still new to business ownership, Sassano is sure he made the right decision.

“Ten years ago, I never expected to be in this situation. With many years in the corporate world, the thought of owning a franchise business was way down my list of possibilities. I feel very fortunate that I took this step, and am confident that this is the right move for me at this time and stage in my life,” Sassano said.

Photo: ShelfGenie owner Joe Sassano.