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March 11, 2013News for the franchise sector

  Franchise News 
  • Quickservice brands find success in supermarket partnerships
    Quickservice brands such as Jamba Juice and sushi concept How Do You Roll? are expanding through partnerships with supermarkets. The partnerships between the separately owned brands have proven to be profitable, but such arrangements also come with challenges, said Gary Stibel, CEO of The New England Consulting Group. "You lose a lot of freedom, but you do it because it's good for your business. If you do a deal like this, the freedom lost is worth the benefits you gain," he said. QSR Magazine (3/2013) LinkedInFacebookTwitterEmail this Story
  • Q-and-A: Costa Vida CEO Sean Collins
    After five years as Costa Vida franchisees, Sean Collins and Dave Rutter bought the fresh-Mex chain in 2009 and have since grown from 23 to 49 units. Same-store sales growth has increased each year. "Ultimately, it was a situation where we knew we could use our past experience within the food industry and as entrepreneurs to grow Costa Vida into a much larger brand," said Collins, who plans to expand the chain to 500 units by 2016. (3/8) LinkedInFacebookTwitterEmail this Story
  • Number of hotel deals is expected to increase in 2013
    The number of hotel transactions in Europe was down 21% in 2012 versus 2011, but the number of deals is expected to rise this year thanks to better financing opportunities. Marriott CEO Arne Sorenson said he expects a record number of hotel transactions in 2013, after the hotel chain signed deals for nearly 60,000 additional rooms last year. "Those are signed binding contracts with hotel owners and franchisees, and we are guessing we will see similar kinds of numbers in 2013," he said. Reuters (3/7) LinkedInFacebookTwitterEmail this Story
  • Starwood Hotels plans growth for Latin American portfolio
    Starwood Hotels & Resorts Worldwide says it is looking to expand its portfolio in Latin America to 100 properties open or in development by the end of 2013. The hotel firm has 20 hotels in its development pipeline in the region, accounting for 3,300 new rooms. "There is still a great deal of opportunity, in world-class travel destinations like Mexico and Costa Rica, under-hoteled markets such as Brazil, top performers like Chile and Peru, and foreign investment favorites such as Colombia and Panama," said Ricardo Suarez, a vice president at Starwood Latin America. News Times (Danbury, Conn.) (3/8) LinkedInFacebookTwitterEmail this Story
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  Best Practices & Business Leadership 
  • Exploring innovation in the franchise industry
    Most franchisees are required to follow specific franchisor policies and procedures when operating their businesses, but there is potential for innovation within the franchise model, Randy Myers writes. Creative franchisees have found success with large-scale innovation, including Texas-based Woodhouse Day Spas owner Kim Stevens, who brought the concept to hotels that led to the creation of the Woodhouse Hospitality Group company, as well as smaller-scale initiatives in advertising and marketing, he writes. MSN/Business on Main (3/7) LinkedInFacebookTwitterEmail this Story
  • Change the way you look at mistakes
    It's important to treat employees as experts, trust them to do the right thing and ask questions instead of making assumptions, writes Josh Patrick of Stage 2 Planning Partners. For this approach to work, leaders must accept the fact that their employees will occasionally make mistakes. "Instead of thinking of mistakes as problems, we started thinking of them as learning opportunities," Patrick writes. The New York Times (tiered subscription model)/You're the Boss blog (3/7) LinkedInFacebookTwitterEmail this Story
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  Trend Watch 
  • Dunkin' to move to 100% sustainable palm oil
    Dunkin' Brands will set a timetable for ensuring all of its palm oil comes from sustainable sources or is offset by purchasing certificates, the company said. New York state Comptroller Thomas DiNapoli, in response, withdrew a shareholder resolution requesting that the company consider how palm-oil production affects society and the environment. The Wall Street Journal/The Associated Press (3/7) LinkedInFacebookTwitterEmail this Story
  News from IFA 
  • IFA issues statement on February jobs report
    IFA President and CEO Steve Caldeira, CFE, issued a statement Friday following the release of the February jobs report that said the U.S. economy added 236,000 jobs in February while the unemployment rate fell to 7.7%. "Franchises are forecast to add 162,000 new jobs across all business sectors in 2013. As access to capital slowly but steadily improves, pent-up demand for growth by franchisors who held back during the recession is now being realized on a more consistent basis. More than 10,200 new franchises are forecast to open in all sectors of the industry, led by restaurants, hotels, business and personal services, commercial and residential services and real estate," Caldeira said. He concluded saying, "Passing revenue-neutral comprehensive tax reform that simplifies the tax code and makes it simpler and fairer for individuals and businesses will go a long way toward further improving the business environment for franchising on a long-term basis." LinkedInFacebookTwitterEmail this Story
  • Ingage's Franchise Operations Performance Summit set for May 2 and 3
    Some of the best and brightest minds in franchise operations will convene May 2 and 3 in Boston for the Franchise Operations Performance Summit. The summit is dedicated to operations performance excellence, contemplating the role of future franchise field consultants and other franchise operations issues. Register for the Franchise OPS before March 25 for $599 and after that for $699. Topics will include technology for field consultants, benchmarking, the field consultant of the future, better onboarding and FDD Item 19 -- how to do it right. The summit is approved for 300 CFE education credits by IFA. LinkedInFacebookTwitterEmail this Story
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  IFA Member Monday 
  • Great Clips record fundraising celebrated with great haircut
    Great Clips stylist Juliana Lindsay made one of the biggest cuts of her life. Children's Miracle Network Hospitals President and CEO John Lauck had his head shaved to follow through on a bet he made with the corporate staff last year. He said he would shave his head if they exceeded their 2012 fundraising goal of approximately $290 million. CMNH found out they surpassed their goal and raised a record-breaking $300 million. To commemorate this great accomplishment, Lauck had his locks shaved off courtesy of Great Clips. LinkedInFacebookTwitterEmail this Story
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  Policy & Finance Update 
  • Competition among moving businesses limited by Ky. law
    Laws in Kentucky might cause people to reconsider opening moving businesses in the state, including one that requires a Certificate of Public Convenience and Necessity, which forces entrepreneurs to publicly advertise their intent to open a moving company and allows competitors to protest the issuance of a new license. As a result, only five new business licenses for moving companies have been issued in the state since 2007, according to the National Federation of Independent Business. Bloomberg Businessweek/The New Entrepreneur blog (3/7) LinkedInFacebookTwitterEmail this Story
  • Nev. restaurants oppose stricter menu labeling bill
    Chain restaurants, grocery stores and other food sellers in Nevada are lining up to oppose a bill proposed this week that would require chains with 10 or more locations in the state to post nutritional information on their menus. The measure would be stricter than the federal rules now under development at the Food and Drug Administration, which will require chains with 20 or more units to post the information. Las Vegas Sun/The Associated Press (3/6) LinkedInFacebookTwitterEmail this Story
  • Work visas for immigrants divide business, labor groups
    A move to overhaul the visa system for low-wage foreign workers as part of broad immigration reform faces challenges because business and labor groups have different interests. The legislative group working on immigration reform has not yet settled on the number of workers to be allowed each year in the agricultural and non-agricultural programs, nor have they agreed on wage issues. Industries including landscaping, hospitality, food service and home health care are likely to be affected if the visa program is not expanded. The Wall Street Journal (3/10) LinkedInFacebookTwitterEmail this Story
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