Monthly Archives: March 2013

How Will Franchising Deal with the Affordable Care Act?

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Franchises are flummoxed by the Affordable Care Act. The new healthcare law continues to evolve, leaving a lot of confused small business owners in its wake. Which aspects of the employer mandate are franchisees responsible for complying with? How can they remain solvent without reducing their workforce and losing valuable employees?

 

The IFA has created www.MakingSenseofHealthCare.org to help businesses understand their compliance responsibilities and share testimonials and stories about how they’re dealing with the process.

 

Regardless of your political inclinations the Affordable Care Act is a big deal. The mandated health care coverage is expensive and small businesses are struggling to maintain profitability– which includes franchises.

 

According to the IFA, over one-third of full-time franchise jobs could be cut back or lost completely due to the Affordable Care Act. That’s over 3 million jobs. While Obamacare doesn’t take full effect until 2014, owners of fast-food, restaurant and service company franchises are urging Congress to make major changes to the ACA in order to save jobs and keep them in business.

 

One of the biggest components of the healthcare overhaul that’s causing grief is the discrepancy as to what constitutes a full-time work week. Obamacare says 30 hours; while most in the franchise industry believe 40 hours should be the standard. If Congress doesn’t amend the law franchises will be forced to cut employee hours back to below 30 hours per week.

 

Franchise business owners aren’t the only ones facing higher costs as a result of the Affordable Care Act. A 2011 Hudson Institute study shows that the franchise industry could see its costs increase $6.4 billion, much of which would be passed on to consumers.

Flip Flop Shop’s Heart to Sole Initative

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Brian Curin had heard it before: “Health is wealth,” and, “You’re nothing without your health.” Like most humans, Curin ignored those old axioms and, instead, pushed himself and his franchise, Flip Flop Shops, forward– until his 38-year old heart couldn’t push anymore.

 

When we hear about heart disease and the artery blockages our minds rarely conjure images of fit, fast-moving entrepreneurs. Though an active lifestyle enthusiast who surfs, paddle-boards and engages in motor cross sports, Brian’s family history of heart-related problems caught up to him after beginning a particularly intense home workout program. Unusually fatigued, Curin blamed his symptoms on his hectic schedule until a few weeks later a “strange feeling” in his chest prompted an immediate doctor’s visit.

 

Blood tests and a standard EKG came back normal, but a failed exercise stress test caused Curin’s doctors to recommend an angiogram. The diagnosis: 100 percent blockage in his heart’s main artery– aptly called “the widow maker”– and near complete blockage in three other arteries. Doctors warned Curin he could suffer a fatal heart attack at any moment so, at 38, Brian Curin had immediate, emergency open-heart surgery.

 

Months after his shocking, scary surgery, Curin is concerned about the effects of stress on us all. Before embracing the “flip flops lifestyle” Brian was busy building a name for himself– too busy that he missed the warning signs. Now, just months after his surgery, Curin and his franchise, Flip Flop Shops, have launched the “Heart to Sole: Creating a Stress-Free America” campaign to support the American Heart Association’s My Heart, My Life healthy living initiative as well as the Heart and Stroke Foundation of Canada.

 

The focus of the campaign is on how to reduce stress, which contributes to a long list of maladies, including heart disease risks like high blood pressure and cholesterol.

 

The Heart to Sole campaign will really “kick off” in May and June, the most prominent month for flip flops, to celebrate Flip Flop Shop’s newly minted “Stress Free America Month.” Activities will include:

 

 

Flip Flop Fridays – Companies will be encouraged to abandon the old “casual Fridays” in favor of encouraging their employees to wear flip flops every Friday in June. Starting in May, companies can sign an online pledge committing to Flip Flop Fridays via the Flip Flop Shops Facebook Page, and donate $2 to the AHA for every employee pledged to wear flip flops. In addition, Flip Flop Shops has commissioned the research firm of Alexander Babbage to complete a study that will measure the stress levels of those who wear flip flops to work, compared to closed-toe footwear. The study will be released in April.

 

Instagram Contest – Flip Flop Shops will tie in a weekly contest through Instagram, giving away a pair of flip flops each week to one Instagram user who shares their “Flip Flop Friday” photos from work.

 

Global Search to Find “Chill Ambassadors” – Flip Flop Shops will launch a Facebook contest in May to find its two Facebook fans that are the ultimate Chill Ambassadors. Winners will receive one free pair of flip flops each month for a year. Chill Ambassadors duties include sharing tips for living a care-free, laid-back lifestyle, along with photos and video reviews each month of their new flip flops.

 

Life’s Too Short To Wear Shoes Protests – Throughout “Stress-Free America Month” in June, Flip Flop Shops is partnering with SANÜK to set-up flip flop sit-in protests against our culture of all work and no play, encouraging people to take off their shoes and put on flip flops. Protests will be held in Chicago, Dallas-Fort Worth, Denver, Los Angeles, New York City, Philadelphia, Phoenix, and Vancouver.

 

VetFran and Hiring our Heroes

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The International Franchise Association’s VetFran initiative has strengthened its partnership with the U.S. Chamber of Commerce’s Hiring our Heroes program thanks to a newly forged relationship with Capital One Financial Corporation.

 

The partnership is part of the IFA’s Operation Enduring Opportunity, a campaign to hire 75,000 veterans and military spouses and 5,000 wounded warriors by the end of 2014. New hires may be recruited as franchisees or as team members.

 

As part of the partnership, the U.S. Chamber of Commerce and Capital One made a sizable, $80,000 contribution to the International Franchise Association.

 

VetFran had an opportunity to exhibit this past Friday at the Capital One sponsored Job Fair for Veterans and Military Spouses in Washington, D.C.

 

For more information on Hiring our Heroes, please follow this link.

Sport Clips Haircuts Donates Half of a Million Dollars to VFW’s Free Call Days for Military

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Sport Clips Haircuts Connects U.S. Military with Loved Ones through $500,000 Gift to
VFW’s Operation Uplink™
“Help A Hero” campaign will increase monthly free call days for service members in 2013

KANSAS CITY, Mo. (December 10, 2012) – Sport Clips Haircuts will provide deployed and hospitalized U.S. service members the opportunity to call loved ones free of charge on 13 holidays and 21 additional days in 2013.  The franchise raised money through its Help A Hero campaign and made a $500,000 donation today in support of the Veterans of Foreign Wars’ (VFW) Operation Uplink™ “Free Call Day” program. This is the sixth year for Sport Clips’ Help A Hero, which will provide 17 more call days in the year ahead over 2012. More than 950 Sport Clips locations across the U.S. raised funds for Operation Uplink, which provides the free “talk time” via satellite phone and computer.

Sport Clips representatives presented a check for the 2012 donation today to VFW National Commander John Hamilton at the VFW National Headquarters in Kansas City, Mo. The contribution breaks last year’s record donation by $50,000 and was raised by stylists, managers, and franchisees in-store and through fundraising events in their communities. Since Sport Clips’ Help A Hero program began in 2007, more than 2 million dollars have been donated and almost 2 million calls have been made possible to date.

“It’s an honor for Sport Clips to be able to support men and women in the military through Help A Hero. By helping our troops stay connected to loved ones, we hope these call days will encourage them  through their physical separation from friends and family due to hospital stays or multiple deployments far from home,” said Sport Clips founder and CEO Gordon Logan of the donation. Logan served overseas in the U.S. Air Force and is a lifetime member of the VFW and a VFW Foundation Board member.
Sport Weddel, owner of the Amarillo, Texas store that raised the most money in the Sport Clips system, believes it’s important to participate in programs that support U.S. military like Help A Hero. “I love my country, and I am so proud of those men and women, both present and past, who have made a commitment to keep us free and safe,” he said. “We must not forget that while the great majority of us are enjoying friends and family during holiday times, there are thousands of men and women in uniform around the world who can’t do that. I enjoy the opportunity to help make connections possible through Help A Hero.”

“Sport Clips’ contribution is a remarkable expression of gratitude to all the brave men and women of our armed forces for their sacrifice and dedication. Our thanks goes out to everyone who has played a part in this wonderful and selfless endeavor. VFW is so fortunate to have forged such a strong friendship with Mr. Logan and his nationwide Sport Clips team,” says Hamilton.
To find out more about Sport Clips’ Help A Hero program, visit SportClips.com/Hero.

Restaurant Franchise Hungry Howie’s Helps Veterans Get a Piece of the Pie

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John Brenneman, a former member of the U.S. Marine Corps, credits his military training with the success of his five Hungry Howie’s pizza franchises. After leaving the military, John chose to follow Hungry Howie’s “proven operating model” and recommends that other veterans do the same.

 

Hungry Howie’s, a restaurant franchise known for its flavored pizza crust, has been delivering quality pizza for 40 years. The franchise is consistently finds itself listed as one of the top ten largest pizza franchises in the nation and has won several awards:

 

  • Military Friendly Franchise by G.I. Jobs Magazine, May 2012
  • #3 Best Pizza Franchise by Entrepreneur magazine’s Top 500 Franchise edition, January 2012
  • Chain of the Year by Pizza Today magazine in 2004

Most Hungry Howie’s franchisees cite the pizza franchise’s “crustomizable” flavored pizza crust (which comes in eight different flavors) and personable staff as the main reasons why customers return to Hungry Howie’s.


As a member of VetFran, Hungry Howie’s offers qualified veterans a 50 percent discount on the initial franchise fee. All franchisees are provided ongoing support and training, extending a helping hand in real estate transactions, store construction, operations, distribution, finance and marketing.

 

The restaurant franchise is rapidly approaching 600 stores located in 21 states. Hungry Howie’s is currently looking for franchisees all across the United States. Only Florida and Michigan have limited franchise unit availability.

Why making small business funding available to veterans is so important

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The franchise industry has made it its mission to help military veterans secure funding in order to pursue their small business dreams– but why is it so important that former members of the armed services receive so much help? Aren’t they an obvious choice for financial support?

 

You would think so– and the loan environment for veterans is significantly better than it was a decade ago– but fiscal support for our nation’s heroes still isn’t where it should be.

 

Call me old-fashioned, but American businesses and banks should do all within their power and conscience to help former members of the military. After all, they offered up their lives in potential sacrifice for this nation. Can’t we help them settle into civilian life as small business owners?

 

The International Franchise Association has, through various programs like VetFran, done a great deal to rally support around military veterans. The IFA and various franchises have extolled the benefits of employing veterans, praising veterans’ ability to lead, to take direction and to execute intricate plans.

 

But banks don’t always see it that way.

 

When evaluating a loan application, banks look at:

 

  1. Your history. Banks will check your financial status and personal credit history and your previous loan history. Banks believe we’re creatures of habit and that if we’ve demonstrated fiduciary responsibility in the past we’re likely to continue those habits now. But, if you’ve been in the military since your twenties you probably haven’t had time to develop and rich credit history.
  2. Your cash flow. Preparing a cash flow statement with future cash flow projections is something banks take seriously. Doing so shows the bank that you’re aware of cash coming in and going out of your business. However, how many military personnel are taught how to prepare these kinds of statements?
  3. Your collateral. Most loans are repaid in cash but lenders will want some kind of back up in case your business fails. Collateral– anything of value like a vehicle, real estate, savings, equipment or stocks and bonds– may be used as security for debt repayment. Again, many of those just leaving the military do not own real estate and, if they’ve been on tour for extended periods of time, have not needed a vehicle.

 

It’s for these reasons that some banks like TD Bank, with urging from the IFA and some franchises, have given some preferential treatment to veterans. As more and more action is taken to help veterans become business owners banks should follow suit. Furthermore, as banks are desperate to lend they’ll consider more and more loans.

On a Roll: Sushi Franchise Sushi Freak

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From rice, fish and occasionally vegetables, the Japanese created sushi: a food that’s become so ubiquitous in American culture it can be found just about anywhere– including gas stations. While gas station sushi might not be the best choice, a new franchise concept, Sushi Freak, is offering its customers as much choice as possible.

 

The permutations are endless at a Sushi Freak franchise. You’re only limited by your imagination. Even if you aren’t a fan of “the raw stuff”, Sushi Freak’s list of available sushi filling ingredients — 51– include many cooked and seafood alternatives.

food franchise

Customers follow a basic four step ordering process to create their own 8-piece sushi rolls: select your wrapper (soy or seaweed), pick your protein, choose your fillings and top it off with the sauce, raw fish or other topping of your choice. In addition, Sushi Freak offers vegetarian, gluten-free soy sauce and rice-free options, too.

 

This dedication to customization stems from Sushi Freak co-founders Michael Broder and Jenifer Duarte, whose previous food and beverage experience “got them rolling.”

restaurant franchise

Before Sushi Freak opened its first location in San Diego, Calif., the dynamic, sushi-loving duo worked for The Pacific Rim Asian Bistro in Albuquerque, New Mexico that boasted a 160 piece sushi menu. Guests of the bistro would often request for certain exclusions or additions to their sushi orders. After the one-millionth, “Can I substitute…” request Michael and Jenifer saw the need for a customizable sushi restaurant franchise.

 

Why It Works

 

A mixture of tighter budgets and greater food knowledge (thanks to the Food Network and television shows Top Chef, Chopped and The Taste) has produced a more discerning consumer: one that knows what they like to eat and how they want it made.

 

The beauty of Sushi Freak is that it allows customers to order exactly what they want without sacrificing the traditional sushi experience. Jenifer and Michael made sure to consult one of the best master sushi chefs they knew (the kind that isn’t allowed to touch rice until after a one-year apprenticeship) to refine the sushi making process at Sushi Freak.

 

The Nitty Gritty

 

While a definitive initial investment can’t be given for legal reasons, the estimated initial investment for a Sushi Freak franchise is $179,900 – $297,000.

 

Franchise term is 20 years with an option to renew for another 20 years.

 

Typical Sushi Freak restaurant franchise is 1200-1500 square feet.

 

100,000 minimum cash required.

 

An ideal Sushi Freak franchisee has a strong background in business management with a passion for serving people and very intrinsically motivated.

 

Sushi Freak is seeking franchisees in all 50 states and international locations.

 

One owner or designated manager must be involved in the Sushi Freak franchise on a full-time basis and be held responsible for the daily operations and management of said Sushi Freak location.

 

Owning and operating a Sushi freak includes: use of Sushi Freak’s brand name, trademarks, recipes, operational systems, methods and décor. Support is provided in:

 

Facility planning

Fixture, equipment and leasehold improvements

Lease negotiation

Site selection

Corporate training for owner/operator and general managers

Kitchen workflow design

Ongoing support from training/operations team

Ongoing updates for increasing profitability

Products

System efficiency

Favorable national contracts with suppliers of goods and services

Group of Franchises Partner with TD Bank to Aid Veterans

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Franchises are known for providing their franchisees with a support system from the beginning to end. Now, a group of franchises have partnered with TD Bank to help military veterans secure the capital necessary to become franchisees.

 

Baskin-Robbins, Dunkin’ Donuts, Domino’s Pizza and Papa Murphy’s are the first franchises to participate in TD Bank’s funding initiative.

 

According to TD Bank, those companies participating with veterans interested in opening a franchise within its Maine-to-Florida service area will be offered a streamlined loan application process, waived packaging fees and lower than average interest rates.

 

TD Bank’s head of Small Business Administration lending believes that a military background provides veterans with the skills and traits most often seen in successful small business owners.

 

To get more information about financing through TD Bank veterans should first approach one of the participating franchises.