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June-July 2014

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In this issue

The Pipeline

There’s no safety in the fast-casual pizza segment. Competitive edges are vanishing as each succeeding concept—some two dozen at last count—pops up.


It’s simply bad public policy to install the infrastructure and regulatory requirements of a franchise law unless those to be protected by it are truly in need of that protection.

‘Sold on Schultz’

Pinkberry made a big splash when Howard Schultz, founder of Starbucks, invested $27.5 million in 2007 in the fledgling frozen-yogurt brand through Maveron, his venture capital firm in Seattle.

Keep it Together

Although many franchisees discuss splitting their companies up to avoid provisions of the Affordable Care Act, experts say the idea is a non-starter.

True Blood

Moe’s Southwest Grill is among franchisors turning to digital loyalty programs to reward their best customers, and gain a rich database of visitors in return.

Cultural training puts everything into context

When it comes to international development, one world doesn’t fit all. Here’s why you need to be trained before your train leaves the station.

Big vs. Small

Sphinx, the largest casual-dining chain in the country, targets smaller-town franchisees who know their local market. Domino’s first sub-franchisee, meanwhile, plies his trade in the dense apartment bloks of Warsaw.


Success in Brazil requires boots-on-the-ground knowledge of the regulatory and business environments.

Going for Gold

About 2 million Brazilians visited the U.S. last year, according to Renato Sabaine of the U.S. Commercial Service office in Brazil. And trust him, when they return home, they brag about where they ate.

Something’s gotta give: tech costs vs. dining

Is the cost of television, Internet and phone service hurting casual dining chains? Maybe.

Data Dump

'The use and safeguarding of data is absolutely essential to the efficient operation of any business today,' says one attorney, and franchises have special concerns.


While big retailers close stores, franchisees are targeting the empty boxes for expansion.

Local Flavor

Once you’re in the airport, expect a major stage that can make or break your expansion plans.

Active Duty

‘Failure is not an option’ for an Always Best Care franchisee, a veteran who applies the slogan to her business. She is one of many answering the call to buy a franchise after military service.

Is the minibar’s popularity drying up?

According to an article in CNN Travel, millennials tend to be more social and would rather hang out in a lobby bar than drink alone in their room.

Acting their Age

If you don’t like to sit in your room but prefer to mix and mingle, you’re a coveted customer for hotel brands. Many are trying to ‘activate’ their lobbies for multiple functions.


With the Smokehouse Brisket a triumph, plus 14 straight quarters of sales growth, Arby’s is now adding stores.

Taste Test

In search of a delicious breakfast sandwich that can easily be consumed in the car, our intrepid restaurant reporter tried eight.

New Orleans QB Drew Brees delivers

Drew Brees has five Jimmy John’s stores, soon to be 20, that are going head to head with New Orleans’ iconic muffulettas and shrimp po’boys.

Field Trip

In early May, about 200 franchise suppliers, franchisors and Google franchise partners convened on the Internet company Google’s headquarters for the second annual GIFA.

Silver & Gold

Tough economic times tend to push up gold prices, which is why so many new players are trying to profit in the jewelry-and-coins trade.

Family Business

It’s best to forget the father-son dynamic and instead emphasize the business partnership, experts say, and that can be toughest on the older generation.

Operator Q&A

Anyone can take a selfie, but who will take your photo when you find yourself ‘in a zombie situation’? TapSnap handled that one for a client.

Triangle Posturing

First there was Snap Fitness, compact 24-hour workout facilities, then 9Round, small circuit boxing clubs, and now the trifecta, YogaFit, 24-hour accessible yoga classes.

Attorney cites ‘broad-brush bias’ in article

Harold Kestenbaum address several additional statements and conclusions pertaining to other topics that are set forth in an article about him in last month's issue.

Booth etiquette tips

At the National Restaurant Show last month in Chicago, Hoodz, a kitchen hood-cleaning franchise, had to deface its penguins because people kept walking off with their game pieces.

Corks t’aint for landfills anymore

Houlihan’s Restaurants has a better solution than tossing your leftover corks in the trash, which ultimately end up in landfills. Recycle them.

Words you should use

We admit we go to the Urban Dictionary well way too many times. But every so often we feel the need to share cool new words you might otherwise never utter.
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From the Magazine

Publisher's Column

A comeback story for the ages

Mary Jo Larson discusses Drew Brees, families in franchising, and Jonathan Maze's story on breakfast sandwiches.

Loose Ends

Phoning it in from London, England

I went to London, not to visit the Queen, but to check out England’s suitability for a future franchise trade mission.
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