PEOPLE n INVESTMENT INSIGHTS n CUSTOMERS COUNT SEE PAGE 65 Multi-Unit n LAS VEGAS APRIL 27-29, 2011 FranchiseeISSUE II 2011 LEADERS OF THE BRANDS Multi-concept stars shine Jeff Orlando Wingstop, Schlotzsky’s and Cinnabon n MB50 Top 50 multi-concept operators by size and brand n FAB FAVES Industry insiders dish on franchise trends n PRIVATE EQUITY Can investment partners help you grow? muf2_cover(C1).indd 1 3/11/11 4:47 PM Source: ZIPS Franchise Disclosure Document issued April 30, 2010. No offer or sale of a franchise can be made except by an FDD first filed and registered with applicable authorities. The top 40% of ZIPS experienced member owned units had average gross sales above $1.4 million per unit from January to December 2009. See Item 19 of the April 30, 2010 FDD for further details. This is not an offer to sell a franchise. This offering is made by prospectus only. ZIPS Franchising, LLC, 7500 Greenway Center Drive, Suite 400, Greenbelt, MD 20770. ©2010 ZIPS. All rights reserved. ad_zipsdrycleaners(1).indd 1 9/30/10 2:38 PM Add some muscle to your portfolio. Looking for serious financial gains? Call 201.867.5309 or visit RetroFranchising.com for more information on this powerful investment opportunity. *The top 10% of Retro Fitness clubs experienced average gross sales per unit of $1.9 million from March 2008-February 2010. Revenue per square foot is derived from average gross sales numbers published in item 19 of our 2010 FDD. This is not an offer to sell a franchise. Offerings made by prospectus only. ad_retrofitness(1).indd 1 3/11/11 4:36 PM ad_dennys(C2).indd 2 6/23/10 11:04:20 AM FranchiseeMulti-Unit contents ISSUE II, 2011 COVER STORY Brands on the Run! 10 Multi-brand franchisees—Andy Lanz, Glenn Miller, Jeff Orlando, Pierre Panos, Randy Merrill, and Rick Huffman—grow by leaps and brands. BY JOHN CARROLL and DEBBIE SELINSKY LISTS Multi-Brand Rankings 44 MB50: Multi-brand operators ranked by size and brands. FEATURES Playing Favorites 48 Franchise insiders dish on 2011’s best brands and sectors for expansion. BY KERRY PIPES Private Equity: Is It Right for You? 56 Weighing the pros and cons of bringing investors into your organization. BY EDDY GOLDBERG MULTI-UNIT FRANCHISEE ISSUE II, 2011 3 muf2_toc(3,4).indd 3 3/11/11 4:47 PM Multi-Unit Departments Franchisee Chairman’s NOTE PUBLISHER Steve Olson Plan To Attend and Plan To Win 6 PRESIDENT It’s time for the Multi-Unit Franchising Conference! Therese Thilgen CEO ONLINE Gary Gardner VICE PRESIDENT OPERATIONS What’s online @ mufranchisee.com 8 Sue Logan VICE PRESIDENT MARKETING Columns Kimberlie Guerrieri VICE PRESIDENT BUSINESS DEVELOPMENT SECURITY Barbara Yelmene Keeping Hackers at Bay 80 BUSINESS DEVELOPMENT EXECUTIVES Jeff Katis Franchise networks are a favorite target Lorena Leggett BY DAVID ELLIS EXECUTIVE EDITOR Kerry Pipes SITE SELECTION MANAGING EDITOR Double Agents 82 Eddy Goldberg DESIGN & ART DIRECTION Is your agent really working for you? Peter Tucker BY DALE WILLERTON INTERNET CONTENT MANAGER Benjamin Foley FINANCE SUBSCRIPTIONS & DATABASE MANAGEMENT Bank Ability 84 Sharon Wilkinson Increase your odds for getting bank loans PROJECT MANAGER/ MEDIA SUPPORT COORDINATOR BY STEVE LEFEVER Lyola Shybanova INVESTMENT INSIGHTS DIRECTOR OF CLIENT SERVICES Beverley Ellul Inherit the Windfall 86 CONTRIBUTING EDITORS Pass on your wisdom as well as your assets Carol M. Clark Darrell Johnson BY CAROL CLARK Mel Kleiman Steve LeFever CUSTOMERS COUNT Jack Mackey Creating Loyalists 88 Jim Sullivan Thomas J. Winninger Nurturing customers must be a key strategic goal Dean Zuccarello BY JACK MACKEY ADVERTISING AND EDITORIAL OFFICES: Franchise Update Media Group EXIT STRATEGIES 6489 Camden Avenue, Suite 108 San Jose, CA 95120 M&A Activity on the Rise 90 Telephone: 408-997-7795 Is it time to make a deal? Fax: 408-997-9377 BY DEAN ZUCCARELLO SEND MANUSCRIPTS AND QUERIES ABOUT STORY ASSIGNMENTS TO: PEOPLE [email protected] franchiseupdatemedia.com Reference Checks 92 mufranchisee.com Getting effective responses from former employers franchising.com franchise-update.com BY MEL KLEIMAN MULTI-UNIT FRANCHISEE MAGAZINE IS FRANCHISE MARKET UPDATE PUBLISHED FOUR TIMES ANNUALLY. Annual subscription rate is $49.00 (U.S.) Beyond the FDD 96 CALL 408-997-7795 X202 Franchisees need—and should demand—more information FOR SUBSCRIPTIONS. REPRINT INFORMATION, CONTACT BY DARRELL JOHNSON FOSTEREPRINTS AT 800-382-0808 4 MULTI-UNIT FRANCHISEE ISSUE II, 2011 muf2_toc(3,4).indd 4 3/11/11 4:47 PM Brand Protection Jack in the Box is widely acknowledged as an industry leader with our farm-to-fork food-safety program, earning praise from consumer groups and government agencies, including the U.S. Department of Agriculture, the Food and Drug Administration and the California Department of Health Services. Protecting the Guest Relationship • Product quality managed along entire supply chain guarantees quality excellence • 2004 Black Pearl Award recipient - industry’s highest food-safety honor • Daily Voice of Guest satisfaction surveys report on each restaurant’s service quality for continuous improvement bRAND PROTECTION. One more way Jack in the Box R&D Kitchen, Jack in the Box IT’S ONLY continuously adds value to our franchisees. INNOVATION Innovation Center • COST SAVINGS • ACTIONABLE DATA WHEN IT • RELATIONSHIP • PROTECTION • effICIENCY ADDS VALUE • COMMITTED LEADERSHIP • UNIT SALES IMPACT Multi-unit franchising opportunities available. Acquire company units. Develop new contiguous markets. Call 858-571-4738 or visit jackinthebox.com/franchise ©2011 Jack in the Box Inc. 9330 Balboa Avenue, San Diego, CA 92123. This is not an offer to sell a franchise. Jack in the Box is a registered trademark of Jack in the Box Inc. ad_jackinthebox(5).indd 5 3/11/11 4:32 PM Chairman’sNote BY CHARLES SMITHGALL Plan To Attend and Plan To Win y Dad once said, “Son, no matter life story inspired the movie “The Blind Side.” how good an opportunity you miss, They are going to hear Jim Sullivan, well- there will always be another one, known author of the book Multi-Unit Leadership, even better than the one you missed. talk about great ideas for successfully managing MJust make sure that you operate well, keep your multiple units. They are going to hear Gary Wal- eyes open, and keep a lot of cash.” That philosophy strom, founder of Culture Index, the best system served him well for 93 years. (Mom’s going to be we’ve ever come across for testing the behavioral 100 April 1, but that’s another story.) characteristics of potential general manager can- There are opportunities galore didates. These are a few highlights of a program today in the franchising busi- loaded with talent. ness, possibly more than there In addition, you will be rubbing elbows and at- have ever been. There are eager tending cocktail receptions with some of the best franchisors with fantastic brands and brightest franchisees in America. Beyond the in under-served markets. There formal program, the Exhibit Hall will have numer- are successful franchisees who ous successful franchisors touting new concepts, just want to cash out. There are and companies showcasing tools and services de- many successful concepts that can be franchised. signed to improve your business. And, believe it or not, there is a lot of money avail- Several franchisees have asked me “What can able to finance proven operators. (We are currently I expect to get out of the Multi-Unit Franchis- being courted by several large banks.) ing Conference?” My answer is always the same. It is a wonderful time to invest in a franchise “What do you expect to put into it?” I always plan business or to grow an existing business by: 1) what I am going to try to accomplish at the confer- acquiring other franchisees, 2) launching a new ence. I want to meet as many successful franchisees brand, or 3) simply opening more units of your ex- and franchisors as I can, attend as many sessions isting brand. as I can with subjects pertinent to my business, The ideal place to explore all of these options is and I am always on the lookout for those one or at the upcoming Multi-Unit Franchising Confer- two ideas that make my investment in the confer- ence coming soon at a Las Vegas near you. The ence worth it. And it’s amazing, but every year I conference is being held at the fabulous Venetian find them—and that’s what keeps me coming back. Hotel April 27–29, and I can promise you that it’s Whether you think you can, or you think you going to be the largest and best ever. can’t, you are right either way. I am honored to be this year’s Conference Chair, In summary, the Franchise Update Media but I can assure you that I’m there to learn just like Group puts on one heck of a show, and I can assure everyone else. Many of my fellow Aaron’s fran- you that you won’t be disappointed. chisees have already signed up because they are P.S.—Did I mention the golf tournament? hungry for ideas on how to improve their existing operations, as well as exploring new concepts. They are going to hear words of wisdom from keynote speakers J. Patrick Doyle, President and CEO of Charles Smithgall Domino’s Pizza, and Sean Tuohy, an ultra-successful Chair multi-unit franchisee and NBA broadcaster whose 2011 Multi-Unit Franchising Conference 6 MULTI-UNIT FRANCHISEE ISSUE II, 2011 muf2_d_chairmansnote(6).indd 6 3/11/11 4:49 PM ad_jerseymikes(7).indd 7 1/18/11 5:28 PM MU Franchisee.com For this and more web-exclusive content, visit www.mufranchisee.com/q211/.