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Franchise Update Magzine, 2012 Issue 1 PEOPLE n INVESTMENT INSIGHTS n CUSTOMERS COUNT Multi-Unit FranchiseeISSUE I 2012 Mega 99 Dawn Lafreeda operates 70 Denny’s in 6 states n HIRING RIGHT Experts share best practices n TOP DAWGS! Franchisee of the Year winners on their success n MEGA 99 Annual ranking of the biggest players MUF cover strip.indd 1 8/18/11 11:58 AM Add a brand that has proven FINANCIAL STRENGTH MULTI-UNIT FRANCHISING OPPORTUNITIES THROUGHOUT THE U.S. MASSAGE ENVY FRANCHISEE BENEFITS · Average unit volume of over $1,000,000* · Pioneer and national leader in $15 billion-a-year massage therapy industry · Dues-based system provides predictable revenue model · Strategic partnership with global skincare leader Murad® Massage Envy, the pioneer of member-based massage and spa services, is now seeking qualified candidates. CONTACT LORI MERRALL (480) 366-4171 · [email protected] MassageEnvyFranchise.com * As reported in Item 19 of the current Massage Envy FDD. Please review the FDD for further clarification of this metric. This advertisement is not an offer to sell franchises. Such an offer can only be made through a Franchise Disclosure Document that has been registered with and approved by the appropriate agency in your state, 6 if your stateMULTI- requires suchUNIT registration. FRANCHISEE Please contact ISSUE Massage I, 2012 Envy Franchising, LLC for a Franchise Disclosure Document. ©2011 Massage Envy Franchising, LLC. MULTI-UNIT FRANCHISEE ISSUE I, 2012 1 New Markets, New Incentives Jack in the Box Seed Strategy In select Jack in the Box seed markets, growth starts with an acquisition. You can franchise recently opened company restaurants and use these locations as a platform for future market development. New Market Development Program*: • Royalty fees reduced for up to 5 years • Up to $50,000 in franchise fees waived • Up to 75% of your advertising fees invested in local marketing efforts Indianapolis – 1 Restaurant Open ACQUIRE Kansas City – 4 Restaurants Open SEED Oklahoma City – 7 Restaurants Open Tulsa – 4 Restaurants Open MARKETS Cincinnati – Under Development Acquisition-only markets available: Austin, Beaumont and Seattle Call 858-522-4738 For our local event listing, visit jackinthebox.com/franchise *Per location. Certain restrictions apply. Development fee still applicable. ©2012 Jack in the Box Inc. 9330 Balboa Avenue, San Diego, CA 92123. This is not an offer to sell a franchise. 2 MULTI-UNIT FRANCHISEE ISSUE I,Jack 2012 in the Box is a registered trademark of Jack in the Box Inc. FranchiseeMulti-Unit contents ISSUE I, 2012 COVER STORY Mega MUFs 10 We talk with multi-unit big hitters Sam Covelli, Dawn Lafreeda, Ray Harrigill, Roger Mongeon, Tom Barnett, and Tommy Haddock about life, work, and the meaning of success. BY TRACY STATON and DEBBIE SELINSKY LISTS Mega 99 46 It’s a long way to the top for these multi-unit franchisees. FEATURES Signing Bonus 50 Hiring experts dish on how to hire right. BY KERRY PIPES And the Award Goes To… 56 Franchisee of the Year winners tell how they did it. BY EDDY GOLDBERG MULTI-UNIT FRANCHISEE ISSUE I, 2012 3 Multi-Unit Departments Franchisee CHAIRMAN Chairman’s NOTE Gary Gardner Building Your Empire 6 CEO Get your game on at April’s Multi-Unit Franchising Conference! Therese Thilgen PRESIDENT Steve Olson ONLINE VICE PRESIDENT OPERATIONS Sue Logan What’s online @ mufranchisee.com 8 VICE PRESIDENT MARKETING Kimberlie Guerrieri VICE PRESIDENT BUSINESS DEVELOPMENT FOCUS ON FOOD Barbara Yelmene Food stats from FRANdata and Technomic BUSINESS DEVELOPMENT EXECUTIVES 62 Jeff Katis Lorena Leggett Judy Reichman Columns EXECUTIVE EDITOR Kerry Pipes SECURITY MANAGING EDITOR Share War(e) 64 Eddy Goldberg ART DIRECTOR Online templates give hackers an edge FRANCHISE UPDATE BY DAVID ELLIS MEDIA GROUP Samantha Calden DESIGN & PRODUCTION FINANCE MULTI-UNIT FRANCHISEE MAGAZINE www.petertucker.com Danger Signals? 66 INTERNET CONTENT MANAGER 20 signs your business may be in trouble Benjamin Foley BY STEVE LEFEVER SALES AND SUBSCRIPTION DEPARTMENT, OFFICE MANAGER Sharon Wilkinson SENIOR PROJECT MANAGER, INVESTMENT INSIGHTS MEDIA AND BUSINESS DEVELOPMENT The Next New Normal 68 Lyola Shybanova Surviving and thriving in a changed economy CONTRIBUTING EDITORS David Ellis BY CAROL SCHLEIF Darrell Johnson Mel Kleiman Steve LeFever CUSTOMERS COUNT Jack Mackey Name Calling 70 Carol M. Schleif Jim Sullivan Train your front-line employees in customer engagement Thomas J. Winninger BY JACK MACKEY Dean Zuccarello ADVERTISING AND EDITORIAL OFFICES: Franchise Update Media Group EXIT STRATEGIES 6489 Camden Avenue, Suite 108 San Jose, CA 95120 Price Match 72 Telephone: 408-997-7795 There’s more to selling than accepting the highest offer Fax: 408-997-9377 BY DEAN ZUCCARELLO SEND MANUSCRIPTS AND QUERIES ABOUT STORY ASSIGNMENTS TO: [email protected] PEOPLE franchiseupdatemedia.com mufranchisee.com Take This Job and Love It 74 franchising.com The 5 things your employees want most franchise-update.com MULTI-UNIT FRANCHISEE MAGAZINE IS BY MEL KLEIMAN PUBLISHED FOUR TIMES ANNUALLY. Annual subscription rate is $49.00 (U.S.) FOR SUBSCRIPTIONS EMAIL FRANCHISE MARKET UPDATE [email protected] Adaptability: the New Keyword 76 OR CALL (408) 997-7795 How to be a winner in 2012 FOR REPRINT INFORMATION CONTACT FOSTER PRINTING AT (800) 382-0808 BY DARRELL JOHNSON www.fosterprinting.com 4 MULTI-UNIT FRANCHISEE ISSUE I, 2012 with America’s largest retailer of coffee by the cup FRANCHISE ¦ Diverse Portfolio of Development Concepts ¦ ¦ Ranked #1 in Customer Loyalty for the 5th consecutive year ¦ 2011 Brand Keys Customer Engagement Index ¦ Ranked one of the fastest growing franchises ¦ SPECIALOKLAHOMA 2012 Franchise · WISCONSIN 500 ¦ 60+ years of Brand Heritage ¦ INCENTIVESLOUISIANA · ALABAMA AVAILABLE For more information, go to www.DunkinFranchising.com Minimum financial requirements for Single Unit Development Opportunities are $250K liquid assetsMUL andTI- $500KUNIT net FRANCHISEE worth. ISSUE I, 2012 5 Single unit opportunities vary by market. ©2012. DD IP Holder LLC. All rights reserved. Dunkin’ Brands, Inc., 130 Royall St. Canton, MA 02021 Chairman’sNote BY JOHN METZ Eyes On Empire John Metz is the incoming Chair of Franchise Update Media Group’s 11th Annual Multi-Unit Franchising Conference, April 24–26, 2012 at The Mirage Las Vegas. This is the only national conference focused exclusively on multi-unit franchisees. The theme this year is “Empire Builders.” reating an empire is no small task; eration, this conference is a basic business essen- it wasn’t for the Romans centuries ago, tial. Whether you have three or 300 units there and it’s not for multi-unit franchisees is something here for you: quality speakers and today. But it can be done. Conjure a panelists, timely and topical subject matters, ex- Clot of hard work, elbow grease, and knowledge tremely interesting keynote speakers, a great ar- gained from experience—and maybe a pinch ray of vendors and suppliers, and the opportunity of luck—pour it all into a strong and thriving to network with the top players in multi-unit franchise brand, and you’re on your way. Stories franchising. abound of franchisees who start- In organizing this event each year, the Fran- ed small and went on to make chise Update team works in tandem with the it big. Most of them have a few seasoned multi-unit franchisees on the Confer- things in common. ence Advisory Board. Let me tell you, I make Key components of any suc- the rounds attending numerous franchise events cessful business organization throughout the year, and none has achieved a rep- include quality people, partners, utation for quality like the Multi-Unit Franchis- tools, and intelligence. All of ing Conference. these resources, and more, are available each year As incoming chair, I know I have some big for participants in the Multi-Unit Franchising shoes to fill. Charles Smithgall did a fantastic job Conference. I began attending these conferences last year. Before him were franchise stalwarts in- in 2004, and I keep coming back every year. The cluding Stan Novack, Bill Hall, and Gary Grace, content and the people make this one of the best among others. But I know the Franchise Update events in franchising. team and Advisory Board will create an outstand- As a franchisee of Denny’s, Dairy Queen, and ing event I will be proud to be a part of. Marriott Hotels, information is important to me. If you have your eyes set on building your own At the Multi-Unit Franchising Conference, at- empire, through growth, financing, or adding tendees not only learn how to successfully lead brands, don’t miss this conference! There’s plenty a business of this kind, we also are granted the to benefit you. See you in Vegas! opportunity to share experiences with strong players in the field. I have met people and been exposed to ideas that have both encouraged and challenged me. This conference is not only about John Metz multi-unit concepts, but more about multi-unit, Chair multi-brand franchisees—adding another layer of 2012 Multi-Unit Franchising Conference knowledge and understanding to the equation. If information is critical to you and your op- 6 MULTI-UNIT FRANCHISEE ISSUE I, 2012 MULTI-UNIT FRANCHISEE ISSUE I, 2012 7 Authentic Definition ad.indd 1 8/12/11 2:47 PM MU Franchisee.com For this and more web-exclusive content, visit www.mufranchisee.com Conferences Online Edition 10th Annual Multi-Unit Franchising Conference Now you can have everyday access to Multi-Unit Franchisee maga- Franchise Update Media Group’s annual Multi-Unit zine on your computer, at home, or at work. This free online edition Franchising Conference celebrated its 10th anniversary is feature-packed and fully searchable, printable, and downloadable. with the largest, most successful conference in its Look for the Online Edition link on mufranchisee.com/. history. The Venetian Las Vegas played host to Female Perspective more than 900 franchise Despite all the talk about the proverbial glass ceil- movers and shakers this ing for women in business, Dawn Lafreeda has past April.
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