September/October 2013 THE VO ICE OF 7-ELEVEN FRANCHISEES Regaining Our Composure

Honesty, Integrity And Trust FIWs, POS Analytics And the DVR Security System Small Business Mistakes Sales Plan Verification The “Sell By” Date A More Equitable Partnership Common Sense Communications The Menu Labeling Act And What It Means Goodwill And Servant Leadership Costly Equipment Breakdowns FOAC Golf Raises $100,000

Visit the National Coalition Project A-Game! Website, www. ncas ef.c om

2013- 14 Affiliate Member Directory Page 90

THE VO ICE OF 7 -ELEVEN FRANCHISEES September/October 2013 Contents FEATURING 28 The Menu Labeling Act And What It Means To C-Stores 39 Honesty, Integrity And Trust By Jason Miko, National Coalition By Bruce Maples, Chairman, NCASEF 61 A More Equitable Partnership Will Strengthen 7-Eleven 43 FIWs, POS Analytics, By Paul Lobana, Vice President, Southern California FOA And The DVR Security System 34 Changing The World With Only A Few Hundred Dollars— By Jivtesh Gill, Executive Vice Chairman, NCASEF Project A-Game! 47 Common Mistakes Of Small Business Employers Todd Ferguson, Franchisee, By Craig P. Kennedy, Esq. General Counsel, NCASEF 64 Goodwill And Servant Leadership Serge Haitayan, President, Sierra FOA 55 Sales Plan Verification Assessment By Jay Singh, Vice Chairman 72 Vendor Column: Costly Equipment Breakdowns Are 57 Let The “Sell By” Date Fit The Crime Never Convenient By Roger St. George, Vice Chairman, NCASEF Lockton Companies D E P 59 Common Sense Communications A R By Jas Dhillon, Vice Chairman, NCASEF Member News ...... 16 T M E SEI PAC, Speedy Stops, Pre-Paid Card Fraud, Fresh & N T Healthy, Chicago Stores Seized, Gasoline Taxes, Dollar S Stores Beer & Wine, Walmart Beer At Cost, Tobacco Sales To Minors, Energy For Charity, 15,040 Franchise Jobs, Dollar General 11,000th Store, Beverage Sales On Labor Day, 2013- 14 Swipe Fee Lowered Prices, Fast-Food Dollars, Beverages Help Sales, Fresh & Easy Bankruptcy, Chain-Store Sales, ‘On The Affiliate Run’ Eaters, E-Cig Sales $1 Billion Member Legislative Update ...... 26 Directory New Franchisee Rights Laws, California Raises Minimum Wage, Swipe FOAC Charity Golf Fee Rules In Place During Appeal, NY Credit Card Surcharge Law Page 90 Outing Raises Over Blocked, C-Store Safety Law In Indiana, San Jose Bans Styrofoam, Plastic Bag Ban, NYC’s Plastic & Paper Bag Charge, Denver Ap - $100,000! Page 36 proves Grocery Bag Fee, Seattle Ponders Sugary Drink Tax, Lawmakers AVANTI is published by the National Coalition Call For Cigar & E-Cig Regulations, Wisconsin Bill To Equally Tax To - of Associations of 7-Eleven Franchisees for all bacco, AGs Urge FDA To Regulate E-Cigs, Oregon Considers E-Cig Tax independent franchisees, corporate store managers, area licensees and interested par - SEI News ...... 77 ties. National Coalition offices are located at 3561 East Sunrise Drive, Suite 135, Tucson, AZ Startup Investments, Detroit Ground Leases Sold, NYC Wheat 85718. For membership information, call 520- Thins Promo, Hunger Action Month, Better-for-You Items, 577-8711, e-mail [email protected] Canadian SIM Cards, SEI Joins AmEx Network or fax to 520-577-4688. AVANTI Editorial and Advertising Offices are located at 116 Belle - Bits & Pieces ...... 28 vue Ave., Suite 304, Langhorne, Pennsylvania 19047. For advertising information, call Vendor Focus ...... 81 Sheldon Smith at 215 750-0178 or fax to Visit the National Coalition Website 215 750-0399; on-line, send messages to ...... [email protected]. www.ncasef.com to see photos Franchisee Calendar 102 from the 2013 Convention!

AVANTI SEPTEMBER | OCTOBER 2013 15 Visit the National Coalition Website, www. ncas ef.c om NATIONAL COALITION OF ASSOCIATIONS OF 7-ELEVEN FRANCHISEES NATIONAL OFFICERS Bruce Maples NATIONAL CHAIRMAN tion. Beyond the PAC arena, 7-Eleven has 520-577-8711 • [email protected] SEI Revives PAC also regularly invested six figures in gov - Jivtesh Gill ernment lobbying efforts. Records show EXECUTIVE VICE CHAIRMAN SEI spent $160,000 on federal lobbying 209-481-7445 • [email protected] during the first six months of 2013. Craig P. Kennedy, Esq. GENERAL COUNSEL 714-557-3600 • [email protected] SEI is reconstituting its corporate po - Speedy Stops Roger St. George litical action committee, according to sev - VICE CHAIRMAN eral sources, including The Center For Rebranded To 7-Eleven 360-500-1248 • [email protected] Public Integrity. Paperwork received in 7-Eleven returned to the Rio Grande Jatinder Singh late September by the Federal Election Valley in southern Texas after a nearly two- VICE CHAIRMAN 702-249-3301 • [email protected] Commission indicates SEI’s Senior Direc - decade absence when it completed re - tor of Government Affairs Keith Jones is branding several Speedy Stops stores it Jas Dhillon the treasurer of the new company PAC, purchased late last year, reported the VICE CHAIRMAN 818-571-1711 • [email protected] which will be funded by employees and Brownsville Herald. The Rio Grande Valley primarily used to provide financial sup - Speedy Stops were part of a larger acquisi - Anas Abboud TREASURER port to political candidates. Jones told the tion that included 143 Speedy Stops and 215-946-4608 • [email protected] Center for Public Integrity that the PAC Tiger Mart retail locations from Victoria- intended to support politicians on both based C.L. Thomas Inc. The deal closed CONVENTION CHAIRPERSON 520-577-8711 sides of the aisle “who are supportive of December 31, 2012. In all, SEI now has 14 [email protected] small business” and retailers’ issues. franchise locations in the Rio Grande Val - John Riggio SEI had previously operated a corpo - ley. The company said it has no immediate MEETING/TRADE SHOW COORDINATOR rate PAC for decades, but shut it down in plans to add more stores in the Valley, since 262-275-3086 • [email protected] March 2009 due to declining participa - it already has its hands full integrating its Sheldon Smith recent acquisitions, but is “al - AVANTI PUBLISHER ways on the lookout for great ADVERTISING MANAGER 215-750-0178 • [email protected] “SEI is reviving its political action locations in areas where we al - committee aer shutting it down in 2009.” ready do business.”

continued on page 18

Sheldon Smith PUBLISHE R&ADVERTISING SALES Join The National Coalition 215 750-0178 The strength of an independent trade association lies in its ability to promote, protect and [email protected] advance the best interests of its members, something no single member or advisory group John Santiago can achieve. The independent trade association can create a better understanding between ASSISTANT EDITOR 215 750-0 178 its members and those with whom it deals. National Coalition offices are located in [email protected] Tucson, Arizona. All queries and requests for information should be directed to: Tricia Kessler GRAPHIC DESIGN National Coalition of Associations of 7-Eleven Franchisees KESSLER DIGITAL DESIGN 3561 East Sunrise Drive, Suite 135

Tucson, AZ 85718 The Voice of 7-Eleven Franchisees Office 520-577-8711 September/October 2013 ©2013 National Coalition of Fax 520-577-4688 Associations of 7-Eleven Franchisees E-mail: [email protected] Avanti Magazine is the registered trademark of The National Coalition Of Associations Of 7-Eleven Franchisees. 16 AVANTI SEPTEMBER | OCTOBER 2013

Visit the National Coalition continued from page 16 Website, www. ncas ef.c om

Avoiding Pre-Paid Card Fraud SEI’s Asset Protection department re - cently released a series of steps on how to avoid pre-paid card fraud. The company said 7-Eleven stores have experienced costly incidents of pre-paid card fraud in the past, and developed the steps to educate franchisees on how to best protect them - selves from this type of loss. The primary rule for franchisees and their sales associates to follow is never ac - tivate a card over the phone, SEI instructed. The most common type of pre-paid card fraud 7-Eleven stores experience involves a caller requesting card activation. A caller NCASEF Announces 39th Annual may claim to be from the 7-Eleven Help Desk or Green Dot (the card vendor), often calling in the middle of the night when an National Convention & Trade Show! employee cannot verify that the request is legitimate. The caller may also claim to be The National Coalition of Associations of 7-Eleven Franchisees (NCASEF) has announced conducting a test that requires cards to be its 39th Annual National Convention and Trade Show will be held July activated and will ask for the pin and 12–16, 2014 at the Walt Disney World Dolphin Hotel in Orlando, Florida. account numbers. Once the card is loaded, the thief “We’re really looking forward to being in Orlando at the Dolphin Hotel,” stated Bruce quickly uses the Maples, chairman of the National Coalition. “Coming off of our dynamic convention in Las funds. SEI said the 7- Vegas this past July, members of the National Coalition were energized, encouraged and Eleven Help Desk excited about trends in the industry, as well as the continued expansion of 7-Eleven, Inc. in and Green Dot will the U.S. We believe that the road ahead will continue to present new opportunities for never call to request strategic growth as well as leading-edge developments in the way we manage our individ - an activation test, nor ual stores, especially in the area of information technology. As always, our individual fran - will a law enforcement officer. chisees and their employees are committed to providing exceptional value and making If you believe your store is the victim of card fraud or attempted fraud, SEI rec - sure that every guest at every store feels welcome,” Maples concluded. ommends you take the following steps as Located in the heart of the Walt Disney World Resort, the award-win - quickly as possible: ning Walt Disney World Dolphin is your gateway to Central Florida's greatest • Do not cooperate with the caller and theme parks and attractions. The resort is located in between Epcot and Disney's Holly - hang up. • File a police report. wood Studios and nearby Disney's Animal Kingdom Theme Park and Magic Kingdom Park. • Create a “theft case” online to automati - Enjoy the new Mandara Spa, 17 spectacular restaurants and lounges, five pools, white cally notify your field consultant and sand beach, two health clubs, tennis, nearby golf and many special Disney benefits, includ - Asset Protection representative by ing complimentary transportation to all Walt Disney World Theme Parks and Attractions, e-mail or call the Asset Protection Hot - and the enhanced Extra Magic Hours benefit. n line at 800-555-2620. continued on page 22 18 AVANTI SEPTEMBER | OCTOBER 2013 Hire Heroes USA Helps Military Personnel Reintegrate Into Civillian Life. 7-ELEVEN FRANCHISEES CAN RAISE FUNDS FOR HIRE HEROES THROUGH THE “HOME FOR THE HOLIDAYS” CAUSE EQUITY PROGRAM.

Order the designated products listed below during the months of November and December and a portion of each sale will be donated to Hire Heroes USA!

VENDOR PRODUCT PROMOTED DEAL UIN Hershey Mini Display $10.00 409078 Nestle Professional Hot Pocket's BBQ Recipe Chicken $1.00/cs 666172 Macaroni & Cheese $1.00/cs 751792 Co!e Mate Packets Original $.50 o! 417345 Co!e Mate Packets Lite $.50 o! 417311 Kellogg's Pringles Grab & Go Shipper $10.00 o! 457986 Chez It Shipper $5.00 o! 767830 Met-Rx MET-Rx Display Top Sellers CDU $10.00 o! 338871 Mondelez Gum&Biscuit Shipper Free Box Trident 682963 BIC BIC Lighter 2x2 Display 200ct $1.50 O! 245316 BIC Lighter Premium Powerhouse 300ct $5.00 245282 Perfetti Mentos Peppermint $1.00 o! 382689 Mentos Wintergreen $1.00 o! 382747 Mentos Orange mint $1.00 o! 382663 Mars M&M King Size Shipper 20% 020941 Nature Valley Oatmeal Bar Shipper $6.90 597377 Nature Valley Granola Bar Counter Top $7.00 733428 Wrigley Orbit Eat Drink Chew Shipper 15% 226514 Nestle Waters Nestle Resource Water 700ML $1.00 429761 Nestle Resource Water 1 LTR $1.00 547638 Anheuser Busch, Ernest & Julio Gallo, and MillerCoors also contributed to the Hire Heroes USA program.

Visit the National Coalition continued from page 18 Website, www. ncas ef.c om

• Call Green Dot’s 24-hour retailer support Consumption occasion than for a Non-Im - hotline with questions at 866-443-6669. mediate Consumption occasion (14 per - SEI said as of the December 2013 re - cent vs. 3 percent, respectively, sourcing lease, an ISP message prompt will appear from c-store). tank— on all reloadable card loads warning sales about 100,000 associates to never sell or re-load pre-paid fewer than in 1967. Over cards over the phone. The company also Several Chicago 80 percent of today's gas sta - released a splash screen on the ISP and is Stores Seized tions are connected with conven - communicating the same message in the ience stores. SEI has taken over several Chicago- fourth quarter AP Awareness materials area stores from franchisees, in some cases and training. for allegedly selling non-approved items, Dollar Discount Stores reported DNAinfo Chicago. One local op - Now Offering Beer & Wine C-Stores Move Toward erator told the publication he was forced to relinquish ownership of four 7-Elevens in Several Dollar General and 99 Cents Fresh & Healthy Wicker Park, Lincoln Park, Boystown and Only stores in the Southeast Valley area of The move by convenience stores to Lincoln Square. Another franchisee said Arizona have added low-price beer and offer more fresh and healthy foods to ap - SEI took over his stores in Lakeview, Lin - wine to their inventory, as the two discount peal to a wider range of consumers should coln Park, Jefferson Park and Portage Park. chains expand their offerings nationwide come as little surprise, writes The Hartman In a statement to DNAinfo Chicago, the in order to meet consumer demands, re - Group in its online newsletter company said it “has ter - ported The Arizona Republic. “We want to HartBeat. Food culture in America minated the franchises at be a convenient store,” Manuel Becerra, district manager for 99 Cents Only, told the is constantly changing and there is Two dollar- those locations because a growing demand for healthier the franchisees violated newspaper. “You come to the store and you fare. The report reveals that more store chains the terms of our franchise find everything you need.” They are about 40 Dollar General and than half (53 percent) of all eating are now selling agreement. As a result, we occasions are snacking occasions, assumed control these 99 Cents Only stores across Arizona that and "health" is an important con - low-priced beer Chicago-area stores, and were granted liquor licenses in the past few sideration on 56 percent of snack - they are now open and months, according to the Arizona Depart - and wine. ing occasions. On any given day, operating under the man - ment of Liquor Licenses and Control. An - one in ten of non-restaurant eating agement of 7-Eleven, Inc.” other 30 stores have applications pending. occasions takes place within an hour of A spokesman for the National Association purchasing the food and/or beverage con - of Convenience Stores said this move fur - sumed (an "Immediate Consumption" oc - The Skinny On ther blurs the lines between types of stores. casion). The report further reveals that Gasoline Taxes A customer might not go to a discount consumers are four times more likely to go store intending to purchase beer and wine, The fluctuating cost of gasoline and to a convenience store for an Immediate but the shopper might grab it to save a trip the resultant impact on the nation's econ - to another store, he said. omy and living habits of Americans is a perpetually hot topic. According to data from the U.S. Census Bureau, the highest Walmart Sells tax on gasoline is 39.5 cents per gallon, levied in California, while Connecticut Beer Almost At Cost imposes an almost 55 cent tax on diesel. Walmart has been selling Budweiser, Nationally, the lowest tax on both is just 4 Coors and other brews almost at cost in at cents, the rate in Florida. Across the coun - least some stores in an effort to become the try, there are 118,000 places to fill your country’s largest beer retailer, reported continued on page 26

22 AVANTI SEPTEMBER | OCTOBER 2013

continued from page 22

NCASEF, 7- Eleven, Inc. And Vendor Partners Break Record With $ 750,000 Commitment To Hire Heroes USA The National Coalition of Associations of 7-Eleven Franchisees (NCASEF), in partnership with 7-Eleven, Inc. and 15 vendor partners, recently announced its single largest financial commitment ever to a charita - ble organization—Hire Heroes USA, a non-profit organi - zation offering transition and job search assistance to military veterans and their spouses. The $750,000 commitment, to be paid in early 2014, was made to Brian Stann, Executive Director of Hire Heroes, in July during the NCASEF National Convention in Las Vegas. The largest part of the donation will come from percentage contribu - tions made through an annual cause equity campaign running in Novem - ber and December in which franchisees sell sponsored products, and a portion of the sale benefits Hire Heroes. Over $98,000 of the donation came from the NCASEF’s annual Joe Saraceno Charity Golf Tournament during the convention.

The NCASEF’s relationship with Hire Heroes began in 2010 and, to NCASEF Officers present donation check to Hire Heroes Executive Director Brian date, the NCASEF, 7-Eleven, Inc. and vendor partners have donated more Stann (third from right) during the national convention in July. than $1.3 million to the organization. Since 2010, Hire Heroes has: • Confirmed nearly 1,000 veterans hired (now at the rate of 10 per week). • Completed nearly 5,000 professional resumes. • Conducted more than 86 workshops at 26 bases for more than 1,100 service members and spouses. The July commitment includes participating vendors Hershey, Kel - logg’s, Wrigley, Anheuser-Busch, E.& J. Gallo Winery, BIC, MillerCoors, Nestlé Professional, Mars, Mondelez International, Perfetti Van Melle, PepsiCo, MET-Rx, General Mills and Nestlé Waters. “The National Coalition is our largest funder and has been integral to Sean Thompson, Senior Director of Merchandising at 7-Eleven corpo - our growth and development as the nation’s premier employment assis - rate headquarters in Dallas, said, “The great work that Hire Heroes does to tance organization for veterans,” said Brian Stann, Executive Director of help our veterans has inspired the 7-Eleven vendor community to rally and Hire Heroes USA. “We are grateful to the consistent commitment the Na - donate an unprecedented level to this tional Coalition has shown to the men and women who serve our coun - “The great work great cause. This donation provided by 7- try. This donation will allow us to serve hundreds more veterans in the that Hire Heroes Eleven and the National Coalition will help next two years and continue our workshops on military installations na - ensure Hire Heroes has the tools and sup - tionwide,” he concluded. does to help our vet - port it needs to continue to find meaning - “We made a decision more than four years ago to support the great erans has inspired ful employment to our servicemen and work of Hire Heroes and we made a multi-year commitment to that end,” women. I am particularly passionate about the 7-Eleven vendor said Bruce Maples, chairman of the National Coalition. “We can truly say the cause and am pleased the National community to rally that the Hire Heroes family has become a part of our own family. We are Coalition has asked me to be involved. I so very proud of the work Hire Heroes does for our nation and our veter - and donate an un - look forward to helping raise the bar each ans and we are so very proud of our 7-Eleven family—individual stores, precedented level to year so the important work Hire Heroes the regional Franchise Owner’s Associations, 7-Eleven, Inc. and our ven - does can continue to grow.” this great cause.” dors and partners—who make these donations possible.” n

24 AVANTI SEPTEMBER | OCTOBER 2013

continued from page 22

Bloomberg Businessweek. The markup on a Legislative Upd ate 36-pack of Coors Light cans at a Los Ange - les-area store was 0.6 percent, compared Four States Considering New Franchisee Rights Laws with 29.9 percent for Coca-Cola 20-ounce bottles, according to internal documents re - Several states are considering legislation to give franchisees a lot more power in their dealings viewed by Bloomberg . Walmart’s push into with franchisers, reported the Wall Street Journal. Lawmakers in Maine, California, Pennsylvania and beer is part of a plan to double alcohol sales Massachusetts have recently introduced bills that would give owners a number of new rights and options—such as allowing them to join by 2016 and seize a larger slice of a U.S. beer and support franchisee associations, and making it easier for them to market worth about $45 billion, while at - “Maine, California, renew agreements with their franchiser under the current terms. tracting shoppers who typically buy other The most far-reaching bill is Maine's LD 1458, which includes Pennsylvania and products at the same time. a number of big stipulations, like allowing franchisees to close Massachusetts their stores between 10 p.m. and 6 a.m., to renew their licenses without an increase in royalties or new fees, and to set their own recently introduced Raspberry 5-hour ENERGY prices on products and services. In Massachusetts, S 73 would re - bills that would give Sales To Support Charity quire good cause for termination and prohibit practices such as re - stricting franchisees from associating with other franchisees and franchisees a number Living Essentials, LLC announced it is interfering with the transfer of a franchise by will or other lawful of new rights and continuing to support breast cancer causes probate. Pennsylvania’s HB 1620 would add a new chapter to ex - options under the law.” with the introduction of a new, limited edi - isting state law called “Responsible Franchise Practices.” Among tion, specially marked raspberry flavor of 5- other provisions, before granting a new franchise, franchisers’ hour ENERGY. The company said from must give nearby owners 120 days’ written notice. September through December 31, 2013 it California has two measures on the table. SB 160 would protect the right of franchisees to join and will donate five cents from the sale of every support independent franchisee associations, and would create an affirmative duty for franchisers and bottle of specially marked raspberry fla - franchisees to act in good faith in their dealings. AB 1141 concentrates on increasing termination rights, vored 5-hour ENERGY to Living Beyond clarifying transfer rights, and requiring renewal rights unless there’s significant cause. Breast Cancer (LBBC), a national nonprofit California Raises Minimum Wage education and support organization serving women and families affected California Governor Jerry Brown recently signed Assembly Bill 10, which raises the state’s mini - mum wage to $10 an hour by 2016, reported the Golden Gate Xpress. Under the new law, the current $8 by breast cancer. The minimum minimum wage will jump to $9 an hour next July 1 and then to $10 on January 1, 2016. The 25 percent guaranteed donation is $75,000. increase would be the first minimum wage hike in the state since In addition to the donation, Liv - 2008 and would put extra money in the pockets of an estimated 2.4 ing Essentials said it is launch - million Californians. California will claim the nation’s second highest ”California will claim ing a significant awareness minimum wage when it increases to $9 an hour next July (Wash - the nation’s second campaign that includes na - ington state currently pays $9.19 an hour), and the highest when it tional advertising, public re - rises to $10 in 2016. highest minimum wage lations and special events. Judge Leaves Swipe Fee Rules In Place when it increases to Pending Appeal $9 an hour next July.” Curbing Tobacco Sales The Federal Reserve’s rules for debit-card swipe fees and pro - cessing will remain in place while the central bank appeals a deci - To Minors Successful sion throwing out the regulations, reported Bloomberg . Both the Fed and retailers had asked the federal A new report on the Synar Amend - judge in Washington to keep the current rules in place pending the appeal. “Upon consideration of ment program—a federal and state partner - those pleadings, oral arguments and the entire record, I conclude that the stay should remain in place ship aimed at ending illegal tobacco sales to while our Circuit Court reviews my decision,” U.S. District Judge Richard Leon wrote in the ruling. minors—shows that all the states and the The Fed is seeking to reverse Leon’s ruling that it wrongly set the cap on debit-card transaction District of Columbia have continued to fees, known as swipe fees, at about 21 cents for each transaction, and neglected to bolster competition continued on page 66 continued on page 30

26 AVANTI SEPTEMBER | OCTOBER 2013

Visit the National Coalition Website, www. ncas ef.c om continued from page 26 The Menu Labeling Act And What It Means To C-Stores By Jason Miko, National Coalition A part of the Affordable Care Act, also known as ObamaCare, now requires convenience stores and certain restaurant chains to add menu labeling for much of their food, beyond what is already required on pre-packaged goods. This means that any restaurant or Former 7-Eleven CEO Jim Keyes has been tapped to run the Fresh & Easy Neighbor - convenience store with 20 or more establishments will be required to hood Market chain once its sale by Tesco is place caloric and other nutritional information on the food products formally completed. After teetering on the they carry. What does this mean for 7-Eleven storeowners? brink for over a year, Fresh & Easy Neighbor - hood Market has been sold to Yucaipa Cos., “SEI is preparing to provide signage and caloric informa - which is picking up approximately 150 of tion for products in the fountain area, grill, bakery, etc. the 200 stores. • Employees at McDonald’s and other fast food restaurants conducted that franchisees will need to post and keep up to date.” strikes on August 29 in 60 cities including New York, Chicago and Detroit , in what Like most government intervention, the goal of the new menu-labeling requirements is to help turned out to be the biggest national walk - consumers make the “right” decisions when it comes to purchasing food in convenience stores and outs demanding higher wages. The fast restaurants. In a September 16 article in Roll Call supporting additional menu labeling regulations, food workers want their hourly pay to be Representative Rosa DeLauro and Senator Tom Harkin wrote “…we have seen child obesity bumped up to $15 from the current federal triple—to the point where 1 in every 3 children or adolescents in our nation is now overweight or minimum $7.25. • A new report on tobacco obese.” That is one very large reason why the government is pursuing these new regulations. sales to minors by the U.S. Substance Abuse and Mental Health Services Administration Even so, there is contradictory research regarding the impact of “Under Obamacare reveals that 90.9 percent of all retailers did posted nutritional information and how it affects the customer. One not sell tobacco products to an underage study conducted by New York University and Yale examined diners in any restaurant or decoy. • Nissan plans to have multiple New York where menu labeling has been enacted for several years. They convenience store "commercially viable" self-driving vehicles ready for sale by 2020, reported USA Today . determined that consumers ended up selecting higher caloric food with 20 or more when they were provided with nutritional information. A recent Gallup The company said it is working with major Poll, highlighted in Convenience Store News, showed that less than half establishments will universities including MIT, Stanford, Oxford, of all Americans actually take the time to look at food labeling. Carnegie Mellon and the University of be required to on the technology. • Millennials spend more For its part, NACS is proposing changes to the new menu labeling place caloric and money in brick-and-mortar stores than on - regulations, calling on the Food and Drug Administration (FDA) to other nutritional line, according to new study by the NPD rewrite its rules and championing the Common Sense Nutrition Disclo - Group. The study shows that 81 percent of sure Act, which has broad bipartisan support in the House of Represen - information on the Millennials’ retail spending occurs in-store, tatives. Among other things, the Act would seek “to improve and clarify food products they compared to only 19 percent online. • certain disclosure requirements for restaurants, similar retail food estab - Sandwich chain Subway recently opened its carry.” 40,000th location at an AppleGreen petrol lishments, and vending machines.” According to Rep. John Barrows, D- station in Ipswich, England. Subway has GA, a co-sponsor, “This bill will provide common sense, reasonable relief to those independent and opened 1,761 new locations around the small grocery chains, for convenience stores—for pizza parlors, pizza stores all over the country.” world since the start of the year. • While cold Closer to home SEI is preparing to provide signage and caloric information for products in the cereal is still the number one choice for fountain area, grill, bakery, etc.; franchisees will need to post the signage and keep it up to date as breakfast in America—with sales topping the products change. However, and at this point in the process, the FDA has not issued its final regu - $9 billion over the last year— yogurt is quickly catching up with nearly $7 billion lations. We don’t know what all of the precise requirements will be, but one thing we can be sure of—more work for franchisees. n continued on page 62

28 AVANTI SEPTEMBER | OCTOBER 2013

continued from page 26 meet their goals of curtailing sales of to - highest reported state retailer violation versus 1.9 percent. Franchise industry bacco to underage youth (those under rate was 72.7 percent when the Synar pro - sectors showing an annual growth rate 18). The report by the Substance Abuse gram was established 16 years ago. greater than 2.5 percent include restau - and Mental Health Services Administra - rants, leisure, food retailers, business tion (SAMHSA), which sponsors the services and personal care services. Synar program, shows that the average U.S. Adds 15,040 Fran - national retailer violation rate of tobacco chise Jobs In September sales is 9.1 percent—significantly below Dollar General Opens U.S. private-sector franchise jobs in - the 20 percent target rate set by the pro - creased by 15,040 during the month of 11,000th Store gram. While this rate represents an in - September 2013, according to the ADP Dollar General Corporation an - crease from the year before, it is the National Franchise Report. The report, nounced it opened its 11,000th store in second lowest retailer violation rate in the which measures monthly changes in early October. The company marked the history of the Synar program. franchise employment derived from opening of the store—located in The report further shows that 9 of ADP's actual transactional payroll data, Murfreesboro, Tennessee—by hosting a the 50 states achieved a retailer violation also reveals that on a year-over-year basis community celebration during which rate below five percent, and 33 states and franchise employment growth continues Dollar General presented $11,000 in do - the District of Columbia achieved a re - to outpace the broader private sector job nations to local schools and community tailer violation rate below 10 percent. The market by a measure of 2.5 percent continued on page 32

Visit the National Coalition continued from page 30 Website, www. ncas ef.c om organizations in support of literacy initia - • Fresh food has increased traffic and tives. Dollar General said it anticipates brought new customers to c-stores, partic - opening 650 new stores and creating 6,000 C-Stores Compete With ularly female and older shoppers. As it new jobs in 2013. The company said it has QSRs For Fast-Food Dollars stands, classic c-store customers tend to be created nearly 30,000 new jobs since 2007. men ages 18 to 30 looking to buy cigarettes, For fast-food restaurants, conven - coffee, beer, and lottery tickets. ience stores are increasingly part of the C-Store Beverage Sales competition vying for value-oriented cus - tomers, offering food that is quite similar, Study Finds Swipe Fee Thrive On Labor Day reported Bloomberg BusinessWeek. Food - For beverage sales in convenience service sales at c-stores rose 7.6 percent to Reform Lowered Prices stores, Labor Day was the strongest holiday $27.6 billion in 2012 as they focus on pre - A new economic report released by weekend thus far in 2013, reported pared foods like sandwiches and hot the Merchants Payments Coalition shows BevNet.com, citing a survey conducted by dogs—rather than the usual packaged that debit card swipe fee reform saved con - Wells Fargo Securities. The survey, which fare—to make up for lost cigarette sales in sumers and merchants billions of dollars represents beverage retailers from more the U.S. The article states three key factors in 2012, as anticipated by Congress when than 10,000 c-store locations across the are shaping the battle between quick-serve it passed debit reform legislation in 2010. country, indicates that c-store beverage restaurants and c-stores: Reducing the cost for merchants to swipe sales increased by 4 percent over the long • C-stores are going after the same core de - debit cards saved merchant businesses weekend. The report attributes the increase mographic as quick-service chains: house - $2.6 billion and put $5.8 billion back into to better weather across the majority of the holds with income below $50,000. the hands of consumers through lower country, which increased customer traffic. • Sandwiches and hot dogs are the largest prices, which led to sufficient increased The report also shows that promotions on sources of food revenue for c-stores. Pizza, spending to support 37,501 new jobs, the Labor Day increased by 4.2 percent. Survey which has low entry costs, is the third-largest report finds. The report further states that respondents said they believe sales in the source of food revenue at c-stores and saw if swipe fees had been cut to 12 cents, as third quarter will increase by 3.1 percent sales climb 9.6 percent last year—adding originally recommended by the Federal compared to last year. competition to Domino’s and Papa John’s. Reserve Board, an additional $2.79 billion would have been generated in consumer savings, $1.2 billion more in merchant sav - WINNERS OF FUZE TEA BIG GULP ings, and an additional 17,824 jobs would DRAWING ANNOUNCED! have been created. Coca-Cola recently announced the winners of its Fuze Tea Big Gulp drawing for $25 American Express gift cards. To be entered into the random drawing, fran - Beverages Help chisees had to order one or more of the Fuze Tea for Big Gulp SKUs—Raspberry Foodservice Sales (SLIN 130680), Lemon (SLIN 130119), Unsweet (SLIN 130122), and Sweet Experts estimate more than half of U.S. (SLIN 130121)—then send an e-mail to Coca-Cola rep Libby Goldschmid with consumers now shop foodservice offerings their name, store number, and which Fuze product they ordered. The random in convenience stores, and beverages play a drawings were held up to September 30. role in the segment’s success with 19 percent The winners are: Julius Amirfar, Ken Smitreski, Jigar Patel, Bob Elkins, Dottie of consumers saying they shop foodservice Castaldo, Tom and Amy Carvalho, Jim Nunnally, Serge Haitayan, Karan Singh, at c-stores because they like the selection of Cindy Darling, and Shanti Ramachandran. fountain beverages, reported Beverage In - Congratulations to the lucky winners. Coca-Cola would like to remind fran - dustry Magazine. In 2012, foodservice ac - chisees that tea is a growing category, especially when paired with food, so if counted for nearly 16 percent of in-store you do not already have a Fuze Tea available in your store for Big Gulp, convenience store sales, making it the sec - please consider ordering a BIB from McLane and trying it out. ond most prominent category next to to - continued on page 36 32 AVANTI SEPTEMBER | OCTOBER 2013

Visit the National Coalition continued from page 32 Website, www. ncas ef.c om

Changing The World With lenbeck is a great person to help you make it all work out. Her contact info is wendi.hollen - Only A Few Hundred Dollars— [email protected] or 972-828-6949. Some of you may be thinking, "Would a Project A-Game! By Todd Ferguson, Franchisee, Las Vegas school really get excited and embrace a check for only $200 or $500?" The answer is ab - "We must become the change we wish to see in the world." solutely YES! The schools are in desperate need of these funds and put the donation to — Mahatma Gandhi wonderful use. The gratitude, appreciation As 7-Eleven business owners, we often see the opportunity to sponsor a school or a lit - and excitement is amazing! You are instantly the world differently. We have a very unique tle league sports team for at least $100 or up the rock star of 7-Eleven as the thrilled, 24/7 perspective of the human condition at the to $250, and SEI will match these funds. In screaming kids, smiling parents, and over - store level in the communities and neighbor - return we gain the excitement, gratitude and worked and underpaid teachers erupt in thun - hoods we serve. We see the hustle and bustle of appreciation of the young people and their derous applause and cheer. And there's you, people coming and going to work, school, social parents and educators of events, as well as those escaping from their re - that school or team. “Project A-Game allows you to make a ality by coming to our stores for refreshment, Don't Wait To nutrition and for guest satisfaction. Make A Difference. huge impact in the area around your Obviously, at the very core of our business Do It Now! is the invaluable element of “people.” We are store with a very small investment.” nothing without people in need of our brand These are the basic ele - of convenience! We strive to engage them on ments for Project A-Game: a level so they feel important, valued, and ap - 1. You can apply for a grant to sponsor a probably still in your 7-Eleven uniform, stand - preciated. If we do this well, they eventually local school or youth sports team lo - ing in the center of this energy presenting a become loyal to our store and to 7-Eleven. cated in your store's neighborhood. check from your store to the school. Schools Believe me my friends, we change the 2. Franchisees are able to pledge a that receive these funds feel like they won the world every day and—as 7-Eleven now minimum of $100 and up to a max - lottery, and YOU and YOUR store are the face echoes—we make the everyday better. imum of $250 to a qualifying organ - of this blessing of much needed funds! The challenge today is how can we ization for an SEI “$1 for $1” match, We all have good days and, as I call them, change the world AND increase our which doubles your donation. You less than perfect days. Imagine this on either guest counts? As franchisees, we can also divide the sponsorship of those days: a little boy or little girl comes want to be successful in our to different programs or into your store and sweetly thanks you and business and at the same schools, as long as the max - your employees for helping them at their time be viewed as a positive imum donation is $250 per school. Their mom or dad stand next to them influence in the communi - “Project A-Game store. Multiple store owners and smile with sincere appreciation. They ties we serve. How do we do can use the $250 maximum wave to you as they leave your store, so happy. this with our limited amount gives franchisees donation for each store. This is priceless, lasting and purely what we of time and resources? One the opportunity 3. You present the Project A- are all about as 7-Eleven franchisees! answer lies in Project A- Game grant to the school. The deadline to apply for a Project A- Game, a 7-Eleven program to sponsor a 4. Eligible organizations are Game grant is December 15, 2013. There is that allows you to make a school or a little public or private schools, money still available and it is “first come, first huge impact in the area youth sports organizations serve.” Don't miss this opportunity to make a around your store and grow league team for or teams that have a 501c3 huge difference for your store, the brand and your business with a very at least $100, or nonprofit/tax exempt status. the community that you serve and depend on. small investment. Questions on details of the Remember, one person can make a difference Project A-Game is a up to $250, and program? Need to check on and you can help change the world! n terrific program that is the status of your Project A- SEI will match For more Project A-Game information, best example of a 50/50 Game grant application? contact Wendi Hollenbeck at partnership with 7-Eleven, these funds.” Yes, there is a real live per - Inc. It provides franchisees son to contact! Wendi Hol - [email protected] or 972-828-6949.

34 AVANTI SEPTEMBER | OCTOBER 2013

Visit the National Coalition

continued from page 32 Website, www. ncas ef.c om

bacco. Within this segment, sales of cold dis - supermarket giant Tesco to Yucaipa Cos., analysts believe Yucaipa Cos. plans to use pensed beverages grew 11.3 percent. cited debt between $500 million and $1 bil - Fresh & Easy space to relaunch grocery in its court filing. The move “is simply chain Wild Oats Markets Inc., which has the next step in the restructuring process” been closed since 2007. Tesco's Fresh & Easy during the sale and will have “no impact” Declares Bankruptcy on customers’ shopping experience, Fresh & Easy said in a statement. As of early Sep - September Chain-Store Fresh & Easy Neighborhood Market tember, Fresh & Easy operated more than recently filed for Chapter 11 bankruptcy in Sales Increase 150 U.S. stores in California, Arizona and U.S. Bankruptcy Court, reported the Los U.S. chain-store sales posted a gain of Nevada from its El Segundo headquarters Angeles Times. The grocery chain, which is 4.0 percent for the fiscal month of Septem - and had more than 4,000 employees. Some in the process of trading hands from British continued on page 64 FOAC Charity Golf Outing RAISeS Ove R $100,000!

On Thursday, August 22, the spectacular St. Andrews Golf and Country Club set the stage for the 7-Eleven FOAC’s 23rd Annual Charity Golf Outing, which raised more than $100,000 for several Chicago-area charities. Over 200 people participated in the full day event, which benefited the Ann and Robert H. Lurie Children’s Hospital of Chicago, the Gift of Hope: Organ and Tissue Donor Network, and the BTB Foundation. “The late morning rain allowed play to resume after lunch and everyone Not only did participants enjoy a “Meet and Greet” breakfast, a Taste of had a wonderful time,” said Gary Loughridge, Golf Committee Chairman. Chicago BBQ lunch, a cocktail reception, an award ceremony, raffle drawings, “The show of support from our franchisees, our vendor partners, our cus - and a silent auction, but once again Chicago Bears Super Bowl XX Champ Den - tomers, and the community was extraordinary,” he continued. “Their enthu - nis McKinnon (fondly known as “Silky D”) served as the day’s celebrity host. siasm to help our charities was overwhelming, and we are very grateful.” “Dennis is always so gracious to help us out and once again, the out - “Our golf committee truly outdid themselves this year,” said Joe. “They ing was on his birthday,” said Joe Rossi, president of the FOAC. “People worked extremely hard to ensure a successful event, and their efforts paid love spending time with him and talking about his career with the off. Not only was this year’s golf outing very well attended, but we raised Bears,” Joe added. “He’s a great guy and went above and beyond to help more money than ever before,” he adds. “I’m extremely proud of what we us promote this year’s charity golf outing.” accomplished and know that our committee is as well.” n

36 AVANTI SEPTEMBER | OCTOBER 2013

BY BRUCE MAPLES EXECUTIVE CHAIRMAN, NCASEF

It is election time again at the National and we donate to local schools and “Throughout the 30 states Coalition, and it’s a good time to think many, many charities: MDA, St. Jude about where we are and where we are Children’s Hospital, the American in which 7-Eleven operates, going. Every two years the National Cancer Society, Susan G Komen for the 7-Eleven franchisees are Coalition Board elects half of its exec - Cure, local hospitals, Duchenne’s, and utive team. Last year we held elections many, many more. known in our communities for the three vice chairman positions, Throughout the 30 states in which as honest and hardworking, aHnd byo then timee ysou treayd t,h isI, ant thte e7-gElevren iopteryates, 7A-Elevnen frdanch iTsees rust October Board meeting we will have are known in our communities as hon - and among the first to pitch in elected the chairman, executive vice est and hardworking, and among the during times of disaster, too .” chairman and treasurer. first to pitch in during times of disaster, As we approach this election I am too. By and large we are successful be - reminded of events of the past year and all the hard work we have put in work - fairness, and integrity in the con - ing on franchisee issues and the 7- duct of their relations as franchised Eleven system. I believe absolutely that owners of 7-Eleven stores. Every franchisees form the heart and soul of franchisee is an independent con - the 7-Eleven system, and that the Na - tractor, and solely controls the op - tional Coalition represents the fran - eration of their store(s). The chisee community. National Coalition expects every Earlier this year when news broke member of our organization to op - of problems at some northeastern 7- erate their stores in an ethical and Elevens, my first reaction was one of honest manner, in accordance with great concern. I wondered if this could be a widespread problem and how it “Honesty, integrity and trust have long been cornerstones of would affect our system, our customers, and our brand’s reputation. the franchisee mindset, and the basis of the National Coalition.” It is clear from the writing of our first bylaws that honesty, integrity and cause we get involved. We all U.S. laws and consistent trust have long been cornerstones of know our customers by with the 7-Eleven franchise the franchisee mindset, and the basis of name, and we grow our agreement.” the National Coalition. As storeowners businesses by being con - We still operate, and will and small businessmen we get involved nected to our customers and always operate, by these prin - in our communities, our local govern - our communities. ciples. We must expect the ments and our schools. Oftentimes, a When news of the trouble in the highest standards of all our fran - neighborhood store can help stabilize a Northeast broke, we released the follow - chisee members at all times. It is the community. We ing statement, which reflects the lan - only way we can compete in our indus -

BRUCE MAPLES sponsor sports guage in our bylaws: try and maintain successful relation - CAN BE REACHED AT teams, and we con - “Members of the National Coali - ships with customers, our vendors, our 520-577-8711 or tribute to events. tion of Associations of 7-Eleven employees and 7-Eleven. nationaloffice@ ncasef.com We sponsor clothes Franchisees pledge to observe the In 2013, the 7-Eleven franchised and food drives, highest standards of competency, continued on page 40

AVANTI SEPTEMBER | OCTOBER 2013 39 continued from page 39

system outpaced the largest competitors cent in merchandise sales growth, and 2 the margin up over 50 percent to fill the in the industry. We passed Couche percent in margin. A lot of this comes void left by the decline of tobacco. Tarde/Circle K (5,200 stores) by 2 per - back to the franchisees, our reputations, GEA used to be a measure of what the and knowing our neighborhoods and customer saw. Today it is used as a snap - “Today, 7-Eleven’s emphasis our stores. shot for store cleanliness. I’m pleased to Today, 7-Eleven’s emphasis on store say SEI is reworking the GEA form, but on store grHowoth,n cleeasnltinyes, sI, ntegrgowrthi, tclyean Alinenss, dand Tfrershu ansd thot we are still concerned because the GEA and fresh and hot foods foods continue to challenge the fran - bar keeps moving, and franchisees often chisee community. Every day at the Na - don’t know where the bar is. A moving continue to challenge the tional Coalition we continue to work on target is unfair to franchisees, and trans - franchisee community. Every issues that affect franchisees and our forms into a communications issue. businesses. Once, as a young franchisee I visited day at the National Coalition Hot foods is a great program but the Anheuser Busch brewing plant. I was we continue to work on issues we need to improve profitability. We lucky enough to see above the door a will have trouble being successful in the sign that has stuck with me for my entire that affect franchisees and hot foods category if we sell products career: “Our business is making friends.” our businesses.” below our average store margin. We I believed this then, and I believe it now. have a large investment of time and Honesty, integrity and trust are a large labor, and we need a program that gets part of the equation.

BY JIVTESH GILL, EXECUTIVE VICE CHAIRMAN, NCASEF

Historically, Asset Protection has been As a result of our meetings with Asset “Beginning early part of our operation, but they’ve usually Protection, on 7-Connect there are now been in the background and normally not complete tutorials on audit-to-audit next year, fran - that involved in the daily operations of our analysis, and how to understand the Fi - stores. Recently, however, all of that has nancial Impact Worksheet. These tutorials chisees will have changed. For about a year now Asset Pro - contain information on how things are access to the teFctioIn hWas beesn a ,v erPy acOtive pSart o fA storencaalclulyatedt, sio cif as sto,r e receives an FIW operations, and this has created some anx - the franchisee has some tools to help un - weekly POS Analytics iety in the systemA. Frnanchdisee s Tare chon -e deDrstanVd it.R We adSvisee thcat yuou rpreipatre y rSepoyrt swithe demtailed information cerned about what’s going on with the questions and respond to the FIW, and if Financial Impact Worksheets (FIWs), on the 16 transaction types.” what’s going on with POS Analytics (Red, Yellow, and Green), and what’s going on with the new DVR security system. ing promos, transactions with tobacco dis - The National Coalition Executive counts, transactions with non-tobacco dis - Board has held several meetings with Asset counts, non-scanned refunds, non-scan- Protection in the last several months to dis - ned sales, scanned refunds, manufacturer cuss these three topics, and some progress coupons, PLU lookups, age cancel verifi - has been made. I'd like to share where we cation, memory cancels, no sales, price now stand on these issues. overrides, change makers, and penny Presently, many stores are being hit rings. Depending on where you fall on with FIWs—or the charge-backs resulting those 16 criteria, stores can be flagged Red, Yellow, or Green. “There are now complete tutorials on audit-to-audit But again, there is a lot of confusion and a lack of understanding among fran - analysis and how to understand FIWs on 7-Connect.” chisees on why a store is Red, Yellow, or Green—and especially WHY a store is Red in FIWs—which are typically triggered by need be, challenge it. Don't let it sit around and what can be done to fix the issue to audit-to-audit research, by alleged misre - for 60 days and let it impact you. We also make it Green. LONs and breaches are porting promotional activity at the stores, urge everyone to look at the tutorials. being given on the FIW and charge-back or by alleged mistreporting of manufac - The other area of concern among situations, as well as stores being Red on turer coupon activity. However, there’s a franchisees is POS Analytics (Red, Yellow, the POS Analytics. Any time you talk lack of understanding among franchisees and Green), where stores are flagged ac - about LONs and breaches it creates a neg - about how these charge-backs and FIWs cording to the daily transaction data. All ative situation and puts franchisees on the are calculated. Even some field consultants POS activity now gets funneled through a defensive. It also takes the focus away from and market managers don’t fully under - special SysRepublic EBT reporting tool improving sales and gross profit. stand how FIWs are calculated. One reason called Secure, which is updated with T- In our meetings with SEI and Asset for this is a lack of sufficient support to ex - Log transactions on a daily basis. Secure Protection, we said franchisees would like plain how these monitors 16 different transaction types for to have the tools at the store level to look JIVTESH GILL packets are to be exceptions based on volume, value, and at the same information that Asset Protec - CAN BE REACHED AT understood and percentage of sales (which are reviewed tion is viewing. Then stores could examine 209-481-7445 or how the stores can via a weekly summary report): aborts, [email protected] the information in detail and be proactive respond to them. item voids, negative transactions contain - and fix the problems. After some discus - continued on page 44

AVANTI SEPTEMBER | OCTOBER 2013 43 continued from page 43 sion, we have a commitment from Asset “Mediation on the DVR security have been in mediation with our fran - Protection that we'll have a weekly report chisor over the use of the DVR system, available to all stores on the 16 transaction system has been delayed by the particularly what information they get types at the beginning of next year. SEI will Justice Department due to the from our stores via the system and for what need some software development to ac - purpose the information will be used. complish this, but we should have a report recent events on the East Coast.” We're making progress and hope to have Wavailhabele rtoe us Wby thee bSegtinanningd o f 2014. something to share soon, but the Justice The report will have detailed informa - Department has delayed mediation due to tion on the store’s activity related to those about 4,200 stores have the ClickIt DVR its investigation on the East Coast matter. 16 criteria, how that information compares system installed, and the rest have an ear - We have asked SEI to come back to the to your market and zone, and it will be bro - lier DVR platform. SEI said it plans to up - table as soon as possible to resolve this ken down at the cashier level so you can tell grade over 1,000 more stores to the ClickIt issue, because it is important to fran - which cashiers have high volume activity DVR system by the end of this year. This chisees. on these negative transactions. This weekly system features one big fisheye lens camera As your national representative I un - report will be delivered to the stores via e- in the middle of the store that provides the derstand these issues have been on the mail, and we are excited because this will ability to zoom in and out without losing minds of franchisees for many months. allow stores to be proactive moving for - clarity, and it’s able to capture everything We’ve voiced concerns to SEI and some ward. that happens in the store. It also gives SEI progress is being made, but we hope that The third concern is the new DVR se - the ability to view our stores remotely. moving forward our franchisor will work curity system—specifically, the purpose of The biggest concern with the ClickIt closer with us to resolve similar issues be - the new system and how it's going to im - DVR system is how it's going to be used by fore they become too distracting and affect pact the way we do business. Currently, SEI and for what purpose. As you know, we our ability to grow sales and profits.

BY CRAIG P. KENNEDY, ESQ. GENERAL COUNSEL, NCASEF

To those franchisees who attended my and is aggressively seizing franchised stores able for any income tax and other taxes presentation on avoiding employment mis - for violations, particularly when combined not paid by the employer and/or em - takes at the last NCASEF Convention in with other problems in the store operations. ployee, and, since it is a federal crime to Las Vegas, please forgive me because you In order to avoid major problems with fail to withhold taxes for an employee, may have already heard all of this. Any there is an additional penalty of 100 per - Avanti readers who missed my presenta - cent of the taxes not withheld for both tion can benefit from the information the employer’s portion and the em - below. Most of you may already know ployee’s portion. There is also interest. Cmucoh of tmhis basmic and loogicnal inf oMrmatioin, stakes Of Smal•l E mployees can challenge the amount of but it is dispiriting to me how many 7- hours worked or claim they never were Eleven franchisees fail to follow these im - paid for meal breaks or other breaks. portant rules, resulting in serious troubles Business Emp• Claosh eympleoyeers us ually are not covered with their employees, 7-Eleven, Inc. and by workers’ compensation insurance. If an governmental regulators. employee makes a Workers’ Compensa - Failure to follow employment laws tion claim, the employer has to pay all causes very expensive problems for small damages. This can be financially ruinous. business owners, and 7-Eleven franchisees are no exception. At my firm, we regularly “Failure to follow employment laws causes expensive problems for encounter difficulties franchisees suffer due to their failure to avoid common traps when small business owners, and 7-Eleven franchisees are no exception.” employing staff for their stores. Franchisees can avoid these difficulties by following the employees in your stores, you and your store No good things come from paying an simple rules described in this article. managers should follow these basic rules: employee in cash, only bad things. Many of Earlier this year, SEI instituted a pro - them can ruin your business. Franchisees gram of certifying compliance with the fed - Rule No. 1 should never pay employees in cash. eral law by inspecting the USCIS Never Pay Employees in Cash Employment Eligibility Verification Form I- Employees should always be paid Rule No. 2 9s and requesting certifications from certain through the 7-Eleven payroll system. Have Never Hire Undocumented Workers franchisees that an I-9 has been completed the employee log in and out on the com - During 2013, numerous franchises for each employee due to notorious prob - puter himself/herself (see Rule No. 3, have been terminated by SEI because, lems of certain franchisees hiring undocu - below). There are many reasons for this. among other things, they hired undocu - mented workers. Please read Executive Vice • Employees “forget” having been paid in mented workers. In several recent cases, President Jivtesh Gill’s article in the previous cash. Later, when they go to court or Federal judges have granted Avanti regarding this issue. SEI and various to the State Labor Commissioner, preliminary injunctions in governmental agencies are watching to be they will deny having been favor of SEI terminating sure you comply with the law, and your fail - paid and you will have no storeowners’ franchises with - ure to do so can be catastrophic. proof they were paid and/or out any right to cure, at least SEI often uses storeowners’ illegal em - how much they received. in part because the franchisees ployment practices to terminate franchises. • Employees almost never knowingly hired undocu - These practices include paying cash to em - report the income paid to mented workers and used false ployees and hiring them in cash on their tax re - social security numbers for CRAIG P. KENNEDY undocumented turns or pay the taxes on that employees who were not eligi - CAN BE REACHED AT 714-557-3600 or workers. SEI is es - money. If the Federal or State govern - ble to work in the . [email protected] pecially sensitive to ment learns about the income paid to the these issues now employee in cash, the employer is fully li - continued page 48

AVANTI SEPTEMBER | OCTOBER 2013 47 Problems with hiring undocumented be sure all of their employees use it them - • Wage and hours claims before state labor workers: selves. Employees should clock in upon ar - boards or state courts are determined by • Potential federal criminal liability: For riving to work, clock out for the meal time cards or other evidence of the em - example, Jose Calhelha, former owner of break, clock back in after the meal break, ployees’ clocking into and out of work. ten Connecticut Dunkin’ Donuts, pleaded and clock out at the end of his/her shift. • When employers (a) have not provided a guilty on December 29, 2007 to illegally • It is essential that the employee inputs time clock or computer sign in facility; (b) encouraging aliens to come to the United the time himself/herself, and not the fran - have failed to have the employee use the States and illegally harboring aliens in chisee. Franchisees should train all of their sign in facility; or (c) have signed in on be - Guilford ConCnecoticumt. In mexchaongne fo rM his isetmaplokyees osn thOe prfo pSer mannaerl olf clBock u- shianlf oef thse esm pEloyemes, thpe elmoployyeer wrill s plea, he was sentenced to serve ten lose the case. months of imprisonment, followed by two Rule No. 4 years of supervised relief and fined one “Failure to have employees Always Pay the Minimum Wage million dollars in monetary damage. Employers should know the federal • Potential federal civil liability: Potential keep track of their own time, minimum wage and their state’s minimum fines of thousands of dollars per undocu - including all hours worked, and wage, and must pay the minimum wage to mented worker. all workers. • Potential loss of franchise: As noted overtime, causes numerous Even though 7-Eleven sets these on above, SEI is very alert to the hiring of un - problems leading to employer their computer to prepare the paychecks for documented workers and recently has ter - your employees, you are responsible for all minated franchises for this reason. liability to the employees.” issues related to employees, so you need to Do not hire undocumented workers. If know the local laws and be sure the proper you have any working for you now, termi - ing in and out on the computer at the time amount is being paid. Some states, counties, nate their employment immediately. of hiring. Properly keeping track of their time must be one of the most important and cities have different minimum wage Rule No. 3 duties of each employee, and failure to rates in excess of the federal rate. Have Employees Keep Track of properly clock in and out must be grounds The current federal minimum wage Their Own Time for discipline—up to and including the is $7.25. The current state minimum wages can be found at this webpage: Failure to have employees keep track termination of the employee. www.dol.gov/whd/minwage/america.htm. of their own time, including all hours • When an employee clocks in and out From time to time the franchisee worked and overtime, causes numerous on the computer and a claim is brought should check that the proper wage is being problems leading to employer liability to by that employee, the franchisee can paid because the franchisee is responsible the employees. order the records from 7-Eleven, which to be sure the minimum wage is paid to • Employees must clock into and out of are written documents showing the pre - his/her employees. work every time they come into work, cise times the employee clocked in and leave for lunch, return from lunch, or leave out on the computer. Problems with failure to pay the work at shift’s end. • When the employee signs in and out minimum wage: • The employer will be liable to the em - “Employers should know the federal minimum wage and their state’s ployee for additional wage. If the hours worked are overtime, they will be at time mimimum wage, and must pay the minimum wage to all workers.” and a half. • There are additional penalties to the em - • Employers must have time clocks or himself/herself either on the computer or ployer, including attorneys’ fees and costs. other means for hourly employees to keep a time clock, every time, the employee has track of their hours. 7-Eleven has a great created a good record of the actual time Rule No. 5 system for employees to clock in and clock worked by the employee that will be be - Always Pay Overtime out on the computer. The computer re - lieved by the Labor Commissioner and/or All employees—with the exception of ports the time directly to 7-Eleven for the the courts. “exempt employees”—are entitled to be calculation and payment of hourly wages, Problems with not having employees paid overtime. “Overtime” under federal including overtime. All franchisees should clock into and out of work: law is all hours in excess of 40 hours per continued page 49 48 AVANTI SEPTEMBER | OCTOBER 2013 week. This term also has different meanings Minimum Wages By State in different places. For example, in California overtime is more than 8 hours in a day or 40 Presented below are the state minimum wages as of January 1, 2013. The hours in a week. data was culled from the U.S. Department of Labor’s website “Exempt” workers are not required to be (http://www.dol.gov/whd/minwage/america.htm#Consolidated). paid hourly wages. The primary exemption The current federal minimum wage is $7.25 per hour. The data reveals there is for store managers who may be executive employees, provided their primary duty (at are four states that have a minimum wage set lower than the federal minimum least 50 percent) is in managing the enterprise wage, 19 states ( D.C.) with minimum wage rates set higher than the fed - or a department of the enterprise, customar - eral minimum wage, and 22 states that have a minimum wage requirement ily and regularly directing the work of two or that is the same as the federal minimum wage requirement. The remaining five more other employees, and being able to hire states do not have an established minimum wage requirement. and fire or suggest changes in the status of other employees. Very often, managers are The State of Washington has the highest minimum wage at $9.19 per hour. treated as salaried employees on the basis of The states of Georgia and Wyoming have the lowest minimum wage ($5.15) of this test: the 45 states that have a minimum wage requirement. • Is the worker paid a salary that is not sub - ject to reduction due to the number of According to the Department of Labor, the state minimum wage rate require - hours worked or the quality or quantity of ments, or lack thereof, are controlled by legislative activities within the individ - the work performed? ual states. Federal minimum wage law supersedes state minimum wage laws • Is the worker paid at least $455 per week? where the federal minimum wage is greater than the state minimum wage. In In some states, this may be higher; for ex - those states where the state minimum wage is greater than the federal mini - ample, in California it is $640 per week. mum wage, the state minimum wage prevails. • Is the worker's primary duty to manage the company or a recognized department or subdivision of it? Greater Than Federal Equals Federal Virginia • Does the worker's primary duty include Minimum Wage Minimum Wage West Virgina the regular management or supervision of Alaska—$7.75 Delaware Wisconsin two or more employees? Arizona—$7.80 Hawaii • Does the worker have authority to hire or California—$8.00 Iowa Below Federal fire other employees, or is he or she in a po - Colorado—$7.78 Idaho Minimum Wage sition where his or her suggestions as to hir - Connecticut—$8.25 Arkansas—$6.25 ing, firing, advancement, or other change of Indiana District of Columbia—$8.25 Georgia—$5.15 status of other employees are given particu - Kansas Florida—$7.79 lar weight? Kentucky Minnesota—$6.15 Illinois—$8.25 Maryland Wyoming—$5.15 Problems with failure to pay overtime: Massachusetts—$8.00 Nebraska • Employer must make up overtime pay and Maine—$7.50 New Hampshire No Minimum there may be additional penalties. Michigan—$7.40 Wage Required • Potential claims at labor board or in court. New Jersey Missouri—$7.35 Alabama • Attorneys’ fees and costs. New York Montana—$7.80 Louisiana North Carolina Rule No. 6 Nevada—$8.25 Mississippi New Mexico—$7.50 North Dakota Always Give Rest Breaks South Carolina Ohio—$7.85 Oklahoma Many states require employers to give Tennessee Pennsylvania rest breaks; for example, a 15-minute paid Oregon—$8.95 break in the middle of each 4 hours of work. Rhode Island—$7.75 South Dakota Franchisees should determine their state’s re - Vermont—$8.60 Texas quirements and tell all employees upon hir - Washington—$9.19 Utah continued page 50

AVANTI SEPTEMBER | OCTOBER 2013 49 ing, from time to time, and in writing in a “on-duty” and the employee is entitled to wages are paid and the period covered by sign posted in a conspicuous place they are wages during the meal period. An “on-duty” such payment; and, required to take these 15-minute rest breaks. meal period is permitted only when the na - • W-4 and I-9 for each employee. Problems with failure to give rest breaks: ture of the work prevents the employee from Tip: Keep these records off-site. Em - taking an “off-duty” break, such as an em - ployees sometimes steal records to destroy • The penalty for each failure to give a rest ployee working the “graveyard shift,” and evidence for lawsuits against franchisees or break is an hour of compensation at the em - when the parties agree in writing to an “on- those brought by franchisees. If requested ployee’s regular rate. duty” meal period. This written agreement records are off-site, you generally have 72 • Potential claims at labor board or in court. Common Mismtuast pkroevidse t hOat thfe eSmpmloyeae calnl r eBvokue shionurs eto psrosvi dEe thmem. ployers • Attorneys’ fees and costs. the “on-duty” agreement at any time. This Franchisee Excuses For These Mistakes agreement must be in writing. 7-Eleven pro - Rule No. 7 There are many excuses for the failure vides a form for this purpose. Always Give Meal Breaks to follow these simple but essential rules. Many states require employers to give Problems with failure to give meal Here are a few: their workers meal breaks. Franchisees breaks: • He/she is my best employee, the most should determine their state’s requirements, • The penalty for each failure to give a rest dedicated and hardworking. insist that all of their employees take meal break is an hour of compensation at the em - • He/she says he/she needs the overtime, I breaks when they are entitled to them, or to ployee’s regular rate. can’t afford to pay time and a half, so he/she waive them in writing to take on-duty • Potential claims at labor board or in court. agreed to be paid straight time for overtime. breaks if that is permitted by the state law. • Attorneys’ fees and costs. • He/she is like family. For example, under California law, if • I paid for his/her hospitalization/kid to the employee works more than five hours, Rule No. 8 go to college/chemotherapy he/she is entitled to a 30 minute unpaid off- Keep Records of All Exempt and Non- treatments/new car/rent deposit. duty meal break and the franchisee must exempt Employees • He/she would never do anything against give it unless the employee is working more With the exception of the I-9 and the me. than five (5) hours but less than six (6) W-4, the employer is not required to keep • He/she personally signed all of his/her hours, in which case the employee can agree these records in any particular format, but time cards. he/she will not take a meal period. If the em - they must generally include the following • I cannot get my employees to clock in and ployee agrees, this agreement must provide information: out properly. I will have to fire them all! that the employee can terminate the agree - • name of the employee; • It’s so hard to get good employees. ment at any time and should be in writing (do not rely on an oral agreement). “Franchisees should insist all employees take meal breaks In the event the employee works more than ten (10) hours but less than twelve (12) when entitled, or to waive them in writing.” hours, the employee is entitled to two meal breaks; however, the employee can agree • home address; Remember, no good deed goes un - he/she will not take the second meal period • date of birth, if the employee is under age punished! Often the employees to whom unless the first meal period was not taken. nineteen; you have been the kindest are the ones In the event an employee works more than • sex of the employee; who will go to the labor board or to court twelve (12) hours, he/she shall be entitled to • occupation in which the employee is em - after termination to try to collect from take a meal period while “on-duty” at the ployed; you for violations of the laws relating to end of ten (10) hours, and shall be paid for • day of the week and time at which the employment. Trust no one. Your kindness the time of the meal period. Again, if the workweek begins; means nothing after the employment re - employee agrees not to take a second meal • the regular hourly rate and the basis on lationship ends. Follow the rules for every break, the agreement must provide that the which wages are paid; employee. employee can terminate the agreement at • hours worked each day and week; Finally, each state has different laws reg - any time and should be in writing. • daily or weekly straight time earnings; ulating employment. I recommend you Unless the employee is relieved of all • weekly overtime excess compensation; check with a lawyer in your state with duty during a thirty (30) minute meal pe - • deductions from or additions to wages; knowledge of its laws to be sure you are in riod, the meal period is considered to be • wages paid each pay period, and the date compliance. 50 AVANTI SEPTEMBER | OCTOBER 2013

Vice ’ Chairs SForuAm LES PLAN VERIFICATION ASSESSMENT BY JAY SINGH VICE CHAIRMAN, NCASEF

A few months back, SEI decided to check compliance on one more part of “It is unsettling that our franchisor deems it appropri - our store operations and named it “Sales ate to put pressure on franchisees to launch a sales Plan Verification Assessment.” As you are all aware, the Merchandising Depart - plan that is not finalized in all regards.” ment—with the cooperation of other SEI All these efforts are being made to chandise the kit. departments—puts in place the sales ensure the successful deployment of the • The new POP holder hangs lower on plan for a particular month to be rolled sales plan. Now SEI has developed a form the shelf that can cause vault/merchan - out in all of our stores. This plan may for the business consultants to use on the dise issues on tight shelves. vary region to region, and no doubt it re - very first day of the sales plan launch to • A number of stores had issues with all quires a lot of hard work in advance to verify that all stores comply 100 percent. Promo Master offers not ringing. put all the different aspects of this plan There are a lot of columns in that form to • 2/$4 offer missing 3 of the in place so it rolls out smoothly. The sales check that everything from storefront 15oz double shot can SKUs. plan consists of different types of promo - banners and window signs to new shelf • New Dipping Sticks for Sanden case tions, new POP, new item roll outs for talkers and the new items are in place. In scan $1.59 but POP says $1.69 and 2/$3. that particular month, new schematics, my area, business consultants and market Some stores did not receive POP. display instructions—all the necessary managers visit the stores together to • Pure Life/Lipton Naturals 2/$2.22— tools, and lot of other stuff to make sure check the readiness of the store from the not all items scanning in offer. we follow the instructions. franchisee’s side. • PMU Phone Handset fixtures—a Business consultants now have the advantage of being connected to fran - chisees via text messaging and e-mail, “Business consultants now have the advantage of so they are able to send all the informa - texting and e-mail to communicate with franchisees tion to us on a daily basis to make sure we order on a daily basis to make sure we get the message and the new items comply with the monthly sales objectives.” well in time to comply with the Somehow, however, every number of stores have not received the sales plan. Lately, month there is a lot of stuff that is fixture yet. there has also been not ready from SEI’s side, most of The list goes on. Although SEI of - a lot of pressure to which are merchandis - fered solutions and fixed these problems order more ship - ing and IT prob - quickly, I find it unsettling that our fran - pers, the reason lems that prevent chisor deems it appropriate to put pres - being soft sales. Lots of the successful imple - sure on franchisees to successfully e-mails and text messages on a mentation of the sales plan on launch a sales plan when all the wrinkles daily basis from business consultants to the first day. Here is a list of some of the have not been ironed out at its end. Most keep us in compli - things that went wrong with the Sep - of us follow the strict compliance check, JAY SINGH ance on all kinds of tember sales plan, taken from an e-mail order accordingly, and try our best to CAN BE REACHED AT stuff, and that is a sent to franchisees by a corporate staff make the sales plan successful. Maybe 702-249-3301 good thing to com - member: SEI should ease off of this compliance [email protected] municate more effi - • Stores did not receive an adequate check until it can deliver a trouble-free ciently. number of large POP holders to mer - sales plan.

AVANTI SEPTEMBER | OCTOBER 2013 55 Sell 29 times more in dollar sales when you stock Duracell than when you stock only 7-Select Private Label! Vice ’ Chairs Forum LET THE “SELL BY” DATE FIT THE CRIME BY ROGER ST. GEORGE VICE CHAIRMAN, NCASEF

SEI has recently taken a very aggres - “Instead of punishing us for not sive stance towards out-of-date products in our stores, issuing Letters of Notifica - pulling expired or nearly ex - tions (LONs) and breaches even for out- pired items in a timely manner, of-date goods that are in the back room and not readily available for purchase by SEI should develop a system a customer. Has paranoia run rampant that allows us to give these within SEI? Franchisees are NOT trying to poison our customers. In this instance products to organizations that the punishment seems excessive, espe - help feed the needy.” cially considering the true meaning be - hind these “expiration” dates. that as much as 40 percent of the coun - Recently, there has been national try’s food supply is needlessly thrown out every item and remember to pull the awareness regarding the date placed on because consumers don’t fully under - item on the expiration date. They may food items for American consumers. The stand this, and a recent article in the Los not even be working on that specific date. date on a product can mean many things. Angeles Times stated that up to 90 per - SEI itself has arbitrarily changed the Some products have a date that shows a cent of Americans prematurely discard holding time for roller grill and hot food “use by” date. Other products have a “sell edibles because they misinterpret the items, sometimes increasing the holding by” date or “best by” date. So what do dates stamped on products. time and for other items decreasing the these dates really mean? Doug Rauch, the former CEO of holding time. Many times SEI has ig - The truth is the dates are placed to Trader Joe’s, recently told grist.org that he nored the manufacture’s established shelf help stores manage their inventory. It is wants to open a store to sell expired or life and reduced the shelf life to meet their own unexplained criteria. The question is what will SEI do to “The ‘best by’ or ‘use by’ label does not encourage the proper disposition of ex - pired or nearly expired food products so indicate a deadline after which the product they can meet the dietary needs of those will go bad, but instead is an estimate of less fortunate via food banks, shelters and community kitchens? Instead of punish - how long a product will be at peak quality.” ing us for not pulling expired or nearly to encourage stores to sell a product nearly expired food that is discarded by expired items in a timely manner, SEI within a specific time frame so the item other stores. He’d theoretically like to open should develop a system that allows us to still has a shelf life once it’s purchased. several stores in lower income areas to help give these products to organizations that The “best by” or “use by” label does not residents eat healthier meals and tackle help feed the needy, since much of this indicate a deadline after which the prod - problems such as obesity and diabetes. food is still edible. Properly documented uct will go bad, but instead is an estimate In view of this, one has to ask why donations of these products can also have of how long a prod - SEI is so quick to issue LONs and significant tax implications that can ben - ROGER uct will be at peak breaches for dated products. There are efit a franchisee’s tax burden. Why can’t ST. GEORGE CAN BE REACHED AT quality. The Natural more than 2,000 items in a typical 7- SEI help franchisees turn expired prod - 360-500-1248 Resources Defense Eleven store. Even the most diligent ucts into a carrot rather than using it as [email protected] Council estimates order writer cannot check the date on a stick?

AVANTI SEPTEMBER | OCTOBER 2013 57

Vice ’ Chairs Forum COMMON SENSE COMMUNICATIONS BY JAS DHILLON VICE CHAIRMAN, NCASEF

Organizations of every type and size paid volunteer workers who donate their I live to see a day when the elected Vice live and die by their ability to communicate, time and energy. While some FOAs are Chairs of the National Coalition are as - both internally and externally. This holds highly structured, others are more informal. signed by the Chairman a geographic group true for corporations, non-profits, govern - Still, the key ingredient is how well the FOA of FOAs in order to assist them in member - ments, and even families. The free flow of serves its members. If the local membership ship services and member issues. I live to ideas and information is essential to the is dissatisfied, they can change leadership or see a day when those regional FOAs have proper functioning of a vibrant business sys - form a new group. In either case, the deci - regular meetings—either electronically or tem, and the ability to effectively articulate sion is a local one. At the national level, the in person—to encourage and assist fran - needs, vision, purpose and facts separates NCASEF must ask, “Are the franchisees in chisees in their day-to-day operating chal - success from failure. The National Coalition that marketplace connected to the greater lenges, regardless if it is a “one store” issue or a market, Zone or global issue. To that one franchisee, it is THE issue. “Efficient and effective communication is the I live to see a day when the National Coalition can meet and hear the reports out most important service the National Coalition of market XYZ about store XYZ or franchisee can provide for our 40 member associations.” XYZ. I work hard with my local FOA and the National Coalition, and it is great to resolve is no exception to this dynamic. For the Na - franchise community?” This is vital to issues to a point where both franchisees and tional Coalition, efficient and effective com - achieving unity of purpose and unity of sys - SEI profit. Is it possible? How can we afford munication is the most important service we tem growth. NOT to do it? We have the technology and the can provide for our 40 member associations, At our quarterly National Coalition resources, but do we have the collective will? our vendor partners and most importantly, Board meetings FOA representatives spend Further, with regard to FOAs, no asso - individual franchisees. a lot of time, effort and energy discussing ciation or individual should ever be subject Each local FOA is an independent, self- franchisee issues. Do all agenda items get an to a prior restraint of thought or word. This supporting organiza - airing? Is effective action taken in all cases? could be in the form of written communi - JAS DHILLON tion with as many Is value generated for the typical franchisee cation in a newsletter or requiring that CAN BE REACHED AT 818-571-1711 different operating working long hours in his or her store, hop - questions be submitted in advance for a or styles as there are ing for and expecting a ray of hope and a market meeting. The free flow of ideas and jasdhillon@ groups. FOAs are future with 7-Eleven? I believe WE CAN information is essential to proper function - rocketmail.com often staffed by un - DO BETTER! ing of a vibrant business system. Sometimes it is the hard questions that effect lasting change. I recall a time when a key element Join The National Coalition of TK training was “challenge the staus quo.” What changed? The strength of an independent trade association lies in its ability to promote, protect and advance the best in - Our industry is undergoing rapid terests of its members, something no single member or advisory group can achieve. The independent trade asso - ciation can create a better understanding between its members and those with whom it deals. National change. The once heralded relationship be - Coalition offices are located in Tucson, Arizona. All queries and requests for information should be directed to: tween SEI and some franchisees has become at best adversarial. Now more than ever fran - National Coalition Of Associations chisees from all 30 states in which 7-Eleven Of 7-Eleven Franchisees operates must be connected to their counter - 3561 East Sunrise Drive, Suite 135, Tucson, AZ 85718 parts all over North America. Only the efforts Office 520-577-8711 • Fax 520-577-4688 of the National Coalition can accomplish this. E-mail: [email protected] What do you think?

AVANTI SEPTEMBER | OCTOBER 2013 59

Franchisee Guest Column

A More Equitable Partnership Will Strengthen 7-Eleven

By Paul Lobana, Vice President, Southern California FOA

It is imperative in any business relationship that both sides in about 50 percent to 51.7 percent to SEI. feel the arrangement is equitable. This encourages both parties to If the store's gross profit for the 12-month period is over work hard to make the business at hand as successful and prof - $750,000 but not more than $1,000,000, the 7-Eleven corporate itable as possible. This is especially true in franchisee/franchisor charge will be $388,000+0.56 (gross profit for last 12 months— relationships. However, when one side unilaterally changes the $750,000) divided by the gross profit for the last 12 months, or terms of the arrangement, it sets up the potential for discontent if 51.7 percent to 52.8 percent to SEI. the other side feels the new terms are not fair. If, however, the store's gross profit for the 12-month period is For this reason, it is important that both sides be involved in over $1,000,000 the 7-Eleven corporate charge will be discussions regarding substantial changes to any long-standing $528,000+0.57 (gross profit for last 12 months—$1,000,000) di - business arrangement. Failing to do this can result in the disaf - vided by the gross profit for the last 12 months, or 52.8 percent to fected side becoming demoralized and losing interest or ambition 54 percent to SEI. to work hard to make the entire system work at its best. This clearly shows that the higher the store’s profit, the higher In this light, I wish to address some of the terms of the the split for SEI. This reduces the incentive for the franchisee to new franchise agreement that I believe can be im - increase their gross profits, and in effect punishes proved. I would also like to express a couple their success. The tier structure should be the of ideas I believe would increase morale other way around, thereby providing a huge in - among franchisees, and in doing so, in - centive for franchisees to work harder to crease profits for all. make their stores more profitable. SEI would First, I would like to address the also reap the benefits of the resulting in - new franchise agreement’s profit split. creased store profitability automatically It is quickly becoming clear that fran - through increased volume. chisees are feeling the pinch now that On top of this split, there is no provi - SEI has produced the new franchise sion for inflation. We all are aware that there agreement disproportionately in their favor. Al - is roughly a 3 percent inflation rate every year in though this new tier profit split has already been the economy as a whole. Eventually, all the stores implemented in the new agreement, I think it is will be making gross profits of more than $500,000 worth sharing for those unfamiliar with it. and the SEI charges will be accordingly higher in every Before the new tier profit split arrangement, the profit share case, without any increase in real income to the franchisee. The was 50 percent for franchisees and 50 percent for SEI. The new inflation rate, as provided by the federal government, must be ac - profit split, however, is not equitable in my view. The following is counted for in these formulas. When inflation increases the cost a basic outline of how the new split works. of goods and services economy-wide, a higher income does not If the store's gross necessarily provide for a better living. Everyone has experienced “Franchisees are profit for a 12-month pe - this. When the cost of living increases, it requires more income riod is over $500,000 but just to stay even. clearly feeling not more than $750,000, In the case of the franchisee/franchisor spits shown above, the 7-Eleven corporate higher profits in an inflationary economy do not necessarily the pinch of the charge will be mean more real income for the storeowner, yet the franchisee is new franchise $250,500+0.55 (gross required to relinquish more and more of the store’s profits to the profit for last 12 months— franchisor. This results in a double hit on the franchisee with in - agreement.” $500,000) divided by the flation in general on one side and SEI taking a higher percentage gross profit for the last 12 on the other. Even the federal government, including the IRS, rec - months. This would result continued on page 62

AVANTI SEPTEMBER | OCTOBER 2013 61 Franchisee Guest Column

continued from page 61 ognizes the eroding nature of inflation and foods and coffee counters with new coffee invest their all in the business and the indexes many salaries, pensions and other urns. Special advertisement money should brand with complete loyalty. When a fran - benefits accordingly. Without this “index - also be allocated solely for hot foods pro - chisee has dedicated so many of their lim - ing for inflation” the consumer, or in this motions. This would quickly set 7-Eleven ited years to helping improve the image of case the franchisee, is left with their in - apart from the competition in the minds the brand to everyone’s benefit they should come and spending power unfairly eaten of the consumer and make us the “go to” not, in the end, be put metaphorically on away over time to the benefit of SEI. place for such products. an ice floe and shoved out to sea. The second item I would like to ad - Finally, I would like to address an dress is with respect to fresh food sales. It issue with respect to the long-term 7- Contact Paul Lobana at 805-203-2527 or is my understanding that SEI is making Eleven franchisee. There are many fran - [email protected]. considerable investments in infrastructure for fresh foods, and wants to increase fresh “It is critical for the stores to be remodeled foods sales by 20 percent by 2015. I believe and upgraded so the store image will be this fresh foods component is a very im - portant part of the equation for our brand’s improved and appear food service clean.” success because it separates us from our competition and gives us an edge. We can

proudly say that we carry hot foods, fresh continued from page 28 sandwiches, several varieties of coffee and in sales thanks to the fresh milk, and many other items that are Greek yogurt craze , re - delivered fresh daily to our stores. ported CNBC. • Starbucks is planning to open However, since the fresh foods com - its first coffee shop in Colombia next year ponent is not installed in every store, the using locally grown coffee, reported the The program is not necessarily generating Wall Street Journal. The coffee chain will open profits for the franchisee that has it. This is its first store in the capital city of Bogota, and because write-offs are often very high due plans to open at least 50 more throughout to unsold fresh merchandise. In order to chisees that have been in the system more Colombia over the next five years . • Big-box increase fresh foods sales and make it prof - than 25 years. They have spent their entire retailer Target recently launched Target itable for all, we need to have one dedi - careers and dedicated their lives to pro - Ticket , a digital-download service that allows cated employee for fresh food service only. moting the 7-Eleven brand. They have users to buy or rent movies and TV shows and Since this will increase labor costs for the worked very hard for the business to the play them on all devices— including smart - franchisee, there should be a 2 percent in - mutual benefit of all. Some of the fran - phones, tablets, TVs, Blu-ray players, and centive program from SEI to the store if chisee master leases are expiring or the game consoles , reported TechCrunch.com. • they employ one dedicated person for landlords do not want to renew their In an attempt to offer a healthier treat, Burger fresh foods. leases. It is my belief that these long-term King has rolled out new crinkle-cut “Satis - It is also critical for the stores to be re - franchisees should be relocated with no or fries,” which contain 30 percent fewer calories modeled and upgraded so the store image very little cost to them. and 40 percent less fat than regular French will be improved and appear “food service The relocation process should also be fries, reported Forbes . • Two U.S. scientists clean.” Every store should get new hot streamlined to be as painless and trouble- who blew the whistle on high fructose corn syrup in soft drinks a decade ago claim fruit free as possible for these dedicated fran - juices and smoothies represent a new risk to “IF A STORE HAS A chisees, and the approval criteria should be our health because of the amount of sugar relaxed. Additionally, SEI should have in HIGHER PROFIT, THE the apparently healthy drinks contain, re - place a good exit plan for the old, hard - SPLIT IS HIGHER FOR SEI, ported The Guardian . • Colorado recently be - working franchisee that cannot relocate came the first state in the country to adopt EFFECTIVELY REDUCING and therefore cannot sell their franchise final rules for recreational marijuana busi - and needs to retire for reasons beyond THE INCENTIVE FOR nesses , reported the Denver Post . The rules their control, taking a huge and unfair fi - cover everything from pot shop licensing to THE FRANCHISEE TO nancial hit in the process. inventory tracking to marijuana packaging When a new franchisee sees that their INCREASE GROSS to advertising . The first marijuana stores in backs will be covered and their futures are the state are expected to open around January PROFITS.” secure, they will be much more likely to continued on page 68

62 AVANTI SEPTEMBER | OCTOBER 2013

Visit the National Coalition Website, www. ncas ef.c om continued from page 36 ber on a year-over-year basis, according to a tally compiled by the International Goodwill and Servant Leadership Council of Shopping Centers (ICSC). Ex - Franchisees have been worried for several years about the potential erosion of cluding gasoline sales, the September tally our goodwill. For franchisees who have been in the system over 15 years, goodwill would actually be +5.1 percent. The study is the pot of gold at the end of the rainbow. We worked hard and long hours over also reveals that drugstore sales rose by 6.0 the span of our 7-Eleven careers to increase the goodwill value of our stores so we percent in September (in April 2007 that could enjoy our retirement in relative financial comfort. For us, it was one of the segment had a +6.7 percent pace) and Ap - goals to strive for. Now we are seeing it slip away. parel was the weakest performing seg - It started with the introduction of BCP and then SEI’s aggressive expansion plans by Serge Haitayan ment, posting a 0.1 percent gain. over the last several years, which led to the fear of having another 7-Eleven store just across the street from ours. We have long held that we could compete against other c-store chains, but we cannot compete against another 7-Eleven. That fear, along with the ever-constant increase in E-Cig Sales Surpass franchise fees, has kept a lot of us from enjoying a good night’s sleep. If you’re not up to speed on the new franchise fee structure, I highly recommend you read Arnold Hauptman's article in the March/April $1 Billion issue of Avanti. He does an excellent job of summing it up. (See Avanti at www.ncasef.com.) For the first-time, the electronic cig - Franchisees have voiced these arette category has surpassed $1 billion in concerns to SEI at every venue, includ - ”The fact of the matter remains that with annual sales across both traditional and ing NBLC and Zone meetings and the every increase in the franchise fee our digital retail channels, according to data quarterly National Coalition Board from Wells Fargo Securities. Wells Fargo meetings. Our concerns were always goodwill has decreased.” Securities projects total 2013 retail sales met with statistics of all kinds that did to reach a record $1.7 billion by the end not give us any real satisfaction. Our franchisor told us at the National Coalition Board meeting in Memphis of the year—an increase of at least 240 that goodwill last year rose 7 percent, but this is still a far cry from where goodwill was five years ago. percent over the previous year’s estimated The fact of the matter remains that with every increase in the franchise fee our goodwill has de - $500 million mark. “Conservative data in - creased, and with every new store opening in proximity to an existing store, the sales and goodwill of dicates that traditional electronic cigarette that store have decreased. This is especially hard on us long-term franchisees who are counting on our goodwill as a nest egg to carry us through retirement. retail sales on an annualized basis is $700 million,” said Bonnie Herzog, Managing To us, it appears that SEI has decided that the health and profitability of the system is more Director and Senior Beverage and To - important than the payout to long-term franchisees who have built equity in their stores and their communities for the 7-Eleven brand. The company has raised franchise fees for bacco Analyst at Wells Fargo Securities. long-term franchisees midway through the game, so the franchisee fee now dwarfs “When combined with online sales, goodwill for the majority of stores. This kind of dramatic change in the rules is not the industry has now exceeded $1 only unfair for franchisees, but it will for sure be detrimental to franchisees’ view billion for the first-time ever, of the system in the future. with the consumption of e- SEI could have chosen to keep the old franchise fee structure for current and cigs likely surpassing that of long-term storeowners’ future store sales and apply the new fee structure to new traditional cigarettes in the stores or to incoming franchisees. Instead, through its actions, SEI decided that ex - next decade.” E-cig retail sales isting franchisees should not be generating high dollar goodwill value anymore. through online channels will total an es - A simple Google of the term "Servant Leadership" produced the following result: “Servant leadership timated $500 to $625 million in 2013. is both a leadership philosophy and set of leadership practices. Traditional leadership generally involves the accumulation and use of power by one at the ‘top of the pyramid.’ By comparison, the servant- leader shares power, puts the needs of others first, and helps people develop and perform as highly as ‘On The Run’ Eaters Surge possible.” While 79 percent of Americans are I have been thinking for years that servant leadership has been overshadowed by other goals at 7- planners and eat three “square meals” or Eleven, Inc. In Japan I’m told, they believe that for 7-Eleven to succeed, franchisees, vendors and the several “mini meals” throughout the day, a franchisor should all benefit from strategies developed by the franchisor. I’m not so sure that is hap - new segment is also emerging—those who pening with our goodwill and the new franchise fee structure. continued on page 68 This is my opinion and I welcome yours. n 64 AVANTI SEPTEMBER | OCTOBER 2013

continued from page 26 Visit the National Coalition Website, www. ncas ef.c om

Legislative Upd ate continued from page 26

among payment networks. Leon’s decision, unless overturned on appeal, will Valley Business Journal reported. Restaurants instead will have to switch away force regulators to revisit rules that bankers said would cost them 45 percent from polystyrene—commonly known as Styrofoam—to more environmen - of their swipe-fee revenue. Lenders collected about $16 billion annually tally friendly packaging such as foil or paper. National chains operating in San from those fees before the Fed’s regulation and responded by cutting back Jose will need to switch by January 1, 2014. Smaller restaurants would have on perks such as rewards programs and free checking to soften the blow to until January 1, 2015. Convenience stores, bars, coffee shops, caterers, grocery their profits. stores, mobile food trucks and roadside stands also have to dump the foam. NY Credit Card Surcharge Law Blocked Some business owners have complained the ban would increase costs. Plastic Bag Ban Moves Forward In San Diego A federal judge recently blocked enforcement of a New York state law that bans merchants from imposing surcharges on customers who pay by credit San Diego is moving toward a plastic bag ban, but a news poll has found card rather than cash, reported that more than half of San Diegans want to keep using disposable plastic Reuters. Supporters of the decision bags, reported the San Diego Union-Tribune. The ordinance would ban all sin - by U.S. District Judge Jed Rakoff in “A federal judge gle-use carryout plastic bags at retail locations and add a 10-cent charge for Manhattan said it could make it paper bag. It would exempt restaurants, newspaper delivery, and bags for easier for retailers to transact with blocked enforcement produce, meat, poultry and dry-cleaning, as well as some recipients of food customers, and make customers of a New York state aid. Grocery and pharmacy stores would have a six-month grace period, while better understand the costs of law that bans mer - non-profit vendors and others would have a year to comply. making purchases with credit cards. However, a news poll by the Union-Tribune and Channel 10 News reveals Rakoff agreed with several retailers chants from imposing that 54 percent of San Diegans surveyed want local stores to keep providing that the law, which carries poten - surcharges on cus - plastic bags, while 37 percent support a ban. The remaining 9 percent said tial criminal penalties including tomers who pay by they were unsure about the proposed rule. prison, violated their free speech credit card rather NYC’s 10-Cent Plastic & Paper Bag Charge rights under the First Amendment because it prohibits them from than cash.” New legislation aimed to dramatically reduce bag use in New York City telling customers about the extra would put a $.10 surcharge on plastic or paper carry out bags at grocery and costs of paying with plastic. Five re - retail stores, reported MyFoxNY.com. The city council members who intro - tailers including a hair salon, an ice cream store and a martial arts studio had duced the measure said the proposed charge would not be a tax and the challenged the constitutionality of the law, which was enacted after the U.S. stores would actually keep the money to cover the cost of providing bags. Congress in 1984 allowed a federal law prohibiting surcharges to lapse. Under the legislation, restaurants would not be covered due to limited alter - natives for delivery and take-out food orders, and stores would be required to C-Store Safety Law Reintroduced In Indiana waive the charge for providing paper or plastic bags for transactions where There may be another debate at the Indiana statehouse next year on the customer is using food stamps. The bill's backers say New Yorkers use 5.2 safety regulations for 24-hour convenience stores, reported local news station billion carryout bags per year—the vast majority of which are not recy - WISH-TV. State Representative Ed DeLaney said he or someone else will re-in - cled—and New York City pays an estimated $10 million to transport 100,000 troduce a bill that asks for tougher safety measures when it comes to conven - tons of plastic bags to landfills in other states each year. ience stores. DeLaney introduced a bill in January that asked for mandatory Denver City Council Approves Bag Fee safety measures that include bulletproof glass around the cash register, or at least two employees during the overnight hours. The measure did not move The Denver City Council has moved closer to approving a 5-cent fee on in 2013. Next year’s measure may require “high risk” c-stores to choose be - for plastic and paper bags at grocery and convenience stores, reported the tween bulletproof glass, emergency alarms, guards, or to close overnight. Denver Post. The final vote will be December 9. Denver Mayor Michael Hancock has expressed displeasure for the legislation, hinting he may veto San Jose Bans Styrofoam the bill if it comes to his desk. Hancock said he fears the ordinance would The San Jose City Council recently voted to negatively impact poorer people or ban the plastic foam take-out boxes many restau - seniors. He also wor ries people will “Half of all San Diego residents are rants and stores use to package food, the Silicon continued on page 70 against a plastic bag ban in the city.”

66 AVANTI SEPTEMBER | OCTOBER 2013

Visit the National Coalition continued from page 64 Website, www. ncas ef.c om eat on the run, according to a new study brackets. Two-thirds of opportunists are by Information Resources, Inc. (IRI). female, and 92 percent are of non-His - continued from page 62 Dubbed “opportunists” by IRI, these eaters panic origin. Skewing slightly to the lower 1, 2014. • The Centers for represent a whopping 21 percent of Amer - end of the income spectrum, nearly two- Disease Control and Pre - icans, and they tend to grab food and thirds of opportunists come from single- vention announced that an estimated 1.6 million smokers attempted to drink throughout the day as the opportu - member or two-member households. quit smoking because of its 2012 “Tips From For - nity arises, with little consideration as to Many are living a bachelor/bachelorette mer Smokers” national ad campaign. The CDC said whether they are eating a meal or a snack. life, or the life of a dual-income-no-kid more than 200,000 Americans had quit smoking The study reveals that opportunist family, where life is a bit less scheduled. immediately following the three-month cam - eaters hail from diverse backgrounds, cut - Just under half of these eaters are under paign. • In an effort to boost sales, McDonald's is ting across age, income and household the age of 45. conducting a two-city test of a mobile applica - continued on page 74 tion that lets customers order and pay from their smartphones, then pick up their food curbside, in Grow Your Coca-Cola the store or at the drive-thru, reported Bloomberg BusinessWeek . • Coca-Cola recently launched the Refreshment Juices And WIN! world’s first carbonated hot beverage in Japan, See Ad On Pages 20-21! reported The Telegraph . Called Canada Dry Hot Ginger Ale, the drink is the result of extensive re - Coca-Cola re - 14 SKUs (one SKU must be Simply 59oz Origi - search into how to combine both heat and car - cently announced nal OJ) will receive 20 entries into the draw - bonated bubbles in a can . • The government of a new incentive ing, stores carrying 12 SKUs (one SKU must Mexico is considering a tax on all sugary bever - contest with a huge payoff for franchisees and be Simply 59oz Original OJ) will receive 10 en - ages in an effort to reduce the levels of obesity and the NCASEF. The goal of the contest is to in - tries into the drawing, and stores carrying 10 Type 2 diabetes in the country, reported the Wall Street Journal . • A national study by Experian Mar - crease distribution of Coca-Cola Refreshments SKUs will receive 5 entries into the drawing. keting Services reveals that half of all email is now Juice SKUs by 10 percent between November The number of store entries into the drawing opened on a smart phone and nearly half of all 1, 2013 and February 28, 2014. will be determined by using the Latest 12- online mobile purchases are done on an iPad . • Each store that stocks a minimum number Week ending January 26, 2014 store level Dunkin' Brands announced the signing of multi- of Coca-Cola Refreshment Juices SKUs will data for eligible SKU’s. Eligible SKUs include unit store development agreements with two new gain entries into a drawing for cash prizes: 20 Minute Maid, Simply and Odwalla Juices. See franchise groups to build 17 new restaurants in $500 prizes, 10 $1,000 prizes, 10 $1,500 the ad on page 00 for a complete list of eligi - markets in west and central Texas over the next prizes, and 10 $2,500 prizes. ble SKUs. several years. • Johnson & Johnson’s Rolaids Stores carrying Additionally, if Simple, Minute Maid and antacid is heading back to American shelves after damaging recalls ended in a hiatus of nearly three Odwalla each increase distribution by 10 per - years, reported the Associated Press . Rolaids will be cent, Coca-Cola will make a doation of sold in traditional tablets and in a new liquid form, $15,000 to the NCASEF to be used at the as well as in an "Ultra Strength" version. • The Board’s discretion. The NCASEF Incentive will price of gasoline nationwide exceeded $3 per be measured using the same Latest 12-Week gallon for the 1000th consecutive day September Ending January 26, 2014 store counts for eli - 17, according to a report by AAA. The streak began gible SKUs. on December 23, 2010 and will likely continue for Coca-Cola Refreshments will complete the at least another thousand days, the report said. • drawing among eligible franchisees in February Pennsylvania tops the list of lucky states when it comes to the lottery , reported Yahoo Finance. 2014. The winning stores will be announced in Seventeen winning jackpot Powerball tickets have March 2014 and payout will be delivered by been sold there. • Burger King has expanded its April 30, 2014. For more information, please delivery service to Tucson, Arizona. The company contact Tim Zeigler at 972-740-0941. continued on page 70

68 AVANTI SEPTEMBER | OCTOBER 2013 AVANTI SEPTEMBER | OCTOBER 2013 69 Visit the National Coalition www. ncas ef.c om continued from page 66 Website,

Legislative Upd ate continued from page 68 choose to shop at stores outside Denver if the legislation goes into effect. said its BK Delivers pro - Under the ordinance, revenue from the fee would be split between the city and the store, gram—which allows with the city retaining 3 cents of every bag sold to pay for education guests to place orders simply by visiting BKDe - campaigns and to buy reusable bags. Stores would get 2 cents to im - livers.com or by calling a toll free number—is plement the program. The city estimates the fee would generate ap - already performing well in 15 cities across the “House Democrats proximately $1.6 million in revenue the first year, with expectations country. • Discount chain Dollar General re - are calling on the of diminishing returns as people use more reusable bags. cently reported same-store sales increased 5.1 percent and total sales increased 11.3 per - Seattle Mayor Ponders Sugary Drink Tax Obama administration cent during its second fiscal quarter. • Healthier to issue new rules for Seattle Mayor Mike McGinn is considering a 1-cent-per-ounce options must work, because California-based tax on sugary beverages—including canned soda and fountain eco-cafe/convenience store Locali announced flavored cigars and drinks—as a way to raise money for Seattle parks, reported the it is now a multi-unit operation with corporate electronic cigarettes.” Seattle Times. While details are sketchy, McGinn said his plan would and franchised locations, just four years after it raise the city’s business-and-occupation (B&O) tax on businesses first opened. • Circle K parent company that sell sugary drinks. It’s an idea McGinn said his office considered Couche-Tard announced its first quarter of fis - in 2011, but did not publicly propose at the time. A 1-cent-per-ounce cal 2014 net earnings increased 21 percent to tax could raise between $21 million and $29 million a year, McGinn said, citing estimates devel - compared to the same period last year . The oped for his office in 2011. The mayor said he’s not immediately proposing the new tax to the company said same-store merchandise rev - Seattle City Council. Instead, he said, his staff will present the idea to a committee now examining enues rose 2.7 percent in the U.S., 0.7 percent future funding needs for Seattle parks. in Canada and 1.9 percent in . • Wal - Lawmakers Call For Cigar & e-Cig Regulations mart workers went on strike in 15 cities across the U.S. on September 5 to demand a A group of House Democrats is calling on the Obama administration to issue new rules for ci - raise in wages and improved working condi - gars and electronic cigarettes, reported The Hill. In a letter to the Food and Drug Administration tions. The action followed earlier strikes by fast (FDA), the lawmakers asked regulators “to act quickly” with new rules for the products, over which food workers demanding a higher minimum the federal government currently has little wage. • Goody Good Stuff offered parents a oversight. “Manufacturers of e-cigarettes healthier option to traditional treats this Hal - are taking advantage of this regulatory “Attorneys general from 40 states loween with its vegan, vegetarian, and gela - loophole to target children,” wrote the law - have urged the Food and Drug tin-free gummy candy that is free of fat, dairy, makers. “As a result, some e-cigarette mak - and artificial colors. Available in eight flavors, ers are producing products with kid-friendly Administration to restrict advertising Goody Good Stuff is also made with a plant- flavors such as ‘Cherry Crush' and ‘Cookies & of and sale of e-cigs to youths.” derived bio-gum technology . • The first Du - Cream Milkshake.’” The FDA, which oversees tyfreefood.com customer pickup point recently cigarettes and smokeless tobacco, has been opened in Fort Lauderdale, Florida. Du - working on regulations to expand its over - tyfreefood.com allows customers to buy their sight to e-cigarettes, cigars and pipe tobacco, which are currently exempt from its rules. groceries online at prices 30 percent cheaper AGs Urge FDA To Regulate e-Cigs than supermarkets and pick them up the fol - lowing day. • In its second quarter of fiscal Attorneys general from 40 states have urged the Food and Drug Administration to restrict the 2014 financials, donut chain Krispy Kreme re - advertising, ingredients and sale of electronic cigarettes to youths, reported the Wall Street Jour - ported revenues increased 10.4 percent , nal. The call for action came less than three weeks after a government survey showed the percent - same store sales rose 10.0 percent, and net in - age of high-school students who have tried e-cigarettes —which turn nicotine-laced liquid into come rose 17.2 percent. • A study funded by vapor—rose to 10 percent last year from 4.7 percent in 2011. The battery-powered devices aren't LOGIC Technology has found that electronic regulated by federal authorities, but the FDA is aiming to propose regulations by October 31. Fed - cigarettes are effective tools to transition off eral rules prohibit the sale of cigarettes to anyone under 18 and more than two dozen states al - tobacco . The study reveals that after 90 days, ready have moved to ban the sale of e-cigarettes to minors. continued on page 72

70 AVANTI SEPTEMBER | OCTOBER 2013

Visit the National Coalition

continued from page 68 Website, www. ncas ef.c om Costly equipment continued from page 70 Breakdowns Are 70 percent of partici - pants reported they Never Convenient had stopped using tobacco products entirely, giving insight into the need for a larger, gov - Gain peace of mind with equipment breakdown insurance. ernment-funded national study. • RUSSBE re - An important, but often overlooked, insurance coverage for convenience cently launched the newest in REUSABLE store owners is equipment breakdown. Regardless of who owns the building, snack and sandwich bags , providing an envi - electronic devices and equipment are needed inside a convenience ronmentally friendly alternative to packing store to run the business. With equipment breakdown insurance, owners have cover - snacks and lunches in generic, wasteful paper age to pay for physical loss to equipment and—if purchased—coverage bags and plastic sacks. • Snyder's-Lance has to replace lost income in case a covered equipment breakdown forces the acquired all assets of Stateline Service Corpora - business to close or lose customers. tion, a snack food distributor in Massachusetts. “In one case, a convenience store In addition to the inconvenience of an equip - The company said this acquisition is part of owner lost over $30,000 in income ment breakdown and the unexpected repairs, a its plans to continue growing and strength - after a power surge burned out breakdown can be costly. In one case, a conven - ening its national distribution network. • A electrical distribution equipment.” ience store owner lost over $30,000 in income study by the University of Pennsylvania School after a power surge burned out electrical distribu - of Design and the Philadelphia Department of tion equipment. Without milk, juice and other refrigerated products to sell, Public Health has found that corner stores, customers took their business to competitors. Wisely, the store was protected by equipment gas stations, and convenience stores in the breakdown insurance to replace the lost income. city's lower-income neighborhoods feature Stores Depend On equipment too many tobacco ads that entice minors to try tobacco products, reported Philly.com. • Convenience stores depend on many types of equipment that might not be covered under a stan - Walgreens has been on a purchasing spree in dard property insurance policy for equipment breakdown accidents. Computer systems, cash registers, preparation for Obamacare and the influx of portable coolers, microwaves, credit card machines, surveillance systems, and other freestanding customers that will soon be seeking primary equipment can be damaged electrically or mechanically. care medical services in drugstores, reported Surprisingly, some convenience store owners fail to consider the side effects of equipment Forbes . The company recently acquired 76- breakdowns until after the equipment is damaged. Equipment breakdown coverage is critical be - store chain Kerr Drug in North Carolina in cause it can pay for equipment repairs and resultant expenses such as lost business income, order to offer such services in that state spoiled products, and more. That even includes extra expenses such as renting temporary equip - through its MinuteClinics. • Dunkin’ Donuts ment and expedited repairs. celebrated National Coffee Day on Septem - Breakdowns Can Happen Outside The Store ber 29 by offering customers a free cup of cof - In addition to breakdowns to equipment you own, accidents can also happen to equipment fee through its Dunkin’ App , available for owned by a utility company or other service provider you have a contract with. That was the case iPhones and Android smartphones. • For a lim - for the convenience store mentioned earlier. Electrical arcing damaged the electrical distribution ited time, Shell is offering its Fuel Rewards system outside the store, and the store lost customers and income as a result. Network members savings at the pump by taking a minimum of 3 cents off per gallon in - Lost Sales, Less Profit stantly on every fill-up at participating Shell- With almost 150,000 convenience stores in the United States, the competition is fierce and branded stations. • Visa and MasterCard have profit margins are thin. Unexpected repairs and lost sales can really hurt. That’s why equipment agreed to slash their card interchange fees in breakdown insurance might be right for you and other 7-Eleven franchisees. by nearly half, reported Finextra. Under For More Information the deal with the French competition author - To learn more about equipment breakdown NOTE: Content for this article previously ap - ity, from November 1 both firms will charge peared in the Hartford Steam Boiler Whistlestop merchants a maximum of 0.28 percent of coverage and the special property and crime insur - newsletter. This article is intended for information ance package available for 7-Eleven franchisees, purposes and does not modify or invalidate any the amount of the transaction to process a contact Tanya Sanders with Lockton at 214-969- of the provisions, exclusions, terms or conditions continued on page 74 6742 or email [email protected]. of your policy and endorsements.

72 AVANTI SEPTEMBER | OCTOBER 2013

Visit the National Coalition

continued from page 68 Website, www. ncas ef.c om

clearly marked stations labeled in a serif continued from page 72 7-Eleven’s New Image black plain font with signage like "Sip. Sip. payment. • With rev - enues exceeding $61 SEI plans to rebrand its more than Sip." hanging above the coffee decanters. billion and top-line growth of 27 percent in 50,000 worldwide stores with a fresh logo 2012, Amazon.com has once again taken the and a remodeled format to attract health- Walmart Concentrates On #1 spot on Stores Magazine’s Favorite 50 On - conscious consumers, women and millen - line Retailers list. Walmart.com comes in at nials, reported FastCoDesign.com. The Small Format Expansion #2, and eBay.com is ranked #3. • The Electronic company's 43-year-old logo will get an in - Positive sales gains have big-box chain Cigarette Industry Group, Inc. (ECIG) recently fusion of bright green into its signature or - Walmart considering a significant expan - announced that former American Lung Associ - ange and red, and the storefront sign will sion of its Neighborhood Market small for - ation CEO and President Charles D. Connor has feature a lowercase “eleven” nestled into the mat, reported Packer.com. The company joined the organization as a consultant. In his curved back of the “7” on a black back - said during a presentation at its October 15 new role, Mr. Connor will serve as a strategic partner to ECIG , acting as the primary liaison ground. The inside will feature a layout and investor conference that it plans to expand between the public health community and the signage strategy that highlights healthier the concept by 400 or more stores by 2017. association. • Alimentation Couche-Tard said snacks and freshly made food, with granite It currently has 306 Neighborhood Market flooring, white tiles, green furniture, and it may introduce fuel-saving gas to North stores, which average about 35,000 to America after it completes a planned rollout 40,000 square feet, compared to nearly in Europe, reported The Canadian Press . The Play The 200,000 square feet for a Walmart Super - -based c-store operator said additives Name Game! center. The concept targets middle to lower included in its Miles-branded fuel sold in Eu - Look carefully at each page in incomes, with dense populations and high rope reduces fuel consumption by two to this issue. Somewhere in this traffic. The company reported strong sec - three percent and cuts auto maintenance magazine a line is hidden that contains the ond quarter performance for its Neighbor - costs. • Oil giant Exxon Mobil recently an - words $Name Game Winner + person’s name + city$. If you find this line, and it contains your hood Market and Walmart Express formats nounced that it would extend health insur - name, call AVANTI’s Offices at 215 750-0178 during the conference—same store sales ance and other employee benefits to married before the next magazine is published, and win were up 3 percent for Neighborhood Mar - same-sex couples effective October 1, reported this issue’s total. NCASEF Members only. kets and sales were up 30 percent. n the New York Times. • Yuengling's Ice Crea m will be returning to stores in Mid-Atlantic Legislative Upd ate states for the first time in nearly three decades , reported the New York Daily News . The ice cream is from a different branch of the Oregon Considers Taxing e-Cigs Yuengling family and is unaffiliated with the The Oregon Legislature is beginning to look at whether to tax electronic cigarettes, KGW.com re - brewery. • Online shoppers are increasingly ported. The state Department of Revenue told House and Senate committees recently that there are cur - demanding more from retailers , according to rently no taxes on electronic cigarettes, which are growing in popularity and touted as alternatives to a study by comScore, Inc. and UPS Canada. traditional cigarettes. One lawmaker said the state should look at taxing e-cigarettes because they con - Consumers want more information at the tain nicotine, an addictive substance. Others said lawmakers should tread carefully while researchers start of the online experience, more options look into the potential dangers of e-cigarettes. Another legislator said the state shouldn't create a disin - during checkout and delivery, a seamless re - centive for using e-cigarettes if they turn out to be a safer alternative to traditional cigarettes. turns process, free shipping, and social and mobile access. • The founder of Weber Grills, Wisconsin Bill Would Tax All Tobacco Products equally George Stephen Sr., was inducted into the Legislation was recently introduced in the Wisconsin Legislature to curb youth smoking and Barbecue Hall of Fame on October 5, 2013 tobacco use by taxing all tobacco products the same, reported NACS Online. The Backpack Tobacco during the World Series of Barbecue Champi - Act seeks to close “loopholes” in state law by making all tobacco products taxed equally at the onship event. • The U.S. government recently same rate as cigarettes, and ensure that all tobacco products “are inaccessible to customers with - concluded its 2012 Economic Census , which out the assistance of the retailer.” provides the most accurate measure of the continued on page 78

74 AVANTI SEPTEMBER | OCTOBER 2013

7-ELEVEN INVESTS Miami office represented TEVI premium and better-for-you snack selec - IN STARTUPS Florida. Three new 7-Eleven tion nationally, SEI tested dozens of 7-Eleven and locations are expected to snack items in a select group of stores in 7-Eleven, Inc. is open in Detroit's down - business centers and residential neigh - dipping its toe into Oak Farms donated town business district borhoods with differing demographics the venture capital one meal to the North by the end of the year, and traffic patterns. The offer proved business, with Dallas Food Bank for every marking an end to popular across all segments, and the final plans to invest gallon of white milk purchased the company's nearly product mix was narrowed to reflect test small amounts of two-decade absence stores' top-sellers. money into start - at Dallas-Fort Worth-area within city limits. SEI The new 7-Select snacks, sold mostly ups within the retail stores between Sept. 6 owns, manages and op - in 7-ounce containers that contain multiple and food spaces, re - and Oct. 4. erates approximately 240 servings, are priced from $2.49 to $3.99 and ported Fortune . The stores in Michigan. include: Raisin & Nut Trail Mix, Santa Fe- group is called 7-Ventures, style Trail, Organic Nature's Trail Mix, and it has so far made two investments SNACK SECTION Tropical Trail Mix, Berry Trail Mix, Veggie since its launch in early summer. The first OFFERS GOURMET, Chips, Dried Fruit Blend, Chocolate Nut was in an undisclosed coffee company, as Mix, Raw Almonds, Banana Chips, Yogurt- part of 7-Eleven's efforts to improve its BETTER-FOR-YOU ITEMS covered Pretzels, and Chocolate Pretzels. fresh food and beverage business. The sec - SEI has upped its packaged snacks The new premium snack section ond is in Belly, a Chicago-based customer game with the introduction of a new se - also features high-quality, name-brand loyalty and marketing platform that re - lection of gourmet, organic and better-for- snacks more commonly found in gour - cently announced $12.1 million in new you snacks. Displayed together at met and organic grocery stores. Nation - venture capital funding. In addition to 7- participating 7-Eleven stores, the new as - ally branded items are: Sahale Snacks, Ventures, investors in the Belly round in - sortment includes the company's 7-Select Terra Exotic Vegetable Chips, Pretzel clude New Enterprise Associates, private brand along with nationally Crisps, Stacy's Pita Chips, Stacy's C'est La Andreessen Horowitz, DAG Ventures, branded, upscale snacks, some making Cheese Flavored Pita Crisps, Skinny Pop Lightbank and Cisco Systems. their debut at a convenience retailer. Com - All-Natural Low-Calorie Popcorn, Pop - petitively priced in comparison with other corn, Indiana, Seapoint Farms Dry DETROIT GROUND LEASES retailers, the single-serve and shareable Roasted Edamame, and Harvest Snaps SOLD TO MIAMI COMPANY portions range in cost from $1.49 to $4.99. Snapea Original Green Pea Crisps. Before rolling out the A portfolio of 11 ground leases for 7- NYC 7-ELEVEN UNVEILS Eleven convenience stores in eight metro Detroit communities was recently sold to NEW WHEAT THINS BIG BAG a Miami-based limited liability company BOLD FLAVORS for $15.8 million, reported Crain’s SEI partnered with Wheat Thins Detroit Business. TEVI Florida LLC and NASCAR Sprint Cup Series purchased the leases from Ron Jona driver Ryan Newman on October 2 and Greg Buss of JBD Development to introduce the new Wheat Thins Group LLC. The Southfield office of Bold Chili Cheese Big Bag flavor and Marcus & Millichap Real Estate Invest - two other Big Bag Bold Flavors—Zesty ment Services Inc. represented JBD Devel - opment, while Marcus & Millichap's continued on page 78

$name game winner Seema Kauser, Fairfax, VA$ AVANTI SEPTEMBER | OCTOBER 2013 77 continued from page 77

Salsa and Spicy Buffalo. The event also an - Dean Foods and 7-Eleven also made November, American Express Serve cus - nounced 7-Eleven's two for $2 promotion a donation of time. To kick off Hunger Ac - tomers will be able to take cash to the reg - of its new Wheat Thins Big Bags for the tion Month and the “Buy 1 Gallon, Give 1 ister at participating 7-Eleven stores and month of October. For the unveiling, Meal” campaign, employee volunteers of add it to their American Express Serve Wheat Thins converted the 7-Eleven loca - the two companies participated in the Account. This is made possible through a tion at 182 Fifth Avenue into a NTFB’s 24-Hour Sort-A-Thon on Sep - relationship with InComm and its Vanilla Wheat Thins bold flavors tember 5. During the Sort-A- Reload Network. snacking experience. Thon, volunteers worked in The new American Express Serve Newman, winner of Roam Mobility shifts around the clock on features available to customers include di - the 20th annual SIM cards give tasks ranging from sorting rect deposit, bill pay, mobile check cap - Brickyard 400 July 28 customers access to incoming donations and ture, personal financial management at the Indianapolis unlimited talk and text, unsalable items, to an as - tools and Reserve, which allows cus - Motor Speedway, was plus data for as little sembly line that produces tomers to put money aside for future ex - onsite to give away boxes of food items for vari - penses. These enhancements are de- Wheat Thins Big Bag as $3 per day. ous NTFB programs. signed to meet the needs of the nearly 70 samples, meet and greet million Americans underserved by tradi - with customers, and speak with SIM CARDS FOR tional financial services. news media. CANADIAN TRAVELERS ‘GALLON OF HOPE’ FOR As of September 2, Canadians mak - ing last-minute plans for travelling to the continued from HUNGER ACTION MONTH U.S. can pick up a surcharge-free SIM page 74 In recognition of Hunger Action card at one of nearly 500 7-Eleven loca - American econ - Month in September and the yearlong tions across Canada. Roam Mobility SIM omy. The Eco - nomic Census is conducted every five years, problem of hunger, SEI and Dean Foods’ cards give customers access to unlimited and the data covers more than 1,000 in - regional brand Oak Farms Dairy spon - talk and text, plus data for as little as $3 dustries, 15,000 products, every state, sored the “Buy a Gallon, Give a Meal” per day. Priced at $19.95, the cards are over 3,000 counties, and 10,000 cities and campaign that benefitted the North Texas available in standard, micro and nano towns . • Walmart plans to add more than Food Bank (NTFB). During the four-week versions, and can be used with any un - 200 of its smaller, urban Neighborhood Mar - promotion, 7-Eleven and Oak Farms do - locked GSM phone. Roam Mobility SIM ket stores in the next 18 months, bringing nated one meal to the food bank for every cards can be purchased at 7-Eleven loca - the total to more than 500, reported Pacific gallon of white milk purchased at Dallas- tions in Alberta, British Columbia, Man - Business News . Target, on the other hand, Fort Worth-area stores between Septem - itoba, Ontario, and Saskatchewan. is taking a slower approach with tests of ber 6 and October 4—up to $35,000 or its urban City Target concept at seven loca - more than 100,000 meals. Through the do - SEI JOINS AMEX’S FREE tions in four major U.S. cities. • According to nations of food companies and individuals, CASH LOAD NETWORK new research from Mintel, half (50 percent) the North Texas of respondents from the highest-income 7-Eleven is among several retailers Food Bank is able households ($150k+) say they are shop - that will roll out American Express Serve’s to turn $1 into ping at dollar stores the same amount this new, free nationwide cash load network three meals for year compared to last year. In addition, a that features the addition of new money hungry families further one in ten (10 percent) are doing so management capabilities. Starting this in North Texas. more than last year. n

78 AVANTI SEPTEMBER | OCTOBER 2013

Detour Unveils Gluten-Free As part of the U.S. campaign, Kit Kat brand and Google will offer consumers the chance to win 1,000 Oatmeal Bars Nexus 7 tablets, 150,000 Google Play $5.00 credits Protein products company Forward Foods, LLC an - and 20,000 coupons for a free 8 ounce bag of Kit Kat nounced a new line of natural, gluten free, whole grain Minis. To enter the promotion, consumers should look oatmeal bars. The new Detour SMART bar contains up to for a code inside the wrapper of specially marked Kit 80 percent less sugar than leading snack bars and comes Kat 1.5 oz bars and visit android.com/kitkat for their in two flavors—Blueberry and Apple Cinnamon, both of chance to win. The promotion will run between Sep - which are topped with a Greek style yogurt drizzle. tember 6, 2013 and January 31, 2014.

The new Detour SMART bars are independently cer - s e

tified by the Gluten Free Certification Organization to e s

Award-Winning Sahale i confirm they meet strict gluten-free standards. Each h bar has just 130 calories and four grams of sugar. Snacks Now In 7-Eleven c New gluten-free Detour SMART n

Like all Detour products, the Detour SMART bar is a

Bars have 80 percent less sugar. As part of the effort to offer better-for-you selec - r F

made with high quality whey protein to nourish and tions with premium ingredients at 7-Eleven, Sahale replenish the body, and the grains and fruit provide a balanced n Snacks recently debuted its innovative, award-winning snacks in e source of fiber and a nutritious foundation for maintaining good v

stores nationwide. The four uniquely satisfying combinations come in e l

health. Detour SMART bars are lightly sweetened with Stevia, a 4-ounce pouches and tap into multiple consumer dining trends— E -

zero-calorie, natural sweetener. continued on page 82 7

r o f

Hershey & Google Team s e c

DRAKE'S CAKES RETURN i

Up For ‘Android KitKat’ v r

Google has teamed up with The Hershey Com - TO STORE SHELVES e s pany for the next release of its Android mobile op - After much anticipation, Drake's cakes d

erating system, called Android KitKat after one of n

made a triumphant return to stores on Mon - a America's most beloved confectionery brands. This s

day, September 23. McKee Foods, which ac - t

news complements the recent launch of The Her - c

shey Company's new Kit Kat Minis product that quired Drake's from Hostess Brands after the u d

represents the latest innovation in confectionery company went out of business last year, has launched o r

Drake's four most popular varieties first—Devil Dogs, Coffee Cakes, p

and on-the-go snacks. The product is the result of many months of research and development by Her - Ring Dings and Yodels. McKee Foods said its primary focus was to w stay true to what long-time Drake's enthusiasts remember about their e

shey engineers to miniaturize one of the world's N most popular candy bars without compromising favorite cakes. By using the original Drake's recipes and familiar car - the extraordinarily popular taste, texture and shape ton formats, consumer passion for of the light crispy Kit Kat wafers covered in smooth Drake's cakes will pick up right milk chocolate. Android KitKat is version 4.4 of where it left off. One of Drake's Google's mobile oper - cakes standout features was its ating system, devel - commitment to maintain kosher oped by the certification. That kosher company's engineers certification from the Or - under sweet-themed thodox Union remains codenames that today, and consumers began with Android can look for the circled- Google joins Cupcake 1.5 in Drake’s Devil Dogs, Coffee Cakes, U symbol (hechsher) on Hershey in Android KitKat 2009. Ring Dings and Yodels are back! cartons. cross promotion.

AVANTI SEPTEMBER | OCTOBER 2013 81

continued from page 81 convenient packaging, wholesome ingredients and gourmet flavors. Available for your Premium Snack section, the four blends include: • Almonds with Cranberries, Honey + Sea Salt —Whole almonds and cranberries, accented by organic honey, toasted sesame seeds and sea salt. • Cashews with Pomegranate + Vanilla —Whole roasted cashews, paired with pomegranate infused apples, and a touch of pure vanilla bean. Premium, better-for-you Sahale Snacks. • Pomegranate Pistachios —Exotic, yet accessible tastes combine in maple and cinnamon. this Moroccan-inspired blend, with pistachios, pomegranate, cherries, The Premium Blends and Glazed Nuts pouches retail for $3.99 – lemon and a hint of pepper. $4.99 MSRP and are available through McLane. • Maple Pecans —Traditional flavors of North American comfort: pecans, walnuts, cherries and apples blended and delicately glazed with LOGIC E-Cigs Continues Steady Growth HEINEKEN’S Electronic cigarettes manufacturer LOGIC Technology an - nounced that its products ranked first, second, third and fourth TOP-SELLING in SKUs for dollar sales per point distribution across the U.S. in BEERS OF MEXICO Nielsen's latest Item Rank Report. The study, based on sales from convenience stores nationwide, also reveals LOGIC elec - FIESTA PACK tronic cigarettes as the only major brand demonstrating in - Heineken USA is gearing up for the creased sales since the previous report. According to the season of celebrations and entertaining Nielsen Item Rank Report with the Beers of Mexico Fiesta Variety Pack, the all-in- ending August 3, 2013, LOGIC one party solution to drive consideration and incremental dominates the category, now hold - sales this holiday season. Available in 12 packs of bottles ing nine of the top 12 SKUs in the or cans November 1st through December 31st, the Beers U.S. Furthermore, the of Mexico Fiesta packs contain equal quantities of Dos Wells Fargo Securi - Equis Lager, Tecate, and Sol. Year-to-date case sales of ties C-Store Scanner Heineken’s Beers of Mexico pack are up 125 percent ver - Data Summary sus last year, with dollar sales up 137 percent for the shows that LOGIC same period. sales have grown At retail, channel-specific 887 percent as of IRC (instant redeemable July 6, 2013 over coupons) and MIR (mail in the prior year in unit sales. rebate) offers on high index - LOGIC e-cigarettes are available in ing fiesta related items—in - disposable and rechargeable versions. For more infor - Heineken’s Beers cluding fajita ingredients, chips LOGIC of Mexico variety pack sales and dips, wine and festive decora - mation about LOGIC E-Cigs has the are up 125 percent YTD. tions—will encourage take away of Technology, visit top four SKUs for dollar sales per point distribution. the Beers of Mexico pack and cross category products. www.LogicEcig.com. Colorful, eye-catching POS and a 12-case stacker de - signed to display the Beers of Mexico variety pack and Casino Gold HRS Premium Cigars special offer items will provide shoppers with convenient, Swisher International’s Royal Gold Cigars recently introduced its one-stop fiesta shopping that will also increase rate of Casino Gold HRS (High Roller Selection) handmade, long filler, pre - sale and drive higher retail basket rings. continued on page 84

82 AVANTI SEPTEMBER | OCTOBER 2013 continued from page 82 mium cigars from Honduras. Packaged in elegant, black New Welch’s Fruit wooden boxes of 21 cigars, Casino Gold HRS are available in five sizes—Ace, King, Queen, Jack and Joker. Snacks Mixed Fruit Blended and manufactured by the Power Wing Plasencia family in Danli, Honduras, Casino Gold HRS are medium-bodied, Promotion In Motion is offering a new flavorful cigars composed of a Habano Welch’s Fruit Snacks Mixed Fruit 72-count grav - Rosado wrapper from Jalapa, a ity feed power wing. Welch’s Fruit Snacks is the Cameroon binder, and three different #1 fruit snack and is still growing in c-stores. Nicaraguan fillers. With suggested re - Welch’s Fruit Snacks Mixed Fruit is gluten and tail prices from $5.45 to $6.85, these cigars fat free, contains no preservatives, and is allow all cigar smokers a chance to live made with real fruit—Strawberry, Raspberry, Welch’s Fruit Snacks Orange, White Grape, Grape, and Peach. Each Mixed Fruit 72-count like a “high roller” by enjoying a power wing. quality, premium cigar without 80-calorie pack contains 100 percent daily breaking the bank. Retailers can value Vitamin C and 25 percent daily value Vitamins A and E. obtain more information by con - continued on page 86 Casino Gold HRS premium cigars tacting their local Swisher representa - have SRPs of $5.45 to $6.85. tive or by calling Swisher International at 1-800-874-9720. SMOKEY MOUNTAIN SNUFF’S SPACE- Vital 4U Liquid Energy Coffee & SAVING CHUTE DISPLAY Screamin Energy Max Hit Maximize sales of America’s best-selling smokeless Precise Nutrition’s popular Vital 4U Liquid Energy Coffee and Screamin Energy Max Hit have been merchandised in 7-Eleven stores alternative with Smokey Mountain Snuff’s new vertical for over 20 years, helping franchisees boost sales and profits. The two chute display. Available in Peggable, Stand Alone or Self SKUs have generated exponential sales growth Stick, the 20-count chute display contains two versions over the years to the highest levels in the past 6 of Smokey Mountain Snuff (10 cans of each)—Winter - months averaging around green and Classic (87273-01290), or Wintergreen and 80,000 units/month. Now SEI Straight (87273-01295). Each has deleted both items from display costs $45. Smokey the system, and Precise Nutri - Mountain Snuff cans have an tion is asking franchisees to request that corporate make SRP of $2.99/$3.19, with a 100 them optional items so they percent sales guarantee. They can be ordered in the normal also have a one-year shelf life. manner. Smokey Mountain Snuff has experi - Keep Vital 4U Vital 4U Liquid Energy Cof - Liquid Energy enced 62 percent sales growth Coffee and fee and Screamin Energy Max over the last four years, and adds Screamin Energy Max Hit in your Hit are single serving, coffee- incremental sales and profits to stores for continued sales and profits. based energy packs uniquely your snuff sales. For more infor - packaged in a foil pouch for maximum convenience. Both of these products help customers feel alert and sharp for hours, and both mation, contact Richard Huns - contain a blend of Ginseng, B Vitamins and other nutrients. Don’t let Smokey Mountain Snuff’s berger at 214-914-5531 or new chute display. customers patronize your competition to satisfy their desire to buy Vital [email protected] 4U Liquid Energy Coffee and Screamin Energy Max Hit.

84 AVANTI SEPTEMBER | OCTOBER 2013 continued from page 84 sweetly spiced version invokes the nostalgic, baked-at-home flavor of Amer - Hemo-Rage Turbo Energy ica's favorite Pillsbury sweet roll. The suggested retail price is $1.69. Pre - pared and baked fresh daily in local bakeries across the country, the Shot BOGO Offer cinnamon rolls are delivered overnight to stores before the morning coffee Nutrex Research has announced crowd arrives. a limited time offer for 7-Eleven During the morning rush, participating 7-Eleven stores can serve the cin - franchisees: buy one try (12 shots) namon rolls warm in mini bakery boxes. Created just for the Pillsbury cinna - of Hemo-Rage Turbo Energy Shots mon roll, the microwave-safe boxes also are available at the bakery case for and get one tray free. This offer ties customers who choose to select an unheated roll to eat later. Rolls take just into a special in-store “2 for $5” 10 seconds to heat in a microwave oven in the bakery boxes. deal promoted directly to the prod - uct’s very engaged customer base. Swisher Sweets BLK Pipe Tobacco Hemo-Rage Turbo Energy Shots are available in two flavors—Apple Tip Cigarillos 2-Count Pouch Limited-time Hemo-Rage Turbo Ambush and Sucker Punch. Order Swisher’s popular Swisher Sweets BLK Pipe Tobacco Tip Cigarillos are Energy Shot BOGO offer. direct and save now through No - now available in a resealable 2-count pouch. Smokers who enjoy the vember 07, 2013. Contact Mike at 1-888-368-8739 or Stevi at unmistakable, “scentsational” aroma of pipe tobacco through the [email protected]. unique black tip of Swisher Sweets BLK now can purchase two cigars for 99-cents, smoke one, and preserve the quality and freshness New Pillsbury Cinnamon of the second cigar to enjoy later. Roll Exclusive Both Smooth and Cherry flavors are 7-Eleven and General Mills recently unveiled available in the new 2-count the new Pillsbury Cinnamon Roll—7-Eleven’s pouch, offering consumers the first-ever warm bakery offering, and the first Pills - quality and flavor expected bury-branded fresh-bakery item with a conven - from pipe tobacco cigars, made Swisher Sweet. Retailers can offer ience retailer. Available with hot foods as well as in The new Pillsbury Cinnamon the fresh bakery case at participating stores, 7-Eleven's Roll is a 7-Eleven exclusive item. Swisher Sweets BLK Pipe Tobacco Tip Cigarillos as singles, impulse, three-packs, or two in a resealable pouch. For Swisher Sweets BLK Pipe more information or to order Swisher Sweets Tobacco Tip Cigarillos are FUN & TASTY NESTLÉ BLK Tip Cigarillos for your store, contact your now available in a reseal - PELA POP FROZEN TREAT Swisher representative at 1-800-874-9720. able 2-count pouch. Nestlé recently introduced its internationally renown Pela Pop—a unique frozen treat that looks like a banana New Sour Patch Lineups & and tastes like one—to U.S. stores. Pela Pop has an edible Gum Pouches banana flavored gummy peel and a creamy, delicious Mondelez International announced it is ready to rein - vanilla center. Eating a Pela Pop is as easy as bite, peel and vigorate the gum and candy categories with its new Sour enjoy, and is the per - Patch lineups and gum pouches. fect addition to back - Sour Patch will help accelerate the momentum on yard barbecues, “Sour” with increased usage occasions and new items. The afternoon play dates, new Sour Patch lineups will deliver a delicious sour experi - The innovative new Nestlé Pela Pop birthday parties, or has a gummy peel and vanilla center. ence in a long-lasting chewy chain, and drive frequency whenever there’s a New Sour of Sour Patch Kids usage by extending into exciting new craving for a fun, delicious treat. With something so fun Patch lineups. textures/forms. The company said the concept delivers and tasty, kids and adults alike will be entertained each extremely strong scores for trial, liking, and purchase intent. The new Sour and every time, keeping them coming back to your store Patch lineups will be supported by a 360-Degree Activation Plan. for more. The perfect sized treat for kids, Pela Pop contains Introducing New Gum Pouches: Mondelez said it will drive larger size no artificial colors and is low in fat. gum pouches as a means of elevating value across its gum brands and re - continued on page 88 86 AVANTI SEPTEMBER | OCTOBER 2013

continued from page 86 store category growth. The front Refresh Your Sales With Starburst check-out gum business is highly Brand Sorbet Bars expandable—the more product Starburst Brand Sorbet Bars bring a new and exhilarating splash of consumers have the more they will strawberry to expand the frozen novelty category. The new item also chew (Mondelez’s 2011 FE Confec - rounds out the popular MARS Ice Cream portfolio, giving consumers a tionery Study; Kantar Retail Shop - light and delicious alternative in the refreshment segment. Offered at a perGenetics and TradeDNA competitive introductory price point, this low-priced item with high brand Analysis). Yet, an opportunity exists recognition has the perfect com - in gum to improve the buy rate by in - Trident and bination for increased volume creasing the amount purchased per trip Dentyne Ice Gum Pouches and sales. The #3 confection (Nielsen—Household Homescan Panel Total US 52 Ending Q2 2012). brand, Starburst has a wildly Gum buyers likely believe that larger sizes provide greater value due to the devoted fan base who will more attractive price per piece (Source: Market Tools Gum in a Pouch jump at the chance to cool off DCM Report, September 2011). with a frozen version of their fa - Mondelez’s gum pouches with 40 Starburst Brand Sorbet Bars are vorite fruit chews (IRI, Confec - bursting with flavor and profit potential. pieces of gum offer a better price tions Dollar Sales, 2012 per piece vs. other major pack Calendar Year). In fact, consumers are already biting: in consumer testing, types. Starburst Brand Sorbet Bars scored an amazing 89 percent in Purchase In - tent after tasting (Q Research Consumer Test, May 2013). Contact your FUMA Mars representative or distributor for more information. Launches New In Zone Rebrands Product E-Cig Products Lines To ‘good2grow’ Electronic cigarette maker FUMA announced one- In Zone Brands, maker of children’s juice products TummyTickler stop shopping for premium e-cigarette products with Tots, TummyTickler and BellyWashers, recently announced it is rebrand - the release of new products that raise the bar to the ing all three product lines under the new brand trademark good2grow. next level with solid profit margins. The new brand will begin rolling out broadly in March 2014 and will be The newest additions in FUMA’s product lineup available on store shelves nationally shortly thereafter. good2grow will include: continue to offer three serving sizes based on nutritional guidelines for 1) Disposable & Rechargeable (all in one—code name portion control, as well as the great taste and proprietary character Dischargeable) that retails at $9.38 MSRP. tops that have created strong profitable growth for retailers. All 2) A two-pack of cartridges that feel soft like a traditional burn-down cig - good2grow products are pure, all natural juice with no added sugar or arette and will retail for $5.99 MSRP (available in multiple tobacco and high fructose corn syrup, and no added colors, menthol blends, as well as strengths). flavors or preservatives. 3) New USB charger that works on all FUMA Coinciding with the rollout of the new rechargeable products for $8.56 MSRP. good2grow brand in March 2014, two new 4) New complete line of FUMA E-hookah dispos - fruit and vegetable juice blends will join the ables—“Fookah” MSRP $7.96. (Available in 13 delec - 6-ounce serving offerings: Strawberry Kiwi table tastes of hookah shisha tobacco blends that are and Tropical Fruit Medley. These new juice top sellers; variety pack shipper available.) blends will feature all natural apple, carrot 5) All new products come in a mid-box shipper with and beet juice formulated with natural fruit integrated POS/POP that have a tear away top and flavors like strawberry, pineapple, kiwi and auto-merchandises the products. mango to create tasty drinks that kids 6) New hardwood category cabinet for large volume re - FUMA’s new e-cig can’t resist. Plus, these new products pro - tailers and back bar solutions. (POS/POP for all new products provide high vide the nutrition of one combined full products to aid in product movement at the retail level.) rings and solid profit serving of fruits and vegetables with 25 per - margins. Please contact your FUMA representative to schedule New flavors Strawberry Kiwi cent less sugar, keeping moms happy too. your own on-site launch meeting and learn more and Tropical Fruit Medley will For more information, please visit about FUMA’s exciting new products. join the good2grow line in March 2014. www.good2grow.com. 88 AVANTI SEPTEMBER | OCTOBER 2013

Affilia te Members

National Coalition Affiliate Members support the franchisee community. The company representatives Bdirect Boston Beer Co. Ghislaine Cagle Joseph Kaczynski listed below can answer franchisee questions about 11601 Wilshire Blvd., Suite 1800 205 Park Ave. new and recommended products, distribution, and Los Angeles, CA 90025 Garden City Park, NY 11040 new promotions. Please call or e-mail them! 310-914-5999 800-372-1131 x 5441 972-505-9063 917-584-5517 [email protected] [email protected] 5-Hour Energy Anheuser-Busch, Inc. BIC Consumer Products Brollytime, Inc. Vince Sullivan Alan Lakatta Allyse Milentz Gred Edson 717 Glen Abbey Dr. 3214 Roan Way 2124 Chambers Drive 35 East Wacker Dr Ste 900 San Antonio, TX 78259 Mansfield, TX 76063 817-477-0142 Allen, TX 75013 Chicago, IL 60601 210-788-1547 972-954-7497 646-712-1277 cell 210-497-8634 817-528-5333 [email protected] 813-841-8031 312-854-7606 office vince@fivehour.com [email protected] [email protected] Acosta Sales & Marketing Anonymous Consulting & Sales LLC Blue Bunny Ice Cream Co. Bytox, Inc. Beth Coldsmith Randy Martin Felix Elinson 6106 Mesa Grande Andy Steele 134 Playmoor Place 5915 Caymus Loop 1733 Sheepshead Bay Road Austin, TX 78749 Windemere, FL 34786 Brooklyn, NY 11235 512-301-9717 Montgomery, TX 77316 773-328-2490 712-500-4108 718-791-5450 512-657-4317 407-340-3265 718-32-4789 [email protected] 773-345-0734 [email protected] [email protected] [email protected] Advantage Sales & Mktg Bolthouse Farms Campbell Sales Co. Linnea Fohlbrook Aon Risk Services Tonya Leffall Bill Jachthuber Joe Pupo 4401 West Gate Blvd., Suite 200 Bakersfield, CA 404-408-0965 425 Brooke Circle Austin, TX 78745 2711 Haskell Avenue, Ste 800 Dallas, TX 75204-2999 404-233-1307 Roswell, GA 30075 214-843-7012 214-989-2349 [email protected] 770-667-9303 [email protected] 972-757-3322 Bolthouse Farms 404-680-7998 Altria Group Dist. Co. renee.leff[email protected] Patrick Pinner [email protected] Erin Haby Apter Industries 1324 Rio Vista Ave. Capitol Cups Inc 2600 Network Blvd., Ste 200 Scott Apter Fort Myers, FL 33901 Clare Craig Frisco, TX 76258 PO Box 456 239-209-3857 21 Creek Court 830-931-5516 McKeesport, PA 15134 [email protected] Palm Coast, FL 32137 [email protected] 412-672-9628 Bon Appetit 334-321-3322 American Foods Group 412-999-8333 508-748-0372 [email protected] Mike Kawas Jim Slater 4820 E. 50th Street [email protected] 2720 Quail Ridge Court Argo Tea Vernon, CA 90058 CareerBuilder Highland Village, TX 75077 Pete Popovich 323-584-9500 Holly Elkins 972-793-2470 2001 Homewood Drive 913-708-5526 2745 N Dallas Parkway Suite 6005 [email protected] Anchorage, KY 40223 [email protected] Plano, TX 75093 757-880-2149 Anheuser-Busch, Inc. Bon Appetit 972-951-2420 Joey Gonzalez 502-254-5449 214-678-9815 [email protected] Bob Matwiczak 3200 Barwood Drive 4820 E. 50th Street [email protected] McKinney, TX 75071 Barbot Insurance Services Vernon, CA 90058 Charms Company 321-228-2877 John Barbot 800-347-8021 x 114 Frank Mecca [email protected] 9001 Grossmont Blvd, Ste 711 661-714-2401 7401 S. Cicero Ave. La Mesa, CA 91941 Anheuser-Busch, Inc. 619-337-0290 [email protected] Chicago, IL 60629 Ken Grabe 619-609-1882 Borden Dairy Company 773-838-3400 x 3432 1970 Countryside Drive [email protected] Randy Watkins 717-571-1708 Frisco, TX 75034 5704 Grand Oak Court [email protected] 972-983-8470 Bazooka Candy Brands David Johnson Colleyville, TX 76034 Coca-Cola, USA 314-445-3543 214-207-4631 Libby Goldschmid [email protected] 15902 Halsey Road Tampa, FL 33647 [email protected] 917 Wescott Lane 813-431-5855 Atlanta, GA 30319 813-910-3440 404-729-8695 [email protected] [email protected]

90 AVANTI SEPTEMBER | OCTOBER 2013

Affilia te Members

Cold Star Inc. Dae Yang Industrial Co dba Europa Sports Products Frito Lay/PepsiCo Hanlon Harris III Power of EV Chris Hawks Simon Kang 29 Davis Ave Paul Park 11401- H Granite Street 26672 Town Center Drive #360 Mount Ephraim, NJ 08059-1613 380 Lexington Ave Ste 1705 Charlotte, NC 28273 Foothill Ranch, CA 92610 856-931-0300 New York, NY 10168 800-447-4795 x 1253 714-917-9537 609-502-8221 201-723-0055 980-213-7659 [email protected] [email protected] [email protected] [email protected] Fuma International Comcast Business Services Dean Foods Express Promotions Greg Conley Michelle Brochet Steve Gibson Dan Blutstein 879 South Progress Drive, Suite D 1701 JFK Blvd 2711 North Haskell Ave Ste 3400 12066 E Welsh Trail Medina, OH 44256 Philadelphia, PA 19103 Dallas, TX 75204 Scottsdale, AZ 85259 330-391-7216 610-772-0389 214-721-1443 480-634-8053 312-238-8671 928-222-0389 972-768-8451 480-634-1421 [email protected] [email protected] [email protected] [email protected] General Mills, Inc. Commonwealth-Altadis Inc Detour Nutrition Products Ferrero Sales Co Inc. Randy Johnson Tim Chauncey Jane Smith Francine Fielding 1501 Wilana Drive 265 Oak Bluff Drive 7572 Mt. Zirkel The Franklin, 834 Chestnut St, Apt 1132 Tyler, TX 75703 Cross Roads, TX 76227 Littleton, CO 80127 Philadelphia, PA 19170 903-581-7177 716-201-6168 720-270-6312 856-429-6187 651-260-4281 [email protected] [email protected] 732-648-8057 [email protected] fran.fi[email protected] ConAgra Foods Diageo-Guinness USA Green Smart Living Ryan Shaffer Dave Castle FiFo Wireless Inc Jeremy West 13330 Noel Rd, Suite 529 5192 S. Ohio St. Abraham Mekki 324 S. 400 W. Suite 150 Dallas, TX 75240 Yorba Linda, CA 92889 10900 NW 21st Street Ste 210 Salt Lake City, UT 84101 210-428-8855 714-777-0616 Miami, FL 33172 619-786-6844 402-957-9544 714-414-2527 800-922-1602 801-747-9744 Ryan.Shaff[email protected] [email protected] 305-592-7906 [email protected] abraham@fifowireless.com ConAgra Foods Don Miguel Mexican Foods, Inc. Haribo of America, Inc. Fin Branding Group Kristopher Tong Todd Ginley Tim Witt 3124 Olive Street, # 9 Jennifer Hunter 7 Bryan Court 47 Walkers Ridge Drive 1825 Woodlawn Dr., Suite 204 St Louis, MO 63103 Mansfield, TX 76063 Baltimore, MD 21207-4045 314-371-1018 Ponte Vedra Beach, FL 32082 214-883-9910 251-479-2067 479-372-6123 714-313-9895 972-670-8875 479-531-2181 [email protected] 512-983-4468 [email protected] jhunter@fincigs.com [email protected] Convenience Valet Dr. Pepper Snapple Group FM Facility Maintenance Heineken USA James Blosser Craig Barnhouse John Wood 2755 W. Thomas St. Juliette Dickens 4230 Whitley Place 10 Columbus Boulevard, 4th Floor 139 W. Slatestone Circle Melrose Park, IL 60160-2934 Prosper, TX 75078 The Woodlands, TX 77382 800-351-2000 Hartford, CT 06106 972-673-5208 860-466-7646 832-585-0448 800-351-2280 214-893-0635 832-326-1889 [email protected] 203-530-6978 [email protected] [email protected] [email protected] Crossmark Dr. Pepper Snapple Group om Heinz North America Cheryl O'Leary Dan Ladehoff Sean Madden 5100 Legacy Drive FM Facility Maintenance 5301 Legacy Dr. John Pavia 4000 Southbrook Ct Plano, TX 75024 Plano, TX 75024-3109 Kennesaw, GA 30152 469-814-1508 10 Columbus Boulevard, 4th Floor 972-673-8766 Hartford, CT 06106 724-709-7573 972-803-9630 972-510-9525 412-425-9566 [email protected] 860-466-7428 dan.ladehoff@dpsg.com 203-530-6978 [email protected] Crown Imports LLC Dr. Pepper Snapple Group [email protected] Hershey Chocolate USA Bleu Vaughn Tom Nawa James Jett 14927 S. Bartlett Ave. Frito Lay 5301 Legacy Dr. John Dean 3124 Joyce Way Plainfield, IL 60544 Plano, TX 75024-3109 Grapevine, TX 76051 815-577-7917 7701 Legacy Drive 972-673-8766 Plano, TX 75024 682-223-1055 773-251-8443 214-212-1232 972-334-2958 717-319-4558 [email protected] [email protected] [email protected] [email protected]

AVANTI SEPTEMBER | OCTOBER 2013 93 Affilia te Members

Impact Sales & Marketing Johnsonville Sausage, LLC Kellogg's Company Lockton Companies Diane Drew Steve Dutton Mark Gramlich Tanya Sanders 1851 Windmill Run 366 Winter Park Lane 3601 Rottino Drive 717 N. Harwood Street #2500 Wimberley, TX 78676 Powder Springs, GA 30127 McKinney, TX 75070 Dallas, TX 75201 512-847-3284 770-439-7720 919-244-6766 214-969-6742 512-847-7284 920-627-6705 919-244-9729 214-693-7412 [email protected] [email protected] [email protected] [email protected] In Zone Brands, Inc Johnsonville Sausage, LLC Kind Healthy Snacks LoneStar Plastics Laura Charon Eugene Rech Carolyn Hood Jason Duane 2859 Paces Ferry Road SE Suite PO Box 906 20610 Windrose Bend Drive 2875 Market St, Suite 100 Atlanta, GA 30339 Sheboygan Falls, WI 53085-0906 Spring, TX 77379 Garland, TX 75007 678-718-2028 920-453-6960 281-376-5779 972-271-9410 678-718-2031 920-918-9102 646-574-1975 972-202-2647 [email protected] [email protected] [email protected] [email protected] Insight Beverages JoJo's Jerky Kraft Foods Lowrider Shades Kimberly Lachman Anya Hippert Mark Kamin Vince Tavani 750 Oakwood Road 8022 S Rainbow Blvd., #295 5100 Legacy Drive 202 E Palm St Lake Zurich, IL 60047 Las Vegas, NV 89139 Plano, TX 75024 Exeter, CA 93221-1753 847-847-3114 702-498-5618 847-646-5192 559-592-6252 847-404-9203 [email protected] [email protected] 415-306-2845 [email protected] [email protected] JoJo's Jerky Kretek International InterExchange, Inc Hans Hippert Roger Sachs Malt-O-Meal Co. Leslie Colossi 8022 S Rainbow Blvd., #295 5449 Endeavour Court Jim Leavitt 161 Sixth Ave.,10th Floor Las Vegas, NV 89139 Moorpark, CA 93021 7308 E. Wethersfield Rd. New York, NY 10013 702-812-2457 805-774-4154 Scottsdale, AZ 85260 917-305-5416 [email protected] [email protected] 480-656-7149 845-641-8397 480-226-1465 JOOSE Beverage Kretek International [email protected] [email protected] Brad DuLong Scott Sinner Inventure Foods Inc 5355 Mira Sorrento Pl., Suite 270 5449 Endeavour Court Mars Chocolate Russ Law San Diego, CA 92121 Moorpark, CA 93021 Kelly Matthews 1420 Carrington Court 619-461-5220 805-531-8888 4306 Hazy Meadow Lane Lawrenceville, GA 30044 817-740-2326 805-315-6044 Grapevine, TX 76051 770-987-7578 [email protected] [email protected] 817-329-3181 678-787-8304 817-233-9894 JOOSE Beverage Larry Flynt Publications kelly.matthews@effem.com [email protected] Rodney Schilling Gerry Awang Jack Link's Beef Jerky 5355 Mira Sorrento Pl., Suite 270 8484 Wilshire Blvd, #900 MARS Ice Cream Carter Adair San Diego, CA 92121 Beverly Hills, CA 90211 Cynthia King 11416 Donnel Ct. 11955 Bamberg Lane Just Born, Inc. 323-651-5400 x 7828 Frisco, TX 75035 [email protected] Charlotte, NC 28273 Robert Bollinger 704-604-0109 972-731-0229 1431 East Briarwood Terrace LegalShield 214-914-5855 704-504-9912 Phoenix, AZ 85048 Dusty Korbel cynthia.king@effem.com [email protected] 480-264-5396 2501 N Harwood Suite 1501 JFC International, Inc. 480-293-4644 Dallas, TX 75201 McLane Company Inc. Nori Sugisawa [email protected] 580-421-6344 Jack MacIver 4747 McLane Parkway 7101 E. Slauson Ave. Kan Pak 972-345-0163 Los Angeles, CA 90040-3622 [email protected] Temple, TX 76504 Steve Soza 254-771-7371 323-887-5204 8012 Davis Mountain Pass Liggett Vector Brands Inc 323-829-0114 254-493-9561 Austin, TX 78726 Carl Stansberger [email protected] [email protected] 512-922-1524 3716 Burgee Court Johnson & Johnson 248-960-1700 Keller, TX 76244 MillerCoors Brewing Co. Todd McDermott [email protected] 817-312-7859 Matthew Rossi 4441 Driving Range Road 806-398-0745 3000 Internet Blvd., Suite 400 Corona, CA 92883 [email protected] Frisco, TX 75034 414-213-3428 208-921-0570 312-496-2700 [email protected] [email protected]

94 AVANTI SEPTEMBER | OCTOBER 2013

Affilia te Members

Modern Technology Mother Parkers Tea & Coffee National Tobacco Company Nestle Professional John Douglas Peter Doyle Thomas Helms III Susan Davis 16413 N 91st Street PO Box 920779 5201 Interchange Way 3916 Vintage Place Scottsdale, AZ 85260 Houston, TX 77292 Louisville, KY 40229 Flower Mound, TX 75028 480-659-0025 713-682-8250 502-774-9220 972-355-6477 [email protected] 832-725-1749 817-369-4076 214-695-8389 Mondelez International [email protected] [email protected] [email protected] Tracey Brown NACS 4217 Wichita Drive Necco/New England Confectionary Nestle Purina PetCare Pamm Chaney Al Gulachenski Michael D'Ambrosi Carrollton, TX 75010 1600 Duke St., 6th Floor 972-492-4949 1048 Village Parkway 1 Checkerboard Square-4C Alexandria, VA 22314 Coppell, TX 75019 St. Louis, MO 63164-0001 806-239-3357 703-518-4244 [email protected] [email protected] 972-977-2446 314-982-4533 Monster Energy 972-869-7665 617-872-2474 Trusha Patel Nat Sherman, Inc. [email protected] [email protected] Jeff Portnoy 550 Monica Circle, Suite 201 Nestle DSD Nestle USA Corona, CA 92880 2200 Fletcher Avenue Fort Lee, NJ 07024-5005 Joel Hirchert Jackie Lawing 951-403-8493 2055 Main Street 9030 County Road 2432 [email protected] 805-341-3545 [email protected] Irvine, CA 92614 Poetry, TX 75160 Morris National Inc. 909-841-6991 972-635-7523 John Harris National Tobacco Company [email protected] 940-368-4413 760 N. McKeever Ave. Tim Catrell [email protected] Azusa, CA 91702 6612 Kimlinda Lane 626-385-2000 Sarasota, FL 34243 678-296-3796 941-321-0991 [email protected] [email protected] Affilia te Members

Nestle Waters NA Pabst Brewing Company Perfetti Van Melle USA Popcorn Indiana Lori Appleton Jon Kuehnhold Scott Swanson Adam Lennon 1014 Tulip Way 2411 Creekwood Ct. 3645 Turfway Rd. 1 Cedar Lane Carlsbad, CA 92011 Keller, TX 76248 Erlanger, KY 41018-0190 Englewood, NJ 07631-4802 760-448-6496 214-695-9797 859-383-8264 201-645-4865 714-287-9289 [email protected] 918-231-0119 201-906-8639 [email protected] [email protected] Patco Management Inc. [email protected] NRG Innovations, LLC Javier Fausto Perky Jerky Joe Fairleigh Zach Greenberg Prime Time International Co. 5 Technology Place, Suite 3 Robert Chiaradio, Jr. 550 SW 12th Ave., Suite 550 East Syracuse, NY 13057-1210 7400 E Crestline Cir Suite 130 Deerfield Beach, FL 33442 Greenwood Village, CO 80111-3652 PO Box 2403, 31 Cove Rd. 315-214-8303 Westerly, RI 02891 954-418-307 [email protected] 818-585-8288 954-418-0207 720-389-7171 401-315-2193 [email protected] Pepsi / QTG [email protected] 401-864-4094 Oberto Brands Jacob Pak PHD Marketing, Inc. [email protected] 7701 Legacy Drive #2A-44 Lisa Austin Mike Ahmad Procter & Gamble 7060 S 238th St. Plano, TX 75024 5560 East 61st Street 972-334-2618 Perri Brackett Kent, WA 98032-2914 Commerce, CA 90040 1229 Winnipeg Drive 480-320-8649 214-310-2043 323-201-2285 [email protected] [email protected] 213-402-2907 Lewisville, TX 75077 [email protected] 972-221-9532 Ocean Spray Cranberries, Inc. Pepsico 972-221-3873 Bruce Levine Rob Taylor Pinnacle Food Products [email protected] 7800 60th Ave. 7701 Legacy Drive #2A-44 Matt Mirguet Kenosha, WI 53142 Plano, TX 75024 PO Box 93733 262-942-5385 972-334-2510 Southlake, TX 76092 847-372-3732 972-207-4096 585-236-6024 [email protected] [email protected] [email protected] Affilia te Members

Promotion in Motion, Inc. Sargento Foods, Inc. Swedish Match Unreal Brands Inc. Marilee Edwards Kevin Cross Aaron Choate Stephen Ornell 715 2nd Street NE Schwan's 403 Wellington Court 1048 Village Parkway Primghar, IA 51245 Derrick Nay Southlake, TX 76092 Coppell, TX 75019 712-957-3100 1248 South 2600 West 817-312-2017 810-225-5508 712-261-4011 Syracuse, UT 84075 817-488-0614 972-977-2446 [email protected] 801-725-8540 [email protected] [email protected] Pugs Gear 507-537-5462 [email protected] Swisher International, Inc. US Nutrition Inc. Kyle Payton Ted Zahn Kristin Oehlke 215 North 1800 West Shamrock Farms 657 Channel Ridge Dr. 24020 N. 24th Place Lindon, UT 84042 Chris Perry Rockwall, TX 75087 Phoenix, AZ 85024 801-785-8801 x151 450 Chinahill Court 904-378-6499 480-807-8570 801-850-4457 Apopka, FL 32712 [email protected] 480-213-8748 [email protected] 407-921-2121 [email protected] 602-803-7497 Time Warner Cable Business Class Red Bull North America [email protected] Brent Daugherty USA Today Thomas Gibson 1900 Blue Crest Lane Diane Barrett 426 Beach 125th St. Shamrock Farms San Antonio, TX 78247 Rockaway Park, NY 11694 Michael Stremlau 7950 Jones Branch Drive 1900 West Ruthrauff Road 210-326-5000 McLean, VA 22108 347-752-0272 214-393-9616 [email protected] Tucson, AZ 85705 407-718-2599 520-904-7580 [email protected] [email protected] Red Bull North America 520-888-5916 Time Warner Cable Business Class Rachel Ridenour [email protected] VPX Redline Energy Chris Landrum Dave Serrato 3914 Van Ness Lane 11011 E Peakview Ave. Dallas, TX 75220 Simply Orange 936 McCall Circle 214-366-0708 Tim Zeigler Centennial, CO 80111-6808 Corona, CA 92881 2181 Long Branch Dr. 303-649-8017 954-288-7509 214-558-2482 Frisco, TX 75034 [email protected] [email protected] 954-389-1538 972-377-3785 [email protected] Reddy Ice 972-740-0941 Tootsie Roll Industries, Inc. Bill Blane [email protected] Rick Jenkins West Coast Chill, Inc. 1115 Montview Rd. 8750 N Central Expressway #1800 Smokey Mountain Snuff Jonathon Blair Dallas, TX 75031 Knoxville, TN 37914 1711 Langley Ave. Richard Hunsberger 865-523-1314 214-442-1086 668 Ziegler Lane Irvine, CA 92614 214-364-8719 Waco, TX 76708-7100 865-300-4178 949-474-2200 [email protected] 214-914-5531 [email protected] 949-474-2224 254-836-1517 TSN West, LLC [email protected] Rich Products Corporation [email protected] Joe Bisacca Mike Sullivan Whitewave Foods 8401 Yancey Ct. Snyder's-Lance Inc. 4001 Salazar Way, PO Box 679 Paul Shayne Plano, TX 75025 David Galindo Frederick, CO 80530 2633 Valley Creek Trail 972-335-9670 20252 N. 80th Lane 303-530-0600 McKinney, TX 75070 214-417-8621 Peoria, AZ 85382 817-320-3323 214-544-7431 [email protected] 800-233-7125 x 5393 [email protected] 214-732-4038 623-640-5521 RJ Reynolds Tobacco Co. [email protected] Twang Partners Ltd. [email protected] Jeanne Swisher Larry Fuller SportsLine Distributors Windsor Foods 7 Colina Lane 6255 WT Montgomery Rd. Steve Horine Rolling Hills Estates, CA 90274 Marsha Bolnick San Antonio, TX 78252-2227 1600 Leider Lane 4217 Chetham Drive 424-206-2103 210-226-7008 Ft Wayne, IN 46835 Buffalo Grove, IL 60089 210-560-6629 714-814-7743 800-833-2386 x 20 260-492-9797 [email protected] [email protected] [email protected] 260-413-1315 Ruiz Food Products Sugardale Foodservice Unilever Ice Cream [email protected] Brandi Davis Michael McCrory Chad Keener PO Box 37 Wrigley Sales Co. 217 Park Avenue 3853 Ferndale Lane Edward Keogh Dinuba, CA 93618 Meadville, PA 16335-1240 Frisco, TX 75034 559-591-5510 x 2156 952-239-4964 1208 Williamsburg Lane 800-860-3053 Crystal Lake, IL 60014 949-573-5753 814-336-9453 847-398-9765 [email protected] [email protected] [email protected] 312-953-9964 [email protected] Santa Fe Natural Tobacco Co. Sunny Delight Beverages Unilever Ice Cream Bob Brenton Steve Bruton Jeff Leino 218 Crown Ridge 1301 Canterbury Court 1105 West St. James Street New Braunfels, TX 78132 Arlington, TX 76013 Arlington Heights, IL 60005 830-629-3190 817-795-1068 847-305-4218 830-708-8458 817-874-2660 908-578-3617 [email protected] [email protected] Jeff[email protected]

98 AVANTI SEPTEMBER | OCTOBER 2013

Franchise Owner’s Association Regional Board Meeting Dates The following dates show planned regional FOA meetings. All franchisees and vendors are invited. To attend, please call or e-mail ahead to verify meeting dates, times and locations. 7-Eleven FOAC San Francisco/Monterey Bay Phone: 312-253-7342 Phone: 650-996-9479 November 21, 2013—Board Meeting November 12, 2013 December 19, 2013—Board Meeting Pacific Northwest FOA Metro New Jersey FOA Greater Bay FOA Phone: 253-861-6737 Meetings Location: Akbar Restaurant in Edison, NJ Phone: 707-328-3960 November 6, 2013 Phone: 908-232-1336 November 19, 2013 November 27, 2013 December 17, 2013 San Diego FOA Phone: 619-713-2411 South Nevada/Las Vegas FOA November 21, 2013 Phone: 702-249-3301 foa events November 7, 2013—Board Meeting Cal-Neva FOA November 21, 2013—General Meeting & Phone: 775-826-7111 Elections July 17, 2013 Chesapeake Bay FOA November 20, 2013 FOA Of Greater Los Angeles Vendor Trade Show Phone: 619-726-9016 Southern California FOA Virginia Beach Convention Center Location: Brea Embassy Suites Phone: 818-357-5985 Virginia Beach, Virginia November 19, 2013 November 20, 2013 April 29, 2014 Phone: 757-650-2929 7-Eleven FOAC Trade Show Odeum Expo Center Advertisers Index Villa Park, Illinois May 1, 2014 Anheuser Busch ...... 4 Johnson&Johnson ...... 67,71 Precise Nutrition ...... 51 Phone: 847-971-9457 Aon Risk Services Southwest 40 Just Born Inc...... 23 Promotion in Motion ...... 85 Southern California FOA Campbell Sales ...... 95 Kellogg's ...... 7 Sahale Snacks ...... 87 Trade Show Coca-Cola ...... Cover 2 Kretek ...... Cover 4, 14,76 Santa Fe Tobacco ...... 80 Pasadena Convention Center Dean Foods ...... 9 Lockton ...... 92 Shamrock ...... 30 Pasadena, California Don Miguel ...... 45 Logic Ecig ...... 52-53 Simply Orange ...... 20-21 May 21, 2014 Phone: 818-357-5985 Dr Pepper Snapple Group ...... 12 Mars Chocolate ...... 11 Smokey Mountain ...... 44 Duracell ...... 56 Maruchan ...... 46 Snyder's ...... 83 7-Eleven FOAC Ferrero ...... 29 McLane ...... 60 Specialty Brands ...... 63 Charity Golf Outing Fifo Wireless ...... 99 Mondelez ...... 8 Sunny-D ...... 69 St Andrew's Golf and Country Club West Chicago, Illinois Fin ...... 100 National Tobacco ...... 58 Swedish Match ...... 6,38 August 13, 2014 Fuma ...... 79 Nestle Confections & Snacks .31 Swisher International ...... 65 Phone: 847-971-9457 Heineken ...... 14 Nestle Professional ...... 37 Twang ...... 96 7-Eleven FOAC Hershey ...... 33 Nestle Waters ...... 25 Unilever Good Humor .....3,5,27 Holiday Trade Show & Party Hot 'N Spicy ...... 54 Nutrex Research ...... 89 Uptime ...... 97 Holiday Inn North Shore Insight Beverages ...... 35 Oberto ...... 73 Whitewave Foods ...... 13 Skokie, Illinois November 5, 2014 In Zone Brands ...... 42 Peak Antifreeze ...... 91 Wrigley ...... 103 Phone: 847-971-9457 Inventure Foods ...... 41 Perfetti Van Mele ...... 17 Windsor ...... 75 AVANTI SEPTEMBER | OCTOBER 2013 101 National Coalition foa events Board of Directors Meeting NCASEF Marriott City Center Metro New Jersey FOA Dallas, Texas February 19-21, 2014 Trade Show Atlantic City, New Jersey National Coalition November 6-7, 2013 board Board of Directors Meeting Phone: 908-232-1336 Walt Disney World Dolphin Hotel Orlando, Florida 7-Eleven FOAC July 10-11, 2014 Holiday Trade Show & Party me et ings Holiday Inn North Shore National Coalition National Coalition Skokie, Illinois Affiliate Meeting 2014 Convention & Trade Show November 6, 2013 Marriott City Center Walt Disney World Dolphin Hotel Phone: 312-253-7342 Dallas, Texas Orlando, Florida July 12-16, 2014 SF/MB FOA Holiday Party February 17-18, 2014 Embassy Suites Milpitas Milpitas, California December 6, 2013 Phone: 510-754-1113 Greater Bay FOA Holiday Party (location to be announced) December 6, 2013 Phone: 707-328-3960 South Nevada/Las Vegas FOA Table Top Trade Show & Holiday Party (location to be announced) December 6, 2013 Phone: 702-769-2301 San Diego FOA Eastern Virginia FOA Metro New Jersey FOA Holiday Party Trade Show Holiday Party Harrah’s Rincon Casino Virginia Beach Convention Center (location and date to be finalized) Valley Center, California Virginia Beach, Virginia December 6 or 13, 2013 December 7, 2013 March 17, 2014 Phone: 908-232-1336 Phone: 619-713-2411 Phone: 757-247-6152 Southern California FOA Baltimore FOA Delaware Valley FOA Holiday Party Holid ay Party 2013 Greater Philadelphia Trade Show Ararat Banquet Hall (location to be announced) Springfield Country Club Granada Hills, California Baltimore, Maryland Springfield, Pennsylvania December 7, 2013 December 12, 2013 April 9, 2014 Phone: 818-357-5985 Phone: 410-218-2939 Phone: 610-306-7119 Pacific Northwest FOA San Diego FOA & FOA Of Pacific Northwest FOA Christmas Party &Trade Show Greater LATrade Show Annual Trade Show Pechanga Resort and Casino (location to be announced) (location to be announced) Temecula, California April 17, 2014 December 7, 2013 January 15, 2014 Phone: 253-861-6737 Phone: 253-861-6737 Phones: 619-726-9016/619-713-2411

102 AVANTI SEPTEMBER | OCTOBER 2013