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The Winner's Column

July 9, 2010 // By Eddy Goldberg

As savvy franchise companies continue to flourish in this challenging economy, FUSR will continue to bring you good news each month, highlighting brands that are adding units, increasing comp store sales, striking deals with investors, and continuing to grow despite the economy - maybe even because of it. And, as the U.S. struggles through its "jobless recovery," growth-oriented franchisors continue to look overseas for expansion opportunities. To be considered for next month's Winner's Column, please send your Good News to editorial@franchiseupdatemedia.com

Clockwork Home Services Acquired

Clockwork Home Services, whose brands include One Hour Air Conditioning & Heating, Benjamin Franklin Plumbing, and Mister Sparky, has been acquired by Direct Energy Services for $183 million. According to reports, Clockwork is seeking to increase access to capital for continued growth, and Direct Energy will gain entrée to Clockwork's U.S. residential and commercial customer base. The combined organization, with revenues of almost $4 billion, will operate in almost every U.S. state and Canadian province and be North America's largest provider of heating and cooling, plumbing, and electrical services, according to company officials. Clockwork was founded in the late 1990s by President and CEO Jim Abrams, who will continue as CEO from the company's Sarasota, Fla., headquarters. Toronto-based Direct Energy is a subsidiary of London-based Centrica PLC. The deal is expected to be completed this fall, pending approval by regulators and Clockwork shareholders.

Red Mango Enters Atlanta

Red Mango has signed a development agreement to open its first locations in Atlanta. Ramzanali M. Karimi, along with his two sons, Murad and Malik, has signed a five-store development agreement. Their first store will open this fall in Dunwoody with additional locations planned for the Emory, Alpharetta, Johns Creek, and Buckhead areas. The Dunwoody location will be a self-serve store offering 12 yogurt flavors. The senior Karimi is a founder and director with the Georgia Primary Bank in Buckhead. Red Mango opened its first store in Los Angeles in July 2007 and has grown to more than 70 locations across 14 states.

Bruegger's Now Baking in Louisville

Husband-and-wife team Scott and Kim Berger signed a development agreement to open three Bruegger's units in the Louisville area, the first scheduled for later this year. The bakeries will be the first in the Kentucky market outside of the Cincinnati-Northern Kentucky Airport. The new franchisees, longtime business owners in Louisville, own and run a local company, Laser Design & Engraving. "Kim and I were attracted to Bruegger's because of its commitment and involvement in local communities and its healthy breakfast and lunch options," said Scott Berger. Burlington, Vt.-based Bruegger's Enterprises, an affiliate of Sun Capital Partners, has 297 locations in 26 states, Washington, D.C., and Toronto.

Counter Custom Built Burgers Inks AD in Houston

The Counter Custom Built Burgers has signed an area development agreement with NextGen Ventures LLC for five locations in Houston. The first will be located in the city's Heights community, with an opening scheduled for mid-August. NextGen principals Malik, Shahnaz, and Aisha Waliany have more than 25 years' experience as multi-unit operators and developers in Houston. They previously operated Popeye's Louisiana Kitchen restaurants and currently operate several Arby's in Houston. The build-your-own-burger concept recently opened franchise units in California in Hollywood and Carlsbad, with another set to open in Torrance. Founded in 2003 and based in Culver City, Calif., the brand has 24 U.S. and 2 international locations.

Grease Monkey Opens New Unit

Grease Monkey's grand opening of a new unit in Canonsburg, Pa., last month included $10 off an oil change, 50 percent off tire rotations, prize drawings, hot dogs, and a live remote from local radio station WJPA-FM. The franchisees are Jim and Heather Holtschlag. Grease Monkey International, founded in 1978, has more than 250 centers operating in the U.S., Mexico, and China.

Taco Bell Returns to U.K.

Taco Bell is re-entering the U.K. with plans to open its first unit in the country since 1986, at Lakeside Shopping Centre in Essex. Taco Bell first opened in the U.K. in the 1980s, and shut its last units there in the mid-1990s. The brand has about 5,600 units in the U.S. and more than 250 outside the country. The chain is owned by Yum! Brands, which also owns KFC, Pizza Hut and Long John Silver's.

Fitness Together To Add 30 in Illinois

With 14 fitness studios already open in Illinois, Fitness Together plans to open 30 more in Greater Chicago and around the state, with a dozen targeted for the second half of 2010. The one-on-one personal training fitness franchisor, which began in 1983 and started franchising in 1996, had 357 units open at mid-year.

Jamba Juice Signs Deal for 200 Units in S. Korea

Jamba Inc. has signed a master development agreement with Paris Croissant to develop 200 Jamba Juice locations in South Korea over the next 10 years. The first is scheduled to open this year. Paris Croissant is an affiliate of the SPC Group, a specialty food company founded in 1945 that has more than 4,500 retail locations across several brands in South Korea. "We made a strategic decision to focus on brands recognized for healthier menu options and Jamba Juice was a perfect fit," said Young-In Hur, SPC's president and CEO. Jamba also expects to add up to 50 new domestic franchise locations this year. Founded in 1990, Jamba Juice has 745 locations, 458 company-owned and operated and 287 franchised.

Villa Enterprises Adds Two New Brands

Multi-concept franchisor Villa Enterprises Management has added two new fast casual restaurant brands -- Mo' Burger and Far East -- to its QSR portfolio. Mo' Burger is a fusion of the classic All-American hamburger joint and a nostalgic stainless-steel Jersey diner. Far East is a culinary cross-section of Pan-Asian cuisine. The first location for the new concepts is the food court at the Sands Casino Resort in Bethlehem, Pa. Since last November, when Villa Enterprises assumed management and operation of the food court, the franchisor has been transitioning the space to its own fast casual brands and plans to add its five other brands: Villa Fresh Italian Kitchen, Green Leaf's, Bananas, Casa Java, and South Philly Steaks & Fries. Founded in 1964, the company has 322 QSR locations across 38 U.S. states and 6 countries.

Tully's Coffee Looking for Singles

TC Global Inc. (dba Tully's Coffee) has expanded its franchise program to include single-unit franchisees. The new model will initially focus on finding owner-operators in Western Washington state. "By allowing single-unit operators, we are able to demonstrate our commitment to fostering small business growth by expanding more quickly with local partners who share our passion," said Carl Pennington, president and CEO of TC Global. Tully's coffees are available at more than 600 branded retail locations globally, including more than 200 in the U.S.

Figaro's Italian Pizza Opens in Cyprus

Figaro's Italian Pizza has opened its first restaurant on the island nation of Cyprus. The standard menu will be augmented by new pizzas that highlight Cypriot flavors and ingredients. Located in Latsia, a suburb of Nicosia, the unit is owned by master franchisees Stavros and Despina Erotokritou. Stavros is an experienced master franchisor who has built 10 Computer International locations in Cyprus since 2000. He envisions up to 15 Figaro's on the island. This is the seventh Figaro's outside the U.S. Others operate in Dubai, Abu Dhabi, and Sharjah in the United Arab Emirates. Founded in 1981 and based in Salem, Ore, Figaro's has nearly 90 locations and expects to open 5 to 10 new units per year over the next several years.

DQ to Saudi Arabia

Dairy Queen has signed an agreement with franchisee Al Safwa Food Group to open multiple locations in Saudi Arabia. The first is scheduled to open in Riyadh next spring, with a projected total of 32 locations by 2015. This is the 17th country outside the U.S. and Canada for the brand, which already has Middle Eastern locations in Bahrain, Oman, Qatar, and the United Arab Emirates. "The international marketplace has become a major area of expansion for the Dairy Queen brand," said John Gainor, president and CEO of International Dairy Queen. Riyadh-based Al Safwa Food Group, managed by Ihsan Dalati, is a new retail holding group whose members previously were involved in the casual dining segment in Saudi Arabia. Based in Minneapolis and with more than 5,700 stores worldwide, International Dairy Queen is part of Warren Buffett's Berkshire Hathaway company.

Sarku Japan Signs for 20 in Colombia

Sarku Japan has signed a master license agreement with the Frisby Corp. to open 20 Sarku Japan restaurants in Colombia over the next 10 years. The franchisor, which forecasts 1,000 new units to open worldwide over the next 10 years, recently expanded into Vietnam through a multi-year franchise agreement with Gami Group. Sarku, with locations in food courts in the U.S. for the past 20-plus years, recently introduced Teriyaki and Sushi Express, a new QSR standalone concept. Frisby Corp., founded more than 25 years ago, started Pollos Frisby, which has more than 100 restaurants in Colombia and in Queens, N.Y.

Stratus Building Solutions Signs Miami Master

Julio R. Alvarez has signed on as a master franchisee for Stratus Building Solutions. His company, Stratus Building Solutions of South Florida, will serve building owners and managers throughout Miami-Dade County. This is the company's third master franchise in Florida; the others are in the greater Tampa Bay and Jacksonville regions. Alvarez has more than 23 years of successful international marketing, sales, and senior management experience. Born in Cuba, he moved with his family to Miami in 1969. St. Louis-based Stratus was founded in 2004.

Buffalo Wings & Rings Adds Two New Franchisees

Lithuanian natives Edvin Rajauskas and Val Kirielius opened a new Buffalo Wings & Rings franchise last month in Springdale, Ohio. The restaurant has seating for more than 250, including outside dining and a private party room. In Texas, new franchisees Francisco, Juan, and Luis Guillermo Cordova have signed on to open in Brownsville. The Cordovas, with relatives who own and operate a BWR unit in Mission, Tex., have a strong service industry background and plan to open their first location by year-end or early 2011. The brand, founded in 1984 in Cincinnati and franchising since 1988, has 55 restaurants across the U.S., 8 of them in Texas, where it is seeking further expansion. "Our goal is controlled growth in markets where we have found past successes, and South Texas best embodies that," said Philippe Schram, executive vice president of sales.

Anytime Fitness Continues Global Expansion

Anytime Fitness continues its international expansion with a master franchisee agreement for Japan. The master franchise group, Anytime Fitness Japan, is led by Toru Yamazaki, former CEO of Megalos, the fifth largest health club chain in Japan, and a subsidiary of Japanese corporate giant Nomura Real Estate Group. The consortium expects to open their first Anytime Fitness gym in Japan by September, have 30 operational by 2012, and more than 300 within 10 years. The news comes shortly after the chain announced plans to open clubs in the U.K. and Ireland. Recent overseas deals, combined with 300 new club openings in the U.S. in each of the past two years, puts the brand on pace to open its 2,000th club by the end of 2011. Founded in 2002 and based in Hastings, Minn., the brand has nearly 1 million members, 1,250 gyms across all 50 states, and more than 100 clubs open in Canada, Australia, New Zealand, Mexico, and India.

The Greene Turtle Is On the Move

In what the company calls "a breakout year for expansion," The Greene Turtle added three new locations in June, its biggest growth month in its 34-year history, extending into Delaware and Southern Virginia. Franchisee Leho Poldmae opened in Owings Mills, Md; franchisees Bill and Bob Frankis opened Delaware's first franchised Greene Turtle, in Rehoboth Beach; and franchisees Kristen and Miguel Pagano opened in Chesapeake, Va. Poldmae, who opened a unit in Westminster, Md., in July 2008, also signed to develop three more restaurants in Maryland and Delaware. The Frankis, twin brothers, have operated a Greene Turtle since February 2009 in Aberdeen, Md. The Paganos signed a two-unit agreement. In all, The Greene Turtle has signed commitments for 13 more restaurants along the Eastern Seaboard. "We're on a roll, and we intend to keep rolling into new markets on our way to reaching 150 locations," said CEO J. Michael Sanford. The first Greene Turtle opened in Ocean City, Md., in 1976. The brand now has 25 franchise, corporate, and affiliate restaurants.

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