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The Winner's Column

August 4, 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 eddyg@franchiseupdatemedia.com

Franchise Resale/Refinance Program Debuts

Franchise America Finance (FAF) announced the second in a series of initiatives to restart franchise lending. The new program provides capital for franchisees in about 30 selected brands who are entering the system through a resale, or for existing franchisees looking to refinance debt or who are facing a capital call. "An active and vibrant resale program is healthy for franchisors. It provides positive validation for a viable exit strategy, enhancing the value for prospects entering the system," said FAF principal Ronald Feldman. FAF was founded by the principals of Siegel Financial Group and Gary Blumenthal in 2010 with a focus on two core competencies: franchising and SBA lending, and has formed a strategic alliance with The Bancorp Bank, a national franchise lender and wholly owned subsidiary of The Bancorp, Inc. FAF can provide senior and subordinated debt, mezzanine financing, and place equity for franchisors and franchisees. Contact Ronald Feldman or Nate Greenberg at 610-668-9780.

PostNet's Neighborhood Business Center Shows Results

As PostNet marks its 17th year in business, the company has highlighted the positive results of its shift from a pack-and-ship, postal franchise to a full-service business center. Following its expanded focus on meeting the design, printing, copying, and shipping needs of businesses and consumers through its Neighborhood Business Center theme, PostNet has reported its highest transaction counts on average since April 2009. System-wide sales for February were the best since September 2009 (excluding December). Comparing January 2010 with February 2010, average transaction count per day was up 10.5 percent, and average store sales rose 5.4 percent. Founded in 1993, Denver-based PostNet has more than 850 locations worldwide, including nearly 400 in the U.S., each locally owned and operated.

Fitness Together Marks 6 Months of Growth

Fitness Together has reported six months of consecutive growth in average same-studio sales nationwide for January through June 2010, with sales up across the chain of 337 locations during that period. With 14 locations in Illinois, the brand has targeted the state as its next place to expand with up to 30 more units, 12 set to open by year-end. Based in Highlands Ranch, Colo., Fitness Together started in 1983 and began franchising in 1996.

Resort Maps Reaches 100 Milestone

Resort Maps, which began creating and publishing maps in the U.S. Northeast in 1986, has reached the century mark. Since adopting the franchise model in 1993, the company has grown to 100 maps distributed across 20 states, as well as towns and cities in the United Kingdom, Costa Rica, and Puerto Rico. Nearly 20 million Resort Maps will be printed and distributed in 2010. Resort Maps Franchise is based in Waitsfield, Vt.

Burger House Coming to Lubbock

The Burger House, a Dallas-based hamburger-and-fries brand started in 1951, is opening a new restaurant in Lubbock, Texas. Blake Terry, president of Terry Ventures, has purchased franchise rights in the Lubbock area and plans to open near the Texas Tech campus. Terry, who graduated from Texas Tech in 2008, is now in the process of securing a location. The Lubbock Burger House will be the eighth location for the brand, and the first in West Texas.

ERA Renews Two Top 50 Franchisees

ERA Franchise Systems LLC has signed renewals with two of its top 50 franchisees, ERA Kepple Keene Realtors and ERA Moffett Realty. ERA Kepple Keene Realtors, with 44 agents in Louisville, Ky., has been an ERA company since 1979. ERA Moffett Realty, with 37 agents in Lake Charles, La., has been serving the southwestern area of the state since 2000. The ERA network includes approximately 28,000 brokers and sales associates and 2,700 offices throughout the U.S. and 45 other countries and territories. Each office is independently owned and operated. ERA Franchise Systems is a subsidiary of Realogy Corp., based in Parsippany, N.J.

Buffalo Wings & Rings Opens in Omaha

Husband-and-wife team Todd and Susan Misselt have opened a new Buffalo Wings & Rings in Omaha. The Buffalo Wings & Rings concept was founded in 1984, began franchising in 1988 in Cincinnati, and now operates more than 50 restaurants across the U.S.

Top 26 Franchises for Hispanics

The World Franchising Network (WFN) has released its annual list of the Top 26 Franchises for Hispanics (formerly the Top 25). The list is based on an analysis of several factors, including historical performance, brand identification, franchisee satisfaction, training, ongoing support, and financial stability. Another important factor is the percentage of existing franchises that are Hispanic-owned, as well as the number of Hispanics in the franchisor's top levels of management. The results were published in the July issue of PODER magazine, the successor to Hispanic Enterprise. To see the list, go to http://www.poder360.com/article_detail.php?id_article=4477. The WFN's annual list of the 50 Top Franchises for Minorities, based on a similar analysis, will be published in October.

Dunkin' Signs 8-Unit Midwest Deal

Sack of Donuts LLC has signed to develop eight new Dunkin' Donuts restaurants in South Bend, Ind., and Portage/Kalamazoo, Mich. One restaurant will open in 2011 and the remainder by 2015. Sack of Donuts is led by brothers Mike and Andy Knapick and Dewayne White, former NFL starting defensive end for the Detroit Lions. The local entrepreneurs also own eight Jimmy John's and a Bar Louie operation spread between the South Bend and Kalamazoo markets. Dunkin' is seeking new and existing franchisees to develop restaurants in Milwaukee, Chicago, Atlanta, Tampa, Washington, D.C., and Detroit. Founded in 1950 and based in Canton, Mass., the brand has more than 9,000 restaurants in 30 countries worldwide and reported global system-wide sales of $5.7 billion in 2009.

Taco Bueno Targets Growth

The 43-year-old Tex-Mex QSR chain is expanding its franchise program, opening up areas in the Southern, Midwestern, and Central Southwestern regions. Pete Belcher, vice president of franchising, said the company has targeted Houston, College Station, Memphis, Midland/Odessa, Nashville, Omaha, Shreveport, and Topeka for development. The chain also unveiled a series of new restaurant designs, a fast-casual atmosphere with Southwestern design elements, as well as a new site selection model. The two most recent openings of the latest prototype are in the Tulsa area. Founded in 1967 in Abilene, Texas, Taco Bueno has nearly 190 locations in Arkansas, Kansas, Kentucky, Louisiana, Missouri, Nebraska, New Mexico, Oklahoma, and Texas.

Accor North America Opens 34

Accor North America opened 34 Motel 6 and Studio 6 franchise locations in the first half of 2010. The latest include 32 Motel 6 locations and two Studio 6 properties, with a room count of 2,874. "We opened our 400th franchise this year, following three years of consecutive, record-breaking growth for Motel 6/Studio 6," said Olivier Poirot, CEO for Accor North America, Motel 6, and Studio 6. The 2010 additions cover 15 U.S. states and include 10 locations that previously were Motel 6 corporate-owned properties. Headquartered in Carrollton, Texas, Accor North America operates more than 1,000 upscale and economy properties (40 percent franchised), including economy brands Motel 6, Studio 6, and Ibis, Sofitel Luxury Hotels and upscale Novotel locations in the U.S., Canada, and Mexico. Parent company Accor is present in 90 countries with 4,100 hotels and close to 500,000 rooms.

Two New Paisano's for Virginia

Pizza-delivery chain Paisano's is continuing its Washington, D.C.- area growth with two new locations, in Burke and Springfield, Va. The franchisees for both are husband-and-wife team Hatem Rizkalla and Nashwa Kawkab. Other Paisano's outlets include Herndon, Reston, Chantilly, Fair Lakes, Fairfax City, and Bella Pizza of Centreville, Va. Based in Centreville, Paisano's has been operating in Northern Virginia since 1997.

Brilliant Sky Toys & Books Opens in Austin

Brilliant Sky Toys & Books has opened its second franchised location in Texas in the Village at Westlake shopping center. The 3,125-square-foot store is owned by Matt and Maya Pomroy, Austin residents and parents of a young daughter. Founded by Brent and Sonia Taylor in 2002, the brand provides interactive, educational, and developmentally sound environments for children and families. The brand has 8 locations and plans for 22 more openings over the next few years.

Wholesome Tummies

Wholesome Tummies, an Orlando, Fla.-based company created by two young mothers to provide healthy meal options for school children, has awarded its second franchise. The franchisees, Bradley and Carrie Farnsworth, parents of two small children, are expected to begin operations in October and will serve both Clay and St. Johns counties, as well as Duval County until a new franchise is opened in that region. Founded three years ago, the company provides an estimated 5,000 meals each month to 22 schools in Central Florida. Co-founders Samantha Gotlib and Debbie Blacher launched the franchise option this year and awarded their first franchise earlier this year in St. Petersburg.

Grade Results Begins Franchising

Grade Results, an online instructional company based in Carrolton, Texas, has begun to franchise nationally as it rolls out a nationwide expansion. The company now serves elementary through college students in Texas, Illinois, New Jersey, and Louisiana. The brand's technology platform provides interactive tools for students to engage with the company's state-aligned curriculum, or to receive one-to-one live instruction from teachers with advanced degrees. The curriculum includes basic skills, such as reading and math, courses for gifted and talented students, and college entry exam prep modules. Target customers include K-12 school districts, charter schools, community colleges, and universities.

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