FranchiseOpportunities

Leading franchising experts report that franchises of all kinds have continued to sell very well in the early stages of 2010. Americans are still leery of any economic recovery. As a result, those who can afford to go into business for themselves are doing so in the safest way possible.

Purchasing a franchise may limit growth more than independent business, but it also allows for greater success due to instant brand recognition. “We are seeing a steady increase in numbers of visitors to our web portal and a corresponding increase in the number of enquiries which we are sending to franchisors,” Michael Burdett, an industry consultant, said. “With the improving economy and sophisticated tools for matching franchise opportunities with entrepreneurs, there has never been a better time to buy a franchise,” he continued.

Choosing a franchise over an independent business often means lower advertising and operations budgets because the parent company offers its expertise and resources to all franchisees. According to Toolkit.com, a business advisory website, franchises are more likely to succeed than independent small businesses. While a portion of profits will go to fees, franchising also requires less business experience.

Following the trends of other nationally recognized food franchises, Quiznos announced recently that it will open several locations inside convenience stores throughout the United States, according to the Wall Street Journal. The WSJ reports that since 2007, restaurant visits by Americans have fallen while trips to convenience stores rose by 1 percent annually.

Quiznos already has 4,000 locations in the United States, but the company believes that developing a presence within American convenience stores will grow its brand and increase business. “A lot of people are working two jobs in this economy and are busier and busier, and convenience is becoming more and more important,” says Quiznos chief executive Rick Schaden.

Quiznos franchisees pay an annual fee of 7 percent of their sales to the company and an additional 4 percent to the corporate officers for general brand marketing purposes. In February, the WSJ reported that Quiznos has received praise in recent months for its commitment to eliminating paper waste at its restaurants. Salads at the restaurant will be served in bowls made from sugar cane, while napkins will be made from 100-percent recycled materials.

Smashburger, a Denver, Colorado-based burger chain, announced recently that it will open locations in Boulder, Colorado and San Diego, California. The openings are part of an aggressive franchising plan from the restaurant that includes opening 500 new stores in the next five years. Between 100 and 125 restaurants will open in the U.S. by the end of 2010. Smashburger’s menu features certain common items, however the chain prides itself on customizing its menu to its specific locations.

At the Boulder, Colorado location, Smashburger plans to offer something to the large vegetarian population at nearby University of Colorado, Boulder with the Black Bean Smashburger. At its San Diego location, the San Diego Smashburger will add avocado and cilantro to the traditional Smashburger.

“As a Denver-based company, we are excited to spread our burger magic across the state and into Boulder,” says Smashburger Founder Tom Ryan. “Smashburger is what San Diego burger lovers have been waiting for,” Ryan continued. “We are excited to bring the La Jolla community our better burgers.’”

The company announced more expansion into California in February when it planned the opening of five Sacramento-area locations.

NakedPizza, a healthy alternative to traditional pizza chains, announced earlier this week that is has several new multi-franchise agreements in New York, Florida and Arkansas, according to PizzaMarketplace.com.

The chain started with a single 500-square-foot shop in New Orleans during the city’s recovery effort from Hurricane Katrina. It capitalize formed the North American Franchising company in September 2009. In January 2010, it announced its first franchise agreement.

The company’s founders are happy to be taking advantage of unhealthy food’s success, while offering healthy product at the same time.

“Fast food is the arguably the most successful commercial enterprise in the world in terms of marketing, product, distribution, and economies of scale. Our healthier pizza is riding in on that Trojan horse,” co-founder Jeff Leach said.

Naked Pizza made news in Massachusetts as well recently when New England Patriots owner Robert Kraft announced he planned to back the company in its expansion plans in Massachusetts. Dan Kraft, executive vice president of the Kraft Group, believes an agreement with a franchisee will be reached shortly and expects the first New England to open by the end of 2010, according to the Patriot Ledger.

Elements Theraputic Massage, a Highlands Ranch, Colorado-based massage and beauty franchise, recently announced a plan to open 12 franchises in Massachusetts in 2010. Elements currently operates 11 locations in the state and is the largest employer of massage therapists in the state.

Elements’ plan comes after the company named Massachusetts its best performing market. To aid the development of the brand in the state, Elements will host an event where prospective franchisees can learn about the company in Newton, Massachusetts, on April 7 at the Mariott. Elements is especially interested in pursuing multi-franchise deals with experienced franchisees.

“The true benefits of massage therapy are breaking old stereotypes of our industry as an expensive splurge, and Elements is leading the way,” Kyle Gjersee, CEO and senior vice president of Elements, said. “We see a real opportunity to invite others into our system who want to own their own business and be part of the growing $9 billion massage therapy industry by joining a national leader.”

In 2009, Elements was named the 78th-fastest-growing franchise in the United States by Entrepreneur Magazine.

Twenty-nine coffee shops located in rest stops in the United Kingdom will soon be rebranded to Starbucks outfits over the next 16 months, the coffee company announced recently. Welcome Break, one of the UK’s largest rest stop operators, formerly housed Coffee Primo shops.

Starbucks currently operates more than 600 locations in the UK, but had no stores within motorways prior to announcing the deal with Welcome Break.

“As the largest purchaser of fair trade coffee in the world, nowhere is the consumer impact more relevant than in the UK,” Starbucks CEO Howard Schultz said in January as part of a reaction to fourth quarter 2009 earnings. “While we are off to a good start in reenergizing our UK business, we have much more work to do outside the U.S. and the leadership team and I have identified a number of areas for improvement in our international market and global consumer products business.”

Starbucks has expanded rapidly in recent months in various ways. The Seattle-based coffee company announced in early February that its subsidiary, Seattle’s Best, will begin being served in Burger King restaurants throughout the U.S. as the burger chain looks to revamp its lagging breakfast sales.

Checkers Drive-In Restaurants announced Thursday the opening of two new restaurants in downtown Atlanta. Within the United States, there are currently more than 8,000 Checkers restaurants, and the company has plans to pursue business opportunities along the East Coast and in Las Vegas in the near future.

One of the new Atlanta locations is the Peachtree Center Mall. The second is in the Farlie-Poplar district of Atlanta, which is one of the city’s most high-traffic business areas. To adequately serve the business community, the restaurant will feature limited seating and cater to walk-in customers.

“This is our ninth Checkers franchise in Atlanta, and we are grateful for the opportunity to serve our loyal guests,” Checkers franchisee Aziz Hashim, owner of the Fairlie-Poplar location, said. “We will continue to invest in our city and enjoy hiring from and becoming a part of the communities in which we operate.”

Entrepreneur magazine named Checkers the 68th-fastest-growing franchise in its 2010 edition of the Franchise 500. Overall Checkers came in at No. 76 on the list of franchises. The company has began reestablishing itself as one of the strongest food franchises in the U.S. after being absent from the rankings in 2007 and 2008.

Jamba Juice, a retailer of healthy food options, announced Thursday the sale of 12 franchises to experienced franchisees in Utah and California.

Daljit and Pam Hundal will refranchise 10 stores in Salt Lake City, Utah, and Michael Razipour and Pouya Moalej will do the same for two stores in Southern California. The Hundals’ franchising deal includes a commitment to expand the presence of the Jamba Juice brand.

Razipour operates five franchises for other companies and said that he was encouraged to take part in Jamba’ refranchising initiative due to its commitment to healthier foods and its forward-thinking business model.

“We purposely structured our refranchise packages to enable prospective franchise operators to qualify for small business loans through the SBA program,” Thibault de Chatellus, senior vice president of global franchise and development for Jamba Juice, said. “That strategy, along with the continued progress against our BLEND plan growth initiatives that are transforming the company, is paying off.”

The company also recently announced a program that offers the company’s healthy smoothies to schools at a reduced price to improve the overall health of children. The program actively encourages a healthy and active lifestyle.

Citing an increased need for pest control due to weather conditions and a strong sales performance in 2009, Rollins, a national consumer services company, has announced the first Orkin franchise in Ireland.

Orkin, founded in 1901, is an Atlanta-based provider of essential pest control services with more than 400 franchises operating in the United States and Canada.

Donal Buttely, a prominent Irish businessman, is the franchise owner and plans to begin operation in Dublin sometime in March. He is currently completing his training at the Orkin headquarters in Atlanta.

“Because of Ireland’s temperate climate and large amount of rainfall, the country has pest issues that include rodents and a number of insects,” said Tom Luczynski, Orkin vice president of international development and franchising. “We are pleased to establish a presence in Ireland and provide the country with quality pest control services to help with these pest issues.”

Rollins owns and operates several pest control chains in the U.S. and Canada and actively pursues new franchisees for new business opportunities. The company reported a 5.2 percent revenue increase for 2009 after a strong fourth quarter saw sales rise 4.6 percent over the third quarter of 2009.

A pair of Subway franchisees based in Houston, Texas, announced on Monday that they have sealed a franchising deal for 14 additional branches in upstate New York. Bharat and Renu Aggarwal now own 37 Subway locations in the United States, according to Quick Service Restaurant Magazine.

The Subway corporate office also announced recently that they will begin serving beer and wine at its Grand Junction Regional Airport location in Grand Junction, Colorado, according to the Associated Press. The location is currently under construction but expects to open later this year.

Subway does not allow alcohol sales at normal locations. The liquor license, in this case, belongs to the airport. Kevin Kane, a company spokesman, does not know the exact number of branches that serve alcohol. He did comment that those stores are located in stadiums or airports.

Subway also announced it has expanded its presence in Western Colorado when it opened its doors to another shop Monday afternoon. There are now 15 Subway locations in the area, according to the Grand Junction Sentinel.

Entrepreneur Magazine listed Subway as its No. 1 overall franchise earlier this month in the 2009 edition of the Franchise 500.