RetroFacts

Help DECA Score $250,000.00

2010-04-16T10:03:00.012-04:00

Just about everyone who knows me, knows of my passion and commitment to an organization called DECA. DECA inspires and educates young entrepreneurs all over the world, leading many of them to careers in franchising. Currently, DECA is competing for a $250,000 Pepsi Refresh Grant, www.refresheverything.com/decainspires.
Voting started on April 1st and runs through April 30. Grants are determined by popular vote, so PLEASE Vote DECA Every Day! – and encourage your friends, family and colleagues to do the same.

What this grant would do for DECA includes the following:
•Support DECA’s Competitive Events Program and their Intl. Business Plan Event.
•Expand DECA’s professional development opportunities for Advisors.
•Build new DECA Chapters and deliver services to greater numbers of members and advisors.

To vote for DECA’s Pepsi Refresh Project go to, www.refresheverything.com/decainspires. You’ll need to register through the Pepsi Refresh site to cast your vote. At the bottom, left hand corner of the page click “Sign In” and follow the prompts - you can either create an account through the Pepsi Refresh site or login through your Facebook account. Once you’re in, click on “Vote for this idea.” You can vote for DECA’s Pepsi Refresh Project one time every day.

Because this is a viral campaign please help to spread the word -
•Post a comment on DECA’s Project page after voting.
•Post your vote on the status page of your Facebook, MySpace, Twitter, LinkedIn and/or other social media pages – click “Promote this idea” from the www.refresheverything.com/decainspires page.
•Create a Widget for your web site – click on “Widgets” from the www.refresheverything.com/decainspires page.
•Encourage your friends, family, classmates, students, colleagues, neighbors.... to Vote DECA Every Day! - and spread the word through their networks.

Voting, and commenting, DECA Every Day! is also a great FREE way to put your brand in front of DECA’s most enthusiastic high school and college members and advisors.

Thanks for your support!

Stan Friedman (on behalf of)
John Fistolera
Director of Development, DECA
1908 Association Drive . Reston . VA . 20191 . 703/860-5000 phone . 703/860-4013 fax

COMING SOON! RetroFacts will be undergoing a complete redesign, with a whole new look and feel. Stay tuned...

ATLFA Networking Event

2010-02-17T18:23:00.004-05:00

Atlanta Franchise Alliance Networking Event Wednesday February 24th

Mark Your Calendars: Wednesday, February 24th at Buckhead Bar and Grill

Time: 5:30 p.m. - Whenever?

Beginning Wednesday 2/24/10, the ATLFA will meet every fourth Wednesday evening at the Buckhead Bar and Grill. Very casual setting – centrally located – a great place to meet Atlanta franchise industry executives for drinks, food, and networking!

If you are in Atlanta, come out and join the ATLFA for a great night of networking!

ADDRESS:
3167 Peachtree Road Northeast
Atlanta, GA 30305-1812
(404) 848-9985
Website: http://thebuckheadbarandgrill.com/

Taking Stock of the U.S. Chamber

2009-12-21T11:21:00.019-05:00

As the holidays rapidly approach and I start looking ahead to the New Year, something that I am really excited about is my new found relationship with the United States Chamber of Commerce. Last May, I was invited to attend their 2009 Business Civic Leadership Center’s (BCLC) Annual Conference in Chicago. That’s where I witnessed firsthand, what can happen, when dedicated and committed professionals from the public and private sectors come together and work as one. While the wheels were spinning off the bus on the U.S. and world economy, the BCLC was already rolling out a program called “Together for Recovery.” Its focus was helping businesses, individuals and communities do more than just survive, but actually fight back and prosper, as opposed to becoming victims of their circumstances. Since attending this event, I have been drinking U.S. Chamber and BCLC Kool-Aid by the case.

The conference moves to Houston, TX for 2010 and I am honored to have been asked to be a member of the Working Group that is planning it. This National Conference on Corporate Community Investment is a “must attend” for leaders of their communities: business leaders, chamber executives, bankers, investors, elected officials, non-profits, educators. Any stakeholder in a leadership role in his or her community should plan to be in Houston, May 12-14, 2010. This year’s theme will be: PROVIDE and PROSPER: Corporate Citizenship and Competiveness in the 21st Century.

As unprecedented challenges and opportunities continue to reshape how our businesses compete and our communities live, The Chamber, the BCLC and its members continue to pioneer innovative, sustainable solutions to these real-world challenges. At the 2010 BCLC National Conference on Corporate Community Investment, you'll meet and interact with the nation's top corporate, government and non-profit thought leaders as they address solutions to America's most vexing competitive challenges: “Energy and the Environment,” “Health and Wellness,” and the one that’s nearest and dearest to my heart, “Job Creation.”

Before I close, I’d like to sincerely thank Stephen Jordan and Katie Loovis at the BCLC and U.S. Chamber, for so generously featuring RetroTax and me in their year-end report and video, Together for Recovery: “Business is Part of the Solution.” This is a compilation of stories about how the business community is helping individuals, non profits, communities, and small businesses weather the ongoing economic storm.

Link to report: http://www.uschamber.com/bclc/together_retrotax.htm

Link to video: http://www.youtube.com/civicleadership#p/u/0/ANliWoKks50

Finally, let me wish you all a very Merry Christmas, or your appropriately “PC” Happy Holiday Greeting of choice.

Let's Hear it for the House

2009-12-14T10:23:00.006-05:00

While Congress remains polarized regarding health care, last week the House managed to pass HR 4213, the Tax Extenders Act of 2009. This will extend the life of certain expiring tax provisions that were set to sunset on 12/31/09. Included in this bill are the EZ/RC credits that are our life’s blood. This bill now passes from the House Ways and Means Committee, to the Senate Finance Committee for further disposition. In plain English, that means “business as usual” for RetroTax. The Senate Finance Committee will now have until 12/31/10 take this up and get it to the full Senate for a vote, keeping the credits and incentives that we administer alive, until the Way and Means Committee gets around to the business of HR 1677 and the Senate to S1222. When passed, these bills will expand the value proposition of the services that we provide for our clients and extend the legislation to the end of 2016.

Atlanta Business Radio Franchising Special

2009-12-03T14:07:00.059-05:00

I'd like to express my thanks and appreciation to Amy Otto and Lee Kantor, hosts of Atlanta B usi ness Radio, for inviting Jim Squire and me, to co-host a one hour broadcast, dedicated completely to franchising. These invitations were extended to us, because Jim and I each chair one of Atlanta's two franchise membership forums. Jim, The Southeast Franchise Forum and yours truly, The Atlanta Franchise Alliance. The two of us then, invited an outstanding line up of guests, to talk about the state of franchising in this challenging economic and political climate. We were joined first by David French, VP of Government Relations at the International Franchise Association, followed by Geoff Seiber, CEO of FranFund, Ron Feldman, CEO of Siegel Financial Group (and RetroTax franchisee) and Michelle Belinfante of The Leasing and Management Group.

The link that follows, will take you to more about the program and to yet another link, that will

enable you to stream the program's audio. http://atlantabusinessradio.libsyn.com/

To all of those that I will not see or speak with in the next few weeks, I wish you and your families a very safe and Happy Holiday season.

No Need to Break the Bank

2009-10-26T11:46:00.012-04:00

While recent and ongoing economic concerns have forced many businesses into a state of retreat, with regard to hiring and employee retention, there can be a brighter side to these issues and concerns, especially in times like these. An often overlooked opportunity to offset these concerns can be found in the identification and administration of wage based tax credits costs. Surprisingly, many companies look past these opportunities, or fail to maximize on their full potential. In many case, the administrative burden required to claim these credits is why they are left unclaimed.

Many don’t realize either, that many of these tax credit programs are both for the current year, as well as for years retroactive. C corporations redeem these credits corporately, while they pass through to principal owners of S-corps, LLCs, partnerships et al, as dollar for dollar credits against personal tax liabilities. In any case, it’s usually nothing more than a lack of knowledge that prevents many business owners from redeeming what could otherwise be a windfall for their businesses.

In the current economic environment, anyone with a fiduciary responsibility should do whatever possible, to help enhance bottom line opportunities for their companies and shareholders. Finding incremental opportunities to enhance the bottom line and operating as soundly as possible is not a luxury in today’s economic environment – it’s a necessity. The amount of money that these credits could potentially represent is significant and substantial.

What tax credits are available?
From the Federal Empowerment Zone Wage Tax Credit Program, to Renewal Community Initiative, and the Work Opportunity Tax Credits, the options are many. While the suggestion of tens if not hundreds of thousands of dollars, or more, sitting unclaimed, may sound too good to be true, it is nonetheless, entirely possible. In fact, it is safe to say that 10-15 percent of all of W2s generated in a given year could be worth on average, $1,500 per employee (depending on the tax credit program) per year.

The Federal Empowerment Zone (FEZ) Wage Tax Credit Program is an incentive program created to revitalize the economies of select communities across the country. These zones are located in many of America's biggest cities. Specifically, the FEZ program provides employers with a federal income tax credit of up to $3,000 per qualifying employee per year and offers three years of retroactivity.

Because of geographic constraints, the FEZ credits will not apply in all cases. Another credit opportunity is the Renewal Community Initiative (RC), which mirrors the FEZ credit in terms of rules and retroactivity. The significant difference between them is that the RC credit provides a federal income tax credit equal to $1,500 per qualified employee, per year, but the qualifying geographic areas are usually much larger. In all other ways, the RC credit program is basically the same.

The Work Opportunity Tax Credit (WOTC) program is a program that provides businesses with a federal income tax credit that can be as high as $9,000 per eligible employee. Unlike the FEZ or RC program, this program has no geographic restrictions or boundaries. Also unlike the FEZ or RC program, it only allows a one-time credit for new hires, on a go-forward basis. There is no opportunity for retroactivity with WOTC. These credits are available if your new hires fall into any one of nine different categories, including qualified veterans or disconnected youth.

Identification and administration of these programs is not a simple process. It takes time and the procedures are onerous, which is why so few undertake this task without the help and assistance of professionals.

When to begin capitalizing on these tax credit and incentive programs?
Right now! All tax credit programs have deadlines. Retroactive tax credit programs allow you to capture credits in the open tax year as well as from the 3 prior years. For example, once you close the books on 2009, you will no longer be able to claim credits from 2006.

How are these credits generated?
Eligibility for redemption of these credits is determined through client qualification interviews, including discussions with client’s internal and outside tax counsel, regarding the implications of these potential tax credits. This enables and empowers the tax preparer to optimize the value of these federal or state income tax credits, as part of the client’s overall tax strategy.

Several of these programs provide retroactivity and actually allow the recapture of overlooked credits from past tax years. Excess credits can be carried forward as many as 20 years. Many of these tax credit programs can be combined to increase the value of benefits (i.e. special hurricane related credits, GO Zone, etc.). Once the client’s “appetite” for these credits has been determined, the process of administering, optimizing and delivering value from each of these programs begins.

Historically, the majority of our client business is generated directly, or through alliance partnerships with professional service firms. Many of these relationships are at the local and regional levels, but a growing number are national alliances, with companies like Ceridian, Ryan and RSM McGladrey.

PUTTING ALL OF THE PIECES TOGETHER
ACI/RetroTax® is a full service tax credit administrator of federal and state tax incentive programs. We specialize in identifying both demographic and geographic federal and state tax credits. During our 12 year history, we have produced significant financial gain for our 1,500+ nationwide clients, by administering millions of dollars in wage-based tax credits annually.

We provide tax credit administration services for clients of all sizes, small entrepreneurs to Fortune 500 companies. In addition, we serve as “behind-the-scenes” tax credit administrators for large accounting firms, payroll companies, and professional employment organizations (PEOs).

RetroTax Procedures
· We work with your CPA to determine the ability for your business or shareholders to utilize credits.
· We research and analyze all information to identify eligible sites and employees.
· We provide reference maps showing the locations of qualified sites and employees within a federally designated Empowerment Zone or Renewal Community. (FEZ/RC)
· We communicate with state Labor Departments, to obtain certifications of eligibility for all eligible employees that qualify for demographic credits. (WOTC).
· We work with your internal and external Finance/HR teams to implement, manage and maximize the redemption of credits from all qualifying programs.
· We keep you abreast of all pending, current and upcoming program legislation.
· Our fees are 100% contingent upon performance.
· Absolutely no set-up fees
· Absolutely no hidden fees
· No credits…no fees

“We do the Work… You take the Credit”

Dwyer-Ownes Testimony Showcases Value to Tax Credits

2009-10-05T17:36:00.007-04:00

Kudos to International Franchise Association (IFA) Chairwoman Dina Dwyer-Owens, for her testimony before the United States House of Representatives Committee on Small Business, on Wednesday, September 30, 2009.

As part of her testimony, Dina addressed the importance of extending two categories of the WOTC tax credit program, born out of the Stimulus Bill, until such time as the national unemployment rate subsides. The following relevant excerpt from Dina’s testimony, would certainly favor our business at RetroTax.

“The American Reinvestment and Recovery Act also provided important tax relief to small businesses through the Work Opportunity Tax Credit and capital gains tax relief for businesses organized as S Corporations. The Work Opportunity Tax Credit assists franchise businesses in hiring unemployed veterans or youth who are not in school or already employed. This tax credit should be extended until our national unemployment rate returns to pre-recession levels. Additionally, I believe Congress can do more to assist our returning military veterans with the transition to civilian life, which I will mention in a moment.”

You may read Dina’s testimony in its entirety, at the IFA’s website. You may link to it directly, below.

www.franchise.org/capitalaccess.aspx

Public Affairs Conference Success – On To Franchise Update TODAY

2009-09-23T13:13:00.005-04:00

The IFA Public Affairs Conference was high energy and positively charged. IFA’s Conference and Government Affairs team was on top of their game and did a stellar job in keeping the program on track and the speakers relevant. George Will as a repeat speaker worked well for me as well. He was every bit as good this year as we was last. Just as he does weekly on ABC’s This Week with George Stephanopoulos, he breaks down all of the political double speak, to the simplest of common denominators.

More than 400 IFA loyalists attacked the Hill to lobby their members of Congress for the myriad of issues that are important to IFA and its members, predominantly:
· Capital Access
· Card Check
· Health Care

As for me, I broke ranks and instead of joining the rest of the Georgia gang to visit our Peach State elected officials, I spent my time seeking out those Members of Congress and staff that can make the greatest difference with reference to the passage of another issue that IFA has signed on to, one that is near and dear to all of us at RetroTax. I am referring to HR 1677, HR 3500 and S 1222, three bills that are focused upon the extension and expansion of the legislation governing the Federal Empowerment Zones and Renewal Communities and tax credits available to businesses that send resident employees to work in those zones. My time on the Hill was very productive and I am confident that we will prevail in the extension of these benefits.

And, I think other IFA member’s time was productive, too, as there were easily 450 in attendance, a true reflection of the times and how important our collective voices are on the Hill, in these challenging times.

This week, the franchising fun continues, as I will be Networking, networking, networking at the Franchise Update Leadership Conference in Chicago – STARTING TODAY.

I am looking forward to robust conversations with franchisors that can benefit from RetroTax services, to learning as much as possible from my peers and as always, to giving back as much as I can, to those that can benefit from hearing from me. I’m really looking forward to participating in the “pre-conference, CEO Summit again this year. As was the case last year, it is facilitated by the very able Linda Burzynski and is a mindshare session for CEOs and Presidents only. This interactive program is all about "Exceeding Today's Stress Tests for Franchise Growth". How to continue to grow franchise units, where to get the right capital, what your org. chart should look like, how to craft salary and incentive programs and issues like that.

As for the panel that I am speaking on this year, our topic is: Lead Generation Track -- Where Can I Find More Qualified Prospects in this Economy? I join the very capable Paul Mangiamele, President/CEO, Salsarita's Fresh Cantina and Kevin Drudge, Vice President of Franchise Development at Valpak for this session.

Information shared at events like the IFA Public Affairs Conference and Franchise Update’s conference in Chicago this week are validating my belief that the recession has hit bottom, but that there will be a long slog to recovery. It could take years to get there, but barring any unforeseen events, I don’t think that things are geared to get any worse than that which we have already experienced.

If you are at Update – be sure to connect with me (best way if you want to schedule a meeting is by emailing me at stan.friedman@retrotax.com). Can’t wait to see all of you!

RetroTax Featured on Fox Business Live in New York

2009-09-11T08:59:00.000-04:00

IFA’s Public Affairs Conference a Must – as is Tonight’s ATLFA

2009-09-09T10:00:00.003-04:00

We all know how every move we make is critically important during these trying economic times. Equally important, is absorbing as much information as possible, to support our moves. This week's blog post serves as a friendly reminder that Ron Feldman, CEO of Siegel Financial Group, (and RetroTax franchisee) is in town and will be discussing financing in franchising at tonight’s Atlanta Franchise Alliance networking event, just ahead of next week's big IFA conference, September 14-15 in DC. Both of these are MUST attend events for everyone in franchising!

ATLANTA FRANCHISE ALLIANCE
TONIGHT (9.9.9) from 5:30 – 7:30
The Ravinia Club
2 Ravinia Drive
Atlanta, GA 30346

An evening with Ron Feldman, CEO of Siegel Financial Group discussing the state of financing in franchising.

IFA’S PUBLIC AFFAIRS CONFERENCE
September 14-15, 2009
JW Marriott Hotel
Washington, DC

IFA’s Public Affairs Conference is the franchise industry’s most important advocacy event.
Formerly known as Franchise Appreciation Day, re-branded Public Affairs Conference, is your chance to discuss with members of Congress how franchising is being impacted by their decisions. During the conference, IFA schedules meeting on Capitol Hill to discuss:
Economic Stimulus Programs
Health Care Reform
Card Check Legislation
Finance/lending reform
Tax Policy

This year’s keynote speaker is George F. Will, America’s foremost political commentator and columnist.

There is no registration fee to attend either of these programs.

More than 500 franchisors, franchisees and suppliers participated last year to tell franchising’s story. Join the IFA again this year to lobby Congress on the issues that matter in protecting the business climate for franchising.

3 Questions With Steve Romaniello

2009-09-02T17:01:00.008-04:00

Steve Romaniello,
Managing Director of Roark Capital Group

In addition to Managing Director of Roark Capital Group, Steve Romaniello is Chairman of the Board of FOCUS Brands, the franchisor and operator of nearly 2,200 ice cream stores, bakeries, restaurants, and cafés in the United States, the District of Columbia, Puerto Rico, and 32 foreign countries under the brand names Carvel®, Cinnabon®, Schlotzsky’s®, Moe’s Southwest Grill®, and the franchisor of Seattle’s Best Coffee® on military bases and in certain international markets. Focus Brands also sells its famous ice cream cakes in over 10,000 retail outlets through New Britain, CT-based Celebration Foods, Carvel’s manufacturing and distributing division. Romaniello also serves on the Board of Directors of FASTSIGNS Holding Corporation, the International Franchise Association (IFA), the IFA’s Diversity Institute, and the Atlanta Franchise Alliance.

Prior to joining Roark, Romaniello was President and Chief Executive Officer of FOCUS Brands (2002-2008). Steve joined Carvel in January 2002 as President of the franchise and foodservice division, and led the strategic turnaround of Carvel, one of America’s favorite ice cream brands. During his tenure at Focus Brands, Steve led the acquisition of Cinnabon® and Seattle’s Best Coffee® International in 2004, Schlotzsky’s® in 2006, and Moe’s Southwest Grill® in 2007.

Prior to Focus Brands, Romaniello was President and Chief Operating Officer of US Franchise Systems (USFS). Romaniello helped grow USFS from one brand with 27 hotels in nine states to three brands with over 500 hotels in 47 states and 5 countries. Before joining USFS, Romaniello was a Vice President at Holiday Inn Worldwide’s, responsible for franchise sales, services, support, and training for the 1,700 hotels in the U.S., Canada and the Caribbean operating under the Holiday Inn and Crowne Plaza brands. During his tenure, Holiday Inn Worldwide increased its franchise from 60 in 1991 to 300 franchises in 1995. From 1988 to 1991, Steve held various positions with Days Inn of America. Romaniello is a graduate of Tufts University.

Since moving over to Roark as a Managing Member, what have been your primary initiatives?
Since moving to Roark my primary initiatives have been to support certain of our franchise portfolio companies, including Focus Brands, Money Mailer, McAlister’s, and Fast Signs (Roark affiliates also control Primrose Schools and Batteries Plus, two other leading franchisors). I have also helped organize the second annual Roark Franchise Summit which brought together 90 executives from our franchise companies for leadership development training and to work on best practices. Finally, I have been helping the team in finding investment opportunities in the franchise space and evaluating and acquiring brands. Roark has over $900 million to invest and we recently announced an agreement to acquire Pet Valu, a leading Canadian based franchisor of specialty retailers selling pet food and pet products.

When do you foresee an improvement in our economic climate?
I think the economy is at or near the bottom though we expect choppy waters on the way back up. Our best guess is that the improvement will be gradual and recent improvements will likely not accelerate until unemployment bottoms out sometime next year.

As a franchisor in Atlanta, what regions have you seen attract the most franchisors and why?
Atlanta is home to a large number of franchise companies- some of the best brands and franchise leaders in the industry are here. One other notable area is Colorado, specifically Denver. While I am not sure what attracted them to the region initially, I think their presence is more visible because the leadership there is top notch and committed to franchising as an industry.

BONUS: Where is your favorite travel spot and why?
Italy! Do you really have to ask why?

Interested in connecting with Steve Romaniello from Roark Capital Group, (404) 591-5215, http://www.roarkcapital.com/; stever@roarkcapital.com.

Three Questions, interviews conducted by Stan Friedman, President and Co-Founder of RetroTax, appears twice a month exclusively at http://www.retrofacts.blogspot.com/.

Determining Your RIGHT Target Market

2009-08-26T07:26:00.007-04:00

We’re in a very different economic environment today, different than ever before. Beyond that, most experts have said that even after we pull out of this recession, what we used to regard as "business as usual" in normal times, is forever gone.

According to Ron Feldman, CEO at Siegel Financial Group and RetroTax franchisee, one issue affecting the franchise development community is that as a whole, it doesn't fully understand some of the implications of current financial and market situations, relative to the selection process. From the perspective of industry/geographic issues, the food sector in particular, is suffering from a moratorium of sorts, by many lenders. Ron also says that areas that have been hard-hit by residential real estate problems are being looked at negatively by franchise lenders as well. Unfortunately, many of these are also areas that franchisors have targeted for growth and development.

In this economic climate, now more than ever, franchisors must focus on the RIGHT development strategies.At RetroTax, we look for franchisees in markets where there are opportunities for their clients to benefit from both geographic as well as demographic tax credits.

Whatever the product or service offering, franchisors in this new climate should only be developing in markets that provide the very best opportunities for an operator’s success. There is just no longer room to give “iffy” markets a try.

While development strategies may vary from market-to-market, the line must be held on the quality of the candidates being considered. At RetroTax, franchisees can be successful in either urban or rural markets, so long as those markets are zoned for geographic, as well as demographic tax credit opportunities. The franchisee's skill sets though, remain the same, in either circumstance. That said, franchisee selection should be as strict as market selection. We, as franchisors, must set the table and provide our best candidates, with the best market opportunities available, in order to achieve success.

Begin with the end in mind. Know where to grow and who to grow with. Consider nothing short of the best applicants for your brand, properly calibrate and manage expectations, both theirs and yours, so that all are in alignment. While this environment is certainly challenging, opportunities still abound for those who are willing to work hard and smart and make some necessary adjustments.

Save the Date: September 9 in Atlanta

2009-08-19T10:00:00.005-04:00

While we have yet to announce the special location, (be sure to tune in to our LinkedIn Group or our Facebook Page later next week, for details) we have announced the date for the next Atlanta Franchise Alliance networking event and meeting. It is Wednesday September 9, 2009 (Yes, that’s 09, 09, 09), and we will be presenting a powerful expert and speaker, to help us all navigate the tangled mess that has resulted from the recession and credit freeze, and its impact on franchising.

On 9/9/09, come hear one of the foremost authorities on franchise finance, the state of the credit freeze and its impact on franchising, as Ron Feldman, CEO of The Siegel Financial Group (and a RetroTax franchisee) updates us on how we got here, where we are and more importantly, where we're heading.

As those of you regular attendees know, most of our events are purely centered around networking, so having a speaker is a treat... but having Ron Feldman as that speaker, provides an exponential "added value" to the 9/9/09 event. Whether you are a franchisor, a franchisee, a member of a corporate team from either, a supplier, an attorney, ir any an interested party, who's income is dependent upon the well being of those in the franchise space, do not miss this event.

Again, be sure to check out our Web site, LinkedIn or Facebook later next week for additional details – and of course, as always. check my blog. Hope to see all my franchising bretheren on 9/9/09. Check back soon, for updated 411 on the location.

Networking: How To Get The Most Out of Networking Events

2009-08-13T12:10:00.001-04:00

With the Franchise Leadership and Development Conference right around the corner (September 23-25 at the Drake Hotel in Chicago), I wanted to go over a few networking opportunity tips that I have come to learn over my years attending events like these.

TACKLE OTHER PEOPLE’S MISTAKES
It never ceases to amaze, how many times I meet someone at a networking event and they do not have a business card with them. Make your business card like your AMEX card: “DON’T LEAVE HOME WITHOUT IT!”

Don’t rely on your memory. When you meet someone at an event and exchange cards, make notes on the back of their card as a memory trigger for reference. If you work your way through a networking event correctly, you should have collected far more cards than the average person’s memory can account for, without a reference point.

EXCHANGE OF BUSINESS CARDS
Meet and swap cards with as many people as possible and save your more in-depth conversations for a follow-up call or meeting. Taking too deep a dive at the event will limit your opportunity to meet more potentially interesting and valuable contacts.

STUDY YOUR APPROACH CAREFULLY
Approach the same level of interest and sincerity as you would exhibit in a meeting with a new or existing client, but remember the timeline is more like a lightning round than that of a longer, fact-finding or consultative session.

Also, approach networking opportunities with interest in learning just enough to make you want to know more; conversely, sharing just enough to make someone meeting you want to learn more as well.

Finally for preparation, here’s the trick I use: keep your business cards in your left pocket, and those that you collect in your right. You NEVER want to give someone a card that has notes on it—yours or someone else’s.

I will execute these simple, yet effective, strategies at the upcoming Franchise Update Leadership and Development Conference, one of my favorite events for networking within the franchising community. While many in attendance will be those that I already know well or have met at past franchise events, I will also meet dozens of franchising industry professionals for the very first time. In the almost 10 years that I have been attending this event, great things have always resulted from the networking that I did during the conference.

I have continued to come back for this conference annually because it is laser targeted and specific in its content. It is big enough to attract high quality industry leaders, speakers and keynotes, yet small enough to still feel intimate. One can actually look for and find just about anyone that they may want to circle back to and have a deeper conversation and not have to compromise “official” networking time to do it.

3 Questions With Brian Schnell

2009-08-04T13:45:00.000-04:00

Brian Schnell, Partner at Faegre & Benson, LLP

Brian Schnell focuses his practice in franchising and product distribution law. He is a leader of the Faegre & Benson Franchise Team, a premier international franchise practice representing more than 200 franchisors with headquarters based in 35 states and seven countries.

Based at Faegre's HQ in Minneapolis, MN, Brian counsels both emerging and mature franchisors in a variety of industries with regard to all aspects of their franchise programs. He is the lead corporate franchise lawyer for more than 80 franchisors, ranging from companies with thousands of locations worldwide to companies who are in the initial stages of building their franchise systems. These clients operate in dozens of industries including restaurants and related food businesses, hotel, health and fitness, media, automotive aftermarket, pets, convenience stores, children's, and many commercial and residential service and retail segments.

Brian is a past chair of the International Franchise Association (IFA) Supplier Forum and a member of its Legal/Legislative, Awards and Membership committees. He also serves on the board of trustees for the IFA Educational Foundation and the Franchise Advisory Board for WomenVenture. He is a frequent and well-regarded speaker and author on franchising. The first male to receive the IFA Women's Franchise Committee Crystal Compass, Brian was distinguished for this honor in 2009 based on his leadership in franchising. He also is one of only eighteen franchise lawyers recognized worldwide by Chambers Global.

What can guests expect at this year’s Faegre Franchise Summit?
As delivered at past Summits, our Summit guests can expect lively and robust discussion on financial, social media and leadership topics. Our Summit speakers are all industry leaders who will facilitate a passionate discussion on best practices that will make an absolute difference to franchisors and franchise systems.

What are the hot legal topics in franchising this year and what do you foresee coming in 2010?
Candidly, there is not much new on traditional legal topics other than perhaps how franchisors should legally address social media and its utilization in their franchise systems. The hot topics exist on the legislative front with what is happening on Capitol Hill regarding financing availability for small businesses, health care, employee free choice act and other critical small business issues. If there ever was a time for franchisors and franchisees to attend IFA's Public Affairs Conference and reach out to their legislators, September 2009 is that time. In addition, a number of states are increasing their efforts on the tax front in order to help state budget shortfalls. 2010 will be an interesting year on the legal front, as much of what happens next year will depend on how franchisors and franchisees resolve their differences in these economic times. Franchisees and franchisors will struggle and some will fail. If the parties resort to courts and arbitration to resolve problems in confrontational and expensive proceedings, we will see new law (not necessarily good law) that will impact the future of franchising.

When do you foresee an improvement in our economic climate?
We are beginning to see early recovery signs now, but it likely will be the first quarter 2010 before the recovery really catches stride. In that regard, it is critical for franchisors to continue to act now in order to assist franchisees to get through this tough period and understand changes in consumer buying patterns and then be poised to take advantage of market share opportunities.

BONUS: What is your favorite restaurant in Minneapolis and why should people try it?
Manny's (http://www.mannyssteakhouse.com/ 821 Marquette Ave; Minneapolis, MN 55402; (612) 215-3700) There is nothing better than a great steak coupled with a fantastic bottle of wine.

Three Questions, interviews conducted by Stan Friedman, President and Co-Founder of RetroTax, appears twice a month exclusively at http://www.retrofacts.blogspot.com/.

Economic Improvement Continues – My Economic Predictions

2009-07-23T09:51:00.001-04:00

For those of you that read my blog regularly, you know that I remain optimistic about the future, despite these challenging times that we’re all living through. It’s been a while though since I last commented on how I see things, so an update seemed in order. While on some fronts I believe that economic conditions surrounding the recession may finally be close to bottoming out, I’m still a bit concerned about the potential for another meltdown in real estate. This one though, on the commercial front. With so many business failures recorded during the first half of the year, there is the potential for a commercial crisis, stemming from landlords unable to meet their mortgage commitments on unoccupied retail and office spaces.

Needless to say, when it arrives, economic recovery will be good for all businesses, franchised or otherwise. I think though, that it will take a bit of time for demand to catch back up with supply on the real estate side. Overall, as a business model, I believe that franchising would have weathered this storm with far less stress, but for the perfect storm caused by the simultaneous impact of the recession and credit freeze. More than anything, it was the latter that has gummed up the works for franchising, keeping displaced employees from becoming aspiring new entrepreneurs.

Through all of this, IFA members should all be extremely proud of their membership in the International Franchise Association. Now, more than ever, the IFA, it’s Board of Directors, its Government Relations Team, and members on all fronts, franchisors, franchisees and suppliers have made their voices heard at the White House, on Capitol Hill, at the Federal Reserve and the U.S. Treasury.

Don’t miss your chance to do the same by voicing your concern to your elected officials at http://www.franchisingvotes.com/ and by attending the IFA’s fall Public Affairs Conference on Capitol Hill in mid September. More about that opportunity to meet with your elected officials can be found at http://www.franchise.org/publicaffairs.aspx. Each of these efforts support the loosening of the purse strings so that banks again begin lending to existing and/or soon-to-be franchisees. That will provide the best assurance of sustainable growth for our economy and the creation of new jobs and businesses on Main Streets across America. In addition to the obvious value propositions provided by the IFA, like education and networking, in my opinion, there is nothing more powerful than the voice it provides in terms of political action.

As for the future – or the end of this economic drought -- I wish I could read those tea leaves and see through the haze. I do think though, that what happens (or hopefully doesn’t,) between now and summer recess on Capitol Hill, will speak volumes to where we can expect things go from here.

As the old saying in TV news goes, “film at 11.”

RetroTax Welcomes Bob Ritter, Franchising Industry Veteran, to the Team!

2009-07-16T21:00:00.005-04:00

As the co-founder and President of an emerging franchise concept, supporting existing franchisees, along with the ongoing growth of the network, are my two top priorities. Well this week, in one move that I am extremely proud to share with you here, RetroTax has accomplished both, when Bob Ritter, veteran franchise professional, joined the team as Vice President of Franchising and National Accounts.

As has been the case with so many industry peers, I met Bob Ritter through the IFA. Bob and I first connected at an Annual IFA Convention back in the day, and we have become really good friends since. I’ve always been impressed with Bob’s tremendous appetite for knowledge and how well networked he was with the franchising community’s leadership. It’s been during the past two years though, that we developed an even stronger business bond and personal friendship. All of this occurred at the same time that Al Newcomb and I were creating and launching RetroTax.

During this period, I’ve been traveling more frequently to Bob’s home-town of Indianapolis. Indy also happens to be Home Base for RetroTax. When Bob and I first began talking about my new business concept, (over a beer or two, I might add) he became extremely intrigued by the RetroTax concept. Like me in years past, Bob has spent a great deal of time involved with a concept that occupies a highly competitive, crowded market space. Conversely, RetroTax represents a unique b2b offering and is a virtual stand-alone, in terms of competitive franchise offerings. Before learning too much more about our concept, this fact alonw, captured Bob's attention and interest.

As Vice President of Franchising and National Accounts, Bob will perform multiple roles, as a powerful utility player on the RetroTax team. His diverse experience will be called upon to assist with the development and training of new franchisees, support of existing franchisees, and the growth and management of our National Account relationships. Additionally, Bob’s skill sets will also provide a real boost to the leadership development of our Indianapolis-based franchise support and tax credit processing teams.

Recruiting someone with Bob’s expertise and strength of reputation is a major coup for the RetroTax team and we are extremely proud to welcome him to the family.

Back from the 4th, Let's Talk About a Slice of Americana!

2009-07-08T17:00:00.001-04:00

For business owners and executives, being involved in groups and associations that are intertwined with your business model is a very important component of success. As a franchisor, I believe that it's essential to be involved with the IFA, (International Franchise Association) because of the opportunities that it provides for political advocacy, education, the sharing of best practices and obviously, for networking with other franchising professionals.

Equally as important in my view, is the need to engage with commercial/civic associations that help to advance the core offerings of your business model and it's concept. For me, that screams the value proposition being served up by the U.S. Chamber of Commerce and their BCLC. (Business Civic Leadership Center).

Last March, I was exposed to the U.S. Chamber and the BCLC for the first time, as I was invited to speak at their Annual Conference. The program was themed around “Corporate Community Investment" and my topic was, you guessed it: "The power of wage-based, tax credits, and the impact that they can have on your bottom line." (See previous blog posts for more about this topic) This event brought together, some 300 business and civic leaders from all over the U.S.A.

When I arrived at the pre-conference reception, my first impression was that the gathering seemed a bit small, given that this was a national conference. That impression was quickly erased though, as I started talking with some of the other speakers and attendees. In fact, I was very quickly reminded why it is NOT a good idea to judge books by their covers. Truth is, there was a great deal of power harnessed in this group and it was the BCLC that brought it all together. This assemblage represented a cross section of America's DNA, it's very engine, if you will. Included were: for profits, not-for-profits, representatives of both the public and private sectors, executives from large corporations, mom and pop operators from Main Streets across America, fledgling, community-based non-profits, standing alongside representatives of mega-large corporate foundations. Representatives of local and regional Chambers of Commerce attended, as did the Mayors of large and small American cities. Also found in the mix were representatives of the U.S. Governors Association, the U.S. Small Business Association, The Department of Defense, even the White House was represented at this conference. Beginning to get the point? It was no doubt, an eclectic group.

Regardless which market sector you represented when you got there, the BCLC and the Chamber brought this public/private sector conglomeration together for the purposes of attacking a single common focus: that being, how to expedite economic recovery in America. In fact, "Together for Recovery" was the subset of this entire summit. A lot of incredible results were born out of this conference, but there is still a lot of heavy lifting left to be accomplished. Look into joining the BCLC and the U.S. Chamber. If you are not aware of the good that they do, visit www.uschamber.com/bclc/about/default , and get involved! Help make a difference, as only YOU can. Whatever effort you put forth, will pay you back ten-fold.

Personally, I developed some great relationships as the result of this two-day BCLC conference. Consequently, I am now working closely with several organizations that I might never have otherwise been introduced to. I’ve also been smitten by the BCLC, the U.S. Chamber and the dedicated team of professionals that make this organization work. This has culminated in my commitment to do more for and through this organization for the common good of myself, my business, the BCLC, the U.S. Chamber, its members and the people that they serve.

Five Things You Didn’t Know About Tax Credits, But Should

2009-07-02T10:47:00.002-04:00

Many business owners and executives don’t know the first thing about wage-based tax credits. Frankly, that’s OK with me, especially since that’s what we’re all about. RetroTax was conceived to help remedy that problem and then assist with the administration of these very complex programs.

Business owners that do know about these programs often stray away from them because they seem too complicated to manage. Once again, RetroTax provides the fix to that dilemma. Here then, are five things you didn’t know about wage-based tax credits, but you should:

1) These programs are not only available to mega large corporations: In fact, wage-based tax credits are available for all companies – small or large. You don’t have to be the big guy to benefit from these credits – you just have to employ people. They need to meet certain demographic or geographic criteria, but odds are that some percentage of your employees will qualify for something.
2) In reality, almost any business employing 10 or more people will be eligible for something: So, don’t leave money on the table, especially in today’s economy. There could be significant amounts of money available, that you are missing, simply because you didn’t know these programs existed for you to benefit from.
3) Tax credits are like money in the bank, as they can be carried forward for as long as 20 years: So, even if you are not tax liable for some reason in the year you earn these credits, that’s no problem, you can hold on to them and apply them in future years.
4) Several of these programs are retroactive: Meaning that just because you didn’t know about this previously, you actually still go back and reclaim credits that you were eligible for, from the past three years.
5) April 15th is the only day to focus on for tax credits: WRONG. As many as eleven categories that qualify you for these credits only apply to future hires. So, each and every day that you wait could cost you thousands of dollars.

There is absolutely no reason why any business shouldn’t at least inquire about these possibilities. All it takes is a simple conversation and a little research into the possibilities. So, what are you waiting for. Give me a call today!

RetroTax Identifies Ideal Markets For Growth – 200 EZs,RCs, Less Developed Census Tracts and Rural Renewal Counties, but for now...

2009-06-25T14:00:00.016-04:00

Throughout the last year, RetroTax’s growth has been focused on the start-up of our new franchisees and the addition of a few more. Now, with their operations up and running, we're all focused on connecting our services with business owners in five major cities, while continuing to focus on our next stages of development: Growth into new markets.

While there are many markets prime for RetroTax’s operations and services, we have strategically identified our next “hot” markets as the Federal Empowerment Zones and Renewal Communities of Washington, DC, Baltimore, Milwaukee, Southern California, San Antonio and Columbia/Charleston, SC. Our concept has attracted significant interest from prospective clients and franchisees and the media alike. From the prospective client and media side, there is always a great deal of intrigue around our not-so-widely known core services, the administration of wage-based tax credits for business owners. For prospective franchisees, the focus is on our unique business model, it's low cost of entry and overhead, the B2B lifestyle and of course the desire to fulfill one’s dreams.

As for who's right for us, when we began, I believed the profile of our ideal candidate would be someone with strong interpersonal skills, and intangible sales experience. High level, intangible sales experience. Someone who would be comfortable in the C-Suite, going toe-to-toe with an executive, business owner or high level corporate officer.

While I still believe those traits are paramount, I have learned along the way that previous business ownership or management experience is every bit as important. Our franchisees must focus on both long-term strategies and the big picture, while at the same time executing the day-to-day tactics required to successfully market, farm, hunt, and harvest new business.

We are all very focused and committed. Together, we are building a culture and a brand the right way, in the right places, with the right people, at the right time. That is what will propel us even deeper into the cities and businesses that we strive to work closely with.

On Nationwide Tour of Zoned Tax Credit Cities, Milwaukee Impresses

2009-06-17T18:01:00.003-04:00

Each minute of my three days last week in Milwaukee was so highly charged that it was like trying to take a drink of water from a fire hydrant.

My first meeting which I really thought of as a social call, turned into anything but. It was to catch up with a restaurateur that I met back in 2003-04, when I was still at Wing Zone. Back then, this gentleman came to Atlanta for one of our Discovery Day programs, but at that time, chose not to move forward with our Milwaukee opportunity. We liked this guy a lot though and I still do. That’s why I phoned him in advance of my trip into Milwaukee. I, of course, figured that since he still owned his restaurant, I might be able to do him some good with tax credits.

After getting caught up on what he’s been up to for the past five years, it turns out that his current business interests, high profile and network of connections in Milwaukee, make him a really strong candidate for a RetroTax franchise. I’m very much looking forward to receiving a preliminary application from him and his partner and then bringing them to Indy for a RetroTax Discovery Day. Perhaps this time, we’ll come to a different conclusion.

As witnessed by this reconnection, my search for a franchisee in Milwaukee could actually be over before it even starts, given the application that I am expecting to receive and the upcoming Discovery Day that will follow. A second potential candidate has also expressed interest in the market, but is not quite as far along in the process just yet.

What a bonus and sweetener all of that that turned out to be. My Milwaukee trip was originally scheduled because I was invited to participate in a meeting of the Milwaukee UEP. (Urban Entrepreneur Partnership) The UEP has local chapters nationwide, designed to encourage entrepreneurship in urban areas, particularly among minority entrepreneurs. This partnership combines public, private and nonprofit sector resources to expand entrepreneurship and jobs in historically neglected and economically underserved areas across the country. At the local level, this meeting very much reflected the work that I have recently jumped into with both feet at the national level, with the US Chamber of Commerce and its BCLC (Business Civic Leadership Center).

I came to speak to these civic and business leaders in Milwaukee, about the benefits and advantages of wage-based tax credits and the positive impact that they can bring to businesses located in and around Milwaukee’s Federal Renewal Community. Attendees at this meeting represented leadership from the public and private sectors, bankers, CEOs, financial professionals, attorneys, academicians and the Federal Reserve Bank of Chicago’s, Community Affairs Director, who assists with the facilitation of this UEP Chapter and its work.

My interest in this market is spurred by the fact that some 70 percent of Milwaukee’s city limits are located inside the boundaries of the city’s Federal Renewal Community. Milwaukee also has a strong urban residential population. These two factors together spell significant opportunity for the identification and generation of wage-based tax credits. Add to that the charm of the city and its people and that Milwaukee is a great place to do business, especially at this time of year.

As you can see, my love for Milwaukee is identified in both business, personal terms. One of my Chicago franchisees actually lives in Milwaukee’s northern suburbs. That probably begs the question, “why then isn’t he a Milwaukee franchisee?” The answer is that he is “hard-wired” to the city of Chicago. Additionally, he is in partnership with his daughter and son-in-law on their RetroTax franchise and logistically, Chicago makes greater sense for them all. I’ve actually made some very significant new friends and business connections in Milwaukee who are proving to be very deep and meaningful. My links to this community are already running deep and I am looking forward to expanding them all, in good time.

Great trip, great momentum, great results – all for our growing RetroTax brand that is STILL attractive in any economy, most certainly, this one.

RetroTax Opens Shop in Philly; Welcomes First Franchise Industry Supplier as Franchisee

2009-06-10T12:00:00.003-04:00

Virtually nobody in franchising will recognize my new Philadelphia franchisee by its corporate name, SFG Tax Credit Services, LLC, but they will recognize these names: Bernie Siegel, Ron Feldman and Nate Greenberg. Yes, Philly’s first family of franchise financing has become the most recent addition to the RetroTax franchise family. Siegel Capital and its principals have played a prominent role in both my professional and personal life for a great many years.

What’s more, Ron, Nate and Bernie exemplify a very significant cornerstone of what our business model is built upon: TRUST! Bernie Siegel began doing financing deals for me back in 2003, while I was still at Wing Zone. Over time, Siegel Capital went from being just one of "many" sources for our 3rd party financing, to being our SOLE source. Why? It was because they got our deals done quickly, efficiently and happily, for all parties to the transaction. Franchisees were happy because Siegel helped them avoid the endless mire of red tape associated with SBA loans. The banks were happy; because they knew that any deals that Siegel brought to them were properly vetted and correctly packaged.

As the Franchisor, I too was happy, because transactions closed and funded on schedule. There were never any wrinkles or hiccups, attributed to financing. I don't mean to speak for Bernie, Ron or Nate, but somewhere in this equation, the trust factor must have cut the other way as well. I am extremely moved by the amount of trust that these guys have placed in me, my partners and the entire RetroTax team and family. As a young franchisor, It is very flattering when anyone says yes to us, but when its guys like Ron, Bernie or Nate, prominent peers in franchising and friends that I have known personally for years, it is extremely humbling. As my partner Al would describe it, it’s rather “heady.”

In addition to the amount of credibility that these guys bring to us collectively, from within the franchise community, let’s also remember that Bernie the rocket scientist, (I kid you not, he was actually an aerospace scientist) before becoming a business broker and intermediary extraordinaire, has been hard wired to Philadelphia's business leadership for more than 20 years.

To have this group sign on is certainly a testament to the fact that those people that I take seriously in franchising are certainly viewing us in kind. There is no telling (yet) who our next franchisee will be, but it’s all good and gets nothing but better from here.

Update on The Recession Friendly Franchise – RetroTax

2009-06-03T16:30:00.004-04:00

Amazing how fast this year is zipping by. With each and every meeting that we take with a prospective franchisee or business client, we are creating more and greater opportunities for the growth of our company. Right now I am at our processing center in Indianapolis, overseeing the training of our newest franchisees, RetroTax No. 6 (more to come on these “high profile” guys in an upcoming blog).

Our business won’t slow either. By year’s end I expect to have at least six more franchisees trained and operating. Being that we are a boutique type concept, this will be a tremendous measure of success for our young company. RetroTax was never contemplated to be an offering that would put out dozens or hundreds of franchise units in any given year. Six more by year end would have us at a total of 12, in less than two years. That is a number that I will be very proud of. Actually, for me the real measure of success comes from the numbers that the franchisees post, (sales and margin) not the number of franchises that we award.

For certain, times like these are troubling, but things around here are good. That said, this economic climate can be humbling. At this stage of our growth and development, our biggest challenge as a franchise concept and company, is deciding how, when and where to deploy our assets, both current and future. As we grow, we will continue to make enhancements and additions to our infrastructure. Our plan is to plow ahead aggressively with our development strategy, despite the fact that the world around us is still locked in the grips of recession. We can ill afford to sit around and wait for an upturn in the economy, before upgrading systems, technology and human resources. One such major addition is the introduction of a new position on our. org chart. RetroTax now proudly boasts the addition of a Director of State and Local Tax. That position has been filled by a very talented “recovering attorney” named Carol Stephan. Carol is an accomplished professional in the field of State and Local tax and we are extremely proud to have her on our team. Along with Carol, our recently inked alliance partnership with the Ryan Company brings a whole new level of services and programs for our franchisees to offer and for us to administer.

So, challenges like recession do breed opportunity. We face no shortage of interested parties to talk with, regarding our core services and our franchise offerings. When times are good, people like what we do, because we save them money. In times like these, people LOVE what we do and are interested in learning how they too, can become part of the RetroTax team.

More updates to come.

Together for Recovery Provides Path for Economic Resolution

2009-05-27T11:46:00.006-04:00

A few weeks ago, I wrote about an organization that I have recently been introduced to and for whom I have subsequently committed to work tirelessly. It is called the Business Civic Leadership Center. (BCLC) is an arm of the U. S. Chamber of Commerce. Its mission is to advance the positive role of business in society. As such, (BCLC) and the U.S. Chamber work with leaders from business, government, and non-governmental organizations to address and act on shared goals.

Given the depth of the current recession and credit freeze that our nation has been feeling the pains of, since at least Q4 of 2008, one such goal has been to find a way for all of those served by BCLC to weather this storm. In early May, 2009, (BCLC) and the U.S. Chamber actively engaged the business community, government, and nonprofit organizations to help America get back on its feet. It did so during a Rally for Recovery, at its annual National Conference on Corporate Community Investment in Chicago.

Subsequently, (BCLC) launched: http://www.togetherforrecovery.org/ At this portal, business owners, non-profits, individuals will find a one-stop-shop for information and guidance regarding economic recovery. BCLC and the Chamber has assembled the largest collection of examples on how the business community is part of the solution to economic recovery. If your company is doing something to help blunt this recession but is not yet listed, please tell (BCLC) what you are doing, so that they may update the site and share this with their subscribers.

Personally, I wish to thank Katie Loovis, Director of Business and Society at the (BCLC) and Stephan Jordan, Senior VP of the (BCLC) for inviting my participation in the video that is found at http://www.togetherforrecovery.org/ (BCLC) and the U.S. Chamber are committed to ensuring that that American businesses thrive, and that those of us on Main Streets across America emerge as victors, not victims of these trying times. My sincere thanks to each and every member of their team, for all that they do. Let me encourage you too, to become engaged and involved in the work of this organization.

ATLFA Meets This Week: If In Atlanta, Don’t Miss It

2009-05-20T12:00:00.002-04:00

I would like to personally invite all of the RetroFacts readers to the Atlanta Franchise Alliance’s May meeting, 5-7 p.m. tomorrow (Thursday, May 21, 2009) at the Paper Mill Grill, 305 Village Parkway, in Marietta, GA.

The meeting is a great networking event and an opportunity to connect with your franchise colleagues from Atlanta.

To understand the value of the ATLFA, one must first understand our growth, as throughout the last year it has been two-pronged. First and foremost, we continue seeing many first-timers at our networking events, which is always a great indicator of growth. Secondly, we are growing internally, with the addition of four new members of our board in 2009. They are: Nick Powills, CEO, No Limit Media Consulting, Rich Greenstein, Partner, DLA, Piper, Greg Cory, CEO, eMaximation and David Asarnow, President, CEO at CLIX Portrait Studios.

This week, without a doubt, the economy and its impact on our businesses and ability to obtain credit and financing for new and existing franchisees will be top-of-mind. That remains the hot topic everywhere.

Our topical meetings set the tone for great interactions. Anyone with an interest in keeping up to date on what’s going on around them in franchising should clear the calendar for tomorrow night. Whether you are a franchisee, franchisor or a supplier, this is where to connect with all of those on the cutting edge of the franchise business model locally.

Interview on WGRZ Buffalo on Franchise Ownership

2009-05-13T10:31:00.003-04:00

Good morning from Buffalo, NY. I am there for the “Building Buffalo Businesses Through Franchise Ownership” event at the Hyatt Hotel. If in town, anyone interested in franchising should come on by.

Last night, WGRZ interviewed me about the event. Take a look:

If you are able to make it, below is the schedule of events:
8:00 am – 8:55 am Registration and Networking with Exhibitors

9:00 am - 9:15 am Welcome and Greetings –
Mayor Brown and representation from partnering organizations

9:15 am - 9:35 am “Franchising: Building Local Businesses, One Opportunity at a Time”

9:45 am – 10:45 am Session I (Select one)
A – “Experiences in Franchising: What are Franchisors Looking For and How I Did It”
B – “Legal Aspects of Franchising: What I Need to Know Before Signing on the Dotted Line”

10:45 am –11:15 am Networking with Exhibitors

11:15 am - 12:15 pm Session II
C – “Is Franchising Right for You?”

12:30 pm – 1:30 pm Networking Lunch/Time with Exhibitors

1:45 pm – 3:00 pm Closing Session
“Finance and Technical Assistance- What Resources are Available”

3:00 pm - 4:00 pm Networking with Exhibitors

Thinking Of Opening A Franchise Business?

2009-05-13T10:18:00.003-04:00

This is an article published on WGRZ Buffalo’s Web site about RetroTax and about an initiative I hold near my heart – franchise development; and franchise development in Buffalo.

If you've always thought about opening a franchise business you might want to start with a stop at the Buffalo Hyatt on Wednesday.

Maybe you've always thought about opening a franchise business, ..but you had a steady job.

Maybe you've lost that job, and with nothing else to lose, you're now thinking of pursuing that long held dream.

You might want to start with a stop at the Hyatt Hotel in downtown Buffalo Wednesday. There, an all day seminar will be held called "Building Buffalo Business Through Franchise Ownership". It is sponsored in part by the International Franchise Association which includes Stan Friedman among it members.

"It's a program that's geared toward educating consumers as to how to be a good franchisee, what to look for, how to find opportunities," said Friedman. "It will also focus on what you need to know from the legal aspects of franchising, learning about financing your dream and getting into a concept that's right for you," he said.

While most can rattle off the names of franchise businesses in the retail and dining sector , Friedman says there are numerous other opportunities for which franchise fees and start up costs are a fraction of what a popular restaurant chain might command.

"There are many businesses or business models that are franchised that have nothing to do with anything that you and I and the average person may have ever heard of."

Friedman says there are franchise opportunities for fundamental services such as health or elder care, ...which don't slow during a recession and don't require heavy investment in real estate or equipment.

He cites his own business for which franchises are available as a prime example. Freidman is the franchisor for RetroTax, which is a business to business service. It basically assists other firms in finding tax credits and other incentives which they may be eligible for but about which they are unaware.

"The government puts 11 billion dollars out there in incentive money on one hand, then makes it so impossible for you to figure out how to get the money on the other," Freidman said. "Without a business like mine, most of these businesses that could claim these credits would never do it."

He notes that someone seeking a franchise opportunity with his firm needs not much more than a suit of clothes, a blackberry, an office, and the drive to succeed. But he concedes they also need one more thing to begin a franchise in any field.

"They've got to have some money to start with, and the ability to get some more." Thomas Ulbrich, who serves as Executive Director of the University at Buffalo's Center for Entrepreneurial Leadership says that's where a lot of dreamers are in for a rude awakening. "If you're preparing to look for money or seek a loan, you better be prepared with a solid business plan and you better have very good credit,"

Ulbrich told 2 On Your Side, noting it's even more essential these days as banks tighten restrictions on credit. Both say one thing you don't need to have to be a successful franchisee is a business degree.

"The opposite is more the case because you've got a play book in front of you in franchising," said Friedman.

"By purchasing a franchise or rights to a franchise you're really buying a business plan that's already been created successfully as well as brand recognition," added Thomas.

Thomas cautioned, though, "If you think owning a franchise is a magic bullet that would be a big mistake. You still need to consider carefully location, marketing, and a host of other business decisions. It's not that simple to just say, 'hey I have a franchise so everything's done for me.."

Friedman concurred by saying, "it's not like buying a car that you can trade in if you don't like it. I think the biggest pitfall is not using both sides of your brain when your making a decision."

Above all, both concurred operating a franchise business successfully is a lot of hard work. But both also subscribe to an old saying, which goes: there are very few things in life which are worthwhile which aren't worth working for.

"I can liken this to my own son," explained Friedman. "He wants to be a baseball player but doesn't like to practice. He wants to be a great piano player but doesn't want to practice. He wants to be an "A" student, but you gotta do your homework. This is not all that different than anything else in life. It's just another stage of commitment."

The "Building Buffalo Business Through Franchise Ownership" seminar runs from 8am to 4pm Wednesday at the Buffalo Hyatt hotel. There is a $20 registration fee.
WGRZ-TV , wgrz.com

U.S. Chamber of Commerce-2009 Business Civic Leadership Center

2009-05-06T14:55:00.015-04:00

Virtually anyone who knows me professionally knows how much I love my involvement with the IFA. Well this week, I’ve been introduced to yet another national business organization, one that has very quickly smitten me. In many ways this organization reminds me of IFA, but in other ways, it is different.

I’m talking about the U.S. Chamber of Commerce and their (BCLC) Business Civic Leadership Center. Last month I was invited to speak at their Annual Convention and now, as I post this blog from Chicago’s Miracle Mile, that conference has just concluded.

This event was attended by just 300, but a more eclectic group of assembled professionals, I have never seen. Among the roster of speakers and attendees were Mayors, C-level executives from America’s leading companies, public and private sector icons, large corporations, small businesses, legacy foundations and start-up non-profits, strategists, economists and even thinkers from academia.

Government officials in attendance represented the White House, the SBA, The Departments of State and Defense and even the USDA. Insurance, healthcare, The Federal Reserve, the media and even the National Governors Association, they were all there too. This conference was a veritable “slice of Americana.”

Similar to IFA’s role in franchising, the BCLC’s mission is to advance the positive role of business in society, but it does so in a much broader sense than IFA. As such, BCLC and the US Chamber works with these leaders from business, government, and non-governmental organizations to address and act on shared goals. Most noteworthy to me and to others that I spoke with as well, was how egos got parked at the door by everyone in attendance at this conference and how engaging and interactive everyone was.

It reminded me of how every year at the IFA Convention, first-time-attendees marvel at how caring and sharing the speakers are and how they are so openly willing to share information, even when potential competitors might be in the audience in the very same room. I got that same flavor at this conference. The difference though , was that while the spectrum here was much broader, the conference much smaller, far more intimate, making the interaction all the more powerful.

I sincerely wish to thank my friend Don Graves for connecting me with Katie Loovis, Director of Business and Society, for the Business Civic, Leadership Center. I hope that Katie, and Stephan Jordan Senior VP of the BCLC will invite me back and allow me to expand my involvement with the U.S. Chamber of Commerce. This is one fine group of professionals, working tirelessly to ensure that American businesses thrive, on Main Streets everywhere.

Solution to Washington Post Article

2009-04-29T15:00:00.000-04:00

The article, titled “Small Businesses Brace for Tax Battle” suggests that small business owners are fearful of the potential increased taxes on their businesses. What should small business owners know about using tax credits to offset the increased taxing?

Small business owners have many opportunities to offset their fears of rising tax liabilities, by implementing one, if not more, of the many wage-based tax programs available to them, for creating jobs and employing people. From the Federal Empowerment Zone Wage Tax Credit Program, to Renewal Community Initiatives and Work Opportunity Tax Credits, to similar state programs, available in many of the lower 48, the options are many. It’s actually safe to say that on average, 10-15 percent of the W2s that run through a business owner’s payroll in a given year could be worth, an average, $1,500 per person (depending on which of the myriad of wage-based tax credit programs they may qualify for) per year. Take a typical two store, fast-food business with 40 people on the payroll; and a 200 percent turnover of personnel. In this example, the business owner would then be managing an average of 80 W2s and chances are that eight to 12 of those employees past or present, could produce tax credits, averaging $45,000 ($1,500 Credit X 10 W2s X 3 Years = $45,000). That’s REAL money to any small business owner. Do you feel the media and small businesses still need to be educated on the power of tax credits? Most certainly, that’s what we and our franchisees are in business to do. Communicate and educate business owners to the value proposition of these tax credits and moreover, to then guide them through the process of maximum utilization of these opportunities. The media is usually very interested in helping us spread the word, once they discover how powerful an opportunity we provide for small and medium business owners in the communities that they serve.

What is missing in the education? Nothing that can’t be remedied, with the strategic placement of more RetroTax franchisees, in markets where these credits abound. They will then continue to spread the word to business owners, in the communities that they serve.

Often, when approached about the possibility of having thousands of dollars sitting unclaimed, business owners usually respond by saying, “this just sounds too good to be true.” I agree, It does sound too good to be true, but that notwithstanding, it is true. I simply encourage any skeptics to Google IRS Publication 954. This publication spells it all out and validates the reality of these programs. What it doesn’t do though, is tell a business owner how to administer them.
That’s where we come in.

Long-Time Friend Killed: Ken Harris Will Be Missed

2009-04-22T08:40:00.005-04:00

On Friday April 17, 2009, the world lost a great soul, when my long-time friend and mentor, Ken Harris was killed in a motorcycle accident. I first met Ken in 1988, when I was hired by ERA Real Estate, as a “wet behind the ears” franchise sales rookie. At that time, Ken was ERA’s Vice President of Franchise Development. During those years, and the years that followed, Ken taught me a ton about franchise relationships and development.

Many of you know that George Slusser, another ERA colleague, is who actually hired, nurtured and managed my career at ERA. (Not once or twice, but over the course of nearly 10 years, George actually hired and promoted me on three separate occasions.) It was Ken Harris though, who taught me my most fundamental lessons about franchise sales and development. Ken helped me learn that franchising is a business model built upon relationships. He also taught me that life is more about the journey, than the destination. While I don’t think I ever told him so, Ken actually gave me the courage to get into business for myself.

More than anyone I’ve ever known, Ken Harris reached for the stars. He had the courage to step outside the box and give things a try. Some of those things worked out better than others, but make no mistake, Ken Harris was always in the game. Moreover, Ken inspired the same in all of those that knew him. He was the consummate networker and he cared deeply about everyone in his universe.

Ken loved life and lived it to its fullest. While he’s left us behind for now, the Big Guy’s legacy will live on, in all of the professionals whose lives he touched. His wife Gayle, their kids and grandkids are some of the luckiest people in the world. They had the good fortune of spending more time with Ken than I ever could. I can't thank them enough though, for sharing some small part of him with me.

Live to ride, ride to live…, that’s the Ken that I knew. I will love him and miss him, until I see him again.

Business Owners Should Understand the Importance of: The Empowerment Zone, Renewal Community and Enterprise Community Enhancement Act of 2009

2009-04-14T22:20:00.001-04:00

In essence this is a bill that would amend the Internal Revenue Code of 1986, to extend and expand the benefits for businesses operating in Empowerment Zones, Enterprise or Renewal Communities.

This particular bill has been proposed in each of the last two sessions of Congress, but never got voted upon. Sessions of Congress last two years, and at the end of each session all proposed bills and resolutions that did not pass are cleared from the books. Members often reintroduce bills that did not come up for debate under a new number in the next session. In the 110th Congress, this bill was known as HR 2578 and in the 109th Congress, HR 5660. Now, in the 111th Congress, HR 1677 has been referred to the House Committee for Ways and Means and that is where it currently awaits further action.

This bill will allow for the extension of tax credits for those who create jobs and that’s a good thing for our prospective and existing clients and franchisees. In the broader sense, anyone in business should keep a close watch on what goes on at the Capitol. How better to protect and preserve one’s ability to stay in business? That's one of the reasons why I love the IFA so much. The mission of IFA’s Government Relations Department is exactly that; to preserve and enhance the legislative and regulatory climate for the growth of franchising. They do so by providing services and representation to IFA members nationwide, by monitoring legislative and regulatory activity, conducting lobbying and grassroots campaigns, participating in national and local coalitions, creating forums and educational tools for experts in the franchising community, and promoting positive relations between franchisors, franchisees, and elected and appointed government officials and employees. Most business owners don't have the resources required to manage these vital activities without belonging to an organization like IFA.

As for RetroTax, passage of HR 1677 will be good news for existing and future RetroTax clients and franchisees. In essence it would extend the scope and benefit of these Federal wage-based tax credit programs through December 31, 2015.

Also, bills such as this one, are signs that tax credits will continue to evolve in the years to come. Just as the Hearltand Disaster Relief Credit was legislated in 2008, extending benefits to the mid-western states for flood relief and the GO Zone credits (Gulf Opportunity) were legislated following Katrina, look for future legislation to include Work Opportunity Tax Credits for jobs created during during recession, helping to reduce and reverse dependency on unemployment insurance. Green credits too, continue to evolve as conservation and global warming continue to weave their way into the fabric of our lives.

Be sure to return to my blog often, to monitor the public’s opinion of HR 1677, in the tool bar to your right. More importantly, contact your Members of Congress and tell them that you are counting on their support of HR 1677.

Administration of Tax Credits Takes Time; How RetroTax Makes It Easier

2009-04-08T14:16:00.001-04:00

When I am asked, “how much time and energy goes into administering a tax credit?” I return that question with this one: “How much time goes into closing a mortgage loan?” Of course, in either case, the answer depends on who is doing the work. Even for those that sell a house on their own, minus the help of a professional realtor, who knows of anyone that actually gets a mortgage loan closed the same way? Answer… NONE! The reason is that even if you do navigate your way through the real estate process and transaction alone, virtually NOBODY closes the loan by themselves, without the help of professionals. Same can be said for the process of administering tax credits and incentives. It is onerous. The good news though, is that when you retain us to do the heavy lifting, WE do the work, and YOU get the credit.

The timeline from when we are retained, until the time when credits are redeemed, depends on whether we are administering demographic or geographic credits. The process and client involvement is a bit different too, depending upon which types of credits we are administering.

Today’s economic climate has definitely created something of a “stimulus” for us as a business model. What we do makes sense in ANY economy, but it becomes far more compelling in times like these. With so many business owners struggling to make ends meet and wrestling with issues like tightening credit to keep their boats afloat, payroll can become something of a challenge. In reality, sometimes the credits that we administer, can make the difference between keeping, vs. laying off personnel.

As our business continues to grow, perhaps RetroTax itself is providing a stimulus for the economy. From my vantage point it’s really impossible though to know how the money that we save a company is allocated. Is it saved, or is it spent? I just don’t know. What I DO know is that because of us, many business owners at least have the option of deciding that for themselves, as opposed to scrambling to make ends meet. They have the choice. They have options… and options, like credits are GOOD things!

Two Weeks Until Tax Day – For Many Businesses Though, It’s Still Not Too Late to Benefit From Tax Credits

2009-04-01T11:27:00.004-04:00

While the media is certainly hot on the topic of taxes as we approach April 15th, the topic of “tax credits” is one that our clients talk with us about all year long. In fact, our rush began around January 1 and ran through the deadline for the first quarterly filing date for corporations, which was March 15.

When it comes to business vs. individual tax returns, the biggest myth of all, is that April 15 is tax day. While true for individuals, corporations are on quarterly cycles, with March 15 ending the busiest time of all, for those in the corporate tax world. Many companies have other quarterly filing dates, but March 15 is the grand dad of them all. Can you claim tax credits year round? Certainly, if you are eligible for geographic, wage based credits. (FEZ/RC) But, that said, retroactivity only extends three years from the open tax year. So, once 2008 returns are filed, we would only be able to look back as far as 2006 for any credits that might have been available in those tax years. If the 2008 return has yet to be filed, we could go back as far as 2005, retroactively.

A year from now, tax credits will change, but it’s still too soon to tell what impact the stimulus package will have on jobs creation. If however, those shovel-ready jobs begin gaining traction, there will be many opportunities to generate credits, as a result of the jobs that will be created. More immediately though, there are two new categories for demographic credits (WOTC) that were born out of the stimulus bill and these WILL make a big difference. These categories are: unemployed veterans and disconnected youth. In general, an employer can earn from $2,400-$9,000 in tax credits for hiring a qualified unemployed veteran or disconnected youth who begins work for the employer during 2009 or 2010.

An unemployed veteran is any veteran who is certified as having been discharged from active duty at any time during the 5-year period ending on the hiring date; and being in receipt of unemployment compensation for not less than 4 weeks during the 1-year period ending on the hiring date.

A disconnected youth is any individual who is certified as 16 – 24 years old, not regularly attending any secondary, technical, or post-secondary school during the 6-month period preceding the hiring.

The bottom line is many businesses have tax credits available, but never claim them. That is why our business is so attractive to both potential clients and franchisees as well. Our tax credit administration process is second to none. While we cannot predict future tax credit trends, we definitely know how to maximize their potential, once we identify them and let our clients know that they are available.

Recession Friendly Concept Continues Growth, Signs Franchisee No. 4

2009-03-25T05:00:00.000-04:00

With incredible pride and pleasure, I announce that yet another long-time friend of the company and/or its principals has joined the RetroTax family. Please join me in welcoming John Hess, who has signed on as our fourth franchisee and the first in Chicago Land. (BREAKING NEWS… yet another Chicago announcement coming soon) John has been on the RetroTax “fast track” for quite some time, as he has had a relationship with our affiliated company for a great many years and , more recently, became an independent contractor for RetroTax, before we began offering franchises. Now, John has decided to jump in with both feet and become a fully dedicated franchisee.

John is a graduate of the University of Wisconsin-Madison with a degree in Economics. Prior to his involvement with RetroTax, he was President of CC Development Strategies, Inc. (CCDS) a consulting firm specializing in workforce development, employment solutions to non-profits and government agencies and tax credit consulting to organizations hiring low income individuals. Before starting CCDS, John held the position of Vice President and Director of Sales and marketing for over 9 years, with a national staffing and employment services company involved in the syndication of wage based tax credits. In addition to his experience in the employment services industry, he spent 13 years in the investment industry as a portfolio manager and analyst with a Chicago based investment advisor. John is also currently on the Board of Directors of the Social Enterprise Alliance - Chicago Chapter; Bright Endeavors, a social enterprise committed to helping inner city, homeless and at-risk young women; and Asset Builders, LLC an organization dedicated to helping low wage individuals build wealth.

John’s strength as a business owner and as a person make him the perfect fit for us. The market opportunity in Chicago too, is truly unique, as it is home to not either a Federal Renewal Community or Federal Empowerment Zone, but both. Given its size, density of population and the fact that it houses both types of zones, Chicago should be an outstanding market for RetroTax.

More news to come, keeping an eye toward the West Coast, Ohio, Pennsylvania and DC.

Atlanta-Franchisor Focused on Customer Service In Tough Times

2009-03-18T08:18:00.003-04:00

Last week I was treated to a multi-tiered experience at an Atlanta-based franchisor’s “company store.” While this may seem to stray a bit from those things that I usually write about, I think that this experience is definitely worth sharing. Let me preface by telling you that the focus of this post is not so much about the retail experience itself, (which was remarkable) but more about the culture that I was exposed to, on a number of fronts. The concept is called Clix Portrait Studios and it’s headed by CEO, David Asarnow.

This all started with my need to update my publicity headshots. When I saw David at the IFA Convention, I mentioned that to him and he suggested that I come to Clix. I did and I not only came away with some outstanding composites, but add to that, a dose of franchising at its very best.

Because I went to their “company store” for my session, the studio that I visited also serves as the Clix Training Center. So all of that said, let me set the stage. I arrived for my 4 p.m. appointment and stepped into the usual mix of chaos one might expect to find at that hour of the day at a retail portrait studio: Families with babies and high energy kids, some well behaved, others not. On this day, though, add to the mix new franchisees in training from Arizona, along with a new member of the corporate team, also in training. So, I stepped back and asked myself, do I really want to do this or should I come back another day? I decided to stick it out and am I glad that I did.

For years, be it in food or any other franchising concept, for that matter, I have always professed that a franchisor’s single greatest strength, resource or assets, are his people. I know that if it’s a food concept, your recipes are important and that no matter what, there’s always your “trade secret” proprietary stuff. Bar none though, in my mind, when you’ve got the right people piece in place, you’ve got a cultural advantage that no competitor can steal. That’s what I experienced at Clix. There was one single, common denominator present that was shared by the experienced, technical help, as well as the newbies in training (staff and franchisees).

There was an absolute alignment of one thing first and foremost… the customer’s experience.

Whether it was having the patience to engage a screaming five year old and replace her tears with a smile, or go back and reset some poses, because they just didn’t hit the high water mark that was desired, every single thing that I could see in this corporate culture screamed “customer-centric.”

You know, living up to expectations used to be the gold standard, but anymore, that’s simply not enough. In fact, in today’s world, that’s no longer even point of entry. Exceeding customer expectations is the new starting line and from there, treating your customer to a WOW experience is where the rubber really meets the road.

It’s no different at RetroTax then it is at Clix or anyplace that subscribes to principle centered leadership. It all starts at the top, with leadership by example. Next, put the right people in management positions and empower them to deliver upon their areas of responsibility. Then, select teammates and franchisees who share the vision, values and ethics of the culture they are joining. Sounds easy, doesn't it? But it’s not, or trust me, everyone would be doing it.

Tax Credits and Tax Credit Administration Popular During Economic Struggle

2009-03-11T05:00:00.000-04:00

These days, business owners are instantly excited by the prospect of tax credits being available to their business, as these credits and incentives can improve the bottom line – which is welcomed in any economic climate, but especially now.

The most popular tax credits that RetroTax administers are the empowerment zone and renewal community credits. The reason is that an eligible business owner can not only claim the credit for the open tax year, but can also reclaim, on a retroactive basis, taxes for as many as three years previous to that, for credits that could have been, but were not, claimed.

Once business owners discover that they do indeed have credits awaiting them, they also find out what it takes to claim these credits, is no walk in the park. Business owners cannot administer these credits on their own for the same reason that virtually nobody can close a home loan by themselves. The amount of knowledge, paper and detail makes it virtually impossible for even the most sophisticated businesses to do this on their own, especially when a company like RetroTax will do all the work for them, with no set up or consulting fees, strictly on a contingent fee basis.

Business owners are impressed by the fact that we only get paid if we produce results and therefore understand, that the results that we produce are the best possible.

Some business owners are skeptical when we tell them about the availability of these credits – however, typically anyone that employees people will, on average, find that there are some percentage of those on payroll that qualify for wage-based tax credits. In fact its usually no less than 10 – 15 percent of those that they employ. It really depends, though, on the type of business that they operate, and sometimes, where the business is located. In manufacturing and food service though, as just a couple of examples, these percentages are usually much higher.

More businesses are coming to RetroTax for tax credit administration in this economy. First, because they are hearing about what we do and are wanting to simply learn more. Once we educate business owners to the legitimacy of these opportunities, (as spelled out in IRS Publication 954), it is merely a function of getting the process underway. In any economy, I know of no one that wants to pay more than his fair share in taxes. In times like these though, when we tell a business owner that we can legally mitigate his tax burden, it’s music to his ears.

For more on our tax administration services, visit http://www.retrotax.com/

Franchise Update Story Captures Urban Franchise Development

2009-03-04T05:00:00.006-05:00

In the first Franchise Update issue of 2009, I had the honor of being included in Eddy Goldberg’s story: The New ROI: Return on Inclusion, Franchisors Seek Green Pastures in Urban Concrete. In addition to my quotes throughout the article, http://www.franchise-update.com/, I wanted to share with you a few important passages.

Stan Friedman has for the past two years, chairedf the IFA’s MinorityFran program, launched in February 2006 as part of the Diversity Institute’s efforts to 1) build awareness of franchising within minority communities and 2) increase the number of minority franchisees, franchisors, suppliers, and employees.

“Franchisors are missing the boat if they don’t look at those under-served markets as golden opportunities to create revenues for their business, and at the same time serve the community. There’s a compelling case to be made for coming back to inner cities and to under-served consumers,” says Friedman, who helped lead the Urban Expansion Initiative for Blimpie International in 1998 as vice president of global development.

“There still will be challenges, but real estate is less expensive, the pool of people for jobs greater, and federal wage and tax credits and incentives are available,” says Friedman. “All of the sudden your unit economics and startup costs are much better before you even open the door, compared with suburbia.”

Too many times Murphy’s Law intervenes when franchisees are trying to get new locations opened. Be it a permitting problem, a construction delay or the late delivery of some vital piece of equipment, it seems that there’s always something pushing the projected opening date back. Depending on the timelines and financial strength of the franchisee, this can really cause some painful crimps in one’s style and in many cases put the franchisee under water. A much happier pre-opening scenario might look like this: A franchisee’s new unit is under construction within the boundaries of a Federal Empowerment Zone or Renewal Community. He is at the point where he has begun hiring and because most everyone that will work at his store also lives in the neighborhood, the creation of these local jobs makes him eligible for a personal tax credit of up to $3,000 per year, for each qualifying employee he has hired. With 10-12 locals on his payroll, he could be looking at as much as $36,000 in future tax credits.

“Why aren’t franchisors city bound?” Goldberg writes, “Beyond the downside risks most often cited by reluctant franchisors – security and staffing issues – Friedman says, ‘Maybe it’s just something franchisors haven’t spent enough time thinking through.’”

Many franchisors have not even thought about this process because in many cases, it’s too far outside their box. Take this to the bank… no more can franchisors be reactive in their approach to development and depend on yesteryear’s methods of recruiting new blood to their brands. There are some very viable opportunities for inner city development that can put new faces on old neighborhoods, create jobs that are both wanted and needed and serve consumer needs without their need to travel down the line on the bus to find the services they wished were available to them, a bit closer to home.

In terms of social good, says Friedman, franchising in under-served urban markets 1) will change the landscapes of central cities; 2) provide residents with access to needed goods and services; 3) provide residents with access to needed goods and services; 3) create entrepreneurs in the community; and 4) create jobs for people who live there.

“If you’re serious about your commitment, there are resources available through the IFA to help you plot your course and bring your brand into markets that are under-served, and reach out not only to consumers but to potential franchisees as well,” says Friedman. In the past, he says, it might have been more difficult for a franchisor to make a go of it in a diverse inner city market on their own.

Tax credits and incentives should certainly be considered when considering site selection in the inner city. If a proactive approach to candidate selection makes more sense than just reactively speaking to anyone that wants to talk with you, so does the proactive approach to site selection, as well.

MinorityFran, says Friedman, seeks “to create the playbook and glean the best practices” of franchisors succeeding in expanding into cities, and share that intellectual capital with those who want to try it. That involves relationships with many groups nationwide, including SCORE, local banks, La Raza, the National Urban League, and what he calls “an aggressive outreach initiative” through the U.S. Conference of Mayors.

RetroTax is a proud supporter of the IFA MinorityFran initiative and I am proud to be the Immediate Past Chairman of the IFA Minorities in Franchising Committee and First Vice Chair and a founding member of IFA’s Diversity Institute.

Finally, in the article I talked about National Diversity Solutions (NDS), a Lexington, Ky., based company that works with franchisors and large multi-unit franchisees to help them rework the fabric of their supplier channel to reduce costs and introduce diversity. The NDS mission is a no-brainer. Just as MinorityFran has aspired to make the business case for diversity and inclusion, such is so with NDS as well. Their mission is to simplify supply chain diversification and economic inclusion while reducing costs, increasing service levels and promoting a company's commitment throughout the minority community.

At RetroTax we are in the business of identifying and administering wage-based tax credits for businesses that either don’t even know that these economic incentives exist, or who don’t have the time and resources to administer them correctly, even if they did. Additionally, we are looking for franchise affiliations in each of the markets where such credits and incentives exist. What could be better than finding a minority franchisee to service local businesses in his/her local community and build a business serving neighboring businesses, within the community.

IFA Convention Recap

2009-02-25T05:00:00.002-05:00

Myself with: Dina Dwyer-Owens, CEO of The Dwyer Group, Chairwoman, IFA; Shawn Goldsmith, IFA Don DeBolt Scholarship winner; and Steve Greenbaum, CEO of PostNet and immediate past Chairman of the IFA. As talked about in previous posts, for the past 3 or 4 years, I have been very involved with DECA, an organization that among other things, prepares, mentors and trains high school and college students to become America’s next generation of entrepreneurs. Last spring I had the honor of presenting Shawn Goldsmith, of Oceanside, NY, the IFA’s Don DeBolt scholarship at DECA’s National Convention. IFA invited Shawn to our 49th Annual Convention in San Diego, to get a taste of franchising IFA style. Here, I am showing him around and introducing him to some of the best in the franchising business.

Brian Schnell, attorney for Faegre & Benson, and myself.

Me with: Michael Roman, CFE, Fuels Franchise Strategy Manager of Exxon Mobil Corporation; Shawn Goldsmith, IFA Don DeBolt Scholarship winner; and Fred DeLuca, Founder of Subway.

From my perspective, this year’s IFA Convention was amazing.

First, on a personal note, while I teetered on the edge of losing it toward the third day, I actually managed to keep my voice this year. My apologies to those who might have wished for the alternative… my thanks too, to those that didn’t encourage me to smoke “just one more” cigar at the bar each evening. No names need be mentioned, because you know who you are. (Ron Feldman)

This Convention was very powerful in what it delivered. Jim Bugg, Bill Clinton, and Cary Fiorina all delivered powerful keynotes that basically stated that the future of America is in the hands of small business. Certainly, there are situations and conditions that we can’t control, but if we keep our eye on the things that we can, we will emerge victorious. I believe that is true. Yes, we are living in some very scary times and no doubt, more changes lie ahead. How we manage what we can control though, can and will make a difference.

The economy was, of course, a hot topic at the Convention, for franchisors as well as franchisees. I guess we are each playing the same game on different playing fields. Our franchisees are charged with growing their businesses locally, just as we are with growing our brands globally. At the local level they must seize each and every opportunity to make the most of whatever twists or turns they are confronted with. No different than what most franchisors are confronted with, just that we play our game on a larger playing field. Otherwise, it’s very much the same for each of us.

But despite the bumpy economy, the Convention experience was excellent. For RetroTax, the Convention presented new opportunities for national accounts that we can service; three new prospective franchisees; and a tremendous amount of collective intelligence shared by and with my peers.

With that said, whether using it as a connector to new business leads or as an educational resource, an IFA membership is a good idea anytime, but COMPELLING in times like these. There is no other single event (the annual IFA Convention – 2010 in San Antonio) that can offer so much at one time, in one place across each and every discipline of our business model, to the benefit of everyone in franchising. Operations, Marketing, Franchise Development or Administration: Whether you’re a start-up or legacy brand, there was something for everyone at this Convention.

Besides the convention, there are other IFA events franchisors, franchisees and suppliers alike should attend. For instance, I will speak on behalf of the IFA Diversity Institute and Minority Fran initiative, at the upcoming IFE in Washington, DC, March 20-22, another good opportunity to connect, learn and thrive forward.

RetroTax Adds Third Franchisee in 2008 – Big Plans for 2009

2009-02-18T05:00:00.007-05:00

Me (Stan Friedman) with our newest franchisee, Iraida Bottazzi. Iraida will represent us in Miami-Dade and Broward Counties.

The good times keep rolling, as we are proud to announce that our third franchisee is already rocking and rolling in Miami. Iraida Bottazzi will manage relationships with the Miami-Dade and Broward communities and she provides us with a perfect “fit” in South Florida. Iraida is a tireless, extraordinary networker, has limitless energy, and as a former school teacher, that can educate potential clients to the opportunity available for them to redeem the tax credits that we administer. What’s more, as a native of Puerto Rico, she is fluent in both English and Spanish, a real advantage in the South Florida market, where that is more a necessity, than a luxury.

Iraida’s territory is home to an extensive Federal Empowerment Zone which includes Miami, Homestead and extends into Broward County as well. While Broward offers no Geographic Zone opportunities, it is rich in service businesses and restaurants, rife with opportunities to administer demographic credits for the countless businesses there.

Iraida is the third to join our growing family of franchisees. Our first two franchisees in Atlanta and Cincinnati are both doing quite well. Kevin and Dennis in Atlanta are gaining lots of traction with work already in the door and a very full pipeline. Their fourth quarter prospecting efforts are really paying off in Q1 of 2009. In Cincinnati, Jim, barely out of training, has already landed his first account, which also resulted in a referral to yet another and he too, has a very full pipeline. It just doesn’t get much better than that.

For 2009, it looks like franchisees four, five and six are already on the horizon. Keep your eyes on Chicago, Milwaukee, Washington DC and San Antonio. These markets are all in my cross hairs, with Boston and Buffalo/Rochester not far behind. And our growth won’t stop there. What we look for in our prospective franchisees is someone with strong interpersonal skills, comfortable dealing with high net worth individuals, executives and business owners. Big ticket, longer cycle, intangible sales experience and/or a finance background could be a plus, but the ability to communicate at high levels is the requirement.

As job loss continues to be a by-product of our nation’s economic woes, I would imagine more mid to high-level executives will be turning toward franchising in the next six months. As a white collar, Monday-Friday type B2B concept, appealing to those types of skill sets, RetroTax looks like a perfect fit for many of those displaced executives.

Prospective Franchisees... Where are they Hiding?

2009-02-10T23:58:00.003-05:00

At this week’s IFA Convention in San Diego, one hot topic will certainly be about selling franchises in a down economy. As soon as I hear anyone serving up “selling" advice, I’m on my way to a different session. “Sorry, you have it all wrong.”

Even in this economy, I am still not "selling," just continuing to meet those people who might be right for our concept – based on referrals from friends, existing clients, affiliates and alliance partners. As I have said in the past, networking and developing relationships has proven to be much more effective than selling.

Normalcy, whatever that was, must be thrown out the window in these trying economic times. I can’t rely on “typical” marketing measures to grow RetroTax, Instead, I rely on viral and guerrilla marketing at every level. I don’t use mass media, to speak of, but rather, spread the word one mouthpiece at a time, or via press opportunities as they present themselves.

Franchisors should ABSOLUTELY look outside the box in marketing their concepts in the immediate future. (at least for the duration of 2009 and quite likely beyond) Always know where you are and how to act accordingly. There may have once been a time when just being in the right place at the right time was enough to insure success. Those days, if they "ever" existed, are long gone. Now, you not only need to be in the right place at the right time, but you’ve got to also be aware that you’re there. Then, you’ve got to know what to do about it and have the wherewithal to respond accordingly.

The landscape has changed and along with it, the rules of engagement. Understanding such will help you succeed in these challenging times.

FRANCHISE DEVELOPMENT, Not just about the Sale… It’s more about the Relationship

2009-02-05T09:48:00.003-05:00

Many business people boast of their unique approaches to the sale of their products or services. Not to sound trite, but in the world of franchise development, it should NEVER be about the sale, but rather, about the relationship between the parties. Personally, I have no interest in selling franchises. It’s a new world, a new era and at RetroTax, a concept that I co-founded, and whose day-to-day operations I direct as President, SELLING franchises is a non-starter. No, I am not parsing words, with reference to the difference between “awarding” vs. “selling” franchises. I’m just telling it like it is. To date, each of our franchisees have been personal referrals. That notwithstanding, if a prospective franchisee presents himself to us, but does not meet or exceed our baseline for shared vision, values and ethics, they’re out of here, on the first pass, despite the fact that they may have been referred. That is not just lip service either, it is fact. It is real, it has already happened and it will happen again, I’m sure.

As the IFA Convention approaches, (barely a week away, in warm San Diego) it is important for fellow franchise executives and suppliers too, for that matter, to examine their selling practices. Take stock of this fundamental statement: neither your customers nor potential franchisees want to be “sold.” Rather, each of your prospective clients, customers or franchisees, would prefer that you appeal to a deeper level of connection, communication and relationship between all parties to the potrential transaction as well as to your product or brand.

My own personal experience repeatedly demonstrates that it’s more about relationships. Some of these relationships were built months, years, even decades ago. While some of these didn't provide any quantitative value at the time that they were created, several are now front and center and are intrinsic to the growth and development of my company.

There is actually no better evidence of this than the relationship between my partner and me. It took us more than a dozen years of talking about it, prior to putting our program together and our case study is just the tip of the iceberg. Beyond us, I cite the following:

RetroTax Franchisee No. 1, Kevin is an 18+ year friend and peer, a consummate franchising professional.

RetroTax Franchisee No. 2, Jim was a personal referral from our CPA.

RetroTax Franchisee No. 3, Iraida yet another personal referral, came recommended from one of my most highly valued IFA peers.

Prospective franchisees No. 4, 5, and 6, were also introduced to me via personal relationships, from other IFA peers, one of which is actually the President of yet another franchise concept. To my point, it’s much more about the relationships in franchising, than about the sale.

When you attend the upcoming IFA Convention, think about the relationships that you make, renew or update with new, old and established peers and friends. All of these connections represent opportunities for you to seize the moment, every moment, every opportunity, both real and perceived, with each and every contact that you make or renew. As my partner Al Newcomb so often says, no meetings are bad meetings.” As the old saying goes, “Carpe Diem.” Seize the moment and don’t let any opportunities that are worthy of your consideration, pass you by.

April 15 Knocking; Embrace Your Opportunities

2009-01-28T05:00:00.001-05:00

While most of America files its taxes on April 15^th, there are a great many businesses that file their’s on any of three other quarterly dates throughout the year. However, since April 15^th is traditionally seen as our nation’s filing date, it is important for business owners to understand that there is still time to positively impact the outcome of their tax returns for 2008. In fact, there may still be time to actually reclaim taxes paid for years ’07, ’06 and ’05.

Specifically, I’m referencing the “geographic, wage-based employment tax credit program,” just one of several that we administer at RetroTax. Typically, we examine year-end payroll reports for our clients that send employees to work at sites that are located in Federal Empowerment Zones and/or Renewal Communities, nationwide. Using our proprietary mapping programs, along with other resource tools, we determine how many and which of those employees also live in these Zones, thereby creating tax credit opportunities for the employers. We calculate the credits available based upon the qualifying wages paid to these employees and along with all of the appropriate forms required by IRS, send that data and supporting documentation back to the clients and their accountants, for completion on their tax returns. If business owners have unknowingly left credits from prior tax years on the table, they may choose to amend returns from as many as three prior years and reclaim those dollars as well.

So, what if you’re not in one of these geographic zones? Well, don’t despair, as there are still opportunities for you, too. There are also demographic programs that may qualify you for wage-based credits as well, regardless of where the job sites are, or where the employees may live. We can administer those on a quarterly basis too, perhaps reducing the estimated quarterly payments that one would actually need to make, based upon the annualized dollar value of the credits anticipated.

Now comes the big question that every business owner we work with is interested in knowing: How long does it take to secure these tax credits? The answer to that question is very difficult to pin. Let’s break this question down into a couple of bite-sized chunks. First, with reference to demographic credits: while it is true that this is a Federal program, these credits must be certified by the individual states where the employment occurs. Thus, the answer to the question about how soon you will get the credit hinges upon the efficiency of each state’s certifying authority. That varies widely from state-to-state. We do most of the heavy lifting on our end, interacting closely with those that do your hiring, to be certain that each and every opportunity to certify an eligible new hire is realized, but at the end of the day, how soon those credits are actually certified, is a function of the individual states.

As for the geographic credits, they are realized with far more speed and efficiency, as the criteria for their generation is much simpler. Yes or no: “Does the business send the employee to work in a zone?” Yes or no: “Does the employee also reside in the zone?” Once we’ve documented this information from payroll reports provided by the client and mapped the appropriate address information utilizing our proprietary software, it is a function of creating a comprehensive supporting documentation package and providing that to our client, along with the appropriate IRS forms, for inclusion in their tax returns.

It is not too late to benefit from these tax credit programs for 2008. In fact, now is the time to jump on this and see just how much you may be eligible to claim. Remember, until your 2008 tax return is filed, we can actually research and potentially still have a positive impact on prior years ’07, ’06, and ’05 as well.

In any and all cases, what we offer are non-traditional administrative functions that most CPA firms do not provide. We are “SPECIALISTS IN THE ADMINISTRATION OF STATE AND FEDERAL WAGE-BASED TAX CREDIT PROGRAMS.” As such, we work closely with you, your Finance/HR professionals and CPA/accounting professionals to get the mission accomplished. Business owners should think outside the box in this economy. These tax credits provide an often overlooked and unrealized opportunity that many business owners should claim. We will be happy to fill you and your resource team in on the particulars. I’d be happy to hear from you personally at stan.friedman@retrotax.com

IFA Convention Less Than One Month Away

2009-01-21T05:00:00.003-05:00

As you probably read on my previous blog post regarding Franchise Expo South, I am convinced that franchising will rebound from our tough economic situation more quickly than many other market segments. Still lots of rocky road ahead, but hopefully, this prediction will be shared by others in San Diego, at the upcoming annual IFA Convention.

This is going to be a compelling year for new ideas to come to the fore, regarding the growth and development of franchised businesses. These challenging economic times make attendance at this year’s convention all the more compelling.

Start-up franchisors – IT IS ESSENTIAL FOR YOU TO ATTEND THE CONVENTION. Once you are registered, start your planning. Use the Convention as your opportunity to get focused. This conference has gotten too big to just attend without an action plan. Tailor your plan around learning during the concurrent educational sessions and networking on the floor of the tradeshow. Don’t leave anything to chance with reference to connecting with and speaking to those who can most positively impact your business. The days of just running into the right people at the IFA are gone. Anymore, the convention is just too big to go and just "hope for the best."

Established franchisors – this applies to you, too. It’s a whole new world out there and you want to maximize every opportunity to positively return your investment of time and money.

Last word in these challenging times, for ALL franchisors, regardless of size or maturity of your brands, I invite you to make yourselves rockstars to your franchisees by offering them the opportunity to glean the benefit derived from the tax credits that RetroTax administers. By telling your franchisees that “but for the fact that you’re one of our franchisees, RetroTax would quite likely never have known about you or your business... and that because of that, RetroTax will perform these services at the single unit level, something that is usually available only to much larger businesses.” Feel free to email me (stan.friedman@retrotax.com) to schedule some time to talk, either at or before the Convention. I am looking forward to making many new friends at this year’s IFA, as well as seeing all of my long-time associates from all over the world of franchising.

Miami Franchise Expo Shows Traction, Despite Economic Woes

2009-01-14T05:00:00.003-05:00

After attending last weekend’s franchise expo in Miami, I am pleased to report that franchising is still alive and well, as demonstrated by the strong attendance, and of course 80 degree temps. with sunny skies and low humidity didn’t hurt.

While the country is still in the throes of a credit squeeze and deepening recession, none of that seemed to get in the way of robust crowds in attendance at both the educational sessions and crowded floor of the show on Saturday. That said, let’s keep it real. Everyone is still nervous about what ’09 will bring and how long the economy will remain sluggish. (quite likely until the banks start loosening up their purse strings) Make no mistake though, there is no shortage of SBA guaranteed funds available. Rather, there is however, a stubborn, hoarding of cash, as banks just refuse to make loans and release funds.

On the networking side of things, I was able to enjoy some great success for RetroTax. I made many new contacts for business, both for our core services as well as referrals for franchisee prospects – and yet another, FROM OF ALL PLACES, ANOTHER FRANCHISOR!

This year is going to be tough, though, for everyone. If there's a bright side in the equation, it is that the extensive job loss our nation is facing should lead to stronger franchisee development. The credit squeeze more than the recession, is what's adversely impacting us right now. I believe that most are confident that once the second half of the TARP money gets released, the economic stimulus should start heating things up again.

Business in ’09 will not, cannot be done like it was in years past. There will be winners and there will be losers. The difference, in large part, will be determined by how one plays his hand. Let me hear from you with your thoughts.

Readers, what did you think about the expo?

DECA Student Earns All 121 Scout Merit Badges – A Nearly Unprecedented Feat

2009-01-09T05:00:00.004-05:00

When my phone rang at about 6pm on New Year’s Eve, the Caller ID said “unknown caller,” I hesitated before answering. But then I thought, “What telemarketer would be making calls now?” I took the call and to my surprise, I was glad that I did. It was Shawn Goldsmith calling.

Who, you ask?

Well until last spring I would have asked the same question. When I met him, Shawn Goldsmith was a remarkable, 17-year-old graduating senior at Oceanside High School, on New York’s Long Island. We met last April, when I had the privilege of representing the IFA at the DECA International Career Development Competition (ICDC) at Atlanta’s Georgia Dome. IFA invited me to present the award of their Don DeBolt scholarship to its 2008 winner, on stage and in front of a crowd of 18,000 at the Georgia Dome, as part of DECA’s annual Main Event. That winner was Shawn Goldsmith. (See more about DECA and the ICDC in previous blog posts or at www.deca.org)

Now, let’s fast forward the tape to Shawn’s phone call to me on New Year’s Eve. Was he just calling to wish me a happy new year? Well, sort of, but it was more than just that.

It was with incredible pride and enthusiasm that Shawn explained that he had achieved yet another amazing feat and wondered if I had seen or heard about it on the news. Seems that this young guy, now a freshman at NY’s Binghamton University has once again achieved something that few before him have accomplished. Shawn, a long time Boy Scout has gone on to the ranks of Eagle Scout, which in and of itself is an achievement to be proud of, but hardly remarkable. What is almost unprecedented though, is that while it takes 21 Merit badges to achieve Eagle Scout status, Shawn did not stop there. In fact, he achieved all 121 Merit Badges offered by the Boy Scouts of America, something that the local arm of the organization called, “an almost unheard of feat.” Now, that IS remarkable.

Given the news we seem to wake up to each day, telling us what's wrong with America, I proudly share this story with you here. Remember the name Shawn Goldsmith. This young man is a symbol of what’s right with our country. If you can think it, you can do it and Shawn provides clear and living evidence of that. I don’t know where or when you may hear his name again, but given his accomplishments to date, I'm confident that it will be sooner than later. Congratulations Shawn and Happy New Year to you too.

Franchise Expo South This Weekend

2009-01-08T07:41:00.001-05:00

This weekend I will be heading to Miami for the Franchise Expo South. South Florida in the middle of January? Who could ask for anything more? I am most looking forward to seeing my extended franchise family, representing IFA as moderator on two panels, and did I mention being in South Florida in the middle of January?

While the expo, on the surface is designed to help franchisees find the right franchisee opportunity, I, along with many of my peers, use it as a networking opportunity, as well. I always make a point of connecting with as many people as possible. For new franchisors, make sure to take notes on the back of every business card you collect, with reference to the action item associated with it – and then, of course, be sure to follow-up on those commitments on your first day back at the office.

For those of you attending, you might find interest in the two panels I am moderating: Opportunities in Franchising for Minorities and Women, part one at 11 a.m. – 12:30 p.m. Saturday, January 1, followed by part two from 1 p.m. – 2:30 p.m. in room C221. I will be moderating this session with the help of John R. Reynolds , President, International Franchise Association’s Education Foundation; LaShawn Cartwright, Sr. Recruitment Consultant, Chick-fil-A; Alberto Eyzaguirre, Operator, Chick-fil-A; Russell Phillips, Market Development Manager, ServiceMaster Clean; Jesus Martinez, Franchisee, ServiceMaster Clean; Jose A. Negroni, Lender Relations, Small Business Administration -- Miami District Office.

In an increasingly competitive marketplace for franchise candidates, savvy franchise systems are aggressively seeking qualified entrepreneurs from both the minority and women’s communities to represent their brands. This seminar will help you understand: Pitfalls to avoid; Financing options; How to overcome stereotypes; Mastering the franchisor/franchisee relationship; Specific ethnic markets; Non-traditional franchising opportunities; Legal considerations: Who owns what? Who is responsible for what?; and how to learn what questions to ask yourself first: Am I really cut out for this? How long do I plan to do this? How long can I live without an income? Gain insight into where the opportunities lie.

I look forward to seeing you there.

RetroTax® Continues To Sign Franchisees – RECESSION? NOT HERE!

2009-01-07T05:00:00.000-05:00

Franchisors across the nation are struggling with the current state of the economy. It is rough out there for many franchise concepts as leads are few and far between. For us, however, we continue to progress forward. I have said it before and I will say it again, the recession is not affecting the pace of our business growth, because of the business model we have put in place. While the services we provide make sense in any economy, they are nothing less than compelling in times like these.

This week we launched our Cincinnati, Ohio, franchise location. We are very proud that Jim Dahl joined our family to represent RetroTax in Cincinnati. Jim has been a sales professional since graduating college in 1987. From his humble beginnings, working 80 hour weeks in route sales, to more recently managing 26 direct reports in a three-state territory for a wholesale wine importer, Jim has both the people and management skills necessary to drive our business.

Another interesting angle on Jim is that he is a commuter franchisee. Jim and his wife Tina live in Indianapolis with their two children. However, Jim will make Cincinnati his “second home” and service the business community there. He will focus on the Cincinnati empowerment zone, which includes Hamilton, Ohio, just 20 or so miles north, and the I-74 corridor from the Indiana state line to Cincinnati. While this corridor is not in a geographic zone, there should be a great many opportunities to provide demographic credit services to vast numbers of businesses in this region.

With Jim joining our team, and yet another new franchisee (soon to be announced, stay tuned to the blog), we are growing according to schedule. Our Atlanta franchisees are doing great. They are heads down and busy stirring it up in Georgia. They have ended 2008 with new clients already secured and are actively engaged in establishing many new relationships already, for 2009.

The reason we, and our franchisees will continue to do well in recession, is because businesses need us now, more than ever. It’s not business as usual out there. Many companies that thrive in a strong economy are looking for ways to offset the slowdown in consumer spending. Many companies that are experiencing shrinkage in their top lines are looking all the harder for ways to maintain their bottom lines. Beyond the obvious plays like reduction of overhead and expenses, our core services offer an incredible opportunity to provide dollar-for-dollar tax credits against the tax liabilities of the business, and in many cases, the personal tax liabilities of its owner(s).

Our concept thrives in this economic state. Not all franchise concepts do. Franchisors, and all business owners for that matter, must get focused, get proactive, and get outside the box. Don’t let yourself become a victim of changing times. Make whatever adjustments are necessary and move forward. One such adjustment could be to take full advantage of any and all credits and incentives that the government makes available for you. Think of it as “your” answer to the bailout, only this one is designed for the driving force of the American economy, small and medium business enterprises.

It’s a New Year – More Changes to Come

2008-12-31T05:00:00.001-05:00

Now that we are rapidly approaching the end of yet another year, it’s time to start reflecting back on 2008. What a year of accomplishment we have enjoyed at RetroTax.

As President of RetroTax, my pride comes more from the title of co-founder than that of President. I am extremely proud of what my partner Al Newcomb has empowered me to create and of the relationships that we have already had the good fortune to enjoy. Be those with teammates at our offices in Indy, prospective or recently granted franchisees, or those for whom we provide services and/or do business, with all over the country. 2008 was an incredible year and we’ve only just begun.

Specific to our business, tax credits are evolving more now than ever, and we pride ourselves on being positioned to scale up to do even more for our clients, in the years ahead. As the Obama Administration and the new Congress take hold, we will see how and where they move with reference to an even further commitment to tax credits and incentives. Remember, over the years, our business model has grown under the leadership of both Democratic as well as Republican leadership. There is very strong bi-partisan support for the credits that we identify and administer for our clients. So, we see much more opportunity ahead as we move even further into the 21^st century.

For RetroTax, 2009 will be a big year and each and every day will bring change. We are a young, emerging concept, building new metrics as we continue to expand. With that growth will come evolution and members of our team will grow with us as well. Some will continue doing the jobs they do now, while others will move into new positions. This will make way for new people to join us and backfill those already existing posts or take on new opportunities that are fostered by our expansion. These are exciting, if not turbulent times to be growing a business, but you know the old saying, “what doesn’t kill us, makes us stronger.” At RetroTax, we're feeling stronger every day.

For franchising, as a whole, 2009 will bring rocky roads for some and brilliant opportunities for others. While some of this will be purely circumstantial, not everything can be blamed on politics, the economy, or the state of the world. For those that rise up and embrace change, there is an impressive opportunity to build wealth and legacy, albeit in some extraordinarily challenging times.

While most are forecasting that it will be 2010 before we see signs of economic recovery, hopefully things will begin to settle down in ’09. Personally, my modus operandi is to not spend a great deal of time pondering that which I cannot control. So, instead I will keep my eye on those things that I can influence, and therein lies the opportunity to grow our business, no matter what’s going on globally. Personally, I am very much looking forward to the opportunities that lie ahead for the RetroTax team in 2009.

For Further Education, Franchisors Should Follow the Media

2008-12-24T04:55:00.002-05:00

Throughout my career in franchising, I have become a dedicated news junkie, especially when it comes to news that pertains to franchising. In many ways, this has contributed to my continuing education. By reading and absorbing news, I have been able to generate new ideas for conducting better business as well as assisting with the development of better methods and best practices for growing the concepts I have represented.

Both newbies and established franchisors should never turn their heads away from the opportunity to absorb more education. For franchising information, I read several online resources through LinkedIn, as well as other Web-based industry standards like Franchise Times, IFA Smart Brief, Franchising.com and Bison. Additionally, for news AND commentary, I check in pretty frequently with sites like Franchise Chat and Blue Mau Mau.

Personal media outlets also get my mind rolling. My all-time, overall favorite media portal has for years been The Drudge Report. Even though Matt Drudge has become more mainstream in more recent years, he is still cutting edge in terms of breaking news “long” before most mainstream outlets even get a sniff of the stories he sheds light on.

My wake-up call in the morning is syndicated radio bad boy, Don Imus. (IMUS in the Morning…check for local station listings at WABC Radio. I am mostly a talk-radio and TV junkie with an ear toward Boortz, Hannity, Limbaugh, O’Reilly, and Dr. Bill Bennett and of course, Imus. From the other side of the aisle, I tune in regularly to Chris Matthews, Keith Olbermann and even Rachel Maddow, for the other side of the coin. For some lighter entertainment, I’ll catch occasional podcasts of George Noory’s Coast-to-Coast AM to hear what the “conspiracy theorists” are espousing as the “plot of the day.” Don’t just listen to what you agree with. You will learn a good bit more by listening to ALL points of view, not just the one that you may embrace.

My point in presenting you with my daily media routine is to encourage you to follow the media. Become ingrained in it, as the media can get your creative mind flowing with ideas for growing your franchise. For new franchisors, the IFA Smart Brief and Insider, Franchising.com, and Franchise Chat are great tools for daily chatter. For more in-depth resource news and tools, look at Franchise Times, Franchising World and Franchise Update. All three are must reads for me.

RetroTax Continues Social Networking Expansion

2008-12-17T05:00:00.000-05:00

What is your franchise concept doing in the Social Networking/Social Media atmosphere? If you aren’t connected, you certainly should be.

In the last year, I have created this blog. I have also entered the world of LinkedIn (many franchisors and suppliers are in this network) and have connected to several other communities that are subsets of LinkedIn, pertaining to diversity, franchising, and certain cities of interest around the country.

I cannot count the number of new relationships that have been born out of the online and face-to-face communities that I have become involved with in the past year. It’s viral in a good sense and quantum in the results that it provides to me.

Best I can tell, Franchisors are not as connected as they should be. Just this past fall, at the Franchise Update Leadership Conference, I mentioned blogging during the CEO Summit and every head in the room turned my direction, curious as to why and what I was doing in that virtual universe.

Blogging, no doubt, has helped build the RetroTax brand in the virtual atmosphere. It also has established a cultural link to both me and my brand for those who have just been introduced to us. It helps us capture moments in time that would otherwise be lost. It allows us to broadcast our moves and news globally without relying on a third party (such as the media) for all distribution. It has allowed us to gain a competitive edge in the world of franchising, as well.

In the years to come, do I see social atmospheres as the future of franchise lead generation? Yes I have. Yes I do. Yes I will. These environments may never drive the kinds of number that portals or paid advertisements might, but from a quality perspective, they cannot be beat. What are you doing with Social Networking/Social Media outlets? I am curious to hear from you, and/or, share more with you about what works for me. Feel free to reach out to me via email at stan.friedman@retrotax.com or leave a comment on this blog. I will surely respond.

Business Owners Still Have the Opportunity to Impact their Bottom Lines for 2008

2008-12-10T08:37:00.002-05:00

As I have said before, RetroTax will do well in good times, but will also thrive in a down economy. The reason? We help businesses benefit from tax credits that in most cases, were completely unknown to its principals. When we approach potential clients, small or large, be they large businesses or or franchise concepts or units, the initial reaction to what we proffer, is incredulity. More times than not, CEOs, CFOs, and SVPs as well as entrepreneurs and unit operators respond with, “You’re kidding, right?” Once we educate them on how to capitalize on these credits and they begin to understand just how easy it is for them and/or their franchisees to benefit from these credits, it becomes a “no-brainer.”

Anyone who employs people should be taking full advantage of these wage-based tax credits to optimize their financial picture, no matter where their business is located. But, for those fortunate enough to be located in one of those geographic zones that the government has designated as a Federal Empowerment Zone or Renewal Community, well they shouldn’t just stop at ’08. What about ’07, ’06, and ’05? That you see, is why we call ourselves RetroTax. Everything we do starts with a look back. In fact, in these aforementioned geographic zones, qualified clients can amend returns from the past three years and actually reclaim taxes that they have overpaid, for not claiming eligible credits for those tax years in real time.

What we do is turn back the clock for them and revisit those three previous years from the current open tax year and assist them with recapturing as much as $3,000 per year, per qualified employee on their payroll. Better still, in many cases, these credits pass through to the owners of the business as PERSONAL tax credits, offsetting their PERSONAL tax liabilities, with carry forward opportunities that last for 20 years. So, plainly stated, unless, and until, our client’s 2008 taxes are filed, we can go all the way back to 2005 and recapture past opportunities to benefit from these credits. In tough times like these , what a difference that can make for the owner of a small or medium enterprise.

While April 15 is tax day for most of us, there are many businesses that file on one of the other quarterly deadline dates throughout the year. So, if a client files ’08 return s on April 15th, opportunities to recapture credits for 2005 are forever gone, once that '08 return is filed on April 15^th. But for a company that files their '08 return in August or on October 15, recapturing taxes that were paid for as far back as 2005 still remains an option, until that ’08 return is filed. The long and short of it is this; once '08 is filed, '05 goes off the table with it and then 2006 is as far back as we can reach on a retroactive basis.

In a nutshell, many companies, including small business owners, have tax credits that go unclaimed. I encourage you to reach out to us, or one of our franchisees and learn more about how to avail yourself of these opportunities. Or, simply visit us online at www.retrotax.com.

Temple Daily Telegram Highlights Minorities Rise in Business

2008-12-03T05:00:00.004-05:00

Let's hear it for Texas. Some might argue that it is still the Wild, Wild West and a less progressive state than others, but when it comes to minority business ownership and job creation, many of those others could take a lesson from the Lone Star State.

Carroll Wilson's article, titled “Small business, minorities in b usiness on the rise in Texas in the Temple Daily Telegram,” is cause for celebration.

America's face is changing and as it does, so should the faces of America's would-be entrepreneurs and business owners. They should reflect the faces of the residents of the communities that they serve. From the sounds of this article, health care and social services are taking the lead in terms of jobs created by small business owners. Now, savvy franchisors from these and all market segments would do well to invite business ownership, not just opportunities for employment, from members of these communities.

To read more about minority franchise ownership opportunities, visit the International Franchise Association (IFA) at http://www.franchise.org/ and search for information regarding Minority Fran. As the second term Chairman of the IFA's Minorities in Franchising Committee, First Vice Chair of its Diversity Institute, and one of the architects of this Minority Fran initiative, I'm proud to see Texas out in front on this one.

Did You Know You are Missing Money?

2008-11-26T05:00:00.005-05:00

While there are billions in tax credits and incentives available to business owners each year, only a fraction are claimed. As we approach the end of another year, business owners should become better educated on what tax credits are available to them and how to collect them.

Tax credits are issued by state and local governments for a variety of reasons. As it pertains to the work that we do at RetroTax, these are employment or wage-based credits that are offsets to a business owner’s personal or business taxes. These credits are earned for the jobs that the employer has created for certain demographic groups or because the place of employment and the employees residence are located within one of nearly 200 geographic zones that the Federal government has slated for development.

The demographic credits are “one-time” events per new hire and can be equal to as much as $9,000. The geographic credits can be worth as much as $3,000 per year, per qualified employee and can actually be recaptured from the past three years (thus our name, RetroTax). Most everything that we do at RetroTax starts with a look back, then ahead. More about these credits and their values can be found on our Web site at http://www.retrotax.com/ under the tab titled “services”.

Over recent years, some notable tax credits have been added, especially for those businesses in areas where Mother Nature has taken a swipe at us and left victims of storms such as Katrina and Wilma and more recently, the floods in the midwest.

As for who can collect tax credits, who ever said that size matters? Most business owners, regardless of size, employing people that are not immediate family, may benefit from these credits. The point is, no matter how big or small your company, you should not pass up the opportunity to at least explore how much money you are missing by not redeeming these credits.

Again, for more information, visit http://www.retrotax.com/

Youth Movement Will Be Interesting

2008-11-19T05:00:00.007-05:00

To my surprise, with no pushing or prodding, completely on his own, my son shocked me this fall, when as a high school senior, he told me that after years of hearing me pontificate, (to no avail) he decided to join DECA. He made me extremely proud, both of him and his decision to join legions of other young visionaries who will lead America's next wave of marketing and business professionals.

During my years of involvement with DECA as a judge, mentor and advocate of their national advisory board, I've met many DECA kids that blow me away with their appetite for knowledge, initiative, and an uncanny instinct for business. I've also met those who are still "testing the waters" and “just want to chill”. I think each matures at his/her own speed and accordingly find their own watermarks at the appropriate times.

Those kids that are driven to climb to the top, will potentially have a great impact on franchising. Franchising has always struggled with generational issues and legacy. Often, great “first generation” franchisees retire and leave the business to the next generation that may (or may not) possess the same level of commitment and/or passion for the franchised business. With the impact that today's DECA is having on higher education and creativity, today’s youth will, I hope, step in, step up and innovate the business model of franchising in the years ahead.

Another trend, that has been highly publicized in industry trades, is the “youth movement” that is afoot in franchising. I for one, have not just seen a lot younger applicants recently, but older, as well. Gen Y is certainly on the rise and there are many new concepts that lend themselves to the younger set. As we continue to slide into what certainly appears to be a deepening recession, I think too, that more and more boomers might try getting out of the stock market (if they still can) and reinvest what's left of their 401, 301, or hopefully not 201 (K's), into franchised businesses that they can control and protect, rather than sticking it out on Wall Street and praying for miracles.

For those boomers that do jump into franchising, there will still be the need to be reliant on our youth, to help operate their businesses. Organizations like FBLA, SIFE and my personal favorite, DECA, all provide incredible platforms for real-world experience for today's kids and tomorrow's business leaders. I am really looking forward to seeing how DECA helps shape my son's future interests and where my son and his peers go with their careers. While times are certainly changing, let's always remember that change is certain... GROWTH, is optional.