On Nationwide Tour of Zoned Tax Credit Cities, Milwaukee Impresses

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

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

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

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

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

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?

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