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

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

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

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

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

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

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

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.”