minorities
interested in franchising and franchise companies interested in diversifying
their operator base. Tools and contacts are offered to help both
groups along their way. And there are incentives for anyone willing
to open a store in an under-served community. Still the most important
aspect of MinorityFran is awareness. According to IFA Diversity Institute
Chairman Ronald Harrison, one of the program’s main goals is
to “send the message to all communities that franchising is
a smart and affordable way to realize the American Dream of small
business ownership.”
To date, more than 100 franchising companies have signed up, including
35 in the quick-service segment. Longtime Nashville favorite Barb-B-Cutie is going international. The family-owned, eight-unit chain signed a 20-store, master-franchise deal with Spanish operator Family & Friends, S.L. in August. The first unit under the agreement opened inside a Valencia shopping center in November. A second is scheduled to open by year’s end. Barb-B-Cutie attributes the speed at which it has been able to open its Spanish stores, in part, to its master franchisee’s family connections. Fran Baena leads Family & Friends, and came across Barb-B-Cutie while researching American quick-serve brands online. He considered 42 concepts before approaching choosing the Music City icon. Barb-B-Cutie’s agreement with Baena calls for Family & Friends to develop a mix of company stores and single-store franchisees. The goal is 20 stores by 2016. Madrid and Barcelona will also be targeted.
The introduction of a new prototype and a new focus on expanding beyond its West Coast core markets drove El Pollo Loco to debut its Franchise Restaurant Opening Group (frog) in 2006. The cross-functional team is dedicated solely to helping franchisees navigate through the planning and paperwork associated with opening a new store. Assistance begins with a signed development agreement and ends once things are rolling along smoothly. El Pollo Loco credits FROG with streamlining the opening process and improving communication between corporate and franchisees. A December 2005 opening in Chicago, El Pollo Loco’s first east of the Mississippi, was used as a testing ground for the FROG concept. Success in that venture convinced the brand to make FROG a permanent part of El Pollo Loco operations.
Guatemalan-based Pollo Campero made a big splash in 2002 when its debut U.S. store took in $1 million in its first seven weeks. Almost five years later, the brand is continuing its steady growth across the States. At last count there were 11. ADIR Restaurants Corp. is Pollo Campero’s sole U.S. master franchisor and holds the rights for six western states, After three years of internal growth, ADIR signed its first area agreement in September with Richard Anderson, CEO and owner of Southern Foods PC, LLC. Anderson is an experienced franchisee who spent several years with the Quiznos and Wienerschnitzel systems. ADIR’S deal with Southern Foods is a multi-million dollar one that includes five restaurants—four in California and one in Arizona. The first is scheduled to open in Spring 2007.
IdeaFarm is a brand development and marketing services firm that specializes in franchise growth. In 2004, its team set out to remind would-be franchisees that smaller chains can also provide profitable opportunities. An e-book featuring the brands was compiled. An updated version, Best Undiscovered Franchises, Vol. 2, was released in January 2006. Six quick-serves were included: We’re Rolling Pretzels, Manny & Olga’s Pizza, Newk’s Express Café, Parrot Pizza, Sheridan’s Lattes & Frozen Custard, and Zantigo Mexican. Featured companies were chosen based on operational systems, consumer appeal, growth potential, corporate culture, and management philosophy. The downloadable e-book is available free online at www.IdeaFarm.net.