Franchising

Best Doing Well By Doing Good

Little Caesar Debuts Vet Program

A USA Today story about Army Staff Sergeant Robbie Doughty who lost both legs in a roadside bomb attack in Iraq in 2004 led Little Caesar’s founder Michael Illitch on an unexpected path to honoring veterans.

“I was so impressed by his courage, commitment, and upbeat attitude in the face of adversity, that I wanted to do something,” Illitch says. “Offering him a new career path in his hometown seemed like a good transition.”

On February 1, 2007, Doughty and fellow veteran Lloyd Allard opened their new Little Caesar’s store in Paducah, Kentucky, provided by Illitch as a turn-key operation at no cost to them.

“Opening a business and becoming an entrepreneur will definitely be an exciting new chapter in my life for my family and me,” Doughty says.

As a result of the experience, Illitch implemented the Little Caesars Veterans Program that provides qualified, honorably discharged veterans who are eligible with a benefit of $10,000 and service-disabled veterans with up to $68,000 for opening a franchise. The program has generated over 1,000 inquiries since inception and held its first training program for six new franchisees in the spring of 2007.

Best Franchise Deal

Johnny’s Lunch Signs 125 Unit Agreement

Once Anthony Calamunci, president of 71-year-old Johnny’s Lunch, decided the time was right to franchise, he went all out. Johnny’s claims the title for the largest initial franchise development deal with a 125 unit agreement with Michigan Group, JBV, LLC.

The deal with Michigan Group was signed in January for 75 units and expanded to 125 in the fall. Michigan Group’s area will include the entire state of Michigan.

With only 3,300 hot dog–oriented quick-serves operating nationwide, setting more large-scale franchise deals should be no problem for Toledo, Ohio-based Johnny’s Lunch.

Johnny’s should have up to six franchise locations open by the end of 2007, with an additional 30 to 50 opening in 2008. Add to that another 17 company-owned stores over the next 12 to 18 months and there is little doubt Johnny’s will be serving lunch to a lot of customers.

Best Use of Visual Aids

Bar-B-Cutie’s Online Introduction

In an age when MySpace and YouTube are part of the everyday lexicon, Bar-B-Cutie’s decision to introduce its concept to potential franchisees via online video seems natural.

Available on its Web site, My Space, and YouTube, Bar-B-Cutie’s franchise video introduces potential franchisees to the product, existing franchisees, and store layouts.

“The use of our online franchise video has changed the way we do business,” says Director of Marketing Christie McFarland. “Instead of our franchise development team spending countless hours on the phone answering common prospective franchisee questions, the video does that in less than four minutes.”

In addition to franchise inquiries, McFarland says Bar-B-Cutie receives comments from MySpace and YouTube viewers who have never heard of the concept. Building that kind of brand awareness with the general public is sure to attract even more attention from potential franchisees.

Best Franchise Opening

DQ Grill & Chill Franchisee Sets Record

Signing on as a franchisee in uncharted territory is risky. Signing on where the last unit of the brand threw in the towel 20 years prior is more risk than most would ask for. But DQ Grill & Chill franchisee Gregg Todd is taking on Alaska and setting records in the process.

“We are thrilled to have opened the first DQ Grill & Chill in the area,” Todd says. “Dairy Queen customers will love what we’re bringing to Anchorage.”

The Anchorage unit, which opened in July 2007, posted double the first-day sales record of any DQ Grill & Chills and broke the first-week opening sales record in the first four days. Todd opened a second unit in Palmer in August and plans to build the DQ Grill & Chill brand throughout Alaska.

“It’s ironic that the location that opened with the highest sales ever for the treat category leader is in Anchorage,” says Todd. “Who says we don’t love our soft serve in Alaska?”

Best Option for Part-Time Restaurateurs

Franktitude Makes Ownership Easy

Miami-based gourmet hot dog concept Franktitude launched itself into the franchising world this year by targeting the U.S.’s growing pool of highly liquid corporate refugees, entrepreneurs who need a new career, but have little experience beyond the world of Big Five firms.

“Franktitude was created by somebody without any restaurant experience,” CEO and founder Ari Wurmann says. “I created something that is simple to manage and doesn’t require a full-time commitment.”

Restaurant operations experience isn’t necessary. Franktitude employs no major piece of cooking equipment. Most toppings are delivered pre-packaged. And the central dish is the hot dog.

Wurmann is more concerned that franchisees are committed to employee satisfaction than whether they plan to be in the store all day. For those looking to make the switch from corporate life to culinary life, opening a Franktitude involves an average investment of $190,000. The first franchisee-owned location opened in a Southwest Dade County mall this summer. Two more franchise units will open in early 2008. The goal is to add 20–25 new franchise units a year.