Is there hope in downsizing?
Franchise developers at Marco’s Pizza hope that union workers bought out by the country’s automotive giants think so.
Where the rest of the country sees an automotive industry on the slide, Marco’s Pizza sees Detroit’s struggles as a chance to offer a second career to union workers as well as grow a brand entering its third year as a franchise.
“Many of these folks are getting downsized but with a pretty good buyout settlement,” says Marco’s Jack Butorac, who has set Marco’s on a course to open 500 stores by 2010. “They are too young to retire and are looking to parlay their savings and settlements into a new career. This should let them have some control of their destiny.”
The idea that Detroit–in the heart of Marco’s Midwest roots–was about to send thousands of professionals into unemployment inspired Butorac’s company to see if it could partner with the United Auto Workers to make the move less painful.
The potential franchisee from the UAW’s ranks has about 12 to 20 years’ experience in the automotive industry. They’re responsible, have ambition, and want to make sure they have a say over their next line of work, Butorac says.
Since the pizza brand announced its UAW partnership in late November, Marco’s has fielded hundreds of inquiries from auto workers interested in learning about the brand, which was founded in Toledo, Ohio, in 1978. The list of incentives is specific to the auto industry personnel. Butorac says it shows the brand is committed to helping the UAW’s members shift smoothly into their own entrepreneurial enterprise.
Of course, all of those inquiries won’t translate into a franchise agreement, but interest has been keen to see what Marco’s has to offer.
Top among the list of incentives is a reduced franchise fee, which according to the Marco’s web site is typically $17,000. The company has waived costs for store construction management and has offered a rebate of up to $5,000 in the franchise fee if there are any relocation costs involved. To help others who might have a harder time transitioning, Marco’s will give 20 percent of all royalty fees collected from UAW franchisees to the UAW’s training and re-education fund.
When he was in college, Butorac helped pay for his education by working in a meat-packing plant. As such, he is a union guy. He understands the union system and developed a respect for workers in a union shop.
“I certainly have fondness and affection for the people in that industry,” says Butorac, Marco’s president and chief executive officer. “We know that we are in a position to grow our franchise program and certainly have some opportunities for them.”