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NY Times shops Red Sox stake as revenue falls.
The Boston Business Journal reports that the New York Times Co. has retained an investment bank to explore the possible sale of its stake in the Boston Red Sox on the heels of a dismal year that saw advertising revenue for it New England Media Group, which includes The Boston Globe and Worcester Telegram & Gazette, fall by 18 percent.
In a separate report by media researcher The Nielsen Co., The Times last year saw a 6 percent drop in unique visitors to its Boston.com Web site, the online home for the Boston Globe. Boston.com was the only Web site among the country’s top 10 newspaper sites, ranked by traffic, to see a fall in unique visitors in 2008, Nielsen said.
The Times (NYSE: NYT) said it has retained Goldman, Sachs & Co. (NYSE: GS) to potentially sell the company’s interest in New England Sports Ventures, which includes equity stakes in the Sox as well as Fenway Park, real estate adjacent to the park and approximately 80 percent of sports broadcaster New England Sports Network.
The Times invested in New England Sports Ventures in 2002.
The Times said its New England Media Group posted $319.1 million in ad revenue in 2008, an 18 percent slide from the $389.2 million posted a year earlier. For December, the group booked $23 million in ad revenue, off 18.2 percent from the $28.2 million booked in the 2007’s corresponding period.
Declines in ad revenue at the New York Times Co.’s major newspapers, including the Boston Globe, accelerated in January compared to December, company CEO Janet Robinson said in a conference call Wednesday.
Franchise Breeds Cautious Optimism
It’s 11:30 on a Monday morning, and Karim Menebhi is waiting for the first customer at his brand-new Ronzio Pizza & Subs franchise in Smithfield.
Menebhi has been busy — loading boxes of supplies onto shelves, talking on the phone to suppliers. Now he’s getting a little nervous. “I was feeling just normal until about 20 minutes ago,” he said. “Now I’m feeling that I need to see some people walk in and start serving them some food.”
Finally, about 11:40, the elusive first customer arrives. He’s Ryan West, who manages a karate school, Mastery Martial Arts, in the same shopping plaza as the new Ronzio. West orders a chicken sandwich. He also represents a potential source of future business, telling Menebhi that his martial arts school frequently hosts birthday parties for its young clients. Menebhi said he could provide discounts on pizza, and West took some Ronzio menus with him when he left.
Ronzio is a local chain, with 19 locations in Rhode Island and 1 in Massachusetts. Julian Angelone, chief operating officer for the company, said it’s opening a second Massachusetts location, in Worcester.
Read the whole story at Providence Journal
Coffee News Announces New Ownership
Franchising in New England announced that NEFA Member William (Bill) Buckley of Bangor, ME and President of Coffee News USA, Inc. announced the purchase of the parent company and owner of intellectual property rights for the Coffee News franchise system, 2703203 Manitoba, Inc., located in Winnipeg, Manitoba.
Bill has operated the company under a Management Continuity Agreement since March 1, 2006, when founder, Jean Daum, became serious ill with cancer and died July 23, 2007.
Jean Daum founded Coffee News October 22, 1988 in Winnipeg, MB. After placing her lunch order, Jean resorted to reading the information on a sugar packet out of sheer boredom. It dawned on her that restaurants were missing the boat by not providing patrons with something entertaining to read for a few minutes while waiting for their food. After six months of research, Coffee News was born and has now risen to become the world’s largest restaurant publication and the world’s largest franchise publication with an estimated readership of over 8 million every week.
The purchase includes all stock of the corporation from the Estate of Jean Daum, the copyrights and trade dress of the publication and all existing franchise agreements in force in 32 countries. Manitoba, Inc. will continue printing operations in Winnipeg, Manitoba where Coffee News has been publishing for 20 years. In addition to Coffee News USA, Inc. in Bangor, ME, the newly acquired company maintains Head Offices in Brazil, Canada, Mexico, New Zealand, Spain and Venezuela.
Irene Tolman of Coffee News Worcester a franchisee since 2000, says, "Bill has been a strong force in the growth of Coffee News and having him at the helm will make people more comfortable by knowing he’ll keep Coffee News going and growing."
Irene goes on to say, "the people who oversee the franchise work long hours…Bill’s dedication is amazing! Whenever I call or e-mail Bill he replies within the day (mostly within the hour)…always in a pleasant way and always with an answer. Who can say that about their franchise owner?"
Created during an economic recession, Coffee News has grown in circulation dramatically in both good and bad economic times. Coffee News contains fun filled, good news and positive information to entertain while waiting. Community based-businesses are allowed to purchase exclusive ads, thereby targeting restaurant patrons while they dine. The restaurants receive a weekly quantity of Coffee Newses free of charge.
Coffee News reported 1142 franchises in force as of July 31, 2008 in 32 countries. Only about 2% of all franchise systems in the world have more than 1100 franchise units.
Uno Chicago Grill Franchisee Opens 8th Unit in Pennsylvania
NEFA Member, Uno Chicago Grill, opened its newest restaurant today at the Neshaminy Mall in Bensalem, PA. Franchise Partners Tom and Angella Bock of The Bock Group also own and operate seven other Uno restaurants in Pennsylvania and New Jersey and are Uno’s largest multi-unit franchisees. The Bock Group has also secured the real estate to open two more Uno restaurants: one in Newton Square, PA and the other in Oaks, PA.
The Neshaminy Uno is the first of six new Uno restaurants to open within the next 45 days all over the world. Included in this group is the greatly-anticipated launch of Uno’s newest fast-casual brand — Uno Due Go — which will open two units in DFW Airport in Dallas. Additionally, three more full-service Uno Chicago Grills will open in Dammam, Saudi Arabia; Kuwait City, Kuwait, and a premier location at the Mall of Dubai, soon to be the world’s largest mall. All of these restaurants will be open by mid-November.
Uno stands out as one of the few restaurant companies continuing to aggressively develop new locations despite constricted capital markets.
The Neshaminy Mall Uno restaurant in Bensalem, PA provides jobs for over 130 people and features a menu with over 100 items, including steaks, salads, burgers and, of course, its legendary deep dish pizza. The restaurant design and initial training features the newest "Uno Plus" enhancements first introduced at openings held earlier this year in Massachusetts, Florida and Virginia. Uno Plus enhancements include upgraded, experiential graphics and modern building design as their most notable features, as well as emphasis on staff training, hospitality and service refinements.
"We are big believers in the Uno Brand and offerings, and our restaurant teams look forward to continued growth in the Philadelphia area," states Tom Bock.
Cross Posted at Franchising in New England
Accounting Today honors Padgett Business Services
Accounting Today has announced that Padgett Business Services President Roger Harris has been named to its "2008 Top 100 Most Influential People in Accounting" list. Padgett Business Services, a leading franchisor of financial reporting and tax consulting services to small business owners.
This year’s list, entitled "New Frontiers", focuses on the abounding changes in the accounting industry and details how the individuals featured in the Top 100 are impacting and advancing the field. The list includes not only accounting professionals but also government officials and regulators.
"The profession stands poised to cross the threshold into largely unexplored territories, such as the inevitable convergence of U.S. GAAP and International Financial Reporting Standards, new technologies, a potential revamp of the Tax Code and dizzying changes in workforce demographics," said Accounting Today editor Bill Carlino. "This year’s Top 100 People roster includes many of those who are spearheading the profession’s journey into these brave new worlds."
Padgett Business Services is at the forefront of this journey, educating policy-makers and shaping legislation in Washington. Through the efforts of the Padgett Foundation, Padgett Business Services® is actively participating to ensure that new regulations enhance the accounting profession; Harris recently testified on behalf of Padgett in the IRS hearings on one of the most pressing issues in the accounting industry today — preparer penalty rules.
However, the primary focus of Padgett’s work in Washington is to shape legislation so that it benefits America’s small business owners. Acting on behalf of Padgett’s small business clients throughout North America and associations of tax practitioners, Harris has testified several times on IRS reform and has testified before the Senate Small Business Committee and the House Ways and Means Committee. He has also been featured as an expert panelist on Tax Talk Today, the IRS monthly web-cast.
Accounting Today describes Harris as "a veteran tax policy advisor to the IRS and Congress, his influence and insight are welcomed in Washington as well as on Main Street."
This is not the first time that Padgett Business Services has appeared on the "Top 100 Most Influential People in Accounting" list; Vice Chairman Dan Sautner has also been honored on the list and Accounting Today has recognized Padgett in the past with the following citations: Top 100 Firms, Top 10 Fastest Growing Firms in America (without merger for growth), Merit Award for Achievement in Client Service, Gold Medal Award for Achievement in Client Service.
Not only is Padgett recognized as a leader in the accounting industry, but they are also recognized as a leading international franchisor. Padgett has been ranked as a top franchise by Success, and Income Opportunities magazines, and was also ranked in Franchise Business Review’s Franchise 50 2008 Franchisee Satisfaction Awards.
Learn More about Padgett Business Services
Franchise Finance
Franchising in New England a blog of the New England Franchise Association (NEFA) is publishing a series on Franchise Finance, Series 1 is entitled: Utilizing Retirement Savings as a Funding Source.
With small business loans and second mortgages scarce these days, some middle age entrepreneurs are starting companies using their retirement savings, a novel financing method that is helping people get into their own business.
Jon Wilson and Larry Blasier discovered the retirement financing option when together they decided they wanted to open a MAACO Franchise in San Luis Obispo, CA.
Jon and Larry shared a passion for restoring cars and were excited when they were approved to build a MAACO in their community. Jon has worked 21 years for the California Department of Corrections and Larry has worked 27 years for Long Beach Transit.
They both knew that this was what they wanted to do. The investment required to open a MAACO was approximately $296,500.00. That was more cash than they had available so they needed to assemble a financing plan. IRA Rollover Solutions of Kirkland, WA a NEFA Member set up a C Corporation for them, a designation which allows a company to issue private shares of stock. Then a profit-sharing retirement plan was created within the corporation, making it eligible to accept pretax retirement contributions, without penalty or tax consequences.
Both Jon and Larry rolled over $75,000 each from their retirement savings, into the profit-sharing plan. As a result, the C Corporation could then use the money to invest in a MAACO franchise. They were also able to secure an additional $350,000 thru a SBA Loan provided by Small Business Loan Source, of Houston TX. The SBA Loan came in at 2 ½ points over Prime for 10 years 6 months, with the first six months interest only.
Jon Wilson knew right away when he contacted IRA Rollover Solutions, “this company was the right one for us. Rick Cox and Tom McDonald knew exactly what we wanted to do and handled the whole process with ease. We were never in the dark about anything and they were very professional in all aspects of getting our corporation established and us getting the start up money we needed.”
Jon and Larry have worked hard other the last few months is getting their MAACO franchise off the ground they signed a lease in August at 770 Capitolio Way, San Luis Obispo, CA 93401. They are scheduled to open by December 1st.
Women in Business stake out Their Dream.
Today’s career women are continually challenged by the demands of full-time work and the responsibilities and commitments at home. Fantastic Sams Hair Salons, NEFA Member and the nation’s largest full service hair salon brand, has a unique business model that allows women entrepreneurs to successfully achieve work/life balance.
Ranked as one of Entrepreneur Magazines Top 10% of franchises to buy and featured on Lifetime’s The Balancing Act, over 40% of Fantastic Sams salons/franchisees are women owned, and that number is projected to grow in the future.
"As a mom looking to get back into the workforce, Fantastic Sams was the perfect opportunity. Being a salon owner allows me the flexibility to manage my family life and my career. I’m able to pick up my daughter from school, spend time with my family and run a successful business," said Marilyn Tokatly, a multi-unit franchisee in Southern California. "The hair salon business also tends to be stable during a slowing economy because people always want to look good. Guests usually visit the salon every 4-6 weeks, which builds a solid customer base. And when they leave feeling fantastic about themselves, it creates a high degree of customer loyalty," she added.
With nearly 1,400 salons nationwide, Fantastic Sams has a solid, proven system of success, which allows women business owners to go into business for themselves, but not by themselves.
"With our business model and support network, we provide all of our franchisees with valuable information and resources to help them operate a successful business," states Jeff Sturgis, Vice President of Franchise Sales & Development. "We recognize how important it is that we continue to support the growth of this dynamic sector of women business owners".
Already a big player in the $59 billion hair salon industry, Fantastic Sams offers a full range of hair salon services catering to men, women and children of all ages. Customers at any Fantastic Sams can expect the full service treatment from a professional team of stylists up-to-date on the latest trends and fashions. Haircuts and styles, straightening, coloring, highlights and texturing are all available, as well as beard and mustache grooming, facial waxing and rejuvenating hair treatments. Fantastic Sams’ menu of services are also complemented by an exclusive line of professional hair care products.
The average initial investment to open a Fantastic Sams salon (ranging from $100,000 to $225,000) and the company’s fixed fee royalties make it one of the most competitive opportunities in the industry.
"We have become the leading full-service hair salon brand by offering the best in salon services and products, and by creating a customer loyalty that sets us apart from our competition - our guests recognize the difference," states Sturgis.
SBA Backed Loans Failure Performance
The Small Business Administration recently published it’s annual compilation of performance data on thousands of franchisee loans it has guaranteed.
The information is available through Coleman Publishing. The study looks at the number of SBA-backed franchisee loans that went into liquidation. The measure gives some insight into the financial risks involved with franchises that received funding thru the SBA Guaranteed loans program..
The latest report — covering loans made from Oct. 1, 2000, to Sept. 30, 2007. Among other statistics, it shows how many loans were made to a franchise, the dollars disbursed, and what percentage of loans went into liquidation, something the SBA classifies as a “failure.”
Many SBA lenders use the data to help spot negative trends and reduce future loan losses.
Best Performers (less than 1% failure) Sorted Ascending by lowest % (ties sorted descending by # of loans)
| Comfort Inn | 158 | 0 | 0% |
| Primrose | 110 | 0 | 0% |
| Edible Arrangement | 104 | 0 | 0% |
| Massage Envy | 61 | 0 | 0% |
| Cartridge World | 112 | 8 | .93% |
| Subway | 1974 | 84 | .96% |
| Dunkin Donuts | 410 | 17 | .96% |
| Sport Clips | 191 | 8 | .96% |
| Travelodge | 91 | 4 | .96% |
| IHOP | 67 | 3 | .96% |
| Goddard | 109 | 3 | .97% |
| Super 8 Motel | 363 | 8 | .98% |
| Best Western | 156 | 3 | .98% |
| Choice Hotels | 144 | 3 | .98% |
| Rita’s Water Ice | 103 | 2 | .98% |
| Arco | 85 | 2 | .98% |
| Zaxby’s | 81 | 2 | .98% |
| Anytime Fitness | 65 | 1 | .98% |
| Holiday Inn Express | 157 | 1 | .99% |
| Culver’s Frozen Custard | 150 | 1 | .99% |
| Hampton Inn | 88 | 1 | .99% |
| Brusters Real Ice Cream | 84 | 1 | .99% |
| Little Caesars Pizza | 72 | 1 | .99% |
| FastSigns | 71 | 1 | .99% |
High Failures (greater than 25%) Sorted Descending by Highest % (ties sorted descending by # of loans)
| Carvel Ice Cream | 76 | 30 | 39% |
| Matco Tools | 316 | 95 | 30% |
| Atlanta Bread | 61 | 18 | 30% |
| Golf Etc | 67 | 24 | 36% |
| Cornwell Quality Tool | 53 | 19 | 36% |
| Blimpie Subs & Salads | 158 | 58 | 37% |
| Cottman Transmission | 163 | 75 | 46% |
| All Tune & Lube | 77 | 37 | 48% |
| Philly Connection | 63 | 30 | 48% |
Papa Gino’s Signs First Franchise Agreement
Papa Gino’s, NEFA Member and a venerable New England pizza chain, has signed an agreement with the brand’s first-ever franchisee. "We have been serving New England for over 40 years, but this agreement creates an opportunity for individual investors to become involved with our business model and allows us to grow our brand recognition," says Anthony Padulo, Senior Vice President of Franchise Development.
Rajender and Sunita Malhotra are the first to partner with Papa Gino’s and have agreed to build three restaurants over the next three years. While the locations have not been finalized, preliminary indications suggest they will be in Beverly, Salem, and Swampscott, Massachusetts. Financial terms of the agreement were not disclosed.
The Malhotras say they’re excited about becoming the first Papa Gino’s franchisees. "Papa Gino’s has strong brand recognition in Boston and the surrounding suburbs," Rajender says. "We saw this as a unique opportunity to become involved with an established restaurant franchise with a built-in customer base.
Based in Dedham, Massachusetts, Papa Gino’s Holding Corporation is the parent company of Papa Gino’s and D’Angelo Grilled Sandwiches. The company operates more than 360 company-owned and franchised restaurants and employs more than 5,000 people.
Dick Rennick, New CEO of Assisting Hands Franchise System
Franchise entrepreneur Dick Rennick was recently appointed CEO of Assisting Hands, a franchise system that provides non-medical, in-home care to people who are elderly or have special needs.
“When I came on board as CEO three months ago, my job was primarily to organize the fledgling less-than-two-year-old company into a ‘Care Giving Power House Franchise Company’ using my past 40 years in the business community and my skills over the past 30+ years in the franchise business industry,” explained Rennick. “I think we have made a very good start and investors are agreeing with that as demonstrated by the fact that we have managed to sell in excess of $600,000 worth of regional developer agreements since I have come on board with at least two to three more regional developers waiting in the queue.”
Rennick decided to leave semi-retirement after recognizing the power of the in-home healthcare franchise industry, which has grown five-fold in unit growth from 2000 to 2006, according to FRANdata, an Arlington-Virginia-based research firm that tracks franchises and their performance.
After formally retiring from the IFA and selling his franchise business 360-unit American Leak Detection, Rennick semi-retired for two years and worked with another company he founded called Team Rennick to mentor young and growing companies. Assisting Hands was one of his Team Rennick clients, and after working with the franchise expert for several months the Mesa-Arizona-based franchise asked him to come on full-time as the system’s president and CEO.
Jim Coen, Mr. Franchise
I have learned franchising from the ground up. I’ve been a franchisee for a bad franchisor. I’ve worked for good franchisors and I’ve worked for marginal franchisors. I’ve helped many franchisees succeed.
I provide a consulting process that saves you time and money in your franchise search and provides you with the tools to make the right choice for you and your family.
Call: 617-469-3002
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