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2006
Earnings Claims Packages |
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Pre-selected
industry packages containing Item 19s (Earnings Claims
Statements) for the year 2006 are now available on UFOCs.com!
Read on for detailed price and product information. |
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Earnings
Claim Hall of Fame: Great Clips |
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Source
Book Publications has long argued (with very modest
success) that all franchisors should be required to
submit an earnings claim statement (Item 19) in their
UFOC. Given that submission of an Item 19 is entirely
voluntary, only 20% of franchisors choose to do so.
The reasons for non-submission range from the ludicrous
to vaguely plausible.
To
us, it seems entirely one-sided to ask a prospective
franchisee to invest in excess of $200,000 (on average)
to “buy” a franchise without providing him
or her with a clear understanding what he or she might
earn from the investment. Although there are numerous
variables that preclude franchisors from coming up with
an exact projection of future Net Operating Income,
the franchisors clearly have the ability to determine
the historical sales and related expenses for operating
units currently within their system. At a minimum, they
can work backwards from royalty payments to come up
with a gross sales figure. To the extent that they closely
monitor and support their franchisees, they should have
a good sense of average operating costs as well. Given
this information and the latitude they have to provide
as much detail as they see fit, they can break out summary
operating data for those franchisees or company-owned
units that have been around for say 5 years, 10 years,
etc.
Our
sense is that the FTC will ultimately acknowledge the
need for a mandatory Item 19. Given the difficulty from
industry to industry to provide a workable template
for the submission of information, the FTC will continue
to allow franchisors to provide as much or as little
information as they deem necessary. Those franchisors
that do in fact provide real, in-depth information will
clearly enjoy a competitive advantage over those that
do not. At any rate, those franchisors that go to the
trouble of including an Item 19, even if only cursory,
should be acknowledged and applauded.
As
an on-going feature of future newsletters, World Franchising
will publish an exemplary Item 19 each month. This month,
we honor Great
Clips for the exceptional detail that they provide
in their Item 19. My guess is that the rapid growth
and success of their system has a great deal to do with
the forthrightness with which they celebrate the success
of their existing franchisees. To view their Item 19,
please click
here.
Those
companies who feel they provide exceptional disclosure
in their Item 19s are free to submit their Item 19 electronically
for consideration in subsequent newsletters.
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Industry
Focus: Senior-Care Services |
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With
each passing year, the elderly become a larger percentage
of the total population. Consequently, the need
for senior-care -- ranging from simple companionship
to shopping for food and other supplies -- is constantly
growing. Such steady growth provides numerous openings
for potential franchisors looking to get involved
in this personally and professionally rewarding
industry. |
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Source
Book Publications Video Feature |
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Prompted
by the increasing importance of Web 2.0
media and the desire to keep all of us
from becoming too serious, we thought
we would add a monthly feature that highlights
an incredible new on-line video each month.
If
this month's video doesn't cheer you up,
very little will! To view, click
here.
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2007
Franchise Guides Coming Out Soon! |
Keep
your eyes peeled for the 2007 editions of
the following annual publications: |
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Source
Book Publications |
1814
Franklin St., Suite 815, Oakland, CA 94612 |
(510)
839-5471; Fax (510) 839-2104; www.worldfranchising.com |
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In
This Issue |
Earnings
Claims Packages |
Earnings
Claim Hall of Fame |
Industry
Focus |
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Franchise
Spotlight |
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Gymboree
Play and Music has been providing childhood
development programs for young children
and their parents for 30 years. Gymboree's
core belief is that children should develop
at their own pavce via physical, mental
and creative activities in a fun environment
-- with parents by their side. There are
more than 500 Gymboree locations in 24
countries. Franchisees have access to
a wide selection of branded consumer products
for resale, and gain a competitive advantage
with children's clothing stores.
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The HoneyBaked Ham Co. & Cafe is a truly
exciting franchise opportunity with 50 years
of experience building a strong brand. We
are the original (and the world's largest)
specialty retailer of high quality spiral-sliced
glazed hams, turkeys and other special occasion
center-of-the-table products complemented
by a full service cafe.
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Papa John's International, headquartered
in Louisville, KY., is the world's third-largest
pizza company, owning and franchising approximately
3,000 restaurants in 49 states and 22 countries.
For six years running, consumers have rated
Papa John's #1 in customer satisfaction
among all national Quick Service Restaurant
(QSR) chains in the highly regarded American
Customer Satisfaction Index (ACSAI).
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Quick-service restaurant- Fried chicken
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Captain
D's restaurants offer fresh, high-quality
seafood in a fast casual service environment.
The menu features our signature fried
fish, which is hand-cut, hand-battered
and made-to-order to ensure freshness.
We also offer premium-quality baked and
broiled fish, as well as shrimp, chicken
and home-style side dishes with selected
desserts.
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