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 Home | 2021 Multi-Unit Franchising Conference

August 31st - September 3rd, 2021
Las Vegas,  Nevada USA

 

 

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Police arrested a man they believe has been dressing up as a Home Depot employee and stealing from the franchise across the panhandle. Panama City Police say they arrested Dustin White, 32, of Georgia. Police say they responded to the Home Depot on 23rd Street after callers say White was seen loading merchandise into the back of a moving truck in the store’s parking lot. They say he was wearing a Home Depot apron in an attempt to conceal what he was doing. Police tell us White tried to run but was caught after a short chase.n Accused of Dressing as Employee to Steal Merchandise.
Cloud Kitchen Platform Kitopi Plans US Expansion After Raising $60M Yahoo Finance ... Kitopi plans on expanding across the U.S. after closing a Series B round of funding totaling $60 million, Nation's Restaurant News reported. Kitopi ...
Tips For Beefing Up Your Franchise Development Plan In 2021. Extend your digital marketing and communications. Open a career path for the unemployed. Find different ways to expand your in-person grassroots efforts. Give back, and create good will. Be a dependable means of support for franchisees.
Justice Department Sues Detroit-Area Tax Preparation Franchisor, Four Others Using Franchise Name, to Stop Alleged Tax Fraud. The United States has filed four civil injunction suits in federal court in the U.S. District Court for the Eastern District of Michigan. The suits seek to enjoin a Detroit-area tax preparation franchisor from owning, operating and franchising tax preparation businesses and to prohibit the franchisor, as well as certain others that have agreements to operate using her business’s name, from preparing tax returns for others. The complaints also request that the court require all defendants to disgorge the return preparation fees they obtained by preparing allegedly false and fraudulent tax returns.
Texas Roadhouse CEO Kent Taylor leaves legacy of legendary generosity remembered throughout the industry. Severe symptoms related to COVID caused the casual-dining leader to take his own life. The restaurant world on Friday mourned the loss of Texas Roadhouse founder and CEO Kent Taylor following the shock of his death. Company officials in a statement said Taylor took his own life after a battle with post-COVID-related symptoms that included severe tinnitus.
STEAK ‘N SHAKE AVOIDS BANKRUPTCY AND SUES ITS LENDER. The burger chain, which was considering bankruptcy, has paid off its loan and then sued Fortress Investment Group for allegedly trying to take the company over. It then turned around and sued its lender—accusing Fortress Investment Group of maneuvering to take over the company by purchasing the chain’s loans on the secondary market and then threatening to force the chain into bankruptcy.
Lawsuits Filed Against Detroit-area Tax Preparation Companies. Tax franchisor is hit with four civil suits. The United States has filed four civil injunction suits in federal court in the U.S. District Court for the Eastern District of Michigan. The suits seek to prevent a Detroit tax preparation franchisor from “owning, operating and franchising tax preparation businesses” and to “prohibit the franchisor, as well as certain others that have agreements to operate using her business’s name, from preparing tax returns for others,” according to the complaint, which is also requesting that the court require the defendants to discharge the preparation fees they received by preparing allegedly fraudulent returns.The complaint against Jeanisia Allen alleges she “owns, operates, and franchises a tax return preparation business known as ‘The Tax Experts’ through co-defendants First Choice Tax Solutions LLC, The Tax Experts Inc., The Tax Experts LLC, and Top Notch Taxes Inc. The other three complaints allege that Jennifer Sherman, Erica McGowan, Annetta Powell, and Jasmine Powell have each entered into agreements with Jeanisia Allen and her entity, The Tax Experts LLC, to use the name The Tax Experts.’”
Food-Ordering Software Firm Olo Jumps After $450 Million IPO.Olo Inc., the food-ordering software company whose board members include Shake Shack Inc. founder Danny Meyer, climbed 39% in its trading debut Wednesday after raising $450 million in an initial public offering. The New York-based company sold 1Like other businesses with a hand in food delivery, Olo has surged during the coronavirus pandemic. After losing $8.3 million on $51 million in revenue in 2019, Olo had net income of $3 million on $98 million in revenue last year, according to its filings.8 million shares for $25 each on Tuesday after marketing them for $20 to $22, a range it had earlier elevated from $16 to $18. Olo’s shares opened at $32 and closed at $34.75 in New York, giving it a market value of $4.93 billion.
Restaurant Revitalization Fund ‘Amazing Step,’ But Work Remains. The industry is set to get a $28.6 billion boost. Here's what to know. Eligible businesses can receive a tax-free federal grant equal to the amount of its pandemic-related revenue loss, which is calculated by subtracting 2020 gross receipts from 2019 gross recipes. If the restaurant was not in operation for the entirety of 2019, the total is the difference between 12 times the average monthly gross receipts for 2019 and the average monthly gross receipts in 2020 (or a formula from SBA). If the business was not in operation until 2020, it can receive a grant equal to the amount of “eligible expenses” subtracted by its gross recipes received. If the restaurant was not yet in operation as of the application date, but it has made “eligible expenses,” the grant would be made equal to those expenses.
Attorneys Offer Advice to Handle Franchise Terminations, Defaults. There are numerous examples of franchisors exercising their ability to end the franchise agreement before the contractual term is up. Item 17 of the franchise disclosure document lays out provisions for “renewal, termination, transfer and dispute resolution,” and the franchise agreement itself further describes the franchisor’s rights and also when termination by the franchisee is warranted.
How to Anger Franchisees (Or Not) I. After a year’s worth of reporting in a pandemic, we’ve gleaned four common disputes franchisees have developed with their franchisors. Read No. 1 and 2 here, in Part 1. Here are two more ways to anger franchisees, and how to avoid the blunders. 3. Hide in your office. A common franchisee complaint since lockdowns began in 2020 was, where’s management when you need them? It was an often-cited reason to organize an independent franchisee association and even sue. n a Pandemic—Part 2.
Chinese consumers Pandemic-driven consumption patterns fade for Tingyi and Uni-President shift from instant noodles to soft drinks. HONG KONG -- Noodles are out and beverages are back in China, according to the latest results from a cluster of consumer brands that show how tastes have shifted as the coronavirus pandemic has ebbed. One of the few clear winners during the pandemic has been instant noodles. As millions of people stayed at home under lockdown orders, they devoured bowls of fast-food noodles in greater numbers. But as the outbreak was brought under control and ordinary consumption patterns gradually returned, the urgent demand for the convenient food staple has faded.
Seven Brew Ready to ‘Disrupt Drive-Thru’ with Jimmy John’s Founder. Seven Brew plans to use the injection of cash to initiate a franchise program, something Liautaud and Coulter are quite familiar with. Liautaud founded Jimmy John’s in 1983 and led the company until October 2019, when it was acquired by Inspire Brands. The chain now has more than 2,800 locations across the U.S. Coulter, previously a Pizza Hut franchisee, met Liautaud a few decades ago and mentored him as he grew Jimmy John’s. They plan to assist Seven Brew with opening company-run and franchise stores in new and existing markets.
Chipotle Agrees to Pay $15 Million in Back Pay for Overtime Hours. The lawsuit was settled after nearly four years of litigation. Chipotle has agreed to pay $15 million after apprentices accused the chain of incorrectly classifying them as salaried employees and exempting them from overtime wages. The payout will go to 4,838 workers. That group includes all apprentices employed in New Jersey from June 7, 2014 to July 15, 2019, and in all other states (except California, New York, and Texas) from June 18, 2017 to August 25, 2020. The case started in June 2017 when Carmen Alvarez, on behalf of herself and similarly situated employees, sued Chipotle over the misclassification.
California Tortilla plans expansion in Maryland Washington Business Journal And a third franchisee recently took over some of the company's Anne ... About 90% of the chain's stores are franchise and 10% are company-owned.
Better Business Bureau warns of potential work-from-home scam involving Fairmont warehouse. FAIRMONT, W.Va. – The Better Business Bureau(BBB) is warning consumers about Sinoway Operations USA LLC work-from-home positions to repackage boxes. Consumers have alleged that after 30 days of work, their promised pay is not received and all communication is stopped. Since January 2021, BBB has received several Scam Tracker reports on Sinoway Operations USA LLC. One complainant stated he had posted his resume online, but did not apply directly with the company. The consumers state the company contacts them by email with a work-from-home job opportunity. After a quick phone interview and job offer, the new hires are asked to supply their banking information, including a w-4, to set up direct deposit. The job is said to pay $2,000 plus $40.00 for each mailed package, on the 30th day of employment.
Scottsdale man sentenced for national investment fraud scheme. A Scottsdale man was sentenced March 15 to 16 years in prison for his participation in a nationwide investment fraud conspiracy that cost victims more than $23 million in total losses, officials from the U.S. Attorney’s Office say. According to court documents, Kent Maerki, 78, of Scottsdale, the founder of Dental Support Plus Franchise LLC and Janus Spectrum LLC made a multitude of misrepresentations about businesses in materials used to solicit investments, including during appearances on radio shows and in a presentation about investments in wireless spectrum he called “Money From Thin Air.”
21 restaurants and franchisees that have filed for bankruptcy during the COVID-19 pandemic. Long-term indoor dining closures have devastated the casual-dining industry throughout the COVID-19 pandemic, leading many restaurant groups in the sector to declare bankruptcy. Victims have ranged from Ruby Tuesday to Sizzler.
Sentinel Capital Partners Closes Sentinel has deep experience investing in franchise businesses, both as a franchisor and franchisee. Sentinel has acquired 14 franchise investments over the course of its history, including Border Foods, a franchisee in the Taco Bell system; Captain D's, a franchisor and operator of more than 530 Captain D's seafood restaurants; Checkers, a franchisor and operator of dual drive-thru quick service restaurants; Cottman Transmission Systems, a franchisor of automotive transmission centers; Falcon Holdings, the largest franchisee of Church's Chicken restaurants; Fazoli's, a regional franchisor and operator of Italian fast-casual restaurants; Interim Healthcare, the nation's largest provider of home healthcare and supplemental healthcare staffing services; Huddle House, a franchisor of family diningale of Pet Supplies Plus.
HOW CHAINS ARE MINING A ‘GOLD RUSH’ OF CUSTOMER DATA. As transactions increasingly shift to digital channels, restaurants are learning more about their guests than ever.Previously, orders through its app, website and third-party marketplaces made up about 35% of its overall mix, said Darien Bates, head of technology for the Washington, D.C.-based chain. But as &pizza began reopening its stores, the ratio of digital to in-store traffic had flipped. Now, about 70% of the chain’s traffic comes from online, Baker said. The ability to accept digital orders was a virtual must for most restaurants to survive the pandemic. The upshot of all those new digital customers, however, has been a massive influx of data.
National Restaurant Association Show 2021 canceled because of COVID-19. Annual convention was scheduled for May 22-25 in Chicago, which is under limits on gathering size. Organizers of the National Restaurant Association Show on Friday announced the cancellation of the 2021 convention, which was scheduled for May 22-25 at McCormick Place in Chicago.
Naf Naf Grill Splits with Roark Capital. The chain has tripled in size in the past five years. Naf Naf Grill announced Wednesday that it’s splitting up with private equity company Roark Capital. The fast-casual Middle Eastern concept said it and an investor group acquired the minority stake held by affiliates of Roark. Terms of the deal weren’t disclosed. Roark, which is heavily involved in the restaurant industry, has investments in Inspire Brands and Focus Brands, which operate concepts such as Buffalo Wild Wings, Dunkin’, Sonic Drive-In, Moe’s Southwest Grill, and Cinnabon. The company also made a $200 investment in The Cheesecake Factory in April 2020.
Saladworks Parent Acquires The Simple Greek WoWorks, formed in December, now oversees more than 215 stores in the U.S. Saladworks Parent Acquires The Simple Greek WoWorks, formed in December, now oversees more than 215 stores in the U.S. FAST CASUAL | MARCH 12, 2021 | BEN COLEY Tweet Share on Facebook Share on LinkedIn Forward via E-mail The Simple Greek food. THE SIMPLE GREEK The Simple Creek was founded in 2015 by Marcus Lemonis. Saladworks parent WoWorks is growing once more with the addition of The Simple Greek, a 24-unit fast casual based in Ohio. WoWorks formed in December after Center Lane Partners, LLC acquired Frutta Bowls and the bankrupt Garbanzo Mediterranean Fresh. Saladworks leader Kelly Roddy, who joined the company in 2019, is serving as CEO of the now four-unit group.The new holding company’s mission is to drive massive growth while serving “healthy, nutritious, and flavorful fuel.” That drove the purchase of The Simple Greek, as well as the earlier acquisition of Garbanzo and Frutta.
Texas Roadhouse founder and CEO Kent Taylor dead at 65 Kent Taylor, the founder and CEO of casual-dining chain Texas Roadhouse Inc., has died, the company announced late Thursday.is death was not disclosed by company officials.Taylor founded the now-630-unit chain in 1993 in Clarksville, Ind., as a dinner-only concept. The goal was to create a steak restaurant where families could gather for a great meal at a great price. The chain was built with a managing-partner model, with managing partners at each unit investing $25,000 in exchange for 10% of profits.
How Much Does a Chick-fil-A Franchise Cost? Chick-fil-A consistently ranks as one of the top franchise restaurants in the U.S. with more than $11 billion in sales, but owning one is surprisingly inexpensive. Opening a Chick-fil-A franchise costs between $342,990 and $1,982,225, including a $10,000 franchise fee, but unlike most other franchisors, Chick-fil-A covers all opening expenses, meaning franchisees are on the hook only for that $10,000. That makes Chick-fil-A one of the least expensive major fast-food chains to buy into by a long shot. Additionally, Chick-fil-A has no requirements for minimum net worth or liquid assets. However, Chick-fil-A charges a 15% royalty and takes 50% of all profits for franchisees, by far the steepest structure of any quick-service brand. Wendy’s, for example, requires franchisees to have a minimum net worth of $5 million with $2 million in liquid assets but charges them just a 4% royalty.
Freddy’s Frozen Custard sold to Thompson Street Capital Partners. Missouri-based private-equity firm acquires fast-casual steakburger concept.Thompson Street Capital Partners has acquired Freddy’s Frozen Custard & Steakburgers, the 360-unit fast-casual concept, the St. Louis, Mo.-based private equity firm said Wednesday.Freddy’s was founded in 2002 in Wichita and features a menu of steakburgers, shoestring fries and frozen custard. The company began franchising in 2004 and now has more than 360 locations, about 30 of them company-owned.
Judge: Former CEO Steve Easterbrook had sought dismissal of severance package lawsuit in Delaware court rules McDonald’s case against fired CEO can continue. Former CEO Steve Easterbrook had sought dismissal of severance package lawsuit in Delaware court. Chicago-based McDonald’s in August sued Easterbrook in the Court of Chancery of the State of Delaware to recover compensation and severance benefits — a cash, bonus and stock award package reportedly worth more than $37 million. “He violated the company’s policies, disrespected its values, and abused the trust of his co-workers, the board, our franchisees and our shareholders,” the company said. “We look forward to bringing the evidence of Easterbrook’s misconduct before the court and to proving our case.”
SBA defers repayment of disaster loans until 2022. he Small Business Administration pushed back the deferment period for all its disaster loans, including the COVID-19 Economic Injury Disaster Loan (EIDL) program, until next year. The SBA said last Friday that all disaster loans made in 2020, including COVID-19 EIDL, will have a first payment due date extended from 12 months until 24 months from the date of the note. Meanwhile, all SBA disaster loans made in 2021, including loans made under the EIDL program, will have a first payment due date extended from 12 months to 18 months from the date of the note.
Low Investment Franchise Business Market Thriving 3X Growth by 2028| Dunkin, Taco Bell, McDonald’s, Sonic Drive-In, The UPS Store, Ace Hardware, Planet Fitness, Jersey Mike’s Subs. Our research shows that 37% of food franchise owners earn less than $50,000 per year, and just 16 percent the top performers earn more than $200,000 per year. The average annual income reported by all food and beverage operators that we surveyed is $120,000 for businesses open at least two years. A Subway restaurant, on average, generates $417,000 in sales annually, compared to $2.7 million in average annual revenue for McDonald’s restaurants, according to QSR magazine. Subway also charges its franchisees hefty ongoing fees.
Tutor Doctor Buys Code Wiz, Plots Growth SuThe president of Tutor Doctor, Frank Milner, is “super, super excited, in case you couldn’t tell,” about the 20-year-old brand’s first acquisition, of Code Wiz. Tutor Doctor has 350 franchisees who operate around 700 franchise territories in 15 countries, he says. And Code Wiz has only six? I reply.rge.
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