Franchising in New England

Scott Krumholz v. AJA, LLC and Emack & Bolio (January 13, 2010)

All of the claims brought by the Emack & Bolio’s ice cream franchisees against a franchisor were time-barred by the one-year contractual limitations clause in the parties’ franchise agreement. The franchisees filed their complaint against the franchisor on December 24, 2007. The franchisees alleged that the franchisor had fraudulently induced them to invest significant financial resources in their franchise. The alleged misrepresentations occurred during a meeting between the parties on December 14, 2002. The franchise opened for business in May, 2003, and by the end of 2004 it was clear to the franchisees that the costs of construction, equipment, and inventory were significantly higher than the amounts quoted to them by the franchisor and that their earnings had fallen far short of the franchisor’s projections. In light of those facts, it could not be reasonably contended that, at least by December 2006, after closing the store due to $800,000 in losses, the franchisee did not have notice of the alleged cause of the harm-the franchisor’s alleged gross misrepresentations.

Read the decision:

Elements Therapeutic Massage, one of the fastest-growing franchises in America, will host the “Discover the Elements of Success” franchise event April 7 to introduce prospects to key executives and Boston-area franchise owners. The Colorado-based franchise company has 11 locations open in Massachusetts where revenues increased 37% in 2009 over the previous year.

The company plans to open another 12 studios in the state.

WHO: Small-business owners, multi-unit franchisees, corporate evacuees and entrepreneurs interested in learning about opening and operating Elements Therapeutic Massage franchises in the state of Massachusetts.

WHAT: “Discover the Elements of Success” Franchise Event

WHERE: Marriott Hotel, 2345 Commonwealth Avenue, Newton, MA 02466

WHEN: Wednesday, April 7 Registration: 1:30 – 2 p.m.; Event: 2 – 4 p.m.

REGISTER: Register Here, or call 888-912-2228.

About Elements Therapeutic Massage, Inc.: Elements Therapeutic Massage, http://corp.touchofelements.com, is headquartered in Highlands Ranch, Colo., and owned by Fitness Together Holdings, Inc. The parent company oversees Fitness Together Franchise Corporation, a one-on-one personal training fitness franchise that began franchising in 1996, and Elements Therapeutic Massage, a massage therapy franchise that began franchising in 2006. Today, the combined franchise network has sold hundreds of franchises across the United States, Costa Rica, Israel, Ireland, and Canada.

Massage Envy, A NEFA Member and the nation’s largest therapeutic massage provider, is pleased to announce that U.S. Army Sergeant Andrew Cottam recently received the company’s 20 millionth massage. Formed just eight years ago, Massage Envy has grown to more than 600 clinics throughout 42 states.

Cottam, an Army recruiter in Napa, California made an appointment for his monthly massage at the Massage Envy clinic in Fairfield, California owned by franchisee Christina Delgado. Cottam’s regular therapist, who performed the milestone massage, is Amanda Bartolomeu. She is highly experienced with more than 850 hours of massage training. Cottam has been a Massage Envy member since February 2009 and takes advantage of both the Swedish massage and the deep tissue massage offerings for relaxation and fitness. He lifts weights and uses massage as a part of his overall fitness routine. Cottam, like many others, benefits from Massage Envy’s military discount for all active military personnel.

He will receive a free year membership to Massage Envy which includes a complimentary monthly massage. Cottam said because Massage Envy has a national presence, he has visited clinics from Texas to North Carolina during his different Army assignments. He credits the staff at the Cordelia clinic for making him a satisfied loyal customer. “From the front desk to the manager, there couldn’t be a nicer group of people. They do a great job of creating a friendly, relaxed environment,” he said.

“We are very pleased to have Andrew as a member at Massage Envy and we thank him for his service to our country,” said David Humphrey, CEO of Massage Envy. “He is an example of how regular massage benefits physically active individuals and everyone with a busy and demanding lifestyle. We are also thrilled to have reached the significant milestone of 20 million massages performed in only eight years,” said Humphrey. “In today’s world, everyone deserves a monthly dose of stress relief. Massage Envy is proud to have provided professional, convenient and affordable therapeutic massages to so many Americans nationwide.”

For more information contact Massage Envy

Sotheby’s brand honored by Franchise Business Review a member of the New England Franchise Association.

Anne Erwin Sotheby’s International Realty, a real estate firm based in York, recently announced that the Sotheby’s International Realty brand won Franchise Business Review’s Best in Category for Real Estate Franchisee Satisfaction award for the third year in a row. The award measures franchisee satisfaction with their franchisors.

“We are so honored to receive this recognition for the third year in a row,” said Michael R. Good, president and chief executive officer, Sotheby’s International Realty Affiliates LLC.

Franchise Business Review surveyed franchisees from more than 500 leading systems, representing more than 100,000 franchisees, for the fifth annual awards. Franchises were evaluated in five areas: training and support, franchise system, franchisor/franchisee relations, financial opportunity and overall satisfaction.

Franchise Business Review is a national franchise market research firm that performs independent surveys of franchisee satisfaction and franchise buyer experiences. For a complete list of this year’s award winners, go to www.FBR50.com.

Anne Erwin Sotheby’s International Realty has had a leading presence in the southern Maine real estate market for more than 25 years. Founded in 1980, the company offers a wide selection of oceanfront, ocean view, waterfront, water view, and distinctive homes in every price range in southern Maine including York, Cape Neddick, Kittery, Kittery Point, Ogunquit, Wells, Kennebunk, Kennebunkport, South Berwick and Eliot.

The Sotheby’s International Realty network currently has more than 10,600 sales associates located in more than 500 offices in 38 countries and territories worldwide. For more information, visit www.sothebysrealty.com.

Lisa van der Pool reports at the Boston Business Journal that Papa Gino’s Inc. has revived its line of burgers after over a decade of featuring burger-free fare, the pizza chain said on Wednesday.

The Dedham, Mass.-based Papa Gino’s has introduced three angus burgers: the classic, mushroom swiss and bacon cheddar. The chain is currently running a Facebook promotion giving $2 off any burger-and-fries meal through March 21.

From the 1970s through the mid-1990s Papa Gino’s marketed a “Papa Burger.”The restaurant chain said the angus burgers were brought back to diversify its menu.

The Boston Globe reports that  Elements Therapeutic Massage, a chain of massage studios, said it is seeking franchisees to roughly double its store count in Massachusetts.

The Colorado-based company says there are currently 11 Elements Therapeutic Massage studios in the Bay State; its first Massachusetts studio opened in 2007.

The company, which has 78 locations nationwide, said it has identified Massachusetts as a strong market for its services.

Why? According to the company, middle-class consumers have grown more comfortable with seeing therapeutic massage as a way to reduce stress. So perhaps the Bay State is a high-stress hotbed, and the locals are resorting to restorative rubdowns in droves.

In any case, the company said it is looking for franchisee candidates as it plans to award 12 more locations in Massachusetts. To that end, it has scheduled a franchise event at the Marriott in Newton in early April.

NEFA member Itamar Chalif, principal of Atlantic Capital Solutions, will appear on WPI’s Venture Forum program on Saturday, February 7th, which will air from 5:00 p.m. to 7:00 p.m. on WTAG 580 AM and 94.9 FM. Mitchell Sanders, Executive President of ECI Biotech, will host the program.

The WPI Venture Forum Radio Program is a talk show for anyone interested in starting a business. Whether trying to write a business plan, raise capital, create a benefits package or determine the best way to structure a management team, the program’s hosts and guests have been there and done that.

Besides a discussion between host and guests, the audience is also encouraged to phone in with  questions and comments. In addition to tuning in on the radio, you can listen to the program online on WTAG’s Web site at www.wtag.com.

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

The DD Independent Franchise Owners Group, (DDIFO)which represents the largest association of Dunkin’ Donuts franchise owners in the U.S., has named Jim Coen, a member of the DDIFO Board of Directors, as its acting President and Chief Operating Officer. He takes over December 1, 2008 from Mark Dubinsky who has tendered his resignation after two yeas as DDIFO President.

Mr. Coen is Executive Director of the New England Franchise Association and founder of Franchise Perfection. He has been a director of and the Clerk for the DDIFO board since May, 2008.

In his interim role as acting president Coen will continue DDIFO efforts to support all franchisees. “I thank the board for the confidence they have placed in me, I look forward to working with the Board and the members. DDIFO has incredible opportunities to support existing members, implement it’s mission, grow membership and improve the organization’s capabilities,” said Coen.

“We are pleased to have Jim Coen assume the role of President of our organization,” says Kevin McCarthy, Chairman of the DDIFO board. “This is a critical time for franchisees because of the economic uncertainty. The DDIFO board is confident that Jim’s experience and skills will serve members well during this transitional period. We are also grateful to Mark Dubinsky for all he did on behalf of the DDIFO and wish him continued success in his business endeavors.”

Dubinsky says, “I have been honored to serve as DDIFO president and am gratified by the many successes we enjoyed over the past two years, including the passing of the Rhode Island Fair Dealership Act and the addition of new, valuable business services for our members.”

NEFA President and PR Works founder Steve Dubin and account manager Joe D’Eramo recently met with TV star Christopher Lowell at the national convention for their mutual client DirectBuy Franchise System.  The convention was held in San Francisco and attended by more than 1,500 DirectBuy staff members.

Lowell, a decorator and television personality, is the host of It’s Christopher Lowell! and the Christopher Lowell Show for which he won a Daytime Emmy Award in 2000.

Christopher Lowell has become a household name and has appeared appearing on The Hollywood Squares. DirectBuy provides members access to twelve room settings created by Christopher Lowell.  Lowell will host an upcoming series on Fine Living Channel called Work That Room with Christopher Lowell.

PR Works met with Lowell to discuss a variety of public relations initiatives to expand awareness of DirectBuy. PR Works develops visibility programs for the more than 160 DirectBuy franchises that are located in the United States and Canada.

Held from November 22 to 25 at the San Francisco Marriott, DirectBuy’s conference, appropriately titled the Brilliance by the Bay, brought DirectBuy franchise owners, staff and vendors from across the U.S. and Canada.
Besides awards banquets, keynote speakers, the conference provided a team-building opportunity.

“DirectBuy executives and staff are energized to create new business opportunities and continue to grow their brand,” noted Dubin. He added, “The conference underscored the unique niche that DirectBuy can offer to consumers - buying at manufacturers’ price can save an enormous amount of money and should be a fun, positive experience.”

As the leading members-only showroom and home design center, DirectBuy offers manufacturer-direct pricing on products ranging from light fixtures to televisions to kitchen cabinets, all from more than 700 manufacturers and their authorized suppliers. DirectBuy also offers design services to its members, as well as a listing of local contractors who offer installation services to DirectBuy members, many times at a discounted rate.