Franchising in New England

Bacon Whitney LLC, the Newton, Mass. company that operates a route vending franchise organization utilizing point to point technology, recently hired Rag Mehra as executive vice president for sales and marketing. Mehra is the latest management executive to join the Bacon Whitney organization. He most recently was a chief financial officer for Urban Trust Bank in Washington, D.C.

Bacon Whitney purchased the license to operate franchises in the U.S. from the Service America/All Seasons Services Group, along with the U.S. 24seven franchise license that uses the technology, according to Mark Bruno, president of Bacon Whitney. Bruno said the company now has about 70 franchises with about $25 million in annual sales. The franchises are located in Texas, Florida, Indiana, Massachusetts, New York, New Jersey, Pennsylvania, Delaware, New Jersey and New Hampshire.

UFood Restaurant Group Inc. announced Thursday it will open its first store in Chicago this summer.

UFood is a Boston-based fast-casual restaurant chain that focuses on delivering healthy alternatives to fast-food.

This is the first of five franchises to open in the Chicago from by franchisee Carl Dissette.

UFood operates one company UFood Grill store in Boston Logan International Airport. The company is converting its five Boston area KnowFat stores — its former brand — into UFood Grill stores this year.

UFood recently signed an agreement to open a franchise in Dallas/Fort Worth International Airport.

Lisa Eckelbecker of the Worcester Telegram reports that NEFA Member DoodyCalls business is picking up.

There’s just no easy way around it. This story is about, ahem, what pets leave behind and the people who want to clean it up. Jack Sheehy, engineer by day, DoodyCalls business operator by night, has launched the first DoodyCalls franchise in the Worcester area, and while some may twitter about his job, he has no qualms about it.

“Some people get rich doing what they love,” said Mr. Sheehy, a former Navy submariner who lives in Sterling. “I’m hoping to do well doing what people hate.”

DoodyCalls Franchising LLC, which is based in Charlottesville, Va., and has about 10 franchises across the country that are not owned by the company, offers to scoop poop from yards, kennels, dog runs, litter boxes, parks and just about any other place it might accumulate. It’s part of a pet waste removal industry that is filled with franchised chains and independent entrepreneurs.

In the Boston area, pet owners tired of picking up after their animals can turn to Pet Butler of Frisco, Texas, a national franchiser, or Dog-Gone-It Inc. of Newton. In the Pioneer Valley, Doggy Doody Disposal serves Franklin, Hampshire and Hampden counties.

DoodyCalls workers travel in lime green trucks emblazoned with smiling cartoon dogs.

If it seems like a strange business, consider that pet owners indulge their furry friends. The American Pet Products Manufacturers Association estimates that U.S. pet owners will spend $43.4 billion on their pets this year, including $3.2 billion on pet services.

Mr. Sheehy acquired the DoodyCalls franchise for a territory stretching from suburban Boston to Central Massachusetts and started the business in December 2006. Now serving about 100 customers, Mr. Sheehy recently hired his first full-time employee. He hopes to leave his day job and focus full time on DoodyCalls by June 2009.

Customers include senior citizens, busy families, apartment complexes and people who just don’t like to clean up after their pets.

“It’s a wonderful service, especially for a senior citizen,” said Peggy Bisson of Northboro, Mr. Sheehy’s first customer and the owner of two dogs that barked and shimmied when Mr. Sheehy and an employee arrived to clean their yard. “I saw them online and couldn’t wait to sign up.”

Read the whole story.

Michael Radin of Tarlow Breed Hart & Rodgers, P.C. provides a Legal and Legislative update at each of NEFA’s Dinner Meetings.

The Legal and Legislative update is digest of legal and legislative tidbits that are pertinent to franchising and running a franchise.

Open a copy of the 3-18-08 NEFA Legal & Legislative Update presented by Michael Radin.

Michael Radin of Tarlow Breed Hart & Rodgers, P.C. provides a Legal and Legislative update at each of NEFA’s Dinner Meetings.

The Legal and Legislative update is digest of legal and legislative tidbits that are pertinent to franchising and running a franchise.

Open a copy of the 5-20-08 NEFA Legal & Legislative Update presented by Michael Radin.

The law firm of Tarlow, Breed, Hart & Rodgers (TBHR), a NEFA Member announced the formation of a new Franchise and Distribution Group. The Franchise and Distribution draws on the talents of attorney’s  in several departments to represent franchise and distribution companies, prospective franchisees, multi-unit operator, area developers, lending institutions, private investors and venture capital companies contemplating franchise and distribution system investment opportunities.

William R. Rodgers, a founding member of TBHR, notes, “TBHR’s Franchise and Distribution Group consists of highly experienced attorneys, who understand the issues facing franchise and distribution companies. Franchise distribution and marketing of products and services in today’s economy raises a host of complex business and legal issues, combined with ever changing legal trends, make it vital that attorneys advising franchise distribution clients remain well versed both in the state of the law and the current business approaches being applied in a wide variety of industries.”

Rodgers emphasized, “Franchising is NOT always the best method of growth, our team helps clients weigh all options and make prudent decision for short and long-term success.”

The Franchise and Distribution Groups consists of:  

Albert A. DeNapoli is the chairman of the firm’s Hospitality Practice Group, which offers legal assistance from leasing to franchising and licensing for a diverse clientele which includes local restaurants and lodging businesses as well as nationally known chains. DeNapoli is a member of Massachusetts Bar Association; Boston Bar Association; Neponset Valley Chamber of Commerce, 2008 Chairman, Board of Directors; Massachusetts Restaurant Association, Board of Directors, and the Massachusetts Lodging Association.

Michael Radin works extensively with clients in their corporate, distribution, real estate, finance and intellectual property matters. Radin is a member of American Bar Association - Business, Real Property, Intellectual Property and Franchising sections; Massachusetts Bar Association - Business, High Technology and Real Estate Committees; California Bar Association - Business, Intellectual Property and Franchise Committees; Boston Bar Association; Associated Industries of Massachusetts (AIM); Smaller Business Association of New England (SBANE) and the New England Franchise Association (NEFA) for whom he provides a “Legislative Update” segment at each meeting.  His monthly outline can be found on the blog: Franchising in New England.

Katie Ahern is an associate in the firm’s Corporate Law and Business Transactions group. Ahern is a member of: Massachusetts Bar Association; Boston Bar Association Rhode Island Bar Association - Business Organizations Committee; American Bar Association - Section of Business Law & Section of Taxation, University of Rhode Island College of Business Administration Alumni Association, and the New England Franchise Association (NEFA)

Jon Chesto reports in the Patriot Ledger that for years, Dunkin’ Donuts franchisees in the region have pooled their resources to purchase ingredients and equipment.

Now, a large franchisee group is preparing a way for franchisees to join together to buy health insurance and other back-office services as well.

The DD Independent Franchise Owners’ (DDIFO) leadership last week unveiled a new effort to its members to purchase a Blue Cross Blue Shield plan through an intermediary that could provide health coverage for thousands of employees who work at franchise locations.

Kevin McCarthy, the franchise organization’s new board chairman, said the board has asked National Association Management Group of Kennesaw, Ga., to make a formal presentation to the board in July about the bulk insurance purchase.

“They’re going to say here’s what the costs will be and here’s what the benefits will be,” said McCarthy, a lawyer from Cohasset and a former executive at the Dunkin’ Donuts chain, headquartered in Canton. “If we look at this in July and it looks good (then) we’re going to tell them to get it set to roll out by the fall.”

Presumably, bulk purchasing would make it easier and cheaper for franchisees – many of them just own a handful of Dunkin’ locations – to offer health insurance.

The effort will be particularly helpful in Massachusetts, where many employers are mandated by the state to provide health coverage for their workers, McCarthy said. But he said the franchisee group would have pursued the change even if the health care mandate wasn’t in place.

If the health insurance rollout is successful, the franchisee organization will consider offering other services to its members. Those services could include business insurance, payroll processing and mystery shoppers, McCarthy said.

“We have to start slow and keep adding more and more services as time goes on,” said Mark Dubinsky, the president of the franchisee organization.

Summit Partners a private equity and venture capital firm with offices in Boston has made a minority equity investment in Snap Fitness. Terms of the transaction were not disclosed.

Snap Fitness, Inc., is a franchisor of compact, 24/7 express fitness clubs. Founded in 2003 by CEO Peter Taunton, Snap Fitness offers fitness clubs that emphasize fast, convenient and affordable workouts in neighborhoods across North America. A typical 2,500-square-foot facility features the same quality equipment as traditional big-box health clubs, but in a smaller, non-intimidating setting and at a fraction of the membership price.

Snap Fitness is experiencing substantial growth with more than 1,500 franchise locations across the United States and Canada, with some 30-40 new franchises being added monthly. Overseas franchise expansion is projected for later this year.

The company promotes member-friendly policies and value-added benefits. It offers month-to-month memberships as opposed to long-term contracts, and allows memberships to be frozen for up to three months a year with no penalty. In addition, the company provides members with a host of products and services, such as an online wellness assessment and customized supplements, designed to give members better results and more value for their money.

“Our relationship with Summit Partners will allow us to fuel our international expansion operations, fortify our brand, and lay the groundwork for long-term growth,” said Peter Taunton, Snap Fitness’ Founder and CEO. “This partnership will allow us to realize Snap Fitness’ true growth potential and stay true to our focus of providing our members a high-quality, high-value fitness experience, while finding ways to support the success of our franchisees. We look forward to working closely with Summit to leverage their expertise in helping rapidly growing companies.”

“Snap Fitness is led by a superior management team that understands the growing demand for a convenient and affordable health club experience,” said Sonya Brown, a Principal with Summit Partners. “The company provides a platform, a brand, and a support infrastructure that enables franchisees to offer a product and service second-to-none in their market space. We believe Snap Fitness is poised for continued strong growth, and are delighted to be working with Peter Taunton and his team.” Ms. Brown, along with Summit Partners Vice President Peter Rottier, will join the Snap Fitness Board of Directors.

Summit Partners provides private equity and venture capital for growth companies. Founded in 1984, Summit has raised more than $11 billion in capital and has provided equity, recapitalization, and management buyout financing to more than 300 growing companies across a range of industries. Of these companies, nearly 125 have completed public offerings and more than 110 have been acquired through strategic mergers and sales. Summit Partners has offices in Boston, Palo Alto, and London.

Summit Partners seeks to work with outstanding management teams that have self-financed their companies to profitability and market leadership. Notable consumer products and services investments include 3-Day Blinds, Belkin Corporation, Champion Windows, Harris Research (Chem-Dry), MDVIP, and Physicians Formula.