Franchising in New England

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.

Bruegger’s  the Burlington, VT franchisor announced that it will continue to add bakeries in spite of the weak economy. In 2008, the company is ahead of plan inking development agreements totaling 46 new bakery commitments. Since 2005, when Bruegger’s significantly modified its franchising program, the company has reached development agreements for 153 new bakeries.

This year, Bruegger’s also signed multi-unit deals in two of the largest and most competitive retail markets in the country. In August, the company closed a deal with Hart Street, LLC to open 20 bakeries in New York City over an eight year period. Earlier in the year, franchise rights for 15 bakeries in Chicago were awarded to Windy City Bagels. The company has also reached multi-unit agreements with franchisees in Ohio and Florida this year.

This announcement comes on the heels of a September Wall Street Journal article citing a Franchise Update Media Group survey in which 150 franchise companies, respondents said their franchise sales were about 72% below their 2008 goals, with inquiries from prospective franchisees down about 48 percent1.

“We look for people who love and understand the business and have the resources to build a successful franchise,” said Bruegger’s Vice President of Franchising Chris Cheek. “Our goal is to grow the right way. Choosing the right franchisees and pairing them up with the right locations is key to making that happen.”

Bruegger’s has also seen 18 consecutive quarters of comp sales growth. This month, the company announced third quarter system-wide gross sales of $45.13 million; a 8.7 percent rise over $41.52 million for the same period in 2007. Revenue for comparable sales grew 1.7 percent at company locations and 1.7 percent system-wide for the third quarter ending October 30, 2008.

“Over the last five years we have successfully restructured our business model and we’re seeing the pay off through consistent sales increases and new development deals,” said Bruegger’s CEO Jim Greco. “We’re looking to do even better in 2009.”

Professor and Chair of Boston University’s Marketing Department and renowned expert on Franchising

The DD Independent Franchise Owners Group, which represents the largest association of Dunkin’ Donuts franchise owners in the U.S., is pleased to announce the addition of Professor Patrick Kaufmann to its Board of Directors.

Kaufmann holds a BA in Economics from Georgetown University, a JD from Boston College Law School, an MBA from Wharton, and a Ph.D. in Marketing from Northwestern University. Prior to joining Boston University, he was on the faculty of the Harvard Business School and Georgia State University, and practiced law in Boston.

Professor Kaufmann is on the executive committee of the International Society of Franchising; he chaired the organization in 1992. He has also served as a member of the Education Committee of the International Franchise Association and is a member of the New England Franchise Network.

Kaufmann says, “I am delighted to be joining the DDIFO Board and to have the opportunity to work with the Dunkin’ Donuts franchisees.  I look forward to assisting the DDIFO Board in its efforts to help franchisees operate profitably in this difficult economic environment.”

Kevin McCarthy, the Chairman of the Board of the DDIFO, echoes Professor Kaufmann’s comments, “We are delighted to have Professor Kaufmann join our Board. Pat’s impressive professional background, combined with his collaborative and creative business style, makes for an excellent strategic fit with both the mission and franchisee membership of DDIFO”.

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.