IFA Insider, Volume 13, Issue No. 4, Monday, February 18, 2008
Franchising’s Growth, New Leaders Highlight 48th Annual Gathering
Franchised small businesses generated more jobs between 2001 and 2005 than several of the nation’s major economic sectors, including durable goods manufacturers, according to preliminary new research unveiled during IFA’s 48th annual convention last week. Conducted by PricewaterhouseCoopers, the Economic Impact of Franchised Businesses study soon to be issued by the IFA Educational Foundation builds upon an inaugural study released in 2004.
Attracting nearly 3,000 franchise professionals to Orlando, the gathering featured prominent speakers including former U.S. Army Gen. Colin Powell and Marriott Corp. Chairman and CEO J.W. “Bill” Marriott, Jr. Powell challenged the industry to embrace its role as active contributors to the U.S. economy while Marriott praised the industry for its leadership and dedication to the principles of free enterprise.
PostNet International Franchise Corporation CEO Steven J. Greenbaum, CFE, assumed the chairmanship of the organization, accepting the gavel from outgoing Chairman Michael Isakson of ServiceMaster Clean. Greenbaum, a long-time member and supporter of IFA, has held numerous leadership positions in the organization over the past 16 years. He also serves on the board of directors of the HealthStore Foundation, a non-profit organization using the franchise model to deliver medical assistance to African countries. Coincidentally, a PostNet area franchisee, John Francis, will also serve in a leadership role during the coming year as chairman of the group’s Franchisee Forum.
Five leading franchise professionals also assumed their posts on IFA’s board of directors: Two Men And A Truck CEO Melanie Bergeron, CFE; Valpak Pres. Joseph H. Bourdow, CFE; Sylvan Learning Pres. and CEO Peter Cohen; McDonald’s U.S. Vice Pres. of Franchising John A. Kujawa; and PIP Printing & Document Services Pres. Catherine Monson.
The 600-page research report, which will be available in final form at www.franchise.org in March, found that while growth in the number of establishments was only slightly greater than other business sectors, the increase in jobs, payroll and economic output was significantly higher. Direct economic output of franchises grew by more than 40 percent to $800 billion in 2005 from $625 billion in 2001, while economic output of all businesses grew by 26 percent to $20.1 trillion from $16 trillion.
Employment generated by franchises grew by more than 12 percent to 11 million in 2005 from 9.7 million in 2001, while jobs in all businesses grew by only 3.5 percent, from 132 million to 136.7 million.
When the purchases of products and services by franchised business from other businesses are included in the calculations, franchises generated $2.3 trillion of economic output in 2005, 11.4 percent of the U.S. private-sector economy. This combined economic activity generated 21 million jobs for Americans, comprising 15.3 percent of all private-sector jobs.The nation’s more than 900,000 franchised businesses, including both establishments owned by franchisees and those owned by franchisors, amounted to slightly more than 3 percent of all business establishments in 2005.
IFA’s Highest Awards Bestowed Upon Four Leading Franchise Executives
IFA honored four industry leaders with the association’s highest awards during its recent annual convention. These top awards recognize individuals for outstanding achievements and contributions toward the advancement of franchising.
Charlwood Pacific Group Chairman and CEO U. Gary Charlwood, CFE, was honored with the Hall of Fame award for his more than 30 years of achievements in the industry. After working as an airline representative and in real estate, German-born Charlwood created the UNIGLOBE Travel franchise. Today, the companies he chairs represent more than 1,700 franchised locations worldwide.
Entrepreneur of the Year Award recipient Brian Scudamore founded Vancouver-based The Rubbish Boys when he was 18. The company became 1-800-GOT-JUNK? in 1999. As CEO, Scudamore has guided his company to become the world’s largest franchised junk removal service with more than 330 locations in three countries, 45 U.S. states and nine Canadian provinces.
Jeanne Kennedy, chief operating officer of Kenex Corp., dba Meineke Car Care Centers Inc., was honored with the Bonny LeVine Award. Kennedy’s leadership and determination impressed founder Sam Meineke who named her the first franchisee in 1973. By 1990, Kennedy had expanded her family holdings to include 18 establishments, the most held by any Meineke franchisee at the time.
Gerald A. “Gerry” Fernandez was named the fourth recipient of the Ronald E. Harrison Award, which recognizes contributions to increasing diversity in the industry. Fernandez spent more than 10 years in various leadership positions in foodservice and then leveraged his position as a loaned executive of General Mills to found the Multicultural Foodservice & Hospitality Alliance in 1996.
Educational Foundation, Women’s Franchise Committee Name Honorees
Richard Rennick, CFE, founder and past CEO of American Leak Detection received the William Rosenberg Leadership Award. Rennick served as IFA chairman in 2005 and headed the IFA Educational Foundation in 2004. In 1997, he was named IFA's Entrepreneur of the Year.
Eva Crosland, manager of franchise development of Gymboree Play & Music, was named recipient of the Irl Marshall Certified Franchise Executive Scholarship Award during the event. Crosland is responsible for awarding qualified applicants franchises, conducting “Discovery Day” presentations and assisting franchisees with operational and management issues.
Cheryl R. Babcock, CFE, founding director of Nova Southeastern University’s International Institute for Franchise Education, was honored by IFA’s Women’s Franchise Committee with its Crystal Compass for her leadership in franchise education. Babcock designs and develops executive educational programs, leadership courses and teaches undergraduate franchise management classes.
Grassroots Political Involvement Gains Momentum
As IFA’s stature as a leading business organization grows, its focus on the legislative, regulatory and political arenas intensifies. This intensity was further stressed by incoming Chairman Steve Greenbaum, CFE, who, in his acceptance remarks, challenged association members to strive to raise the visibility and effectiveness of the organization to new heights. Noting the current economic situation, he told attendees, “The best answer to economic stimulus is franchising.”
IFA Vice President of Government Relations David French, in remarks to the convention, addressed a number of key issues in which the association is stepping up its activity. Convention attendees also signaled their willingness to participate politically with financial contributions to the association’s political action committee. FranPAC's Silent Auction set a new convention fund-raising record of $17,500.
More Than 100 Franchise Executives Achieve Certification
On Feb. 11, more than 100 franchise executives received the Certified Franchise Executive designation during IFA’s annual convention. Currently, more than 600 candidates are enrolled in the program. Since its inception in the early 1980s, more than 400 franchise executives have received the CFE designation.
The program is conducted by the Institute of Certified Franchise Executives, a subsidiary of the IFA Educational Foundation. The franchising-specific program provides individuals with the opportunity to expand knowledge, gain industry recognition and experience peer-level networking. Once an individual completes the prescribed course of study and meets other requirements, he or she is eligible to hold the CFE designation.
Those receiving the CFE designation are: 4Refuel’s Norm Bogner; @WORK’s Robert Mitchell; ACI Franchising’s Stan Friedman; Jamie Adams; American Leak Detection’s Shawn Elmore; Annex Brands’ Sean Hilly and Jack Lentz; Asiawide Franchise Consultants’ Christine Cheung; Berlitz Intl.’s Charles Gilbert; BrandChise’s Marc Plaisted; Bearclaw Coffee’s Debra Scroggins and Doug Scroggins; Jennifer Bonham; Kenneth Brownell; Buffalo Wild Wings’ Michael Sullivan; Candy Bouquet’s Carter Malloy; Century 21 Real Estate’s Mark Westphale; Checkers Drive-In Restaurants’ Brian Pearson; The Cleaning Authority’s Christine Harris and Iris Wexler; Comfort Keepers’ Larry France; Coverall’s Kevin Derella; Jenny Craig’s Laura Irvin; DCAP Management Corp.’s Curt Hapward; Desert Sun’s Mark Willard; Doo Care – DC’s Ray Hays; Dunkin' Brands’ Mark Belanger, Grant Benson, Dan Edwards and Robert Gerstenfeld; The Dwyer Group’s Steven Cox, Nathan Haffke and Larry Ross; Emerald City Smoothie’s Jim Baskett; The Entrepreneur Authority’s Rick Upton; The Entrepreneur's Source’s Brian Miller; Expetec’s Dale Bain; ExxonMobil’s Lisa Peters; Faegre & Benson’s Mary Beth Brody, William Killion and Brian Schnell; Famous Dave's Mark Lyso; FASTSIGNS’ Trent Lensch; Fishman Public Relations’ Brad Fishman; FOCUS Brands’ Frank Garrido, Kathryn Rookes, Philip Russo, Steve Sweetman and Mark Whittle; The Franchise Network’s Anne Barr; FRANdata Corp.'s Darrell Johnson; The Frith Group’s Russell Frirth Jr.; Great Clips’ Rob Goggins; Greenbaum Mktg. Communications’ Martin Greenbaum; Hart, King & Caldron’s Karen Crouch; HomeTask Handyman Service’s Jerrod Sessler; HomeVestors’ Jason Killough; Horne LLP’s J. Bruce Journeay; Huddle House’s Bill Hodges; iFranchise Group’s John Siebert; International Dairy Queen’s Kerry Olson; Jack In The Box’s Pamela Carlson and Cindy Person; JIMINI Foods’ Kerwin Tan; Johnny Rockets’ Brett Babick; Donna Johnson; Marci Kleinsasser; LearningRx's Brett Gibson, Kimberly Hanson and Tanya Mitchell; Link Staffing’s Brandon Campbell; Management 2000’s Robert Gappa; Matco Tools’ Charles Bergen; MatchPoint’s Nigel Mayne; Milikin Corp. "Fiorgelato"’s Ricardo Cuna; Mr. Rooter Plumbing’s Jeffrey Moody; Nathan's Famous’ Randy Watts; Planet Beach’s Jennifer Spizale; Plave Koch’s Lee Plave; PostNet's Jason Tragesser; Popeyes Chicken & Biscuits’ Greg Vojnovic; PR Gaz Haus’ Siu Ping Par; Proforma’s Paul Baron; PuroSystems’ Julie Champagne; Qdoba Restaurant‘s Todd Owen; RE/MAX’s Mark Baker; Raising Cane's Chicken Fingers’ Jamie Griffin; Regal Nails Salons & Spa’s H. Book Hopkins; Rita's Water Ice’s Tom Spadea; Safeguard Franchise Systems’ Lauren Pickwoad; César Saldivia; Schakolad Chocolate Factory‘s Edgar Schaked; Michael H. Seid & Associates’ Keith Carleton and Marla Rosner; Don Slifer; Snap-on-Tools‘ Tommy Clark, Carroll Creech and Thomas Kasbohm; Social Franchise Ventures’ Doug Sudell; Sprokkit’s Scott Moffitt; Sylvan Learning’s Jenelle Kahrl, Rebecca Hadaway, Tammy Malone, Leah Maurer and Michele Richardson; Toni & Guy Hairdressing Academy’s Claire Billingsley and Tamara Dickerson; Tormo & Asociados’ (COLOMBIA) Manuela Velasquez; Trick Shots’ Jeannine Zuback; UPS Store‘s Bill Anderson; Valpak's Joe Bourdow; Value Place’s Paul Mangiamele and Gina-Lynne Scharoun; Volvo CE Rents’ Julie Rubio; Young Rembrandts’ Madeline Morgenroth; and Yum! Brands’ Jim Avery and Miles Staley.
Franchising Community Mourns Passing of Key Members
Lois Marshall, 60, founder of The Marshall Group and Anthony A. (Tony) Martino, 75, founder, chairman and CEO of Maaco Collision Repair & Auto Painting passed away in late January.
Marshall, a long-time supporter of the IFA Educational Foundation, was one of the top franchise recruiters for more than 30 years and responsible for the placement of many executives. Her children Joelle, Justin and Jordan have requested in lieu of flowers or cards that contributions be made to the foundation where a scholarship is being created in her name. Details are available by contacting Rhonda Sanderson of Sanderson & Associates, Ltd. at Rhonda@sandersonpr.com. For those who wish to contact Joelle, e-mailed messages will be welcomed at JoelleSilveira@sbcglobal.net.
Martino began his career in 1959 with a repair shop specializing in automatic transmission repair named AamcoTransmissions, an acronym for Anthony A. Martino & Co., to top Yellow Page listings, and began franchising in 1962. He sold his interest in the company in 1967 after guiding it to industry leadership. In 1972, he sensed another opportunity and opened a pilot Maaco Auto Painting & Bodyworks center, positioning the brand between low-cost auto painters of lesser quality and expensive dealership work. Today, nearly 500 Maaco facilities repair and paint more than 700,000 vehicles a year. The family requests in lieu of flowers that donations be made in his name to the charity of one's choice. Online remembrances may be sent to email@example.com; cards may be mailed to his wife, Karen Martino, in care of MAACO Enterprises Inc., 381 Brooks Road, King of Prussia, Pa. 19406.
Welcome New IFA Members
Franchise Systems: Amazinflates, Tampa, Contact Ronnie Rivera; Assisting Hands Home Care, Nampa, Idaho Contact Richard B. Rennick, CFE; Auto Driveaway, Chicago, Contact Rodney Ruth; Boston Market, Golden, Colo., Contact Bruce V. Bloom, CFE; College Hunks Hauling Junk, Kensington, Md., Contact Nick Friedman; eSpider Squad, Yorkville, Ill., Contact Shawn M. Casey; Franktitude, Miami, Contact Bruce Holzman; Gifford's Ice Cream & Candy Co., Silver Spring, Md., Contact Neal Lieberman; My Coffee Franchising, LLC, Springfield, Ore., Contact Travis Miller; Natures Table Franchise Company, Orlando, Contact Krista Laskos; Papa Romano's, Commerce Township, Mich., Contact Gary McCausland; People Impact Consulting (Asia) Ltd., Kowloon, Hong Kong, Contact Cherie Cheung; Red Roof Inns, Inc., Columbus, Contact Michele Davis; and Whippersnappers Studio, Bend, Ore., Contact Lisa Flynn.
Supplier Forum: BDO Seidman, Dallas, Contact Catherine Fox-Simpson; Franchise Expo Hawaii, Mililani, Hawaii, Contact Phillip G. Kuchler; HindSite Software, St. Paul, Contact Leah Holmgren; MARCOM, Riyadh, Saudi Arabia, Contact Haitham Saleh; Oasis Outsourcing, West Palm Beach, Fla., Contact Tim Chapnick; PINK Magazine, Atlanta, Contact Bridget Cody; Precision Mailers, Fort Worth, Contact Mark Mauser; Profit Soup, Seattle, Contact Barbara Carper, CPA; Royalties, Inc., Kennesaw, Ga., Contact Becky Arnold; Wellworks, Boulder, Contact John Meyer; Where 2 Get It, Inc., Anaheim, Calif., Contact Vickie McGee; and WingFinance, Memphis, Contact David T. Bell.
The IFA Insider is written, edited and produced by Laura Fenwick, Terry Hill, Jodi McCray and Hilary Strahota.
IFA Insider newsletter is published bi-weekly (24 times a year). Correspondence: International Franchise Association, 1501 K Street, N.W., Suite 350, Washington, D.C. 20005, (202) 628-8000. Copyright 2008 International Franchise Association. Contents of this publication may not be reproduced, stored in a retrieval system, or transmitted in any form or by any means (electronic, mechanical, photocopying, recording or otherwise) without prior permission of the publisher. The International Franchise Association sends out email and fax updates and opt-in email newsletters to its membership. If you would no longer like to receive one or all of these communications follow the "Unsubscribe" instructions found at the bottom of each email, fax or newsletter. For further questions, please call our Membership Service Department at 202-662-0765 between the hours of 9:00 a.m. and 5:00 p.m. Eastern, Monday-Friday or email firstname.lastname@example.org.