Business Opportunities Journal | March/April 2014

MARCH-APRIL 2014 | ISSUE 530

2014IFA CONVENTIONCOVERAGE

P O S I T I V E

GROWTHI N 2 0 1 4

CALIFORNIAHELPING SMALL

BUSINESSSome things to considerwhen opening a business

Golds Gym introducesAnti-Resolution campain

Franchise Industry addsover 20,000 jobs

New tech may revolutionizethe restaurant industry

Small Business may see more audits in 2014

2 Business Opportunities Journal March April 2014 www.boj.com

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PUBLISHERMuir Capital, Inc.

EDITORIALEditor: Mark Adkins

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Email: [email protected]

CONTRIBUTORSAshley Hause

Ian Gere

Marren Roy

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The ToronTo STock exchange: A Big Opportunity for Small Business

rags-to-riches Billionaire Sam Wyly

. . . .ValPak Turns 40 . . . .Peer-to-Peer Lending . . . .help for Small Business

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Big winners of past lost in 08 . . . .Resale stores flourish. . . .Some businesses thrive when the economy dives . . . .

09 Bleak for Venture Capital. . . . Masters in renewable energy

plus+Boom times for the repo Man. . . .Refitting green vehicles 44. . . .Fair Trade wine. . . .Foreclosure websites. . . .Home prices dive in California

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Pet RelatedOpportunitiesSpecial Report Section

www.boj.com March April 2014 Business Opportunities Journal 3

BUSINESS AS USUAL

14Business Prep 101

The most important aspect of any business is its customers, and it is no different for franchise restaurants.

18Hot Off The Press

These are franchise opportunities that are either very new, recently registered in certain key states, or are making news right now.

20Franchise News

Find out what is going on in the Franchising world. Stories about specific franchises big and small.

31More Audits in 2014

Tax requirements will be different for each entity, so it is important that each individual understands their obligations.

CONTENTS

March/AprilFeatures

Positive Growth Predicted in 2014Bank of the West Chief Economist Scott Anderson, PhD says that for the first time in six years, consumer spending will lead U.S. economic growth as we enter 2014.

4

California is Helping Small BusinessThe California State Board of Equalization has begun the process of releasing over $296 million to small-business owners.

10

Restaurant Industry Revolutionized?Uptown Network has been working on a training system that they say can revolutionize the hospitality industry.

26

2014 IFA Convention CoverageBusiness Opportunities Journal highlights the key moments of this years IFA Convention.

6

Golds Gym Anti-Resolution CampaignGolds Gym will help consumers find out if they are resolution dependent with a free 7-Step Anti-Resolution Action Plan.

24


added and unemployment continues to decline and banks will become more willing to lend to consumers and consumer credit will expand.

Better income gains will be a result of several factors including: no payroll tax hike in 2014, steady low inflation and nominal wage gains in a tightening labor market and, in some cases, wages being bid up for highly skilled workers in low supply.

As real income gains continue to recover, real income growth at these rates should easily support real consumer spending of 2.6 percent in 2014 a 30 percent improvement over 2013, said Anderson.

CAPITAL SPENDING IMPROVEMENT Taking cues from the consumers, business confidence and small business spending will recover.

U.S. MANUFACTURING AND EXPORT REVIVAL U.S. exports are expected to see the best growth since 2011, and United States manufacturers are performing better than the overall economy. Industrial production growth has been much stronger during this economic expansion than in the early 2000s. The U.S. also benefits from lower energy prices and higher productivity, allowing manufacturers to compete better in the global marketplace.

RETURN IN GOVERNMENT SPENDING Austerity measures taken by the government in recent years are expected to diminish. State and local governments are beginning to spend more as tax revenues improve. Another federal government shutdown nor

EconomistPredictsPositiveGrowthIn 2014

As real income gains

continue to recover, real

income growth at these rates should easily support real

consumer spending of 2.6 percent in 2014 a 30 percent

improvement over 2013

Bank of the West Chief Economist Scott Anderson, PhD says that for the first time in six years, consumer spending will lead U.S. economic growth as we enter 2014. Strong exports, capital spending and a recovery in government spending will play a large role in 2014 economic growth.

We are, at last, leaving the desolation of the Great Recession, said Anderson, who is currently ranked the fourth best economic forecaster of U.S. GDP by Bloomberg News over the past two years. Prospects for the U.S. economy are particularly bright for 2014, as all major sectors of the economy will contribute to U.S. growth. Job creation is finally accelerating as confidence among businesses large and small has returned, wealth gains are robust, exports are rising and drag from sequestration and Washington in-fighting is set to diminish.

Anderson sees unemploy-ment have a steady decline through 2014 to 6.6% and

potentially create the first challenge for incoming Fed Chairwoman Janet Yellen: how to manage interest rates during a rapidly falling unemployment rate and stronger job growth.

The Feds unemployment threshold of 6.5% for raising rates will be tested in 2014, Anderson said. Although strong economic growth might seem like a nice problem to have, Janet Yellen will have to manage the markets interest rate expectations carefully by either strengthening forward guidance, for example lowering the Feds unemployment threshold to 6.0% early in 2014, or tele-graphing a tightening cycle sooner than anticipated on stronger employment and economic growth.

Anderson reveals his key sector growth observations:

THE CONSUMER AS BELLWETHER With consumer deleveraging in the past and debt-service burdens at record lows, there will be fewer constraints on borrowing and spending. An estimated 2.6 million new jobs will be

ECONOMICSPOTLIGHT

Story by Ian Gere


ECONOMICSPOTLIGHT

a crisis over the federal debt ceiling is projected, and there could be a surprising benefit as federal spending constraints are eased.

HOUSING MARKET RECOVERY REMAINS INTACT The housing market will continue to recover, although affordable housing and rising mortgage rates will remain a headwind in 2014 as the Federal Reserve Board ends quantitative easing. After a 17.5% gain in 2013, housing starts will rise 12.3% in 2014. Appreciation of home prices will slow sharply on higher interest rates. Housing affordability will be a bigger constraint, especially in high-priced markets like the coastal regions of California, while marginal buyers will be forced into lower-priced homes.

Despite all of the optimism, Anderson also shared factors that could slow the U.S. recovery in 2014:

Emerging Market Instability Capital outflows and financial instability could hit the economies of emerging markets, which in turn would exacerbate Europes debt and banking problems. A contraction in Europe could reignite a banking crisis.

Geopolitical Discord Middle Eastern and East Asian geopolitical differences could escalate into armed conflict, which could also derail economic expansion in the U.S.

An Ineffective Government Political discord in Washington over government spending or the debt ceiling could weigh on consumer and business confidence, eventually leading to panic by Treasury bond investors which could trigger a rise in interest rates, a weaker dollar and a substantial sell-off of stocks.

Federal Reserve Growth Strategy Actions by the Federal Reserve to end the third cycle of quantitative easing could create an unexpectedly large uptick in long-term interest rates that would negatively impact the housing market, business spending and purchases of durable goods like autos.

We are, at last, leaving the desolation of the Great Recession


IFACONVENTION

COVERAGE

Benetrends Financing Program for IFA Members

Benetrends has announced the creation of a new $100 million franchise financing program. As the trusted leader in franchise funding, the company

has created this program to help International Franchise Association (IFA) franchise members provide candidates with access to capital for new location

development.One rapidly growing franchise, Hand & Stone, is the first franchisor selected

by Benetrends to participate in the new fund. The spa franchise has been provided with $10 million in initial capital to assist in the growth of the

franchise.Benetrends is excited to now provide franchisors and their franchisees

access to the critical funding needed to expand their current operations or purchase their first franchise, said Rocco Fiorentino, president & CEO,

Benetrends, Inc. Were pleased to award Hand & Stone the first $10 million from the new fund as they look to meet their future development needs

following their record-setting growth in 2013. The president and CEO of Benetrends, Rocco Fiorentino will be in New Orleans to participate in the annual IFA convention taking place February 22-25.Benefits for the selected franchisors and franchisees include direct access to capital, a simplified qualification process, dedicated loan officers from application to closing, loan proposals within 48 hours of receiving initial application, and loan commitments within 10 business days of receiving the loan package.Capital access challenges are going to affect every franchise systems unit expansion for the next few years, said Bob McQuillan, Hand & Stone vice president of franchise development. The days of building relationships with preferred lenders in advance of expected loan applications are gone and were now experiencing a paradigm shift in the ways franchisors and lenders interact. A fund like Benetrends will continue to allow brands such as ours to grow organically and bring in best-in-class franchisees and operators.

In addition to the new financing program, Benetrends also offers funding options for entrepreneurs to help secure capital needed for a small business or franchise. The company started the 401(k)/IRA tax-deferred and penalty-

free rollover process over 30 years ago, in the process creating more than 85,000 jobs with $4billion in retirement assets invested in Americas small

businesses. The company also offers a wide range of loan options for every business need, including SBA loans, equipment leasing, merchant cash

advances, securities-backed lines of credit, and more.Part of ensuring sustained franchise growth across the country includes

offering access to strong, franchise-focused lending programs such as Benetrends new $100 million fund, said Steve Caldeira, president and CEO,

International Franchise Association. In doing so, we are providing both existing and prospective franchisees with the tools and financial resources

they will need for long-term growth and success.

Story by Ian Gere

Photo courtesy: International Franchise Association



the staff will demonstrate the speed of the financing process using LendEdge. Franchisors will be able to learn how their franchisees can use the online tool to obtain financing for equipment leasing, business loans, working capital, location remodels, store acquisitions, and more.

LendEdge was designed around the way franchisees want to access financing today. Its about convenience, agility, and being able to choose from a range of financing options, said Direct Capital Senior Vice President Stephen Lankler. I think franchisors will be amazed to see how simple we have made the lending process.

Franchise Fundingat IFA Convention

One of the nations leading franchise lenders, Direct Capital, is urging franchisors and franchisees to think outside the bank if they are seeking fast and affordable financing. This will be their core message at this years International Franchise Association (IFA) Convention, taking place in New Orleans February 22-24.

There are many options beyond banks that can meet individual needs more precisely...

The company is planning to present the advantages of non-bank funding using their digital finance platform called LendEdge during a conference roundtable discussion being hosted at the convention.

The IFA Convention is one of the industrys largest meetings of established and emerging franchisors and vendors. The event attracts executives from

national brands such as Dennys, Dominos and Sonic, as well as emerging brands.

Eric Renaud, senior vice president of portfolio risk management at Direct Capital, will be participating in the roundtable discussion titled Capital Solutions for Franchisors and Multi-Unit Franchising. This discussion is scheduled for February 25, and will advise franchisors and franchisees about financing options available for expansion, operations, and other necessities.

The fact is that banks continue to inadequately serve the lending needs of franchisees, Renaud said. A recent survey showed that only 27% of small businesses are successful in securing a bank loan. Thats insufficient. There are many options beyond banks that can meet individual needs more precisely, offer better terms and more responsive service. Im looking forward to helping introduce the audience to their best financing options.

In addition to the roundtable discussion, Direct Capital will be displaying LendEdge, their digital lending platform. By using iPads,

IFACONVENTIONCOVERAGE

Story by Ian Gere


FRANCHISE NEWS

IFACONVENTION

COVERAGE

companies in the initiative have agreed to offer discounts and benefits to honorably discharged veterans

Companies HelpVets Franchise

Last week in New Orleans, the International Franchise Association (IFA) celebrated its 49th annual convention with record attendance of almost 3300 franchise executives. Industry heads of brands of various companies such as Two Men & A Truck, Lawn Army, Home Instead, Yellow Van Handyman, Valvoline, Menchies, UPS Store, and Jersey Mikes Subs were all on hand. Leaders from companies such as these gather to celebrate awards, collectively educate the industry, and share the best practices for their business. As usual, they were flanked by franchisees of their systems and supplier vendors that support the franchised locations.

Over 580 brands make up the membership of the VetFran initiative, including HomeTask. They were recognized for their support which has enabled some 5,200 veterans to become business owners and job creators by owning franchises. Since 2011, companies in the initiative

have agreed to offer discounts and benefits to honorably discharged veterans to open their own franchise locations. Many executives of franchises participate because of their respect and appreciation of the US military forces, who keep our land safe and allow the free spirit of American business to live and thrive.

HomeTask offers a large discount within VetFran, taking off one third of the initial franchise fee for veterans who wish to open a HomeTask branch. This discount translates into a big effect for owners that may otherwise not be able to afford to own their own business. For those who qualify at the higher rate, they are able to repay themselves and see their ROI more quickly, which ensures a higher likelihood of success for their business.

VetFran was founded in 1991 by then IFA Chairman, Don Dwyer, Sr. (USAF, Ret.) to support veterans returning from service.

Story by Ian Gere


IFACONVENTIONCOVERAGE

IFA Bestows Highest HonorThe International Franchise Associations (IFA) Educational

Foundation has presented its highest honor during their 54th Annual Convention. The William Rosenberg Leadership Award was presented to Jim Squire, CFE, executive vice president and chief development officer of Firestorm. The prestigious award is presented every year to an individual who has made a significant contribution to franchise education, and to the IFA Educational Foundation, through research, teaching, fundraising or other activities or service. The award is named to honor William Rosenberg, founding chairman of the IFA and the founder of Dunkin Donuts.

The first to receive the award posthumously, was Arthur Karp, CFE, one of the co-founders of the Great American Cookie Company, who served as the first chairman of the IFA Educational Foundation. Squire worked as senior vice president of Great American Cookie under Karp, and became a close friend during his tenure.

Squire began in the late 1980s with the foundation, and later as founding chairman of the Institute of Certified Franchise Executives, worked along with many of the industry leaders who have received this award. These included Karp (1990 IFA chairman), Bill Cherkasky,

CFE (IFA executive vice president 1995-1981) Gene Getchell (IFA 1991 chairman) Russell Frith, CFE (IFA 2003 chairman and treasurere 2005-

2009), and Kathryn Morgan, CFE (special advisor to the foundation for education and research), among others.

Jim Squires leadership in the early years of the foundation has been critical to its mission and the growth of the CFE program, which

celebrated its 1,000th graduate during this years convention, said Jerry Crawford, CFE, foundation board of trustees chairman and Jani-King

International Inc. president.

Story by Ian Gere

Squire, who has been a long-standing and active participant in the IFA, is currently a member of the IFA Educational Foundation Board of Trustee, IFAs Franchisor Forum, Franchise Congress, the Franchise Relations and Membership committee, and has served as a member of the IFA board of directors from 1990 to 2001.

Before joining Firestorm, Squire worked as a senior executive with well-known franchise brands HoneyBaked Ham, Great Amercian Cookies, Arbys, Days Inn, and Howard Johnson. He is currently chairman of the Southeast Franchise Forum, chairman emeritus of the Georgia Restaurant Association, a member of the Georgia State Universitys School of Hospitality Industry Advisory Board and president of his Rotary Club. In 1990, he was named Georgia Foodservice Industry Leader of the Year, and honored with the prestigious Georgia Hospitality and Travel Association Chairmans Award in 2003.





CALIFORNIAHELPS SMALL BIZ

VICE CHAIR OF THE CALIFORNIA STATE BOARD OF EQUALIZATION, MICHELLE STEEL, HAS

ANNOUNCED THAT THE BOARD HAS VOTED UNANIMOUSLY TO ELIMINATE THE AGENCYS AUTOMATIC SECURITY DEPOSIT REQUIREMENT

Security Deposit for State Funds Lifted for Small Businesss

Vice Chair of the California State Board of Equalization, Michelle Steel, has announced that the Board has voted unanimously to eliminate the agencys automatic security deposit requirement and begun the process of releasing over $296 million to small-business owners.

This is a great victory for taxpayers and small businesses, said Vice Chair Steel. Ending this program will allow new businesses across the state to keep capital in their pockets, available to invest in their businesses or to support their families, instead of having to send a large security deposit to the state.

The elimination of unnecessary security deposits is the right thing to do, said Teresa Casazza, president of the California Taxpayers Association. This state is a notoriously tough place

to run a business, especially for small business owners who struggle to keep up with Californias costly taxes, fees and regulations. There is simply no need for the state to hold on to millions of taxpayer dollars. We thank BOE Vice Chair Steel and the entire board for voting to return this money to the taxpayers.

Michelle Steel, who heads the Boards Customer Service and Administrative Efficiency Committee, requested that this matter be heard, was responsible for finding a multi-million dollar mistake in the Security Deposit program in 2007, resulting in a return of $42 million to over 5,500 small-business owners whose refunds had been delayed for years. Afterward, Steel changed procedures at the Board to ensure swift review and

Story by Ian Gere

SMALLBUSINESS

OUTLOOK


ENDING THIS PROGRAM WILL

ALLOW NEW BUSINESSES ACROSS THE

STATE TO KEEP CAPITAL IN THEIR

POCKETSreturn of security deposits to taxpayers.

The action taken today by the Board followed staff review of statistics showing the declining benefits of requiring security deposits from taxpayers compared with the cost of administering the program.

Staff will begin to release over $296 million in existing security deposits starting in February of 2014. Over $67 million of this money is in cash and other liquid assets.

Under state law, certain businesses may be required to post and maintain a tax security deposit for the first three years their business operates. The agency obtains these security deposits when a new business owner registers for a sellers permit. Deposits are automatically required for corporations and LLCs.

These security deposits are meant to act as collateral against any potential tax liabilities. However, staff has found that less than 1 percent of security held by the agency is actually applied to liability. The security deposits that are not applied to a liability do not count as state revenue.

With the vote, the Board has eliminated the automatic application of security deposits when registering for a sellers permit. This allows security deposits to be collected for only high-risk accounts, particularly for taxpayers with a history of non-payment. The Board staff estimates the changes to the program will be completed by March 2014. Until then, staff will manually inform taxpayers that a security deposit is no longer necessary.


BUSINESSOPPORTUNITY

The most important aspect of

any business is its

customers, and it is no

different for franchise

restaurants.

Considerations when opening a franchise restaurant.

Business Prep 101It has long been assumed that opening a

franchise restaurant is an easy way to make money. Seemingly a straightforward investment: put up the money, the signage, and start raking in the money. Many prospective franchisees see it as a prepackaged opportunity to be the owner of a business, requiring little more than the pull of a ribbon to roll out and be successful. Yet it is this belief that dooms many new franchise owners, as franchise restaurants can fold just as easily as independent ones. Owning a franchise does offer advantages such as group advertising, established brand equity, and supply infrastructure, there are many factors that must be considered by a potential owner that may result in a failing business. These include location selection and competition, market saturation, and most importantly, the

unforeseen reception by local customers.

The most important aspect of any business is its customers, and it is no different for franchise restaurants. This is why location is such a crucial factor, as customers differ with their respective location. A restaurants name and logo cant be expected to sell itself wherever it opens; it must be placed strategically where

Story by Ian Gere


there is a need or a strong need for its presence or product. As an example, if there is one McDonalds that always has a line, it does not mean that a new one opened down the road will have the

Location is such a crucial factor

same draw and turn a profit. Likewise, before a Subway is opened in a new location, the targeted territory should be scouted for local delis, whose potentially large and loyal customer base could react negatively to the franchises intrusion.

The Founder and CEO of Charlotte, NC-based Chanticleer

Holdings, Mike Pruitt, knows about opening successful and unpredictable locations for existing franchise chains. In just a few short years, his company has built, owns, and operates 7 international Hooters restaurants in countries like South Africa, Hungary, and Australia. While researching locations, we wanted to target places where the Hooters culture with our beach-theme, chicken wings and sports fan atmosphere would be welcomed and embraced as a new addition to the community, said Mr. Pruitt.

However, once building began, Mr. Pruitt realized that local customers wouldnt embrace the establishments

if they were identical to their American counterparts. We knew we couldnt keep the menu the same, he added, so we incorporated local favorites like ribs and steak in South Africa. Then they changed the appearance of some of the stores in order to adhere to local preferences, such as adding vast patios and outdoor seating to the Budapest, Hungary location.

We incorporated local favorites...

Ive learned that while customers needs, tastes, and preferences may change with geography, but their willingness to go where those particular tastes are catered to remains universal, Mr. Pruitt concluded.

BUSINESSOPPORTUNITY

www.boj.com

targetedterritoryshould bescouted


HOT OFFTHE PRESS

Modo YogaModo Yoga is a franchise where the owner will operate a hot yoga studio in a

specified territory. The independent business owner will undergo an 11 month

training program that teaches Modos 7 Pillars. The investment for opening a Modo

Yoga studio ranges from $348,500 to $905,350. There are currently 6 locations in the

United States. However, the business started in Canada, and there are over 65 in

that country.

Burger 21The owner of a Burger 21 franchise will operate a fast casual burger restaurant that

serves lunch and dinner, offering 21 chef inspired burgers, hot dogs, salads, fries,

signature shakes, desserts, a sauce bar, and beer and wine. The total investment to

open a Burger 21 location ranges from $414,495 to $832,595. There are currently 13

Burger 21 restaurants, most located in the southern East Coast.

Energy Efficiency and Sustainability Consulting

The owner of an EES (Energy Efficiency and Sustainability) franchise, will operate

an energy consulting business that provides energy efficiency and sustainability

turn-key retrofitting solutions for light commercial and residential markets. The core

purpose of the company is To build a coordinated network and culture that enables

technology for value-based solutions that positively affect People, Pocketbook, and

the Planet.

Starting an EES franchise ranges from $106,500 to $132,200. There are currently 10

EES locations, mostly within the southern United States.

2Good2B Bakery and Cafe2Good2B is a bakery franchise that offers artisanal gluten, corn, and soy free baked

products, as well as gourmet sandwiches, salads, and breakfast items. The company

offers two models of business. The basic model provides customers with the artisanal

baked good, while the standard cafe will offer these products in addition to soy,

gluten, and corn free meals, as well as organic coffee, tea, and specialty beverages. All

of the products are made fresh daily. The initial investment for a 2Good2B franchise

ranges from $265,000 to $728,600 for a the basic model business, and from 426,000

to 955,450 for the standard model. There is currently one 2Good2B bakery, located in

Encinitas, California.

HOT OFF THE PRESSOur latest feature! These are franchise opportunities that are either very new (hot off the press), recently registered in certain key states, or are making news right now. An exclusive BOJ.com feature.

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FRANCHISE NEWS

Proposed Bill May Hurt Small Business

The United States House of Representatives is set to vote on a bill which may inhibit small business innovation. The National Small

Business Association is urging lawmakers to oppose the Innovation Act because of the rushed process in bringing the bill to the floor.

Additionally, there was lack of small-business input throughout the process, and there are several provisions that create an undue or

unfair burden on small, innovative firms.

NSBA supports reasonable efforts to protect small businesses from unnecessary and unwarranted patent infringement actions, stated NSBA President and CEO Todd McCracken. Unfortunately, this bill goes far beyond what we believe is reasonable and will ultimately do more harm to small inventors than it does to reduce the number of frivolous lawsuits faced by small firms.

The act includes provisions that desperately need revisions. As it stands, the bill will expand the already high burden on individual inventors and legitimate small-business patentees, making it more difficult to raise much-needed capital and grow their companies.

The NSBA has concerns with how fast the legislation has been brought to the floor, leaving little time for further discussion and

analysis of its potential impact on Americas most vibrant and innovative sector, small businesses.

Small firms produce five times as many patents per revenue dollar as large firms and cover more original and broader

technologies than large patenting firms, yet our input has been largely ignored, stated McCracken. This is too important an issue

for too important a sector of our economy to push forward without a more detailed analysis.

FRANCHISE News

Story by Ian Gere


look forward to further investing and infusing additional marketing and capital into these fantastic locations.

Most recently, the National Buffalo Wing Festival in Buffalo, N.Y. has awarded Quaker Steak and Lube as the festival favorite for the second straight year. Additionally, the franchise was also recognized for its Triple Atomic wing sauce, winning first place in the Traditional Extra-Hot sauce category.

Hot Wing FranchiseQuaker Steak & LubeContinues to Grow

Visit: www.boj.com

Quaker Steak & Lube, the award-winning casual-dining franchise, has announced it will be acquiring five restaurants in North Carolina, Indiana and Virginia. 3G Management was the previous owner and operator of the Quaker Steak & Lube restaurants in Concord, N.C., Fort Wayne, Ind., and Newport News, Harrisonburg and Fredricksburg, Va. These locations will now be corporate owned and operated beginning December 12, 2013

We look forward to further investing and infusing additional marketing and capital into these fantastic locations.

We are looking to have a stronger corporate presence in these key markets; this represents an important step forward for our brand as we continue with our national expansion plans, said John Longstreet, chief executive

officer of Quaker Steak & Lube. We are committed to operational excellence at The Lube, and this will allow us the opportunity to impact overall brand performance in same store sales.

The absorbing dcor which includes race cars suspended from the ceiling, motorcycles, Corvettes, and gas station memorabilia, in combination with the craveable food and SuperCharged events, has led to a cult-like following for Quaker Steak & Lube for over 39 years. The company has experienced significant growth in the last year with 8 restaurant openings, which represents a 15 percent increase from the previous year, and a 10 percent increase system wide. The company now has over 60 locations in 20 states and in Canada.

We sincerely thank 3G Management and their partners for their hard work and dedication in helping to grow Lube Nation; they have set a terrific foundation and have cultivated a loyal following of Lubies in each of these respective markets, added Longstreet. We

FRANCHISENEWS

Story by Ian Gere


FRANCHISE NEWS

FRANCHISE NEWS

It was reported earlier this month that the franchise industry added 25,060 jobs in October.

Franchise IndustryAdds 20,000 Jobs

It was reported earlier this month that the franchise industry added 25,060 jobs in October, which represents 20 percent of all new jobs for the month. While job creation hit a 4 month high, the International Franchise Association (IFA) announced that the Franchise Business Index (FBI), an index of economic health of the franchise industry, was unchanged in October. Although components of the index that show employment and sales in franchise industries showed small gains, both measures of small business optimism and credit conditions declined.

Franchise businesses continue to outperform the economy, however the ongoing partisan gridlock associated with the government shutdown and debt ceiling debate, the lack of a long-term growth agenda and the continued anti-business

regulatory environment is holding back what we believe would otherwise be a more robust recovery for the franchise and small business community, said IFA President & CEO Steve Caldeira.

After revising last months data for individual components of the index, the September value of the FBI was revised slightly, showing gains of 0.3 percent over August.

The FBI was developed on behalf of the IFA Educational Foundation by HIS Global to provide timelier tracking of the growing role of franchise businesses in the U.S. Economy. The Franchise Business Index combines indicators of growth in the industries where franchising has a strong presence, and measures of the general economic environment for franchising.

Story by Ian Gere


FRANCHISENEWS

Tutoring Business Growth Exceeds Hiring Capabilities

With high school and college becoming more competitive each year, tutoring has become big business. Varsity Tutors, the premier one-on-one academic tutoring and test preparation provider, is seeking 1,000 additional tutors. Operated remotely, the company has grown from only two tutors at the inception in 2007 to over 3,300 tutors today. The additional 1,000 employees being sought will increase Varsity Tutors reach in the 25 major metropolitan cities it serves nationwide. Chuck Cohn founded the company when he was just 21 years old, attending Washington University in St. Louis. Six years later, Varsity Tutors is one of the fastest growing companies in the education industry. The company provides customized, one-on-one tutoring for all subjects from STEM to the humanities, and gives test preparation for all standardized exams.

The growth of Varsity Tutors is especially impressive considering the high standards that tutors must meet, with only the highest caliber of

applicants selected. Besides having extensive knowledge of the test or subject material, applicants must also have excellent communication

skills to effectively teach the students.Our number one goal and the foundation of our success relies

upon identifying the highest caliber tutors possible, said Chuck Cohn, Founder and CEO of Varsity Tutors. Being able to contract one thousand

new tutors is an accomplishment we are very excited to have achieved, but what we are most proud of is that every person we accept meets our

high standards. This way, each client with whom we work can have full confidence in their tutor and know weve already done the hard work of

extensively vetting that individual.In order to ensure the safety and success of all students, tutors are

required to complete a background check, as well as provide a record

Story by Ian Gere

of academic excellence, outstanding communication skills, and prior teaching or mentoring credentials.

In addition to the companys expansion, Varsity Tutors recently launched the comprehensive Varsity Learning Tools platform. This free online resource provides tens of thousands of practice test questions, diagnostic exams, and digital flashcards across 95 academic subjects and standardized tests. These educational tools area available to the public, completely free, and designed to supplement a students coursework or the lesson plan created by a personal tutor. This platform also included free classroom assessment software that educators may use to create customized tests, share them with classes, and monitor and track progress of individual students.


FRANCHISESPOTLIGHT the

anti-resolutioncampaign

With the holiday season approaching an end, millions of Americans are about to make their annual New Years resolutions. Many of these resolutions are geared towards getting healthier or losing weight. Unfortunately, the majority of these resolutions will fail. In fact, research has shown that 88% of resolutions are never accomplished.

What may be worse is that some people will become so demotivated by breaking their own resolution, they will actually wait until next year to start over again, repeating the cycle. Because of these failings, Golds Gym, the leading health and fitness gym franchise is launching their Anti-Resolution campaign, aimed at breaking the endless cycle of weight loss resolutions. This will give consumers a better roadmap to success one that results in healthy, lasting change.

With help from some of the worlds top fitness experts, Golds Gym will help consumers find out if they are resolution dependent with a free 7-Step Anti-Resolution Action Plan. This plan is designed to help

Golds Gym will help consumers find out if they are resolution dependent with a free 7-Step Anti-Resolution Action Plan.

Diets dont work.

Instead, you must

look at the choices

you make on a daily

basis...

Story by Ian Gere


break consumers from their resolution habits and tendencies, allowing them to put a long-term plan into place to find success.

Diets dont work. Instead, you must look at the choices you make on a daily basis in the areas of nutrition, exercise, sleep and stress management and make a sustainable plan to change your ways, advised Robert Reames, Golds Gym Fitness Institute Member. If you do this right youll only have to do it once and youll never have to re-visit this concept again. Your daily choices will be automatic ? you will have made the permanent change and altered your perspective to be the healthiest version of you. This 7-Step Action Plan is a great place to start.

The 7-Step Anti-Resolution Action Plan is as follows:

Step One: Create an achievable plan filled with short goals The problem with resolutions is that the minute people falter, or slip on their resolution, they quit, throwing all their progress out the window, saidMike Ryan, Golds Gym Fitness Institute Expert and celebrity personal trainer. Create a short, obtainable goal for yourself I often encourage clients to participate in the Golds Gym 12-Week Challenge and when you achieve your first goal, youre more likely to set another, AND stick with it.

Step Two: Schedule the gym the same way you would schedule an appointment The minute you utter I dont have time, you avoid holding yourself accountable for a trip to the gym, making you more likely to skip the gym the next time around as well, said Adam Friedman, Golds Gym Fitness Institute Expert and celebrity personal trainer. A great workout can be achieved in just 30 minutes, and by putting it on the books, it becomes something thats real, tangible and that you can be held accountable for that day.

Step Three: Understand that fitness is only part of the plan In order to achieve peak metabolism, supplement your workouts with a diet made up of real, whole food, said Robert Reames. Minimize, if not avoid altogether, processed meals and food items. We truly are what we eat. Food is the fuel that runs your engine, so do not compromise.

Step Four: Figure out healthy habits that you actually enjoy To make a lasting change in your life, you need to establish habits that you can enjoy. An easy way to do this is to include family and friends in what you do, saidRobert Irvine, Golds Gym Fitness Institute Expert and celebrity chef. Include your kids when cooking a meal at home its healthier and a great way to spend time with family. You can also spend time with the family as part of a warm up or cool down to your workout routine.

Step Five: Change it up sometimes If you feel yourself getting bored with your workout routine, think about making it fresh again. Switch it up by trying a group exercise class, or working out with a friend, said Ramona Braganza, Golds Gym Fitness Institute Expert and Hollywood fitness trainer. Give yourself a reward when you accomplish a certain number of workouts in a week. Maybe get a foot massage!

Step Six: Add Its time for bed to your regular vocabulary The hours before midnight are almost twice as valuable as the hours after midnight for health. After all, physical change occurs exclusively during sleep, said Eric the Trainer, Golds Gym Fitness Institute Expert and celebrity personal trainer. So get to bed early and wake up to a fitter, healthier, new you!

Step Seven: Anticipate Obstacles There really is no such thing as a perfect plan. Life is unpredictable and the best we can do is to anticipate obstacles and create strategies for coping with them, said Golds Gym Fitness Institute Expert and fitness model Jamie Eason. If picking up your child from school suddenly turns into a two-hour parent/teacher conference, you could end up famished. If you commit to carrying food (like nuts and low-fat string cheese) with you at all times, you wont cave to the temptation to make a quick stop for fast food on the way home.

FRANCHISESPOTLIGHT


REVOLUTIONIZINGRESTAURANT INDUSTRY

UPTOWN NETWORK HAS BEEN WORKING ON A TRAINING SYSTEM THAT THEY SAY CAN

REVOLUTIONIZE THE HOSPITALITY INDUSTRY.

New mobile software may revolutionize restaurant training.

Uptown Network has been working on a training system that they say can revolutionize the hospitality industry. The new mobile product can shrink training expenses by over 80% as well as improve customer service. This new solution is currently in beta testing, and will be made available in January of 2014.

Shulas is constantly looking for ways to improve guest service across our franchise system, said Christian Dammert, Director of Operations for Shulas SteakHouses and Shula Burger. Having an automated, mobile solution for training will save us countless hours and significantly reduce operational costs. Its a win, win, win.

There is an ongoing debate whether mobile devices will replace wait staff, or empower them. Several startups claim that mobile tablets can reduce or replace them. Uptown Network takes another approach and believes that servers should be empowered by technology, not replaced by it. Apple has proven how

this approach works in their retail stores, showing that training is a key element.

In a recent MasterCard survey it was reported that 80% of all restaurant complaints are related to poor service. Education, training, and testing are the root cause of most of these complaints. The National Restaurant Association says that 13,100,100 employees in the U.S. restaurant industry need regular training.

Most restaurants currently use paper or web based training systems. Both have drawbacks as paper based systems are time consuming and error prone, while web based systems require staff to access a PC, either in an office or at a POS system terminal. Both approaches can be very costly, yet neither have been proven to be effective. Uptown Network is the first company to provide an automated mobile solution integrated with the mobile menu and wine list.

Massively Open Online Courses (MOOC) architecture has been touted by Harvard, MIT, Google and other leading

Story by Ian Gere

TECHNOLOGYSPOTLIGHT


MOSTRESTAURANTS

CURRENTLYUSE PAPER

OR WEBBASED

TRAININGSYSTEMS.

BOTH HAVE DRAWBACKS

organizations. It is different than an app or web based architecture in that it is designed from the ground up specifically for training and testing. Uptown Network created a secure MOOC offering within their digital menu app.

Service is a key component in hospitality and a mobile device cannot take the place of interpersonal interactions, said Jack Serfass, CEO of Uptown Network. To turn our tablet based menus into thousands of local and mobile teachers is fantastic. This empowers front of the house staff and dramatically reduces training costs. The real beneficiaries of this new product will be the guests in the restaurants of Uptown Network customers as they will get superior customer service.

In addition to mobile, Uptown Network has considered local and social capabilities. As staff members pass training and tests, they are rewarded with badges that they can post to their social media graphs. All training and testing can be customized to local restaurants and stores. An unlimited number of customized coursework and tests can be created for specific locations or one test can be sent company wide. This new product will be delivered as software as service (SaaS), so there will not be any web servers or software to install.

SAVE TIME, EFFORT AND MAYBE EVEN SOME MONEY ON YOUR TAXES.

VISIT IRS.GOV

Make this your fi rst stopbefore you do your taxes.

Everything you want to know is all in one reliable placeirs.gov. Youll fi nd all the tax information and

forms you need. There are easy online tools to help you calculate your eligibility for tax credits and track

your refund. And its all free. Prefer the phone? Call 1-800-829-4477 for 150 tax topics in English or

Spanish. Either way, you know the information is good because its from the offi cial sourcethe IRS.

irs.gov. See how it can help you.

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4059-IRS_Ads_7x10_couple.indd 10 1/6/09 10:32:39 AM


plans that can take time for the agency to break down. Agent training has been underway in order to deal with these highly-specialized entities, and this could result in business owners having their returns examined more closely, thus potentially leading to more audits.

Most small business owners devote a significant amount of their time and money to operating their businesses, and dont want to spend any of their resources dealing with an audit. The penalties that the agency may impose if any mistakes are found could lead to hardships for many small businesses and their employees. If you are a small business owner and have questions about tax-related issues, you should consult an experienced tax law attorney about your situation. They will provide you with detailed guidance in order for you and your business to comply with all IRS requirements.

SmallBusinessMay See

AuditsIn 2014

Tax requirements

will be different for

each entity, so it is important

that each individual

understands their

obligations

Starting a business as a group requires the consideration of many things before you can capitalize on the idea. The group will need to find a location that gives the greatest chance of success. Additionally, they will have to find a way to provide their services or produce their goods in a cost-efficient way in order to maximize their profits.

However, before any of this can be done, the owners must carefully consider the various entity types available when setting up the business. This is done in order to create a structure that limits their personal liability if any issues should arise.

Stressed Man Worries About Economy, Paying Bills, RetirementTax consequences are a major concern for business owners during the time of formation. Tax requirements will be different for each entity, so it is important that each individual understands their obligations when

discussing their options.The IRS has announced

a change that may impact small business owners throughout the country. Officials have stated that they may increase the number of audits on small businesses during upcoming tax seasons. In the past, the agency was more focused on corporations, but now the IRS may take a closer look at small business owners who have set up their businesses as partnerships or other pass-through type of entities.

These businesses are structured in a way that the businesses themselves do not pay taxes, but instead the owners of the companies are taxes after the income is distributed. According to the IRS, these entities account for 95 percent of all businesses within the United States.

The IRS is concerned about the complex nature of these businesses, as some of the larger ones have several thousand partners, with multi-level distribution

SMALL BUSINESS

OUTLOOK

Story by Ian Gere

Documents

Business Opportunities Journal | March/April 2014