The new owners of Long John Silver’s, LJS Partners, and A & W Restaurants, A Great American Brand, in a press release by Gov. Steve Beshear, announced that their respective headquarters shall be in Kentucky.  Said restaurants shall employ 60 and 30 people, respectively, the Courier-Journal.com reported.  The Kentucky Economic Development Finance Authority gave the two companies tax incentives to guarantee this move.

State tax incentives approved this week will guarantee that the headquarters of Long John Silver’s and A&W Restaurants will remain in Kentucky as Yum! Brands spins the chains off to new owners.

About 1,300 Long John Silver’s seafood restaurants will be sold in the next few weeks to LJS Partners, a company to be headquartered in Louisville that will employ 60 people, Gov. Steve Beshear announced Thursday.

A&W, the root beer and burger chain, is being acquired by a new startup called A Great American Brand that will employ roughly 30 people in the Lexington area, according to a press release.

The Kentucky Economic Development Finance Authority granted preliminary approval to both companies for tax incentives worth up to $1.5 million for LJS Partners and $600,000 for A Great American Brand if they fulfill their promises to keep the headquarters of the fast food chains in the commonwealth. The incentives are through the Kentucky Business Investment Program.

“Together, our efforts will allow both corporate headquarters to grow faster and larger, as well as expand the international reach of their brands,” Beshear said in the press release.

“We are excited to announce we are staying in Louisville,” the CEO of LJS Partners, Mike Kern, said in the release.

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FastCasual.com reports the opening of the first Fatburger restaurant in Seoul, Korea.  This is the first of ten locations planned for Korea by the franchisee SW Group Inc.  Andrew Wiederhorn, Chairman of Fatburger, happily welcomed the franchisee into the Fatburger family.  This restaurant chain offers lean beef burgers grilled right in front of customers.

Fog Cutter Capital Group Inc.’s Fatburger restaurant chain has opened its first location in Seoul, Korea. The Gangnam-gu location, in the southeast part of the city, is a significant business district as well as a shopping and entertainment hub.

This is the first of multiple units planned with franchisee SW Group Inc., and the first of 10 planned to open in Korea. Additional locations are expected to open there in 2012.

“We look forward to working with the SW Group and are pleased to welcome them into the Fatburger family. As Fatburger continues to expand internationally, South Korea’s economy and trade relationship with the United States make it an important market for our Brand,” said Andrew Wiederhorn, chairman, Fatburger.

For more than 59 years, Fatburger has been serving big, fresh, 100-percent pure lean beef burgers custom made and grilled right in front of customers.

Photo by roboppy

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Those looking for a business to get into should try franchising.  Franchises are doing better than most industries, and it has grown 40% over the past ten years.  Steve Caldeira, CEO of the International Franchising Association, is optimistic that franchising will steadily grow in 2012 and beyond.  Consider these favorable factors mentioned at TheStreet.om – available commercial spaces and talented job applicants, support from franchisors and loosening of credit.

One of the easiest and more predictable ways to do that is to look for those companies aiming to grow and buy a franchise.

Franchising means you run a business of your own, but with a proven method of success as well as support and marketing assistance from the franchisor.

Joel Libava, a franchise-acquisition consultant and author of Become a Franchise Owner! says franchising means building equity in a business, controlling the circumstances to reach your career goals and dreams and creating an opportunity for your children to join you.

Here are some reasons 2012 is a particularly good time to own a franchise:

1. Credit is loosening.

“The big issue has been a lack of credit to meet the demand for [franchisors' and franchisees'] growth.” Caldeira says.

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Canada’s Brookfield Residential Property Services has acquired Prudential Real Estate and Relocation Services, one of the country’s biggest real-estate agency franchisors.  Prudential Real Estate affiliates shall continue using the Prudential brand, according to the news release published at USAToday.com.  This addition establishes Brookfield as the world’s second largest employee-relocation services provider.  It is present in the U.S., Canada, Mexico and Portugal.

A Canadian investment firm has purchased the residential real-estate agency-franchising subsidiary of Prudential Financial, which has 22 offices and more than 500 agents in Arizona.

Brookfield Residential Property Services, a Brookfield Asset Management Inc. affiliate, said Wednesday that it had closed on its purchase of Prudential Real Estate and Relocation Services, one of the country’s biggest real-estate agency franchisors, from Newark, N.J.-based Prudential Financial Inc.

Brookfield, based in Toronto, said the addition of Prudential to its existing businesses focusing on residential real-estate franchising and employee-relocation services establish Brookfield as the world’s second-largest employee-relocation services provider after the Cartus Broker Network and the third-largest residential real-estate franchising business.

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“Things that are little become big,” Phil Friedman, CEO of Salsarita’s Fresh Cantina, told the KnoxNews.com, of his vision to expand the Mexican restaurant chain across the Southeast.  The company, famous for its burritos, tacos, enchiladas and salads, has more than 80 locations and Friedman hopes to build more with better customer service and hospitality.

Phil Friedman doesn’t believe in spending his time inside an office.

The CEO of Salsarita’s Fresh Cantina can be found most days at one of the company’s more than 80 locations.

Getting a lot of Friedman’s attention — Knoxville brothers H.P. and J.T. Patel of Laxmi Ventures, the largest franchisee of the Charlotte, N.C.-based chain of fast casual Mexican restaurants.

Friedman, who grew McAlister’s Deli from 27 to 300 locations as its former CEO, is working with the Patels to “take it to the next level.”

The industry veteran, who says he left McAlister’s “in search for something new,” is betting big on Salsarita’s, which specializes in made-to-order burritos, tacos, enchiladas and salads.

Friedman, who acquired Salsarita’s last year, called it an “underutilized brand” that he hopes to expand through its existing markets across the Southeast.

Single-unit franchisees represent 85 percent of the company, but over time, he says he’ll be working to reverse that statistic.

“We have a good product, a good variety at a good value,” he says. “It’s on trend. It offers real value, not cheap value.”

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As Domino’s Pizza celebrates its 51st year, it announced more Web-based sales following its record-breaking online orders the week after Cyber Monday.  The pizza chain surpassed the 1 million mark for the first time in its history.  The Los Angeles Times reports that 30% of Domino’s sales come from online orders.

Pizza is going more and more digital as several major chains said they broke online and mobile ordering records after Cyber Monday.

Domino’s said Internet orders surpassed the 1 million mark from Nov. 28 through Dec. 4 for the first time in the company’s history. Online orders now make up 30% of the chain’s total.

Today, the company is celebrating its 51st anniversary by trying to pump up more Web-based sales, offering half-off pizzas ordered online through Facebook.

Pizza Hut, which recently began offering its sprawling Big Dinner Box deal, told Nation’s Restaurant News that the post-Cyber Monday period was also its best week ever for online sales. Papa John’s said it was a “big online sales week” as well.

The popularity of mobile ordering is steadily percolating through the restaurant industry.

Since 2004, websites such as GrubHub and Snapfinger have teamed with major chains such as California Pizza Kitchen to facilitate online ordering from customers. Last month, daily deals website LivingSocial began offering online ordering options for restaurants.

Photo by skampy

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AllBusiness.com reports that Nando’s, a South African chicken chain with a number of franchises in Zimbabwe, has pulled out its ads because of threats of violence against its customers and employees.  Militant youth groups in Zimbabwe sympathetic to dictator Robert Mugabe, says the company’s ad featuring a lonely Mugabe attacks the dignity of their leader.

When it comes to advertising, fast-food franchises like to push the envelope. But a South African chicken chain called Nando’s may have gone too far – to the point where its employees and customers are now getting death threats.

The ad in question features a lookalike of Zimbabwe president Robert Mugabe. Mugabe, for those not versed in international thuggery, is a murderous dictator along the lines of Saddam Hussein, Muammar Gaddafi, Mao Zedong, and Idi Amin.

And that’s where the fun begins. The only difference between Mugabe and these dictators is that he’s still alive, and they are not. So, of course, Nando’s got the brilliant idea to create a TV commercial called “Last Dictator Standing” in which a lonely Mugabe longs for the companionship of his fellow despots. The tagline: “No one should ever have to eat alone.”

Pretty funny stuff, really. But not everyone is laughing, especially not a militant youth group in Zimbabwe that supports Mugabe and sees the ad as an egregious attack on his dignity. Taking a page out of their leader’s playbook, the group has apparently threatened violence against local Nando executives and customers.

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Just Baked, famous for its gourmet cupcakes, recently opened its commissary in Livonia.  It is nearing its target to make 2 million cupcakes this year.  Not only that.  With four retail stores to open in Detroit this month and 5 more middle of 2012, the company is nearing its goal of  20 stores in southeast Michigan.  “You don’t need ovens, mixers or refrigeration,” founder of Just Baked Pam Turkin told AllBusiness.com. “You just need to build a retail storefront.”

While Pam Turkin, founder of Livonia-based Just Baked LLC’s cupcakes, has spent most of her time and energy getting her baked goods into more than 400 stores across Michigan – including Meijer and Spartan Stores – she is now developing a franchise system to grow the brand in Southeast Michigan.

Just Baked, known for its gourmet cupcakes with names like Fat Elvis and Grumpy Cake, has seven retail locations in Southeast Michigan and is set to open four more around metro Detroit by mid-December, three of which will be franchise-owned.

Turkin said she expects to open five more by the middle of next year, for a total of 16. She said she hopes to open 20 stores in the region in all.

“You don’t have to be a baker or have a culinary background to own a Just Baked franchise,” Turkin said. “This model lets people who don’t want to put the time and money and risk into opening a bakery, open a bakery.”

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PizzaMarketplace.com bared the New York-based marketing agency Zeta Interactive’s list of “best buzzed” and “worst buzzed” CEOs of some of the world’s largest companies.  The list was culled using a software that scanned blogs and social media sites.  Yum! Brands CEO David Novak and Domino’s Pizza CEO Patrick Doyle came in No.5 and 9, respectively, with Steve Jobs grabbing the No. 1 position.  The period covered by the research is January to mid-November last year.

Yum! Brands CEO David Novak and Domino’s Pizza CEO Patrick Doyle have received a lot of positive buzz this year. This is according to research by Zeta Interactive, a New York-based marketing agency.

Zeta Interactive used data mining software to scan blogs and social media sites for discussions specifically referencing CEOs of some of the world’s largest companies. The study was done from Jan. 1, 2011, through mid-November.

The company then broke down the list between “best buzzed” and “worst buzzed” based on those discussions.

Novak was No. 5 on the “best buzzed” list, receiving an 86 percent positive score.

Doyle was listed as No. 9, with an 83 percent positive score.

Topping the list was the late Steve Jobs, former Apple CEO, who earned a 92 percent positive score.

Both Yum! Brands and Domino’s Pizza have had big years. Yum!, parent company of Taco Bell, KFC and Pizza Hut, has turned in consecutive positive earnings reports buoyed by the company’s staggering growth in China.

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Entrepreneur.com list ten franchise trends for 2012.  This list is not a recommendation but is only a guide on the opportunities available should you want to own a franchise.  Some franchises, like child and senior care, have been going strong for years and others franchises, like health and spa services, are just taking off. These franchise categories are expected to continue their growth next year.

What does the future hold for the franchise world? Some industries on Entrepreneur’s list of 10 trends for 2012, like child care and senior care, have been going strong for years–thanks to the ever-growing demographic groups they serve–and show no signs of stopping. Others, like spa services and health services, have just started taking the franchise world by storm in recent years. Whether they’re new or old, these are the franchise categories that are primed for continued growth over the next year–whatever the economic circumstances may be.

This list is not a ranking and is not intended as a recommendation of any particular franchise company.

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QSRMagazine.com reports that Wingstop has been granted $15 million financing by Franchise America Finance (FAF) and The Bancorp Bank which it can use to develop new restaurants.  This will be available to both new and existing franchisees said Dave Vernon, vice president of franchise sales.  Wingstop, a fast-casual restaurant chain, is soon to open its 500th location.

Wingstop, the rapidly expanding wing chain with almost 500 locations in the U.S. and Mexico, announced a new program designed to provide financing for franchisees. The financing will be provided through Franchise America Finance (FAF) and The Bancorp Bank, a wholly owned subsidiary of The Bancorp, Inc.

Under the terms of the partnership, Wingstop has $15 million available to assist with financing franchisees in the development of new restaurants.

“This collaboration allows us to provide national funding for our current brand partners and new franchise candidates,” says Dave Vernon, vice president of franchise sales for Wingstop. “Wingstop is adding new stores on a regular basis, and will open our 500th location this month.

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McDonald’s, the world’s leading global food service retailer, announced its global sales grew at least 6.5% in November.  The company attributes this growth to exciting promotional food and marketing events and the variety of products in its menu.  Franchise Wire reports Japan and China posted 8.1% sales increase.  McDonald’s Chief Executive Officer Jim Skinner said the company will continue to focus on its customers and operations for sustained global business momentum.

McDonald’s Corporation (NYSE: MCD) today announced global comparable sales growth of 7.4% in November. Performance by segment was as follows:

U.S. up 6.5%
Europe up 6.5%
Asia/Pacific, Middle East and Africa up 8.1%

“We’re listening to our customers and delivering what they expect from McDonald’s by optimizing our menu, modernizing the customer experience and broadening accessibility to our Brand,” said McDonald’s Chief Executive Officer Jim Skinner. “McDonald’s steadfast focus on our customers and our operations under the Plan to Win is driving the sustained momentum of our global business.”

In the U.S., the continued strength of McDonald’s breakfast daypart, everyday value, the addition of the seasonal Peppermint Mocha to the McCafé line-up, and the Chicken McNuggets promotion drove the 6.5% increase in November comparable sales.

Europe posted a 6.5% increase in comparable sales for November driven by performance in the U.K., France, Russia and Germany. Throughout Europe, an expanding variety of premium and mid-tier products, exciting promotional food and marketing events, and reimaged restaurants enhanced the McDonald’s experience and drove the segment’s comparable sales increase for the month.

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QSRWeb.com reports the acquisition of Planet Smoothie by Tasti D-Lite.  Tasti D-Lite is a frozen dessert chain for health-conscious consumers.  In the coming months, Tasti D-Lite products will be available in some Planet Smoothie stores and vice versa. Jim Amos, CEO of Tasti D-Lite said they plan to offer new franchisees the option to own and operate in a co-branded store concept, which fully integrates both brands into a unique customer experience.

Tennessee-based Tasti D-Lite, a frozen dessert chain catering to health-conscious consumers, has announced the acquisition of Planet Smoothie LLC, a franchise system with more than 100 units in operation, mainly in Georgia and Florida.

The strategic acquisition, which closed Nov. 30, will allow both brands to broaden product offerings, improve retail sales and accelerate unit growth through co-branding initiatives and non-traditional development opportunities.

“This acquisition presents an opportunity to combine two iconic brands to create a winning combination for both the customer and the franchisee,” said Jim Amos, CEO of Tasti D-Lite. “The consumer profiles of Tasti D-Lite and Planet Smoothie are very similar, so combining the two complementary brands will provide both brands an opportunity to increase the scale of the combined store network as well as sales at the store level.”

As part of the acquisition, Tasti D-Lite products will be added to select Planet Smoothie stores, and vice versa, within the next few months.

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BrightStar Care, an in-home care business, caters to the all ages – from children to elderly.  It was founded in 2002 and now boasts of 250 locations nationwide and $100 million net worth. It is one of the top 500 franchises in the U.S. according to Entrepreneur Magazine.  Shelly Sun, CEO, cites the growing preference of most seniors for home-based health care rather than relocating to nursing homes. NuWireInvestor.com reports that BrightStar Care plans to open more franchises in the U.S. and internationally in the coming years.

Franchises open: 180; 220 franchises are expected to open in the U.S. and internationally by 2013
Revenue last year: $100 million, up 50% from the beginning of 2009
Medical care, nonmedical care and child care

J.D. and Shelly Sun founded BrightStar in 2002 after their own poor experience with caregivers. The company likely got its fame after it was featured on Undercover Boss on CBS in April.

The company provides what it calls a “full continuum of home care” that includes adult and elder care services, child care and medical staffing services for individuals, families and health care facilities, the company says.

The company provides “every service available at nursing facilities in the comfort of an elderly person’s own home.

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Smashburger told QSR it is bringing its burgers, chicken sandwiches and fresh salads to Canada.  This follows its first international expansion in the Middle East.  “Canada is a very attractive market to us and we believe we are bringing a premium dining experience at a competitive price point to local residents” says Dave Prokupek, chairman and CEO of Smashburger.

Smashburger, the fast growing better burger concept in the U.S., announced it has signed its first two lease agreements in the Calgary market, bringing its juicy burgers, tender chicken sandwiches, and fresh salads to Canada for the first time.

The company expects to open its first Calgary location in 2012. It plans to open 10 to 15 units in the Calgary and Edmonton markets over time.

Smashburger is targeting additional growth in Canada and is actively seeking experienced multi-unit operators to become franchise partners across all provinces. This marks the second international commitment for Smashburger, following on the heels of its recent franchise agreements for the Middle East.

The first Smashburger restaurants in Calgary will be company-operated and located at Centre 32, 2770 32 Ave. NE and at 8888 Country Hills Boulevard NW.

“We are eager to introduce Smashburger’s better burger offering and our diverse menu of chicken sandwiches, fresh tossed salads, and signatures sides to residents in Calgary and Edmonton,” says Dave Prokupek, chairman and CEO of Smashburger.

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For the month of December, Subway is offering its six-inch meatball and cold-cut subs for $2, USA Today reports.  Tony Pace, marketing chief at Subway’s franchisee advertising fund, says “We’re just showing folks a little love when everyone is fretting about the economic future.”  With the success of the recent Black Friday, Subway hopes to entice customers to spend more on this deal.

Subway will offer $2, six-inch sub sandwich deals for December.

The deal is good only on its popular meatball and cold-cut subs.

In a still-struggling economy, the chain that set the industry standard with $5 foot-long subs is throwing down yet another gauntlet that’s certain to raise industry eyebrows and lure deal-seeking customers. Several other major fast food chains also dabbled this year with $2 meals — including Taco Bell, Chipotle and some regional KFCs.

“It’s a magical price point,” says consumer psychologist Kit Yarrow. “What it communicates to consumers is that Subway is on their side.”

December is typically a slower month not just for Subway but for the entire fast-food industry. The Subway deal is the lowest-price 6-inch sandwich that the chain has offered in years, says Tony Pace, marketing chief at Subway’s franchisee advertising fund. “We’re just showing folks a little love when everyone is fretting about the economic future,” he says.

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Some families that own franchise businesses want to pass on their businessses to their children.  Children, when on school vacation, usually help in the business and immerse themselves in the business.  They may discover that they like what they are doing and may take it upon themselves to succeed their parents in running the business. William Slater Vincent, co-author of the IFA’s handbook Franchise Succession Planning and Transfers told Entrepreneur.com, “More and more children want to continue the family franchise.”

Sharing a business can do much to strengthen familial bonds. But passing a family business from one generation to the next can be a complicated process. For various reasons–fear of mortality, or the inability to let go of an enterprise that was years in the making–the original owners often fail to discuss with their families a plan for what should happen if they die, become ill or take an early retirement.

Leaving succession plans up in the air is an almost certain death sentence for a family business. According to the International Franchise Association (IFA), only 30 percent of family-owned franchises make it to a second generation. That’s in part because, above and beyond any emotional issues related to succession, the franchisor has veto power and is the sole decider as to whether Junior is qualified to step in as boss.

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Mike Shattuck, president of international brands with Focus Brands, offers some advice to franchisors wanting to expand outside of the U.S.  He said one has to adapt to the cultural idiosyncrasies of the target countries yet still maintain “the core essence and being of every (franchise) brand”.  A franchisor also should be fully committed.  Read more on this interview by TheStreet.com.

There are markets such as India, Indonesia and Brazil ripe with opportunity, according to franchise industry experts.

Operating international franchises may require changes to the model, whether that’s to adhere to cultural idiosyncrasies or regulatory laws.

Mike Shattuck, president of international brands with Focus Brands, which owns food-related franchises including Carvel, Cinnabon, Auntie Anne’s, Seattle’s Best Coffee and Schlotzky’s, among others, offers some best practices to expanding internationally.

How do you build a model that can be replicated even outside the U.S.?

Shattuck: You need to understand you’re probably going to have to adapt your concept or your brand in nearly every market. Coming to the realization that you will need to make that adaption is the first thing.

In many cases it may be a tweak on the menu such as portion size in Asian markets. Sometimes if your product has a spicy profile you might have to take that down a bit – or up a bit. You’ll want to have in India a level of vegetarian classification.

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Former FedEx officer and of ES3 LLC, Kenneth A. May, is the new president and chief operating officer of Krispy Kreme.  Jim Morgan, the company’s chief executive said in a statement published in the Winston-Salem Journal, “It was critical that we seek out someone with a unique combination of big-brand experience, retail customer engagement, proficiency in delivering quality products and services. We were able to find all of those qualifications in Ken May.”

Kenneth A. May, a former executive with FedEx Corp., has joined Krispy Kreme Doughnuts Inc. of Winston-Salem as its new president and chief operating officer.

May, 51, will report to Jim Morgan, the company’s chief executive, and will be responsible for the company’s operating segments, Krispy Kreme said in a news release.

Company officials created the position for May, said Brian Little, a Krispy Kreme spokesman.

May said he looks forward to working at the company, which recently announced plans to expand in the United Kingdom.

“Being invited to join Krispy Kreme and be a part of taking this iconic brand to the next level is a once-in-a-lifetime opportunity,” May said in a statement.

May had served as president and chief executive officer of FedEx Kinko’s office and print centers, and led the integration of Kinko’s into FedEx. He was responsible for the strategic direction, growth and development for more than 1,800 retail locations and 22,000 employees in 11 countries, and $2 billion in revenue.

May also held other positions throughout FedEx, including senior vice president of U.S. operations for FedEx Express, Fed-Ex’s largest division with more than 62,000 employees.

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The Kentucky Supreme Court overturned an appellate court’s ruling providing disability benefits to an employee of an uninsured franchisee.  The court also said the state law doesn’t apply because the franchisee “did not perform a regular or recurrent part of (Doctor’s Associates’) business.”  Subway’s franchising agreement required franchisees to maintain coverage for workers compensation claims yet the restaurant owned by Watash UBC did not have insurance at the time of the employee’s injury in May 2000, reports BusinessInsurance.com.

Doctor’s Associates Inc., the franchising company for Subway restaurants, can’t be held liable for workers compensation claims stemming from an uninsured franchisee, the Kentucky Supreme Court has ruled.

The Kentucky Uninsured Employers’ Fund had sought payment from Milford, Conn.-based Doctor’s Associates for medical and temporary total disability benefits it paid to the employee of a Subway restaurant in Whitesburg, Ky.

The restaurant, owned by Watash UBC, did not have workers comp insurance at the time of the employee’s May 2000 injury, even though Subway’s franchising agreement required Watash to maintain coverage, according to court records.

An administrative law judge and the Kentucky Workers’ Compensation Board dismissed the Kentucky Uninsured Employers’ Fund claim, saying that franchisors can’t be held liable for uninsured franchisees under Kentucky’s workers comp law.

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