Great Clips: Ethical Business Practices Pay Dividends

Despite the recession, hair care franchise company Great Clips is growing at, well, a great clip.

According to Vice President of Franchise Development Rob Goggins:

• Great Clips has posted same-store sales increases for 22 straight quarters.
• Great Clips is on target to recruit more than 100 new franchisees this year.
• Great Clips is track to sign close to 200 leases.

Yet not only are they awarding new franchises at an impressive rate, Great Clips is also receiving awards… the latest being for business ethics.

Great Clips Receives 2010 Minnesota Business Ethics Award (MBEA)

Wednesday, May 19, 2010, Great Clips was presented with the 2010 Minnesota Business Ethics Award (MBEA) for “ethical excellence.”

The MBEA was established in 1999 by the Twin Cities Chapter of the Society of Financial Service Professionals and the Center for Ethical Business Cultures at the University of St. Thomas.  The purpose of the award is to raise the standards for business ethics in Minnesota and to honor companies that exhibit the highest standards of ethical performance.  In 2009 the Minnesota Society of Certified Public Accountants joined as an award sponsor.

MBEA recipients are selected based on company size.  Certes Financial Pros received the small-company award.  Edina-based Great Clips Inc. received the midsize-company award.  Imation Corp. received the large-company award.

Congratulations, Great Clips

In tough times, maintaining a reputation for ethics and honesty is more important than ever.  Obviously, the commitment Great Clips has made in building a reputation for fair-dealing and good business practices is playing a key role in their success.

Congratulations to Great Clips and its franchise owners for the MBEA award and for setting a winning example.

Are you familiar with Great Clips? Share a comment below.

BrightStar CEO Shelly Sun Named IFA Entrepreneur of the Year

BrightStar Founder CEO Shelly Sun is definitely one of franchising’s rising stars.

Since she and her husband JD began franchising in 2005, the healthcare staffing company has grown from one company-owned store to over 160 locations in 31 states and plans to have 400 franchise locations sold by the end of 2011.

Through Sun’s leadership, BrightStar opens 7-12 territories each month and has experienced 811% system-wide revenue growth between 2006 and 2008.  In August 2005, they launched BrightStar’s franchising efforts, becoming the first franchising company in the United States to specialize in both medical and non-medical care and healthcare staffing.

And now, Shelly Sun can add IFA Entrepreneur of the Year to her accomplishments.  Here’s an excerpt from the company news release:

International Franchise Association Names Shelly Sun ‘Entrepreneur of the Year’

CHICAGO – BrightStar Co-Founder and CEO Shelly Sun received one of the franchising industry’s highest honors yesterday by the International Franchise Association as its Entrepreneur of the Year during its 50^th Annual Convention in San Antonio, TX….

“It is a tremendous honor to receive this recognition from my peers,” said Sun, addressing the more than 2,000 attendees at the convention. “This award is a result of our franchisees relentless daily efforts in providing our clients quality of life, and providing peace of mind to families across the country.”

Working as a CPA in 2001, Sun, along with her husband and co-founder of BrightStar, JD, found themselves looking for quality care for JD’s grandmother who was suffering from cancer in Florida. The experience inspired Sun, a 13 year veteran of corporate America, to develop a healthcare staffing business that would provide reliable care to those in need and who wanted to remain in the comfort of their own home.

Founded in 2002, BrightStar is a full-service healthcare staffing agency that provides the full continuum of care, from homecare to supplemental staffing for corporate clients such as hospitals, nursing homes, and doctors offices. In August 2005, they launched BrightStar’s franchising efforts, becoming the first franchising company in the United States to specialize in both medical and non-medical care and healthcare staffing.

Today, BrightStar has grown from one company-owned store to over 160 locations in 31 states and will reach 400 franchise locations sold by the end of 2011.  Through Sun’s leadership, BrightStar opens 7-12 territories each month and has experienced 811% system-wide revenue growth between 2006 and 2008.

“I am truly humbled to be receiving it after just a few short years franchising,” Sun added. Sun thanked her mentors, peers and staff and went on to say, “We are blessed to be in the business of providing peace of mind to our clients by providing the highest quality, compassionate care and service; and we look forward to entering new cities and new markets where we’ll be able to bring that service to families giving them dependability and comfort knowing their family is well cared for.”

Sun is a member of the IFA Finance, Audit and Budget, Membership and FranPAC committees. She was selected as the Entrepreneur of the Year by the National Association of Women of Business Owners in 2006, was on the 50 fastest-growing woman-owned companies listed in Entrepreneur magazine in 2007, 2008 and 2009 and was honored as an Ernst & Young Entrepreneur of the Year Finalist in 2008 and 2009.

Join us in congratulating Shelly Sun and the BrightStar franchise team.

Baker Bros Grants 5 Unit Franchise Agreement for Iowa

Congratulations to Baker Bros, Baker Bros Director of Franchising Ralph Kinder and the newest Baker Bros franchise owners who will be developing the first Baker Bros franchise locations in Iowa.

The newest franchisees of Baker Bros have secured the exclusive rights to develop a minimum of 5 Baker Bros restaurants in the Quad Cities and Cedar Rapids & Dubuque, Iowa over the next 4 years.

Here’s the fresh, piping hot company news release:

BAKER BROS ANNOUNCES EXPANSION IN IOWA

New Franchisees to Develop 5 Baker Bros Restaurants

Dallas, Texas- January 22, 2010 – Baker Bros American Deli, a fast-casual concept headquartered in Dallas, has executed an exclusive Area Development Agreement with a new franchisee to open at least 5 Baker Bros American Deli restaurants combined in the Quad Cities and Cedar Rapids & Dubuque, Iowa.  The newest franchisees of Baker Bros have secured the exclusive rights to develop a minimum of 5 Baker Bros restaurants over 4 years.

This is the second Area Development Agreement in the Midwest that Baker Bros has signed.  A different Area Developer is also actively searching for 3 locations in Indianapolis, Indiana.  Current Baker Bros franchisees include multi-unit retailers and current or former multi-unit operators of McDonald’s, Popeye’s and Texas Roadhouse.

Founded in 1999 by Ken Reimer and Tom Dahl, two well-respected industry veterans, Baker Bros currently operates eight stores in Dallas, Texas with additional franchised locations open or in development in West Texas, East Texas, South Carolina, Kentucky and Indiana.  “We think Iowa will be a terrific market for Baker Bros.” said Ken Reimer, Baker Bros’ CEO.  “Baker Bros was created with the Midwest consumer in mind – hard-working Americans expect and deserve hearty portions, tremendous value and great flavor.”

Not to be confused with typical sandwich chains, Baker Bros American Deli (www.bakerbrosdeli.com) is an upscale, fast-casual deli featuring Specialty Sandwiches, Specialty Salads, Gourmet Pizzas and more.  All entrees are prepared fresh to order using the freshest available breads, ingredients and produce. The restaurants typically operate in high visibility strip centers and occupy 2500-3500 SF with seating for 120-160.
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Frank Corso Wins Martin Luther King Award

Please join us in congratulating Frank Mitchell Corso for being honored with the Economic Development Award from the Dr. Martin Luther King, Jr. Birthday Celebration Committee of of Nassau County.

Anyone who has had the privilege to work with Frank knows that he works tirelessly in a number of non-profit areas, including health issues, world hunger, business development and opportunities for minorities.

Feel free to share a word of congratulations or support for these causes below.

LONG ISLAND BUSINESSMAN FRANK MITCHELL CORSO, JR. RECEIVES ECONOMIC DEVELOPMENT AWARD IN CELEBRATION OF DR. MARTIN LUTHER KING, JR.

WASHINGTON, DC – On Monday, January 18, Long Island business leader Frank Mitchell Corso, Jr. will receive the Economic Development Award from the Dr. Martin Luther King, Jr. Birthday Celebration Committee of Nassau County in recognition of his contributions to the areas of business development and minorities in business in Nassau County and beyond.

“I am honored to receive the Economic Development Award in memory of Dr. King’s crucial work towards equality for everyone,” said Corso. “As we continue to celebrate his life and legacy, we must also recognize that there is still much to be done to realize his dream of a brighter future.”

A principal of Frank Mitchell Corso, Jr., and Associates, Inc., Corso sits on the Board of Directors of Friends of the World Food Program (Friends of WFP), as well as the boards of trustees of the American Kidney Fund and Long Island Transportation Management, Inc. As an authority on economic and business development, lending and franchising, Corso assists many businesses throughout the United States by providing expertise on business matters such as financing, business development, marketing and franchising.

“Through his work on the Friends of WFP Board of Directors, Frank is supporting the United Nations World Food Program’s mission of providing life-saving food to the world’s most vulnerable people, bringing us one step closer to Dr. King’s vision of a peaceful, stable world,” said Randy Russell, Chairman of the Friends of WFP Board. “Food is not only a civil right, but a basic human right as well. The fight against hunger is even more important now that hunger plagues over 1 billion people worldwide. On behalf of the entire Board, I congratulate Frank on this much-deserved recognition.”

Other 2010 honorees include Mark Bonilla, Henry Holley and Douglas L. Mayers. Each year the Dr. Martin Luther King, Jr. Birthday Celebration Committee of Nassau County honors people from the area that demonstrate the philosophy of Dr. King by displaying excellent leadership in the community and volunteering their time to improve the everyday quality of life.

The Dr. Martin Luther King, Jr. Birthday Celebration Committee’s 25^th Annual Luncheon will take place on Monday, January 18 at the Long Island Marriott Hotel, 101 James Doolittle Boulevard, Uniondale, New York. For more information please contact Rodney McRae at 516-571-5977.

For more information, visit: http://www.mlknc.org/Home_Page.php.

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Friends of the World Food Program (Friends of WFP) is a U.S.-based nonprofit, nonpartisan organization that focuses on building support in the United States for the United Nations World Food Program (WFP) and other hunger relief operations. Friends of WFP unites organizations and individuals committed to solving world hunger. Our education, advocacy, and fundraising efforts in the United States support WFP’s life-saving global food assistance and development programs. To learn more visit www.friendsofwfp.org.

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Are Discount Promotions Killing Franchise Owners?

Discount fast food franchise promotions like Subway’s $5 Footlongs, Quiznos Million Sub Giveaway and McDonald’s $1 menu, and Burger Kiong’s $1 Double Cheeseburger are attractive to consumers and great for the franchisor… but what about the franchise owners who foots the bills?  According to Smart Money, some of the franchise promotions and giveaways lately have been great for everyone except the franchise owner.

Product discounting is one of the most contentious topics in franchising.  Here’s why:  Franchisors make money off the gross sales of their franchisees, regardless of franchisee profitability. 

Some franchisors make additional money marking up ingredients and food products to their franchisees. 

Public franchisors benefit from higher sales – and stock prices – that are not tied to franchisee profitability.

SmartMoney.com surveyed franchisees from different franchise chains regarding the cost to them of some current and recent promotions. The Smart Money article points out that franchisees generally bear the brunt of a promotions’s cost, including the food, labor, rent and utilities, among other things.

Here’re are links to the data on six recent franchise marketing promotions, posted on UnhappyFranchisee.com: 

RELATED POSTS:

SUBWAY: What Do Franchisees Make on $5 Footlongs?

LITTLE CAESARS: What Franchisees Make on a $5 Pizza

McDONALD’S: What Franchisees Make on a $1 Burger

BASKIN ROBBINS: Franchisees Lose $1.45 per Scoop on Promo

QUIZNOS: Franchisees Lost $2.25 per Sub on Giveaway

BURGER KING Franchisees Sue Over $1 Cheeseburgers

WHAT DO YOU THINK OF DISCOUNT PROMOTIONS?  SHARE A COMMENT BELOW.

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