Extracurricular Activities for Children May Represent Franchising Opportunity

Apparently, many parents are turning to private businesses to find activities for their children. The reason appears to be that some of these activities are disappearing from schools as they try to save money on "extras" such as music or art. This has provided an opportunity for businesses who want to focus on enrichment for children. According to this article, for some entrepreneurs the franchising route is the way to do this: "For Janice and Dave Morreira, 41 and 52, respectively, it allowed them to make their foray into the children's gymnastics and fitness business even though they didn't have formal training in fitness or children's development.By choosing a franchise, "I could combine something I love doing with children and also contribute my knowledge of [HR], accounting and operations," says Janice, who started her first The Little Gym with her husband, Dave, in 2003. They've since opened another location for combined sales of $1.7 million last year, as well as two more locations in late 2007 and early 2008, all in the San Francisco Bay Area."

Arizona Marketing For Women in North Phoenix

A new forum of business professionals may provide women-owned Arizona franchises a great opportunity for networking which is essential for any business particularly in a downturn economy where any affordable marketing effort should not be passed. According to their site, Team Women™ " is about celebrating successes of each member and working together to create more prosperous businesses for everyone. The purpose of Team Women is for each member to provide highly qualified referrals to other members in their chapter. A qualified lead is one in which the person being referred is expecting to hear from the Team Women member and has provided all of his/her contact information." The newest chapter is located in North Phoenix, AZ and each chapter is limited to 30 women so that the forum can achieve a balance that provides business leads, but is still intimate enough for women to actually develop meaningful relationships.

The UFOC and the Arizona Franchisee

The Uniform Franchise Offering Circular or (UFOC) as it is commonly referred may seem like a standard boilerplate document to some franchisees but it is very important. Not every UFOC (now typically referred to as the FDD or Federal disclosure document) is standard though many of the provisions may vary from franchise to franchise. The UFOC or FDD discloses many of the important issues regarding the role and responsibilities of the Franchisee. For more information on navigating this intricate document, you should consult with a franchise attorney especially if you are in Arizona or California and you can read more here.

Franchise Tax Board warns of Online Scams

Taxpayers are being warned by the Franchise Tax Board of two scams involving the tax board and identity theft. According to this article, "The first scam involves an e-mail "phishing" for taxpayer data." This type of scam works by attempting "to lure people into revealing personal and financial information, such as Social Security, bank account or credit card numbers, which may be used to steal that taxpayer's identify."
Another scam "involves a phony letter informing the taxpayer his or her tax return may be audited. The letter refers the taxpayer to a fake FTB address in Georgia. Both the e-mail and the letter contain misspellings and grammatical errors."
Taxpayers who receive such information should contact the FTB at 800.852.5711.

Arizona Small Business Association to Spotlight and Support Successful Second-stage Companies

ASBA (the Arizona Small Business Association) CEO Joan Koerber-Walker announced today that ASBA and Comerica Bank have joined forces to shine a spotlight on Arizona-based,
second-stage companies that are generating new jobs and sustaining business growth, according to this article. "To qualify, companies must be privately-owned "second stage" companies. Second-stage companies employ between 10 - 100 employees with $1M to $100M in revenues,
while creating jobs and growing sales through innovative products, services
and practices." The effort means more than recognition. According to Meredith Russell, president of Comerica Bank in Arizona, "This new agreement represents a great opportunity for us to not only recognize but also provide resources for entrepreneurs and growing
companies in Arizona, one of the fastest-growing economies in the U.S.."

District Judge Puts Paralegal Franchises Under Fire

According to this article, state District Judge Bobby Flores, said it isn't the first time he's run into problems with clients of document preparation services. "(The customers) pay them money," he said from the bench immediately after de Luna (in one case) left the courtroom. "And then they come here frequently unready for their cases." Two McAllen franchise businesses - Documents and More and the now defunct We the People - are the two most egregious offenders, he said. They are also the targets of Dyar's lawsuit. "Cindy Dyar, an attorney with Texas Rio Grande Legal Aid, alleges such companies go much further than enabling clients who probably shouldn't be representing themselves." State statutes prohibit anyone without a license from giving legal advice. But the law turns hazy when it comes to document preparation services. Such companies are allowed if they make clear that their aid is no substitute for the advice of an attorney. This underscores the reason if you need to protect your business or individual assets or just to have peace of mind to seek the services of a licenced attorney which in many cases, may not be prohibitively expensive to justify cutting corners in the first place.

Phoenix Entrepreneur Considers Franchising to Expand Business in Car Crazy Phoenix

Gary Shapiro is the founder and owner of Auto Vault – a secure storage facility for cars and motorcycles. According to this article, : "Auto Vault has become very successful very quickly. "We opened in the fall of 2004 with zero customers," he said. "And now we are looking for more space because we are looking after 400 cars." He started out in the neckwear business before pursuing his passion. "I've always been a car guy, I collected cars, I always drove nice cars," he said. "Even my neckwear showroom was decorated with about 1,000 model cars." The idea for Auto Vault struck him when he was offering a customer a great deal on a Bentley. "He said to me: 'Oh, the money's no problem,' " Shapiro recalled. " 'But where would I put the damn thing?'"In summer when many of the exotic cars are being enjoyed, Shapiro can often make room for vacationers who don't want to leave their cars in the driveway while away.
As his space rapidly fills up as Auto Vault continues to grow, Shapiro is looking to expand. "He's even spoken to people about franchises in the U.S., including south Florida and Phoenix." "Phoenix is a car-crazy town," he said. "And there they have to protect their cars from the summer, not the winter."

Mothers find Franchising Balance Between Work And Family

Liz Norwood is one of many mothers who have found a place at home and in franchising. According to this article, "For a long time, women only had two choices - work or raise a family," she says. "Women who decide to have a baby often have intentions of returning to work after a certain amount of time. But there were few options." So Norwood and three other "new moms" started a new company called 10 til 2 back in 2003 in Denver. The company is a staffing and personnel organization. "As you might expect, the 10 til 2 franchise has been extremely popular with moms who are eagerly becoming franchisees and with the many part-time employees the franchise places in jobs. Norwood says the corporate staff is comprised entirely of women, most with children."

More foreign Investment Wanted in Arizona

According to this article, the weaker dollar means that economic investment groups are taking steps to attract foreign investment to Arizona. Jeff Morhet, chief executive of InNexus, said he is "happy with the company's investment in Arizona. The company operates labs in a research building at the Mayo Clinic in north Scottsdale, where technicians are developing antibodies to help fight cancer and other diseases. Arizona offered what the company needed, including a skilled work force, and the company plans to expand beyond its 31 employees, Morhet said." He believes that "There are greater resources available to technology companies in Arizona than most people give it credit for."

How a Famous Franchisor Got His Start in Retirement

Kentucky Fried Chicken (KFC) is one of the most famous franchises in the world, but many may not be aware how this global franchise got its start. This article, has a great synopsis on how Harland Sanders, named an honorary Kentucky colonel, was able to build a global franchise from the humble beginnings in a modest gas station kitchen in Kentucky. "After a fire, he rebuilt with a restaurant and hotel that were popular with travelers—until a new interstate highway diverted traffic away from the spot. Sanders, then in his 50s, hung up his apron and prepared for retirement. Convinced there was a larger market for his secret-recipe chicken, he set about selling it to restaurant owners door-to-door." Sanders sold his interest in the U.S. company in 1964 when he was 74. The famous logo recently changed for the fourth time in 50 years a couple of years ago. According to this article, "The company unveiled a new brand logo Tuesday that includes bolder colors and a more well-defined visage of the late Kentucky Fried Chicken founder, who will keep his classic black bow tie, glasses and goatee. This change gives us a chance not only to make sure we stay relevant but also communicates to customers the realness of Colonel Sanders and the fact that he was a chef,” said Gregg Dedrick, president of KFC’s U.S. division.

Open Air Centers -New Arizona Business Trend

New Arizona malls are hoping that a new misting system will help shoppers beat the heat as humidity rises and temperatures reach 110 degrees. According to this article, some Arizona businesses are hoping that the Phoenix outdoor lifestyle centers will boost shopping: "Much like some outdoor malls near Detroit and Cleveland have equipped themselves with heated sidewalks to draw shoppers during the winter, Valley outdoor centers have prepared to face scorching summers with shade screens, gazebos, strategically placed trees and fountains that allow shoppers." Some feel this will make indoor malls with their heavy use of air conditioning, a thing of the past. "Phoenix developer Jim Pederson, whose company, the Pederson Group, co-developed the Promenade at Casa Grande, said he believes lifestyle centers are popular because most shoppers enjoy being outdoors. "Retail has gone full circle and is getting back to open-air shopping," he said. "There is a certain environment you just can't duplicate with an indoor mall."

Two of the Largest Franchised US Food Chains in the Mid-1950s

Did you know, according to this article, at the time Ray Kroc began franchising McDonald's restaurants in the mid-1950s, the two largest franchised food chains in the United States both specialized in ice cream: Dairy Queen and Tastee-Freez.

Service Businesses a More Affordable Path for Franchise Ownership-Opportunities for California Franchisees

Service business may provide a more affordable point of entry for those lacking the funds that were previously available through home equity loans. According to this article, local franchise consultant Cheri Carroll claims that "While a franchised sandwich shop may cost $120,000 or more for the build-out and equipment, or $300,000 for a retail shop, a service business can cost as little as $20,000 to get started, with almost no overhead." Potential California Franchisees may find potential businesses in the following areas: "Some growing service businesses among San Diegans are Gurnee, Ill.-based BrightStar Healthcare and Sandy, Utah-based Spectrum Home Services, which offer nonmedical services to seniors such as running errands and yard cleaning."

A Mentor May Help You Grow a Better Franchise

We don't often think of it in this context, but finding a mentor may be an excellent way of improving your franchise in a tough market. According to this article, " Successful mentorship can be in any number of forms: online or in-person, in both formal and informal settings, on a temporary or long-term basis, and between individuals or in groups. What is essential, experts say, is direction, dedication, and openness." We may be used to thinking of mentorship as a strategy for the very young. Attorney Maria Speth who is 43 went for an interview four years ago at Jaburg Wilk in Phoenix and has had a beneficial mentor relationship with the firm's founder and managing partner, Gary Jaburg for years. "It has also helped boost her efficiency: She estimates she spends 90% of her time working directly for clients, making more money for the firm." The article recommends that : "To be sure your time as a mentee is fruitful, experts recommend setting specific goals at the outset and revisiting them along the way, as well as looking for a mentor who has traveled the career path you seek and has the skills you need, instead of seeking out a mentor whom you like for personal reasons. " Franchisees may want to turn to retirees or " business leaders seeking to improve their managerial skills" as possible mentors.

Ongoing Training & Support Help Build Successful Franchises

One of the benefits of starting a franchise rather than a start-up business from scratch is that it allows the potential franchisee to start with a recognized brand name and also obtain the type of training that has proven effective over time for the chosen business. Any seasoned and successful business owner will admit to having learned from mistakes early in the business and a franchisee often has the benefit of not having to go through so much trial and error. Franchisors who don't provide good training and support to their franchisees can see their franchises wane over time and also create unnecessary ill will among existing franchisees. Good training and ongoing support benefits the franchise as a whole and individual franchises. It can also provide franchisees with peace of mind to make an investment in an established business even if they have not had much business experience. This is especially true for young entrepreneurs. Good training programs should be ongoing and provide details about the business products and services, information on accounting, services and inventory and tips for handling lease and other negotiations to make sure that local and state laws affecting the industry are followed and the proper licensing secured among other factors.

Going Green Good For Environment and Franchisors

Franchisor FOCUS Brands has found that reducing paper has not only helped the environment, but has lead to substantial savings. According to this article, "companies that reduce or eliminate paper-driven processes not only help the environment but also help their bottom line by improving productivity, increasing compliance, reducing storage costs and eliminating time lost to misfiled information and disorganization." FOCUS Brands Inc. is the franchisor and operator of over 2,100 ice cream stores, bakeries, restaurants, and cafes under the brand names Carvel®, Cinnabon®, Schlotzsky’s®, Moe’s Southwest Grill®, and the franchisor of Seattle’s Best Coffee® on military bases and in certain international markets. "FOCUS Brands is a prime example of a company that is not significantly different from healthcare, finance or any other type of business – in that it handles confidential information. The multi-brand organization manages legal affairs, finance, audits, private franchisee and personnel records, etc. in house and, as a result, has to securely and efficiently manage, store, access and responsibly dispose of confidential information. For companies across all industries, paper retention and disposal drives up operating expenses and slows productivity."

Franchising For Young Franchisees

Franchising certainly provides those in mid life or with retirement assets an opportunity to experience entrepreneurship. However, franchising may also be a good experience for those in their twenties or thirties. Many college graduates in today's job market may find stiff competition to start a good career. Their lack of experience may make that task harder. Franchising could allow them the opportunity to gain valuable business experience and training for future business or career opportunities. Depending on the franchise, lack of experience doesn't necessarily preclude business success. Good franchises provide franchisees with ongoing training and support. In addition, the nature of franchising is that it generally offers the advantage that is lacking in a regular start-up business. A developed brand is proven and the success of the business opportunity can be explored through investigation of the franchise prior to actual investment. Early sales experience in high school or during college, while not lucrative, may be an additional edge for a young entrepreneur exploring franchising. Financing may be tricky, but there are low investment franchise opportunities and even young franchisees with good credit may not find this a major handicap.

Patient Advocacy Growing Arizona Business

Hiring help to get you through the hospital process is a growing trend that is emerging in Arizona and across the country according to this article. "As hospital care grows increasingly complex and medical errors kill some 100,000 Americans every year, a whole new industry is forming to deal with this disaster — offering hired help to get you through your hospital stay alive....Arizona — with the nation's longest ER wait time and an extreme shortage of doctors and nurses — should prove fertile for the fledgling business." Family and friends can perform the function of sherparding a patient through their treatment at a hospital particularly if they are familiar with the patient's medical history. "But the services of paid advocates are automatically exclusive — available only to those who can afford them. That troubles many in this new business, and sets the stage for scams and frauds targeting vulnerable, often elderly patients.
Patient Care Advocates charges an upfront fee of $1,895 for two years of patient advocate service, available whenever it's needed. They say that does not cover their actual expense of performing the service, which is supported by the other part of their business, home health-care services." However, some US corporations have added this service to their employee health care plans which appears to indicated continued demand.

Clothing Franchisee Describes Highs and Lows of Being a Franchisee

Megan Albers is the owner of Girl Boutique, an upscale clothing store that specializes in designer labels in Overland Park and believes her network of family and friends have helped make her store a success. According to this article, being a part of a franchise in which the owner helped her get in touch with needed vendors was also an asset. The franchisor "had established relationships with many of them, and they were all willing to help me in some form or another. It would have been hard getting some of the vendors I wanted because of pre-existing boutiques around me and simply not knowing how to even approach these vendors.” She also discusses the limitations of having a franchise and how she makes her individual mark. “Since we are required to have the same walls, floor, etc., it is somewhat hard to present that flair you want. The way that I put my own personality into the store was making my own custom desk, and adding furniture pieces. … I wanted the shop to have a feel of a little rustic boutique that was funky and fresh.”

Why Arizona Might Be A Good Place for Franchising

Kathleen Connell, PhD, a professor at Haas Business School at the University of California, Berkeley thinks that if you are burdened by taxes, city and state tax codes differ to such an extent that location should be something worth considering. According to this article, "The amount of variation is striking. Families earning the same income experience significant differences in the tax burdens they shoulder, depending on where they live." With respect to Arizona, she mentions that: "The bordering states of Arizona, California, and Nevada also create tax opportunities for residents who may choose to work in California, but reside in the lower tax states of Arizona or Nevada. Check out your state's competitive position at the website of the Tax Foundation (www.taxfoundation.org/taxdata/), a Washington-based nonprofit group." This may have little to do with the business tax consequences for the franchisor, but it may impact the decision franchisees make in determining the appeal of an Arizona or California Franchise that has individual tax appeal. "For relocating retirees, however, the tax profile of a community emerges as a primary consideration. Smart retirees seek communities with the lowest income, property, and sales taxes – levies that can add up to significant expenses on a retirement budget."

Roy Rogers Food Restaurant Tries Franchising to Boost Sales

The Roy Rogers food chain has done as well as hoped in the past several years. According to this article, Jim Plamondon the co-director of the restaurant chain hopes to try franchising as a means of bringing back loyal customers. "If things go according to plan, recovery lies ahead. The company is operating a booth during the International Franchise Show today and tomorrow at the D.C. Convention Center, a sign that Roy Rogers is trying for a comeback."

Blimpie, Cold Stone Creamery franchisor Has New President

Kahala Corp., an Arizona Franchise of food franchise concepts based in Scottsdale, Arizona announced a new president. According to this article, Chris Prasifka was announced as president of Kahala Franchise Corp., "franchisor for Kahala's portfolio of brands that include Blimpie and Cold Stone Creamery." Prasifka will help "spearhead efforts to reach a companywide goal of 10,000 operating units by 2010." Before joining Kahala, Prasifka "was senior vice president of franchise operations and strategic development at Compass Group's Canteen division."

Arizona Franchise Launches Ugliest Bathroom Makeover Sweepstakes

Re-Bath is a privately owned company based in Tempe, Arizona with nearly 200 franchises operating throughout the United States, Canada and the Caribbean. Re-Bath franchise owners help clients improve the value and beauty of their bathroom. The remodelling Arizona Franchise has recently paired with a home improvement radio show to present the Ugliest Bathroom Sweepstakes. According to this article, will join "the hosts of the #1 national home improvement radio talk show “On the House with The Carey Brothers and Rebecca Cole” to present the Ugliest Bathroom Makeover Sweepstakes. “On the House” has been hosted by The Carey Brothers for over 20 years, offering home improvement advice to listeners and call-ins alike."

International Franchise Association and SBTV Promote Franchising Industry

Small Business Television, the Internet’s first television network (SBTV) has joined the IFA-International Franchise Association to provide small businesses with the latest in franchising news. The two organizations appeared together at the IFA’s 48th Annual Convention in Orlando. According to this article, IFA president said: “Franchising is growing rapidly, not just in the United States, but around the world,” IFA Pres. and CEO Matthew Shay said. “This joint effort serves to educate prospective small-business owners who are investigating a possible franchise purchase and help those who operate franchise systems and establishments to stay abreast of the latest news affecting the industry.”

Five Star Painting Announces a New Arizona Franchise Opening

Utah-based Five Star Painting Inc has grown to 48 franchises in North America and is one of the fastest growing painting franchises in North America. According to this article, the Franchise System announced today that Sonny Tesch and Mike Scanlon have purchased a new Arizona franchise location in the Phoenix, Arizona market. "Five Star Painting is seeing phenomenal expansion from current and new franchisees in order to meet the growing demand of its clients across North America. Sonny Tesch and Mike Scanlon are an experienced team with strong professional ties to the area. Sonny has been in Phoenix for 9 years and has owned and operated a successful financial services business during that time."

Franchising Your California or Arizona Business

Even in a rough economy franchise lawyers receive calls from small to mid size businesses that are doing well and are at the point where they really need to expand to continue or increase that success. There are even businesses, as strange as it may seem, that fold because the demand for their products or services exceeds their resources to meet that demand and they simply fall apart trying to meet that demand. We will revisit the topic of franchising from time to time on this blog.

Why Franchising is an Option for some Businesses:

• Cost. Franchising is not cheap, but finding the equity or capital to expand a business without franchising can be more costly. Setting up a franchise system requires the input of professionals to meet legal requirements and properly plan the expansion of the business. Franchising allows some businesses to structure the expansion in a way that some of the costs of a regular business expansion are the responsibility of the franchisee. E.g. Lease or service contracts.
• Management. If a business were to expand without franchising, it would be hard to do so without hiring additional staff to manage additional outlets. Good Franchisees essentially serve the same basic functions your ideal manager might serve in an expanded business. Because franchisees have a stake in your business, indeed, they own the unit that you sell them, with the training that you provide and the guidelines under which they operate, franchisees can spare a business the risk of finding managers who are not sufficiently motivated or finding good managers who may leave at any time they choose. It is not unusual to see franchise agreements that are 10 to 15 years.

California Franchise Does Well in Rough Economy

Jason Brown and Vikki Hardy Brown bought into the Edible Arrangements franchise in 2006. Edible Arrangements is a Connecticut-based chain. According to this article, despite the downturn in the economy, "Their gamble is now paying off as their fruit-arrangement business is no longer just paying for itself; it's starting to turn a profit." They now own a second franchise. Edible Arrangements "has grown from a handful of stores in the Northeast to nearly 800 in only 9 years of franchising thanks to its novelty -- specializing in high-end, handmade fruit baskets and arrangements -- and its healthy twist." Apparently, despite the current state of the economy, the Browns say that none of the Edible Arrangements Franchises have closed.

Bankruptcy Filings Expected to Increase as Economy Slides

Although changes in the Bankruptcy Code in October 2005 made filing for bankruptcy more complex and expensive, it's anticipated that individual bankruptcies will increase nationwide significantly as the economy continues it's downward turn. According to this article, "National statistics indicate the trend is well under way, with bankruptcy filings by individuals up 27 percent nationwide in the first quarter of 2008 compared to the year-ago period, according to new figures from the American Bankruptcy Institute, a research and education group.Individuals' bankruptcies nationwide rose 40 percent in the 2007 calendar year compared to 2006. The ABI, which bases its figures on data from the National Bankruptcy Research Center, said the increase is due to rising household debt and growing mortgage problems. "

Internet Marketing Workshops for Small Businesses in Arizona

Front Page Public Relations is a marketing communications firm based in Gilbert, Arizona. According to this article, the firm will be holding "a new 10-week series of weekly Internet marketing workshops to teach small business owners how to generate more sales leads and significantly increase their monthly revenue using cost-effective Internet marketing programs and the power of the Internet. The classes are held in Gilbert, every Tuesday night and cost $25 to participate."

Geeks On Call Franchising Audio Interview

Richard T. Cole, CEO of showcase company, Geeks On Call Holdings, Inc. will be presenting an audio interview describing the core strengths of Geeks On Call and the difference between Geeks on Call and Geek Squad. Geeks On Call provides on-site computer service and solutions to small business and residential customers. According to this article, Mr. Cole discusses how Geeks On Call began franchising in 2001 and the substantial growth the company has experienced since that period, both within the franchise model, as well as their corporate-owned territories in Phoenix, Tucson and Scottsdale, AZ. "We are aggressively pursuing a true national footprint for Geeks on Call" he stated.

Private Investigations Franchise To Exhibit At The International Franchise Expo

If you have executive and management experience and business savvy and people skills, L&W Investigations is actively pursues franchisee candidates with this expertise. L&W Investigations, the foremost private investigations franchise specializing in insurance fraud. The franchise will be exhibiting at the 17th International Franchise Expo (IFE), sponsored by the International Franchise Association (IFA), at the Washington Convention Center in Washington, DC April 11-13, 2008. Accoring to this article, "L&W Investigations offers a franchise opportunity like no other here at the IFE show""a private investigations firm specializing in insurance fraud," said Steve Butler, franchise owner, L&W Los Angeles. "Besides being a unique franchise offering, you don"™t need a day of experience in private investigations to be successful. I know in my own case, the skills I used in my career as an HR executive are a perfect fit in running my franchise and I know other people with sales and management experience can also look at L&W and see a great fit for the experience and skills they bring to the table."

Are School Unforms A Good Arizona Franchising Opportunity?

Yet another Arizona School has taken the plunge in adopting a school uniform policy. Mesa Junior High tried to adopt the mandatory uniforms measure three times in the past four years in an effort to curb teen crime and behavior problems. School board members have finally approved the measure which will require these Arizona students to begin wearing uniforms next school year. According to this article, Mesa Junior Principal Cathy McDaniel wrote to the board, "We believe this will decrease our number of behavior referrals, particularly dress code and gang activity." We wonder if this could be a good franchising opportunity for Arizona mom and pop small businesses. According to this article, "entrepreneurs Brian and Jamey Elrod started franchising their school uniform stores five years ago, they have gotten pretty good at it." The husband and wife team have decided to take their business success to the next level "by offering small, mom-and-pop operations the chance to buy into Educational Outfitters." If the school uniform trend continues in Arizona, this may be potential franchising opportunity here. (Though currently, " Only five neighborhood elementary schools out of 58 require them: Longfellow, Lowell, Lincoln, Holmes and Eisenhower. ") Brian and Jamey Elrod's franchising company, Educational Outfitters Franchising LLC, just completed its first conversion franchise in Louisville, Ky. "The cost to convert a store will vary, but Mr. Elrod said the average amount would be about $25,000 total, including the franchise fee and other things like signs and updating computer systems." John and Wanda Clark own a school uniform franchise in Chattanooga, TN. They opened a second franchise last year "this time taking the concept into what Mr. Clark said was a new and fast-growing market, Huntsville, Ala. Mr. Clark, who worked in the textile and apparel industries before he and his wife opened their Educational Outfitters store on Gunbarrel Road, said the couple has found great success with the franchise."

Growing California Service Franchises offer Popular Franchising Opportunities in Tough Economy

Local California franchise consultant Cheri Carroll believes that a tough economic period may be the best time to consider owning a service franchise. According to this article, "One factor in franchise choices is home equity — how many new franchisees financed their businesses in the past, she says. Since equity loans aren’t as available or as generous as they once were, service businesses with their much lower entry costs offer a path that many are taking to beat the economic blues,” said Carroll. In San Diego, consulting businesses, executive training services and businesses that offer nonmedical services to seniors appear to offer popular franchising opportunities. There seems to be some support in the numbers. According to Carroll, “While a franchised sandwich shop may cost $120,000 or more for the build-out and equipment, or $300,000 for a retail shop, a service business can cost as little as $20,000 to get started, with almost no overhead.” Franchising appears to be doing particularly well in California. According to an International Franchise Association report sponsored by the U.S. Small Business Administration, "Franchise businesses now make up $1 trillion in U.S. direct economic output."

AAHOA Releases 2007 Report on Franchisor-Franchisee Relationships and Fair Franchising

The Asian American Hotel Owners Association (AAHOA) is one of the fastest-growing organizations in the hospitality industry with 8,700 members owning more than 22,000 hotels, many of which are franchised. The Association puts out a progress report that evaluates franchise companies against AAHOA's 12 Points of Fair Franchising. According to this article, the association released its 2007 report today on Fair Franchising "that offers insight into franchisor-franchisee relationships and provides a tool for holding franchise companies more accountable for their practices and agreements." Mukesh Mowji, 2006 AAHOA Chairman and visionary behind the process, said "this is a first step in a journey toward 12 Point compliance. It is imperative that AAHOA and franchise companies continue progressive dialogue to improve agreements."

Resort Spa Franchise Expanding in Arizona

A local couple is opening a new Hand & Stone Massage Spa in Phoenix. Though three Hand & Stone centers currently operate in Scottsdale, Anthem and Chandler, Jill Fleming and her husband, John are opening this new Arizona Franchise in March at Cactus Road and Tatum Boulevard. According to this article, "three more are expected to open in north Scottsdale, Ahwatukee and Chandler during the year." Hand & Stone franchises allow a monthly membership which offers spa treatments to members at a more affordable rate than some resort spas. "The spas were founded by John Marco, a physical therapist who saw a need in the marketplace for high-quality, convenient and affordable massage-spa services under one roof." The centers offer a range of treatments such as cold stone facials, hot-towel foot exfoliation and hot stone massages. "Membership at the center is $49.95 a month and includes a monthly massage and discounted rates on other services A 50-minute, hot-stone massage is $59.95 for members and $89.95 for non-members. The center offers an introductory relaxation massage for $39.95."

Lights Out for Phoenix, Arizona Businesses

The city of Phoenix is encouraging both residents and businesses to conserve energy by turning off their lights for an hour on March 29 to observe Earth Hour. Many government and business buildings will be participating by turning off the majority of their lights. Lights needed for essential functions such as public safety will remain on. According to this article, "More than 25 cities including Phoenix, Chicago, Atlanta, San Francisco, Bangkok, Sydney and Toronto are participating in the international event organized by the World Wildlife Foundation."

Provision Adds New Requirement to Arizona's Employer Sanctions Law.

HB2745 provides clarification to Arizona's new Employer Sanctions Law and also adds a new provision that would prohibit state and local agencies from issuing business licenses and permits to individuals who cannot prove they are in this country legally. Rep. Russell Pearce, R-Mesa says that such licences would include an Arizona driver's licence and "everything from a state sales tax license and state incorporation to the permitsissued to independent food vendors." According to this article, the legislation "adds provisions designed to provide new protections from prosecution for companies who follow special procedures to check the legal status of new and existing workers. HB2745, which will go to the Senate after a final roll-call vote, also clarifies who is an employee whose identity and legality must be verified, versus an independent contractor. It also adds new provisions to the statute about companies that pay their workers in cash." Pearce explains that the legislation "simply ensures that those not authorized to work in this country will not "compete against the honest business."

Starting Your Own Business Versus Becoming a Franchisee

During other periods of economic downturn, many people who lost jobs and regular salaries found hope in starting their own business and becoming entrepreneurs. Sometimes it takes a firm shove to get people to focus on what would otherwise have remained as dreams. Starting a franchise has many pros and cons that we will revisit from time to time on this blog. Here are a few that you may want to consider:

Benefits of Franchising:

• Training, Support and Experience. Many franchisees enjoy the idea of not having to "start from scratch" with a new business.
• Established business plan.
• Proven methods and Technology.
• Marketing assistance. Many Franchisors have national campaigns that can benefit local franchisees.
• Recognized brand name.
• Collective purchasing power from vendors.

Benefits of Starting Your Own Business

• No royalty fees.
• Freedom to relocate or sell other items.
• More creativity in how you sell your product.
• Start up costs may be lower.

These are only rough generalities. Not all franchisors provide the experience and training that you might need. Some may micro-manage you to pieces. Also, much may depend on the type of franchise you purchase. Some industries are growing while others are somewhat stagnant. Also, it doesn't help to pick a franchise performing work you will not enjoy. Many franchisees find that it suits them best to pick a franchise based on a personal interest or type of personality. Those who tend to work well on a team find franchising appealing. You work for yourself, but not all by yourself.

California Food Franchise Has Record Sales and Expansion in Slow Economy

Shakey's(R) USA headquartered in Alhambra, CA first opened its doors in April 1954 in Sacramento, CA. Despite a troubled economy, the restaurant franchise is remodelling several franchisee restaurants and is opening new corporate and franchisee stores. According to this article, CEO Joe Remsa's "keen understanding of the brand heritage, equity and vision coupled with his solid working relationship with the Shakey's franchisee body, deemed him a natural successor to the post. Remsa ushers in a new era of stability and brand confidence amidst a growing national demand for Shakey's presence beyond the western region." Remsa explains "Shakey's is an important part of American culture, holding a place in the lives of families over many generations and during economic crisis, consumers and franchisees take comfort in our brand because it reconnects everyone around a simple yet somehow forgotten concept called 'family meal time.'"

Extended Stay Hotel Chain is Awarded Exclusive Franchisee Satisfaction Award

The Franchise Business Review is a national franchise market research firm which conducts a survey each year of franchises and franchisee satisfaction to help prospective franchisees evaluate a franchise system. Several key areas of hundreds of franchises are surveyed by thousands of franchisees including training and support; operations; the franchisor/franchisee relationship; and financial opportunity. According to this article, "Value Place is the only hotel chain to earn a spot on the coveted FBR 50™ list, recognized as the most exclusive award in franchising." Eric Stites is the founder and president of Franchise Business Review. According to Stites, "For people considering a franchise investment, satisfaction among current franchisees is one of the most critical factors to consider. Our goal is to help simplify the franchise research and buying process and help entrepreneurs discover the best franchise opportunities in today's marketplace."

Arizona Bank to help Minority Small Businesses

Gilbert Jimenez is the proposed president of Colonia Bank (in organization) one of two banks that plan to move into new offices in Arizona in the upcoming months. He is also a graduate of Arizona State University and has held executive positions in Arizona. According to this article, "Jimenez said these banks plan to specifically cater to small and medium-sized businesses, especially in the Hispanic and multicultural community. Not only are multicultural citizens everywhere, so are small businesses." Jimenez added, "about 47 percent of Arizona's population is multicultural. About 35 percent is Hispanic.The bank is also expected to serve not-for-profits and women-owned businesses." This may be good news for Arizona franchisees in need of financing since Jimenez states that the banks intend to offer the full array of services of any bank. " Colonia has received approval from the Arizona Department of Financial Institutions to organize and begin raising between $8 million and $10 million in initial investment capital. The bank welcomes the small investor."

Franchisor AlphaGraphics Continues to Grow through Franchising

AlphaGraphics is a print and visual communications franchisor with more than 260 AlphaGraphics franchises located in the United States and worldwide. AlphaGraphics continues to expand through franchising despite industry trends in a slow economy and difficulties in the printing and visual communication world to attract new clients. According to this article, Art Coley, AlphaGraphics' senior director of franchise development explains ""AlphaGraphics provides its franchisees with leading-edge programs and technologies that add significant value to their relationships with their customers." AlphaGraphics CEO, Kevin Cushing adds, "The ultimate test of any franchisor/franchisee relationship is when it comes to the expiration of the franchise agreement and both parties are free to go their separate ways. We are extremely pleased and proud that during the past few years 100 percent of our owners whose franchises were due to expire have accepted the opportunity to extend their agreements and stay in the AlphaGraphics network. Fourteen owners have been offered the opportunity to extend their agreements with us in the past two and a half years, and all fourteen have accepted. That renewal rate is unheard of in our industry and is a real testimony to our network of franchisees and our team at the AlphaGraphics Service Center. They know they are a part of a leading and winning brand."

International Franchise Association elects New Board Member

The International Franchise Association's board of directors has elected ADIR Restaurants Corp. Pres. and COO José J. Cofiño as a new member. According to this article, "Cofiño serves on the board of directors of the IFA Diversity Institute and is a member of the Minorities in Franchising Committee. Pollo Campero is a participant in the IFA Educational Foundation's MinorityFran program, which aims to increase the numbers and success of minorities in franchising at all levels." The IFA was founded in 1960 and its membership consists of franchisors, franchisees, and suppliers. The group promotes franchising and is a source of information for anyone interested in starting a franchise.

How Does Starbucks Ruling Affect Franchise Owners?

A San Diego Superior Court Judge Patricia Cowett ordered coffee chain Starbucks to pay more than 100 million dollars in tips and interest owed to staff in a ruling that stated that supervisors are precluded from sharing in tips from the tip pool intended for employees. According to this article, an attorney for Starbucks servers stated: "California law allows employees to pool tips, Lowe said, though supervisors, managers and owners -- anyone with the authority to oversee or direct other workers -- can't be paid out of the pool." The caution for franchise owners? According to this article, Connie Alexakos, vice president of marketing for the Hawaii-based company, the Bad Ass Coffee Co., states that "it's up to franchise owners to comply with employment laws of their states. She said she read the Starbucks ruling but wasn't clear whether it affected the way Bad Ass franchises need to operate."

Marco's Pizza Opening Several Franchises in Arizona

According to Area Director David Jeffers there are still Tucson and Southern Arizona franchising opportunities available. In fact, there is a Franchise Information Seminar planned for April 22 at the Hampton Inn on North Oracle Road in Tucson. According to this article, "Jeffers announced the first of eleven Marco's Pizza stores slated for the Tucson area will open on March 28th." The article adds that "Marco's Pizza is based out of Toledo, Ohio and is the only Top 25 Pizza Chain whose founder is from Italy. As such, the new store will feature Ah!thentic Italian pizza, toasted subs, salads, chicken wings as well as soft drinks with carryout and delivery service."

Arizona Sweet Business Targets Non-Food Retailers

Jim Schweikert and his Chandler-based company Liberty Distribution Co. LLC has established a nice little niche market targeting businesses that don't sell food. He has managed to expand to a 90 person company and according to numbers the company provided has charted average annual compound revenue growth of 26 percent over the last four years. According to this article, his business model works because he "distributes to stores where customers go to buy DVD players, ply wood, air conditioning filters and cat litter, not breath mints, beef jerky or Sour Patch candies. But the placement of these products at the checkout has helped even non-food retailers to bolster their sales. " By using proprietary software to track sales and replenish their customers' inventory as they run low, Schweikert has been able to turn a profit.

Greater Phoenix Manufacturer's Survey Reveals Poor Outlook for Economy

A new survey shows that Phoenix-area manufacturers aren't that rosey about the economy. According to this article, the survey indicates that Greater Phoenix Manufacturers "are gloomy about the U.S. economy and, compared with previous years, have been hiring less and watching demand fall for their products here and abroad."

Arizona Food Franchise Posts Nutritional Food Content for Customers

Canadian Franchise Extreme Pita has installed the Nutricate Receipt system in all of its Arizona restaurants to help consumers make better nutritional choices. The restaurant is currently in seven locations in Arizona including, Chandler, Phoenix, Scottsdale, Tempe and Tucson. After ordering, customers get a receipt that prints out calories, fat content tips and other food related information. The company has installed the system in all of its Arizona locations and plans to expand to other locations. According to this article, "the Nutricate™ Receipt system provides consumers with a convenient and meaningful way to understand their nutritional options. Customers receive a customized receipt highlighting the calories, fat, carbohydrates, protein and nutritional daily value for everything they order. The receipt also offers tips on how to eat healthier by providing additional information on the receipt such as “Did you know? If you choose lite mayo instead of chipotle mayo on your pita you will save 160 calories and 10 grams of fat?”

Restaurant Franchisor Assumes Operation of Struggling Franchisees

Father-son duo Paul and Scott Mobley who own Noble Roman’s Inc. a Restaurant Franchise have assumed the operation of six franchised restaurants in Indianapolis. According to this article, " The locations had been operated by a single franchisee, local businessman Steve Patton." Taking over these franchisee units "is a departure for a 36-year-old company that now focuses almost entirely on franchising; Noble Roman’s owns only two locations, primarily for training purposes." Paul Mobley feels that the move is the right one for the company and that they can demonstrate success. The article adds that "Noble Roman’s has reinvented itself several times over the years since launching in the 1970s as a chain of dine-in restaurants. In 1997, after intense competition and rising costs made stand-alone pizza joints difficult to operate profitably, Noble Roman’s turned to franchising nontraditional outlets like bowling alleys and gas stations—a strategy that has paid off handsomely. The chain has sold hundreds of franchise owners on features such as a fast-lunch system and a proprietary partially baked crust that ensures Noble Roman’s pizza always tastes the same and can be cooked quickly."

California Franchisor Expands in Down Economy with New Franchise Locations

Based in Brandon, Florida, i9 Sports is a Franchisor of youth sports leagues, camps, and programs in over 100 locations and several states nationwide. The California franchise is opening new locations each month and apparently participation by youth leagues continues to grow. According to this article, company Founder/CEO, Frank V. Fiume says: "History shows that regardless of the economy, kids play sports. As a business, this is a very attractive aspect of our franchise." He adds, "We work hard and play hard -- but it's all for the love of the i9 Sports brand. The passion that our franchisees and customers share is contagious. It's the ultimate career."

Intensive 2 1/2-day Franchise Workshop In El Paso, Texas

The University of Texas at El Paso's Franchise Center is offering an intensive 2 1/2-day certificate program next month April 24-26. If applicants apply fast enough, they may be eligible for any one of twelve scholarships that are available, worth $875 each, but the deadline is April 1 to apply for financial aid. The program is open to anyone who wants to learn about franchising. According to this article, one El Paso native Marc L. Stelley who attended in 2004 and now has a gyme with more than 600 members says of the program, says"I think it was tremendously informative. It guided me to wisely choose a franchise that caters to my lifestyle. That's very important. Basically, they gave me all the information you need, from legalities to bank loans. It covered all the bases you need to open a business, whether it's a franchise or you're starting a business on your own."

IHOP Sells 41 Applebee’s Restaurants to California Franchisee

Apple American Group LLC is the largest franchisee of the Applebee’s chain bought by Ihop Corp. last year. According to this article, "When Ihop bought the Applebee’s chain last year, Ihop said it wanted eventually to sell 475 company-owned Applebee’s stores to franchisees. Applebee's is about 70 percent franchised. Based in San Francisco, Apple American owns and operates 145 Applebee's restaurants in eight states including California." It appears that future development of several Applebee's restaurants will take place in Southern California and Nevada.

Blue Moon Mexican Café Expands into Franchising

Blue Moon Mexican Café just opened its first franchise location in New City, NY. CEO Howie Felixbrod has been in the restaurant business for over 30 years and has businesses in several locations. According to this article, Felixbrod explains that “The next logical step for us to grow the company was through franchising. Our biggest advantage is we can open a store without the exorbitant start-up costs associated with most restaurant franchises.” Felixbrod says the company plans to add 3-5 new franchises this year. They are soliciting potential franchisees in New York, New Jersey, Pennsylvania and Connecticut.

California Franchisee Fitness USA enters Franchise Agreement with LA BOXING

Fitness USA Inv, a health and fitness gym, is the wholly owned subsidiary of Montana Mining Corp. The company has entered into a franchise agreement to "become the exclusive franchisee of LA BOXING for the Beverly Hills/Brentwood area of Los Angeles, California, US" according to this article.

Home Inspection Franchise Makes Franchise Business Review Top 50

The Franchise Business Review (FBR) surveys thousands of actual franchise owners to evaluate their franchise systems. Every year the FBR announces its Franchisee Satisfaction Awards which highlights the franchises that received the highest praise from their franchisees. Some of the large systems making the top 50 list include The Maids Home Services, Carlson Wagonlit Travel and Sotheby's Real Estate according to the FBR list. According to this article, made the top 50 franchise list again and "broke into the top 20 on this elite top 50 list". HouseMaster was the first home inspection franchise and has been in operation since 1979.

Small Business Loan Resources for Arizona Franchisees

Once you finally find that franchise opportunity of your dreams, the issue of financing can freeze some potential franchisees from pursuing their lifelong goals. Certainly, there are many costs involved in purchasing a franchise beyond the franchise fee or royalty payment. These may include costs to purchase equipment for your franchise, advertising or training. There are various strategies or resources that franchisees use to raise money for their franchise. They may include second mortgage loans, borrowing money from the franchisor, family or friends or looking for a partner. Many franchisees also look to their local Small Business Administration or SBA as a possible source. The SBA in Arizona is located in Phoenix Arizona at 2828 North Central Ave. Telephone: 602.745.7200. Click Here for additional or updated information on the SBA's requirements for lending.

One California Franchisee's Success in a Slow Economy

Shawn Crawford's path to franchising was a result of not wanting to wait out whether his job as director of operations for a physician group was going to be eliminated as the economy took a turn for the worse. He researched opening his own gym but according to this article, "when he started looking into the costs involved in such a venture he became discouraged, that is until he came across some research that showed huge growth potential in health and fitness franchising." From among the various fitness franchises he researched, the Californa Franchisee settled on Snap Fitness, a Minnesota-based fast-growing franchisor of 24/7 fitness centers in the United States and Canada. He is pleased with his success and plans to open a second club in April of 2008. His advice to potential franchisees is to "do some investigative work. Talk to a business broker, pick up and read copies of Entrepreneur and the Wall Street Journal, and when they’re ready to proceed contact a franchisor like Snap Fitness directly. Most franchisor Web sites provide rich information about the business model, financial requirements and much more, and they grant access to executives and franchisees during your discovery process."

Franchising Entrepreneur Finds a Way to Make Millions in a Bad Economy

The Dublin Franchise Sliderobes sells made-to-fit home improvement furnishings. Its owner Mick McAleese claims that he used the "serious" mistakes that his company made which included poor location choices and inadequate management to turn the business into a multi million business in the middle of Dublin's recession in 1983. According to this article, the company underwent a process of intense assessment and "saw franchising as a low-risk road to expansion.” McAleese explains the company's appeal to potential franchisees. “Our big sell when attracting franchisees was, ‘look, we’ve got this tried-and-tested business formula and we’ve made all the mistakes for you so you don’t have to. We’ve found the best way of doing things’”. When looking for the right franchisee, McAleese says the company looks for "franchisees with solid management experience." He believes that their experience best helps them cope with the challenges of running a business.

Franchisors Feel Just Fine About the Future of Franchising

At the Hunter Hotel Investment Conference last week in Atlanta, many franchisors in the hospitality industry expressed optimism regarding continued growth. According to this article, one franchisor, Doug Collins who is President & CEO of America's Best Franchising stated that he "sees franchising in the mid market arena as a consistent business, with little variation due to any economic factors so far. Things are about the same in limited service. We are kind of steady like the turtle. We see steady growth every year. " Collins added that "(I)n 2007 the company opened 45 Country Hearth Inns & Suites and America's Best Inns & Suites properties." Collins believes that the company will open 50 franchised hotels this year.

Is the Fast-Food Industry Losing its Grip on Franchising?

The Wall Street Journal's recent evaluation of high-performing franchises, appears to indicate that fast food franchises are loosening their grip on the franchising industry while franchises in the services industry, such as health and fitness, security and consumer services are taking their place. According to the article, "fast-food and casual-dining businesses, while still showing strength, with eight names on the list, also are facing pressure from wage and food cost increases. To lower operating costs, several food franchises already are shuttering some locations." Among the high performers on the WSJ list were Home Instead Senior Care, Abbey Carpet & Floor and The Maids International. According to the article the list is diverses. "In fact, there are now more than 230 lines of businesses that do franchising, according to FRANdata, an Arlington, Va., independent research firm that helped analyze franchise data from the past three years and compile the list."

International Franchising-Franchisors are Spending Millions to Recruit Franchisees

Expos, word of mouth, internet marketing, magazine advertising and other techniques are part of the aggressive marketing techniques many Australian Franchisors are using in a desparate attempt to attract Franchisees. According to this article, a study by market research firm 10 Thousand Feet found the sector spent $44.4 million on marketing to franchisees in the year to September 2007. Many former stategies apparently did not focus on women who are now seen as a huge untapped market. Local mortgage broker Refund Home Loans, recently named Australia's fastest-growing franchise by outlets, targets recruits through TV info-mercials.

New Vice-Chairman of the International Franchise Association’s Marketing and PR Committee Elected

Scott Frith , Lawn Doctor's Vice President of Marketing and Franchise Development was recently elected vice-chairman of the International Franchise Association’s Marketing and PR Committee. The announcement was made at the IFA's annual convention that attracted 3,500 franchisors. According to this article, Frith announced: "The mission of the IFA is to protect, enhance and promote franchising. One way this committee can serve the association is to better educate the public and policy makers on the impact of small franchise businesses have on the economy every day," advised Frith on the focus of his new position. "Franchising is the engine that drives commerce in the United States today, and with that momentum, the IFA can serve entrepreneurs looking for long-term stability."

Arizona Surfer Bitten by the Franchising Bug

A former California surfer, Kevin Blackwell has turned a passion for fitness and smoothies into a mega franchising business. Many Arizona residents are familiar with Cold Stone Creamery ice-cream. Blackwell's Scottsdale-based Kahala Corp. is parent to well-known brands such as Cold Stone Creamery, Blimpie and Samurai Sam's Teriyaki Grill. Many of these franchises have a precence in Arizona. According to this article, Blackwell's vision is to have 10,000 franchise stores worldwide by 2010. Kahala Corp is headquartered in Scottsdale, Arizona. The article adds that company officials say the Scottsdale-based Kahala Corp. will take its Cold Stone Creamery brand into Scandinavia during the next five years and plans to have at least 40 stores in Denmark, Norway, Sweden and Finland.

Phoenix Arizona Franchisor Attorney

In addition to handling franchisees with litigation and transactional work, the Phoenix Law Office of Peter N. Greenfeld has recently expanded its representation of Franchisors. Before starting his own practice, Peter worked extensively with Franchisors in a large national firm well known for its Franchisor representation. With his long term experience, Peter has assisted Franchisors with litigation and disputes that arise with existing franchises. The firm also helps franchisors with setting up franchise systems. You can learn more about this Franchise Lawyer by clicking here to visit their website for Franchisees and Franchisors.

Discounts Available to Veterans Opening Franchises

The Veterans Transition Franchise Initiative, or VetFran program is a collaboration of the International Franchise Association (IFA), the U.S. Department of Veterans Affairs, the Small Business Administration (SBA) and The Veterans Corp. Terry Hill, vice president of communications for IFA, says that over 1,000 veterans have opened franchises through the program according to this article. A typical VetFran discount ranges from 15% to 25% off franchising fee costs. The types of franchises opened by prospective franchisees has included Aamco Transmissions, Rolly Pollies, UPS and its Mail Boxes Etc. stores.

Food Franchise Quiznos Featured on NBC's The Celebrity Apprentice

Teams on the reality show will compete to come up with a new sandwich lineup for the retaurant franchise Quiznos, but they will be limited to using ingredients found only in the Quiznos stores according to this article. The recipies of both teams will be sold at the Quiznos stores through April 6. Quiznos is a fast-food sandwich franchise that specializes in toasted submarine sandwiches.

Yakety Yak Wireless California Franchise Listed Among Entrepreneur Magazine's Franchise 500

Yakety Yak Wireless, an expanding chain of wireless phone retailers first opened in Arizona in 1999. David Timlin, CEO of Yakety Yak recently commented in a press release that the company was selected among Entrepreneur magazine’s annual “Franchise 500” list and is ranked at 470 according to this article. The wireless superstores offer a range of cell phones, calling plans and other wireless accessories.

Turning Tough Economic Times into Big Sales

Some retailers are seizing an economic downturn as an opportunity to increase business. Rather than blaming a recession for poor sales, some businesses appear to be doing quite well. Children's Orchard stores sell "gently used" kids clothing from brand name stores such as GAPKIDS, Gymboree, Tommy Hilfiger Kids and Ralph Lauren and took in $20 million in sales, up 5% from the previous year according to this article. The CEO of the company attributes this to a number of factors including a greater acceptance of recycling because of the 'green' trend.