By Angela Liu
July 14, 2008

Mayors of the nation heard from members of the International Franchise Association (IFA) June 20. Jon L. Luther, Chairman and CEO of Dunkin Brands, and a panel of leading franchise business operators from Bankers One Capital, McDonald’s franchises and Express Employment Professionals, discussed how to create a friendly business environment in cities to attract franchise companies.

Conference President Trenton Mayor Douglas H, Palmer applauded the importance of the franchise business in the local community, citing two statistical data where "franchising is a rapidly growing business model that currently generates over 21 million jobs and contributes over $2.3 trillion in annual economic output in the United States alone."

Luther expressed his appreciation toward all the mayors for supporting and working with the Dunkin Brand. He noted that Dunkin Donuts and Baskin Robin’s has stores in 2,592 cities and towns across America. Special gratitude was given to Boston Mayor Thomas M. Menino, where the Dunkin brand is founded in Quincy and headquartered in Canton (MA). Luther pointed out that small franchise business establish economic growth at the local level, as the businesses work closely with local suppliers, contractors and employees. To conclude his remarks, Luther noted that social benefits franchise business are deeply rooted in the local community, where the owners live and give back to local charity and community, making sure they are good local citizens and "establish social achievement and accomplish American dream." Dunkin Brands is the premier quick service restaurant franchisor with over 13,800 restaurants serving the Dunkin Donuts and Baskin-Robbins brands.

Panelist John (Jack) Earle, owner-operator of McDonald’s franchises since 1983, opened his first restaurant in Philadelphia. He is an officer of IFA and will become president of the organization in a few years, the third franchisee to be president in the past 50 years. Earl addresses this workshop as an opportunity for the business sector to speak and relate with the government officials. The IFA offers members resources to understand the consumer needs, as businesses such as the McDonalds restaurant have access and receive input from 29 million customers per day. Fred B Guttenberg, President, Fresco Development Group, Restaurant Management Group, the major Dunkin operating company in Florida, is named as the franchisee of the year by Dunkin. He noted that, "Franchise gave [him] the opportunity to take on the brand with a template and recipe and it is [his] own business, employing residents in local communities." Linda Hangborg, Senior Vice President of Public Relations, Express Employment Professionals, oversees cooperated communications and media relations over 600 express franchise worldwide, puts over 400,000 people to work. Express Employment Professionals work closely with minority and women franchisors, involving them as part of the business community. As a board member of NWDOC, she works with certifying women business owners, creating a support system to the small business owners. Reginald Heard is the President and CEO, Bankers One Capital, a financing firm serving franchise hospitality and commercial businesses. Bankers One Capital represent banking, accounting, legal and IT firms, where the industry does expand outside beyond the actual the franchisors. As a debt and equity placement firm, Heard works on securing financing for the franchisors to "keep viable capital flowing to the community, create jobs and opportunity growth."

Cincinnati Mayor Mark Mallory described programs Cincinnati has established to make better partnership with the franchise, called the Shop 52, as there are fifty-two neighborhoods in Cincinnati. The program runs workshops and franchise opportunity seminars in partnership with IFA. These workshops are to give the locals the idea of working and interacting with the franchisee, proving legal information and technical assistance. Next year, the city is hosting an event at the convention center to help people on individual basis to understand how to establish a franchise, such as how an individual’s credit can impact the establishment of a franchise. Mallory sees this as an opportunity to help revitalize neighborhoods, and help the franchisees to find interested individual business owners.

The presentation was followed by a discussion among the mayors and franchise operators, addressing the needs of franchise businesses and Best Practices programs that have worked in cities to attract franchise businesses.