Franchising’s Dear Departed
Michael Jackson and Farrah Fawcett weren’t the only notables who passed away last year. Here are few of the legends in franchising who will be missed as well:
Norman Brinker, 78
Pioneer of the casual dining segment, heading such chains as Steak & Ale, Bennigan’s and Chili’s.
Troy Smith, 87
Founder of the Sonic Drive-in chain that popularized the car-to-kitchen intercom system.
Stan Bresler, 74
Co-founder and CEO of Bresler 33 Flavors, an ice cream company founded by his father, and founder and chairman of Affiliated Realty & Management Company.
Gidget, 15
The famous talking Chihuahua that starred as the embodiment of an 18-year-old male in Taco Bell commercials in the late ‘90s was euthanized. She was best-known for uttering, "Yo quiero Taco Bell."
Thompson Promoted to President/COO of McDonald’s Corporation
Don Thompson, president of the U.S. division of McDonald’s, has been promoted to president and chief operating officer of McDonald’s Corporation, which puts him in charge of 32,000 McDonald’s restaurants in 117 countries. Thompson’s former role has been filled by Jan Fields, promoted from executive vice president and COO for McDonald’s USA. Jim Johannesen, formerly U.S. Division president—Central Division, moves up to take Field’s position.
Thompson has been with McDonald’s since 1990, when he started as an engineer in the Restaurant Systems Group. Thompson oversaw the company’s recent specialty coffee rollout, and his promotion puts him second in command to McDonald’s CEO James Skinner. Speculation exists that Skinner is grooming Thompson to take over the post of CEO eventually.
Women’s Foodservice Forum Taps Woods for CEO
Fritzi Woods has been named president and CEO of the Women’s Foodservice Forum. Formerly chair of the board, CEO and president of PrimeSource Foodservice Equipment Inc., Woods has been a member of WFF since 2003, and recently volunteered on the Board’s Executive Committee as the 2009-2010 Chair Elect. She will assume the role this May. Linda Pharr will remain interim president until that time.
Sentinel Acquires Massage Envy
Sentinel Capital Partners, a private equity firm that invests in smaller middle-market companies, has acquired Massage Envy. Based in Scottsdale, Arizona, Massage Envy is a therapeutic massage services franchise with more than 600 clinics in 42 states, and systemwide sales of more than $450 million. More than 200 Massage Envy franchise licenses are currently in development. For the past 20 years, Sentinel has invested in multi-unit and franchise businesses such as Falcon Holdings (operated by Aslam Khan, subject of Franchise Times’ January 2010 cover story), Border Foods, Castle Dental, Cottman Transmission Systems, Interim Healthcare, Metro Dentalcare and Southern California Pizza Company. Financial terms of the transaction were not disclosed.
Mailpost Hearing Scheduled
The Australian Competition and Consumer Commission has instituted legal action against Mailpost, a print and distribution business for unaddressed promotional mail, and its director Peter Kritas for allegedly violating Australia’s Trade Practices Act of 1974.
Among other issues, the ACCC alleges Mailpost failed to provide prospective franchisees with a disclosure document, telling franchisees, prospective franchisees and sub-franchisors that Mailpost was not a franchise and therefore franchisees did not have rights under Australia’s Franchising Code.
A hearing is scheduled for February 3.
Court Rules in Favor of Forklift Franchisees
The New Jersey Supreme Court ruled in favor of Mitsubishi forklift dealer Maintainco Inc., upholding the New Jersey Franchise Practices Act, which protects dealers and other franchisees who have been "constructively terminated" by the franchisor.
Maintainco is entitled to continue as the exclusive Mitsubishi dealer in northern New Jersey, and the decision affirms the substantial award of monetary damages to Maintainco for the manufacturer’s constructive termination of its franchise.
"We have worked for over 20 years to build the Mitsubishi forklift business here in northern New Jersey. We made the investment in money, in sweat equity, and in dedication to Mitsubishi, so when they tried to destroy us, we decided that we could not let it happen," Said James G. Picarillo, president of Maintainco, said James G. Picarillo, president of Maintainco.
Taco Bell Founder Dies at Age 86
Taco Bell founder Glen Bell Jr. passed away January 17, at 86 years old. In 1948, the WWII vet opened Bell’s Drive-In in San Bernardino, California—a restaurant that stood out by serving Mexican food in addition to its more traditional menu of hamburgers and hot dogs. "Once he perfected his taco shell recipe, taco sauces and the convenient drive-thru concept, he was ready to introduce the tastes and textures of Mexican food to mainstream America," Taco Bell’s statement said. The first Taco Bell was built in 1962 in Downey, California, and in 1978, Bell sold his 868 Taco Bell restaurants to PepsiCo. Taco Bell currently serves more than 2 billion tacos and 1 billion burritos each year in more than 5,600 restaurants throughout the U.S. The company is now owned by Yum! Brands.
