Forward Franchising - Las Vegas, Nevada Franchise Attorney Matt Kreutzer

Igniting “The Hurt Locker”: Lessons In Brand Awareness From The Little Film That Could

Last weekend, my wife and I went to our local second-run movie theater to see The Lovely Bones, one of the only films up for an Oscar (Stanley Tucci, nominated for Best Supporting Actor) that we had not seen previously.  On approaching the theater, we were both shocked to see a long ticket line.  On the many occasions that we have been to that theater, it has never had a line.  We both wondered what movie could be drawing such a crowd?  The box office juggernaut that is Avatar wasn’t playing there, neither was Alice in Wonderland.  When we asked the ticket-taker, we found out that the movie people were lining up for was The Hurt Locker.  In fact, The Hurt Locker is currently playing at close to 300 theaters nationwide and is enjoying a moderately strong box office 9 months after its initial release.

Given that The Hurt Locker just won the Academy Award for Best Picture, it makes sense that people are going to see it.  After all, the film was able to beat out Avatar for the top award against what initially seemed like insurmountable odds. The Hurt Locker came out during the Summer of 2009, whereas Avatar was released in December (prime Oscar season).  Very few people saw The Hurt Locker during its initial release and, perhaps more importantly, almost no one had even heard of the movie before awards season. Oscar handicappers and talking heads all predicted early on that Avatar had Best Picture in the bag.  So how did The Hurt Locker pull it off?

Speaking At Minneapolis Franchise Show This Weekend

This is a late announcement, but I will be speaking this coming weekend (March 20 and 21) at the National Franchise and Business Opportunities Expo at the Convention Center in Minneapolis, Minnesota.  During my presentation, entitled Franchising 101: Practical Considerations for the Franchise Relationship, I will be discussing some of the critical aspects of franchising, and the documents that potential franchisees need to review and understand before signing on the dotted line. During the times that I am not presenting, I will be on-hand at Armstrong Teasdale's booth and available to answer your questions about the franchise industry.  If you will be in the Minneapolis area this weekend, please stop by!

The Effect Of Discounting On Franchise Relations

In a recent interview with Chain Leader magazine, Minnesota attorney J. Michael Dady briefly commented on the current state of the franchise industry.  According to Dady, one of the key problems currently plaguing franchisor-franchisee relations is widespread franchisor-mandated discount pricing programs.  Dady’s view is myopic but understandable, given that he represents franchisees exclusively. 

Taken from the perspective of a franchisee (as Dady does), discounting may appear harmful or even pernicious.  Most franchisors charge royalty fees that are calculated as a percentage of their franchisees’ total revenue, so an increase in overall sales systemwide means more money to the franchisor.  But this view vastly oversimplifies a complex issue and all but ignores the purpose behind discounting programs -- positioning the brand to better compete with similar systems. 

By decreasing prices, franchisors hope to increase the overall traffic to individual stores, thereby increasing sales volume.  And it works – when prices drop, customers come.  For example, through an aggressive pricing program ($5 footlongs), Subway has been able to make the brand one of the success stories through the current economic downturn. 

Nevada Franchise Business Network Meeting

The next meeting of the Nevada Franchise Business Network is scheduled to occur on Tuesday, April 6, 2010 at Cili restaurant in Bali Hai Country Club, 5160 Las Vegas Boulevard South, Las Vegas, NV 89119. The topic of the meeting is "Social Networking for Franchisors: Pitfalls and Potential," and will feature a program by attorney Craig Moore from the St. Louis office of Armstrong Teasdale LLP. Mr. Moore will speak about the use of social networking by franchisors and their franchisees, and the potential issues that franchise systems may face in connection with the use of social media.   

Registration will begin at 11:45, with the program scheduled to start at 12:00 P.M. Lunch will be served. The meeting is open to all members of the franchise community. There is no cost to attend, but please RSVP in advance to Mary Rodell at (800) 243-5070 ext. 7489, or mrodell@armstrongteasdale.com.

Matt Kreutzer Honored in Las Vegas "40 Under 40" List

In Business Las Vegas has named Armstrong Teasdale partner and Las Vegas-based franchise attorney Matthew J. Kreutzer as one of the city’s outstanding professionals. Kreutzer and 39 of his contemporaries are included in the publication’s 2010 “40 Under 40” list to be published on February 25.

This is the 10^th year In Business Las Vegas has recognized 40 outstanding professionals younger than 40. The honorees were chosen by a panel of six business community members based on community service, entrepreneurial spirit, and impact on their respective industry. They were honored at an event on February 25, at Pure Nightclub located inside Caesars Palace.