Article Number : 4829 |
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| Date | 9/10/2009 8:22:46 AM |
| Written By | LGM & Associates Technical Flooring Services |
| View this article at: | //floorbiz.com/BizResources/NPViewArticle.asp?ArticleID=4829 |
| Abstract | KANSAS CITY, MO.—The U.S. may still be in a recession but there are enough positive signs that the conditional moratorium on new franchises put on by Big Bob’s Flooring Outlets of America’s last summer has... |
| Article | KANSAS CITY, MO.—The U.S. may still be in a recession but there are enough positive signs that the conditional moratorium on new franchises put on by Big Bob’s Flooring Outlets of America’s last summer has been lifted. Scott Perron, president, told FCNews the cash-and-carry buying group lifted the moratorium on Aug. 15 because “we’re starting to see some positive signs,” noting one third of the group’s members have sales exceeding last year. “There are some struggling ones, but they are generally in the areas that have been hit the hardest by the housing market. On the whole we’re doing really well.” He noted despite Big Bob’s reputation as the low-price, do-it-yourself option, the franchise is seeing more high-end customers than ever before. At the corporate store here, located in the richest county in the state, Perron said, “There are more Lexuses and BMWs in the parking lot than ever before. It’s become the fashionable thing to say you buy conservative and we’re benefiting from it.” In a recent article in the Kansas City Business Journal, Dave Elyachar, chairman and founder of Big Bob’s, said chain-wide revenue in 2008 was $65 million and he projects revenues to approach $80 million in 2009. In the next 10 years, he aims to triple in volume and storefronts. “I believe this is the single greatest opportunity to make money in the last 80 years,” Elyachar told the paper. In lifting the moratorium, Perron noted the company will maintain caution as it pursues new locations. To be considered, a person must meet the following criteria: Have access to a minimum of $250,000 in financing—“ The minimum amount we feel to effectively start up a business,” Perron explained; have a minimum of three years industry experience as either an owner or key manager, and develop the territory to at least three stores within seven years of opening the first location. “That’s when the economies of scale really become advantageous.” These are not set in stone, he pointed out, but rather guidelines for evaluating potential members. While the company will entertain offers across the U.S., Perron said his team will initially focus on the Northeast. Though Big Bob’s is in 23 states, it has “only one member in all of New York, in Niagara Falls.” At least 600 retailers in the region have been identified for contact. “Ultimately, we want to invite prospective members to Kansas City to see the operation,” he said, “because we want them to see first-hand what the franchise is all about.” For more on Big Bob’s, call 913.789.7773. |