WDFA Gets to Roots of Best Marketing Practices

With its turnkey solutions, experience supporting franchises and grassroots approach, DDIFO Sponsor WDFA Marketing (WDFA) stands apart from the competition. No matter the size of your budget, WDFA can help you make the most of every marketing dollar. The firm’s products and services are designed to meet today’s challenges for immediate sales results and efficient, low-cost production.

 WDFA prides itself on fearless innovation, ethical responsibility and exceptional service all focused on maximizing your return on investment. Each and every campaign is designed for measurable impact. WDFA’s staff works to evaluate a campaign’s effectiveness and make adjustments to increase value and success. While the company happily offers traditional marketing services like direct mail and door-hangers, it also specializes in non-traditional tactics.

 “As far as our tactics go, the possibilities are endless. We start with acquiring the best data that is available on the target customer, and then work tirelessly until we find the best way to drive them to your door,” said WDFA Marketing Executive Vice President Jason Fordley. “Whether it’s traditional print media, direct-to-door, cultural marketing or more innovative guerrilla tactics we can handle it all. We find that on the franchise level, micro-targeting within the community is a reliable way to ensure that we’re staying where your customers are, so that we don’t waste any of your budget, but we’ve also done full zip code saturations.”

 Under the umbrella of micromarketing, WDFA’s guerilla marketing campaigns often involve street teams – called brand ambassadors – who connect directly with your customers in the neighborhood or at community events. WDFA retains only the most reliable and passionate people who are able to drive more customers to your shop and boost your bottom line.

 Here are just two examples of successful WDFA strategies:

Sending brand ambassadors to a community event (e.g. movies in the park, a local outdoor concert) with “jet packs” of complimentary coffee or Coolatas: As they entice a consumer with free beverage samples, they simultaneously offer a flyer or coupon designed to bring that person into your store. Depending how close the event is to your shop, the brand ambassadors can even use sidewalk chalk to visually lead customers to your doorstep.

Orchestrating “guerilla projections” for shops that are open at night: WDFA has two different types of special projectors to “broadcast” your signal, so to speak. A large projector shines still shots or actual movies on a nearby building or wall. Using hand-held projectors, about the size of a cell phone, WDFA brand ambassadors cast images on the ground, surrounding buildings, even parked cars. Again, once they’ve drawn consumer interest, they follow up with a targeted flyer or coupon that drives customers to you.

“Our non-traditional, attention-getting methods might seem unconventional, but they help to ensure that the tactics drive sales,” said Fordley. “For example, there are so many people handing out flyers on the street that people often try to avoid them. But the right location at the right time, with a little something extra—sidewalk chalk, mini-projections, or just a really fun personality—that changes the game. People actually want that flyer; they seek it out! And that’s what it’s all about for us—finding a way to maximize the effectiveness of a tactic. If our clients don’t feel the ‘WDFA effect’ in their bottom line, then we’re out of business.”

Another key element is WDFA’s quick turn-around on orders. For example, a flyer or coupon piece can move from conversation to design to delivery within just a few days. And, because of the volume of work WDFA does with its nationwide trusted vendors and suppliers, you’ll save on production costs. What’s more, if you own multiple shops and want to launch a concurrent campaign across all of them, this usually means more savings: The more stores involved, the lower the cost.

WDFA offers countless strategies, including utilizing social media and social networking sites like Facebook and Twitter to capture new customers and keep “regulars” coming back for more. Basically, whatever you want to accomplish in terms of promotion, WDFA has a way to get you there. Whether you want to follow a traditional route or are looking for unconventional tactics, WDFA can help tailor your marketing in ways that will most effectively reach customers and drive sales.

“We look forward to working with Dunkin’ Donuts franchise owners as we feel that our arsenal of tactics and our collective drive to succeed can be a major asset,” Fordley said. “‘Partnership’ is a very important word to us, so we’ll do what it takes until our client thinks of us in terms of a strong, reliable partner that can be trusted to drive sales whenever it’s needed”.

For more information or to launch a campaign, contact Jason Fordley at 646-240-4880 or jasonf@wdfamarketing.com.

Learn more at: WDFA Marketing

Access to Money, Inc. Reports First Quarter 2010 Financial Results

DDIFO Sponsor Access to Money, Inc. (OTC Bulletin Board: AEMI), one of the largest providers and non-bank operators of ATMs in the United States, reports its financial results for the first quarter ended March 31, 2010.

Highlights for the First Quarter 2010:

• Net sales for first quarter 2010 were $7.6 million compared to $7.3 million in the first quarter of 2009
• Operating income for first quarter 2010 was $728,000 compared to $847,000 in the first quarter of 2009
• Net loss for first quarter 2010 was $716,000, or $0.03 per share, compared with a net loss of $597,000 or $0.03 per diluted share in the first quarter of 2009
• Adjusted EBITDA was $1.3 million compared with $1.3 million in the first quarter 2009
• Transaction-based sales were $20.2 million for the quarter compared with $20.8 million for last year’s first quarter
• Average gross sale per withdrawal transaction was $2.46 for the quarter compared with $2.39 a year ago
• Average commission per withdrawal transaction for the first quarter was $1.78 compared with $1.72
• Average net sale per withdrawal was $0.68 compared to $0.67 a year ago
• Average number of transacting machines was 10,983 compared with 11,425 in the year-ago quarter
• Final payment of note payable to Notemachine was made on March 1, 2010, providing approximately $120,000 per month of free cash flow going forward

 

Richard Stern, President and CEO of Access to Money said, “We continued to display strong results, posting another solid quarter of positive Adjusted EBITDA and operating profits.  This was especially encouraging given the adverse winter weather conditions that affected much of the Eastern portion of the country, and the negative impact caused by one of our armored car providers which was forced out of business due to alleged illegal activities.  The effect of this caused approximately 365 ATMs to be out of service for several weeks during the quarter.  The reduction in transacting ATM numbers was the result of our selective removal of lower performing, unprofitable ATMs and normal attrition.”

“We continued to deploy ATMs equipped with the Select-A-Branch technology pursuant to our exclusive distribution agreement.  The machines continue to generate significant increases in transactions.  Based upon the demonstrable success of this surcharge-free program, we are rolling out an additional test market of 60 machines during the second quarter.  We believe the positive results we have achieved thus far with Select-a-Branch can be replicated, and we look forward to capitalizing on the expansion of this program,” he continued.  ”Our agreement with Dunkin’ Donuts is also proceeding well and according to plan, having placed approximately 90 new ATMs with franchisees.  Including the Dunkin’ Donuts program, the total amount of ATM equipment sales this quarter increased to $1.3 million from $363,000 in the first quarter of 2009.”  

Mr. Stern added, “Although we are pleased with the progress we are making with our national sales efforts, our master agreement with Cumberland Farms to supply ATMs to all of its stores recently expired.  While we have been in discussions regarding renewal, it is now apparent that the agreement will not be renewed.  Therefore, we expect a reduction in the number of ATMs currently operating in Cumberland Farms stores over the next six to twelve months.  If we are unable to replace these expiring transacting units with new business, our financial results for future periods would be adversely affected.”

“The student loan business, which we entered in late 2009, was strengthened by our recent agreement with People Capital.  I am pleased to report that system integration is expected to be completed within the next few weeks, which will allow us to be fully operational in time for the peak student lending season.  With People Capital as our strategic partner, we will be able to offer a more robust student loan solution to our customers,” he added.

Mr. Stern concluded, “Our focus will continue to be on strengthening the company and identifying complementary business lines and partners in order to position the company for growth, profitability and Adjusted EBITDA improvements.”

Save BIG and Boost Cash Flow with Cost Segregation

With tax season upon us, Dunkin’ Donuts franchise owners might be interested to know about noteworthy tax-saving strategies. Enter: cost segregation which, depending largely on the scope of a franchisee’s holdings and investments, can yield upwards of $1 million in additional tax deductions.

“Cost segregation studies can benefit franchisees in many ways,” according to CPA Jim Ventriglia. “By accelerating depreciation, it has the effect of lowering the taxable income of property owners, and lower tax liabilities can provide additional cash flow. Cost segregation can work even if you’re a tenant. I encourage clients to explore the benefits. In every instance we have done so, the benefits far outweighed the expense involved.”

J&M Batista Limited Family Partnership, a real estate company involved in developing multiple Dunkin’ Donuts locations, became aware of the remarkable potential benefits and enlisted the services of Bedford Cost Segregation (Bedford), a DDIFO Sponsor. The principals of J&M Batista, along with their affiliates, have developed more than 50 Dunkin’ Donuts locations in Massachusetts, Ohio, New York and Florida. John Batista, founder of J&M Batista, took over the very first franchised Dunkin’ Donuts shop more than 30 years ago and continues to operate that location, which recently underwent a major remodel.

The leadership at J&M Batista engaged Bedford to perform cost segregation studies on six of its Worcester area buildings. While the properties were built between 2002 and 2008, IRS guidelines and tax law allow for retroactive studies that will yield tax benefits in the current year. With the help of J&M Batista’s Director of Construction and Dunkin’ Donuts Franchisee Matt Doyle, Bedford engineers went to work to document the value of specialty components—including select electrical, plumbing, HVAC, millwork, finishes and many outdoor components—eligible for accelerated depreciation (5-year or 15-year rather than 39-year). This resulted in much higher depreciation deductions as well as critical information for the write-down of certain assets when these properties are remodeled in the future. Bedford worked closely with Doyle and with J&M Batista’s CPA to ensure that every tax benefit was realized.

“We feel that 39 years is too long to wait to recoup our investments, and cost segregation is proving to be a great tool to expedite that recovery,” said J&M Batista President and Dunkin’ Donuts Franchisee Rob Branca. “Plus the additional cash flow derived from Bedford’s studies will serve to fuel our growth and remodels without having to go to the bank to borrow.”

The studies generated an increased depreciation deduction of more than $1 million in tax year 2009. In addition to this tremendous year-one benefit, J&M Batista will realize another $400,000 in depreciation over the next four years. Bedford has worked with several other Dunkin’ Donuts-related organizations and has experienced similar success. J&M Batista was so pleased with the return on the initial six studies that the organization has further engaged Bedford to perform studies on several other properties.

“We’re proud to have been selected by J&M Batista to provide this service and are thrilled that it’s worked out so well for them,” said Bedford Director of Business Development Bill Cusato. “We are also excited about our track record with the Dunkin’ Donuts community and encourage franchise owners and operators to contact us to evaluate how we can help them as well.”

Bedford has emerged among the nation’s leading and most experienced providers of engineering-based cost segregation services, having completed more than 5,000 studies throughout the country. The company’s team includes engineers, architects and construction professionals along with tax experts and business development consultants. Bedford’s property reports are second to none, employing a detailed engineering approach and conforming to the highest standards established by the IRS.

There are many times during the life of a property when cost segregation can add value. Basically, if you have bought, built or made significant capital improvements to a building within the last six to eight years, chances are you could benefit from a study.

“Since 9/11, the government has enacted a number of incentive programs to encourage business owners to invest in their operations by helping them to write-off those costs more quickly,” said Cusato. “Cost segregation is a tool that often helps to unlock much of that value by triggering those incentives and, consequently, is a tremendous way for franchisees to sustain and grow their businesses.”

For more information on how cost segregation can help you achieve considerable tax savings and increase your cash flow, contact Bill Cusato at bcusato@bedfordcostseg.com or 978-263-5055. You can also learn more at www.bedfordcostseg.com.

Carmen Caruso Re-Locates to The Chambers in Chicago

Carmen D. Caruso, a nationally known franchisee trial lawyer and a DDIFO Sponsor, re-locates his practice in “The Chambers” — a dynamic suite of trial lawyers in downtown Chicago who operate on a “lean and mean” platform backed up with the best litigation technology and who prepare their cases for trial in a state-of-the-art mock trial courtroom.

For his franchisee/dealer clients, Carmen believes that The Chambers will serve to “level the playing field” against America’s largest law firms who usually represent the franchisor.   In every case, Carmen will be able to assemble the perfect team, such that franchisees and dealers will never again have to fear being out-matched by the franchisor’s resources.

A litigator with over 25 years of experience defending franchises, Carmen is recognized as one of America’s most dedicated advocates for franchisees, dealers and their associations nationwide and has represented clients in more than 100 systems –including Dunkin’ Brands. He has successfully defended Dunkin’ Brand franchisees in federal court cases involving fraud, terminations and post-termination disputes – and has had significant experience in “system-wide” franchising disputes on behalf of franchisee associations and independent groups of owners. 

Among Carmen’s honors and achievements, he is:

• Named to the Illinois Attorney General’s Franchise Advisory Board, where he advocates the franchisee/dealer perspective.

• Named an Illinois Leading Lawyer and a member of the Advisory Board of the Leading Lawyers Network, 2006 – 2010.

• Named an Illinois Super Lawyer by Illinois Super Lawyers magazine and Law & Politics, 2005- 2010.

• Consistently named a “Legal Eagle” by Franchise Times, a Crain’s publication focused on the franchise industry beginning in 2001 and 2005-2010.

• Frequently invited to write and speak on franchise law topics, from the franchisee perspective, by the American Bar Association (Forum on Franchising), the American Association of Franchisees & Dealers, the Asian American Hotel Owners Association, and the Dairy Queen Operators Association.

• Carmen was also named to the Bar Register or Preeminent Lawyers in 2002, and is AV® Peer Review Rated by Martindale-Hubbell; and he has been named to the “Who’s Who Legal Illinois” list by the International Bar Association.

Carmen D. Caruso
Trial & Appellate Lawyer / Business Litigation
Franchise, Dealership & Distribution Law
 
77 West Wacker Drive, Suite 4800
Chicago, Illinois  60601
Phone:  312-606-8640
Fax:      312-276-8646
www.cdcaruso.com