The FLAME is a quarterly publication for the National Franchisee Association whose membership consists of Burger King franchisees. Please view all 64 pages of this magazine.

1. 2 0 0 8 I s s u e 3
The
Celebration
Continues…

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3. 2 0 0 8 I s s u e 3
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Celebration
Continues…
The National Franchisee Association, Inc., comprising regional BURGER KING®
franchisee associations, publishes The FLAME. Any reproduction, in whole or
in part, of the contents of this publication is prohibited without prior written
consent of the National Franchisee Association, Inc. All Rights Reserved.
Copyright ©2008 • Printed in the U.S.A.
headquarters
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Phone:(678)797-5160• Fax:(678)797-5170• www.nfabk.org
CONTENTS
columns
Our Role to Strengthen Communities
and Create Jobs
By Ben Jarratt NFA Secretary and
Government Relations Chairman
What the NFA Will Forever Do For You
By Joseph Anghelone NFA Chairman
No One is Bigger Than You United
By Frank J. Capaldo NFA Executive Director & CEO
news&perspectives
Brand
News
regionalassociationnews
Regional Association Meeting Recaps
and Calendar of Events
NFA Member News and
Franchisee-to-Franchisee Forum
governmentrelations
Credit Card Interchange Fees:
Hidden Costs for a Public Problem
By Misty Chally NFA Director of Government Relations/
Washington Counsel
One Voice Launches Opportunity for Change
By James Menees NFA Manager of Government Relations
Releasing Small-Business Owners
from FACTA Stronghold
By Rep. Michele Bachmann
directories
Editorial Calendar
Advertisers Guide
Franchisee-to-Franchisee Forum Question
02
04
06
08
14
16
22
26
27
60
10
on
the
cover
NFAEditorial Board
Ben Jarratt
Executive Editor
bknvg@aol.com
(703) 847-2667
Fax: (703) 847-2668
VM #6071
Frank J. Capaldo
Executive Director
frankc@namgllc.com
Erin J. Murrin
Editor-in-chief
erinm@namgllc.com
Meghan Morris
Associate Editor
meghanm@namgllc.com
Advertising Sales
Jeff Reynolds
Director of Sales
jeffr@namgllc.com
NFAOfficers
Joseph Anghelone
Chairman
Tony Versaci
Vice Chairman
Ben Jarratt
Secretary
Bill Patterson
Treasurer
Dan Fitzpatrick
Chairman Emeritus
Frank J. Capaldo
NFA Executive
Director/CEO
NFABoard of
Directors
FLORIDA/CARIBBEAN
Glenn Levins
GREAT LAKES
Jerry Fitzpatrick
GREAT WESTERN
Len Rohde
GREAT WESTERN
Dave Cutter
METRO NEW YORK
Dominick Vespoli
MID AMERICA
Greg Dolphin
MID ATLANTIC
Bill Harloe
MID-SOUTH GULF
Stafford Rastall
MIDWEST
Chuck Sedlak
MOUNTAIN
Gary Robison
NEW ENGLAND
Jim Froio
NEW SOUTH COALITION
Brian Vaughn
NEW SOUTH COALITION
Ray Meeks
PITTSBURGH/NY
Keith Egyed
SOUTH CENTRAL
Bill Montero
SOUTHERN CALIFORNIA
Herman Li
SOUTHWEST
Bruce Pavlikowski
TRI STATES
Jim Harrison
Canadian
Franchisee Association
Mike LaCombe
International Hispanic
Franchisee Association
Alex Salgueiro
Minority Franchisee
Association
Vernon Duckrey
• 2 0 0 8 I s s u e 3 •
Understanding the Future
By Erin J. Murrin NFA Manager of Communications and PR
The Celebration Continues…
By Erin J. Murrin NFA Manager of Communications and PR
features
The Case of the Stolen Liquid Gold
By Meghan Morris NFA Communications Coordinator
Living the Dream – NFA’s Series
Celebrating Women Franchisees: Part III
By Erin J. Murrin NFA Manager of Communications and PR
NFA Humanitarian Recognized at Fenway Park
by Boston Red Sox
Amended Franchise Rule: Franchisors
Required to Recognize Franchisee Associations
Best Practices Case Studies:
Program Winner Carrols Restaurant Group
VendorSpotlight:
Otis Spunkmeyer
BKC Corner: BURGER KING Appreciative for
Franchisee Support
Contributed by Burger King Corporation
Managing Food Costs
By George Hoffman President and CEO, Restaurant Services Inc.
Speaking Up: The Secret to
Developing Your Employee Language Skills
By John Wessel BURGER KING Franchisee and Business Writer
Protecting Your Business Legacy:
Benefits of Buy-Sell Agreements
By Jennifer DeRosa Barth Berus and Calderon LLP
Business Protection Fund:
There for You in Times of Need
The Protection You Deserve:
EPLI Program Has You Covered
28
34
18
42
44
44
46
47
48
50
52
54
56
58
Legislation
News 12 Trend
Watch
Design by Brian Cohen of BRCAssociates, Inc. (770) 421-9003
Cover Photo: ©iStockphoto.com/Borisyankov

4. 1988-2008
2
2008Issue3
www.nfabk.org
FLAME
columns
O
n Sept. 10 and 11, franchisees, cor-
porate staff and system vendors
represented our BURGER KING®
brand at the NFA-BKC Government
Relations Summit (GRS) in Washington,
D.C.
Obviously, in today’s political and economic
environment, it’s vitally important that fran-
chisees continue to “petition” our elected
officials on business
issues that strengthen
our country’s financial
future. It is your consti-
tutional right! If you
don’t exercise your
rights, I guarantee you
those with anti-busi-
ness agendas will be
exercising their
rights—at our expense!
If you have not visited your members of
Congress on Capitol Hill before, you
should strongly consider attending a
Summit. Each GRS provides tremendous
opportunities to directly participate in our
representative democracy. This year,
depreciation was an issue we discussed
with our key legislators.
This spring, Sens. Bill Nelson (D-Fla.) and
Kay Bailey Hutchinson (R-Texas) pro-
posed a bi-partisan amendment on depreci-
ation that, unfortunately, did not pass into
final law. The proposal would have allowed
either a 15- or 20-year tax depreciation
schedule for new restaurant construction,
instead of the current 39-and-a-half year
schedule.
I found the talking points produced by the
Senate offices and the National Restaurant
Association (NRA) during this debate fasci-
nating. In my view, the following facts are
equally important for your personal use any
time you contact your federal, state or local
officials on other issues, too.
Restaurants strengthen communities.
Restaurateurs are job creators.
Restaurants are gathering places for fami-
lies, friends and neighbors.
Restaurateurs are active members of our
communities. Nine of 10 restaurateurs give
money, food or other resources back to our
communities.
In 2008, restaurant industry sales are pro-
jected to reach $558 billion, with a total
economic impact of more than $1.3 trillion.
Every dollar spent dining out generates
$2.34 in business for other industries.
The restaurant industry employs 13.1 mil-
lion people (or 9 percent of the work force)
making us the nation’s largest employer
outside the government.
The industry is projected to add 2 million
new jobs over the next decade.
Nine out of 10 salaried employees at table
service restaurants—including owners,
operators and managers—started as hourly
employees.
In 2008, the restaurant industry is expected
to spend in excess of $5.5 billion on capital
expenditures for building construction and
renovations.
The industry is projected to spend over
$70 billion over the next 10 years for build-
ing construction and renovations.
According to the Bureau of Economic
Analysis, every dollar spent in the construc-
tion industry generates an additional $2.39
in spending in the rest of the economy,
while every $1 million spent in the con-
struction industry creates more than 28 jobs
* 2 0 Y e a r s S t r o n g *
in the overall economy.
More than half of all adult Americans eat
out once a day.
Restaurants get more customer traffic and
maintain longer hours than the average
commercial business. Many restaurants are
open seven days a week, roughly 18 hours
a day.
NRA research shows that most restaurants
remodel and update their buildings every
six to eight years—far more often than the
current 39-and-a-half year depreciation
schedule allows—at an average cost of
$250,000 to $400,000.
Clearly, restaurateurs provide invaluable
contributions to our American free enter-
prise economic system. Yet, we rarely get
credit and often get overlooked in the
process. This is all the more reason why
you need to get—and stay—involved in
politics.
I found the saddest part of these stats is
that restaurants are the second largest
employer in our country behind govern-
ment. So the next time someone approach-
es you saying, “We’re from the govern-
ment, and we are here to help,” immedi-
ately offer to take that person out to lunch
to your favorite restaurant. Maybe they will
gain a better understanding about the ben-
efits that the restaurant industry provides…
…to all Americans
…nation-wide
…all of the time.
Ben Jarratt is the NFA Secretary and
Chairman of the Government Relations
Committee.
b y b e n
jarratt
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StrengthenCommunitiesand
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6. 4
2008Issue3
www.nfabk.org
FLAME
columns 1988-2008
* 2 0 Y e a r s S t r o n g *
I
welcome you all here. Thank you for
coming. It’s all about partnership. It
really is. It was easy to partner with RSI.
It’s one of the best things to have ever hap-
pened to our system. We’ve partnered with
them now in the annual meeting. And we
also, as you know, part-
ner with them in the
P&L benchmarking
project.
Over a year ago, as you
know, we instituted this
P&L benchmarking,
and it’s been a huge
success. Well, we have
another partner that has
evolved with the P&L benchmarking, and
that’s Burger King Corporation. Burger
King Corporation has now joined us in the
P&L benchmarking in establishing an
important link to that Web site.
Now, as you enter the Web site, you still
will go through the RSI portal, but you will
have a choice now to further look diagnosti-
cally at your restaurants from a profitability
standpoint. And Burger King Corporation
will have that link set up shortly. And we’re
excited about that because not only can
you use that P&L benchmarking for diag-
nostic, but you can also customize data col-
lection. So today I’m encouraging you, as
we have encouraged our partnership with
both RSI and BKC, when that site comes
up, please utilize it. I think it’s just another
step in the evolution of the partnership that
we all have not only with RSI but with
Burger King Corporation.
Chairman’s goals—this year there were
four: One, to improve the economic value
of your business; Two, to improve and
increase the viability of the PAC with NFA
members and on Capitol Hill; Three, to
implement an existing plan for an NFA
credit union in partnership with RSI and;
Four, to renew project strengthening.
Last year, when the NFA leadership met
with Burger King Corporation, there were
five topics that we discussed, and I present-
ed them to you: Succession planning, exit
strategies, brand evolution, voting proce-
dures and BURGER KING attendance at
our region association meetings.
But the two most important goals that we
discussed—your NFA leadership in con-
junction with meeting with BURGER
KING executives at Burger King
Corporation—are the relationship that the
NFA has with our franchisor, Burger King
Corporation, and profitability.
I just can’t imagine what’s more important
to you right now than profitability. In terms
of the BURGER KING relationship, I can
tell you it’s cordial, it’s respectful—but I’ll
add another word this year—it’s responsive.
All of the executives do respond to us, and
I think that is important for you to know.
In terms of profitability, there are two differ-
ent businesses here and make no mistake
about it. Burger King Corporation is in the
franchise revenue business. That is clear.
That’s why they are there. That’s what
their shareholders expect. That’s what their
board expects. We, on the other hand, as
franchisees, are clearly in a different busi-
ness. We are in the cash flow business. Two
businesses, two separate entities working
together. Make no mistake about it.
Now, what are the concerns that fran-
chisees tell me, tell the officers, tell your
board, your region presidents every day
when we’re out in the field? Well, the first
one is competitive hours. Next, (the) value
menu. Credit and gift card fees. Shrinking
margins. And maximum pricing. So let’s
look at each one of them.
With respect to competitive hours, we sent
Burger King Corporation a position paper
back in March of 2007. In that position
paper, there were two specific issues that
we hot-buttoned for them. The first issue
was for the need for financial exemption.
And the second was security issues.
Well, clearly our needs, as I’ve stated to
you, are for cash flow. So I will reiterate to
you, once again, the NFA board having met
today reiterates to Burger King Corporation
the need for a financial exemption in the
event that you’re open to late hours, and
you are not doing the numbers. We have
asked BURGER KING to reconsider that,
and we’ll continue to advocate that position.
Now, BURGER KING is not wrong in
recognizing that there are some obvious,
important profitability issues that you can
take advantage of. We understand that.
And many of you have stayed open later.
Some 24 hours. That’s a good thing, we
should be doing that. But in some cases,
we submit to you a financial and security
exemption is warranted. And we will con-
tinue to advocate for these exemptions.
Value menu. Of concern to you, we under-
stand clearly, is the gross profit margin for
the value menu and the impact the value
menu has on the remaining menu. Credit
and gift card fees are also an important area
of concern to you.
b y j os e p h
anghelone
WhattheNFAWillForeverDoFor
YOUExcerpts from Joseph Anghelone’s Chairman’s Address at the NFA-RSI Member Meeting on May 5, 2008.

7. 5
2008Issue3
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FLAME
1988-2008
* 2 0 Y e a r s S t r o n g *
Certainly, the rising commodity costs, the
escalating utility costs and wage increases
that we all experience in the restaurant are
of major concern to you as franchisees.
Maximum pricing. Let us talk about the
accord that has now been entered into
between Burger King Corporation and the
NFA. It’s important for you to understand
that an accord is merely an understanding
of both parties. And that’s what we have.
We have an understanding of both parties
for value-menu guidelines that to date have
never been put in writing other than a let-
ter that I know Russ (Klein) sent out to all
of us in late January. But the attempt here
was to sit down with Burger King
Corporation over the last three-and-a-half
months and negotiate satisfactory value-
menu guidelines.
Now, I have to say that I give tremendous
thanks to Chuck Fallon—who acted as the
liaison with most of the relevant parties at
Burger King Corporation to cut through the
administrative quagmire that I can assure
you exists—and Russ Klein. Russ, through-
out this entire negotiation, has been
extremely helpful in trying to find solutions
so that we can all agree to work together,
not apart, on these value-menu guidelines.
So my hat is off to the perseverance that
both Chuck and Russ gave us in an
attempt to develop these guidelines.
First, we’ve limited the maximum pricing
to strictly the value menu. But we’re already
there. We are there already. We voted years
ago to allow maximum pricing on the value
menu and, specifically, with the WHOP-
PER JR.®
But BURGER KING has indi-
cated that they have no intentions or plans
to go beyond our current menu in maxi-
mum price. We take them for their word.
This agreement also validates shows of sup-
port. By the way people, check your fran-
chise agreement. There is no—zero—refer-
ence to shows of support, yet BURGER
KING is acknowledging, in writing, your
ability now to vote on specific issues.
Third, we now have profitability bench-
marks. We have also defined national per-
formance criteria—so important because
we always look for metrics to evaluate not
only the value menu but our business. We
have mandated periodic performance
reviews, which safeguards against rising
commodity costs.
So those are the highlights.
Now, let’s talk about the specifics. Well,
BURGER KING has exhibited positive
intent to continue to bring profitable value
menu strategy and improve blended mar-
gins with high value ratings. What this
means now is that all new items will have a
mandated either 90- to 180-day LTO peri-
od. The shows of support are now validated
and are on a majority-binding basis for
incremental investment spending, adver-
tised food discounts, any national coupon-
ing initiatives, and a material increase in any
promotional food packaging or premium
gaming events. These are the areas where
you will receive and be able to determine
through a majority binding show of support.
Now, what we’ve introduced is what I call
70 percent gross-profit margin rule. And it
relates to all new items that they’re propos-
ing for us. If the gross profit margin is high-
er than 70 percent, and I think that’s a
threshold where we all live and die by, then
a non-binding show of support will go out
after a 90-day LTO period. But if the gross-
profit margin for a proposed item is below
70 percent, then, after up to 180 days, a
majority binding support will go out to the
system. You will make the decision
whether that new proposed item, in fact,
will be on the value menu.
So what are the profitability benchmarks
that I talked about? Well, the first set of
benchmarks has to do with measuring our
performance against our two key competi-
tors: McDonald’s and Wendy’s.
Utilizing Crest Data as one of the few
opportunities available to us to get this key
information, the BURGER KING Value
Menu sales would have to increase or the
BURGER KING Value Menu gross-profit
margin percentage would have to decrease
against those two key competitors. If that
event occurs for more than 90 days, then, a
mandatory business review would be trig-
gered. And if Burger King Corporation
decides to make any modifications to either
the entire value menu or any particular
item, a non-binding show of support would
go out to all of you.
The other two benchmarks are relatively
simple. The first one has to do with our
blended BURGER KING Value Menu
gross-profit margin percentage. If it falls
below 65 percent—and right now it is
about 70.8—but if that free-fall occurs on
our entire value menu, or if an individual
item on the BURGER KING Value Menu
gross-profit margin percent drops below 55
percent—so if those two events occur—
then, once again, it will trigger a mandatory
business review by Burger King
Corporation with, again, a non-binding
show of support going out to the system.
Now, what are the metrics that have been
agreed upon that you will see in numerous
meetings moving forward to evaluate the
BURGER KING Value Menu? Well, they
need to make a business case, that’s clear to
us. There needs to be traffic growth, aver-
age check, gross-profit margin dollars and
percentage, and restaurant-operated profit
numbers submitted to us periodically.
They’ve committed to do that. And when
will they do it? Well, they will do it at the
Burger King Corporation Global
Convention—hopefully, we’ll see that
tomorrow—quarterly system Web casts,
quarterly DMA meetings, advisory group
meetings, and anytime the BURGER
KING executive team and the NFA lead-
ership meets together. BKC will share
those national performance criteria, those
metrics with us and you at those times.
What does the NFA do for you? Well, we
really do two things: we advocate for you,
and we provide services. But if you ask me
what is the most important thing that we do
for you is we advocate. We advocate on your
behalf. And why do we do that? Because of
the first chairman’s goal: to improve the eco-
nomic value of your business.
As a matter of fact, that goal is embedded
in our mission statement. Think about it.
Our mission statement indicates that we
are to improve, try to preserve, and try to
ensure your economic well being. That’s
what the NFA is, that’s who we are, that’s
who we will always be.
So on behalf of the board of directors and
your officers, we want to thank you for all
your support throughout the year. And I
want to encourage you to have a great con-
vention. Thank you so much.
Joseph Anghelone is Chairman of the NFA.

8. United
‘‘
6
2008Issue3
www.nfabk.org
FLAME
T
hank you all for coming and good
afternoon. When I started to think
about this meeting a while ago I
usually do the traditional things: I sit down,
I think about the year, I write down what I
want to talk to you about…and then I real-
ized that was kind of old hat. And, in fact,
when I would go to read it at night before I
went to bed, it put me to sleep. So I can’t
imagine that it wouldn’t do the same for
you. And there’ll be others who talk to you
about what we have accomplished.
But I realize I don’t need to tell you about
what we’re doing every day, what we’re
offering in new services, or what we will do
in the future. Joe and Bill and Tony and
those folks will tell you about that. But
rather, I needed to talk to you about
encouragement and congratulate you.
Why are we here? What are we celebrating?
Part of this meeting is to celebrate your his-
tory of 20 years and what you’ve accom-
plished under the chairmen of this organiza-
tion, this NFA, over the last 20 years. I also
decided that we usually have a ton of slides,
and I thought, “You know what? Throw out
the slides. Let’s just have one slide.”
Because I think this is really what you are
all about here. Why you became franchisees
and small businessmen and women.
So we’re here to celebrate your accomplish-
ments and your courage through the adver-
sity that you have been through. The good
times, the bad times. You—just like that
saying in that movie goes about “We are
Marshall”—you are BURGER KING. You
are the NFA; the National Franchisee
Association.
And, yes, the NFA is your advocate and its
there to protect your interests. And, yes, it’s
important to have great member services
that improve your bottom line. But again,
others will talk to that.
But you are, again, BURGER KING. You,
the members, are the NFA. Without a
doubt, you are the most important ingredi-
ent of this association. Without you, there is
no advocacy, there are no services, there is
no system. And I ask you to please keep
that in mind as I take you down memory
lane for a little bit.
Back in 1988, under the chairmanship of
Don White, you had the foresight to join
together. You knew, and Don knew, that
you needed a unified system to protect and
preserve and ensure your economic well
being. And maybe you wouldn’t need that
security, that unity at that time. You would-
n’t need it that day or maybe even the next
day. But someday, and at different times
over the next 20 years, you would need
that unity.
When Dick Fors came along as chairman,
his goal was to unify all of you. And during
the term, the roots of the MAC (the
Marketing Advisory Committee), the
Franchise Relations Committee and the
Ops Tech were formed—the roots of them.
And there were more strides toward unifi-
cation and what collectively you could
accomplish. And that took place under
Jerry Ruenheck and Jack Eberly when in
1993 the NFA held their first convention in
Frank J. Capaldo is
the Executive
Director and CEO of
the NFA.
columns 1988-2008
* 2 0 Y e a r s S t r o n g *
“It’s
amazing;
It’s
amazing
what
power
you have
when
you are
united.”
Fra n k
Ca pa l d o
Transcript from Frank Capaldo’s Executive Director’s Address at the NFA/RSI Member Meeting on May 5, 2008
NoOneis
Bigger
Than
YOU
b y f r a n k j .
capaldo

9. 7
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1988-2008
* 2 0 Y e a r s S t r o n g *
San Francisco. Over 900 hundred of you
attended.
In 1994 and ’95, you accomplished proba-
bly another great accomplishment, the
Jennifer Agreement. This, without a doubt,
folks—and I’ve read most of the franchise
agreements out there—is still the finest,
finest franchise agreement that there is out
there, bar none. It is excellent. This agree-
ment also clearly recognized you, your
NFA, as the sole representative of the
BURGER KING franchisee system. Also
during that time, you formed the Image
task force, which goes on today.
It’s amazing; it’s amazing what power you
have when you are united. And as
with Project Jennifer, you saw that
power develop even more under chair-
man Mike DeRosa. Under Mike’s
leadership, the Political Action
Committee was formed, so that you
could assert your rights in front of
Congress in Washington.
But these were minor challenges com-
pared to what was to come. Your per-
sonal courage would be stretched to
the breaking point; but not yet.
You continued under great leadership.
And, at that time, you plunged into the first
non-food service out of your NFA—the
property and casualty insurance. It goes on
today and continues to grow. It has
changed, but it is a great service.
Then came Steve Lewis in 1999. Steve
wanted more than your dues; Steve want-
ed your hearts and your minds. He wanted
you to ban together to find new owners.
And you did. In less than two weeks, you
contributed over $2 million dollars to get
Project Champion done. To hire experts, to
do interviews—you did that.
But while this was going on—the magnifi-
cence of Project Champion, and you all
united—there was something sinister hap-
pening. Think of the years: ‘99, 2000, 2001.
AUV was at a-million-one and beginning to
drop—it was dropping.
Customer counts, margins and profits were
deteriorating. Although the NFA began to
add new non-food services to help you run
your restaurants, management at BKC was
changing like most people change their
underwear.
By the end of Julian Josephson’s term in
2004, Project Champion was completed.
You had new owners and you were on your
way; we were on our way. The National
Franchisee Association had introduced
health insurance, payroll processing and
retirement services—among a few. And we
had returned over $3 million dollars in
patronage dividends to you.
Why? Because you said—not any of us—
you said you wanted these services. You
wanted Project Champion, you wanted
Project Jennifer. You wanted it—for you.
And we must be doing something right
with those services because over 65 percent
of you use at least one of those services.
But by that time, folks, the system was in
distress. And we would look to the left and
we would look to the right and we would
wonder, “Will Joe or Jane still be there in
six months; 12 months?”
We had lost family, friends and 1,600
restaurants one way or the other to distress.
Yet, all of you persisted and you perse-
vered. You had courage. You stayed the
course. And you had the courage—you and
your chairman Dan Fitzpatrick—fought to
restore system profitability in a stable, con-
sistent management. Dan’s persistence was
gallant in this effort, absolutely.
That stable, consistent, steady hand at the
rudder of BKC began with John Chidsey
and Russ Klein. But transition isn’t always
easy, it’s difficult. And the NFA needed to
bridge to a mutually beneficial relationship.
Joe Anghelone’s chairmanship has shep-
herded us all through the rebirth of the sys-
tem and your relationship with BURGER
KING. He has been an artist; a surgeon on
your behalf. He has introduced the FRC
process, which is marvelous. But more
importantly, ladies and gentlemen, he has
introduced back into the system respect
between franchisor and franchisee.
There isn’t anything—you know it with
your children, with your family, with your
friends—if there isn’t mutual respect, you
have nothing. “You don’t have to like me,
but you will respect me.” And many of you
began to recover. Things started changing.
Over the past two years you have seen the
fruits of that perseverance; the “reach-
down-in-your-gut-and-keep-going”
courage; the improvement of your
bottom line. But your greatest and
most difficult challenge was your
courage to fight your way back to
success—to profitability.
That courage and the success of your
business is forever intertwined with
your unified membership in this,
your National Franchisee
Association. That unity was shown
again just recently in your show of
support vote. You have stayed faithful
to your family, your employees, your
customers, to BURGER KING, to the
NFA. But most importantly, to yourself.
So as I began this little talk, you know as I
do that together we can accomplish any-
thing and everything. Folks, this is always,
this—NFA—is always about you. Not any
one person or individual. No one’s bigger
than you united. I want you to remember
as you leave here and go home and think
about this meeting that whether you have
one store or 320 stores, you are 90 percent
of this system. Over 90 percent of the fran-
chisees belong to this association; to your
association; to the NFA.
That’s incredible, incredible power.
Collectively, you can accomplish anything.
Not even the largest, single franchisee in
this system can accomplish what you can
accomplish together.
I thank you ladies and gentlemen for allow-
ing me to serve you—a courageous bunch
of people.
Thank you, and God bless.

10. 8
2008Issue3
www.nfabk.org
FLAME
BrandNews
news&perspectives
BURGER KING Offers Kids
Healthy Meal Choices
B
urger King Corporation (BKC)
announced in June its restaurants
will begin to offer nutritionally bal-
anced meals for children as part of the
BURGER KING Positive Steps nutrition
program, which was developed to support
BKC’s ongoing efforts to promote balanced
diets and healthy, active lifestyles.
The new healthy BURGER KING Kids
Meal that aims to satisfy a child’s appetite
for fun, great-tasting food, as well as pro-
vide parents with convenience, features
apples in the shape of fries with low-fat
caramel dipping sauce, Kraft®
Macaroni &
Cheese, and Hershey’s Low-Fat White
Milk.
Along with having a healthy calorie
count—a total of 350 calories with less than
25 percent of calories from fat and 9 per-
cent from saturated fat—the nutritionally
balanced Kids Meal also provides con-
sumers with servings of three food groups
in the USDA’s MyPyramid. This includes
servings of milk, grains and fruit.
Health-conscious parents can also rest easy
knowing the new menu items for BURG-
ER KING restaurants align with the strict
nutritional guidelines that BKC developed
in conjunction with its Positive Steps nutri-
tion program.
BKC’s healthy Kids Meal is actually
just one part of
ment to promote balanced diets and overall
healthy lifestyles. BKC has also partnered
with the USDA to help promote messages
of MyPyramid to children and parents via
educational materials and nutrition market-
ing. Consumers can also find a Global
Health Statement developed by BKC on
www.bk.com outlining its current nutrition
priorities and actions for childhood
nutrition.
Another aspect of its Positive Steps initia-
tive is BKC’s pledge to restrict 100 percent
of its advertising aimed towards kids under
the age of 12 to its meals that meet its new
nutrition criteria by the end of 2008. And
BKC started to implement this advertising
strategy by promoting its nutritionally bal-
anced Kids Meal around the country this
summer.
The first of the television spots features the
Little King character, the famous BKC
brand icon’s young son. BKC uses an ani-
mation of an apple exploding into BURG-
ER KING Fresh Apple Fries and an ani-
mation of how the Kraft Macaroni &
Cheese is made by a macaroni noodle col-
liding with a block of cheese for the second
advertising spot.
“By complying with the pledge a full six
months before its implementation date,
Burger King Corp. is truly demonstrating
their commitment to taking positive,
proactive action,” said Elaine Kolish,
director, CBBB Children’s Food and
Beverage Advertising Initiative. “I
applaud their efforts.”
BKC noted it has plans to move for-
ward by continuing its aggressive time-
line dedicated to
product
innovation
and devel-
opment to
increase
healthy
options for its
consumers.
the equation
to its com-
mit-

11. BrandNews
9
2008Issue3
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FLAME
BURGER KING Development Update
A
ccording to Burger King Corp.
(BKC), 35 new BURGER KING
restaurants opened in June, bringing
the fiscal year 2008 total to 134 openings
posting net restaurant growth for the first
time in six years in North America.
Franchisees opened the majority of restau-
rants with 111 new stores, the highest
number since 2002. BKC opened 23 com-
pany stores, including three in Canada,
which is the highest number since 2001.
Fourteen BURGER KING restaurants
opened on June 30 alone, marking the
highest number of openings in a single day
since 1999. The goal for fiscal year 2009 is
to open 165 new restaurants in North
America in order to achieve net restaurant
growth two years in a row.
B
urger King Corporation recently
announced item additions to both
the breakfast and lunch/dinner Value
Menus. The Cheesy Bacon BK Wrapper, a
soft flour tortilla filled with eggs, bacon,
hash browns, American cheese and a
Smokey cheese sauce, is being added as a
permanent value breakfast item, while the
Spicy Chicken BK Wrapper, a soft flour tor-
tilla filled with a Spicy Chick’N Crisp patty,
a three-cheese blend, lettuce and southwest
sauce, is being offered as an LTO item.
According to an article on QSR Web, a tele-
vision spot campaign was launched on Sept.
1 to promote both new items. “The cam-
paign, which portrays the King as a ‘reverse
pickpocketer’ stuffing cash into customers’
pockets, is designed to offer a positive take
on the increased demand for value in
today’s economic climate,” the article states.
Value Menus See Additions with Wrappers

12. 10
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news&perspectives
LegislationNews
A
testimony was recently given by a
Washington, D.C. restaurateur to
Congress urging members to re-
evaluate the use of grain for fuels.
According to a recent article in the National
Restaurant Association Washington Report,
the restaurant owner was concerned over
the rise in wholesale food prices.
Food price inflation is at a 27-year high,
and prices are continuing to climb, the arti-
cle states. The restaurateur in the story said
there are many factors that have influenced
food price inflation, but the current govern-
ment policies are placing the country’s
needs for food against its needs for energy.
“Congress should foster the development
and transition to renewable fuels from non-
food sources as quickly as possible,”
affirmed the source. “Energy independ-
ence is a laudable goal, but we should not
do it at the expense of adequately feeding
ourselves, the hungry, nor with unaccept-
able costs to the environment.”
So what kind of renewable fuel does the
article’s subject believe should be used? He
believes Congress should consider using
recycled restaurant cooking oil as a renew-
able fuel source and put incentives in place
that would foster the creation of these
kinds of fuel sources.
Restaurant Owners Begin to
Contest U.S. Biofuel Policies
A
recent article in the National
Restaurant Association Washington
Report states Congress has passed
the Credit and Debit Card Receipt
Clarification Act clarifying unclear wording
in the Fair and Accurate Credit
Transactions Act (FACTA).
Passed in 2003 by Congress, FACTA states
electronically-printed credit or debit card
receipts should not contain “more than the
last five digits of the card number or the
expiration date.”
The article noted hundreds of business-
es—including large establishments, family-
owned eateries and small franchises—were
filed against in class action lawsuits because
they allegedly violated FACTA with the
only error being mistakenly printing
receipts with the expiration dates in place.
According to the article, one of the main
issues with FACTA was when a merchant
was considered “willfully noncompliant”
with the law. This was made clear in the
Credit and Debit Card Receipt Clarification
Act, which states businesses that leave out
or shorten credit card numbers to five or
less numbers are not considered “willfully
noncompliant” with FACTA.
“We are grateful for the bipartisan effort to
resolve this important issue,” said a source
in the story. “The Credit and Debit Card
Receipt Clarification Act will ensure that
frivolous lawsuits brought on by FACTA
are put to an end.”
Congress Passes Clarification
Act for Credit Card Receipt Law

14. 12
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news&perspectives
TrendWatch
W
hen it comes right down to it,
most con-
sumers
take only marginal measures, if any, to ease
their fears about the safety of restaurant
food. For example, more than half of con-
sumers (55%) report that they order meats
and chicken cooked well-done, and a bit
less than one of four (24%) order bottled
water.
More than one of five consumers (22%),
however, indicate that they take no precau-
tions when dining in restaurants, as they
are not overly concerned about the safety
Source: American Express MarketBrief,
developed and distributed by Technomic, Inc.
Coping Mechanisms
of restaurant food.
Many consumers perceive locally-sourced
and organic foods to be safer than conven-
tional food products; consequently, 14%
and 10%, respectively, of consumers order
such items when dining out to assuage
their apprehension about food safety.
I
n response to the recent outbreak of sal-
monella, and its
original (and now
incorrect) link to tomatoes,
more than two of five consumers
(43%) report that they responded by not
ordering tomatoes at all in restaurants. An
additional 13% of consumers only ordered
tomatoes if they knew that such foods did
not come from an area associated with the
salmonella outbreak. More than one-third
of consumers (36%), however, indicate
they did not change their eating habits in
restaurants at all in response to the salmo-
nella scare. This implies that these diners
Real-Time Reactions
were confident that restaurants were only
serving products they knew to be safe.
Another 4% of consumers were not aware
that there was a food safety scare at all, and
thus likely did not change their eating
habits either.
T
hose consumers who express con-
cern
about
food safety at
restaurants attribute
such trepidation to a
number of factors. First and
foremost, nearly three of five
consumers (59%) report they are uneasy
because they cannot see how food is han-
dled in restaurants.
Slightly fewer consumers (55%) worry
about the origin of the food they are
served, while exactly half (50%) indicate
T
helate-nightdining
daypartappearstobe
growing.Late-night
diningisdefinedhereas
mealsandsnacksfrom
restaurantsbetween10p.m.
and5a.m.Usageoncea
weekormorehasnearly
doubledbetweenApril2007
andJuly2008.
Therehasbeenanoticeable,
14percentage-point
decreaseintheamountof
dinerswho“never”or“very
rarely”indulgeinlate-night
dining.
QUICKSTAT
O
fthoseconsumers
whodidstopeating
productsthatcontain
tomatoesduetothesalmo-
nellaoutbreak,slightlymore
thanhalf(51%)havesince
resumedeatingsuchprod-
ucts,whilejustunderone-
half(49%)reporttheyare
stillabstaining.
QUICKSTAT
they are just concerned in general about
food safety. The recent news about food
safety was, surprisingly, not at the top of
consumers’ lists; fewer than half (47%)
ascribe their current concern to media cov-
erage of the salmonella outbreak.
Cause for Concern
ModerateUsers(2-3timesperweek)
LightUsers(Oncepermonth)
Lapsed/Non-Users(Rarely/never)
HeavyUsers(Atleaseonceperweek)
Late-Night
DiningUsage
(Takeout&Dine-In)
July ‘08April ‘07
10%
8%
69%
11%
9%
55%
13%
25% Didnotorderatall 43%
Didnotchangebehavior 36%
Onlyorderedproductifnotfromaffectedarea 13%
Wasnotawareofissue 4%
Late-Night
Dining
Trend
Barometer
Unabletoseehowfoodishandled
Hardtoknoworiginoffood
Justconcernedingeneral
Recentnewsaboutfoodsafety
Previouslyhadfoodpoisoning15%
55%
50%
59%
47%
Ordermeats&chickencookedwell-done
Orderbottledwater
Takenoaction/notconcerned
Orderlocally-sourcedfoods
10% Orderorganicfoods
14%
24%
22%
55%
Top Reasons Consumers
are Concerned about
Food Safety at Restaurants
How Consumers
Cope with Concern
about Food Safety
Consumers’ Response
to Recent Tomato
Food Safety Scare
Have You
Resumed
Ordering
Items that
Contain
Tomatoes?

15. 13
2008Issue3
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FLAME
TrendWatch
A
ccording to the Food Marketing
Institute, consumer confidence in
the safety of restaurant food
increased to 65% in 2008, from 43% in
2007.1
This information was collected
before the ongoing–and until recently
untraceable–salmonella outbreak in the
U.S. that sickened over 1,200 people. As a
result of that outbreak, food safety is once
again in the spotlight.
As might be expected in the wake of a
major foodborne illness outbreak, recent
data regard-
ing con-
sumers’
concern for
the safety of
restaurant
food shows
that more
than two of
five con-
sumers
Consumer Confidence in Restaurant Food
1
“U.S. Grocery Shopper Trends 2008 Report,” Food Marketing Institute, May 2008
43%
34%21%
Extremely
concerned
Somewhat
concerned
How
concerned
are you
about the
safety of
restaurant
food?
(43%) indicate they are “extremely con-
cerned” about what they’re being served
when they dine out.
Additionally, more than a third of con-
sumers (36%) are “somewhat concerned”
about this issue. Only approximately one-
fifth of consumers (21%) report they are
not somewhat or extremely concerned.
In keeping with this temporarily-height-
ened sense of concern about the safety of
restaurant food, more than one-third of
consumers (34%) report they are “more
concerned” now than they were six
months ago.
Still, the majority of consumers, 64%,
indicate they are equally as concerned as
they previously were.
Only 2% report they are less concerned.
Source: American Express MarketBrief,
developed and distributed by Technomic, Inc.
Lessconcerned
Equallyasconcerned
64% 34%
More
concerned
Compared
to six
months ago
are you:

16. 14
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regionalassociationnews
EVENTSCALENDAR
1 2 3 4 5 6
7 8 9 10 11 12 13
14 15 16 17 18 19 20
21 22 23 24 25 26 27
28 29 30
1 2 3 4
5 6 7 8 9 10 11
12 13 14 15 16 17 18
19 20 21 22 23 24 25
26 27 28 29 30 31
1
2 3 4 5 6 7 8
9 10 11 12 13 14 15
16 17 18 19 20 21 22
23 24 25 26 27 28 29
30
T
he New South Coalition
(NSC) held its summer
meeting July 13 through
16 at the Biltmore Estates Inn in
Asheville, N.C. Regional presi-
dent Ray Meeks described it as
“a great meeting,” with 38 fran-
chise groups and 54 vendor part-
ners in attendance. Speakers
included: Misty Chally, NFA
director of government relations
and Washington counsel, who
spoke about government rela-
tions and the NFA-BKC
Government Relations Summit;
David Palmer, UBS equity analyst, who
spoke on the restaurant industry & Wall
Street; Joseph Anghelone, NFA chairman,
who spoke about the NFA and its relation-
ship with BKC; Glenn Helton, president
and chief operating officer of Strategic
Restaurants, who spoke on his company’s
24-hour restaurants; Steve Balltrip, NFA
VP of national accounts, who spoke on
NFA liability and general insurance servic-
es; and Tony Menninger, with RSI Food
& Packaging, who spoke on commodity
costs.
The NSC also raised more than $5,000 for
the NFA-PAC at its Franchisees/Vendor
Partners Golf Tournament. Meanwhile, 64
franchisees, family members and vendor
partners went white water rafting and120
franchisees, family members and vendor
partners were in attendance at a dinner at
RegionalNews
T
he Tri-States Regional Association
held its annual membership meet-
ing on June 24 and 25 at the
Beltera Casino and Resort in Beltera, Ind.
Guest speakers included NFA chairman
Joseph Angelone; NFA Executive
Director and CEO, Frank Capaldo;
Director of Government Relations, Misty
9-10NFA Board of
Directors Meeting
Washington, D.C.
Hyatt Regency
Capitol Hill
10-11NFA/BKC
Government Relations
Summit
Washington, D.C.
Hyatt Regency
Capitol Hill
13-15Mid-South
Gulf Regional Meeting
Hoover, Ala.
Ross Bridge Resort
17Mountain
Regional Meeting
Denver, Colo.
17New England
Regional Meeting
8Southern California
General Regional
Meeting
Los Angeles
12-14Great
Western Regional
Meeting
Aptos, Calif.
Seascape Resort at
Monterey Bay
15Mountain
Regional Meeting
Denver, Colo.
15New England
Regional Meeting
27International
Hispanic Franchisee
Association
Puerto Rico
El Conquistador
Resort
6Mid-Atlantic
General Member-
ship Regional Meeting
Baltimore, Md.
Marriott Hotel
19Mountain
Regional Meeting
Denver, Colo.
19New England
Regional Meeting
C
onsultthefollowing
month-by-monthcalen-
dartoviewacompre-
hensiveoutlookofregional
meetingsandotherevents.
Foradditionalinformation
aboutregionalmeetingsand
events,pleasecontactyour
regionalassociation
president.
the Biltmore Estates Stable Loft Café.
“It was time well spent between the
speakers, our vendor partners and fellow
franchisees,” Meeks said. “It is amazing
how much knowledge and ability we have
among our NSC Members.”
The next NSC meeting will be held in
Charleston, S.C., Feb. 8 through 10, 2009.
SEPTEMBER2008
OCTOBER2008
NOVEMBER2008
Chally; and RSI President, George
Hoffman. Also at the meeting, each Tri-
States board member presented best prac-
tices ideas for local store marketing, as well
as profit maximization. Regional president
Jim Harrison said members raved that this
was the regional association’s best meeting
ever. More than 90 percent of members
attended this informative meeting.
Tri-States Regional Meeting
Sees Outstanding Attendance
New South Coalition Hosts
Another Successful Meeting
EVENTSCALENDAR

17. 15
2008Issue3
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FLAME
S
outhern California Regional
Franchisee Association headed to the
sunny beaches of the
Aloha State, as it held its
regional meeting for the
third time in Hawaii at the
Hyatt Regency Waikiki
July 14.
The three-day meeting
saw nearly 100 people in attendance
including franchisees, event sponsors and
family members.
“Everyone enjoyed the weather, food,
helping out the local economy and the air-
Contact Erin Murrin at
(678) 797-5160, or e-mail
erinm@namgllc.com to
submit regional news.
RegionalNews
line industry and—most of all—the beach,”
said Regional President Herman Li.
Southern California Heads
to Popular Destination
for July Meeting

18. FRANCHISEE-TO-FRANCHISEEFORUM
16
2008Issue3
www.nfabk.org
FLAME
regionalassociationnews
“George Hoffman and Joe did great with
their respective presentations. Always need
‘State of NFA and RSI’ (report). (The) trib-
ute to those helping charities is good idea.
This year, (it was) not well-executed. Let’s
have a detailed, timed agenda for all to fol-
low.” Mike DeRosa
Eau-D Inc./Coach’s Fast Food Inc.
NFAMemberNews
T
he NFA Board of Directors held
its June meeting at the Charleston
Place Hotel in Charleston, S.C.
The hotel often utilizes the historic Riviera
Theatre & Conference Centre across the
street as a site for business meetings and
conferences.
Originally opening in 1939, the theater has
been renovated with many modern con-
veniences, including state-of-the-art tech-
nology. The NFA board members were not
only able to experience this past-meets-
present facility; they also received a warm,
front-and-center welcome with the words
“Welcome National Franchisee
Association” displayed on the theater’s
marquee.
R
obert Furman was inducted into the
prestigious BURGER KING Hall
of Fame in May. This honor given
by BKC recognizes Furman as an excep-
tional restaurant entrepreneur through his
outstanding leadership, dedication and suc-
cess in the system.
Franchisees considered for the esteemed
award must have been in the company’s
system for more than 20 years, have a suc-
cessful track record across all of the BURG-
ER KING system’s strategic initiatives and
be devoted to helping enhance their local
Z
ubair Kazi of Kazi Foods was pre-
sented with BKC’s Brand
Leadership Award during the 2008
BKC Global Convention in Orlando, Fla.
The award recognizes the top 16 franchisees
NFAMemberNamedtoBURGERKINGHallofFame
communities.
“With only
five inductees,
including our
founders,
James
McLamore
and David
Edgerton, the
BURGER
KING Hall of
Fame Award
is the highest
from BURGER KING world-
wide who have proven to be
top-notch in operating their
restaurants with high-quality
customer service, employee
development, achieving oper-
ational excellence, business
investment and brand loyalty.
“Mr. Kazi…is among these
elite franchisees who have
consistently delivered extraor-
dinary results in all areas of
their businesses,” said Chuck
Fallon, president North
America Burger King Corp.
“I am honored to receive the distinguished
2008 BURGER KING Brand Leadership
Award,” said Kazi. “Our commitment to
delight our guests by delivering on the
Hawaii Franchisee Receives BKC Brand Leadership Award
I would like to see a more detailed progress
report for both organizations. Herman Li
C&L Restaurant Group
George Hoffman’s presentation and Cal
Ripken. Next year, some kind of energy
savings solution. Jay Della Monica
Creative Foods Corp.
WhatwasyourfavoritepartoftheNFA/RSIMember
Meeting,andwhatwouldyouliketoseefornextyear?
honor bestowed upon a franchisee,” said
John Chidsey, chief executive officer
Burger King Corp. “We are pleased to have
Robert Furman join this select group of
best-in-class leaders of the BURGER
KING brand. Robert’s passion and com-
mitment to his employees, community and
restaurants is inspiring.”
After receiving the award, Furman wrote a
thank you letter to John Chidsey that he
concluded by saying he was looking for-
ward to the next 50 years in the BURGER
KING system. Photo Courtesy of Burger King Corp.
HAVE IT YOUR WAY®
brand promise is
at the core of our business.”
Photo Courtesy of Burger King Corp.
NFAontheMarquee
Robert Furman

19. 17
2008Issue3
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FLAME
Equipment Financing
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Harbour Capital wishes the NFA a Very Happy 20th Anniversary !
Franchisees Meet with
Senator, Impressed
with Position on Issues
I
n July, NFA members Steve Miller,
Dave Laslow and Jim Harrison met
with Ohio Sen. Steve Stivers. During
their
visit,
the
group
present-
ed the
senator
with a
PAC
check.
“We
were totally impressed with (him) and his
position on the issues,” Harrison said. “He
is 100 percent pro-business. He was very
appreciative and offered to appear at our
national convention as well.”
NFAMemberNews
W
esfam Restaurants Inc.
recently made a large
donation to the U.S.
Space and Rocket Center for the
refurbishment of a Mobile
Quarantine Facility to be housed
in the new Davidson Center.
“It is similar to an Airstream trail-
er,” said Jean Wessel-Templeton,
president of Wesfam Inc. “…They
were used early on in the space
effort to quarantine the astronauts
when they returned to earth. This
unit is only one of three left, and it
was found being used at a fishing
camp in South Alabama.”
The announcement of Wesfam’s contribu-
tion was made on July 19 at the Annual
Space Camp Reunion Dinner, where U.S.
WesfamRestaurantsInc.MakesSizable
DonationtotheU.S.SpaceandRocketCenter
Space Camp CEO Larry Capps presented
Wessel-Templeton with a keepsake in
exchange for her company’s generosity.
Jim Harrison, Steve Miller and DaveLaslow meet with Sen.
Steve Stivers in a BURGER KING restaurant.

20. 18
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features
b y m e g h a n
morris
The Caseof
StolenLiquidGold
YellowGreasefromRestaurantsIsBeingPilferedto
CreateBiodiesel.AreYouaTargetinthisGreaseWar?
W
ith the rise in gas prices, many believe there is a definite need to
discover alternative sources of fuel and for the United States to
reduce its dependence on foreign energy sources. And as the sup-
port for finding fuel alternatives becomes increasingly popular, apparently so
does the attractiveness of a restaurant’s used and discarded cooking oil. Could
this put a restaurant in the middle of what has been referred to as the “grease
war”? lMany people have heard of ethanol as an energy source for biofuel,
but many may not know that surplus cooking oil—or what is called yellow
grease—is being used as an alternative source of energy called biodiesel.

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This yellow grease is produced by way of a chemical reaction with
alcohol and has recently become a sought-after commodity because
of the many current economic factors—including high oil prices—
forcing consumers and business owners to pinch pennies.
Like many hot commodities—diamonds, gold, silver, platinum—
there is a black market waiting to make a profit on cooking oil. As a
result, restaurants are having a difficult time preventing used
processed fryer oil from getting into the hands of what some per-
ceive as profit-seeking thieves.
Take, for example, a recent cooking oil heist that took place at a
BURGER KING restaurant owned by Strategic Restaurants in
Morgan Hill, Calif. The alleged thief pulled up to the restaurant’s
trash area and rummaged through the bins until he found what he
was looking for—yellow grease. He managed to vacuum out around
10 to 15 gallons from the restaurant, but was caught by police
before he was able to get away with the liquid gold (which could
have been sold for a profit, used as biodiesel or possibly even both).
So who are these so-called grease thieves lurking around for your
restaurant’s used-cooking oil? According to experts, they fall under
couple of categories: Those looking to make a profit and those des-
perate to save money on fuel.
Dan Geller, research engineer at the University of Georgia’s
Department of Biological and Agricultural Engineering, says there
are people who try to save money by putting the used cooking oil
in what he calls “grease cars,” which are typically vintage Mercedes’
or diesel trucks.
Geller said people take cars that are fueled on diesel engines and
create either a dual tank to run their diesel engine cars on grease, or
they create biodiesel for their diesel engine cars that can be added
directly to their car’s gas tank.
Perhapsthereasonwhymanyrestaurantsareseeingleftovergrease
stolenbeforeitcanbepickedupbycollectioncompaniesisbecause
thereisaprofittobemade,andpeoplearebeginningtoseedollar
signs.AccordingtoarecentarticleintheNewYorkTimes,yellow
greasewasaround7.6centsperpoundin2000.Thepricehasjumped
toapproximately40centsperpoundtoday,saidBillSmith,market
reporterforUrnerBarry’sYellowSheetnewsletter.Thatwouldmake
theMorganHillBURGERKINGgreaseheistwortharound$40.
The Northern California BURGER KING was not the first stop
for the alleged thief. According to the article, police found 2,500 gal-
lons of used cooking oil in the suspect’s truck, which would make
that day’s work worth around $6,000.
Grease theft is not isolated to a certain region of the country, and inci-
dences of grease theft have been reported in all 50 states, said
Christopher A. Griffin, director of legal affairs with Griffin Industries,
Inc., a waste by-product collection company that uses derivatives from
the rendering process to manufacture alternative sources of energy.
Griffin said restaurants usually receive rebates from rendering com-
panies depending on the grease collection volumes. If the grease is
stolen and is not there for the collection truck to pick up, Griffin
added, restaurants will not be able to acquire their rebates.
Sure, yellow grease is a potentially high-profit product that could
Please see LiquidGold on page 20
Photooppositepage©iStockphoto.com/jtyler

22. features
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serve as a viable fuel alternative. But an interesting issue arises
when considering the legality—or lack thereof—of obtaining used
cooking oil for profit or use.
Once yellow grease is properly discarded by a restaurant, who does
it belong to? Should it truly be considered “theft” if someone takes
something that has been thrown away by a party that does not want
it anymore?
According to Jon Jaworski, a lawyer in Houston who has worked on
hundreds of cases involving alleged grease thefts, grease is usually
put out at the back of a restaurant near the trash because of the ran-
cid smell produced by the old grease.
“Once you throw something in the trash it is abandoned property
and it’s anyone’s game,” said Jaworski. Of course, there are two
sides to this argument.
“The biggest misconception people have is that grease is trash,”
said Griffin. “People wouldn’t steal it unless it had value. Grease is
really no different than diamonds because it is traded on an open
market and it has value.”
Griffin maintains that the acquisition of discarded grease is unlaw-
ful, and said there are two ways grease is stolen. The first is
overnight by someone who is usually trying to get in-and-out quick-
To learn more about our payroll, bill payment and financial reporting solutions, contact the NFA at
678-797-5160, or visit us on the Web at www.payplusforfranchisees.com.
1988-2008
* 2 0 Y e a r s S t r o n g *
ly. The second is during the day-time hours when a thief will tell
the restaurant owner they are subcontracting for a rendering compa-
ny (when, in fact, they are not) in order to obtain the grease in a
seemingly lawful manner.
He said the easiest way to spot someone who is trying to steal your
grease is if they pull up in an unmarked vehicle. “You know when
one of our trucks shows up,” said Griffin.
A restaurant can produce multiple gallons of grease per week
depending on traffic and sales volume, and many restaurants may not
even know grease is being stolen unless the restaurant has a defense
plan in place. Griffin said his company works with restaurants to help
combat grease theft and have people devoted to the issue full time.
Jaworski has a theory, however, that rendering companies only want
to help prevent grease theft because there is a considerable, money-
making market for grease.
“There’s a war going on because of the profit that can be made,”
said Jaworski. “It’s big companies trying to monopolize the industry.”
Restaurant owners and managers like Tomas Reyes, district manag-
er for Strategic Restaurants, feel grease theft is a growing problem
that will continue as long as gas prices stay volatile.
“The grease is in closed containers, so (stealing used grease from a
restaurant) is like opening your back door,” said Reyes.
Meghan Morris is the NFA Communications Coordinator and Associate
Editor of the FLAME.
continued from page19
Liquid Gold

23. Like you, Bank of America has been helping franchisees for over 20 years. Our Restaurant and
Franchise Banking groups understand the challenges of running a successful restaurant.
That’s why we develop unique banking solutions for franchisees nationwide. Whether it’s
financing a new location, improving cash flow or reducing the time a manager is away from the
store to make deposits, Bank of America is committed to your success.
To discover how to put the power of the nation’s largest business bank to work for you,
contact us toll free 1.877.405.0164 or visit bankofamerica.com/franchise.
Best wishes to the NFA on 20 years of excellence.
Bank of America, N.A. Member FDIC. ©2008 Bank of America Corporation.

24. 22
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chase. They are set collectively by the banks, which are stakeholders
in Visa and MasterCard. These fees help to compensate the banks
and credit card companies who process the transactions in exchange
for the risks and expenses incurred in processing a transaction.
Originally, these fees began as a way to cover the real cost of a card
transaction to the banks. Because everything was done on paper at
that time, this process required far more manpower than it does in
the technology-driven world of today. Yet fees have more than dou-
bled since 2001, making U.S. fees among the highest credit card
interchange fees in the industrialized world.
Why can’t you see an interchange fee
on your statement?
If you take a close look at your credit card bill, you will notice a
“discount fee.” This discount fee is actually composed of several
governmentrelations
There are two simple reasons:
1)Interchange fees are sneaky, hidden costs
which are concealed on your credit card state-
ments; and
2)You have no input as to how much they cost
and how much is being deducted from your
bottom line because of them.
The following article will educate you on what
you need to know about these hidden and cost-
ly interchange fees.
What are credit card interchange fees?
Credit card interchange fees are fees that your bank (a “merchant’s
bank”) pays a customer’s bank when you accept a credit card pur-
b y m i s t y
chally
Credit
Card
Interchange
Fees:
HiddenCostsFORA
PublicProblem
T
here has been much controversy concerning credit card interchange
fees in Washington over the past several months. What are credit
card interchange fees, and why should you be so upset about them?

25. 23
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fees, the largest of which is the interchange fee. Typically, 70 to 89
percent of the discount rate goes to pay the interchange fee.
Where is all of this money going?
These days, only 13 percent of a credit card interchange fee goes to
pay the real cost of the transaction. The remainder goes to items
such as credit card junk mail. It also goes into the credit card com-
panies’ pockets. Card issuers now make over $30 billion annually
from interchange fees, an increase of 85 percent since 2001.
What exactly is the current credit card
interchange fee rate?
The current interchange fee average is 1.75 percent, roughly three
times the current rate in Europe and four times the rate in Australia.
This means that nearly $2 of every $100 spent in your restaurants
using credit cards goes directly to the credit card companies and
their banks.
Why have consumer groups
joined in this fight?
In an unusual pairing, both the business community and consumer
organizations, such as consumer advocacy group U.S. PIRG, have
joined forces to fight for transparency and disclosure of credit card
interchange fees.
With credit card use increasing from restaurants to retail establish-
ments, merchants are often forced to raise prices on their items in
order to make a profit. While consumers are not generally aware of
these fees, the costs are often passed onto them in the form of high-
er-priced consumer goods. This not only penalizes credit card users,
but also those who continue to pay in cash.
In fact, interchange fees cost the average American family $350 per
year, according to statistics from the National Retail Federation
(NRF).
Legislative History
The issue of credit card interchange fee disclosure has been a hot
topic on Capitol Hill over the last several years.
Last summer, the U.S. House of Representatives Judiciary
Committee Antitrust Task Force (Task Force) had a hearing on this
issue. Several months later, the Senate Permanent Subcommittee
on Investigations held a hearing scrutinizing the unfair practices
imposed on consumers and merchants by credit card companies.
On March 7, 2008, House Judiciary Committee Chairman John
Conyers (D-MI) and Rep. Chris Cannon (R-UT) introduced the
Credit Card Fair Fee Act (H.R. 5546), a bill which requires credit
card issuers to negotiate with merchants in setting competitive rates.
If no voluntary agreement is reached, the bill creates a three-judge
panel called the Electronic Payment System Judges to determine
which party’s proposal is most competitive in the current market.
H.R. 5546 currently has more than two dozen co-sponsors, nearly
Please see HiddenCosts on page 24
Photooppositepage©iStockphoto.com/CaroleGomez

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evenly split between Republicans and Democrats.
Support for the bill has been growing
with the help of the Merchant Payments
Coalition (MPC), a group of business and
industry leaders who are fighting for a
more competitive and transparent card
system that works better for consumers
and merchants alike. MPC’s member
associations collectively represent about
2.7 million stores with approximately 50
million employees. NFA is a member of
the MPC.
Opposing the bill is the Electronic
Payments Coalition (EPC), “a broad-
based group of payment card networks,
financial services companies, and financial
services trade associations” who believe
that choice and education is the key to
solving the problem.
In May of this year, the Task Force again had a hearing, but this
time specifically on the Credit Card Fair Fee Act. Representatives
from the EPC, the MPC and U.S PIRG testified as to the benefits
and drawbacks of the bill. Those who opposed the bill claimed that
continued from page23
Hidden Costs merchants have a choice not to use the products of credit card com-
panies and accept payment on a cash-only basis. Supporters
responded that merchants would lose business if they chose that
model.
Conyers is seeking a hearing on his bill in the next several months.
Supporters are lobbying members of Congress to educate them
about the problems associated with credit
card interchange fees in the hopes of get-
ting the bill to the floor of the House of
Representatives.
What can you do?
Contact your NFA Government
Relations department for talking points
and draft letters to send to your members
of Congress.
Go to www.nfabk.org and click on NFA
Votes! to learn more about these and other
important legislative issues that will affect
the profitability of your businesses.
Contact your members of Congress and
tell them to support H.R. 5546. You can
find your members of Congress by visit-
ing www.house.gov and entering your zip code.
Misty Chally is the NFA Director of Government Relations. Contact her at
(202) 416-0270 or mistyc@namgllc.com.
With credit card use
increasing from restau-
rants to retails establish-
ments, merchants are
often forced to raise
prices on their items in
order to make a profit.

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28. 26
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O
n May 27, Connecticut Gov. M. Jodi Rell vetoed a bill that
would have increased the state’s minimum wage. What
makes this political denial different from others is that long-
time NFA member Jack Muirhead and his
grassroots lobbying efforts were directly respon-
sible for the governor’s decision.
As a BURGER KING franchisee with seven
locations throughout central Connecticut,
Muirhead wrote the governor a letter outlining
the cost burden a minimum wage increase
would create for small business, resulting in the
veto. When Rell defended her decision during
a live telephone interview on Fox News, she
said business opponents were persuasive and read the letter
Muirhead wrote.
Though the veto was later overridden by
the General Assembly, Muirhead’s
involvement is a tangible example of
grassroots lobbying making a difference.
He discusses his experience in this
FLAME QA.
NFA: How long have you
been politically active?
Jack Muirhead:(Since)10 or12 years ago.
I actually got started in Connecticut
through the Metro Hartford Chamber of
Commerce and sat on the legislative
committee there. That was really my
introduction to the legislative process. I
no longer serve on the committee, but
have stayed involved in local politics.
NFA: What prompted you
to write Gov. Rell?
JM:I was having discussions with a local
lobbyist from the National Federation of
Independent Business (NFIB) who had
been working with a friend of mine on
another issue. He mentioned the possibil-
ity of a minimum wage increase in
Connecticut and suggested writing the
governor. Then at the BURGER KING
(Global) Convention in Orlando, I had a
coincidental meeting with Misty (Chally, NFA director of govern-
ment relations) at lunch, and she emphasized the importance of
being involved locally. That spurred my initiative to write the letter,
and so I did.
NFA: What was your initial thought when
you heard the governor had referenced
your letter?
JM:Well, honestly I was kind of impressed she reads her mail and
listens to arguments from the other side.
NFA: Does this change your perception of
grassroots involvement in politics?
JM:It does. People think that nothing gets through to their repre-
sentatives. Almost like it’s a feel-good exercise; but an exercise in
futility. You hear politicians say that they
got 40 calls or heard from masses of peo-
ple on some topics, when in many cases
the reality is that it’s only four or five. It
goes to show that a small number of peo-
ple can move an issue in one direction or
another.
NFA: What did you
think of the veto being
overridden?
JM:It was extremely disappointing, but
we won’t give up. It just demonstrates
the need to elect more business-friendly
representatives and to support their cam-
paigns. If anything, it proves we need to
be more politically active.
NFA: What is your advice
for franchisees when it
comes to grassroots
involvement?
JM:Develop a networking relationship
with the representatives that service the
neighborhoods where their restaurants are
located. When things like the minimum
wage increase come up, they’ll recognize
the relationship. Now, I don’t expect
them to vote with me on every issue, but
at least be willing to have an honest and
rational hearing on the issues.
James Menees is the NFA Manager of Government Relations.
governmentrelations
OneVoiceLaunches
OpportunityforChange
b y ja m e s
menees
FranchiseeinPoliticalAction:NFAVoiceHeardbyConnecticutGovernor
“You hear politicians
say that they got 40 calls
or heard from masses of
people on some topics,
when in many cases the
reality is that it’s only
four or five. It goes to
show that a small num-
ber of people can move
an issue in
one direc-
tion or
another.”
Jac k M u i r h e a d

29. 27
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A
merica’s businesses are the backbone of our success as a
great nation. They create jobs and grow our economy. At a
time when many hard-working American families are feel-
ing the crunch from rising food and gas costs, helping our nation’s
businesses is more important than ever.
Since my earliest days in Congress, I have
made it a top priority to defend America’s busi-
nesses. Whether it’s fighting against wasteful
spending of taxpayers’ dollars or supporting key
tax relief legislation, I’ve been a voice for small
business. As a small-business owner myself, I
understand the daily barrage from big govern-
ment, trial lawyers and others. Sometimes it’s
hard to keep your head above water.
That’s why I was proud that Congress recently passed an important
piece of bipartisan legislation to help America’s business owners.
The Credit and Debit Card Receipt Clarification Act, which I intro-
duced with Congressman Tim Mahoney, will help bring an end to
a slew of frivolous lawsuits aimed chiefly at our nation’s small busi-
nesses. This commonsense legislation makes a technical correction
to the Fair and Accurate Credit Transaction Act (FACTA) to free
hundreds of businesses from potential exposure to massive mone-
tary damages.
In 2003, when Congress passed FACTA, it was intended to
improve and strengthen various protections against identity theft.
One of the key provisions requires businesses to limit the amount
of information printed on receipts. Unfortunately, the way in which
Congress drafted the provision led to confusion and expensive liti-
gation for hundreds of innocent small-business owners.
When businesses began complying with FACTA, they started trun-
cating the credit and debit card number down to the appropriate
number of digits. Companies made sure that they printed no more
than five digits on the receipt, but many also printed the card’s expi-
ration date. They simply just weren’t clear on the new requirement.
Shortly thereafter, trial lawyers saw opportunity knocking, and they
found a way to take advantage of this situation. Hundreds of law-
suits were filed against these businesses alleging that the failure to
truncate both the card number and redact the expiration date on a
receipt was a willful violation of the law.
Because FACTA was incorporated into the Fair Credit Reporting
Act (FCRA), the statutory damages provisions of the law (between
$100 and $1,000 per consumer) meant a company that had printed
a million transactions that way was facing a minimum of $100 mil-
lion and as much as $1 billion in damages. Fines that high mean life
or death for many small businesses.
Even when identity theft prevention experts reported that five dig-
its of a credit card plus an expiration date printed out on a receipt
were not enough to steal someone’s identity, small businesses were
still targeted.
My bill, the Credit and Debit Card Receipt Clarification Act, clari-
fied the law, protected previous transactions and liberated American
businesses from these frivolous lawsuits.
Now, businesses still have to update their receipts. They still have
to comply with FACTA, but they can’t be dragged through years of
lawsuits because they printed a credit card expiration date on a
receipt. If businesses do anything that puts customers’ accounts in
real jeopardy, they may still be on the hook. But they cannot be
sued for this remote congressional technicality.
With my bill, consumers will be protected on both ends of the
transaction. After all, who would have been paying the real price for
this? American consumers would be left holding the short end of
the stick because stores and businesses across America would have
had to offset the cost of these lawsuits by raising prices. Or busi-
nesses would have closed, and jobs would have been lost. Again,
everyone loses.
My bill is a small step towards protecting our nation’s businesses.
You can rest assured that while in Washington, I will continue the
fight to protect and aid America’s small-business community.
Rep. Michele Bachmann is a Republican from Minnesota’s sixth
Congressional District who serves on the Financial Services Committee.
ReleasingSmall-Business
Ownersfrom
FACTAStronghold
b y r e p . m i c h e l e
bachmann
COMMENTARY

30. 28
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coverstory
b y e r i n j .
murrin
A
merican astronomer Dr. Carl Sagan
once said, “You have to know the past
to understand the present.” In the classic
book 1984, George Orwell penned a similar atti-
tude: “Who controls the past controls the future.
Who controls the present controls the past.”
These sentimentscould not be more poignant when consid-
ering the past, present and future of the
National Franchisee Association. Since it
was formed in 1988, the NFA and its fran-
chisee members have been trying to forge
a more secure future by understanding the
mistakes, accomplishments and lessons of
the past.
It seems fitting in the 20th year of the asso-
ciation’s existence that an exploration of the
past is taken in order to understand the
topics that franchisees still deal with today
and will likely continue to manage for years
to come. The following pages contain a
reprint of some key articles that appeared
in the first addition of the FLAME in 1990.
First NFA chairman Don White said
reprinting the excerpts from the first issue
of the FLAME should be of special interest
to franchisees because the articles “illus-
trate to the membership how (the) players
change, the products evolve, the systems
improve, but the ongoing issues recycle.
“We are continually striving to get
improved products, systems, marketing
and communication,” White said.
Current NFA secretary Ben Jarratt agrees,
saying reading articles such as the ones
included in this reprint is vital to under-
standing the goals of the NFA 20 years ago.
“Since we have so many new franchisees
in the system, these types of histories are
educational, too,” he said.
Future
Understandingthe
Debut Issue, Spring 1990

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54970 4795 Flame 1 4/4/08 7:12:27 AM
Editor’s Note:The following material is reprinted verbatim from the first
issue of the FLAME, published in 1990. All grammar, syntax and punctu-
ation were maintained in an effort to provide an exact duplication of origi-
nal material.
President’s
Perspective
BY DON WHITE
Communication used to be simple. When one cave man hit another over
the head with a club, the recipient got a clear message—and a large
bump to boot.
Communication today is more civilized, to be sure. But it’s also more
complicated. Complicated by a larger population, broader geography,
differing views and varying agendas. Yet one thing remains the clear.
Communication is essential. Essential especially among people with a
common goal. People such as Burger King®
franchisees.
While we may come from different walks of life and live in different
places, we have a common set of
goals. Goals that include running
our Burger King®
businesses suc-
cessfully. Through The Flame, this
new National Franchisee
Association newsletter, we’ll help
each other run our businesses bet-
ter by covering important news; by
sharing; by expressing views. In a
word, by communicating issues
facing franchisees and by commu-
nicating the actions of the NFA.
For example, this issue features
coverage of the very productive
NFA February meeting. At that meeting- and in a letter sent to all fran-
chisees- we discussed the need to improve communications. As a result
we’ve just completed a national vote to determine which entity—the
NFA or NFAC—will be the recognized representative of the franchisees
to Burger King®
management. The overwhelming victory of the NFA in
this vote was a result of franchisees working together to achieve a
common goal, but this is only the beginning. Now is the time to
for us to focus our efforts—as a unified franchisee community—on
the future success of the Burger King®
System.
In addition to communicating issues and their resolution, here’s a pre-
view of what else you can expect from future issues of the Flame.
I Features will keep you informed about key issues.
I Committee Reports will provide you with updates in seven areas:
Membership; purchasing; insurance; marketing; operations;
franchisor/franchisee relations; and government legislation.
I Market Basket will provide national pricing comparisons to help
determine the most beneficial purchasing methods and pricing.
I News Digest will feature short news stories on items of interest to
franchisees.
I Franchisee Feedback will give you a forum to express your thoughts
and your opinions.
I’m counting on all of you to help make—and keep the newsletter rele-
vant. There’s no point in publishing The Flame if it goes immediately
from your mail box into your round file so let us know if it is helpful. Tell
us what you want to read about. Share your thoughts about running your
business better. It’s really important for all of us to understand what
each of us goes through. And it’s up to all of us to keep future issues of
The Flame lit.
Debut Issue, Spring 1990

32. 30
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coverstory
Out of the National Franchise Association’s winter board meeting came
agreement on two fronts: Attendees agreed to hold an election to
determine whether the NFA or the NFAC will represent franchisees to
Burger King®
management. (See president’s column.) And they agreed
better communication is not only needed, but absolutely necessary.
“The days of not being able to communicate with the company on a pro-
fessional level are over,” declared Don White, NFA president. “We must
hold the company accountable on issues.”
Better communications on the issues was evident all around at the
February meeting in Coral Gables, Fla. All the areas addressed by
Burger King management stemmed from questions the NFA identified
and submitted as priority concerns. Discussions centered around
national legislation, regional issues, legal agreements, marketing moves,
corporate changes and the Burger King/Grand Met relationship.
“Grand Met is highly dependent on the success of Burger King
Corporation,” Ron Petty, the president of Burger King Corporation,
pointed out. “When Grand Met acquired Pillsbury, Burger King’s parent,
it had to put the system back together and move it in a positive direc-
tion.”
What positive steps has Grand Met taken? Among the dozen accomplish-
ments Petty cited are the franchise incentive program and the problem
operator plan. That plan gives poor operators nine months to improve;
if no improvement is evident, Burger King Corporation will take court
action to remove the operator from the system.
In response to a question about the short-term future of struggling
franchisees: Petty said Burger King will assist in getting them through
tough times; OVP’s received general criteria six months ago for finan-
cially troubled franchisees who are good operators. The offer to assist,
however, appears not to have reached franchisees.
Petty also said Burger King is spending $110,000 per unit in capital
improvements and is developing a test to help recruit the best possible
people.
Reviewing NFA issues sent prior to the board meeting, Petty acknowl-
edged communication has been one way, resulting in “some frustration
on both sides.” To improve communication, he outlined several initia-
tives; including field technology, a “kill the snake” tour, seminars by Tom
Peters and an NBPC restructuring.
Here are Petty’s responses to other questions submitted:
I There must be a 12-month marketing plan because it drives every-
thing else. Burger King now is more interested in “getting it right than
in getting it fast.”
I In a franchisee to franchisee sale the seller has a two-year obligation
to Burger King Corporation. If the buyer is unable to honor the agree-
ment, the seller must contact Burger King Corporation for resolution.
I The corporation is not out to “cannibalize” if it has a negative impact
on sales and cash flow. However, market penetration must be sufficient.
Each situation will be looked at individually.
I Burger King Corporation is willing to compromise on successor-
agreement
requirements
for financially
troubled fran-
chises.
I The company
realizes the air-
quality issue is
escalating and is
looking at a hood
retrofit, with a
probable price
tag of $15,000 to
$20,000.
I A new sanita-
tion program to
prevent food-
borne illness is
being set up; it
will include a hot line.
I Updated training materials on cus-
tomer service, product planning, salads
and french fries are ready; training may
be provided in the future by satellite to
local facilities.
I Improving the drive-thru system is top
priority. A new audio system and a screen that shows the order to the
customer are being studied.
I New uniforms, which can be used as needed with current uniforms,
will be introduced in October.
I Burger King is working with architects to improve restaurant layouts.
It is aware of past lack of interaction between operations and facilities.
Gary Langstaff, Executive Vice President of Marketing, followed Petty
with an overview of the upcoming marketing plan. The plan is not
detailed for competitive reasons. Langstaff admitted making some early
mistakes in marketing, but reinforced his commitment to doing whatev-
er it takes to increase Burger King®
customers.
ItWasMoreThanAMeeting.
ItWasAMeetingOfTheMinds.
A big turnout and
full agenda made for
a productive NFA
Winter Meeting.
Here attendees
“take five” between
speakers.
Debut Issue, Spring 1990

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54970 4795 Flame 2 4/4/08 7:12:29 AM
In addition to the plan, Langstaff commented on several marketing topics.
Regarding advertising: The selling line, “Sometimes You Gotta Break the
Rules,” will stay and be made clear to customers in the next three to six
months.
Regarding the 800 number: Designed to monitor communications with
customers, it was tested for four months in company restaurants, one-
third of its cost is the food component.
Regarding discounting: He has an aversion to it; but Burger King had to
discount to stay competitive with others.
Regarding menu items; There should be a formula to determine their
viability and govern their removal.
Regarding the marketing
fund: Roll-up will
remain; four percent is
not enough; but in
October a three/one/one
split will be considered.
On the legal front, the
NFA has retained
Kilpatrick and Cody of
Atlanta to represent the
association. Attorney
Rupert Barkoff, speaking
at the board meeting,
said franchisors—not
franchisees—have the
legal advantage and are
favored in the contract.
“The franchise chain is a delicate ecology system in itself,” opened
Barkoff. Barkoff noted that if any component of that system is hard-
pressed, there can be unfavorable consequences to the remainder.
Barkoff also stated that frequently franchisees do not realize that
when push comes to shove, they can have control over their fates.
“Franchisees have significantly more political and other clout than
the franchisors when they band together to obtain relief for a common
problem.”
In response to questions raised in advance by the N.F.A. Board, Barkoff
noted: “Current image is not addressed specifically in the contract.” On
the topic of cannibalization, he observed that it was difficult to general-
ize and the rights of a franchisee will depend upon the express provi-
sions of his agreement and the facts of a particular problem.
Christopher Dams, Senior Vice President of System Supply
Management, and George Hoffman, Vice President of Purchasing,
addressed system and purchasing concerns.
I Dams is negotiating to delay and reduce the 17 cent a gallon increase
in Pepsi®
prices.
I Purchasing will take over from marketing the procurement of Kids
Club Premium supplies. Markup price of those supplies includes manu-
facturing, freight and financing.
I In view of a 28.7 percent increase in carton prices, carton design
responsibility will transfer from marketing to the
brands committee, which will preview designs and
assess value received.
I Time and distance may be factors in the quality prob-
lems franchisees are experiencing from BKDS, said
Dams. In such cases, he advises calling the supplier
and returning the product. Dams stated he would take
the concerns of the franchisees back to corporate.
Melanie Wisniewski, Burger King Corporation’s Director of Legislative
Affairs, covered federal rulings that could affect franchisees.
Wisniewski noted that the Bush administration has shifted financial
responsibility to the states in order to help solve the budget crisis. She
feels the states are likely to shift these costs to businesses.
The Burger King strategy is to lobby against such legislation and to ask
for letter-writing support. According to Wisniewski, additional lobbyists
have been hired to control the impact of Federal Trade Commission
laws. The FTC wants to govern franchises; currently states have that
power. Currently state laws favor franchisees, while federal laws favor
franchisors.
Wisniewski also said consumers perceive the fast food industry as a 30
percent contributor to solid waste disposal problems, although the
industry actually generates only one fourth of one percent. Burger King
is looking into a recycling and composting pilot program and is trying to
remove all styrofoam from restaurants.
Gary Langstaff,
Burger King
Marketing V.P.
fields questions
from franchisees
after outlining
1990 marketing
plans.
Debut Issue, Spring 1990

34. Jack Eberly (left),
Northwest Region
and Curtis Smith, Tri-
State Region, are
all smiles in
Coral Gables.
coverstory
32
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NFANationalIssues
Winter1990
These issues have been identified as priority items on the NFA agenda
as a result of the February 7th meeting. The NFA will endeavor to
resolve these issues with BKC.
I Continue to improve communications between Burger King
Corporate and franchisees. While progress has been made, efforts
will continue to ensure lines of communication stay open. The wealth
of knowledge available from the franchisee community is a valuable
resource for Burger King Corporation and should be utilized.
I While sales trends are up national there are still geographical pock-
ets where poor sales have weakened the financial condition of the
franchisees. A company and franchisee task force needs to be put in
place to deal with these areas as soon as possible.
I Burger King Corporate must issue a clear policy on cannibalization.
I Successor requirements are becoming cost prohibitive due to cur-
rent sales trends. Successor requirements need to be adjusted or
staged over a period of time to reflect sales and reduce financial
impact.
I The current roll up of the Joint Marketing Fund to increase national
marketing strength has limited regional flexibility. In the future the
Joint Marketing Fund must adequately be funded in order to respond
to regional marketing needs.
I An effective system of testing new products and marketing programs
is needed to determine customer acceptance, program feasibility and
return on investment before major funds are committed.
I A program is needed to drive dinner daypart sales.
I There is no existing formula for determining the viability of menu
items. The current menu management strategy needs to be defined.
I Marketing needs to receive more operational input.
I The results of the 800 number have just recently been communicated
to franchisees. The rationale for using marketing funds for this pro-
gram has not been justified.
I A post-analysis of marketing programs should be compiled to better
understand their success and impact.
I The FISH TENDERS program should be analyzed to determine its
effectiveness in the system.
I Restaurant Progress Reports (RPR) evaluations are inconsistent sys-
tem-wide and within markets. Consistency is imperative for a produc-
tive program.
I Equipment specifications for new product rollouts need to focus
more closely on volume requirements, maintenance cost and restau-
rant layouts-before purchase commitments.
I What is the commitment to automate Burger King restaurants?
I What is the new uniform status?
I Investigate Human Resources plans to assist with recruitment and
retention.
I Operations and Facilities are not coordinating activities. Facilities
must be designed that serve the needs of the operation, not vice
versa.
I Food and paper costs, particularly on the BK BROILER, are signifi-
cantly reducing gross profit margin. This cost needs to be reduced
and more closely scrutinized in the future.
CommitteeUpdates:
Membership:
I The NFA objective to establish regional associations has met with
universal acceptance. Confirmation was the overwhelming majority of
licensees voting in favor of the NFA to represent the franchisee com-
munity in communication with Burger King Corporation.
I Active efforts are underway to assist organizational activities in the
few remaining markets. We request any franchisee who has not been
invited to join a regional association to contact Linda Waddell at
707 642-7567.
I The main objective of the membership committee at this time is the
active participation of every franchisee in the NFA. Each franchisee has
invested significant capital and energy into the Burger King®
system and
each has a vested interest in the future of the system. Several regional
associations count 100% membership within their area. That now
becomes a primary goal of every association.
Franchisor/Franchisee Relations:
I The law firm of Kilpatrick and Cody of Atlanta, Georgia, specifically
attorney Robert Barkoff, has been selected to provide legal counsel to
the NFA. Barkoff and his associates have extensive experience in fran-
chise law. The guidelines for use by the NFA, regional associations, and
individual franchisees are:
1 Only the NFA President or Chairman of the Franchisor/Franchisee
Relations Committee can authorize use of the law firm by the NFA.
2 The NFA Board of Directors will prioritize issues for the law firm.
3 Regional Associations and individual franchisees may use Kilpatrick
and Cody, but they will be billed directly for their services.
4 In the event a Regional Association or individual decides to litigate
against Burger King Corporation, Kilpatrick and Cody have been
specifically instructed not to participate in the litigation without the
N.F.A.’s consent. They will be able to recommend other qualified law
firms.
Debut Issue, Spring 1990

35. 33
2008Issue3
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FLAME
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54970 4795 Flame 3 4/4/08 7:12:31 AMI The results of the Automation Program are being investigated. The
program seems to go two steps forward and then three steps back. We
are seeking a report on the programs that had joint funding.
I Procedures under discussion to help franchisees run their restau-
rants better: Menu management, mustard consistency on the hamburg-
er line, micro-waving the Cheeseburger Deluxe, icons on the new BK
DOUBLE cartons, and sauce holders on the new tender boxes.
I A contact person for each association is available to address opera-
tional issues. Contact Craig Cormack’s office at (402) 483-4728 or the
NFA office at (707) 642-7567.
Supply Management/Purchasing:
I The National Market Basket Report continues to be a primary objec-
tive. This report enables franchisees to evaluate current local pricing
compared to other areas of the country. Input for February was excel-
lent with strong support from all regions. The Market Basket Report will
be published monthly and either printed in the Flame or distributed to
each regions purchasing representative.
I A major issue is Category Pricing and how each region’s franchisees
can interfere with their distribution center to assure then that accurate
category pricing is taking place.
I Regions need to focus on the landed cost of each major item coming
into their local distribution center and whether that cost is the best
price the industry has to offer. A good line of communication between
the regional purchasing committee and the general manager of the dis-
tribution center must exist. It is imperative to monitor landed cost and
each distribution center’s markup to ensure effective purchasing.
A list of areas which require legal interpretations is being compiled.
The NFA is also working to establish a legal library for franchisees.
I The two year liability for advertising and lease obligations for the
seller of a franchise, with no ability to cure, needs to be reviewed.
I The Franchisee obligations to keep a low sales restaurant open need
to be defined.
I Electronic transfer, an automatic method of paying rent, royalty and
advertising fees, is currently being tested with a decision expected at
the end of the first quarter. Electronic transfer will be optional.
I Monitor the property tax issue that has developed as a result of the
Pillsbury sale to Grand Met.
I Trying to work closely with Burger King Corporation to ensure fair
and consistent treatment for franchisees in default. Burger King
reserves the right to review each on a case by case basis. Their actions
will be governed by the merits of each case. NFA will continue to moni-
tor this issue.
Insurance:
I Exploring possibility of self insurance by Burger King® franchisees
with the Burger King®
Insurance Trust Fund was started in 1964 by fran-
chisee Bill Spence. All trustees are Burger King®
operators and the
trust is partially self funded. The Burger King®
Insurance Trust Fund
currently insures 3,747 employees of 275 franchisees.
I To assist franchisees in obtaining the best insurance coverage, a spe-
cial insurance section is included in this issue of the Flame. Following
these simple guidelines may make a big difference in you bottom line.
Marketing:
I Communication with Langstaff and marketing staff has improved.
They have been in the field asking for input.
I The new ten month plan outlined by Langstaff shows promise of
being the best long term marketing plan in a decade.
I National Sales trends for January, February and March are encouraging.
I Will continue to press Burger King to make a stronger link between
the customer and the selling proposition; “Sometimes You’ve Gotta
Break The Rules” or abandon the slogan.
Legislative Affairs:
I The uniform franchising laws currently proposed by the Federal
Trade Commission (FTC) would create uniformity in franchise law
across the country. Where state laws are strong in their protection of
franchisees, there is concern that the FTC may weaken the enforce-
ment of these laws. Burger King®
Corporation has asked for a lobbying
effort either for or against this proposal. Our new legal counsel, Rupert
Barkoff, will be closely monitoring this to determine if any action by the
NFA should be taken.
Operations:
I Operational excellence is the primary goal and continued focus.
Every effort will be made to provide valuable input to Burger King
Corporation.
I Efforts to slow or modify the Phase Two (salad, breakfast, and frozen
fries) Equipment Program have been successful. Burger King
Corporation will assure proper research and payout first.
I As Burger King attempts to position itself for the competitive 90’s are
our kitchens prepared to meet the challenge? What is being done to our
current and new kitchens to handle the menu diversification needed to
be competitive? Is it wise to reduce the customer view of the food
preparation area? These questions are being taken to Burger King
Corporate.
Debut Issue, Spring 1990