1. College of Business Administration The University of Texas At El Paso The Franchise Center

2. Franchising is a significant economic activity worldwide

3. American Franchising in the New Millennium Franchising has become an integral part of our society in doing business: The field of franchising contributes in excess of $1 Trillion dollars yearly to the United States Gross Domestic Product There are over 800,000 businesses which are franchises in the U.S., providing 18.2 million jobs and $506.6 billion in payroll in the U.S., contributing more than 11% to the U.S. economy.

4. One of every six people employed in America today are employed in a franchise business. The fastest growth is building and construction, child-related and service businesses. The United States Department of Commerce estimates that by the year 2010 at least one-half of all retail sales in America will come from franchising. A significant number of large America-based businesses such as McDonald’s, General Motors, Holiday Inn, Coca-Cola, which are heavily involved in franchising, are expanding internationally at an ever increasingly rapid rate.

5. Minorities and Women in Franchising Increasing numbers of minorities and women are discovering that franchising can be a good opportunity for everybody. Franchising provides a means for mitigating the traditional obstacles that otherwise competent and capable small investors, particularly women and minorities, face: lack of business experience and capital. Franchisors provide managerial training and assistance on an on-going basis and, in some cases, arrange for property leases, provide equipment financing and sale-leaseback programs, and assist franchisees in obtaining financing.

6. As a result of a strong economy, women are increasingly in leadership positions in franchising whether through establishing new companies, becoming single and multi-unit franchisees, or having high-level positions at corporate headquarters. According to the National Foundation for Women Business Owners, 9.1 million women owned business firms in the U.S. This represented 38 percent of all business, employing over 27.5 million people, and generating over 3.6 trillion in sales.

7. As the population of minorities in the U.S. continues to rise, minority franchising in cities is expected to increase. In addition, some governmental agencies encourage the franchising route for minorities, through programs such as Maryland's Equity Participation Investment Program. The Women’s Franchise Committee (WFC) of the International Franchise Association, which was formed in 1996, serves as a resource for women seeking career growth opportunities in franchising and provides international network opportunities, an annual meeting, and monthly telephone conferences.

8. Economic Impact of Franchised Businesses A Study for the International Franchise Association Educational Foundation. The PricewaterhouseCoopers study published in 2004, states that more than 30,000 El Paso jobs in 2001 were a direct result of franchised business, which accounts for 1,647 establishments within the 16 th US Congressional District.

9. What Happens In Franchised Businesses: Franchised businesses operated 800,000 establishments in the United States in 2001, counting both establishments owned by franchisees and establishments owned by franchisors. They provided ten million jobs, met a $230 billion payroll, and produced $625 billion of output. Hence, franchised businesses accounted for 7.4% of all private sector jobs, 5.0% of all private-sector payrolls, and 3.9% of all private-sector output. Economic Impact of Franchised Businesses in the United States

10. To indicate economic size in a different way, franchise businesses employ about the same number of people in 2001 as did all manufacturers of durable goods, such as computers, cars, trucks, planes, communications equipment, primary metals, wood products, and instruments. Economic Impact of Franchised Businesses in the United States

11. El Paso is Under-Franchised In a recent publication of El Paso Inc, El Pasoans expressed their interest in the following franchises, which are not in El Paso! Bass Pro Shops, Bonefish Grill, Boston Market, Buca di Beppo, California Pizza Kitchen, Claim Jumper Restaurant,

12. La Madeleine, Central Market, Chevy’s, Chuy’s, Freebirds, Gameworks, Lowery’s, Mills Malls, McCormick and Schmick’s, Pappadeaux, Ruth’s Chris Steak House, and Red Robin!

13. The UTEP Franchise Center The Franchise Center at UTEP was created in 1994: To provide training and education to persons in El Paso, Texas interested in becoming franchisees; To encourage more franchisors to consider our city as a location for business opportunity and a source of franchise owners; and, To conduct research on franchise issues.

14. Diana Natalicio, Ph.D., President of The University of Texas at El Paso Dr. Natalicio endorsed The Franchise Center on March 4,1994. Underscoring the importance of TFC, Dr. Natalicio said that 86% of UTEP students come from El Paso County schools. “I see a huge impact for TFC through educational opportunities,” she added. “It is important to be a resource in helping people achieve their dreams and aspirations. Education is the key to potential advancement.” Dr. Natalicio and Carolyn Gough October 2005

15. Charter Sponsors of TFC The 1994 Charter Sponsors of TFC were, standing from left to right – Leonard Goodman III, Goodman Financial Group/John Hancock Financial Services, Richard Pearson, KTSM Television, Richard Mithoff, Mithoff Advertising. Seated left to right – Jon Sonnen, Lauterbach Borshow & Company, Carolyn Gough, and Steve Tredennick, Mayfield and Perrenot.

16. Sponsors and Members Sponsors and Members The Franchise Center’s Charter Sponsors and Franchise Members, 1994

17. The Cardwell Family Endowment was established in 2002 by James A. Cardwell, former Sr., President and CEO of Petro Stopping Centers. Mr. Cardwell was a supporter of TFC’s scholarship program and a winner of two Franchise Center Awards. The Cardwell family is strongly committed to increasing the human and economic well- being of our dynamic and diverse community. The family recognizes that through the innovative programs of TFC, outreach activities help to nurture a suitable environment to develop, advance and transfer proven business practices, and support new business ventures in this increasingly important region. An endowment of $100,000 represents a leadership gift on inestimable long-term value both for UTEP’s College of Business Administration and the continue advancement of entrepreneurial development throughout our community. Cardwell Family Endowment Jack Cardwell, former CEO and President of Petro Stopping Centers, accepts the Marie Kolliker print from Dr. Frank Hoy, in appreciation of his support and dedication to The Franchise Center.

18. Hector Rico Entrepreneur-in-Residence 2006 - 2007 Hector Rico is an El Paso native who attended the El Paso Community College and the University of Texas at El Paso. He began his career in the automotive field as a parts trainee. Over time, he moved into sales and then managed the sales department for Southwest Truck Sales. Hector was selected for the Minority Dealer Development Program with General Motors. That led to his opportunity to open Sunland Park Pontiac-Buick-GMC in El Paso in 1997. He grew that dealership to a ranking of 94 on the Hispanic Business 500 list of the largest Hispanic-owned companies in the United States before selling the business in April, 2005. In addition to being our Entrepreneur-in-Residence, Hector chairs the Advisory Council for the Center for Hispanic Entrepreneurship.

19. The UTEP Franchise Center Two events occurred to encourage Frank Hoy, Dean of the College of Business, to establish The Franchise Center: First, the International Franchise Association formed a committee to encourage franchisors to recruit minority franchisees. El Paso, Texas is a minority-majority city, about 70% Hispanic; therefore, any outreach program we might introduce would attract minority participants. Secondly, it was evident that El Paso was an excellent gateway for franchisors to Latin America.

20. The Franchise Center’s Awards 1995 1995 Coleman Foundation Entrepreneurship Education and Awareness Grant 1996 1996National Recipient of the Outstanding Innovation of the Year Entrepreneurship Education Division of the USASBE - Carolyn P. Gough, Executive Director of The Franchise Center, University of Texas at El Paso

21. 1996 Entrepreneurship Educator of the Year by Inc. Magazine Carolyn P. Gough accepts the Educator of the Year Award from the Kauffman Foundation President, Miche Slaughter.

22. 1998, 1999 and 2000: The Coleman Foundation Scholarship - Carolyn P. Gough Entrepreneurship Educator for the USASBE Conferences1998: Leavey Award for Excellence in Private Enterprise Education from the Freedoms Foundation - Dr. Frank Hoy, visionary the Franchise Center of UTEP

23. 2001 Free Enterprise Award from the International Franchise Association

24. Sidney Feltenstein, Chairman of the International Franchise Association Educational Foundation in 2001 and the 2004 Chairman of the International Franchise Association, presents the Free Enterprise Award to Carolyn P. Gough. February 27, 2001.

25. This was the first time an academic institution became the recipient of this prestigious award. Past recipients of Free Enterprise Award Include:  Andy Ireland, Former Member of Congress, House Committee on Small Business  McDonalds Corporation  Brian Mulroney, Prime Minister of Canada  Maurice H. Stans, Former U.S. Secretary of Commerce  Governor James J. Blanchard, Governor of Michigan Dr. Frank Hoy and Carolyn Gough admire the IFA Free Enterprise Eagle

26. The Coleman Foundation Entrepreneurship Awareness and Education Grant Program, with the establishment of the Secondary Education Entrepreneurial Development Program (SEED). Frank Hoy, professor of management and director of CEDARS, and Carolyn Gough, director of The Franchise Center, were awarded a $50,000 grant from the Coleman Foundation to embark on a new initiative that will prepare high school teachers to develop courses for their students on the basics of owning and running their own businesses.

27. The Secondary Education in Entrepreneurial Development (SEED) ongoing program and forums have presented UTEP’s expertise into the classroom, giving students the basic tools to go into business, from franchising to running a small or family- owned business. Six area El Paso school districts and two private Schools are involved in the program Secondary Education in Entrepreneurial Development (SEED), with the eight school districts of El Paso, Texas enhances higher education opportunities.

28. 2007 Outstanding Workshop Award During the USASBE Conference, held in Lake Buena Vista, Florida, January 11 – 14, 2007, Carolyn Gough and Dr. Frank Hoy were presented the 2007 Rowan University Outstanding Workshop in Entrepreneurship Pedagogy Award. There were 40 workshops presented during the conference. William Edwards, President of Edwards Global Services, Mark Liston, Director of New Franchise Development, Valpak, and Dianne Welsh, University of Tampa were coordinators of the workshop.

29. 2004 Woman of the Year Carolyn Gough, Executive Director of the Franchise Center at UTEP, received the top honor as El Paso Times Woman of the Year. Carolyn Gough, Executive Director of the Franchise Center at UTEP, received the top honor as El Paso Times Woman of the Year. Involved in many fine-arts, business and civic organization, Carolyn was selected for the honor from among 400 nominations. Involved in many fine-arts, business and civic organization, Carolyn was selected for the honor from among 400 nominations.

30. Learning About Our Audience After two or three iterations of the certificate program, it became apparent that we had at least five audiences for university-based education and training: Prospective single-unit franchisees This was our target market. El Paso is a large, but a low income city. We expected there would be residents interested in becoming business owners through franchising, but who may not have the resources for a major investment and who may lack the sophistication necessary to effectively differentiate among franchise opportunities.

31. Learning About Our Audience Prospective multi-unit franchisees We discovered that education was being sought by more affluent individuals and groups, who did have the means to make a large initial investment. This segment included current franchisees wishing to expand or to acquire units of another franchise organization. Prospective franchises An unexpected, but gratifying occurrence was attendance at our workshops by business owners who were interested in franchising their operations. When we launched The Franchise Center, there was only one El Paso-based franchisor. Today there are eight, with all the new ones having come out of our program. We believe this activity is expanding the economic pie for El Paso.

32. Learning About Our Audience Franchisor and franchisee managers Franchise organizations and franchisees who have become members of The Franchise Center have enrolled employees in the certificate program either to enhance their management skills or to groom them for ownership. Consultants to franchises Financial consultants, accountants and members of our sponsoring organizations that have franchisees as clients have attended the program to gain more knowledge about franchising in order to assist their clients better or to expand their practices.

33. The UTEP Franchise Center We measure results in multiple ways: Participants complete evaluation forms after each segment of the program, followed by an overall critique. We subsequently track the careers of the certificate recipients and have records of their involvement in franchising. Some of our proudest accomplishments are those who recognize that franchising is not an opportunity that they want to or perhaps thought to pursue. We feel we have saved them countless dollars and precious time. The volunteers are given copies of the evaluations and typically choose to continue to make presentations at subsequent programs, polishing their delivery based on the feedback. Franchisor members of The Franchise Center regularly send employees through the course. We have also had graduates return for refreshers courses.

34. The Impact and Lessons We Have Learned The Franchise Management Certificate Program has completed 30 classes with 737 graduates. 54% of the participants are Hispanic and 27% are women; Among the graduates, over 250 are negotiating franchise agreements; 67 former UTEP students have completed the program; 65 graduates have purchased franchises; 13 have franchised their businesses; 32 are forging ahead with plans to franchise their operations; and 24 high school students have received their Certificates of Completion! These newly organized franchise businesses should create 2,000+ jobs and generate over $50 million within the year 2008-2009.

35. Franchise Management Certificate Program Graduates Carolyn Gough and John Reynolds, President, IFA Educational Foundation, congratulate Ricky Mercado, President of Red Ribbon Bake Shop, Manila, The Philippines, on graduating from the Franchise Management Certificate Program. Danielle Gutierrez receiving her American Leak Detection Scholarship plaque from Wanda Cost, franchisee of American Leak Detection. Graduate Wendy Cohen is in the background.

36. Participants benefit greatly from innovative, exiting presentations from national franchisors and consultants. Grace Flores, Joe Pratti III and Martha Garcia respond to one of the educational presentations. Franchise Management Certificate Program Graduates

37. Leonard Lidiak, President of State National Bank, presents the scholarship plaque to David Herrera. Carolyn Gough and Mariel Miller, Caliper, present Certificate of Completion to Menos Hatzakis, Greece. Graduates of the Franchise Management Certificate Program

38. Michael Norwich, Jr., President, Odessa Enterprises, Inc., dba Jack- In-The-Box, presents the scholarship plaque to Alfredo Ramirez. John Reynolds, President of the IFA Educational Foundation, presents Certificate of Completion to Jeff Moten,the former Executive Director of the Virginia Union University Franchise Center. Graduates of Franchise Management Certificate Program

39. Carolyn Gough celebrates the graduation of Linda Burzinsky, CEO and President of CM IT Solutions, and Victor Burzinksy. Linda and Victor each received 375 CFE credits! Linda currently serves on The Franchise Center’s National Advisory Council. Larry Glines congratulates graduate John Green, CFE, H&R Block. John received 375 Certified Franchise Executive credits.

40. Dean Hester, Attorney at Law, Ainsa Hutson, LLP, Congratulates Grace and Antonio Flores Frank Hoy with Rodolfo and Graciela Gutierrez Larry Glines, ExxonMobil, Curriculum Coordinator for FMPC with scholarship recipient Angie M. Swans Graduates of Franchise Management Certificate Program

41. Keynote Speakers and Coordinators Karen Spencer, Fran-Systems Worldwide, Inc. and Sidney Feltenstein, Chairman of the International Franchise Association Dr. Frank Hoy, Director of C.E.D.A.R.S., Sidney Feltenstein, former Chairman of the International Franchise Association, and Carolyn Gough, Executive Director of the Franchise Center

42. TWO MEN AND A TRUCK INTERNATIONAL, Inc. Mary Ellen Sheets, Founder and CEO of TWO MEN AND A TRUCK INTERNATIONAL, Inc., receives a gift after her keynote presentation. Her company donates two scholarships per year to the Franchise Management Certificate Program. She also served as board member of the Franchise Center National Advisory Board and became the 2004 International Franchise Association Entrepreneur of the Year

43. October 2005 Keynote Speaker Brig Sorber is currently the vice president of operations, director of licensing and serves on the board of directors for TWO MEN AND A TRUCK INTERNATIONAL, Inc., a local residential and commercial moving company.

44. Keynote Speakers and Coordinators Lawrence J. “Doc” Cohen, franchisee of the Great American Cookie Company and Mrs. Field’s Famous Brands and the new 2006- 2007 IFA Chairman. Doc is with Dean Hester, Attorney at Law, Ainsa Hutson, LLP

45. Keynote Speakers and Coordinators Carolyn Gough, Executive Director of The Franchise Center with Dick Rennick, former Chairman of the IFA and President, CEO of American Leak Detection.

46. Spira Footwear Sponsor of the Franchise Management Certificate Program Craig H. Moore, President of CiCi’s Pizza Enterprises, holds up his new Wave-Spring Spira Yellow Stingers! Craig was the Keynote Speaker for the April 2008 Franchise Management Certificate Program. He hopes to win the 2008 Boston Marathon!

47. Management Certificate Program Classes Alumni celebrate their graduation day

48. The Outcome The outcome of having implemented TFC has been greater than expected.

49. Our affiliate program with the University of Jyvaskyla, Finland, will assist European entrepreneurs with education about Finnish franchising as well as American franchising. Carolyn Gough and Dean Hester are picture with Matti Koiranen, Dean of the School of Business and Economics, University of Jyvaskyla, Finland, Mika Tuunanen after the establishment of the University of Jyvaskyla Franchise Center. University of Jyvaskyla, Finland

50. The establishment of a second affiliate program with the J.J. Strossmayer University, Osijek, Croatia, is advising East European and European entrepreneurs about Croatian franchising as well as American franchising. Carolyn Gough and Dean Hester congratulate Dr. Slavica Singer for the establishment of the J.J. Strossmayer University Franchise Center Mirela Alpeza, Class 22 graduate and Alex Erceg Class 19 graduate, with Carolyn Gough in front of the Osijek, Croatia, Franchise Center J.J. Strossmayer University Osijek, Croatia

51. Pictured with Carolyn Gough is the staff of the J.J. Strossmayer University Franchise Center, Osijek, Croatia: Ann-Marija, Boris Luac, Mirela Alpeza Alex Erceg, Class 19 graduate of the UTEP Franchise Management Certificate Program consults Boris Luac, J.J. Strossmayer University Franchise Center Larry Glines presents Certificate of Completion to Alex Erceg, Osijek, Croatia J.J. Strossmayer University

52. Riverside Community College Riverside, California In May1999, we assist the establishment of the fourth affiliate Franchise Center in Riverside Community College, Riverside, California.

53. The development of a fifth affiliate program with the Sydney Lewis School of Business at Virginia Union University, located in Richmond, Virginia, took place in May 2004. Virginia Union University Richmond, Virginia Carolyn Gough with Dr. Jessica Bailey, former Dean of College of Business and Jeff Moten, former Executive Director of the VUU Franchise Center The Campus of Virginia Union University

54. Amarillo Hispanic Chamber of Commerce Our affiliation with the Amarillo Hispanic Chamber of Commerce, Amarillo, Texas has developed into their flourishing franchise center. The Franchise Management Certificate Program for the Panhandle center has been successfully presented in 2006 -2007.

55. Amarillo Hispanic Chamber of Commerce Zach Lujan. President of the Amarillo Hispanic Chamber of Commerce, Carolyn P. Gough, Executive Director of the Franchise Center, and David Dickerson during the Ribbon Cutting Ceremony, September 2006.

56. College of Charleston and University of Tampa Our newest affiliation is with the College of Charleston, South Carolina. John E. Clarkin, Ph.D. is the Director of The Tate Center for Entrepreneurship. The Franchise Center of the College of Charleston will be working in conjunction with the University of Tampa, Tampa, Florida. Dianne Welsh, Ph.D. will be the new Executive Director of The Franchise Center of the University of Tampa.

57. Long Range Plans The Franchise Center’s long range plans foresee: The development of more minority franchisors and franchisees; the expansion of the Franchise Resource Center and Library; and, collaboration with other United States high schools and universities as well as institutions worldwide to launch similar programs. These cooperative efforts are aimed at strengthening the concept of The Franchise Center through interactions and shared entrepreneurial educational activities.