AKFCF Quarterly - Winter 2017 by Lionheart Publishing Inc.

WINTER 2017

2018 CONVENTION PREVIEW

Are you ready for prime time? AKFCF’s Prime T ime is coming to Anaheim dedicated to our continued success!

Also Inside: Volunteerism • Franchisee Heritage • GAC News

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Cover

WINTER 2017

contents tabl e

2018 AKFCF Convention

2018 CONVENTION PREVIEW

Are you ready for Prime Time? Find out all you need to know about the convention in this special preview issue.

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Are you ready for prime time? AKFCF’s Prime T ime is coming to Anaheim dedicated to our continued success!

Also Inside: Volunteerism • Franchisee Heritage • GAC News

features 16

GAC Report Washington, D.C., Fly-In and Joint Employer Legislation By Mary Donohue

The AKFCF GAC and franchisees descend on Capitol Hill to discuss legislative priorities with members of Congress.

20 AKFCF Prime Time is Coming! By Kelly Rodenberg

Get set for the AKFCF Convention to be held Feb. 21-24, 2018, at the Anaheim Marriott in Anaheim, Calif.

KFC Kindness: A Tradition of Giving By Lori Murray KFC FR A N C H I S E E H E RI TAGE

departments 4 From the Editor By Michelle Hunt

8 President’s Report By Eric Overcash

10 NCAC Report By Tom Slater

12 In the News

19 Minimum Wage Discussion By Michael Saltsman

44 Executive Director Update By Kelly Rodenberg

From helping those in need to volunteering for community

Northwest Regional Short

organizations and giving generously to others, KFC franchisees

By Shannon Prendiville

and others step up to the plate with their philanthropic efforts.

48 Great Lakes Regional Short

Building on a Foundation: KFC Chain of Stewardship Continues from Generation to Generation By Paul Gereffi

A new generation of KFC franchisees carry on the KFC legacy.

By R. Dana Pennell

50 RSCS Member Programs By Heather Pitts

52 KFC NPC Report By David Sparks

54 Legal Update By Ron Gardner 36

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56 Looking Back

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SATISFY YOUR CUSTOMERS’

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The end of an era Official Publication of the Association of Kentucky Fried Chicken Franchisees

6By Michelle Hunt

Last issue, I shared with you that we had requested proposals from our current publisher, as well as several others across the country. I’m happy to share that process is now complete and while we’ve been a loyal client of Lionheart Publishing for more than a decade, we will be moving on to a new publisher in 2018. I want to thank Lionheart Publishing for their partnership over the years and wish them nothing but the best in their future endeavors. Our new partner going forward also hails from the Atlanta area and I can’t wait to introduce them to you over the next few issues. This change also will give us the opportunity to freshen up the image of the Quarterly and make some other changes, so don’t be surprised when the Spring issue looks and feels different than what you currently expect. These are very exciting times, and you’ll be able to meet our new editorial and sales team at the AKFCF Annual Convention in Anaheim, Calif. this February. Speaking of the Convention – our brand’s family reunion – you won’t want to miss this event and we’ve detailed all the

AKFCF QUARTERLY MISSION STATEMENT

The AKFCF Quarterly is the voice of today’s franchisee family and supports the mission of the Association of Kentucky Fried Chicken Franchisees, Inc.

exciting features that will be educational, social and entertaining. In addition, we’re in a prime location with Disneyland and Disney California Adventure within walking distance from our hotel. Also notable are Downtown Disney, Knott’s Berry Farm, and the Anaheim GardenWalk – a shopping, dining and entertainment venue. As a Midwesterner, I’m just excited for California sunshine in February. This issue is sure to get you excited about the convention, but we also have an update from our Government Affairs Committee, a special contribution on minimum wage increases that you’ll find very interesting, features on AKFCF family members who are giving back, as well as a few sharing their histories with the KFC brand. The columns are especially informative, including regional shorts from the Northwest and Great Lakes regions. So, as I said last issue…things are changing, but many things will stay the same. Magazines will continue to be printed, digital magazines created, eNewsletters blasted and relationships cultivated. You make us better. I’m looking forward to visiting with you in Anaheim and partnering to make the next chapter of the AKFCF Quarterly one to remember. On a personal note, it’s hard for me to believe that my oldest has finished his first semester of college on his way to becoming an architect and my youngest is halfway through 8th grade and tearing up the basketball court on two teams while keeping this mom taxi service very busy. From our family to yours, happy holidays! Warm Regards,

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AKFCF EDITORIAL TEAM AKFCF President Eric Overcash Editor Michelle Hunt Assistant Editor Julie Mantlo Editor Emeritus Jeanine Bagshaw Darlene Pfeiffer AKFCF Administrative Director Debbie Newton Communications Chair Kevin Schlutz Past President Greg Atwell The AKFCF Quarterly (ISSN 1071-9873) is published by the Association of Kentucky Fried Chicken Franchisees for its members and their friends. AKFCF is the independent Association of Kentucky Fried Chicken Franchisees. Franchisee Editors: Michelle Hunt 14812 N Avenue, Columbus Junction, IA 52738 Phone: (319) 728-3282 Fax: (319) 728-2940 michelle@centraliowakfc.com Julie Mantlo 855 Lovers Lane, Suite 111, Bowling Green, KY 42103 Phone: (270) 783-8880 julie@rogmancorp.com Zaira Guevara (International Liaison) Pty # 69328, P.O. Box 25207, Miami, FL 33102 Phone: (305) 384-4242 (U.S.) (011) 506 2208-7828 (Direct) zguevara@caribla.com POSTMASTER: Send address changes to Lionheart Publishing, Inc., 1635 Old41 Hwy, Suite 112-361, Kennesaw, GA 30152. Copyright ©2017 AKFCF, Inc. All rights reserved. Articles may be quoted with credit to the source. Information in the AKFCF Quarterly (ISSN 10719873) represents the views of the authors and unless noted otherwise does not necessarily reflect the policies or position of AKFCF, Inc. Acceptance of paid advertising does not imply endorsement by the Association, or approval of the advertiser or its product or service by KFC Corporation. AKFCF ADVERTISING AND EDITORIAL SUPPORT OFFICE

Send all advertising and editorial submissions for AKFCF Quarterly to:

Lionheart Publishing, Inc. 1635 Old41 Hwy, Suite 112-361, Kennesaw, GA 30152USA Toll Free: (888) 303-5639 Phone: (770) 431-0867 • Fax: (770) 432-6969 E-mail: lpi@lionhrtpub.com Web: www.lionheartpub.com President John Llewellyn, ext. 209 llewellyn@lionhrtpub.com Publishing Editor Marty Hohmann marty@lionhrtpub.com Art Director Leslie Proctor leslie@lionhrtpub.com Advertising Sales Sharon Baker, 813-852-9942 sharonb@lionhrtpub.com Reprints Kelly Millwood, ext. 215 kelly@lionhrtpub.com

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Re p o rt

P re s i d e n t ’s

Looking back at the Regionals and ahead to the AKFCF Annual Convention 6By Eric Overcash

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to speak—the AKFCF Annual Convention this February in Anaheim. I hope by the time you are reading this column you will have already registered for the convention, and if you

“

The convention allows all of us to come together as family, share our pride in the brand and celebrate what we have accomplished.

“

From September through November, I had the pleasure of not only attending, but actively participating in, each of the regions’ fall meetings. As your AKFCF president, it is my responsibility to speak at each of these meetings and to share information with the members about my personal history as a KFC franchisee, the value of my family, my experience as an association leader and the goals that I want to accomplish during my term with AKFCF. I won’t lie, it was a crazy few months of travel and time away from my business, yet I found the experience to be an extreme honor and privilege. Not surprisingly, all of you welcomed Diane and me as if we were close family. From the business meetings to the social events, we felt included and right at home. We enjoyed reconnecting with old friends and making new accquaintances. In each regional meeting, new practices were shared, suggestions on how to improve were made, informative discussions were had, and complaints were heard. With several regions coming together for their fall meeting (the Super Regional and the combined SoCal/NW meeting), it allowed them to unite on a larger scale and achieve a stronger voice. I encourage all regions to think about partnering with other regions in the future. Our time together is perhaps our greatest strength. That’s why I am so looking forward to our next chance

haven’t, please do so that you can take advantage of this significant member-only benefit. For anyone who has ever attended, you know that the convention is our Association’s most valued asset. It allows all of us to come together as family, share our pride in the brand and celebrate what we have accomplished in past years. We also get the benefit of hearing from our brand and franchisee leaders about the challenges and opportunities that lie ahead in

the coming months and years. And of course, it wouldn’t be an AKFCF Convention without informative and engaging workshops, keynote speakers, and a couple of really great parties where we can laugh and simply enjoy the pleasure of each other’s company. While we understand that the convention will not provide everything to everyone every year, your AKFCF leadership goes out of its way to offer a little something for everybody. And your yearly participation is important. The convention is the foundation, where we can join as one solid voice to keep moving forward. Large and small, we want to hear your voices. We need you to share information, and through the exchange that happens at this critical meeting, we can all learn how to keep getting better. With the registration cost of only $150, the AKFCF Convention is a tremendous value when you look at the food, beverage, production, education and entertainment we receive. The return on that investment is eight to nine times your cost. It is an experience that you cannot encounter anywhere else in the system. Please take a moment and read the enclosed article on the convention and all that it will offer in Anaheim. It will be complete with fun, education, networking, music and laughter. I will see you all soon in sunny southern California! w ww. akf c f . c o m

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N C AC

Re p o rt

Driving KFC Brand Awareness: An Audience-Relevant, Visually Compelling, Social Savvy Approach 6 By Tom Slater

NCAC Vice-Chair

Dear Fellow Franchisees: From sunscreen to romance novels, KFC is in the news more than ever before. Combined with great advertising and media placement, Edelman Public Relations rounds out our marketing programs. I asked them to put together a brief article about how PR has changed over the years, where they see it going, and how KFC can continue to play a role in popular culture. The article below is very insightful, and I think you’ll enjoy it. I look forward to seeing you all in Anaheim at the AKFCF Convention, but in the meantime, have a wonderful holiday season and a happy New Year. – Tom Slater NCAC Vice Chair Edelman’s relationship with KFC goes back decades when, in the early part of our 60+ year history, our founder Dan Edelman worked side-by-side with Colonel Sanders to broaden brand awareness and connect with core customers. Our work in the last two years as KFC’s communications agency partner has put KFC dead center in a highly competitive news cycle with watercooler and Instagram-worthy content. We bring these award-winning campaigns to life through research, and use our insights to capture public attention and drive business outcomes. Our work is driven by our belief that it must connect with people on an emotional level, tell a story and be rooted in analytics. It is not enough to demand to be heard – we must earn the attention of our audiences, including the media. Brands must tell a story that answers, “So what? Why should I care?” The media business, like many others, has been disrupted by legacy brands “pivoting” from print to digital and building their audience through search and social, making Google and Facebook the most important media brands 10

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in the world. The decreasing number of media outlets, fewer reporters to cover stories and increased FTC regulations around paid endorsements all create barriers for entering the news cycle. Take two recent examples: • Print magazines are slowly making an exit. Condé Nast recently announced that Teen Vogue will move to a digital-only outlet, and the company is reducing the number of monthly print issues for GQ, Allure, Architectural Digest, Condé Nast Traveler, Bon Appétit and W magazines to put more content on digital platforms, reducing 80 jobs across the magazines. In the last year, KFC has earned editorial placement in more than half of these publications. Closures will limit opportunities for print coverage in these high-profile, unexpected places where we have been seeing storytelling traction and widen the coverage scope of less niche publications (and in digitalonly versions of prestige print titles). • Trust in media has rapidly declined. The news media is now seen to be politicized and unable to

meet its reporting obligations due to economic pressures. In the 2017 Edelman Trust Barometer, our 17year proprietary tracking of trust across industries, we found that for the first time ever, consumers cite their peers as credible sources for information about a company as a technical or academic expert. Our collaboration with KFC and partner agencies has helped create significant opportunities amid these unprecedented challenges: • Take an audience-first approach. KFC is a leader in an “audiencefirst” storytelling approach, shifting value from actual “inprint” earned media placements to earned digital coverage, given the impact of search and social to reaching the audience. Broadcast outlets (morning shows, late night monologues) take their cues from social conversation, and targeted, thought-provoking online placements become the rocket fuel to help land those opportunities. As a result, calculating earned social w ww. akf c f . c o m

coverage to measure PR success will become increasingly relevant. • “Fake News” can work in our favor (when wielded responsibly). Representing the brand with the ultimate irreverent chicken salesman has its benefits. KFC’s sense of humor and willingness to experiment with hands-on media experiences and even offbeat news has allowed us to not only align with pop culture, but to create it. It is important that KFC continues to provide opportunities for media influencers and contacts to authentically interact with the brand and product, and report on it in its own way. • Continue to build a community of journalists who are brand evangelists. Building relationships with key “A-List” contacts at news outlets and converting them to “friendlies” is equally as important as building relationships

You Focus on Growing Your Business – We’ll Handle Everything Else

with customers. Starting with the Re-Colonelization effort, we have worked with KFC to cement the media’s trust and build relationships. Transparent storytelling, combined with a touch of humor, has helped win over traditionally harsh media critics. • Create an all-in issues platform. Brands have a deeper opportunity to create digital platforms and forums where issues for which they advocate can be reported and shared. If done correctly, alliances among like-minded brands, local partners and NGOs could bring relevant and useful information to the most engaged audience. Opportunities for KFC exist around issues such as on-the-job training, antibiotic-free chicken, hunger and other KFC Foundation initiatives. • Develop (your own) memorable reading material. With the closing

of print publications, brands can consider developing truly useful printed pieces that a customer or consumer would keep around for reference. After all, what will you read while waiting at the dentist or at the auto repair shop if you don’t feel like perusing your phone? A Colonel Sanders romance novella, perhaps? A good creative idea must be amplified by a sound earned media strategy – you cannot have one without the other. While we tap into super fan audiences and groups of highly passionate consumers, we must also seek ways to continue to make the brand relevant to our target audience and to the news outlets reporting on the brand. Moving into 2018, we will continue to earn attention with creative ideas and multi-channel storytelling, equal to the size of KFC’s ambitious goals and the media’s appetite for shareable content.

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Man Receives KFC Painting for Tweet

“Dreams DO come true.” Mike Edgette tweeted that his dream entailed receiving a painting depicting him riding piggyback on Colonel Sanders against a picturesque mountain landscape, all the while waving a KFC drumstick. Edgette was the man behind the tweet alerting the world to the fact that KFC follows exactly 11 people on Twitter: “5 Spice Girls and 6 guys named Herb.” That is, 11 herbs and spices. As a symbol of thanks for his “genius” discovery, Edgette tells Mashable that he received the artwork and 52 $5 KFC gift cards, as well as a note from the Colonel, as a thank-you from the company. “You’re as crispy as they come,” the Colonel Sanders letter praised Edgette,

calling the painting a “tribute” to him. “I cry a little every time I look at it,” Edgette tells Mashable of his new acquisition, which is now hanging in his living room. “Tears of joy.”

Edgette denies the conspiracy theories circulating that attribute the tweet and painting to a publicity stunt by his PR company. Source: mashable.com

Know Your Acronyms

In our business, there is a great deal of terminology and jargon. As more processes and systems are added, the acronyms continue to pile up. Thus, AKFCF Quarterly decided it is time for us all to brush up on the many acronyms you will hear in your daily lives and read about in this magazine. Be sure to pass this along to your employees, or post a copy in your offices. 76(5P) – 1976(5P) KFC Franchise Agreement AKFCF – Association of Kentucky Fried Chicken Franchisees ABR – Achieving Breakthrough Results ARL – Above Restaurant Leader ASAP – American Showman Asset Program AUM – Assistant Unit Manager BDP – Best Demonstrated Practices BOGO – Buy One Get One BOH – Back-of-house BSC – Balanced Scorecard COB – Chicken on the Bone COGS – Cost of Goods Sold CREST – Consumer Reports on Eating Share Trends CSTM – Customer Service Team Member DMA – Designated Marketing Area FA (Or F/A) – Franchise Agreement FIT – Food Innovation Team FSC – Food Safety Consultation FSTM – Food Service Team Member FTF – Freezer to Fryer GAC – Government Affairs Committee HFFU – Heavy Fast Food Users IAYF – International Association of Yum Franchisees (formerly known as the IAKFCF, International Association of KFC Franchisees) KFCC – Kentucky Fried Chicken Corporation LAC – Local Advertising Council LOR – Loss of Revenue NAC – National Advertising Cooperative (merged with NFAC to become NCAC) NCAC – National Council and Advertising Cooperative

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NFAC NMS NPC NPS OEC PAC POP POS QSR RAF REC RGM RMI ROCC ROI ROMI RRP RSC RSCS SBRA TCB TOL TPWY TRP VOC WAR YUM YRI

– National Franchisee Advisory Council (merged with NAC to become NCAC) – National Marketing Subcommittee – National Purchasing Cooperative (i.e., KFC NPC) – Net Promoter Score – Operations Excellence Committee – Political Action Committee – Point of Purchase – Point of Sale – Quick Serve Restaurant – Refer a Friend – Restaurant Economics Committee – Restaurant General Manager – Restaurant Margin Improvement – Restaurant Operations Compliance Check – Return on Investment – Return on Marketing Investment – Restaurant Ready Process (aka The Model) – Restaurant Support Center – Restaurant Supply Chain Solutions (formerly UFPC) – Supplier Business Relationship Agreement – Technology Capability Builder (the KFCC support team for Merit installations) – Territory Operations Leader – Taking People With You – Targeted Rating Point – Voice of the Customer (formerly CBCC) – Weekly Activities Report – Yum! Brands – Yum! Restaurants International

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YUM! Profits Buoyed by KFC Strength

Yum Brands, Inc. beat Wall Street’s third-quarter profit target as KFC, Taco Bell and Pizza Hut restaurant sales topped expectations, sending shares up nearly 8 percent to a record high in the third quarter of 2017. Strong results at KFC, Yum’s biggest revenue and profit contributor, drove most of the profit upside with robust emerging market sales. Net income from continuing operations nearly doubled to $418 million, or $1.18 per share, helped by the better-than-expected restaurant sales, cost controls and a lower effective tax rate. Yum’s global sales at established restaurants rose 3 percent for the quarter, beating the 1.7 percent gain expected by analysts polled by Consensus Metrix. KFC reported 4 percent overall sales growth for restaurants open at least one year. Emerging markets rose 5 percent, while the United States was up 1 percent. Source: reuters.com

KFC’s Latest Offering: An Internet Escape Pod

With a nod to a simpler time, KFC, ahead of Cyber Monday, offered an exit from the madness of technology overload – an internet escape pod. KFC, which has expanded its product offerings to chickenscented bath bombs and nail polish, offered one lucky KFC fan the opportunity to purchase a $10,000 “Internet Escape Pod.” KFC’s internet escape pod is a steel and foam igloo that blocks all internet signals from “coming to or from your devices.” It’s also designed to “comfortably” fit four adults who have no interest in being bombarded by unwanted emails, social media posts, and even the family members who couldn’t fit inside. “We’ve come up with several technologically advanced, creative experiences for our customers and

CONDOLENCES Darell W. Gillam, 94, of New Port Richey, Fla., formerly of Kokomo, Ind., passed away on Thursday, Oct. 19, 2017. He was born July 20, 1923, the son of the late Elgie and Lola (Lamb) Gillam. He is survived by his wife, Virginia “Ginny” (Specht), whom he married on July 2, 1968, in Joliet, Ill. Gillam became the second franchisee of the late Colonel Harland Sanders’ Kentucky Fried Chicken in 1954 and was elected president of the Indiana Restaurant Association. He also served on the National Advertising Board and the National Franchise Advisory Committee for KFC. He was commissioned an honorary Kentucky Colonel on March 25, 1966, by Gov. Edward T. Breathitt. Gillam is survived by his wife of 49 years, Ginny Gillam; children, Sandra (Tom) Vega, Teresa (John) Streza, Kirk (Julie) Gillam, Sonny (Wanda) Lewis and Shari (Todd) Brittain; 12 grandchildren and 13 great-grandchildren; sister, Norma Jean Hargrave; and three nephews. He was preceded in death by his parents and his son, Doug Gillam. Brady Keys, a former Albany, Ga., fast-food franchise owner and broadcaster, passed away from complications from a stroke in New York, at age 81. Keys was a native of Austin, Texas, and played as a defensive back for eight seasons in the NFL. He owned several Kentucky Fried Chicken restaurants, Burger Kings in southwest Georgia, and WJIZ Radio. He sold his Albany interests and relocated to Orlando in the early 2000s. His Keys Group foundation did much to serve the youth of the Albany area, including sponsoring large holiday basketball tournaments at the Albany Civic Center. In his biography, “Football to Finance,” Keys said 10 bankers turned him down for loans in the 1960s because they feared loaning money to a black man. Keys then approached Steelers’ owner, Art Rooney Sr., who loaned Keys the seed money to start All Pro Fried Chicken. The Keys Group Company was ranked by Black Enterprise magazine as one of the nation’s 100 largest minority-owned businesses over several years. Fred Jeffrey, 83, died Tuesday, Nov. 7, 2017, in Ft. Walton Beach, Fla. He was the former director of purchasing for KFC Corp. and Co-op, former national purchasing director for Campbell Soup Company, a member of Southeast Christian Church and a former board member of Louisville Metro YMCA. He was preceded in death by his son, Detective Brad Jeffrey, in 2016. He is survived by his wife of 67 years, Julie Jeffrey; son, Rick Jeffrey (Doreen); three grandchildren, Michael, Bobby and Megan; and a great-grandson, Kyler.

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fans this year. But even we feel the burden of technology during the holiday season,” explained George Felix, KFC’s director of advertising. “So, we decided to go in the opposite direction and create an anti-technology product, using technology, to help one lucky buyer literally escape the holiday chaos.” The pod features a likeness of Colonel Sanders draped over the top, and the product’s description explains: “This Cyber Monday, let Colonel Sanders’ protective embrace take you back to a simpler time.” The product page notes that a single Internet Escape Pod will be available and “won’t be replenished when sold out.” The site further explains that, upon purchase, a special technician “with a gizmo” will be sent along to help install the pod, in order to make “every effort to ensure it fully blocks your device” from receiving internet signals.

KFC’s Escape Pod is just one of several items the chicken chain made available on its new KFC Ltd. online shopping platform, which launched in July. The collection includes KFCthemed apparel and home goods. Another collection of merchandise is scheduled be made available in early December. Source: foxnews.com

How to Build a Business Culture with Millennials

Millennials will comprise more than one-third of the global workforce by 2020, so it’s important for organizations to understand the needs of this evolving employee base, says a study by ManPower Group. To help uncover key insights on how millennials think and work, Yum! leaders facilitated a panel discussion during Grow Yourself Week. In it, millennial employees provided perspective about what they

were looking for in their careers. Throughout the session, a few key themes emerged among panelists: • Millennials are motivated by challenges in their careers and prefer lots of opportunities to stretch themselves and learn new skills. • Millennials want flexibility and balance. They prefer to work smarter rather than harder, and they want to feel fulfilled in their personal lives. • Millennials value authentic relationships in the workplace and appreciate when a co-worker or manager takes interest in their lives outside of the work environment. • Millennials prefer experiences over things, such as developing a new skill or hobby. • Millennials want meaningful work and want that work to matter. Yum!’s unwavering commitment to creating a culture where everyone counts and can truly grow is part of our mission to build the most loved, trusted and fastest-growing restaurant company in the world. Source: YUM.com

Yum! Brands celebrates 20 years

Yum! Brands is celebrating its 20th anniversary as a publicly traded NYSE company. What started as a subsidiary of PepsiCo has grown into a company whose three iconic global restaurant brands—KFC, Pizza Hut and Taco Bell—lead the chicken, pizza and Mexican categories worldwide. 14

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The brand has nearly 44,000 locations in more than 135 countries. KFC, Yum!’s heritage brand, has continued to introduce new offerings like the now famous Nashville Hot and Georgia Gold recipes. KFC is a global powerhouse that has nearly 21,000 restaurants worldwide. Pizza Hut is making it easier to get a better pizza with nearly 16,500 restaurants. And Taco Bell is a culture-centric, lifestyle brand with more than 6,500 restaurants and a huge opportunity for international expansion. The brand’s growth will continue by transforming to an at least 98 percent franchised model by 2018. Here’s to the next 20 years – the best is yet to come! Source: YUM.com

Bank Robber’s First Stop is KFC

A man who robbed a Florida bank in September took his $10,000 loot to a nearby Kentucky Fried Chicken, according to authorities. Samuel Reaves entered a Wells Fargo branch and told a teller, “This is a robbery. Give me all your money in the bank,” according to police. The teller asked the 32-year-old

Reaves if he wanted a bag, and he said yes and thanked her. Reaves then walked out of the bank and headed straight to a nearby KFC, with the bank employee following close behind. Gainesville police found Reaves at KFC with the money, and he was arrested and taken to Alachua County jail. It was not clear if Reaves ordered any food. Source: nydailynews.com

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GAC REPORT

Washington, D.C., Fly-In and Joint Employer Legislation

By Mary Donohue

Fall 2017 Washington, D.C., Fly-In On Oct. 3-4, 2017, the Association of

the attendees meeting on Capitol Hill to

Franchiseesâ&#x20AC;&#x2122;

participate in an afternoon briefing session

(AKFCF) Government Affairs Committee

with industry professionals. They discussed

(GAC) returned to Washington, D.C., for

issues such as tax reform, minimum wage,

the second time this year to meet with

overtime, joint employer, health care,

members of Congress and to discuss

ethanol and the Renewable Fuel Standard

Fourteen

(RFS) and visited with congressional staff

franchisees attended and visited more

from the House Education and Workforce

than 30 congressional offices.

Committee.

Kentucky

16 16

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The afternoon briefing session serves a few purposes, but most importantly it prepares franchisees for their Hill meetings the following day. Hearing about current events and strategy nuances from industry professionals helps the attendees stay on message. Over the two days, we also hosted four fundraisers for various members of Congress: • Rep. Bradley Byrne (R-AL) • Rep. Pete Sessions (R-TX) • Rep. Henry Cuellar (D-TX) • Rep. Jason Smith (R-MO) These members are important to the AKFCF for a variety of reasons. For example, Rep. Bradley Byrne (R-AL) is the original cosponsor of H.R. 3441, also known as the Joint Employer bill, or the Save Local Business Act, which passed the House on Nov. 7. Rep. Pete Sessions (R-TX) is the chairman of the House Rules Committee, through which every piece of legislation must go to determine which will go to a vote. Rep. Henry Cuellar (D-TX) is a huge supporter of H.R. 3441 and the chairman of the Blue Dogs Coalition, a left-of-center group of free market Democrats. Rep. Jason Smith (R-MO) sits on the House Ways &

Means Committee and was instrumental in rolling out the GOP tax reform plan. During the fundraisers, franchisees had the opportunity to introduce themselves to the members of Congress and share personal anecdotes of how actions on Capitol Hill impact their businesses. The fundraisers are closed to outside parties and only fly-in attendees are present – providing a private environment for frank discussions. Our next Washington, D.C., fly-in is scheduled for March 13-15, 2018. If you are interested in attending, please contact your GAC representative.

Joint Employer Legislation Passes the House On Tuesday, Nov. 7, the U.S. House of Representatives passed H.R. 3441, the Save Local Business Act, by a roll call vote of 242-181. The AKFCF GAC is extremely pleased that the bill passed with such strong bipartisan support and in a timely manner. The bill amends the National Labor Relations Act and the Fair Labor Standards Act of 1938 to provide that a person may be considered a joint employer in relation to an employee only if such person directly, actually and immediately (and not in a limited or indirect manner) exercises significant control over the essential terms and

AKFCF – P o l i t i ca l A c t i o n C o m m i t t e e (PAC) The AKFCF created a Political Action Committee (PAC) to make sure our voices are heard in Washington, D.C. The AKFCF Government Affairs Committee and the AKFCF PAC Board of Directors would like to thank the franchisees listed below for their contributions to the AKFCF PAC. Each quarter, we list the names of the franchisees who have supported the PAC at time of print as a token of our appreciation. This list is all the contributions, broken down by region. We encourage you to please join your fellow franchisees and support your AKFCF PAC. For information on how you can become involved, or if you don’t see your name and should, please contact Ray Aley, treasurer of AKFCF GAC/PAC at (802) 318-4705, or via e-mail at KFCRay@aol.com. Great Lakes William Alford Jr. Bruce Bagshaw Blake Bagshaw Jeanine Bagshaw David Bell Kathy Bouwman Joan Bowling Keith Chambers John Coldwell Brian Denman Alessio DiFranco Anne Goodnight Kirk Gurney Mary Beth Hamilton Robert Holt Lesley Hottinger Theresa Kelly John Kovach George Lambos Craig Lee John Masters Lynn Mayer James McKenzie Diana Myers

Marvin Payne Jordan Anne Phillips Dana Rudoni Shirley Vangeloff Scott Vorrath Brian Wheeler Chad Wheeler Larry Wheeler Robert Widder Northeast Ray Aley III Diane Burns Tony Cameron Robert Carlucci Tom Cecconi Gary Cocolin Keith Cole David Evans Joe Farley Frederick Gallant Michael Houston Donald Lopes Dale Moulton Robert Rianna

Alex Rosenblum David Rudnick Theodore Silver Eugene Skowronski Larry Starkey Matthew Thurston James Waters Northwest Frederick Baker Robert Carle Manuel Galhandro Ralph Harman Brett Harris James Jackson Lisa Kern Joe & Charlene Oleinik Sam Sibert Donald Steinke Todd Stewart Ken & Jane Wall Southeast Marcus Brigance Eric Felker

Austin Felker Sims Johnson Larue Kohl Lynn McSwain Eric Overcash James Ogle Vic Peeples Nicholas Potter Terry Rogers Linda Rosenbalm Fred Ruth Sr. Leslie Sharp Bill & Bonny Shelton Marcus Shelton Jay & Kelly Shoffner Richard West Bill West Steve West Charles “Tim” West Daniel Yagoda Southern California Charles Buckner Shahid Chaudhry Israel Diaz

Piyarali Hashim Russell May Patricia McBrayer Robert Prendiville Southwest Debra Ashmore Richard Cahill Rudy Garcia Rajeev Jain Franklyn Nye Peggy Rasmussen Doyle Sanders Upper Midwest Margaret Duenow Julie Harrigan Holly Helf Michael Kulp Kevin Schlutz Susan Schmidt Doug Smith Gary Tiedeken Pete & Mary Wasilevich

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GAC REP O RT conditions of employment (including hiring employees, discharging employees, determining individual employee rates of pay and benefits, day-to-day supervision of employees, assigning individual work schedules, positions and tasks, and administering employee discipline). The joint employer issue is of concern to KFC franchisees because if the new standard is taken to its logical conclusion, franchisors such as KFC might determine that they will be liable no matter what happens and, as a result, decide to exercise even more control over the day-to-day operations of your independently owned and operated businesses. It would also have the effect of making disgruntled employees potentially more likely to sue, as they may believe they have the deep pocket of the franchisor to chase, and not just the small business owner who employed them. The GAC and federal team are working with a few coalitions and groups in Washington, D.C., to get a Senate companion introduced with the hope of the measure being signed into law next year.

Donate to the PAC

Contributing to the AKFCF Political Action Committee (PAC) is the best way to support the election and

re-election committees of pro-business members of Congress who share the same concerns as franchisees. The money raised in the PAC goes directly to the campaign of those running for Congress or incumbent members seeking re-election. You may make your 2017-2018 AKFCF PAC donation online by visiting our portal on the AKFCF website. For more information, please contact your regional GAC representative or Mary Donohue of Polaris Consulting, LLC (mdonohue@polariswdc.com).

SECURITY. TECHNOLOGY. RELIABILITY

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Minimum Wage Discussion

Increased labor costs mean 2018 will present challenges 6 By Michael Saltsman

As the clock strikes midnight on Dec. 31, more than 30 states and localities will ring in 2018 with a higher minimum wage. In July, more than a dozen additional increases will take place; and in November, voters in Missouri, Michigan and a handful of other states will determine the fate of even more wage hikes at the ballot box. If this flurry of labor cost increases has left you overwhelmed, you’re not alone. The minimum wage has been rising at a pace and to levels which are historically unprecedented. Unfortunately, it’s no longer enough for the service industry to respond to a proposed wage hike with the time-honored answer of, “we can’t afford it.” Without an industry strategy to change the debate on labor costs, the situation will only get worse. Let’s start with some history on the service industry’s present predicament. Starting in 2012, the Service Employees International Union launched a high-profile campaign to organize fast-food employees. The union’s filings with the federal government show it has spent more than $90 million on the campaign since its launch. While the campaign has thus far failed to organize new employees at fast-food restaurants, it has succeeded in normalizing a conversation on a $15 minimum wage. When the so-called Fight for $15 started, economists of all political persuasions warned that a minimum wage of this magnitude was harmful. A University of New Hampshire survey of more than 300 labor economists found that nearly three-quarters opposed $15. Skeptics included Harry Holzer, President Clinton’s top economist at the Labor Department, who called the policy “extremely risky.” Katharine

Abraham, a top economic adviser to President Obama, told one reporter she was “concerned about what a $15 minimum nationwide would do to employment.” Subsequent evidence has borne out these concerns. A study released this year from economists at Harvard Business School and Mathematica Policy Research found an increased rate of restaurant closures in San Francisco associated with that city’s minimum wage experiment. Further up the West Coast, a team of city-funded researchers at the University of Washington found that Seattle’s minimum wage experiment had, on average, failed to boost paychecks for affected workers – with an increase in hourly pay being offset by a loss in work hours. The data on the harm caused by $15 is compelling – but it’s also woefully insufficient to change the debate. The labor advocates and policymakers who are fighting for $15 make their decisions based on ideology, not economic evidence. (One organizer of the Fight for $15 described how the campaign came up with that number: “$10 was too low and $20 was too high, so we landed at $15.”) Meanwhile, the general public has little understanding of or sympathy for the harsh economics of the restaurant industry. In a recent focus group which I moderated, participants guessed that fast-food profit margins were as high as 70 percent. A new conversation about the consequences of labor cost mandates starts by properly identifying the victims of the policy for the public. It’s not corporate fat cats in corner offices – it’s often small, independent business owners who are pillars of their community. The organization

I manage launched a project called Faces of $15 (online at www.FacesOf15.com), collecting more than 100 of these stories from around the country. It’s not just restaurants that bear the brunt of extreme wage hikes; businesses such as day cares, apparel manufacturers and service providers for the disabled are just a few of the varied victims of $15. The victims aren’t just business owners – they’re also the people who are now locked out of the workforce because they’re too expensive to hire and train. Data from the Department of Education shows that 1,000 young adults drop out of school every day, on average. Labor Department data show that the unemployment rate for young high school drop-outs in many metro areas is three to four times higher than the overall unemployment rate. The restaurant industry is the singlelargest employer of Americans without a high school degree; if these first jobs don’t exist, how will less-educated young adults get their next one? There’s no lack of compelling stories to tell, and no shortage of traditional and digital tactical options to distribute these messages to the public. What’s lacking is broad industry support for a new strategy. It has to happen soon: The same logic that justified a $15 minimum wage can just as easily justify a $20 or $25 wage floor. If the industry doesn’t act now, it will find the “we can’t afford it” argument falling on the same deaf ears. Michael Saltsman is managing director at the Employment Policies Institute in Washington, D.C. He can be reached at Saltsman@EPIOnline.org. Win ter 2 017

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ARE YOU R E A DY ?

DEDICATED TO OUR CONTINUED SUCCESS

AKFCF is Coming!

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By Kelly Rodenberg

xcitement is building as we put the final touches on the upcoming season premiere of AKFCF Prime Time. We can’t wait for you to be a part of our studio audience on Feb. 22 as we broadcast live from the magnificent Marquis Ballroom of

the Marriott in sunny Anaheim, Calif. This newly created talk show will feature oneon-one interviews with well-known AKFCF and KFCC personalities discussing current events, brand culture, keys to profitability, steps to success and the trending topics of the day. Plus, a few surprise guests will be making special appearances throughout the program. AKFCF’s Prime Time will offer a wide-ranging mix of interviews, panel discussions

with real-world advice, game show-style fun and several interactive workshops with tips from leading experts at the Disney® Institute, BridgeWorks, and within the KFC Corporate and Franchise arenas. Win ter 2 017 Winter

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ARE YOU R E A DY ? Prime Time in the Media – Connect to See What’s Trending

Over the last few months we have hit the Prime Time campaign trail by announcing spoiler alerts at each of the regional fall meetings, providing articles in the Quarterly and E-News on the Convention and why you should visit fabulous southern California. Every Friday, watch for promotional e-blasts with highlights on specific content, events and guests who will be appearing on Prime Time. And every Monday, you receive an alert on your AKFCF Mobile App with these highlights and special announcements as well. Also look for special announcements from the KFC Leadership Team on TeamKFC. Check us out on Instagram, Facebook and Twitter @AKFCF18 and tag us with #AKFCF18.

The Set - On Location in Anaheim

The Anaheim Marriott is conveniently located on Convention Way in the heart of Orange County. The Anaheim Marriott has recently undergone a major renovation, making it a new and exciting platform that will be perfect for our Prime Time audience. We think the studio audience chairs will be some of the most comfortable you have ever sat in and will include outlets in them for charging. All of the meeting space for our programming,

events and meals are on one floor, making it very easy to navigate the show site. The AKFCF will also be the only large group in house, so you can easily network with friends and colleagues over a meal or drinks. The Marriott is just steps away to the newly built Anaheim Convention Center. The design of the existing facility drew inspiration from ocean waves and the California coastline, and the bark of the palm tree is communicated with the use of warm materials and natural daylight, providing a pleasant and comfortable experience for all guests.

Up Close and Personal with Our Vendor Partners and Sponsors Welcome Reception and Exhibitor Showcase Anaheim Convention Center Thursday, Feb. 22 5:30 p.m. – 8:30 p.m. It all starts here at the AKFCF’s Welcome Reception! It is where franchisees, corporate partners and vendors of the KFC family meet and network in a high-energy, yet casual, atmosphere. This highly anticipated first networking function of the AKFCF Convention is always a memorable event. Stroll through the aisles to discover this year’s showcase of cuttingedge products and services. Take full advantage of everything the trade show has to offer by prospecting for new vendors, catching up with current business partners, and viewing demonstrations of the latest creations. Just steps from the Marriott, the Anaheim Convention Center is the home of this must-attend party providing you with the opportunity to interact with colleagues and make new acquaintances while enjoying fine food, beverages and entertainment.

BUCKETS OF SUPPORT.

Exhibitor Showcase and Lunch Friday, Feb. 23 11:30 a.m. – 1:30 p.m. Make the short walk to the Anaheim Convention Center to join your supplier partners for lunch in the trade show and show your support for their participation.

Tyson Foods is here for you with our extensive breadth of resources, including customer support and a commitment to quality–buckets full. ©2017 Tyson Foods, Inc. Trademarks and registered trademarks are owned by Tyson Foods, Inc. or its subsidiaries.

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Exhibitor Showcase and Lunch Saturday, Feb. 24 11:30 A.M. – 1:30 P.M. Take advantage of this last opportunity to visit with your supplier partners over lunch. Two hours are provided for you to discover the best new products and services available. From new ways to boost your social media presence, to food delivery made easy, to interactive recruitment and digital vendor ordering, these companies aim to make everything in your restaurant world as efficient and simple as possible. w ww. akf c f . c o m

LIGHTS , C A MER A , ACTION ! AKFCF Prime Time Announces Special Guest Speaker Jabez LeBret

Generational and leadership authority Jabez LeBret will appear on Friday, Feb. 23, to present the keynote address, “Using Contribution Leadership to Drive Profitability and Increase Sales.” LeBret is a business writer for Forbes CMO network, NBC Chicago, and several international publications, and is co-founder of the nation’s fastest-growing legal professional services company, GNGF. Having delivered thousands of presentations in all 50 states and across the world in locales ranging from Argentina to Saudi Arabia, LeBret’s Contribution Leadership presentations have impacted companies as diverse as Aramark, Bank of America, Boeing, Nordstrom, Deloitte, and more. “As organizations grow, we are finding a larger gap in the generations, and this gap is causing some communication challenges,” LeBret says. “With larger companies in the apparel and textile space, among others, consolidating and increasing their market share, it is crucial that every team — no matter how small or how large – be as efficient and effective as possible. I’ll provide tools to take teams to the next level in a no-fluff presentation offering actionable steps that can be implemented immediately.” This keynote presentation is perfect for any level of your organization, from front line employee to restaurant owner. LeBret will teach the power of contribution leadership, the act of contributing to the success of those around you through communication and action. After this keynote address, you and your employees will be more engaged with your teams, have increased ability to deliver exceptional customer service, and have the ability to drive your business to the next level with fewer resources. You’ll learn how to: • Produce more with improved communication in your teams • Create a collaborative work environment that fosters creativity and growth • Build a culture of ownership and accountability.

The heart of what we do is care for KFC® Restaurant employees.

Thank you for the love! With 95% of the system choosing to support the KFC Foundation’s

Reserve your hotel room by Jan. 22 to receive the group rate of $199. Online at https://aws.passkey.com/go/AKFCF2018, or call 877-622-3056 and advise that you are attending the AKFCF 2018 Convention. Don’t wait! Book your room today. Register at www.akfcf.com.

charitable work in 2018, now more than ever, we’re all family.

See you at the Convention in Anaheim! KFCFoundation.org All charitable programs are available to all eligible employees at participating restaurants.

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ARE YOU R E A DY ? Stay Tuned for these Significant Workshops

Thursday, Feb. 22

2 p.m. – 3 p.m., 3:15 p.m. – 4:15 p.m.; 4:30 p.m. – 5:30 p.m. How to Bring the Magic of Disney® Wednesday, Feb. 21 3 p.m. – 4 p.m. and 4:15 p.m. – 5:15 p.m. Alive in your Restaurant Keep Profits in Your Pocket: Technology & Where does all that Disney® Tips to Reduce Employee Manipulation Magic actually come from? Since Did you know that seven percent of we are in Anaheim, let’s discover sales in the QSR industry are lost to the secrets to Disney’s® Customer employee manipulation? We all want to Service that they use each day. keep this problem from occurring in KFC Learn how to maximize the restaurants. Learn how KFCC and other benefits of a magical customer franchisees are finding and deterring experience in your restaurants manipulation in their organizations. Also, hear from and grow, both professionally Doug Lipp our loss prevention vendor partners about best practices and personally. and success routines for their specific product and tools. How has Disney® managed to keep its employees and customers so fiercely devoted to the brand? How Getting the MOST from has it managed to continually top the charts as one of the world’s most beloved brands? How can you learn Your RSCS Ownership from its practices to catapult your restaurant’s service Learn about all the ways that your RSCS can help you. Are strategies to even higher levels? you utilizing all the tools that Through Doug Lipp’s leadership experience at the RSCS has that can save the helm of training at Disney® University, he offers answers to these questions. He also shares fascinating you money? This workshop will review all these tools stories, unique insights and invaluable lessons that can that can help you make your business more profitable. assist your organization in finding and mastering its own special brand of magic. Learn the four components that are at the heart of Disney® University: Innovate. Support. Educate. Entertain. Discover how legendary service is The KFC Corporate Recommended & Fully a delicate balance between art and science. “Doing the ordinary in an Supported Managed the staff will play Video Solution extraordinary fashion” isn’t rocket Safeguard your assets and profitability across your stores it’s business asincrease usual science; customer service excellence with our franchisee-tested and fully supported managed video and must be ingrained throughout loss prevention services. Protect your business, and your profits, Protect your business with a your culture. In this ever-changing with the only managed video solution recommended and fully video solution that works for you. economy, more companies than ever supported by KFC Corporate. are realizing the strategic importance  1 The only managed video solution of transforming their service culture provider endorsed by KFC Corporate to differentiate themselves from as a part of the recommended Loss competitors. Prevention Suite What’s your  RThe only managed video solution that magic? How seamlessly integrates with Delaget Network Corporate New Low can you create Guard, ODS, and Parapet Overseer Friendly Approved Pricing a culture of significance? Get  UCheaper than ever to get started with Our managed video Envysion is the only We are now offering ready to come HD Analog compatibility. Reuse solution is approved KFCyour Corporate discounted rates existing analog cabling! to the edge of to sit on the YUM! Approved & Supported negotiated specifically your seats as Merit Network. video provider. for KFC Franchisees! you discover Ask us about our discounted rates this, and more, during this thoughtprovoking and powerful presentation forvideo. KFC operators Make your dataexclusively meaningful with brought to you by customer service Learn how at envysion.com | 877.258.9441 envysion.com | 877.258.9441 keynote speaker, Doug Lipp.

When boss Best the of Breed is away

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Hire Top Talent and Create a Culture Where Great People Stay Hiring top talent in a competitive market is tough and keeping them feels impossible. Luckily, we have tools that can help you hire high performers, get them started off right, and keep them with a culture they won’t find anywhere else. Join us for an interactive session to explore these tools – including KFC’s new Team Member Onboarding program – and tips that have helped KFCC and franchisees hire, onboard and retain top talent. Ops Efficiencies for Increased Sales & Profits: The Ins and Outs of Labor Scheduling in MERIT Investing time and resources into the most efficient labor and scheduling can help keep your guests happy and positively impact sales and profits. Learn the ins and outs of creating and running a great schedule using MERIT. Specifically, discover how labor is earned and calculated, and how to maximize each daypart. We’ll also cover how to identify common areas of opportunity on most schedules. Hear from KFC Operations and franchise leaders on how we’re simplifying processes and using technology to make operations more efficient.

Saturday, Feb. 24

8 a.m. – 9:45 a.m. AKFCF Legal Update – NEW TIME and FORMAT As the Brand Turnaround continues, we have hit a few bumps in the road. Since last convention, we have had new leadership, changed emphasis, and seen a continuation of restaurant consolidation. Fortunately, over its long history, the AKFCF has provided access to top-flight franchise counsel to help answer your legal questions about these changes and anything else you need to know about your relationship with KFCC. AKFCF General Counsel Ron Gardner will provide a thorough legal update to all franchisees in one “town hall” setting, with ample time for questions after the presentation. 1:30 p.m. – 3:15 p.m. Bridging the Generational Gaps This exciting workshop will help you understand how to bridge the generational gaps that exist in our KFC restaurants. What works for one generation often may be of little interest to another. How do we connect the dots between these generations? Four distinct generations are working together shoulder to shoulder, each with a unique set of attitudes, values and work styles.

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ARE YOU R E A DY ? It used to be that older workers were bosses and younger ones took orders. Now, roles are all over the board and rules are being rewritten. Organizations are feeling the pain of generations as they struggle to manage productivity and morale while maintaining high standards of quality and service in a challenging economy. When Generations Connect demonstrates not only why it’s important to understand what shaped the generations, but why they behave the way they do. Find out how generation gaps hit the bottom line. Learn what to do about the approaching talent gap, grasp the keys to retaining the generations you need most and discover how to convert this form of diversity from an obstacle into an opportunity. Learn how working with all generations can benefit your restaurant. A proud Xer, Scott Zimmer is one of BridgeWorks’ speakers and generational experts. He crafts presentations to clearly illustrate the stress points between generations, and he seeks to provide straightforward solutions to help relieve tension and encourage better understanding and collaboration across generational divides. With 15 years of public speaking experience, Scott has developed a uniquely personable style and uses insight, humor and data to foster an environment where every generation feels valued and understood. A child of the ’80s and ’90s, Scott has insider knowledge into what makes his generation tick. Along with the other Xers at BridgeWorks, Scott’s love of nostalgia, including Atari and He-Man, knows no bounds. 3:30 p.m. – 4:30 p.m. Listen and Learn from Our Best Have you ever wondered how an RGM is able to create a team that helps them shine in all areas of the KFC business and become a Best of the Best RGM? What does it take to earn this fantastic distinction? Listen to several of our Best of the Best RGM’s share their secrets to success in this exciting panel discussion.

Off-Air Time

During non-show hours we invite you to spend quality networking time with friends and colleagues on the golf course, packing and sorting food at the Orange County Food Bank, mingling over drinks at the receptions and dancing to some of music’s top artists.

Wednesday, Feb. 21

Ray Zimmerer Memorial Golf Tournament 6:30 a.m. – 3:00 p.m. Tustin Ranch Golf Club Tustin Ranch Golf Club is a first class, picturesque facility secluded within the community of Tustin, Calif. This Ted Robinson-designed golf course takes great pride in its rich 26

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history. It has often been recognized as the best Orange County golf course. This resort-style 18-hole course presents a challenge to skilled golfers while delivering a fun, relaxed outing for all. The tournament is limited to 144 players. The registration deadline is Jan. 22. Community Service Event 1:00 p.m. – 4:00 p.m. Orange County Food Bank Donate your time to help end hunger in the local area while in Anaheim. Volunteers will work side-by-side in assembly line fashion, to the beat of music sorting and packing food boxes that are distributed to more than 24,000 hungry seniors in Orange County. Without volunteer assistance, the food bank would not be able to provide this vital service. Join your KFC family for an afternoon of giving back.

Friday, Feb. 23

California Dreamin’ Celebration 6:30 p.m. – 10:00 p.m. Celebrate our continued success with us as we sip California wines, savor farm-to-table food, and attend a private concert with the Grammy Award-winning superstar sibling trio The Band Perry.

Saturday, Feb. 24

Picnic Party in the Plaza 6:30 p.m. – 9:30 p.m. We’re keeping it casual and fun as we close out the last night of the Convention. Enjoy a catered KFC picnic-style dinner from two of our Southern California franchises, live music, and other entertaining activities outside on the plaza under the stars. It will be a fun night. Are you ready for Prime Time now? See you all in Anaheim. w ww. akf c f . c o m

Together, We Can Build a Showman.

With the compelling “American

Showman” design rolling out all across the country, a bold new direction has come your way.

Why not take a fresh new direction of your own –

let’s talk® financing

with a financing partner who may offer you better terms? Pacific Premier Franchise Capital offers:

• Experience: We’ve helped hundreds of franchisees across the country grow their companies with competitive capital options. • Flexibility: Offering up to 100% financing, as well as terms of up to 10 years. • Reliability: Efficient three-part funding process – enhanced by competitive rates and structures. • Relationships: Providing an ongoing dialogue to support the financing needs of your current and future business.

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ARE YOU R E A DY ?

DEDICATED TO OUR CONTINUED SUCCESS

MU S I C A L G U E S T P E R F OR M AN C E S Friday, Feb. 23

Grammy® Aw a r d - w i n ning superstar sibling trio The Band Perry are an unstoppable presence on the modern music scene. Since the release of their 2010 platinum-selling self-titled debut album, The Band Perry have vaulted 10 hit singles into the Top 10 of Billboard’s Country and Hot AC charts. Among them are the sextuple-platinum charttopper “If I Die Young” (whose video is now Vevo-certified for reaching 100 million plays) and the platinum-selling hits “You Lie” and “All Your Life”. Upon the release of their second album, Pioneer, the band saw the smash singles “Better Dig Two” and “DONE” ascend to the chart summit as well. In total, the band have sold nearly 13 million singles and 2.5 million albums to date. In February 2015, The Band Perry won their first Grammy® Award for Best Country Duo/Group Performance and have earned numerous awards from all corners of the music industry. They were named ambassadors for Teen Cancer America (a charity founded by The Who’s Roger Daltrey), and their single “Live Forever” was

the official song of Team USA at the 2016 Summer Olympics in Rio. After a hugely successful spring/summer 2017 concert tour, The Band Perry have returned to the recording studio to create the music for their next album, due in early 2018. Consistently praised for their ability to reinvent themselves musically and visually, current anticipation for the band’s new music is high from fans and industry alike. The AKFCF is thrilled to host a performance by The Band Perry before they release their next album and embark on a new tour.

ALLSTARS Saturday, Feb. 24

We invite you to sing and dance under the stars on Saturday night with The LA ALLSTARS BAND! They have performed for major corporations such as IBM, Google, Bank of America, Sundance Film Festival, American Airlines, Toyota, Warner Bros. Studios and McDonald’s. They cover many styles, ranging from today’s current hits to classic rock, R&B and Motown to disco, standard jazz and swing. Their vast song list will have you on your feet, singing along to your favorite tunes no matter the genre. Their fresh, hip-edgy vibe paired with a contemporary approach will provide a unique and memorable experience on our final night in Anaheim.

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And Now a Word from our Sponsors Special Thanks to our Preferred Partners

Thank you to all of our sponsors that have generously partnered with us to date. * DIAMOND PepsiCo PLATINUM Pilgrimâ&#x20AC;&#x2122;s GOLD Aryzta Dr Pepper Ecolab Kagome McLane O.K. Foods Wells Fargo

SILVER Bunge Delaget East Balt Bakeries FSV Payment Systems Georges Inc. Henny Penny Koch Foods, Inc. RTI Tyson Foods, Inc. Winston/Collectramatic BRONZE Accuserv

Anchor Packaging Bama Companies, Inc Barco Uniforms Cafe Valley Bakery Dart Container Corporation Del Monte Foods Facility Concepts Flowers Bakeries Genpak Georgia Pacific Griffith Foods Gycor International Hyginix InfoSync Services

InterMetro International Paper McCormick & Co., Inc. Mspark MultiSite LED PAR Parapet Studios Procter & Gamble RJP Consulting Group Simmons Foods Tetley Harris The Hershey Company WestRock *These are the confirmed sponsors at the time of printing and are subject to change

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K F C IN TH E C O M M U N I T Y

A Tradition of Giving

KFC Kindness:

By Lori Murray

tâ&#x20AC;&#x2122;s time, once again, for an update on the altruistic activities of some KFC franchisees and other individuals associated with the KFC brand. KFC has a tradition of givingâ&#x20AC;&#x201D;one that was instilled by the Colonel so many years ago. That tradition continues today, and it would be remiss not to recognize the caring actions of so many. From helping those in need, to volunteering for community organizations and giving generously to others, the individuals featured in this article are stepping up to the plate with their philanthropic efforts. We applaud them for their efforts and thank them for their time and dedication. And we hope you will be inspired by their heartwarming stories. 30

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The $1,500 scholarship is called The Colonel’s Community Scholarship as a tribute to Colonel Sanders and his spirit of giving. It will provide Avery with access to classes at The Collective, including everything from private lessons to workshops. It should be noted that while every student at the school is eligible to participate in recitals, only the top performers are selected for the Special Performance Group, which allows them to take part in the large community performances for people in the area. As already mentioned, Cole is a big music lover, and he’s been playing the guitar in various bands since he was 15 years old. “I’ve always had a soft spot for the local music scene around here,” he said. “When my daughter got interested, I knew I could pass the baton. And then, when I saw the first show, I was blown away. If people would come to see these shows, they are absolutely stunning. It’s like being at a live concert.” Next year Cole hopes to sponsor two students. “I couldn’t be happier with how this went our first year, and I am planning to do it again next year,” he said. Cole would like to see more young people benefit from the school’s high-quality music education programs and high-impact performances.

Ron Gardner – AKFCF General Counsel

Keith Cole, who donated the Colonel’s Community Scholarship for a student to attend the Uptown Music Collective, is pictured with the recipient, Gage Avery.

Ron Gardner is a busy guy. As managing partner of Dady & Gardner, P.A. in the Greater Minneapolis-St. Paul area, he represents franchisees, dealers, distributors and the trade associations for these types of clients. He is general counsel for the AKFCF, representing the

Keith Cole – Kokolas Management

Keith Cole has always loved music. In fact, he’s been playing in bands his entire life. So when he decided to get involved with something in the community, his mind immediately turned to The Uptown Music Collective, a nonprofit school of music located in Williamsport, Pa. He called the director of the school to say that he wanted to fund a full-year merit scholarship for one of the students. The recipient of that scholarship turned out to be Gage Avery, a talented, hardworking high school senior with a passion for music. Cole, who’s been with KFC for 35 years, started as a cook, and is currently a franchisee. He also serves as AKFCF treasurer. One of his restaurants is located in Williamsport where the school is located. As it turns out, Cole’s daughter attends The Collective and has participated in the school’s large music productions that take place four times a year at the local community arts center. The shows are a huge success and a testament to the quality programming offered at what many now refer to as “the school of rock.”

Ron Gardner, right, volunteers for the Northfield (Minn.) Historical Society at the historic First National Bank of Northfield. Win ter 2 017

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K F C IN TH E C O M M U N I T Y association and its regions. His work takes him all over the North American continent. Despite the demands of his job, Gardner clears time in his schedule for three philanthropic endeavors. First, he volunteers for the Children’s Law Center in Minnesota, donating his time to represent children who are wards of the state in court proceedings. These are children who do not have an advocate and may be facing issues related to adoption, housing, education or medical assistance, for instance. But Gardner doesn’t stop there. He also works with the North American Securities Administrator Association,

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an organization of state regulators who oversee the sale of securities and franchises for the state. He is part of a small committee of private practitioners who volunteer their time to conduct seminars and workshops for the regulators. Finally, Gardner volunteers with the Northfield Historical Society in his hometown of Northfield, Minn. Northfield is the town where the Jesse James Gang came to an end when the local townspeople fought back against the legendary outlaws. The historic First National Bank of Northfield site commemorates the place where this occurred and has been restored to its 1876 appearance. Gardner is not only vice chair of the Northfield Historical Society, which includes the museum and gift shop, but he also serves on the board that oversees it. Every year the community celebrates the Defeat of Jesse James Days, a threeday event during which the population of Northfield swells from 20,000 to almost a half-million people. Gardner is also a member of the posse of adult volunteers and high school students who conduct tours of the bank. As head of the posse, he also recruits and schedules the tours, which attract people from all over the world who are fascinated by the drama that took place in this small Midwestern town. Today, if you ask Gardner why he carves time from his busy schedule for volunteering, he refers to his childhood and the fact that he grew up very poor. “I knew when I went to law school that I wanted to do high-stakes complex litigation, but that I would never fit into a stuffy law firm that represented large corporations, because it did not fit my values,” he explained. “When I got this job, it pushed all my buttons. I needed to do something important and worthwhile, and my work is extremely important to the people I do it for.” The same can be said for his philanthropic endeavors.

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Brett Harris – KFC Montana

As general manager for KFC Montana, Brett Harris is very involved with the operations of the organization. So when they opened a new store in Great Falls about two years ago, he and some other individuals decided they needed a way to reward the town during the grand opening. Many of w ww. akf c f . c o m

the employees suggested doing something to help a local nonprofit. The idea resonated with everyone, and they chose the Boys and Girls Club of Cascade County. “The Boys and Girls Club serves the kids of the working poor—the people who are really trying,” Harris explained. “So we started a partnership with them, and we gave them PGP_FA22802_AKFCFQuarterly_Fall_PrintAd_hi.pdf 1 8/17/17 25 percent of our grand opening day sales (about $3,000).

Since then, we’ve continued to partner with them.” That partnership now takes on many different forms. First, because KFC Montana is the franchisor, they can make KFC commercials. In doing so, they are able to highlight the Boys and Girls Club in their advertising. In fact, just about every piece of advertising they produce 2:06 PM also features the Boys and Girls Club logo.

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K F C I N T H E C OM M U N I T Y This past summer they sponsored the final regular season game of the Great Falls Voyagers, the local Minor League baseball team. About 100 of the kids attended the game as guests of KFC Montana. Once they covered the profit for the team, half of all ticket sales went to the Boys and Girls Club. Every person who purchased a ticket received a free entry into the drawing sponsored by a local auto dealership for an automobile. Throughout the game, they sold extra chances for the car drawing. The result was $8,000 raised for the Boys and Girls Club of Cascade County. Two weeks later, KFC Montana sponsored another Boys and Girls Club fundraiser known as Dueling Pianos, an event that features two piano players who solicit the crowd to donate money to have a song played. Not only did KFC Montana sponsor two tables at the event, but through their advertising efforts they were able to successfully raise about $12,000 for the Boys and Girls Club. “They are so appreciative and wonderful to work with,” Harris said about the organization. “We continue advertising for their brand to keep the awareness up, and people are now starting to associate us with one another.” As for the future, Harris anticipates more of the same. KFC Montana will sponsor another baseball game next year, as well as the dueling pianos event. Beyond that, Harris added, “We will just figure out how we can help them throughout the year.”

Great American Chicken Corporation

Lenzie Davis, HR specialist for the Great American Chicken Corporation (GACC) in southern California, says that volunteering is part of the franchisee’s DNA and culture. So it’s no surprise that when a host of natural disasters struck parts of the United States and Mexico earlier this year, they quickly sprang into action. Partnering with the Los Angeles Regional Food Bank, GACC employees and members of the Operations Leadership team consisting of nine area coaches, three directors and the CEO, put together care packages for the victims of Hurricanes Harvey and Irma in Texas and Florida. They rolled up their sleeves, and in just three hours, created 2,800 packages of canned and dry food goods. Shortly after the hurricanes, Mexico City experienced a series of earthquakes, which triggered another community effort that involved teaming with another nonprofit in the Los Angeles area. “The majority of our demographics are Spanish-speaking people from Mexico, and many of our employees have families there,” Davis said. “We rallied with the employees, and they donated $5,735.24.” Additionally, they positioned donation bins throughout the stores to collect toiletries, canned goods, water and other items as a separate effort, keeping in mind that the client base is primarily from Mexico as well. Efforts like these will continue whenever there is a need, according to Davis. “Whenever we do things like this, people recognize it and want to support it,” Davis explained. “Our customers were thankful that we were doing something about it.” In fact, GACC plans community events every year as a time when they can engage in a collective effort. And when something happens that requires the employees to step up, they kick it into high gear. None of this would be possible, however, without the ongoing support of the leadership team, including COO Bastel Zamani, CFO Raziel Valiente and CEO Aryeh Aslan. “Our CEO makes sure that all of these things are ultimately carried out, and the other CACC CFO Raziel Valiant and GACC COO Bastel Zamani 34

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The Great American Chicken Corp. in southern California this year partnered with the Los Angeles Food Bank to produce care packages for victims of Hurricanes Harvey and Irma, as well as the earthquakes in Mexico.

two lead and direct it. They are a team,” Davis said. “When everyone is on the same page, you can really make an impact.”

Lisa Buller – LP Buller LLC

New bikes and Christmas go hand in hand. Maybe that’s because nothing delights a child more than a shiny, new bicycle under the Christmas tree. Many years ago the late Phil Buller, a KFC franchisee in Enid, Okla., recognized this and started buying bikes for foster kids. They called him the Bike Santa, and every year he purchased, assembled and delivered the bikes to the Department of Human Services (DHS) in Garfield County, Okla. Some years he donated anywhere from 60 to 80 tricycles and bicycles. After Phil passed away in June 2016, his wife, Lisa, who is now the franchisee, continued the tradition, with the help of her children, some of the employees, and Chad Pasby, longtime director of operations for LP Buller LLC. “Phil started donating the bikes in 1987 in memory of his dad who passed away that year,” she said. “His dad loved Christmas, and he loved children. Phil had a passion for Christmas, too.” The bicycles, which are purchased at the local Walmart, now come assembled, so they are loaded on trailers and delivered to the facility for the annual Christmas party with the kids. The bikes and other presents are there for the children when their foster parents bring them to the party. This year Buller will be buying bikes for about 24 kids, although she said the number usually grows as it gets closer to the holiday. The bikes are purchased based on a list from DHS which includes the ages and sex of the children. “Every child who wants a bike can get a bike,” Buller explained. A

letter is sent to the foster families, and it includes a list of gift items. The children are allowed to pick two items, and the Bike Santa is always on the list. Buller’s four children, and now her three-year-old granddaughter, help with the bike purchasing and delivery as well. It’s always been a family affair. “Phil really didn’t want recognition for this,” Buller said. “It was just something he wanted to do.”

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K F C FRAN C H I S E E H E R I TAG E

Building on a Foundation:

KFC Chain of Stewardship Continues from Generation to Generation

By Paul Gereffi

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he KFC brand remains a valuable commodity and like any precious keepsake, it is often handed down from generation to generation. For many entrepreneurs, the ability to pass along a successful business to family members is the ultimate reward for years of hard work. To observe others building on the foundation created by those who went before is truly the culmination of a successful career. For those who choose to carry on the KFC legacy, the result is a renewed optimism and enthusiasm for continuing the legend first started by Colonel Harland Sanders himself. For them, the chain of stewardship of the KFC brand continues unbroken, and the potential for yet another generation to become successful remains a great possibility. For these franchisees and the KFC brand, the future seems unlimited.

Kelli Spring Shiprock, N.M. On March 6, 1969, the KFC Shiprock, located in the small town of Shiprock, N.M., opened its doors on the Navajo Reservation. Owners Mercedes and Doyle Hill loved serving the community and the Navajo people. During their ownership, they received numerous awards and recognition from KFC and the community for service and dedication to their employees and the local population. Shiprock is a community of about 8,000 people in northwestern New Mexico and is nearly 97 percent Native American, according to the latest U.S. Census. The community is named after the nearby Shiprock rock formation. It also is home to the annual Northern Navajo Fair held each October. In 1991, 22 years after the original facility was built, the Hills decided to redo the restaurant and began to rebuild. Over the years, they involved their children and grandchildren in the family business. Their daughter, Sheila Boespflug, helped her parents run the family business for 40 years as the Above Restaurant Leader. In 2011, after both Mercedes and Doyle had passed on, Sheila inherited the family business. The restaurant has been remodeled several times throughout its history. KFC Shiprock employs about 35 people from the local area, most from the Navajo background. They also enthusiastically support the local

Mercedes Hill and Sheila Boespflug

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K F C FRAN C H I S E E H E R I TAG E high school and surrounding schools in their respective athletic programs. In particular, Doyle Hill consistently supported the 4H/FFA program in the community and his daughter Sheila has continued that tradition over the years, buying animals at the local Shiprock Fair Sales from the youth. In 2007, Sheila’s daughter, Kelli Spring, moved back home to Shiprock from Utah to help her mother run the business. Sheila was busy taking care of her elderly mother, as well as trying to run the family business. Sheila worked in the store until 2016, at which time she retired and now spends time with great grandkids, doing crafts, and otherwise enjoying life. Currently, Kelli is the Above Restaurant Leader for KFC, HILL Enterprises Inc. of Shiprock N.M., making her the third generation in the family KFC business. “Our family was built on strong moral values, integrity, honesty and hard work,” says Kelli. “We had a great example by following in the footsteps of one of the greatest ladies we know, our wonderful mother and grandmother, Mercedes Hill.” The restaurant remains a very important part of the Shiprock community they serve. Kelli adds that the restaurant tailors its operations to best serve their local demographic. This includes giving employees time off for traditions and ceremonies. “We enjoy working with the community,” Kelli says. “We are very respectful of them.”

Mercedes was an out-of-the-box thinker, and who would have guessed that a KFC out in the middle of nowhere would sustain three generations of a family and this business, adds Kelli. Their restaurant has become, as Mercedes used to put in her published ads, “The Place Where Friends and Family Meet.” It remains so today.

Alex Rosenblum Utica, N.Y. Alex Rosenblum is a third-generation franchisee from Utica, N.Y. His grandfather, Jerry Rosenblum, became a franchisee in the late 1960s after being landlord to Dave White (Ray Aley’s father-in-law). Jerry saw the success of the business and opened five KFC restaurants. Having led a successful career in the baking industry, Jerry’s son, Alan, didn’t want to continue in the restaurant business. But after closing two of the restaurants, Jerry’s grandson, Alex, decided to buy his family members out and rebuild the company. Alex, 30, is a graduate of Cornell University, renowned for its Hospitality and Management program. He decided to continue his family’s restaurant business because he saw an opportunity with the KFC brand.

Alex Rosenblum at his new restaurant in Utica, N.Y.

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“I like the restaurant and food service business, and I like the people,” Alex says. “I think there is a lot of opportunity with the KFC brand. It’s consistent and offers good food and service.” Alex says he has an experienced and dedicated management team in place. Important to their success is Josey Krause, who has worked for the family for more than 30 years and is currently ARL. For Alex, as a comparatively young franchisee, it’s important that the new generation helps carry the KFC brand forward. Alex also appreciates the sense of family that comes with being a KFC franchisee. “They welcomed me with open arms,” he says. “Some of them remembered my grandfather when he was in the business. I felt like part of the family.” In fact, he says, family is a hallmark of the KFC brand. “Dining at KFC is often a family experience,” he says. “For example, the KFC bucket is designed for family dining. The company is innovating with new flavors and products to increase the appeal to customers. Many of my customers choose to eat in and take the time to enjoy their meal.” A key to his success is that his restaurants are the primary chicken purveyors in the area. Many of his customers work and live in the area and are longtime residents and hardworking people. They continue to be loyal. To Alex, it’s no secret why they keep coming back. “My customers get real fried chicken that’s not frozen and made fresh every day in the restaurant,” he says. “That’s a good deal.” Alex is currently upgrading his restaurants and has a new one under construction. He is also becoming involved on a regional level. He joins with Ray Aley, who is on the GAC for the AKFCF in Albany and in Washington, D.C., to lobby members on behalf of franchisees. Alex is planning to marry his fiancée Shelly in March, so it’s possible that someday a fourth generation just might carry on the KFC heritage!

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Mike Kohlman & the Colonel

The Fort Atkinson KFC restaurant in 1974

Mike & Terry Kohlman

Mike Kohlman & Karin Jo Jim McKelvie & Mike Kohlman in 1970

Mike Kohlman Baraboo, Wisc. Ripon American Showman

Mike Kohlman, holding scissors, cuts the ribbon at the American Showman remodel of the Portage, Wisc., restaurant. Joining him are members of the chamber of commerce; area supervisor Ginger Koehn (left), and restaurant manager Candice Ullrich (right).

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Mike Kohlman is a second-generation KFC franchisee. Mike’s father, Terry, opened his first restaurant in 1974 in Fort Atkinson, Wisc. Terry’s brother-in-law, Jim McKelvie, managed that restaurant, and they ultimately became partners. McKelvie went on to a long career with KFC. Terry eventually opened five KFC restaurants in south-central Wisconsin. While growing up in that part of Wisconsin, Mike worked at local resorts and restaurants, as there were no KFC units near his hometown. He decided the restaurant business wasn’t for him, so he pursued a career in chemical engineering at the University of Wisconsin. He went on to earn a master’s degree in Business Administration at the University of Chicago. Mike took a job as a product manager for the Amoco Chemical Company, which is now part of BP, and pursued a variety of responsibilities there. He worked in marketing w ww. akf c f . c o m

in Chicago, as an engineer in Texas City, Texas, ran a production unit at the Texas City refinery, and was a national sales manager based in Houston. His career was on a fast track, and in 1995 he was offered the opportunity to move to Hong Kong. Back home, Mike’s father had sold three of his five KFC restaurants. He offered the remaining two to Mike. It was time for a major life decision. “At that time my goals had changed,” Mike says. “I was working crazy hours and decided against the move to Hong Kong. So, I moved back home and bought two chicken stores!” Mike married the girl he had met his first week at the University of Wisconsin, Karin Jo. They now have two sons, Cooper, a sophomore in college, and Josef, a high school sophomore. The family lives in Baraboo, Wisc. With the family to support, he has expanded to five restaurants. He is currently wrapping up his fourth American Showman remodel. Mike is pleased with the progress his restaurants have made and with the KFC brand. “Things have gone well, especially the past few years,” he says. “The brand is on a comeback, and working together we are building a solid foundation for continued success.”

CHICKEN & KITCHEN MASTERY

Kris Stage Burnsville, Minn. Anyone who has attended an AKFCF Convention in the past 17 years or so probably knows how well run, organized and efficient they are. What some might not know is who has long played a vital role in that success. Kris Stage has been a part of planning/operating each of the AKFCF Conventions since 2001 and is now working on her 18th convention. Kris is a native of Wisconsin and currently resides in Burnsville, Minn. She began a career in the travel industry 43 years ago, long before cell phones and internet. Her career includes stints as a travel agent, meeting/travel planner (including working with Trade Missions for the State of Minnesota), corporate meeting planner, and leading Australia/New Zealand group travel. Kris spent nearly five years as an independent trip director and enjoyed the opportunity to travel all around the world with corporate incentive groups. At one point, she was traveling so much that she put her personal items in storage. While this may sound glamorous, Kris says, “While I really liked doing these programs, eventually it hit me that I was like a homeless person, but living in five-star hotels.”

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K F C FRAN C H I S E E H E R I TAG E

Kris Stage

So, she opted for a more stable life and came back to Minneapolis. In 1991, she began working for a travel company that was purchased in 1998 by CTS, a company that happened to plan the conventions for the AKFCF. In 2000, Kris began working on that account. She has

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come a long way since her first convention in Las Vegas, and her successful career working for the AKFCF continues today. “I was excited and nervous about that first convention and have learned so much in the years since,” Kris says. She credits Andy Selden, former General Counsel for the AKFCF, and Deborah Callahan, former owner of CTS, with helping her learn the ropes. “This proved invaluable, as I have been involved in planning and operating each AKFCF convention since then. I’ve learned that with dedicated preparation, there is no need to be nervous like I was in the beginning,” she says. “I love to see it all come together, but it takes a lot of work to make it look effortless. And sometimes you have to think fast on your feet! I appreciate the great support from our travel staff and feel that longevity makes a difference.” Kris notes that some of these freelance staffers have worked with the AKFCF conventions longer than she has.

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Kris shared some memories of entertainers, speakers and convention events she booked that stand out. Among her most memorable includes journalist Mitch Albom, who also is a playwright and a radio and television host. Albom remarked to her how well run the AKFCF convention was and how much he enjoyed it, says Kris. Tom Brokaw, the television journalist and author, was another favorite booked by Kris. “He was so brilliant, but very grounded,” Kris says. The country musical group Lady Antebellum gave a memorable performance at another of the conventions. “We booked them and shortly thereafter they won five Grammy awards,” Kris says. “What timing!” Events and tours of local attractions also are an important part of the conventions. In 2002, a visit to Honolulu included a special event at the USS Missouri battleship, the site of the surrender of Japan, officially ending World War II. That was a very special evening for many attendees, says Kris. “Some people told me they would remember it the rest of their life. I never forgot that.” One of the favorite achievements for Kris was receiving the Shining Star award from AKFCF President Keith Chambers in 2007. According to the title of the AKFCF Quarterly article which recognized that year’s Shining Star recipients, the award is presented to AKFCF’s most fanatical supporters. Each year, franchisees and others who support the association are recognized for their hard work and service to the association. “It was much appreciated recognition and still means a lot to me. It sits proudly on my desk.”

Over the years, Kris also has worked with about 60 other meetings with ties to AKFCF. She has worked directly with two regions for numerous years – Upper Midwest and Great Lakes – and because the Southwest is part of the Super Regional, she also works with them on that yearly meeting. Kris also secures hotel bids for other meetings, including GAC fly-ins and the AKFCF board meetings. Appointed AKFCF meetings director in 2014, Kris works with team members Kelly Rodenberg, executive director of the AKFCF, and Debbie Newton, administrative director at the AKFCF. Planning meetings and conventions includes hotel bids and selections, food and beverage plans, booking speakers and entertainers, vendor show planning and execution, along with many other details. “We are jointly responsible to put the convention together,” Kris says. She can still remember her first visit to a KFC during a family road trip to Washington, D.C., when she was only 16, not knowing then what an important role KFC would play in her life. Kris has great affection for the franchisee community, even if she only sees many of them once a year. “I’m blessed to continue to work with such wonderful people, many of whom I count as lifelong friends. I feel privileged that AKFCF welcomed me into their family. This experience is so fulfilling,” she says. “I take pride in my work and feel that a good part of my job is to make people happy.” It seems she does that job very well.

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Executive Director U p d a t e

New Year, New Resolution Become More Involved in Your Association

6 By Kelly Rodenberg

Like every year before, we say goodbye to the old and ring in the new. That is often easier said than done because we become too comfortable, and the thought of reaching into the unknown by doing things differently can seem daunting. We want YOU, our current members, to reflect on the importance of why you joined AKFCF in the first place and then share it with others while encouraging them to join. Some franchisees might say their schedule is demanding enough at the moment, and the thought of adding one more activity to their busy calendar is almost impossible. So why should they try to cram time into their already hectic schedules to attend an AKFCF Regional or National association event or meeting, let alone join the association? The whole is always greater than the sum of its parts. It’s such a simple saying, but one which bears a lot of weight on the success of any group of like-minded individuals. As a franchisee, you recognize the need to stay informed about what is happening in each area of your brand. But being a part of the AKFCF gives you a voice in actually shaping that brand. With 330 other AKFCF franchisees, you get to share in the pride of supporting, through membership, a higher level of professionalism and competency across the country. Together, the AKFCF is dedicated to 44

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making franchisees better through legal services, educational opportunities and political advocacy. Educationally, you need to keep current with all developments in the scope of your work. Learning new operations and methods doesn’t stop in college or graduate school. Politically, you need to know what laws affect you and your industry. You need to know what bills are being considered that can have an impact on your company and what you can do to influence legislation to promote it. The biggest advantage of the association is the networking and camaraderie that takes place among members. To benefit from this, you must participate and be an active member within your association. Paying your annual dues isn’t enough. You must also make an investment of time and effort in association activities and become involved. The need for associating your ideas and enthusiasm with others is crucial to making it worthwhile. Simply put, what you get out of association membership is directly relative to what you put in. Whether you’re attending or participating in a regional association or meeting, networking can introduce you to a mentor or an advisor, giving you the opportunity to share advice with peers, both locally and globally. Social capital is the most important

currency in business, and members of professional organizations can access it easily and often. By establishing trust with AKFCF industry leaders and colleagues, you can help each other reach professional goals. Franchisees who join the AKFCF gain access to educational resources like industry research, newsletters, workshops and events where leaders share insight into the latest trends, innovations, technology and best practices. Members further their careers by staying ahead of their competitors. Membership in AKFCF also brings you the chance to develop your leadership skills by speaking at industry events, answering questions on forums, or contributing content to the group’s newsletter or website. This is practice for growing into a stronger leader while helping you achieve your professional goals by becoming a trusted and respected addition to the group of industry leaders. For those who continue their membership in AKFCF, we say Thank You! For those considering a membership, keep in mind you will get what you put into it. This means you want to be an active and productive member who connects with other members and contributes to the family by cultivating useful knowledge and giving back to the brand. So, for this next year, why not throw away the old and embrace the new? You won’t be doing it alone. w ww. akf c f . c o m

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Northwest Regional Short

Regional Meeting: A Productive and Informative Time in San Diego Prendiville 6 Shannon NW Regional Secretary

Beautiful San Diego Mission Bay was the location of the Northwest KFC regional fall meeting in September. Joining forces again with the Southern California Regional Association, a great meeting experience was had by all. The jammed-packed event kicked off with a golf tournament at Riverwalk Golf Club with franchisees and business partners enjoying a round of golf. A big thank you to Bob Prendiville for coordinating the tournament and for all of the attendees who made this event a success. Later that afternoon, productive and informative meetings followed during a combined session with both regions. Throughout the three-day event, members were recognized for their contributions. A special congratulations goes to Northwest’s Ralph Harman and Southern California’s Amjad Chaundry. They were presented with the Shining Star Award by AKFCF President Eric Overcash. In addition, Ralph Harman was presented the Northwest Region’s Evergreen Award for his dedicated years of service to the Northwest as RSCS representative.

Ralph Harman, right, receives the Shining Star award from President Eric Overcash.

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Attendees participate in best practices discussions at the three-day regional meeting.

The eventful first day was capped off with a welcome reception at the vendor exhibit show. Thank you to the 40 business partners who participated in this year’s regional fall meeting and for all of the member attendees. The fun did not stop there. After the exhibits closed, we all attended a Hawaiian luau complete with a Hawaiian musician and dance troupe. The second day was just as eventful. We’ve found that combined meetings are beneficial to both regions. A large portion of the day was devoted to best practices discussions to help tackle issues facing our members. Opportunities to develop strategies and share ideas through these types of discussions help

our members meet the challenges that face our industry across regions. That evening, the president’s dinner was held aboard a Hornblower yacht cruise on San Diego Bay. Stunning downtown views, dinner and KFC family camaraderie abounded. The Northwest Region will be going to Hawaii in 2018 for our fall meeting. We look forward to returning to the beautiful Hawaiian Islands. w ww. akf c f . c o m

The Hard Way

It is comparatively easy to prosper by trickery, the violation of confidence, oppression of the weak … sharp practices, cutting corners – all of those methods that we are so prone to palliate and do as “business shrewdness.” It is difficult to prosper by the keeping of promises, the deliverance of value in goods, in services and in deeds – and in the meeting of so-called “shrewdness” with sound merit and good ethics. The easy way is efficacious and speedy – the hard way arduous and long. But, as the clock ticks, the easy way becomes harder and the hard way becomes easier. And as the calendar records the years, it becomes increasingly evident that the easy way rests haphazardly upon shifting sands, whereas the hard way builds solidly a foundation of confidence that cannot be swept away.

Thus We Builded* *Dictionary. Present participle and verbal noun. To fashion or frame according to a systematic plan or buy a definite process, to create, to BUILD a reputation. Reprinted by permission of Colonel Sanders, November 1964 Copyrighted by Harland Sanders, 1973.

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Great Lakes Regional Short

Region Celebrates 40th Anniversary 6By R. Dana Pennell

You might say I was overjoyed when I realized that the Great Lakes KFC Franchisee Association’s 40th Anniversary would land on my watch as president of the Association. I started as a cook in 1977 at KFC, the same year the Great Lakes regional association was formed. It’s been 40 years for both of us. It did not take me long working at KFC to realize the sense of loyalty, heritage and pride the franchisees had toward Colonel Harland Sanders and the KFC brand. Being able to see my “vision” of the celebration come to life with the help of our meeting design committee and many others within the Great Lakes made it a very special night. The ballroom had tables set up in the back for franchisees to showcase their KFC treasures collected over the years. These were on display for members to browse and enjoy. The dinner tables had vintage KFC Great Lakes photos on display, as well as a table in the back with more photos, which were all available to take home after the dinner. Needless to say, we all looked a little younger in the pictures! What fun seeing these and remembering times and people gone by. The room was

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decorated with KFC banners, balloons and glitter. It absolutely sparkled. Of course, we had an open bar! We had a pass-the-microphone time for any member to stand up and tell a fond memory or old war story. We then welcomed our honored guest, Burney Royster, the first president of the Great Lakes Association. Burney spoke on the history of the Association, which I have included here. I presented him with a plaque for the many years of service he has given to the Association and its members. Please enjoy reading about the history of The Great Lakes KFC Franchisee Association.

Great Lakes History

The Great Lakes KFC Franchisee Association was founded in 1975 and incorporated in 1976. Franchisees from throughout the United States had become aware of the strong allegiance that the franchisees in the Southeast Franchisee Association had found through the formation of their regional association. Each Southeast meeting had attendees from other states who were eager to learn from the Southeast’s experiences. One of those attendees happened to be Burney Royster. In 1974, Burney attended the meeting of the Southeast. The National Franchisee Association was now formed, and a main objective was to work through regional associations and strengthen the franchisee family. At the Southeast meeting, the national president pro tem, Don Hines,

appointed members from other regions to spearhead the effort to organize an association from their area. Burney was asked to coordinate the Great Lakes franchisees. Burney’s letter of Feb. 24, 1975, captures a critical moment in our region’s history: On Feb. 4, 1975, a meeting was held for franchisees in the states of Ohio, West Virginia, Indiana and Michigan for the purpose of discussing the organizing of a regional franchisee association and to discuss and join the newly formed National Franchisee Association. A total of fifty-four people, representing thirty-four franchisees from the four states, attended. Bobby Helms, then president of the Southeast Franchisee Association, w ww. akf c f . c o m

attended and led the discussions concerning regional formation. Don Hines, president pro tem of the AKFCF, Inc. spoke to the group about the national association, and the role the national would play to the regional associations. After a full discussion of all the issues involved, it was unanimously decided to form the Great Lakes KFC Franchisee Association. A steering committee was selected, including Bill Alford Sr., Bill Bell, Lou Bonasso, Tully Burgess, Tex Coulter, Bill Ellet, Kenny King Jr., Mary Lewis, Ray Popp, Burney Royster and Levi Wethington. The steering committee elected Burney Royster to serve as chairman and quickly scheduled its first franchisee meeting for May 6 and 7, 1975, in Columbus, Ohio. At this first Great Lakes meeting in May 1975, a Board of Directors was appointed along with the first slate of officers. Over the years the Great Lakes regional boundaries have expanded to include parts of Pennsylvania. Always blessed with great leadership, the Great Lakes region has been proud to have six franchisees serve as president to the AKFCF: William Duncan, Joe Hall, Jack Richards, Fred Bauer, Keith Chambers and Joan Bowling. Thanks to those whose energy was spent organizing and growing our franchise association in the Great Lakes. We now enjoy the â&#x20AC;&#x153;franchise family feeling.â&#x20AC;?

Great Lakes KFC Past Presidents Dana Pennell Lesley Hottinger Alessio Difranco Jim Mckenzie John Coldwell Brian Wheeler Adelio Difranco Jim Masters Brian Denman Joan Bowling Alan Hurley David Bell Bill McNulty David Myles Cherie Gustafson Tom Arnold Larry Wheeler Bob Poindexter Lynn D. Mayer Jeanine Bagshaw Dave Roberts

2016-2017 2015-2016 2014-2015 2013-2014 2012-2013 2011-2012 2010-2011 2009-2010 2008-2009 2007-2008 2006-2007 2005-2006 2004-2005 2003-2004 2002-2003 2001-2002 2000-2001 1999-2000 1998-1999 1997-1998 1996-1997

Tim Kolbicz Louis Bonasso Abby Robinson Harry N. Latshaw Keith Chambers Fred J. Bauer Jack M. Richards James J. Liguori Henry O. Denman Billie R. Ramsey Steve J. Rudoni William Painter Raymond Meyer Joe Hall Norm Masters William Alford Jr. Richard McFarland Bob Bagshaw William Duncan Burney Royster

1995-1996 1994-1995 1993-1994 1992-1993 1991-1992 1990-1991 1989-1990 1988-1989 1987-1988 1986-1987 1985-1986 1984-1985 1983-1984 1982-1983 1981-1982 1980-1981 1979-1980 1978-1979 1977-1978 1976-1977

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R S C S

Member

Programs

Grow Your Savings with Member Programs 6 By Heather Pitts

Your RSCS Member Programs team is focused on providing national operator and employee programs for the entire Yum! Brands system, which offer unique value through negotiated pricing, as well as favorable terms and conditions. Our operators are leveraging excellent savings on programs like waste, parcel shipping, beverage grade CO2, floor cleaning, floor mat services, payroll, paycards, armored car, in-store music, energy rebates and MORE. Members can view the operator programs via our secure Digital Directory (user name and password required): www.rscs.com/ memberprograms. And to assist our operators in building employee loyalty, we also provide unprecedented cell phone discounts for all employees, as well as great savings for safety shoes, movie tickets, retail outlets and more. Employees can conveniently access the discounts through our mobile app 50

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or website: https://rscs.hrdiscounts. com/perks/ (use code SAVENOW).

New Program Spotlight

RSCS Member Programs is excited to announce our new Fire Suppression Services program with Academy Fire Life Safety LLC! Did you know? According to the National Restaurant Association, 57 percent of all restaurant fires involve cooking equipment. Restaurant fire suppression systems offer a unique way of putting out a fire quickly and efficiently (where traditional methods won’t work or aren’t practical). But they need routine attention by professionals to keep your customers, employees and investment safe. Our new Supplier Partner, Academy Fire Life Safety, has more than 20 years of experience providing services for thousands of locations (including key restaurant groups). Whether your demands are an emergency system

repair or a routine semi-annual inspection, Academy will ensure your restaurants are operating safely and within code. As always, our RSCS Member Programs partnership brings value through national discount pricing, excellent service and robust contract terms, such as: • Average savings of ~18 percent off of MSRP for semi-annual inspections • Price lock for three years with no increases • Service Level Agreements to further ensure excellent supplier performance w ww. akf c f . c o m

• Ability to terminate for convenience at any time Properly training your staff, cleaning up grease and having a fire extinguisher readily available when a fire breaks out is still important. But it is vital that you have the right fire suppression equipment and services in place. Visit the Digital Directory or email david.williams@rscs.com to learn more.

Savings Spotlight

Got WASTE? Got the RSCS Waste Services Program? How would you like an extra $2,000 in your pocket (per store)? How about $8,000?! Read on to learn more. The national suppliers within the RSCS Waste Services Program understand that our goal is to deliver value to our operators through cost savings, as well as excellent service and favorable contract terms.

AKFCF Fall17 Ad.indd 1

$2,988 PRA Savings Achieved November 2017 $8,870 PRA Savings Achieved October 2017

To have your locations reviewed for potential savings opportunities, please email a copy of your recent invoices and your current service levels to david.williams@rscs.com. That’s just what these two locations did this fall: 1 KT store in Massachusetts will save $8,870 annually! 1 KT store in Minnesota will save $2,988 annually!

By having their current spend reviewed and transitioning to the RSCS Waste Program, the savings were dramatic. And remember to look at the total package when comparing the RSCS waste rates to your current hauler. Quite often, the base rate is only a portion of the cost. Fuel surcharges, environmental fees and administrative fees can add substantially to the cost. The national negotiated rates in the RSCS program are fully inclusive of all fees except taxes. Send RSCS Member Programs an email today and let’s put some extra cash back in your P&L! These are just some of the ways you can Grow Your Savings with RSCS Member Programs! To learn more or to sign up for any of our programs, please visit the Digital Directory at www.rscs. com/memberprograms (user ID and password required). For questions, please contact memberprograms@rscs.com.

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KFC/NPC Report

Minutes of the RSCS Fall Board Meeting 6 By David Sparks

The RSCS completed its fall board meeting in Louisville this past November. A discussion was held about the distribution of the meeting notes. By unanimous decision, it was decided that the meeting minutes would come directly from the RSCS using its master email list, lessoning the burden on the regional representatives to get the meeting notes out to all of you. Having said that, if you are now reading this in the AKFCF Quarterly, but did not receive the meeting minutes by email via the RSCS, please look at the AKFCF Quarterly Directory to find your RSCS representative and get your email information to them.

Meeting Minutes

Concept Update • Budget o The KFC Concept is operating below our budget. o Obsolescence is trending below budget. • Sourcing Fees o All sourcing fees were maintained or decreased from 2016 to 2017. o No expected change so far in 2017. o We will rebalance fees in 2018. Due to price changes on strips and tenders, we plan to lower the strips and tender sourcing fee but increase fees on other items (Item 2016, Fee 2017, Projected 2018 Fee). o Oil (case) $1.61 $1.61 $1.65 o Breading Flour (case) $1.50, $1.35, $1.60 o Strips/Tenders (case) $1.52, $1.35, $1.15 o TMOR (case) $22.25, $22.25, $22.60 o NH Sauce (case) $1.00, $0, $0 • RSCS Board of Director Election The terms of the following directors will expire on June 1, 2018, following 52

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the annual stockholders meeting to be held on March 5, 2018: o Series A – Fred Bauer (0 terms remaining) o Series E – James Houck (0 terms remaining) o Series F – Justin Stewart (1 additional term remaining) o Dec. 11, 2017: Request for nominations will be sent out. o Jan. 4, 2018: Deadline for nominations for the Board. o Jan. 22, 2018: Ballots were sent out to all members for election (or proxy). o We must obtain a quorum, so even members without an election should respond. o March 5, 2018: Annual meeting and announcement of voting results. Board reviews the election results during its spring meeting in March. o June 1: New director terms begin. o Any of you who have not consented to receive stockholder notices electronically is encouraged to do so when you receive a request for consent in the near future. Marketing Calendar • Zinger o Walk down resulted in marinade obsolescence. • Georgia Gold and Nashville Hot o Tight supply of Nashville Hot and Georgia Gold sauce around the country. o Cause is that restaurants are purchasing 140 percent of the calculated sales to customers from MERIT. o During the promotion, we tightly managed supply, monitoring each restaurant’s sales and deliveries.

o Restaurants in need were overnighted supply. o Restaurants not in need (recent order with insufficient sales to justify an additional case and no mention of sharing with a neighboring restaurant) were asked to have their ARL call and verify need (then inventory released). o Cause of shortage appears to be inaccurate depletion projections. o Supply currently stable with additional production made to shore up supply. • Temporary outages of dipping sauces (Buffalo and Honey Mustard) o Supplier made change to its ERP system, while also changing its work schedule (from eight-hour shifts to 12-hour shifts). o This created a labor shortage that the supplier could not resolve. o Original supplier is back up and supplying the system, but in response we qualified a secondary manufacturer and split demand. • Launching new Pot Pie in November 2017 o $2 MM cost savings from reduced water weight; savings of $300 M just in January 2018 o Operationally preferred since there is no thaw time – can respond to demand quickly. o Long shelf life, so pre-building inventory. Also has a one-week lead time, so ability to respond to demand changes quickly. COGS / RMI • 2017 COGS forecast decreased from +0.9 percent inflation to (0.9) percent deflation w ww. akf c f . c o m

B u s i n e s s

o Favorable commodity positions. o Over performance of RMI ($24.7 MM vs. $18.1 MM plan). o Seven RMI projects are running through DEDVIM ($3 – 5 MM) • RSCS conducted three summits over the first half of 2017. o NCAC summit with KFCC, RSCS and NCAC Leadership generated $4 MM of ideas. o Charlotte summit with southeast franchisees generated 10-20 ideas. o Columbus summit with area RGMs and ARLs generated 10-20 ideas. o Most ideas were small in nature (<$1 MM / idea). • Recently Completed Projects o $2.0 MM – Pot Pie o $1.6 MM – Cookie Secondary Supplier o $1.4 MM – Cookie Alternative Pack Size o $1.0 MM – Biscuit improvement Consumer Insights Based RMI • Program started design in the KFC Team in 2015 o Goal: How do we understand what guests care about and don’t care about to design products which cost

less but are guest preferred? o Need: Needed a partner to build a consumer insights engine. • We partnered with Boston Consulting Group. What they did for us: o Rigorous consumer insights research to understand how guests perceive our business (6,000 customer interviews, four focus groups, interviews and procedures from competitors). o Developed insights of competitive operations and offerings. o Analytical engine that ties KFCC Finance, RSCS Finance, MERIT, KFCC Marketing and Consumer Insights together to answer the tough questions. • We identified 23 ideas worth $125 MM to reduce cost at consumer neutral or positive impact o Ideas look at total cost of ownership and help Ops. • We identified a broad set of proposals to improve the Brand other than cost reduction o Evaluated competitor Ops and how they achieve improved hold times. o Reviewed menu to identify opportunities for portfolio optimization.

Cards

• We generated buy-in from our Brand and NCAC Partners to move $100 MM of ideas to DEDVIM o Vijay Sukumar and Kevin Hochman on the Advisory Committee from KFCC. o Marcus Shelton and Mike Kulp from NCAC. o Brandon Robertson and Justin Stewart from KFC NPC. o Chris Held and Todd Imhoff from RSCS. • We’re putting our plan into action, targeting big wins o First project in test on 11/20/17, second currently in test. Equipment Programs • Pressure Fryer Safety Check o KFCC announced a pressure fryer safety inspection program, which will require franchisees to inspect and repair all pressure fryers. o RSCS coordinated with Henny Penny and Winston to ensure supply of needed parts; to date, no outages at the suppler (few local installers were low but placed orders from the OEM).

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Legal Update

The Importance of Convention 6By Ron Gardner

Throughout this issue, you have had an opportunity to learn about what is happening at our upcoming convention. I encourage you to attend, not because of what is necessarily happening this year, but because of the unique opportunity you have in coming to the AKFCF convention in any given year.

Support of the AKFCF As you may or may not know, I represent dozens of franchisee associations, ranging from large powerful associations, like the AKFCF, to small start-up associations with just a few members. While the AKFCF is unique in many ways, the most unique aspect of the AKFCF is its ownership and control of the convention associated with the brand. Decades ago, the AKFCF began holding a convention in response to the KFCC’s then decision to forego having a franchisee event. Out of that decision has grown what we see today – a convention that is still owned by the AKFCF, but where the responsibility for programming and content is shared between the franchisees and franchisor. This unique collaboration creates a meeting that allows franchisees to have input into the agenda. This means that we get to determine what issues need to be addressed and how they need to be addressed. This differentiates your convention from any other franchise convention I have seen. When things are good, we can all celebrate – but when things are bad, everyone can talk about the issues in an open and safe environment, where problem solving can be front and center. Additionally, your AKFCF remains a financially sound, strong, and perhaps most importantly, independent voice, in its representation of you, because of the financial 54

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support it receives through your attendance at convention. For almost no other reason, you should commit yourself, and your teams, to attend the AKFCF convention from year to year.

Valuable Return on Investment At the price that the AKFCF charges you for registration, it would be silly to talk about return on investment – obviously the return justifies that price. However, we recognize that is not the only cost involved – there is the expense associated with travel, as well as the softer costs associated with being away from your business for several days. Even with these soft costs, the AKFCF goes out of its way, in multiple ways, to make sure that you and your team are receiving value for your money and the time that you spend at convention. First, the AKFCF convention is the only place where you can have direct access to the KFCC Leadership Team and hear firsthand from the LT regarding the brand vision, the direction that KFCC sees the brand going over the next year or so, and the only opportunity you will get to hear them give you a frank assessment of the challenges that exist and how they are being addressed. This access alone should justify your investment in the convention. Secondly, the AKFCF, in conjunction with the Company, presents several compelling workshops on an annual basis to help you improve the operation of your business. Just in the last few years, there have been hands-on workshops addressing ways to better operate your business (both in the front and back of house); planning for transition in your business, whether it would be a sale or a handing down of the business to

your heirs; and multiple workshops on the HR functions of your business, including communication and promoting employees, dealing with issues created by Federal regulations related to health care, and a whole host of others. The convention is the only place you can get workshops tailored to the KFC experience. Third, this is the only opportunity each year to have access to everyone who is selling you something. The AKFCF vendor showcase provides you an opportunity to save yourself money – a real return on your investment. Coupled with the networking opportunities that exist during the vendor showcase, this ranks among the primary reasons many come to convention. Fourth, the legal workshop presented every year is consistently rated as the highest workshops we do. That is because this is the only place where you can come with your legal questions, and without having to pay some lawyer who does not know anything about the KFC system, ask those questions and get straight answers. It is my commitment to you to answer your questions as openly and honestly as I can, and if I do not know the answers to your questions, to research them and get the answers back to you promptly. That all comes at no charge simply as part of your attendance at the AKFCF convention. Finally, it is important that people know they are not alone. The Town Hall portion of our convention is critical for people to understand what is happening to others in other parts of the country, as well as their own. Having access to leaders of all different segments of the business, where hard questions get asked and answered, is an invaluable session to attend. w ww. akf c f . c o m

advertiser INDEX A Tax Deductible Family Vacation You might notice that the AKFCF convention typically takes place in a warm place in February. It is not lost on us that KFC franchisees are hard-working and dedicated to the operation of their businesses. But everybody needs a little time away. Offering a negotiated rate in a setting that allows you to bring your family, your teams, and potentially your teams’ families, and making that visit have some business purpose, allows you to take appropriate deductions against your taxable income. While it will be a rare day that all of the expenses associated with this trip are deductible, the reality is that many will be because you are “vacationing” while attending the convention. With the convention in Anaheim, California, at the doorstep of Disneyland and moments away from Knott’s Berry Farm, Sea World, the San Diego Zoo, and the beach, this getaway is especially enticing.

Reconnecting with Family – A Great Networking Opportunity It is often said that the KFC franchisee group is like a family. That is very true. But families,

like any other group, drift apart if they do not spend time together. That is why we spend so much time developing and promoting the networking opportunities that you will get at the AKFCF convention. The social hours, the time with vendors, the gala night, and our final night, all contribute to our continued sense of family and shared destiny. Indeed, this may be the single most valuable thing we do for you. We hope you think so too. It is my sincere hope to see you in Anaheim. We need your support – and it is my hope in examining the reasons I have given you for attending, you agree that you could use the help that we provide through the operation of the convention. We are in this together. See you in Anaheim! This column is for the general information of members of the AKFCF and should not be relied upon as legal advice. Please see your own attorney or professional advisor for questions concerning your franchise agreement. Ronald K. Gardner is General Counsel of the AKFCF and Managing Partner of the law firm of Dady & Gardner, PA.

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