Search
Close this search box.
Search
Close this search box.

Mort Fleischer

I was wrong on pizza,” admits Mort Fleischer. He thought the local competition would be too strong for a national franchise chain such as Pizza Hut. Now we all know better and Fleischer himself, through his Franchise Financial Corporation of America (FFCA), bankrolls new Pizza Huts.

Despite his pizza misjudgment, the Scottsdale, Ariz.-based financier has generally been right about fast food franchises over the last decade. Founded in 1980, FFCA is now the major financing source in the industry, leasing over 1,200 fast food franchises with every major chain in America, except McDonald’s. In 1989, FFCA distributed $116 million on the $900 million investment of 120,000 limited partners.

“Fast food,” says Fleischer, “is the backbone of the firm’s credit line. It’s not something bankers or S&Ls understand.” When he started FFCA in 1980, Fleischer perceived a “vacuum” in franchise financing and decided to fill it with a specialized operation that would back operations by picking locations with high real estate value. “My goal was to establish the necessary infrastructure.”

Aligning good franchise locations with proven management has, Fleischer claims, resulted in steady growth with only a 2 percent average failure rate for FFCA. What the approved client gets is a fully equipped and leased fast food franchise. What the client pays FFCA is 12.5 percent of FFCA’s investment or 8 percent of sales, whichever is bigger. The payments are deducted automatically from the franchise’s bank account.

In 1980, when Fleischer started FFCA, 90 percent of the franchises he financed were new and 10 percent were existing. By 1990, these figures have been exactly reversed. Also changed is the typical franchisee: The era of the mom and pop single-unit enterprise has given way to multi-franchise operations using efficient management techniques. Fleischer believes 50- to 100-unit franchise owners will become the norm. In the meantime, FFCA is looking for new franchise ideas, and is already promoting an interstate truck stop called Flying J Travel Plazas -having luckily avoided Jiffy Lube. Fleischer, 53, tried clothing, sporting goods, insurance, M&A, real estate, and coal mining before he came up with FFCA. Today he dines at The Four Seasons, not Arby’s.


MORE LIKE THIS

  • Get the CEO Briefing

    Sign up today to get weekly access to the latest issues affecting CEOs in every industry
  • upcoming events

    Roundtable

    Strategic Planning Workshop

    1:00 - 5:00 pm

    Over 70% of Executives Surveyed Agree: Many Strategic Planning Efforts Lack Systematic Approach Tips for Enhancing Your Strategic Planning Process

    Executives expressed frustration with their current strategic planning process. Issues include:

    1. Lack of systematic approach (70%)
    2. Laundry lists without prioritization (68%)
    3. Decisions based on personalities rather than facts and information (65%)

     

    Steve Rutan and Denise Harrison have put together an afternoon workshop that will provide the tools you need to address these concerns.  They have worked with hundreds of executives to develop a systematic approach that will enable your team to make better decisions during strategic planning.  Steve and Denise will walk you through exercises for prioritizing your lists and steps that will reset and reinvigorate your process.  This will be a hands-on workshop that will enable you to think about your business as you use the tools that are being presented.  If you are ready for a Strategic Planning tune-up, select this workshop in your registration form.  The additional fee of $695 will be added to your total.

    To sign up, select this option in your registration form. Additional fee of $695 will be added to your total.

    New York, NY: ​​​Chief Executive's Corporate Citizenship Awards 2017

    Women in Leadership Seminar and Peer Discussion

    2:00 - 5:00 pm

    Female leaders face the same issues all leaders do, but they often face additional challenges too. In this peer session, we will facilitate a discussion of best practices and how to overcome common barriers to help women leaders be more effective within and outside their organizations. 

    Limited space available.

    To sign up, select this option in your registration form. Additional fee of $495 will be added to your total.

    Golf Outing

    10:30 - 5:00 pm
    General’s Retreat at Hermitage Golf Course
    Sponsored by UBS

    General’s Retreat, built in 1986 with architect Gary Roger Baird, has been voted the “Best Golf Course in Nashville” and is a “must play” when visiting the Nashville, Tennessee area. With the beautiful setting along the Cumberland River, golfers of all capabilities will thoroughly enjoy the golf, scenery and hospitality.

    The golf outing fee includes transportation to and from the hotel, greens/cart fees, use of practice facilities, and boxed lunch. The bus will leave the hotel at 10:30 am for a noon shotgun start and return to the hotel after the cocktail reception following the completion of the round.

    To sign up, select this option in your registration form. Additional fee of $295 will be added to your total.