SALES MANAGEMENT
Is There Gold Beneath
Your Feet?
Unearthing tax incentives can pay big returns
BY EDDY GOLDBERG
Why would both a franchise capital finance company and the CEO of a retail franchise
brand sign on as franchisees of a new
concept?
That’s what Siegel Financial Group
and Gabriel Bottazzi, CEO and founder
of Bijoux Terner, have done. They are
among the six franchisees who have
signed on with Retro Tax. Part of the
reason, both say, is that it’s a great concept. Retro Tax, as the name implies,
finds tax credits for both franchisors
and franchisees—and gets paid a percentage of what they find.
Another part is relationships, namely,
Stan Friedman and the tax credit administration experts at the parent company,
Indianapolis-based ACI/Retro Tax. The
“company store” in Indianapolis is 12
years old, and Friedman’s relationship
with the principals goes back to 1994.
Friedman—who in the past two
decades has held senior executive positions with Maggie Moo’s, Wing Zone,
Blimpie International, WSI Internet,
and Cendant—became a partner and
president of the newly formed ACI
Franchising, LLC, franchisor of Retro-Tax, in late 2007. He is clearly excited
about the opportunity the concept offers to small businesses.
“Lots of companies are struggling to
keep their doors open. We can go back
three years and get back taxes they’ve
paid,” says Friedman. “In many cases
you can uncover five and six figures.
They get cash back. And when you
get a percentage of that, it’s beautiful
for you, too.”
Retro Tax, which administers federal,
state, and local corporate tax credit pro-
grams, new hire, and job creation tax
incentives, began franchising in April
2008. “I’m more focused on the numbers the franchisees will produce, than
the number of franchises I can sell,”
says Friedman. He says all six franchisees “were introduced by one degree
of separation.”
“It began with our friendship with
Stan,” says Nate Greenberg, president
and COO of Siegel Financial Group.
“We’ve enjoyed a great relationship
with him for years.” Siegel, which helps
franchisees find capital for startup and
expansion, has signed on for the Philadelphia and Camden, N.J., territory. And
for this company, it’s a perfect fit.
“One of the things Siegel Capital
does is help people take advantage of
federally sponsored programs like SBA
lending,” says Greenberg. “Our existing
clients and professional relationships
are already naturally in a lot of this
space. This made it a very attractive
opportunity.”
Siegel has only just signed on, says
Greenberg. “So far everyone we’ve connected with has been really excited about
the opportunities we’ve put in front of
them.” He felt so confident about the
concept that he showed it to his own
brother. “It’s an opportunity to educate
people about the gold that’s been lying
beneath their feet.”
Gabriel Bottazzi says he’s already busy
enough growing Bijoux Terner, whose
“luxury at $10” concept is especially
timely in today’s economy. The brand
has more than 500 stores in hotel and
casino resorts, cruise ships, airports, and
train stations in 60 countries, but only
recently began franchising.
Bottazzi discovered Retro Tax through
Kay Ainsley, a managing director at
Michael H. Seid & Associates. Ainsley,
he says, “helped me get my franchise
act together” for Bijoux Terner. After a
career of many moves and relocations,
he and his wife Iraida, were looking for
a franchise she could run.
“My wife and I wanted to start something separate from what I do,” he says.
“We looked at a lot of concepts.” During
that search, he asked Ainsley for suggestions. “Retro Tax was very interesting.
It’s so timely, so of the moment, and
brings almost a secret service that no
one else knows exists. It gives people
a nice surprise,” says Bottazzi.
The couple attended a Discovery
Day in Indianapolis, where they first
met Friedman, who is based in Atlanta.
They were impressed by what Bottazzi
describes as the collaborative culture
and good skill base in the organization.
“We kind of fell in love with it. It’s a
great business concept, and we wanted
to get on board.”
They signed on for Florida’s Broward
and Miami-Dade counties, where they
live. Iraida is the primary operator, concentrating on presenting the concept to
potential customers. A native of Puerto
Rico and former school teacher, she is
fluent in Spanish and English, a big
asset in South Florida. They recently
hired George Romanenko to manage
the business and operations side.
“It’s very easy for a franchisee. You
don’t have to be an expert on taxes,”
says Bottazzi. “In 10 minutes you can
catch the attention of any business
owner.” Franchisees become the sales
force, and the administrative work—
research into eligibility and the subsequent number-crunching, form-filling,
and filing—is done at ACI’s headquarters in Indianapolis.
“Everybody’s talking about tax credits, but it’s complex. How do you know
you’re entitled?” says Bottazzi. “The
first thing we do is help them identify
if they’re eligible. Then we help them
process the benefits.”
Friedman says both franchisors and
