GROUND ROUND 2 local owners buy company's franchising rights

Local Ground Round owners will receive a vote on how the company is run.
By DON SHILLING
VINDICATOR BUSINESS EDITOR
The people who that own the local Ground Round restaurants have become their own bosses.
They are among the 70 franchisees nationally that have joined together to buy the franchising rights for the company.
Dave Turner, who owns the Boardman restaurant, said the new arrangement gives the franchisees more control and will be better financially.
"We own the individual stores and pay franchise fees to ourselves," he said.
The Howland restaurant is owned by Chuck Whitman, who could not be reached to comment.
The franchisees have formed the Independent Owners Cooperative, which is based in Freeport, Maine. It bought the franchising rights for the corporation from American Hospitality Concepts, a Massachusetts-based company, which closed its 50 corporate-owned restaurants in February.
The restaurants owned by franchisees continued operating.
American Hospitality Concepts didn't announce a reason for closing its restaurants, but Turner said it was operating with higher overhead costs, such as pay for senior executives, than the new group is.
The cooperative has named one of its franchisees, Jack Crawford, as president and chief executive. Executives also have been named to handle purchasing, marketing and accounting.
The franchisees rely on the corporate staff for menu development, marketing and negotiating with vendors, Turner said.
Regular meetings
While Crawford will oversee the day-to-day operations, he also will report to an eight-member board of directors. All franchisees plan to meet four times a year to set the company's direction.
Turner said he likes having a vote in the company's future, rather than just following regulations from the corporate office. Franchisees also have a profit-sharing plan, he said.
Turner said no major changes are planned in the restaurants. "We think we have an exciting future."
The cooperative said seven of the corporate restaurants that were closed have been reopened or will be reopened by Nov. 1. These restaurants in Pennsylvania, Maryland, Wisconsin and Missouri are operated by current franchisees.
Turner has owned the Boardman restaurant for 13 years. The Howland restaurant opened in 1995.
Ground Round debuted in 1969 as a division of Howard Johnson and was one of the early promoters of the casual dining segment of the restaurant industry. American Hospitality Concepts bought the chain in 1997.
shilling@vindy.com