Posted: January 22, 2010

By Michael Schwartz

michael.schwartz@insidebiz.com

The tail end of what is now being called the Great Recession isn't exactly the ideal time to launch a franchise company.

But after getting through the nearly two-year process to become a franchise company, locally owned Pollard's Chicken, famous in the region for its fried chicken, fried gizzards and those puffs, is so far succeeding. It sold its first franchise in Virginia Beach with another on the way and discussions for more taking place.

Johnny Pollard, whose mother Betty founded the company 40 years ago after locals couldn't get enough of her cooking, today runs the business with his sister Betty Ann Pollard Gravely.

He admits that when they started planning the franchise process the economy looked a lot different.

"When we started it was great," Pollard said. "Now it's rough out there on the streets."

Initial interest for franchises was strong before the recession took hold, Pollard said.

"But with the economy a lot of people just dropped out."

Nevertheless, word of Pollard's franchising opportunities continued to spread. Hopefully having bypassed the worst of the recession while it was occupied with all the "hoops and loops" of becoming a franchise company, Pollard's is now working its plan to slowly sell franchises, only in Hampton Roads at first, where the Pollard's name is known.

"We're trying to do it all local and build from there," Pollard said. "We're not trying to branch out other than Tidewater right now."

The first Pollard's franchise opened in the Woods Corner Shopping Center off Centerville Turnpike in Virginia Beach earlier this month.

The build-out has begun on a second franchise in the College Park area of Virginia Beach. Pollard said he also has appointments to meet with other potential franchisees.

Becoming a franchiser has been a complicated undertaking that involved lawyers and consultants and resulted in a 4-inch thick operations manual that lays out for franchisees all the facets of running a Pollard's restaurant. That includes pricing, the required software, which distributors to use and most importantly, how to concoct those famous family recipes.

"With this economy, we're just tickled that we have some that have gone out and started," Pollard said.

Pollard has a theory on the economy's effects on the fried chicken business, one he hopes will play out in favor of Pollard's six existing company-owned restaurants and also for its franchisees.

He believes, although fried chicken is moderately priced to begin with, some consumers at the bottom rungs of the economic spectrum may drop out of the fried chicken-buying market for a time. But in the meantime, Pollard believes "we'll get trickle-down from the higher-end," those consumers who in normal economic times would more often chose a higher- priced establishment. If and when the economy returns to some semblance of normalcy, the higher-end may go back up but those who left the market should return.

"At least we're not selling cars or houses," he said.

Since becoming a franchiser, Pollard's has been receiving attention from numerous franchise publications and news Web sites, something it isn't used to. And who knows, someday there could be a Pollard's Chicken booth at major franchise conventions, a long way from the company's start in his mom's kitchen and its first location on Little Creek Road in Norfolk in 1967.

If and when it ventures out of its Hampton Roads coup, Pollard said the company won't initially go too far.

"Carolina will be our next step," he said. nib