Comstock's magazine 1019 - October 2019 | Page 35

husband-and-wife team met in South- ern California and settled in the Sacra- mento area in 1998. Summer Gonzalez’s local ties go back even further. When she was 10 years old, she moved to the Arden neighborhood, attended Howe Avenue El- ementary and Ponderosa High and spent her teenage years working at restaurants in the area, including branches of fran- chises such as TGI Fridays. Though she prefers to eat at independent restaurants, Gonzalez admires certain qualities of the big chains. “They really have their ducks in order, so to speak,” she says. Kiki’s recent growth is powered by licensing agreements, an arrangement similar to those behind the chains Gon- zalez worked at in her youth. In a licens- ing agreement, the licensor sells the right to use its name, products, logos and oth- er branding elements in return for a per- centage of sales. Kiki’s licensees, many of whom are former employees, “may never be able to own another business,” says Gonzalez. “So this is an opportunity for us to give to people who have worked for us and let them have an opportunity to own something.” This scenario may sound like a fran- chising agreement, but Kiki’s Chicken Place is not a franchise. California is one of 13 states that require companies to regis- ter a Franchise Disclosure Document with the Department of Business Oversight be- fore offering a franchise for sale. An FDD registration costs hundreds of dollars to file and can take years to acquire. The Gonzalezes have turned to li- censing agreements as a legal alternative while they wait to apply for registration. As licensors, they have less control over the brand than they would as franchisors, so they license only to people they trust. They want to make sure that every detail remains consistent across locations: the crisp chicken, the long list of sauces, the red walls hung with vinyl records. “The food and the look is all a brand, so it has to be the same,” says Gonzalez. With an FDD registration, she could ensure the consistency of the brand with less direct supervision. Squeeze Burger, one of Sacramento’s celebrated local food institutions, also has grown into a small chain with the help of licensing agreements. Owner Tra- vis Hausauer bought the restaurant (née Squeeze Inn) in 2001 from Ken Noblett, who opened the now-demolished origi- nal location near McKinley Park in 1980. Hausauer still owns Squeeze Burger’s Power Inn Road headquarters, as well as the Galt branch and a share of the one in Stockton. The other five restaurants, plus a location at Sacramento International Airport and branded products in three Sierra Energy gas station convenience stores, operate under licenses. “All you have to do is make sure that you maintain the quality of everything, whereas they’re responsible for every- thing else,” says Hausauer of his agree- ments with his licensees. During his first years running Squeeze Inn with his late business partner Greg Svoboda, Hausau- er remembers working 11-hour days up to six days a week. Licensing allowed him to continue expanding his brand without spreading himself as thin as the Squeeze Burger’s signature cheese skirts. “There’s only so much you can do as an owner,” he says. “You don’t want to exhaust yourself until you burn out.” Kiki’s fries with cheese, buffalo sauce, ranch and bleu cheese dressing. PHOTO BY NICOLETTE LOVELL October 2019 | comstocksmag.com 35