FRANdata In The Press
The personal service sector is one of the fastest-growing fields for small business ownership, according to a newly released Franchise Business Economic Outlook report from the International Franchise Association.
America’s franchisees are poised for another year of growth in 2020 as the U.S. economy chugs along, bolstered by a strong consumer. But facing an election year and a historically tight jobs market, franchise establishment growth is slowing to its lowest rate in the past four years.
The younger generations aren’t just coveted customers. These days, they’re bringing new opportunities to brands as franchisees.
Atlanta Subway franchisee Chris Williams was just 26 when he purchased his first Subway unit last summer. Less than two years before his store’s grand opening in July, he had been homeless and was living in his car due to financial hardships. In 2018, though, Williams landed a full-time job in Atlanta, and, soon after, began saving to buy a Subway franchise.
The International Franchise Association and Social Geek present: MITPod, The Marketing Innovation Technology Podcast!
Kristen Pechacek and Jack Monson are back sharing trends and stories leading up to IFA’s MITCon event in Phoenix. Save the date: MITCon 2020 will be Oct 28 – 30!
No panels. No booths. No BS. All engagement!
This week we chat about the new annual Economic Outlook Report from IFA and FranData as well as a horrible trend of trading your company’s branding for lead gen.
Plus shout-outs today to Brooke Budke, Tom Epstein, Kathy Collins, and Sherri Fishman.
Women’s presence in the franchise industry is soaring.
As of May, women own or co-own 35% of the franchise outlets in the U.S.—around 265,000—according to the Franchise Business Review research firm. That represents outlet growth of 24% from a decade earlier, and in the two years ended in May, 41% of new franchise outlets opened have been owned or co-owned by women. And in some sectors, such as interior decorating, they far outnumber their male counterparts.
The growth reflects women’s growing prominence in the corporate world, say experts and entrepreneurs. As women gain access to more resources and connections, experts say, they are increasingly venturing out and starting businesses of their own.
“I think it’s driven by the fact we have more women in C-level upper-management positions than ever before, and when those women leave corporate America, they have more confidence to run their own business,” says Jania Bailey, chief executive officer of franchise marketplace FranNet.
Each year we work with FRANdata to compile a list of the country’s largest multi-unit franchisee organizations. Based on total unit count, the rankings show not only the number of units these “mega” franchisees operate, but also their brands. While the list is dominated by food brands, it also includes non-food concepts such as business services (tax preparation), consumer services (automotive), and lodging. Building a multi-unit empire is a matter of taste, opportunity, passion, and comfort level. If you’re looking to expand and diversify your own franchise empire, study what the “big guys” are buying–it just might help you with your own growth choices in 2019.
It’s promoted as a way to gain independence and build wealth, but entrepreneurs need to know what they are getting into first. Franchises are promoted as a way to control your destiny and build wealth by getting a head start, as well as guidance in good times and bad, from the franchiser that created or controls the concept.
You have been conducting your due diligence on a brand and like what you see. Do lenders share your opinion? You have a way of finding out: Ask the franchisor what the brand’s FUND Score is. Why? The higher the FUND Score, the greater the access to lenders and the more favorable the lending terms. In other words, the better a lender’s perception of a brand, the lower the cost of a loan.
Wall Street Journal: “The traditional programs detailed requirements to follow step-by-step for learning a trade. The idea behind the administration’s proposal is that if business groups run programs they can more quickly tweak them to meet individual employers’ needs.
“This new approach should open up that model and allow IFA or another body to formalize training of these foundational skills, and provide workers a credential that they can build upon,” Mr. Johnson said.