FRANdata In The Press
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.
When the topic of international development comes up during strategic planning sessions, many franchisors are quick to dismiss the opportunity, citing costs or potential untapped white space in the U.S. market. Such lack of clarity can be a serious problem ‘for franchisors embarking on a rapid growth plan, often resulting in mistakes that can put the franchise at risk.
Back in the spring of 2012, less than two years after being cut from minor league baseball—his dream of pitching in the majors all but forgotten—Devan Kline, now 30, stood in a parking lot in Huntersville, North Carolina, with music blaring from his parked Dodge Challenger and led a small crowd of women through a rigorous workout regimen of his own design. It was the birth of his women-centric gym, Burn Boot Camp, founded with his childhood sweetheart, lifeline and now wife, Morgan.
The couple couldn’t afford proper gym space and used fences for wall sits, a cement ledge for tricep dips and a grassy hill nearby for bear crawls. “They believed in him,” says Morgan Kline, 30, the company’s COO and co-owner. “They tried us out, and they stuck with it. There are several women that are clients of ours today that started out with Devan in the parking lot.”
A relatively misunderstood business model, with a paucity of academic support, franchising is on the precipice of history. Defined by the Federal Trade Commission as an ongoing commercial relationship that includes a license to a brand, payment of a modest fee and the existence of significant control or support, the average consumer knows it as Subway, McDonald’s or Anytime Fitness.
The S&P 500 which has historically returned 7-10% annually is being consistently outperformed by the FRANdex, which tracks the performance of 62 U.S.- based publicly-traded franchise companies. Here are 5 franchise stocks to watch in 2018.
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.
International concepts looking to break into the US market should engage the right partners and franchise experts.