What FRANdata Thinks

Another year has come to an end. 2019 has been a year of several ups and downs. We have seen numerous new concepts opt for the franchise business model and a few others lose traction. There were regulatory hurdles and there were operational hurdles that franchisors had to deal with in 2019. So, what’s hot […]

Franchising is an adaptive business model.  Find an appealing economic sector where branding can be a growth factor and you’ll likely see franchising move in.  I’m going to put a bunch of trends together here and see if anything can be connected to the future of franchising. To do that we need to look at […]

“Burgerim was once one of the hottest, fastest-growing brands in the U.S. Then its founder left the country, leaving behind a wreckage of unpaid workers, bankrupt franchisees and others struggling to make it work.”  – “The Burgerim Disaster” Restaurant Business Jan 17, 2020 Some 40 banks have more than $29M at risk of loss and […]

Private equity (PE) funds awash in capital face a growing need to put large amounts of money to work. Despite the strong pace of investment since 2014, PE dry powder, or uncalled capital, has been on the rise since 2012 and hit a record high of $2 trillion in December 2018 across all fund types. […]

Buoyed by growing consumer spending and growth in disposable income levels, FRANdex achieved major year-over-year gains in 2019. In the year, franchise companies’ (excluding McDonald’s) annual returns were almost like those achieved by the S&P 500 and the Russell 2000 indices. Hospitality franchises were the major gainers in the year, up 34.5% y-o-y; overall the […]

 

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