FRANdata In The Press

2 Ways to make your restaurant franchise recession-resistant
Nation's Restaurant News

A recent franchise survey from FranConnect shows that 84% of restaurant franchisors are unprepared for a potential sales downturn.

Thinking of Selling Your Franchise to a Private Equity Firm? Here Are 9 Ways to Build a Valuable Reputation
Entrepreneur

Private equity (PE) firms are watching your franchise business right now — and so are a few potential strategic acquirers. Many franchise founders, especially within emerging brands, carry common misconceptions about how they get on private equity’s radar in the first place. You’re not an unknown starlet who is suddenly “discovered” while waiting tables at a Hollywood diner. Private equity investors, especially those who understand franchising very well, watch the sector constantly (as do strategic acquirers on the hunt for opportunities within your vertical). Your brand may already be listed internally on their watch list, marked with notes like: “approach now, watch, likely to trade, weak/not a fit.” This is happening even if you’re already private-equity owned, since PE also tracks competition and follow-on acquisition opportunities.

Food and Beverages Industry Spotlight
Franchising World

In a year full of supply chain disruptions, continuing COVID-19, effects from the American Rescue Plan, international events, and calamitous weather, a perfect storm has erupted, which has caused record-high inflation since the Carter era. One of the most impacted industries is the Quick-Serve Restaurant (QSR) Industry, a business model that thrives on selling fast and affordable food. Franchisees have struggled to balance those requirements with their market’s demands, resorting to traditional and non-traditional cost-cutting solutions.

Are Some Markets Too Much Trouble for Franchising?
Franchise Times

High costs and increased regulation threaten to shrink the franchise footprint in some states. During the pandemic, FRANdata noted the 13 registration states suffered more unit losses, dropping 3.2 percent compared to 2.4 percent in non-registration states in 2020 compared to 2019. Different reopening restrictions played a role. But with already high costs, the added threat of increased regulation may ultimately replace the pandemic as a significant stress point.

Children’s Services (Education and Childcare)
Franchising World

The rising number of franchises entering the education services industry in recent years since the recession has led to certain levels of market saturation and increasing competition between different brands battling for the same slice of market share.

Home Service Trajectory Remains Strong
Franchising World

The home services sector is home to some heavy hitters like Neighborly, First Service Brands, and Authority Brands who dominate this space.

The Joint Chiropractic Wins Big: Zor Award Names Brand 2022 Best Buy; 2022 TOP$CORE FUND(TM) Honors Commitment to Franchise Financing
Market Watch

The Joint Corp. (NASDAQ: JYNT), the nation’s largest provider of chiropractic care through The Joint Chiropractic(R) network, has been named a best buy in franchising by Franchise Times as part of its annual Zor Awards program, designed to recognize brands in 10 of the industry’s most exciting and accessible categories.

FRANdata’s Q1 New Franchise Concepts Report Identifies 86 Brands
Franchising.com

FRANdata identified 86 new franchise brands across 23 industries in Q1 2022. Most of the new brands are in the QSR and Sit-Down Restaurant categories, followed by Health & Fitness and Maintenance Services. Food concepts continue to make up the largest percentage of new franchise concepts, a trend in line with the previous quarter. The other leading categories are shown in the pie chart.

Doctors Find a New Way to Be Their Own Boss
Medscape

Despite the challenges, Mansoor says she has no regrets about taking a pay cut to work there. “I never thought that I would love this job more than my hospital job, but the fact is, I do love working in my own business now.”

Other doctors see franchises as a business opportunity. Another area that is doing well is home care. Vikash Salig, MD, MBA, and his nonphysician partners bought a few Executive Home Care franchise territories in Florida. Salig, an executive with the talent recruiting firm ZRG Partners, plans to be an “absentee owner” and let his partners run the home care business when it opens next month. He also says he will donate a share of the profits to a charity that he and his wife support.