FRANdata In The Press

Franchising research firm Frandata established its Franchise Registry nearly 30 years ago, and with an evolving lending landscape, it provides another option for franchisors to validate themselves to lenders.

Frandata President Edith Wiseman said the firm’s registry provides a comprehensive amount of information to the lending community. Wiseman said franchise brands that have been in the company’s database are automatically added to the registry, but noted franchisors can become verified members, which allows them to add documents and control what’s included in their listing. The cost of a membership ranges from $750 to $1,500, depending on the size and age of the brand.

The International Franchise Association recently released the report from its 2024 Annual Franchisee Survey. The survey, conducted by FRANdata, provides a detailed analysis of the economic conditions on franchised businesses and surveyed over 1,400 franchisees nationwide.

The landscape of franchise financing is shifting. New lenders are entering the market, and the characteristics of the average franchisee are changing. The Small Business Administration (SBA) continues to make changes, and the Federal Reserve has been responding to a unique economy.

The past year was an adjustment period for lenders, as they’ve had to vet the eligibility of franchise brands without the help of the U.S. Small Business Administration’s Franchise Directory.

The lodging industry’s substantial growth in 2023 reflects its resilient rebound from the challenges posed by the pandemic in 2020 and 2021.

As the housing sector witnessed unprecedented growth during the pandemic, the franchised home services industry emerged as a pivotal player, catering to the diverse needs of homeowners.

In 2022, the industry saw a huge jump in the number of brands entering franchising to 414 brands with 2023 looking to finish at a similarly high number.

One of the trends of the past few years has been growth through acquisition. Discerning the right acquisition target is a pivotal step for PE groups, platform companies, and multi-unit franchisees eyeing expansion and diversification.

With more than 420,000 franchised units owned by 234,000 franchisees in the system, multi-unit operators (MUOs) are shaping franchising’s future. Notably, MUOs in the U.S. control more than 50% of all franchised units, marking a substantial shift in the franchising paradigm.