FRANdata In The Press
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.
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.