PE Profit Ladder Articles
In Franchise Development, Build Your Brand Fortress As Fast As Possible
Achieving 100 open units is the first major proof of a potentially viable—and valuable—franchise. That’s why brands race to get there fast. Then the effort shifts to opening 250 with a backlog, branching out internationally, then 500 open with a bigger backlog, and so on.
You’ve Just Completed A Franchisee Survey. Now What?
The two main indicators of a high quality franchise brand are: (1) strong unit level economics, and (2) strong franchisor-franchisee relationships. Completing a franchisee survey signals that you actually care what franchisees have to say.
Multi-Unit Development Requires The Right Discipline
Multi-unit development agreements, aka MUDAs, are a common growth tool. But since only 15 percent of U.S. systems grow beyond 100 units (per FRANdata), it’s not as simple as signing a bunch of deals.
Strong Real Estate, Construction Practices Matter For Franchise Growth
Want more growth? Open every unit you sell. Only one-third of new franchises sold actually open. Prior to COVID, there was a backlog of more than 14,000 sold-not-open, or SNO, units in the U.S. according to FRANdata. For many brands, improved real estate processes and get-open support are needed to turn these numbers around.
Franchisee Liquidity Is One Link To Successful Franchise Development
As the saying goes, “franchising is simple, as long as franchisees are making money.” However, in some systems, it may seem easier to sell franchises than to actually get them open and profitable - and then to keep them profitable.
Disruptive Forces To Watch In Your Franchise Sales Approach
I’m thrilled to put 2020 in my rearview mirror. Franchise deal flow has returned or even accelerated for some. Business ownership remains highly attractive. Unsurprisingly, perceived “recession-resilient” franchises received strong interest in 2020.
Sales strategy & process: “Franchise Development Needs Reinvention To Reflect A New Normal
Franchising has never faced a threat like COVID-19. And yet, this recession, like others before it, will drive new buyers. Some displaced workers will find business ownership appealing. Others buyers seek supplemental income. Don’t stop your franchise development efforts. Engage and maintain forward momentum. It is also critical to supporting re-sales.
Sales strategy: In A Recession That’s Unlike Any Other, Here’s How To Adjust Development.
I often hear, usually from franchise recruiters, that recessions are "positive" for new franchisee recruitment because new entrepreneurs enter the market. Mid-career executives find themselves downsized and use retirement funds, severance or credit to launch a business. The new business creates income and the opportunity for personal reinvention.
Instead Of Simply Weathering Change, It’s Time To Future-Proof Development
Franchise buyers (as well as finance partners, debt markets and investors,) want evidence of your brand’s sustainability. Your franchisees are also considering expansion options - should they expand with your brand or look elsewhere for growth?
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PRIVATE EQUITY’S IMPACT ON FRANCHISING
EMERGING BRANDS
TRENDS
BUILDING SMART
PROSPECTIVE FRANCHISEES
TURNAROUNDS & CASE STUDIES