PE Profit Ladder Articles
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.
Skip The Stall-Out, Avoid These Common Franchise Growth Pitfalls
Franchise systems have a surprisingly common habit of stalling out. Some get "stuck at small," but stall-outs also happen to big brands that don’t reinvent and innovate. Some simply rest too long on their laurels. This applies to personnel decisions and early investors as well. If your ownership structure hamstrings decisions or team skills are lacking, don’t wait to address those issues.
Should Your Brand Partner With Franchise Brokers In Order To Grow?
Brands that create significant deal flow through brokers tend to fall into specific categories, and must be active to maintain mindshare.
Emerging Trends Provide Direction For Franchise Development
"This is the biggest economic shock in the U.S. and in the world, really, in living memory. We went from the lowest level of unemployment in 50 years to the highest level in close to 90 years, and we did it in two months."
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.
With Shifting Franchise Buyer Base, Consider Generational Change
Baby boomers are redefining retirement, because they’re not retiring. While 10,000 Boomers turn 65 every day, the Pew Research Center reports 29 percent of those 65-plus are employed or actively looking for work. Among younger boomers, 66 percent aged 54 to 64 still work.
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PRIVATE EQUITY’S IMPACT ON FRANCHISING
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