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.
What A Franchise Disclosure Document Won’t Tell You
Franchisors are required to include a significant amount of information in their Franchise Disclosure Document (FDD,) which is then shared with prospective franchisees, regulators, and lenders.
Turn Profitability Pain Points Into Brand Selling Points
How can your franchise system grow faster? Look at your unit level profit and loss statements.
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.
What Your Development Pipeline Reveals To Private Equity
Substance matters, not just size. Especially when it comes to your development pipeline.
Why Do Some Brands Avoid Franchisee Surveys?
One of the most efficient ways to predict future franchise brand performance is to examine franchisee survey results. Why?
How To Fix Poor Franchisee Validation & Restart Growth
Franchisee satisfaction surveys are extremely useful management tools. But even without a survey, franchisee dissatisfaction is immediately visible in three places and all are leading indicators within franchise development.
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.
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PRIVATE EQUITY’S IMPACT ON FRANCHISING
EMERGING BRANDS
TRENDS
BUILDING SMART
PROSPECTIVE FRANCHISEES
TURNAROUNDS & CASE STUDIES