Franchise Update Magazine Issue IV, 2012

should be very similar to 2012 because the economy is in the second phase of a predictable cycle of recovery that will take 2 to 3 more years to play out. While he acknowledged the ongoing headwinds of public and private debt, global economic weakness, and changing demographics as “outside our ability to change,” he also pointed out a couple of bright lights on the horizon. “Small business confidence remains high,” he said. Uncertainty, he said, is “the biggest enemy we’re facing in the next years,” and he urged franchisors to focus on what is in their control: their brand, unit performance, franchisee recruitment, site selection, and training. Prospects, he said want to know how much they can make and their probability of success. Lenders care about getting their money back, and are looking at unit continuity and unit cash flow, so franchisors should 1) do what they can to mini- Grow Market Lead 14th Annual Leadership & Development Conference economics, franchisor/franchisee relations, royalties and incentives, communication and transparency, and legal issues. Guaranteed confidentiality, attendees let their hair down and shared both company details and personal stories with their C-level peers. After the day’s sessions wrapped, attendees filled the Exhibit Hall for a welcome reception. PowerPoints, panels, and handouts gave way to cocktails, hors d’oeuvres, and spirited conversation as attendees mingled with suppliers and networked with fellow franchisors and franchisees. Day 2 The Exhibit Hall reopened early Thursday morning for breakfast and additional opportunities to rub elbows before the opening general session. Following opening remarks by Franchise Update Media Group CEO Therese Thilgen and event sponsor Steve Baxter from Satmetrix, FRANdata CEO Darrell Johnson took the stage to offer his annual state of the economy and franchising overview. Johnson said that like it or not, economically speaking, 2013 mize unit closings, or be able to explain why, and 2) focus on their franchisees’ unit profitability. “Franchisors must not only have good performance in these areas, but be able to show it— to prospective franchisees (especially multi-unit operators) and to lenders. For 2013, he predicted modest growth for most brands, and faster and easier growth for those showing good performance. “There is no rising tide for all, so performance Franchiseupdate Issue I V, 2012 39

Franchise Update Magazine Issue IV, 2012 | Page 41