Multi-Unit Franchisee Magazine Issue III, 2013 | Page 66

Conference by
the Numbers
Franchisees, franchisors, and suppliers from across the U.S. and Canada
gathered in Las Vegas for Franchise
Update’s 12th annual Multi-Unit
Franchising Conference. The event
continues to grow each year, setting
new attendance records. This year,
more than 450 franchisees (representing 333 franchise organizations)
attended, 50 more than in 2012.
A quick rundown of the aggregated statistics from the 450-plus
franchisees who attended shows the
following impressive figures:

• 9,400+ operating units
• 180,000+ employees
• $7.5+ billion in annual
system-wide revenues

• 200+ brands in all
business categories

• 38% have 2 or more brands
• 47% operate in 2 or more

states encompassing more than 40
U.S. states and Canada

•  70% are seeking additional
brands

•  50 companies

came

seeking specific brands

64

Multi-Unit Franchisee Is s ue III, 2013

“You don’t have
to change the
world, but you
can change one
person’s world.”
— David Akers
that every morning as his wife heads out
the door to rehab, she looks at him and says
“Fight, fight, fight,” and said her attitude
is a daily inspiration to him. “The power
of the human spirit is an incredible thing.
She reminds me every day to deny the acceptance of failure.”
At the conclusion of the general session, franchisees gathered for roundtable
discussions, each with a different topic and
hosted by a subject expert. This format,
offering something for everyone, allowed
small groups to discuss specific strategies,
tactics, problems, and solutions. Topics included technology, customer retention, new
store openings, and a perennial challenge:
finding and keeping great employees. Attendees then moved on to lunch and more
networking in the Expo Hall.
After lunch, attendees gathered for the
final general session of the conference, featuring a panel led by multi-unit franchisee
Aziz Hashim, who queried two successful
multi-unit franchisees (Rob Branca, Dunkin’
Donuts, and Gary Robins, Supercuts)
and two franchisor executives (Kathleen
Gilmartin, CEO of Interim HealthCare,
and Jim Lyons, COO of Quiznos) about
private equity funding and its role in franchising. The conversation ran the gamut
from the pros and cons of PE money to
due diligence and contracts. “Due diligence
should go beyond just the financial side
of things to include really understanding
the franchise brand,” said Hashim. That

includes carefully assessing the brand’s
culture—something panelists agreed most
PE firms don’t do sufficiently.
Two rounds of breakout sessions completed the afternoon. Sessions covered timely
topics such as cost control, negotiating
leases, adding brands, local store marketing, and unit profitability. The session on
driving profitability by controlling costs
delved into how franchisees can maximize
their strengths and save time by automating processes for sorting, managing, and
paying bills, for example. Elsewhere, seasoned franchisees talked about avoiding
and dealing with lease negotiation pitfalls.
Franchisees Gary Grace (Supercuts) and
Laurel Wilkerson (Marco’s Pizza) shared
firsthand stories of how they deal with
landlords, fixed renewal rates, personal
guarantees, and more.
Attendees had one final chance to visit
with the exhibitors on Thursday evening.
Based on the crowds, the activity, and the
buzz in the room, franchisees and exhibitors alike appeared pleased with how business had gone inside the Expo Hall during
the conference.
Day 3, the checkered flag

As the conference drew to its close Friday
morning, Russ Umphenour led a closing
session entitled “Great Brands + Great
Franchise Partners = Franchise Partner
Profitability.” Umphenour, who once operated 775 Ar