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2017 MULTI-UNIT FRANCHISING CONFERENCE
Darrell Johnson
of sitting , attendees headed to the Opening Networking Reception in the Exhibit Hall , where more than 200 franchise brands and third-party suppliers were on display to discuss franchise opportunities , products , and services . The three-hour opportunity to explore new brands and learn about new solutions was facilitated with plenty of food and drink .
Day 2 : The economy Tuesday opened with a continental breakfast as attendees fueled up for Day 2 . Gary Gardner , chair of Franchise Update Media , and Conference Chair Perales welcomed the crowd and introduced the day ’ s first speaker : Darrell Johnson , CEO and president of FRANdata , who presented his annual report on economic trends and their effect on franchising .
“ It ’ s time to be more opportunistic than optimistic ,” he began . Touching on many factors affecting the economy and marketplace , he cautioned that in the area of capital markets , the next credit tightening cycle will arrive soon . Two financing trends he noted are the growth of alternative lenders , and a shift from relation-driven lending to data-driven lending .
On a positive note , he said , the franchising business model is doing “ very well ,” with publicly traded franchise companies outperforming the Russell indices for the past 11 years . And new brands are appearing almost daily , with about 300 new brands appearing each year . Many of the new brands , he added , are increasingly specialized and focused on subsectors . Also ,
he said , franchisors are offering strippeddown , lower-cost versions of their brands to allow easier entry .
Although many small-business owners were looking forward to a rollback of Obama-era regulation , the dysfunction of the new administration has disappointed many seeking quick relief from what they see as burdensome over-regulation . However , he reminded the crowd , even with a functional White House and Congress , “ political change takes years to put into practice .”
Other observations : 1 ) Transparency is a big issue in business today , and franchisors have responded : FPRs have risen from 47 to 66 percent in just the past 3 years . 2 ) Nontraditional units are boosting franchise growth . 3 ) Franchisors are providing more incentives to existing owners , such as reducing the franchise fee for additional units .
Summing up , he said , “ Franchise growth looks stable for the next year or two .”
MVP Awards The much-anticipated Most Valuable Performer ( MVP ) Awards ceremony recognized outstanding franchisees for their contributions to their brands , their organizations , their employees , and their communities . In a moving ceremony , honorees stepped up onto the stage and were presented with plaques honoring their achievements . Each winner is profiled in this issue , beginning on page 8 .
Ronnie Lott with his “ center ,” Don Rush
Woooo ! Ronnie Lott , after an introduction by Scott Hoots , vice president of franchising at American Family Care , made a dynamic entrance , running across the room and up onto the stage , football in hand , for his keynote address . Lott , a four-time Super Bowl champion with the San Francisco 49ers and known for his fierce on-field competitiveness , is considered one of the best safeties in the history of the game .
His talk focused on finding your passion . “ Are you willing to go the distance , give everything you can ?” he challenged . “ What do you think about every day ? What makes you feel passionate about being here today ? What makes you excited every day ?” he asked — adding that at age 57 , “ When I ran up here , I thought about wanting to be my best .”
Lott talked about “ Bringing Woooo !” to your life , meaning giving your best to whatever you do , every day . “ Some days you don ’ t want to get up , but you ’ ve got to get up and bring a little Woooo !,” he said , adding that everything he brought to football he now brings to his life .
He also spoke about the importance of getting like-minded people on your team and of the value of service . “ You can have it all but you have to serve ; you have to give it up to others ,” he said . And he ’ s been backing that up for more than 20 years with involvement in many philanthropic ventures .
External threats Lott ’ s high-energy presentation was followed by a general session panel , “ The New Normal : Legislation , Regulation , and Its Impact on Franchisees .” Gary Robins , a Supercuts franchisee , facilitated the panel , which consisted of Rob Branca ( Dunkin ’ Donuts franchisee ), Aziz Hashim ( NRD Capital ), and franchise attorney Michael Lotito ( Littler Mendelson ).
External threats from the federal , state , and municipal levels — from the NLRB to the ACA to minimum wage — are on the minds of franchisees nationwide . One problem the panel identified is the need to educate elected officials , policymakers , the media , the general public , and even employees of franchisees about what
66 MULTI-UNIT FRANCHISEE ISSUE III , 2017