Multi-Unit Franchisee Magazine Issue III, 2017 - Page 68

2017 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 break- fast 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 presi- dent of FRANdata, who presented his an- nual report on economic trends and their effect on franchising. “It’s time to be more opportu- nistic 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 financ- ing 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 outperform- ing the Russell indices for the past 11 years. And new brands are ap- pearing 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, Ronnie 66 MULTI-UNIT FRANCHISEE IS S UE III, 2017 he said, franchisors are offering stripped- down, lower-cost versions of their brands to allow easier entry. Although many small-business own- ers 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. How- ever, 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 fran- chisors have responded: FPRs have risen from 47 to 66 percent in just the past 3 ye ̸Ȥ9Ʌѥչ́ɔд)Ʌ͔ɽѠ̤Ʌͽ́ɔ)ɽ٥ɔѥٕ́Ѽѥݸ)̰Ս́ɕՍѡɅ͔)ѥչ̸)MյͅqɅ͔ɽѠ)́хȁѡЁ啅ȁȁݼt)5Y@݅ɑ)QՍѥѕ5ЁYՅAȴ)ɵȀ5Y@݅ɑ́ɕɕ镐)хɅ͕́ȁѡȁɥԴ)ѥ́ѼѡȁɅ̰ѡȁɝѥ̰)ѡȁ啕̰ѡȁչѥ̸)%٥ɕ䰁ɕ́ѕ)Ѽѡхݕɔɕ͕ѕݥѠ)Օ́ɥѡȁ̸ٕ)ݥȁ́ɽѡ́Ք))1ЁݥѠ̃qѕȳtI͠)])I1аѕȁɽՍѥ)MЁ!̰٥ɕͥЁɅͥ)Ёɥ ɔ幅)Ʌչɽ́ѡɽ)Ѽѡхщȁ)幽єɕ̸1аȵѥM) ݰݥѠѡMɅ͍(́ݸȁ́ɍ)ѥѥٕ̰́ͥɕѡ)Ёͅѥ́ѡѽ䁽ѡ)!́х͕ȁ̴)ͥqɔԁݥѼѡх)ٕٔѡԁt+q]ЁԁѡЁٕ䁑)]Ё́ԁͥєЁ)ɔѽ]Ё́ԁ፥ѕ)ٕ䁑tͭQѡЁЁ(ܰq]$Ʌɔ$ѡ՝Ё)݅ѥѼ䁉лt)1ЁхЃq ɥ]t)Ѽȁ٥ȁЁѼ)ݡѕٕȁԁٕ䁑七qM)ԁeЁ݅ЁѼЁЁ׊eٔ)ѼЁɥѱ]t)ͅѡЁٕѡɽ՝ЁѼ)щ܁ɥ́Ѽ́)!ͼЁѡх)ѥ)ѕѡمՔ͕٥qe)ٔЁЁԁٔѼ͕ٔ)ٔѼٔЁѼѡ̳tͅ)éѡЁȁɔѡ(啅́ݥѠٽٕЁ)ѡɽٕɕ̸)ѕɹѡɕ)1ӊéɝɕ͕хѥ)݅́ݕ䁄Ʌ͕ͥ)qQ9܁9ɵ1̴)ѥIձѥ%́%)Ʌ͕̻tḬ)Mɍ́Ʌ͕хѕ)ѡݡͥѕI) Ʌչd́Ʌ)͕!͡9I х)Ʌ͔ѽɹ5)1ѥѼ1ѱȁ5ͽ)ѕɹѡɕ́ɽѡ)ɅхєչٕϊP)ɽѡ91IѼѡ Ѽ)մ݅Qɔѡ)Ʌ͕́ѥݥ=)ɽѡѥ)ѡѼՍєѕ)̰嵅̰ѡ)ѡɅՉٕ)啕́Ʌ͕́Ёݡ