Multi-Unit Franchisee Magazine Issue III, 2017 | Page 72

2017
2017
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MULTI-UNIT FRANCHISING CONFERENCE
Matt Haller, Shelly Sun, Matthew Patinkin, Catherine Monson, Ron Feldman
lier this year, listed three main goals for
the IFA in 2017: 1) increase engagement
with franchisees; 2) increase the visibility
of FranPac; and 3) increase support for
emerging franchisors (fewer than 100
units). “Most franchisors don’t make money
until they have more than 100 units,” she
said, which is dangerous to franchisees and
their employees.
Patinkin said that while there has been
no major effect yet from the NLRB’s joint
employer rulings, it has created uncertainty
and is a huge disruptor. “We talk about it
at all our meetings, which is money and
time spent on issues that don’t benefit our
company. We want to talk about operations
and making money.”
Monson said that although Fastsigns
has never been a joint employer, “We have
made some significant changes.” She said
Fastsigns has stepped back from delivering
some services the brand used to provide
franchisees, on the advice of her attorneys.
“We don’t do that any more, and it breaks
my heart,” she said.
Sun echoed that sentiment, saying there
are “things we’ve stopped doing” because
of the new NLRB rulings. For example,
BrightStar used to provide and pay for an
2017 MVP Award winners
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MULTI-UNIT FRANCHISEE IS S UE III, 2017
applicant tracking solution its franchisees
could use. But “joint employer forced us
to find a different company for this soft-
ware—adding thousands of dollars to our
franchisees,” she said. “We were willing to
pay for it. We felt we were providing valu-
able guidance.”
Feldman said the NLRB rulings have also
affected franchise lending, valuations, and
the pace of development. “If joint employ-
ment succeeds, every franchisee’s business
will be devalued—and there will be fewer
Gary Gardner, Therese Thilgen and
Ronnie Lott
people in the pool to buy your business.”
He said so far the winners have been the
lawyers and the third parties franchisors
are now using to provide the support and
services they used to do themselves.
Monson pointed out that franchising
has data on its side. “But that’s not what
moves hearts and minds,” she reminded
attendees. “We need to tell the stories of
small businesses—personal stories.” For
instance, how you used to work in a ter-
rible job, but now you’re your own boss,
hiring entry-level employees who now are
managers or have their own units, and how
the rejiggered definition of joint employer
is threatening the livelihoods of everyone
in your business.
The conference’s Platinum Sponsors
were Arby’s and Jersey Mike’s. Gold Sponsors
this year were Bojangles’, Buffalo Wings &
Rings, Carl’s Jr./Hardee’s, Dunkin’ Brands,
IFA, La Madeleine, Toppers Pizza, and
Zaxby’s. More than 220 franchise brands
and suppliers sponsored the event.
Next year’s conference will take place
at Caesars Palace April 3–6, 2018. Visit
multiunitfranchisingconference.com for
a look back at this year’s conference, and
for details on registering for next year.