Multi-Unit Franchisee Magazine Issue IV, 2016 - Page 8

Chairman ’ sNote

Time To Adapt

The environment franchising operates in is

changing , with external threats to the business model coming from more sides than ever . To survive and continue to grow , we must adapt . The usual concerns — financing growth , recruiting and retaining good employees , finding the best sites for our stores — are problems we ’ re used to , and successful operators are adept at solving them . They ’ re the “ perennials ,” coming up year after year .
What ’ s new is what many in franchising see as overregulation by elected officials and appointed governmental agencies — most of whom don ’ t understand the day-to-day realities of running a business . They mean well , but the unintended consequences of their good intentions are hurting not only franchisees , franchisors , and other small businesses , but often the very people they ’ re trying to help : our employees .
At the recent Multi-Unit Franchising Conference Advisory Board meeting in Washington , D . C ., all these concerns and more were on the minds of board members planning the agenda and theme for next spring ’ s conference . Fittingly , the meeting took place during the IFA ’ s annual Franchise Action Network ( FAN ) meeting and lobbying on Capitol Hill . Protecting the franchise business model requires franchisees and franchisors to work together to help Washington , D . C ., understand our concerns .
At the federal level , the NLRB and the Dept . of Labor have promulgated rulings on joint employment , overtime pay , collective bargaining , and unionization . States also are getting into the act more aggressively and changing the rules of the game , especially in bellwether states like California . Even cities are getting into the act , passing minimum wage and scheduling regulations that apply there , but not in the rest of the state .
For franchisees with units in many states , the problem of compliance and vulnerability to lawsuits multiplies . And now , with cities such as Seattle and San Francisco instituting their own rules , managing an expansive franchisee organization is more difficult than ever because of changes in the external environment .
What franchisees can manage and control is what goes on inside their four walls and organizations . This is what board members are focusing on : run-
ning a tighter ship and adapting to legal and regulatory changes . Externally , franchisees must be more active in educating our politicians about the benefits of franchising , from our contributions to the local and national economy to our value as a training ground for young people in their first job .
The 2017 Multi-Unit Franchising Conference will tackle these issues and more head-on , providing the most up-to-date expertise on how to adapt , survive , and continue expanding in what increasingly feels like a hostile environment . Attendees can learn from one another — not only about the brands we like or how to be the employer of choice in our markets , but also how to plan for the regulatory changes coming down the road .
This opportunity to meet and learn from our peers is an important reason I attend the conference each year . And I ’ m not alone : more than 50 percent of attendees say they come for the networking opportunities . From our fellow franchisees we can learn the best sources of financing to meet our current needs ; which brands and markets are hot ; real estate conditions in cities we ’ re considering ; and how to attract and retain the best talent for our growing companies in a tight labor market . And build lifetime connections .
Last year we introduced a meet-and-greet event for first-time attendees on the evening before the conference . First-timers welcomed by board members and Franchise Update staff said it made a big difference and we plan repeat this next year .
Finally , I ’ m excited to announce that Marcus Lemonis , star of “ The Profit ,” a CNBC reality show about saving small businesses , will be a keynote speaker . Lemonis , a serial entrepreneur himself , understands the everyday challenges of running a small business , and by the end of the first three seasons had invested $ 35 million in the small businesses featured on the show . Prepare to be inspired .
This year ’ s conference attendance of 1,566 included 652 franchisees who represented more than 12,000 units and $ 11 billion in revenues — and the conference continues to grow each year . You ’ ll be in excellent company . Registration is now open . See you next April in Vegas !
Guillermo Perales CEO / Founder , Sun Holdings
2017 Conference Chair
6 MULTI-UNIT FRANCHISEE ISSUE IV , 2016
Chairman’sNote Time To Adapt T he environment franchising operates in is changing, with external threats to the business model coming from more sides than ever. To survive and continue to grow, we must adapt. The usual concerns—financing growth, recruiting and retaining good employees, finding the best sites for our stores—are problems we’re used to, and successful operators are adept at solving them. They’re the “perennials,” coming up year after year. What’s new is what many in franchising see as overregulation by elected officials and appointed governmental agencies—most of whom don’t understand the day-to-day realities of running a business. They mean well, but the unintended consequences of their good intentions are hurting not only franchisees, franchisors, and other small businesses, but often the very people they’re trying to help: our employees. At the recent Multi-Unit Franchising Conference Advisory Board meeting in Washington, D.C., all these concerns and more were on the minds of board members planning the agenda and theme for next spring’s conference. Fittingly, the meeting took place during the IFA’s annual Franchise Action Network (FAN) meeting and lobbying on Capitol Hill. Protecting the franchise business model requires franchisees and franchisors to work together to help Washington, D.C., understand our concerns. At the federal level, the NLRB and the Dept. of Labor have promulgated rulings on joint employment, overtime pay, collective bargaining, and unionization. States also are getting into the act more aggressively and changing the rules of the game, especially in bellwether states like California. Even cities are getting into the act, passing minimum wage and scheduling regulations that apply there, but not in the rest of the state. For franchisees with units in many states, the problem of compliance and vulnerability to lawsuits multiplies. And now, with cities such as Seattle and San Francisco instituting their own rules, managing an expansive franchisee organization is more difficult than ever because of changes in the external environment. What franchisees can manage and control is what goes on inside their four walls and organizations. This is what board members are focusing on: run- 6 ning a tighter ship and adapting to legal and regulatory changes. Externally, franchisees must be more active in educating our politicians about the benefits of franchising, from our contributions to the local and national economy to our value as a training ground for young people in their first job. The 2017 Multi-Unit Franchising Conference will tackle these issues and more head-on, providing the most up-to-date expertise on how to adapt, survive, and continue expanding in what increasingly feels like a hostile environment. Attendees can learn from one another—not only about the brands we like or how to be the employer of choice in our markets, but also how to plan for the regulatory changes coming down the road. This opportunity to meet and learn from our peers is an important reason I attend the conference each year. And I’m not alone: more than 50 percent of attendees say they come for the networking opportunities. From our fellow franchisees we can learn the best sources of financing to meet our current needs; which brands and markets are hot; real estate conditions in cities we’re considering; and how to attract and retain the best talent for our growing companies in a tight labor market. And build lifetime connections. Last year we introduced a meet-and-greet event for first-time attendees on the evening before the conference. First-timers welcomed by board members and Franchise Update staff said it made a big difference and we plan repeat this next year. Finally, I’m excited to announce that Marcus Lemonis, star of “The Profit,” a CNBC reality show about saving small businesses, will be a keynote speaker. Lemonis, a serial entrepreneur himself, understands the everyday challenges of running a small business, and by the end of the first three seasons had invested $35 million in the small businesses featured on the show. Prepare to be inspired. This year’s conference attendance of 1,566 included 652 fran ͕́ݡɕɕ͕ѕɔѡȰ)չ́āɕٕՕϊQѡɕѥՕ́Ѽɽ܁啅ȸe׊eፕ)丁IɅѥ́܁MԁЁɥ)Ȳ()եɵAɅ) <չȰMո!(܁ ɕ ()5U1Q$U9%PI9 !%M%LLU%X()՘}}ɵ͹єؤ((ؼ؀؁A4((0