Shipley Do-Nuts’ Post

Insightful article in the Franchise Times about how Ahsan Mehmood, his sister Noor Zahid, and college friend Chandler Gottlieb founded an Acai concept, Palm Berries, and have been tackling sustainable growth. Perhaps the most important takeaway in this piece by Matthew Liedke is when Noor stated "We decided to go that route [franchising], with a focus on replicating this model and simplifying it to where anyone can run it. We didn't have business or ownership experience before this, so we figured if we can do this, we can help others own one, too." As emerging brands begin their franchising journey, simplicity/reciprocity of operations and focusing on the success of your franchisees, is crucial in ensuring the longevity and advancement of your business. Looks like the team over at Palm Berries has created a great foundation for growth, I'm excited to see where this budding business goes! #franchising #growth https://lnkd.in/gGj8HMiH

How ROLLER Is Helping Altitude Scale Their Franchise Locations to Save Operators Time “I can be on airplane wifi and log in - it's just that simple.” For busy franchise operators, having a cloud-based platform like ROLLER that streamlines operations across multiple venues is critical. Check out how ROLLER has helped franchisees of Altitude Trampoline Parks save time and money.

Let's take a look on this amazing Friday at some of the most informative general franchise statistics from the industry. 🧨 𝐌𝐜𝐃𝐨𝐧𝐚𝐥𝐝’𝐬 𝐢𝐬 𝐬𝐭𝐢𝐥𝐥 𝐭𝐡𝐞 𝐥𝐚𝐫𝐠𝐞𝐬𝐭 𝐟𝐫𝐚𝐧𝐜𝐡𝐢𝐬𝐞 𝐢𝐧 𝐭𝐡𝐞 𝐰𝐨𝐫𝐥𝐝. The world’s biggest franchising success story is more than 60 years old. McDonald’s now has more than 38,000 locations worldwide and employs nearly two million people. In an effort to meet the needs of customers, the food franchise is evolving by investing in tech. In 2019 alone, the company struck a $300 million acquisition deal with a personalization and decision logic technology firm. That was followed by the purchase of stakes in several companies that develop mobile apps, mobile payment systems, and even artificial intelligence. 𝐒𝐮𝐛𝐰𝐚𝐲 𝐡𝐚𝐬 𝐦𝐨𝐫𝐞 𝐥𝐨𝐜𝐚𝐭𝐢𝐨𝐧𝐬 𝐭𝐡𝐚𝐧 𝐌𝐜𝐃𝐨𝐧𝐚𝐥𝐝’𝐬. There are more than 41,000 Subway restaurants in the world. That means that the company opened, on average, two new restaurants every day since it was founded in 1965. The company also sells 7.6 million sandwiches every day. 7-𝐄𝐥𝐞𝐯𝐞𝐧 𝐨𝐰𝐧𝐬 𝐦𝐨𝐫𝐞 𝐭𝐡𝐚𝐧 71,000 𝐮𝐧𝐢𝐭𝐬. McDonald’s might be the most popular franchise, but the top spot for the number of locations goes to the retail chain 7-Eleven. The company recently opened its 71,100th store, which is located in South Korea’s capital, Seoul. 7-Eleven has stores in 17 countries across the globe 𝐓𝐡𝐞 𝐇𝐞𝐫𝐭𝐳 𝐂𝐨𝐫𝐩𝐨𝐫𝐚𝐭𝐢𝐨𝐧 𝐨𝐩𝐞𝐫𝐚𝐭𝐞𝐬 𝐢𝐧 𝐦𝐨𝐫𝐞 𝐜𝐨𝐮𝐧𝐭𝐫𝐢𝐞𝐬 𝐭𝐡𝐚𝐧 𝐚𝐧𝐲 𝐨𝐭𝐡𝐞𝐫 𝐟𝐫𝐚𝐧𝐜𝐡𝐢𝐬𝐞. Its offices are located in 150 states across the globe. Founded in Chicago in 1918, this car rental franchise is now present on all continents with more than 10,000 units. It was originally known as Rent-A-Car Inc. with a humble offering of just a dozen Model T Fords. 𝐀𝐧𝐲𝐭𝐢𝐦𝐞 𝐅𝐢𝐭𝐧𝐞𝐬𝐬 𝐢𝐬 𝐭𝐡𝐞 𝐟𝐢𝐫𝐬𝐭 𝐟𝐫𝐚𝐧𝐜𝐡𝐢𝐬𝐞 𝐫𝐞𝐩𝐫𝐞𝐬𝐞𝐧𝐭𝐞𝐝 𝐨𝐧 𝐬𝐞𝐯𝐞𝐧 𝐜𝐨𝐧𝐭𝐢𝐧𝐞𝐧𝐭𝐬. It may not be considered the best franchise in the fitness industry, but Anytime Fitness has really gone somewhere nobody else dared to go. To Antarctica. Just because there’s too much ice, doesn’t mean the company’s growth has to stop. By opening a studio on the cruise ship Magellan Explorer, the franchise owners can say they have the coolest gym in the world. Out of the top 10 franchises today, only three aren’t food related. #franchising #facts #history #LIfranchising #business #food

Franchisors are finding creative ways to reignite their development pipelines by utilizing alternative real estate options. With the pandemic causing uncertainty in traditional commercial real estate, franchises are pivoting to non-traditional locations such as airports, universities, and hospitals. This strategy allows for more visibility and exposure to customers, ultimately driving revenue for the franchise. #franchisingstrongertogether #franchiseconsultant  

As Footprints Floors marks its 15th anniversary, Founder and CEO Bryan Park sat down with Franchising Magazine USA to reflect on his journey from a garage start-up in Colorado to a nationally recognized flooring franchise. Now, with over 150+ territories, a thriving network of 87 franchisees, and a new spot on the National Wood Flooring Association Board of Directors, Bryan couldn't be more proud of what the Footprints Floors team has accomplished. Here's to continued growth and impact! Check out the full article below for a deeper look into Footprints Floors' journey and future plans. #flooring #denver #flooringfranchise #franchise #homefranchise

Subway, the sandwich giant is set to mandate all its U.S. franchisees to honor digital coupons and promotions. This move, following Subway's acquisition by Roark Capital, marks a shift from the previous autonomy given to franchise owners in setting prices and deals. This decision comes as part of Subway's strategy to revitalize its brand and sales, especially after the challenges of recent years. Starting December 28, expect more Subway discounts as the company aims to boost foot traffic and customer satisfaction. Will this new approach help Subway regain its competitive edge in the fast-food industry? Only time will tell. #Subway #Franchising #BusinessStrategy #RetailTrends

How does a brand like Subway reach a $9.6B deal value? Let's break it down: 1. Franchised restaurant concepts of this size can fetch anywhere from 14x -19x or more for the franchise royalty stream alone. (YES, the multiple is high. It's because the royalty stream is viewed as less "risky" as it is backed by a franchise agreement, and thus is treated more like an annuity in a DCF model. Of course, in due diligence, a franchise system is fully vetted to find issues and risk factors for the royalty stream, possibly reducing the multiple.) 2. The franchise royalty is reported to be 8 - 8.5% of gross sales for Subway, which is 100% franchised. (Note, the franchise royalty rate may also vary internationally and in the case of non-traditional deals such as airports, hospitals, etc.) 3. Recent 2022 reports had top-line revenues of $16.1B and reported a same-store sales increase 9.2% globally and 7.8% in North America. (Showing such high same-store sales growth in the year before a sale is a total flex. Bravo.) You can do your own math here, but that's where that deal size comes from. What I find fascinating is that deals like this have a small buyer pool - not many PEs can write this check. Even fewer are in the restaurant and franchised space. I love seeing M&A activity back with a BANG! Our industry is very resilient, consistently growing, and one of the largest employers in the US. We're not going anywhere, and there are plenty more pent-up deals teed up for action right behind this one. Equity groups are sitting on a lot of dry powder to deploy, waiting for market conditions to stabilize and banks to provide leverage for their deals. I'm excited to see what else this year has in store for our industry. #investor #consultant #restaurants #restaurantindustry #investing #privateequity #franchising #franchise

Excited to announce multiple franchise resales system wide last week including Rosati's Pizza in Arizona, Marco's Pizza (Marco's Franchising, LLC) in Michigan and Hungry Howie's Pizza in Georgia. Wow! Seems like it was a big Pizza Week. Our relationships with brands like these allow them to achieve net restaurant growth. They are retaining and transferring existing units with the help of We Sell Restaurants while their development team focuses on new unit sales. If you are going to be at the International Franchise Association Superbowl of events next week in Arizona, let's talk about a resale strategy as part of your commitment to responsible franchising. There are many reasons you want to focus on this strategy including: ➡ The National Restaurant Association's 2024 State of the Industry reported that 38% of all operators say they are not profitable. As a franchisor, responsible franchising means you need to provide a way out for those who are not successful. ➡ America is aging and a "Silver Tsunami" is upon us. 10,000 Baby Boomer each DAY are turning 65 between now and 2030. If you don't have an exit plan for these boomers, they may simply shut down when the lease and franchise term are over, resulting in negative net restaurant growth. ➡ It is taking longer than ever to launch new units meaning your store counts on this year's FDD may reflect "Sold not Open" at higher counts. Don't let the total sum of your units also be negatively impacted by closures or doors that go dark. ➡ Failure rates of existing units will impact financing for new units. Do you know that We Sell Restaurants can work with the SBA to negotiate a "workout" if your franchisee is under water? ➡ Responsible franchising means a brand that is consistent with brand standards. None of us have a crystal ball and the candidate you thought was ideal at Discovery Day may not be working out. This affects the reputation of the brand and other franchisees along with the customer experience. It also impacts validation. Responsible franchising includes offering a path forward and sometimes that means working to help some owners exit. We have the tough conversations, perform free and confidential valuations and help both of you achieve a better outcome. Now that's responsible franchising! Message me to talk about your brand's resale program and I'll look forward to seeing you in Phoenix. #WeSellRestaurants #Restaurants #restaurantindustry #Franchise #ResponsibleFranchising

Frantober Fest 2023 Reflections I had the privilege of attending FranNet’s 2023 Frantober Fest in Cincinnati, Ohio. Beyond the enlightening discussions on franchising with industry experts, it was a fantastic platform to nurture relationships and, yes, indulge in a bit of fun. Such events provide a spirited launch into Q4! In a rapidly shifting landscape where AI's influence looms large, and global events have continuously reshaped our approaches, the franchising industry stands tall, reflecting its inherent resilience. Here are some key takeaways I'd love to share: 🔍 Adaptive Growth: In the face of pandemic-induced challenges, the franchise world has displayed remarkable adaptability. The panorama of growth varies, but the prevailing sentiment is one of optimism and resurgence. 🌿 Health & Wellness Ascends: A surge is evident in the health and wellness domain. More franchises are tapping into the fitness arena, promoting healthy diets, and advocating holistic wellness. This reflects our collective yearning for a healthier, more balanced lifestyle. 📘 Empowerment Through Training: Franchisors are significantly amplifying their training efforts, ensuring their franchisees are not just well-informed but are truly empowered to thrive. 🌐 Semi-Passive Opportunities: A noteworthy trend is the rise in semi-passive franchising opportunities, signaling a shift in franchisor offerings. As November unfolds, stay tuned! I'll be spotlighting some lesser-known yet highly promising franchise opportunities that might just pique your interest. Let me know in the comments what you would like for me to share over the next month!

It was great to speak to franchise director of The Kitchen Depot Graham Bucktrout and find out about the company's plans for growth. He explains why now is the right time for entrepreneurs to start a franchise business. #retail #franchise #retailers #kitchens