Franchises in the News

The Cebu Franchise Expo reported on comments made by Consultancy, Inc. founder Rudolf Kotik. Their comments include some interesting statistics about the franchise market in the Philippines:

  • The Philippine franchising sector is expected to continue growing at double-digit rates.
  • Kotik estimated that 10,000 franchises were sold nationwide in 2014. On average, this increases by 10 to 20 percent yearly
  • 60 percent of Philippine franchises are in the food industry.
  • Barriers to entry for Filipinos are: fundamental lack of understanding about franchises including regulations and training, the cost of entry (P250,000 to P15 million), and the procurement program.

Franchise Sector Still on High Growth Path Cebu Daily News Mar 6, 2016

The Indiana Senate unanimously passed new legislation addressing veterans’ businesses. House Bill 1312 defines and expands the term veteran allowing veteran-owned businesses to qualify for a preference in state contracts. The bill additionally does away with the one year residency requirement to be eligible to bid on a state contract. Supporting Veteran Business The Paper Mar 2, 2016

Florida franchise law is at the center of a court case involving Nissan. Under Florida law, franchisors are prohibited from favoring particular dealers “by providing incentives that are not available on an equal basis to all other dealers of the same line-make.” South Motors Infiniti of Palmetto Bay, Florida is arguing that dealer Bernie Moreno is receiving special incentives to open an Infiniti point in Coral Gables, Florida. Moreno claims the incentives do not give him an advantage, rather they protect him from being underwater due to extraordinary operating costs. The case is scheduled to be heard by the First District Court of Appeal in Florida. Dealership: Nissan’s at Odds with Fla. Franchise Law Automotive News Feb 22, 2016

The International Franchise Association kicked off its 56th annual convention in San Antonio with more than 3,500 attendees. Robert C. Cresanti, president and CEO of the International Franchise Association, said the onslaught of government regulation “darkens the skies and undermines the success of franchising.” IFA’s concerns include increasing local and state minimum wage increases, recent ruling from the National Labor Relations Board on joint-employer status and provisions of the Affordable Care Act. IFA Convenes Amid ‘Challenging Times’ Nation’s Restaurant News Feb 22, 2016

An analysis by 1851 Franchise and Boefly shows that franchises want to come to Hawaii. Their study also showed that Hawaii ranks fourth in the nation as a desirable location for expansion. Nick Powills, publisher of 1851 Franchise, isn’t sure how many franchises actually end up setting up in the state, but said, “from a focal point it is quickly in the top 10 to15 states.” Hawaii Ranks 4th in the Nation for Franchises Looking to Expand Pacific Business News Feb 19, 2016

Expedia CruiseShipCenters, part of Expedia, Inc., one of the largest travel companies in the world, has a record-setting year in 2015. The company intends to continue its growth through 2016 by awarding 45 new franchises. Expedia CruiseShipCenters “is seeking franchise partners in the metropolitan and surrounding areas of New York, with 35 franchise locations available, Orlando, with nine locations available, Los Angeles with 20 locations available, San Francisco with 14 locations available, Atlanta with 13 locations available, and Seattle with 15 locations available. Within easy driving distance of cruise departure ports, these cities have demographics that provide the ideal foundation for a new travel agency franchise. By 2020, Matthew Eichhorst, President of Expedia CruiseShipCenters, believes the company will tout 500 retail locations in total with 300 in the United States and 200 in Canada.” Expedia® CruiseShipCenters® Expects Wave of Franchise Growth in 2016 Business Wire Feb 17, 2016

Toppers’ ranked second on the PMQ/Technomic 2015 Pizza Power Report of sales percentage increases of the top 50 chains, with Papa John’s, Domino’s and Pizza Hut not even cracking the top five. Now, as Toppers closes out its record-breaking year and sets its sights on 2016, the brand’s goal is to gain an even bigger piece of the market share pie. Backed by Strong Franchise System, Toppers Pizza Steals Market Share; Plans Industry Domination PRWeb Feb 15, 2016

Pizza Patrón announced that it is launching its ‘Veterans Por Favor’ program. The program waives all franchise fees for veterans on their first restaurant with the chain. The program is for qualified, honorably discharged veterans. It fully waives the $20,000 in franchise fees for the first restaurant to give veterans an enormous boost into business ownership with a rock-solid thirty year old chain. Pizza Patron Launches Veterans Por Favor Feb 15, 2016

More than 200 brands to showcase their prospects during the World Franchise Forum and Expo, a premier event for franchising leads and opportunities in the Mena region, set to open tomorrow (February 16) in Dubai, UAE. World Franchise Forum to Highlight Mena prospects Trade Arabia Feb 15, 2016

The tenth annual Franchise Expo South features 200 franchise brands looking to expand in the Houston market. Tom Portesy is with MFV Expositions, which is staging this three-day event at the NRG Center. “You know, we’ll certainly have the Papa Murphy’s Pizza and the Carl’s Junior and the Hardy’s. But we’ll also have some up and coming franchises that you may not have heard of — senior care, you’ll have pet care, you’ll have child care. Franchising now touches just about every industry. Franchise Expo Features Companies Anxious To Expand Into Houston Houston Public Media Feb 12, 2016

Irvine-based St. Joseph Health announced Monday that it purchased 26 Nurse Next Door franchises. The agreement will allow St. Joseph to provide thousands with home care services. The hospital has the option to buy 12 more. St. Joseph Buys Home Health Franchise The Orange County Register Feb 8, 2016

The Franchise King offers three things you need to know about franchise businesses that are for sale:

  1. Most franchise resales aren’t advertised.
  2. You may not find out the true reason the franchise was for sale until after you buy it.
  3. Financing an existing business can go either way.

Biz Tip of the Week: About Buying a Franchise Resale Arizona Daily Star Feb 7, 2016

For the second consecutive year, AAMCO Franchise, one of the world’s largest chains of transmission specialists, has been ranked as the No. 1 franchise in its category in Entrepreneur magazine’s 2016 Franchise 500. The ranking aims to reveal the impact of the newest trends and industries poised for growth. AAMCO Franchise Ranks No. 1 Transmission Repair In Entrepreneur’s Franchise 500 After Market News Feb 4, 2016

The Canadian Franchise Association (CFA) will host its second Calgary exhibition this weekend, and organizers say their pre-registration numbers are indicating significantly stronger interest than 2015 despite continuing economic turmoil. Franchise Show Expects Increase in Attendance Despite Economy Calgary Herald Feb 4, 2016

United Franchise Group Introduces Two New Brands At Franchise Expo South In Houston

  1. Venture X provides fully furnished private office suites, meeting rooms and virtual offices with no leases required feature a professional, modern office-style design blended with a boutique-hotel hospitality image.
  2. John Smith Subs offers a delicious variety of traditional giant deli subs and other grilled specialties.

PRNewswire Feb 4, 2016

FASTSIGNS International, Inc., has begun 2016 with another impressive notch added to its belt. The worldwide franchisor for more than 600 FASTSIGNS® sign, graphic and visual communications centers, has been ranked No. 1 on the Franchise Gator Top 100 Franchises of 2016. FASTSIGNS® Named No. 1 Franchise on Franchise Gator Top 100 List Feb 3, 2016

Banks will often consult with a publication called the Coleman Report to determine if they’ll lend to you as an aspiring franchisee. A chart, courtesy of Coleman Report, shows a baker’s dozen of franchise brands that all enjoyed little or no failure over a 9-year period.

According to a recent American Customer Satisfaction Index, the highest rated restaurant in the US is Chick-fil-A. Chick-fil-A uses a very unusual system for their stores. The proprietor is called an operator. He or she is put into business by Chick-fil-A and shares in profits for the store, but serves at the pleasure of Chick-fil-A. Franchise Ownership: Is It Right for You? Clark Howard Feb 2, 2016

The National Labor Relations Board (“NLRB”) made two rulings on the “joint employment” [1] test that could potentially have far-reaching financial and legal implications on the franchise business model. On August 14, 2015, in McDonald’s USA, LLC, a joint employer, et al., [2] the NLRB denied McDonald’s request to challenge or strike NLRB General Counsel Richard Griffin’s expansive new definition of “joint employer.” Using this definition, the General Counsel alleged that McDonald’s is a joint employer with its franchisees, due to McDonald’s right to control certain employment and personnel matters of its franchisees. ‘Twas the 2016 Franchise Renewal Season…and Labor and Regulatory Matters are Stirring Throughout the Franchise Model K&L Gates Feb 2, 2016

Below is a list of 12 different franchises in three of the most popular industries that are poised for success in 2016.

  1. In-Home Care Franchises
  2. Restaurant Franchises
  3. Personal Care and Improvement Franchises

The Top 12 Franchise Opportunities in 2016 Intuit Quickbooks Feb 2, 2016

Franchise ownership can be a dicey proposition, with some chains having great success rates and others having abysmal failure rates. Banks will often consult with a publication called the Coleman Report to determine if they’ll lend to you as an aspiring franchisee. Below is a chart courtesy of Coleman Report showing a baker’s dozen of franchise brands that all enjoyed little or no failure over a 9-year period. Franchise Ownership: Is It Right for You? Clark Howard Feb 2, 2016

On the flip side, 10 franchises had some of the highest failure rates during another recent 9-year period include: Wings-N-Things (82% failure rate);  Noble Roman Pizza (76% failure rate); Super Suppers (69% failure rate); Golf Etc. (59% failure rate); New York NY Fresh Deli (57% failure rate); Velocity Sports Performance (53% failure rate); My Gym (51% failure rate); Image Sun (50% failure rate); Steak Escape (50% failure rate) and Wireless Toyz (47% failure rate). Franchise Ownership: Is It Right for You? Clark Howard Feb 2, 2016

Burger 21®, an award-winning, “beyond the better burger” fast casual franchise, announced today the signing of its first franchise agreement in Arkansas. The Tampa, Fla.-based company plans to open a single unit in Little Rock, Ark. In addition, Burger 21 signed a franchise agreement to open one restaurant in Athens, Ga. This latest development expands the brand’s national footprint to 11 states. Burger 21 Signs Franchise Agreement To Develop First Arkansas Restaurant In Little Rock PR Newswire Feb 2, 2016

Todd Beckman, President and CEO of BAM Brands, the company that operates Tanco, MassageLuXe, and Xist Fitness has built up yet another franchise for a successful buyout.  Xist Fitness, with over 300 locations sold, just sold locations to the Planet Fitness Midwest Franchise Group for an undisclosed number. Franchise Brand Developer Todd Beckman Closes Another Major Deal PR Newswire Feb 2, 2016

Sydnee’s Pet Grooming, which opened its first location in 2011 in San Marcos, was named a NextGen Leader in Franchise Businesses by the International Franchise Association. The company was also named a top franchise brand in 2016 by Nat Srisark, a Murrieta resident who founded the brand with wife, Kim, said they chose to open a grooming business after seeing a lack of high quality groomers in the U.S. San Diego-Based Company Named Top Franchise Brand Times of San Diego Feb 1, 2016

BIP Capital, an Atlanta-based venture capital firm, today announced it has launched a franchise development division, the BIP Franchise Accelerator, to help emerging brands accelerate their growth. Currently, the BIP Franchise Accelerator’s portfolio includes fast casual concepts Tropical Smoothie Café and Tin Drum Asian Kitchen, and the company is seeking to invest in brands with high growth potential across all franchise segments. BIP Capital Launches Franchise Development Division PRNewswire Feb 1, 2016

Coming off its best year in company history, Pizza Patrón today announced that on Monday, February 1, it is re-launching its franchise program after having shuttered it in 2013. Pizza Patrón Serves Up Franchising After Three Year Shutdown Restaurant News Release Feb 1, 2016

The number of franchise establishments in the United States will increase at the same pace it did in 2015—about 1.7%. Employment will increase over 3%. The overall economic output of the franchise industry is expected to jump 5.8% to $944 billion—the fastest pace since before the Great Recession. Report: Franchise Businesses Will See Steady Growth Of 1.7 % In 2016 (But Is That Too Optimistic?) Forbes Jan 31, 2016

For small business hopefuls thinking of buying into a franchise – or franchise entrepreneurs looking to expand their holdings – there are no glaring reasons not to pull the trigger this year. So says the International Franchise Association’s (IFA) latest report on what to expect from the US franchise space in 2016. The predication: growth across the board. Report: Franchise Businesses Will See Steady Growth Of 1.7 % In 2016 (But Is That Too Optimistic?) Forbes Jan 31, 2016

More than a few observers walked away from Gov. Phil Bryant’s State of the Statespeech believing they’d heard the second-term Republican oppose plans for this year’s Legislatureto cut the $242-million-a-year corporate franchise tax. The governor, though, says that’s not true — it’s more a matter of emphasis. Bryant Says He’d Sign Corporate Franchise Tax Cut Hattiesburg American Jan 31, 2016

Out of more than 30 pizzerias that applied to be considered for Entrepreneur’s 2016 Franchise 500 listing, Toledo, Ohio-based Marco’s Pizza logged the greatest domestic growth, beating out industry giants such as Pizza Hut and Papa John’s. How This Pizza Company Grew to Become a Bigger Slice of the Pie Entrepreneur Jan 30, 2016

In an era when industry leaders are offering two pizzas for as little as $10, Papa John’s — the country’s fourth biggest pizza chain in terms of market share — says it will launch an aggressive campaign to win more customers by making the case that spending a a few more bucks on your pie is worth it. Papa John’s Tries New Tack to Challenge Pizza Hut, Domino’s for Pizza Supremacy USA Today Jan 30 2016

African-American owners make up just 3% of franchise owners, according to Eric Stites, CEO and Managing Director of the Franchise Business Review, an independent franchise market research firm, based on a survey of 27,000 franchises over the last 18 months. Overall minority representation is about 20%. Black Female Franchise Owner Battles ‘Cement Ceiling’ in Quest for Success USA Today Jan 30, 2016 

A former co-owner of a Long John Silver’s franchise in Fredericksburg faces charges of embezzlement and failure to file meals taxes. Sidney V. Wormsby, a 57-year-old Brooklyn, N.Y., resident, was extradited to Fredericksburg on Wednesday, according to Fredericksburg Police Department spokeswoman Sarah Kilpatrick. Former Long John Silver’s Franchise Co-Owner Faces Embezzlement, Meals Tax Charges Jan 30, 2016

Alair Homes, a construction management franchise that specializes in custom homes and remodels, is aiming to enter the desert market in the next few months. At the end of 2015, Alair had 72 affiliated offices in the U.S. and Canada, said chief communications officer Adam McCaa. This year, they hope to add 100 more. Alair Homes, High-End Building Franchise, Eyeing Desert The Desert Sun Jan 29, 2016

Drama Kids is the exclusive provider of the Helen O’Grady franchise system in the U.S. We have been developing franchises in the United States since 2000, using Helen’s program as its foundation, while carefully customizing the concept for the specific demands of the U.S. market. Today there are over 50,000 students currently enrolled worldwide, with over 10,000 students now enrolled in the United States! This makes Drama Kids the largest after-school drama program in the U.S. and we are excited about the significant growth to come. Drama Kids International Advertisement on Schoolspring Jan 29, 2016

Insurance sections in a franchise agreement are not “boilerplate” provisions. How these sections are drafted will very much affect a franchise systems right to coverage. Do not unnecessarily limit your recovery rights by using insurance provisions that are not properly vetted and reviewed by counsel knowledgably in this area of law. Are You Certain Your Franchise System is an Additional Insured? Franchise Law Update Jan 28, 2016

Primrose Schools, the premier preschool franchise company, continued a five-year pattern of growth by opening 19 new schools in 2015, including four schools opened by existing Franchise Owners who are capitalizing on the company’s successful business model and rewarding impact. The company’s growth is proven by a year-over-year increase in overall system revenue of nearly 12 percent, bolstering its leadership position in the flourishing early education franchise industry. Preschool Franchise Company Continues Five-Year Steady Growth Pattern PRNewswire Jan. 28, 2016