FranNet: Policy concerns don't hinder franchising's growth

With several issues creating uncertainty for the franchise industry, from the NLRB possibly considering franchisees and franchisors "joint employers" to the possible effects from California's S.B. 610, franchisors are working to learn everything on these topics and determine whether these concerns would change the franchise prospect’s mind-set and affect brand growth. [caption id="attachment_19130" align="alignright" width="343" caption="John Blair, director of marketing and public relations for FranNet"][/caption] But thus far, franchisees and franchisors remain as eager as ever to get into business, regardless of what happens beyond their control in the policy arena, said John Blair, director of marketing and public relations for FranNet. In fact, he added, the franchise consulting firm that matches potential operators with brands has reported an increase in such placements this year. Blair spoke with 1851 Magazine about the biggest challenges to franchising and how the company has tailored its prospect-matching services to keep franchising on track. When talking with prospect clients, what issues are they most focused on right now given the current climate in the franchise industry? Our approach to talking with prospects hasn’t changed regardless of the serious issues facing franchising. Our message has always been the same: find the right fit for each prospect based on his or her personal and professional goals. On the prospect side, there also remains no change in typical behavior. Prospects continue to want to find opportunities that match their skill sets, values and their budgets. Corporate America is still laying people off, and the people in that talent pool are ready to embark on their next career move and replace their high-dollar incomes. The right fit for both the franchisor and franchisee is always the No. 1 priority, despite what is going on in the country. Seventy-five percent of all jobs created come from small business. Despite the bureaucracy, small business will continue to provide jobs. Based on historical case law, ultimately, these issues will fall in favor of small business and for franchising, as this model continues to drive Main Street and gives the path for people who want to get into business for themselves and create jobs the chance to do their part and drive the economy. So, with all the proposed concerns and legislation, is matching the right prospect with a brand more important than ever? In today’s business climate, with so much uncertainty, matching the right prospect to the right brand is crucial. So many people make the wrong decision on their own by going into an opportunity uneducated. An educated no is far better than an uneducated yes. In fact, of the number of strong client prospects our FranNet business consultants work with, about 75 percent of them do not move forward with a franchise and look into another opportunity because they realize business ownership is not for them for any number of reasons. While we don’t anticipate much change in franchise prospect behavior given the current news cycle, finding the right match is still vital to the local FranNet business consultant. So, matching the right brand with the right franchise prospect really is based on aspirations, personality and investment levels. To get this right assures not only short-term success and happiness, but more importantly, long-term success for the good of all parties involved. Has this slowed growth for brands? What is the biggest challenge? Even with all the uncertainly and big issues facing franchising, brand growth has not slowed. Solid brands deemed recession-resistant with good foundations, such as those in the senior care, essential services, damage restoration and auto repair segments, continue to attract new owners. Currently, FranNet is about 10 percent ahead of last year’s placement total, which would make for another record year. In fact, FranNet has consistently grown by double-digits, having seen a 20-30 percent increase year over for the past three years. What strategies or innovations have emerged this year to ensure franchise prospects are matched with the right franchise brand and opportunity? Business isn’t easy. And we still could use the lessons about hard work, dedication and perseverance learned from our grandparents. Finding the sweet spot of business opportunity and personal fulfillment for entrepreneurs is something each FranNet Business Consultant strives to achieve for its prospect clients. Ultimately, franchisors want to attract entrepreneurs fully committed to their mission and are willing to make the tough choices, instill unprecedented work ethic, and essentially, put their heart and soul into making the franchise the best it can be. That match is everything. This year, FranNet launched a new subsidiary of the company called Proven Match, Powered by FranNet, geared toward providing an assessment tool designed to identify ideal franchise candidates. Given the number of variables at hand and capital at stake, the franchise selection process can be an incredibly stressful time, both for franchisees and franchisors. For a franchisor, there is simply too much at stake to risk signing a franchisee who isn’t a good fit or who will prove to be an underperformer. Proven Match allows companies to minimize that risk by using a verified, scientific process to identify ideal franchisees. Given the accessibility of its services, FranNet predicts that Proven Match will help transform how individuals and franchisors connect for an ideal business opportunity. However, Proven Match can also be applied and utilized outside the franchise industry by non-franchise companies that are looking for ideal business operators for individual units.