Industry Trends Q&A with FranNet's CEO Jania Bailey

For more than 35 years, FranNet’s experienced local franchise consultants and brokers have paired entrepreneurs with franchise opportunities that align with their goals, values and skillsets. Jania Bailey, the brand’s CEO, sat down with 1851 Franchise to discuss industry trends, FranNet’s franchise model, its history and achievements, and the brand’s future growth plans.

1851 Franchise: How was FranNet created, and what void did it set out to fill?

Jania Bailey: 35 years ago, the brand's founder saw the need for that middle person between the franchise buyer and the franchisors to help match the two. At that time, that was not happening in the industry.

Frankly, they had a big hill to climb. Many franchisors didn’t see the need and didn’t want to pay a fee for leads. There was a lot of evolution before the broker idea really caught on.

1851: What about FranNet makes it unique within its industry?

Bailey: The company fills a need in the industry. We feel connected to our clients and feel we are making a difference in helping them find the right franchise. We also provide a major service to the franchisor because we bring them highly qualified, pre-screened franchise candidates.

With our 35-year history, we have people who have been with the company for over two decades. We have five second-generation FranNet franchisees. Our group is like a family. Many people here have been with us for years and are now handing it off to their sons and daughters; the continuation of that family-like feel has been a part of the company culture.

The other aspect of this business that really sets us apart is that our people have been very active and committed to local markets. We are also in the digital world now, but our commitment to the communities we serve is still very much a part of FranNet.

1851: What have been some of the brand's milestones in its history?

Bailey: 16 years ago, the company was sold to a group of FranNet office owners. We went from being a mutual benefit company to becoming a franchise. That allowed us to convert the company to the franchise model. Most of the office owners stayed with us — a conversation rate of over 85%. It was a big step in the right direction.

The company was listed on the Inc 5000 list twice and then on the 500 list another four times. That was a huge achievement for FranNet. We continue to be very proud of people who choose FranNet as their home and family — the franchisees and the associates that work under them.

1851: Why is FranNet a strong investment right now? What are some of the trends you are seeing in the industry?

Bailey: There are a couple of things taking place. This year, we introduced a new model that allows people to operate nationwide, where before they were limited to certain territories. So they aren’t limited to just a local market. The other change we see is the flood of franchisors that are coming to us wanting help. Generating leads is a challenge for many franchisors, and many of them have recognized the value that a good broker group can bring to the table. We are overrun with applications. Our service keeps them at the top of the industry.

One major trend is that Millennials are showing more and more interest in franchising. That is a big group, and we see that creating major change in the coming years.

1851: What does an ideal franchisee look like?

Bailey: Someone who is a self-starter, very organized and focused on their goals. They do not need anybody to tell them what to do. They have their own structures and processes. We do a lot of training on that, but having that person who can follow the system, stick to the process, keep themselves motivated and follow those steps that have been lined out for them is critical.

Also, the ideal franchisee won’t be overly “salesy.” Many people think you need to make sales a top priority, but we want you to be more consultative. Our job is to coach, advise and council these candidates, not sell them. We are the introduction service.

1851: How does FranNet support owners?

Bailey: We have an amazing support team in place. We offer extensive pre-training, which is the first step. The second step is they come to in-person training with the FranNet team and really get introduced to the nuances of the process.

After that, they are assigned a mentor for six months –- always one of our top-performing units. During those six months, they meet on a regular basis on Zoom, help coach them on the process, and answer questions to ensure they are comfortable as they meet with clients. After that, we have ongoing training all year round. We have national meetings with franchisors twice a year and hit on key topics and training there. We also have a boot camp where it is a full day of going back to the basics and marketing. The training is extensive, so franchisees don’t have to reinvent the wheel.

The franchisor's support is also important. We have a team that works with the franchisor, going through an extensive approval process, reviewing the FDD, talking to management, validating franchisees, etc. We do that every year. We want to make sure we are showing the best of the best.

We also have a full marketing department — everything from support on social media to new avenues. The team is made up of people with years of digital marketing experience and local marketing experience. Franchisors are pleased with that support. We also have a full IT team that helps you with challenges and many tech products that help you with the business. We’re very proud of the support we offer.

1851: What plans does the brand have in the coming years?

Bailey: We just started recruiting and bringing on new franchisees due to this new virtual model. That opened up a lot of availability for us. It’s a big step, and we expect tremendous growth through this — the company will be better able to support its franchisor partners. We also have some tech projects that are very exciting and are going to be game-changers as well.