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Each year FRANdata compile’s a list of the country’s largest multi-unit franchisee organizations and publishes “The 2017 Mega 99 rankings”.

Ranking are based on total number of unit. The top 10 have total of 6700 units, and these “mega” operators own franchise’s dominated by food. If you interview these owners and ask them “what matters”. Here are typical answers: “matter of taste”; “opportunity”; “passion” and yes “comfort level”. More on this on the page 4. We also know that Franchise’s share of the US GDP is ~ 4% and is growing.

What does the market look for the next decade? What are the challenges?

Darren Johnson had important answers to this question. He was keynote speaker at the 2017 MUFC. With his extensive knowledge, he is the kind of person you pay attention when he speaks. He spoke about changes in this market. More franchisors increasing every year; more specialization in sub-niche segments (sector specialization); other service platforms like institutional locations, kiosks and food trucks. The mall visitor’s count is down significantly. Amazon continues to achieve record breaking year after year.

Here is screenshot from Darren’s live speech:

Let’s pick “consumer behavior in transition”.

We are witnessing one of the greatest disruptions when it comes to retails, including restaurants. The new reality is “peer- to – peer” businesses. In an important article recently in TechCrunch this was the heading:

“Meal ingredient delivery service Blue Apron is the next bigconsumerIPO”. Posted Jun 1, 2017 by Matthew Lynley(@mattlynley).

The article went further and had this to say about Blue Apron’s sales growth:

“The company is showing a rather incredible amount of growth. Blue Apron said it generated nearly $800 million in revenue in 2016, up from $341 million in 2015. For the first quarter this year, Blue Apron said it generated $245 million in revenue, up from $172 million in the first quarter last year”. Any multi-unit franchise owner who is following this segment must be asking “what should I do”. Sure there are many owners who are busy making money with their franchise portfolio; oblivious to the fact that their rug maybe pulled under their feet.

Listen to actual stories of successful multi-unit franchise owners.

James Carroll Is the president of Advanced Solutions and Consulting in Solana Beach, CA, He has over 30 years of experience in business software development. He can be contacted at: jcarroll@solutionsco.com; 310 508 9700

What do I want?                               https://www.youtube.com/watch?v=U6d1n6urI7Q

How they made it?                            https://www.youtube.com/watch?v=OD5YftLMMas

Domino’s Franchise.                         https://www.youtube.com/watch?v=XU33jtS6P-Y

Multi-Unit Restaurant Franchisee: https://www.youtube.com/watch?v=rHg5P7626YM

What Franchisors Feel Makes Multi-Unit Operators Excel.

  • Ability to Delegate: If you’re a hands-on, detail-oriented person who wants to be in your business every day and very involved in every detail, multi-unit ownership might not be the right fit for you.
  • Having Passion: Your chances of success with anything you do in life increase if you’re passionate about what you are doing. Passion is a source of energy. Ideally you’ll have it for your franchise concept.
  • Access to Capital: Being properly capitalized is important for all franchisees. Those who start operating businesses without adequate working capital won’t be able to pay their bills or employees if the amount of cash coming into the business is not greater than the amount of cash going out, and getting to profitability takes time.
  • Willingness to Follow an Established System: Franchisees who do not follow the proven systems and procedures provided to them by the franchise company inevitably are less successful that those who do. In addition, they risk censure and even termination by their franchisor.
  • Being Motivated and Driven: “We can teach people how to run this business, but a person has to have the motivation and drive it takes to work at owning a successful business,” says Eley. “They must realize that they have to put in the effort to get the results.“
  • Experience: Some franchisors prefer franchisees with specific experience. For example, Hungry Howie’s Pizza & Subs looks for franchisees who own other food concepts because they already have restaurant experience and know what is needed to run a successful franchise. Other franchisors, however, do not require specific experience. Whether a franchisor wants franchisees to have specific expertise or not, you will be provided with extensive training.

Why ASC:
Please contact Advanced Solutions and Consulting and let us introduce you to Cloud Franmatica SM. Jim Carroll, President, jcarroll@solutionsco.com; 310 508 9700