Franconnect Blog

So what are current trends telling us about the impact of a recession on franchising in the months ahead? And what are your thoughts? FranConnect's franchise sales data for the third quarter of 2022 as compared to the 2021 timeframe supports that we are entering a similar cycle as we encountered during the great recession with a marked decline in leads and sales. Throughout 2021 we ended up seeing a decline in leads by -22% but saw franchise sales actually increase by +12% YOY. The bottom line - less tire kickers but more qualified buyers. But as you can see in the following data, fear, doubt and uncertainty are momentarily creeping in and deals are being pushed back (though not lost in my opinion). People are waiting on the sidelines to see what shakes out in terms of the potential for a recession comprised of labor shortages, and impacted by war and a seemingly never-ending health-crisis that is likely to raise its ugly head again through the fall and winter months ahead. According to FranConnect's latest franchise sales index data, the current outlook is showing some reason for concern: •Q3 2021 Total Leads: 314,430 •Q3 2022 Total Leads: 195,213 •YOY Change (Q3): -119,217 (-37.92%) •Q3 2021 Closed Deals: 3,265 •Q3 2022 Closed Deals: 2,053 •YOY Change (Q3): -1,212 (-37.12%) On the other hand, Franchisors appear to be more bullish in regards to franchise systemwide sales in the year ahead as you can see here: - 33% of Franchisors anticipate a sales increase by 1-5% in 2023 - 30% of franchisors anticipate sales being up 6-10% in 2023 - 20% anticipate their franchisees revenues will increase by 11% - Only 6% in total believe that they will be negative between 1-5% - And 6% believe that they will be negative between 6-10%

Do you struggle with calculating consistent, error-free royalty collection for non-financial categories? Furthermore, do your franchisees challenge every invoice because they lack transparency?

According to Franchise Direct, there’s 38,000 auto franchise units among over 100 concepts currently operating in the United States. These concepts include aftermarket parts and accessories, maintenance and repair and cosmetic and paint. We took a look at the most important KPIs in this segment of the franchise community.

Technology is constantly evolving, and businesses need to be prepared to adapt in order to stay competitive. Franchisors who don't update their systems and technology may find themselves struggling in the years to come. One way to help ensure that your franchise system is keeping up with the latest trends is by implementing a technology fee in your FDD. In this blog post, we will discuss the benefits of doing so and how it can help your brand in the long run.

We have all heard that Unit Level Economics is important in franchising but going from understanding it in theory to transforming it into action is a big step.  According to QSR Magazine, “the success or failure of a franchise concept can pivot off of how well unit economics are tracked, managed, and improved.” After working with over 900 brands a common practice among them is working together with their franchisees to improve their unit-level economics: not only their top-level sales but also their bottom line. If you’re not doing this today, you will have trouble selling franchises in the future.

Summer is approaching and gyms everywhere are packed with those trying to prepare to show off their hard work. If you are in the health and fitness industry, according to research, you have two important things on your mind: the success of your clients and the contribution you are making to your community. But you cannot help your members OR your community if you are not properly tracking the health of your business. 

We recently launched Franchise Scorecards and are excited to share the news! The franchise scorecards, part of FranConnect’s Operations platform, equip brands with a complete view of the health of a unit at your fingertips helping franchisees drive unit-level economics. Anyone involved with franchise field visits likely agrees that the prep work for a visit can be daunting. It seems to take hours, pulling information from different systems to end up with questionable economic insights. Additionally, comparing one unit against the average of their peers is nearly impossible without having key performance metrics identified.

When it comes to site audits, franchisors have a unique opportunity to be able to actively coach their franchisees on what they need to do in order to improve their unit's success. Today, we are focusing on turning the traditional site audit into a coaching moment, franchisors can help their franchisees understand where they need to make changes and how they can improve their unit's performance.

  It is no secret that high-impact franchisee engagement is essential to a franchisor’s success. Franchisors who take the time to set clear expectations and goals for their franchisees are likely to see better results than those who do not. In part two of this series, we will cover some tips for creating an effective engagement program using effective expectation and goal setting.

Franchising is a proven way to scale your business by distributing the risk and the reward across a community of franchisees. Yet, most franchisors struggle with engaging their franchisees, who are often the lifeblood of their growth and success. No matter how big or small you are as a company–you can’t afford to have franchisees struggle because they don’t have enough engagement with their parent brand.

Sales and Development Executives in franchising are always looking for ways to increase qualified lead flow to sell more franchise units. Many marketers are finding that purchased leads do not convert at the same rate as leads gained through organic search. Often it is thought that the more leads the better, but we have learned that it’s about the quality of the lead in the first place that can make all the difference. Quality over quantity is the way to go in this instance. The world of franchise development is changing every day. With so much information available about almost every business model, it’s difficult to get prospects interested in your brand over others. We've put together 6 ways that you can elevate your marketing efforts in order to return more qualified leads.

Creating franchise buyer personas can be an extremely valuable exercise for Franchise Development Teams tasked with aggressive growth goals. Defining these personas allows you to better understand the motivations and needs of your ideal customer, and ultimately create sales and marketing content that resonates with them. 2022 is calling for franchisors to think smarter when it comes to how they engage prospective franchisees. In addition to creating or refining your persona definitions, selecting tech tools that support growth and make processes simpler are essential for business owners this year. Our Executive’s Guide to Franchising Tech in 2022 – CDO Edition is a great place to start if you are looking for inspiration on what you should be focused on in terms of tech options. But for the sake of this blog post, let’s hone in on why franchise buyer personas are so important and review some of the best things you can do to get them right.

In a perfect world, franchisors and their franchisees would have the best of relationships; but as we all know, the real world is far from perfect. In fact, there are often times when franchisors and franchisees find themselves butting heads. In franchising, the relationship between the franchiser and franchisee is paramount to the success of both. So buzzwords like: communication, collaboration, integrity, and inclusivity all need to be backed up with actions in order for there to be any meaning for franchisees. In this blog post, we will discuss how franchisors can handle conflict when it arises, create opportunities to foster trust with franchisees, and set the stage for productive relationships as you scale your franchise brand.

At a recent franchising conference, we were lucky enough to sit down for interviews with a variety of senior executives from the FranConnect customer base. This included franchise brands of different sizes and from different industries.  We asked them what business challenges are most important for them to solve using technology. It was great to know how they are getting so much value from FranConnect, but it was also enlightening to hear some of the common themes that surfaced. Here are four of them, with actual soundbites from those customer interviews. For the full catalog of interviews, check out our Testimonials Resource Center.

As a franchisor, it can feel awkward to refer to your franchisees as customers, right? But by and large – they really are. As the franchisor, you can control the things that are defined in your franchise agreement, but at the end of the day these franchisees are not your employees. Thus, influencing what they do daily and dictating how they run their business is entirely up to them.

The majority of restaurants are franchised. The 2012 US Economic Census numbers say: “the estimated 122,042 limited-service franchise restaurants (NAICS 722513) make up approximately 54 percent of all fast-food restaurants in the United States, nearly 70 percent of the sales of fast-food restaurants ($185.4 billion), and about 73 percent of the employment of fast-food restaurants (3.6 million).”

If you’re part of an emerging franchise business, chances are, you’re familiar with software and other tech solutions that promise to make life easier for franchising. But aren’t those products built for large enterprises…  would they work for a ‘startup’?  And does it even make sense to invest in technology at an early stage before you’ve mastered your processes and built a winning team?

A visit from a Franchise Business Consultant (FBC) can stir up a lot for franchisees. Some can see the FBC as a checklist-wielding intruder, while others may see it as a major disruption - like the Kool-Aid man bursting into the side of their operations when they are trying to get stuff done. While using your checklist is needed, why not provide them with some surprise value during the franchisee visit? Check out the tips below to learn more.

Our annual FranConnect Franchise Sales Index Report features real-world data culled from our brands spanning across the franchise platform. After an eventful yet encouraging first half of 2021, for the first time ever we are looking at the data mid-year for an in-the-moment view on the state of franchise development.   This data offers significant insights for franchisors looking to grow and develop their franchise brands and make the right sales and marketing investments. Peering into the data of how franchisors handled the first half of the year reveals some promising signs. It may be too soon to say, but it seems that most verticals are showing improvements on key metrics. In this post, we will share some of the high-level findings, and give you access to a webinar where the report’s author, Keith Gerson, will break down everything you need to know.

Capriotti's Sandwich Shop

Freddy's Frozen Custard

HOA Brands

QDOBA

Taco John's

Little Caesars Pizza

Payroll Vault

Tijuana Flats

ProSource Wholesale

While some spa and salon franchises recognize the need to measure key performance indicators (KPIs), many rely more on intuition than analyzing the numbers. And while it takes soft skills to create an inviting atmosphere, satisfied clients, and happy employees, understanding the numbers that drive your business will help your spa or salon find — and keep — its place in the market.

The franchise development website is an essential sales tool, helping brands accomplish several objectives at once: generate leads, prescreen prospects, share the brand story, and facilitate growth in target markets.

Franchise business consultants have always been critical drivers of brand success, but their role has shifted considerably over the years and continues to evolve today.

Key performance indicators (KPIs) are tightly integrated with franchise business planning because business plans contain key results (KRs). KPIs are a subset of these key KRs, which the franchise uses to measure its performance.

The majority of restaurants are franchised. According to the U.S. Economic Census, an estimated 122,042 limited-service franchise restaurants make up approximately 54% of all fast-food restaurants in the United States.

The COVID-19 pandemic continues to present new challenges for franchisors. Yet day by day, we are seeing an uptick in field audits despite many months of uncertainty and dependence on virtual visits. Now is a good time to dust off that old field audit questionnaire and get it ready for use. You can start by making sure your audit is the best it can be – in other words, doing an audit of your franchise audit.

The most successful brands recognize that new franchisees require dedicated support to ensure a successful launch and help them thrive during the first year of business. No matter how strong an onboarding program is, plenty of factors can lead to a rocky first year: undercapitalization, general inexperience, and a lack of well-rounded skills.

As with many business challenges, the pandemic continues to provide valuable insights that can help franchisors strengthen and improve operations — not only to drive more revenue today, but to protect themselves against future disruptions.

In education, tutoring, and children’s services, you want to teach your students good habits. But it’s also worthwhile to take a look at your own habits as a business. What habits will predict success?

“A company — and a region or territory — has a lifecycle that ages,” says Jim Sullivan in Multi-Unit Management. “Infant, youth, adult, middle age, maturity. Each stage of this growth curve brings with it different leadership, knowledge and resource needs based on a company’s maturity and growth stage.”

The role of the Franchise Business Consultant (FBC) is ever evolving and growing. However, up until recently, there has been no strategic analysis for how the franchise industry tracks and evaluates the activities of FBC’s.

Franchise Operations are emerging from a tumultuous storm. The phrase “sink or swim” has never been more relevant, with many businesses having to adapt and ride the wave of complex challenges brought on by COVID-19.

One only needs to drive in their communities and notice all the “Now Hiring” signs to get a sense of how pervasive the problem of finding employees is regardless of the industry. Today, there is a serious shortage of workers, and this has resulted in Restaurants and Personal Services businesses modifying their hours (and even their days of operation) to ensure they have enough staff to meet the demand. If you’re reading this article, you’re probably experiencing a shortage of workers in your own business and are hoping for a silver bullet to help you quickly hire quality employees. Surveys and research illustrate just how pervasive the labor shortage issue is:

Many franchisors conduct franchise satisfaction surveys, but they are often repeats of previous surveys (perhaps with a few extra questions peppered in there for good measure) and lack unique and specific goals. As a result, the franchise satisfaction initiative can be a lot of busy work with few results. While some franchisors opt to use a professional service such as Franchise Business Review to stay current, others want to know how to improve their franchise survey process. The first step to changing how you survey is to have a goal.

Community marketing is the one thing you want to get right for your franchisees. While you may have a marketing team, branding agency, or even a vendor that updates your social media, you can never outsource it completely. There is no shortage of vendors that try to sell the magic bullet of marketing. Just like a sales professional trying to sell an “easy” weight loss program or a “fast” way to make money, they position it as a cake-walk once you make a hefty investment. The truth is, marketing is exactly like getting to a healthier weight or making a more satisfying income; it is a step-by-step journey, where you learn along the way with true rewards at the end. But it is certainly not a cake-walk — no matter how many people try to sell it that way. For a more realistic look at how you can build community marketing into your franchisees’ day-to-day processes, consider the tips below.

FranConnect works with 700 franchisors, and many are facing the same dilemma:

Education franchises employ hundreds of thousands of people across the US and around the world. According to IBISWorld, there are almost 173,000 businesses operating as tutoring or driving schools in the U.S., employing 343,451 people. As the world shifts, some of this revenue will be coming from online sources.

Franchise coaches bridge a lot of gaps, including:

Forward-thinking franchisors are now embracing Objectives and Key Results or OKR. The framework was originally developed by Andy Grove at Intel and has been used by organizations such as Google, Twitter, and LinkedIn. While the framework has documentation in the form of videos, bestselling books, and worksheets, the following three concepts will help you through their use:

Every year, we cull real-world data from hundreds of FranConnect customers to see what’s really going on in franchise development. Our annual Franchise Sales Index Report, now in its seventh year, offers unparalleled insight into everything from where leads come from, to which industry segments are thriving, to which marketing efforts are proving most effective. Last year was full of challenges and changes — but the franchising industry also saw opportunity as more people stayed home. Some segments struggled; others saw opportunity. One clear trend last year was that the overall number of deals fell, and the time to close deals lengthened. Both were to be expected amid so much uncertainty.

One of the biggest trends coming out of the end of 2021 is stay-at-home customers. People are spending more time at home than ever, affecting some industries where franchises operate powerfully.

Whether you are a growing franchise or managing a multi- brand, large corporation, you need to spend your time on what matters. You know technology can help you be more efficient and effective, but there are also old-school principles which are important to master.

As franchise owners, you know that franchisee engagement can have a material impact on the bottom line. A study of 300 brands from Franchise Business Review and InGage Consulting found that engaged franchisees are 3.7 times more profitable than non-engaged franchisees.

Salon and spa franchises represent well over a million businesses across the U.S. According to IBISWorld, there are approximately 880,000 firms operating in the hair and nail salon industry within the U.S., providing direct employment opportunities for almost 1.2 million people. The health and wellness spa industry has over 22,000 businesses employing over 365,000 people. As the economy changes, salons and spas still employ many people.

Our latest Pulse of the Franchise Industry survey finds cautious optimism is the outlook of the hour for franchisors ready to get back to better days of doing business in the months ahead.

A dirty database is a like a dirty home. When a home is messy and unorganized, it's hard to find anything. It seems to happen in an instant, too – once one item is put in the wrong place, the mess piles up. Particularly if you have kids or live with roommates, it can be difficult to keep all the dirt from coming in.

One of the biggest franchising trends for 2021 people are seeing across the franchising community is multiunit ownership. This trend is driven by a few key factors, including:

Good online education quotes can inspire and enlighten; they can brighten your day and show you the way.

In 2018, the worldwide fitness industry saw membership grow to a record-high 183 million users, revenue totaling an estimated $94 billion, and club count exceeding 210,000 facilities, according to the IHRSA Global Report. As the global landscape shifts, we will continue to see gyms making a meaningful contribution to the economy.

In this “Meet the Mentor” series, we share key insights from leading franchise professionals to help you learn from their experiences and get inspired by their successes. Whether you want to own a franchise, operate your system more efficiently, or improve your work-life balance as a franchisor, these high performers will provide the advice you need. Interviews were conducted pre-COVID-19.

As the chief operating officer of franchise brands for Neighborly, Mary Thompson is a pro at the art of fine-tuned franchising. Thompson, a franchise veteran who oversees ongoing operations within the world’s largest home services franchisor, was looking for more insight out in the field when she turned to FranConnect’s robust cloud platform to “systemize the delivery of our system.”

Quick. In three words, define your franchise opportunity.   

According to the National Restaurant Association (NRA), there are more than 1 million restaurant locations in the U.S. with 12.5 million employees. Even in these changing times, the industry is still a major employer. See some sample Objectives and Key Results (OKRs) for restaurant franchises below.

As record numbers of people look to the proven systems of franchising for their next opportunity, it's time to be bold and authentic with your franchise sales. Don't let the buzz over chatbots, paid search, and social media algorithms distract you from striking up high-conversion conversations through good old fashion email. 

Automotive franchises make a significant impact on the economy. According to IBISWorld, there are 263,000 auto mechanic businesses running in the U.S., with industry employment counting over 500,000. Although the changing landscape is affecting these businesses, they are still making a meaningful contribution to the economy.

With constant change the only certainty, harnessing the power of data for growth amid shrinking resources and shifting consumer behavior is critical for franchise brands of all sizes. Advanced point-of-sale and customer relationship systems offer franchisors the digital footprints to engage, garner feedback, track trends, try new products, and create unmatched customer experiences. Analytic data, swiftly served up, can also be a powerful ally to predict the success of local marketing and franchise development tactics and drive growth-focused operations and franchise relations decisions.

Today is a big day for both FranConnect and FranchiseBlast, and an even bigger day for our customers. Today, we are announcing that we have acquired FranchiseBlast, the leading provider of franchise operations software used by over 100 brands.

Unit-level profitability stems from a range of factors — but one of them is your budgeting planning and preparedness. We think it's so important we made an interactive franchise budgeting self-assessment. Are you a Reality Avoider? Or maybe you've reached the budget planning pinnacle of Titan of Business? Or, somewhere in between. We challenge you to download it, take the quiz, and see where you land.

Forecasting the Year Ahead  With 2020 now officially behind us, we decided to pull out our trusty crystal ball and look ahead to the biggest changes that will happen in Franchising in the year ahead. This post outlines our favorite predictions for 2021. We are confident in all of them, but it’s safe to say that we would not have predicted them 1 year ago. It should be interesting to look back at them a year from now to see which ones played out. 

The Most In-Demand Franchising Resources of the year In 2020, FranConnect produced more content than ever before, and it was watched, read, downloaded and shared more than ever before. As we start off 2021, we looked back over the last 12 months to see what drew the most interest from our audience.

In this “Meet the Mentor” series, we share key insights from leading franchise professionals to help you learn from their experiences and get inspired by their successes. Whether you want to own a franchise, operate your system more efficiently, or improve your work-life balance as a franchisor, these high performers will provide the advice you need.

In the first two installments of this series, we shared how to engage your franchisees in planning for the upcoming year and how to evaluate your current franchise technology. In this final post of the series, we’ll explore how to boost and track franchise sales leads.

In the first installment of this series, we shared how to engage your franchisees in planning and budgeting for the upcoming year. Today, we’ll explore why and how to evaluate your current franchise technology and plan for the future.

Unless you’ve spent the past year under a rock, you know that every business sector has experienced uncertainty this year — and that includes franchising. As we approach 2021, no one really knows what to expect from the upcoming year. What will revenues look like? Will franchise units return to full operations, or will they continue to operate at a reduced capacity? How will consumer buying habits evolve along with the pandemic and the economy?

2020 has brought many unexpected challenges for franchise brands. How have those challenges impacted franchise sales? While franchise leads are down year to date, deals have increased — indicating that while there are fewer leads, they are higher quality leads. In the infographic below, we break down how franchise sales have changed over the course of the year, and what franchise brands can do to take advantage of the leads that come their way. And for complete details check out our 2020 Franchise Sales Index.

While coronavirus-related uncertainties remain, it’s clear that many businesses will be forever changed. For example, according to Gartner research, an estimated 82 percent of company leaders plan to let employees work remotely post-pandemic — at least some of the time — potentially reducing the demand for downtown franchise locations near central business districts. At the same time, real estate may be increasingly available and more affordable in the months to come, giving franchise brands additional opportunities for new locations. Together, these factors may prompt franchise brands to rethink their real estate strategies.

On the journey to convert prospects into franchisees, the franchise disclosure document (FDD) sign-off process is a critical milestone. A candidate must see and sign off on your FDD before moving forward in the process — so the easier you make that FDD process, the quicker you can move prospective franchisees forward and get them started on a path toward success.

If you’re like many franchise leaders, you’re currently in the midst of planning for the upcoming year. Given the challenges of 2020, it’s more important than ever to take several key steps before the year ends to set up your brand and individual franchisees for success.

In this “Meet the Mentor” series, we share key insights from leading franchise professionals to help you learn from their experiences and get inspired by their successes. Whether you want to own a franchise, operate your system more efficiently, or improve your work-life balance as a franchisor, these high performers will provide the advice you need. Interviews were conducted pre-COVID-19 and in some cases titles and positions have changed since then. 

Your current franchise fees enabled your brand to get to where it is today — but will they get you to the next level?

For franchisors, operating a successful business requires more than maintaining the status quo; to thrive and grow, you must look for ways to continually improve. This requires taking a close look at your current processes, evaluating if and how they drive your business goals, and identifying areas for improvement. Altogether, this is known as process transformation.

In the franchise world, discovery days are critical to evaluating potential franchisee candidates. These events give you the opportunity to qualify each prospect, help him or her learn more about the business, and make a good impression — ultimately driving a final sales decision: Will you both agree to seal the deal?

Today we announced our partnership with Lumin.ai to integrate conversational artificial intelligence (AI) into the FranConnect platform. Whether this makes perfect sense to you, or you're not even sure what AI means, let's take a few minutes to talk about what it is, why we are doing this, show you a preview of how it works, and explain why it's different than other AI solutions in the franchising world. 

Many franchises look dramatically different today than six months ago. Gyms and retail stores are operating with limited hours or reduced capacity. Restaurants have likely altered their business models around reduced occupancy, takeout, curbside pickup and delivery. Due to these shifts and their financial and legal impacts on your business, it’s critical that you update your franchise disclosure document (FDD) to accurately reflect these changes, even if you believe changes won’t be permanent.  

Earlier this month we completed a survey of 200+ franchisors to gauge the current state of the franchise industry relative to the impact of the COVID-19 pandemic. Participants provided insight into a wide variety of critical topics, from franchise development to unit operations to core financials such as cash flow and royalty management. The results of the survey can help franchisors understand how they stand in the face of the pandemic relative to peers across the spectrum and within their industries.

The pandemic has robbed us of so many things we value in our personal and professional lives. One of the things I’ve missed most these past 5 months is attending live events of all kinds, including in-person conferences. Whether it’s the professional development, making new connections via networking, or just getting re-charged in my career, in-person events play a unique role in our society. 

So, What Can You Do Now? COVID-19 has disrupted franchising like no other event in modern history. Nearly every size company in every sector is dealing with new operational issues spanning safety, compliance, customer acquisition and other drivers of performance. But with so much attention focused on day-to-day changes and survival, many businesses aren’t able to address serious operational pre-existing conditions. It’s necessary to examine the state of Franchise Operations 6 months ago to pinpoint cracks in the foundation, many of which must be addressed to help survive the recovery period.

By Keith Gerson, CFE Even as the health-related stories about the pandemic continue to evolve, the business world faces a common challenge: moving forward. Most organizations have already realized that they can’t sit back and wait. They have to put plans into action and adapt quickly as necessary. The world of franchise sales faces its own set of challenges, but also some great opportunities. As we have reached the midway point of 2020, now is a good time to zoom out and consider what you must do as franchise leaders to ensure your development efforts continue to drive growth.  Here are my Top Five Must Do’s for Franchise Sales Leaders now that we are halfway through this unforgettable year.

In late March, as most States were entering their 2nd week of shutdowns, we surveyed 233 franchise leaders to quantify and assess the impact to their businesses. The resulting data showed exactly how quickly and directly the impacts were rippling through the entire franchising world, spanning everything from business closures, to the impact on franchise sales efforts. Participants represented 8 industries: Quick Service Restaurants, Business Services, Personal Services Residential/Commercial Services, Real Estate, Full-Service Restaurants, Hotel/Lodging, and Retail Food Products & Services.

There’s no doubt that we are facing unprecedented times. While quarantine seems like “the new normal”, the fact is that we will be back to business much sooner than we realize, and we need to be ready. Now’s the time to prepare to rebuild after the storm.

The CARES Act passed into law March 27th includes $350 Billion allocated to low-interest and in some cases, forgivable, loans for small businesses. The loans are intended to cover payroll, benefits, leases, mortgage interest, rent and utilities. For many franchise businesses, this is a critical lifeline intended to help them navigate the impact of the COVID-19 pandemic.   There is a lot to understand about the package - it’s 880 pages long -- and it's easy to get overwhelmed by the depth of it. But some of the best minds in the world of Franchising are working hard to make it easy to digest. So, we decided to round up some of the best resources to help get up to speed.  

At FranConnect we are committed to the safety and well-being of our employees, customers, and the franchise community. As a company we have implemented remote work policies across our offices. This was a smooth transition because we already use cloud and remote-work technologies for key processes, operations, development and support. Our team is energized and adapting well to this environment. Communications between FranConnect team members and our customers will not be interrupted or affected.

Emerging-growth franchise brands with less-than-100 locations need affordable, scalable tools to focus on expansion, unit level economics, and improve efficiency. Most emerging franchise brands face similar business challenges. Their teams may be short staffed, with lean budgets, and little time to stop everything to troubleshoot issues or learn about new technology. Time is money; their needs extend to labor-saving technology and more efficient ways to manage their growing locations.

March 13, 2019 - Reston, VA - FranConnect, the leading provider of franchise management solutions, announces the hiring of Chris Sotudeh as Senior Vice President of Customer Operations. He will be in the forefront of leading FranConnect’s customer solutions, education, and advocacy programs, as well as India-based customer support operations.

Lead conversions must be tracked at each stage of your sales cycle. If you’re attracting the right prospects to your brand, then conversions should increase, building more predictability and reliability into your pipeline.

The President and CEO talks about herself, leadership, and the #1 franchise management software solution.

FranConnect, the leading provider of franchise management solutions, announces the launch of Velocity Packs for emerging franchise brands with up to 100 locations. Now, the enterprise power and support of FranConnect Sky is available to emerging franchises in cost-effective bundles that can be quickly scaled and implemented across the organization.

The franchise-focused company is the only Franchise Software Supplier to make CIO Applications’  prestigious list, as voted by a distinctive editorial panel of analysts and CIOs.

(WASHINGTON, DC) – September 27, 2018 – FranConnect, the leading provider of franchise management solutions, announced the promotion of Gabby Wong to Chief Executive Officer (CEO) to continue its path of market leadership and to accelerate innovation and growth of its products and services in the franchise industry. The transition of Wong to CEO will take place in mid-2019. In the interim, Wong will assume the role of President of FranConnect, where in addition to her Customer Operations responsibilities, she will lead Product Management, Strategy and Development. The Sales, Marketing, and Finance functions will transition shortly thereafter in 2019.

Newest release of  FranConnect Sky, franchising’s #1 software, also includes enhanced customization and scalability for multi-brand franchise operations

 Executives from Liberty Tax Service and Franworth explain their decisions to return to FranConnect after relationships with Salesforce failed to deliver on expectations

Franchising-focused company beats out multi-industry software gorillas and low-end entrants to rank first in the Online Technology Services Category

The nation’s largest barbecue chain taps into the process and organizational power of the FranConnect platform to drive revenue and profitability for their global franchise operation.

A Florida University Now Offers Business Degree with Concentration in Franchising

The Company Once Again Realizes Record Growth in Customer Adoption and Usage WASHINGTON, D.C. – February 11, 2018 – FranConnect, the leading provider of franchise management software, announced today that new market research confirms their customers grew 44% faster than the broader franchising market. These results follow on FranConnect’s strategic decision years ago to be hyper-focused on helping its customers grow their businesses. Strong unit growth and superior unit economics are core tenants of the Company’s value proposition.

We're packing our bags for IFA 2018! We can't wait to visit with our awesome customers and to connect with new franchisors. If you are headed to Phoenix, we'd love to meet with you! Swing by Booth #513 to check out FranConnect Where You Work™. We've extended the power of our platform to your favorite business applications like Gmail and Outlook to make it even easier to manage your business — in fact, you can even autopopulate records in FranConnect Sky without ever logging in! 

Recently, Sharon Powills at 1851 sat down for an in-depth interview with our CEO, Christopher Fountain. They discussed everything from how FranConnect is able to scale (600 brands and counting!), what we focus on (hint: it's the people first) as well as why we feel FranConnect Sky drives value for franchisors.

The information in this post was initially reported in the webinar “PPC Demystified: Get the Most from Your Campaigns.” Click here to watch now.

Franchise sales is hard. It’s a very competitive business, and the sales cycle from lead generation to qualification to closing is complex. Wayback Burgers, a burger franchise that operates 138 restaurants nationwide in 27 states and 35 restaurants internationally, has figured out the key tactics that has quickly grown the concept. The number one key to their success is a well-defined and strategic sales process. They know exactly what happens when, who sends what to whom, when and how to follow up…you get the idea. Let’s take a look at the 10 critical steps for franchise sales that Wayback Burgers' Executive Vice President Bill Chemero, CFE, and Vice President of Franchise Development Scott Milas, CFE, follow to ensure ongoing growth and success.

While researching for this blog post, I came across the same basic description for franchise discovery days over and over again – an opportunity for candidates and franchisors to learn more about each other. According to this article in Entrepreneur, discovery days have four main purposes:

Here are 10 franchise sales tips from leaders in franchise development at The Dwyer Group, 7-Eleven, Wild Birds Unlimited, and more.

If you’re already franchising your business, you probably – hopefully – know what a chart of accounts is. “Chart of Accounts (COA) – a financial organizational tool that provides a complete listing of every account in an accounting system. An account is a unique record for each type of asset, liability, equity, revenue, and expense.” Each account is then broken down into subcategories.

Franchisee engagement is a hot topic. We’re seeing a progression away from the rule enforcer/disciplinarian franchisor-franchisee relationship toward one that places the franchisor as a mentor, teacher, or business advisor. After all, your success is dependent on that of your franchisees.

FranConnect has been a long-time partner of the International Franchise Association and Franchise Update Media to score franchise recruitment websites based on a set of best practices. Here you will find our most recent findings for franchise development performance using a franchise recruitment website as the main tool for driving leads.

It’s a tumultuous political climate in the U.S. right now. Our two major political parties are deeply divided, and it seems even within parties our representatives are finding it difficult to find common ground. Americans are uneasy, particularly with so many unknowns, and it doesn’t help that we are inundated with left- and right-leaning news from the media at every turn. After looking at the American Psychological Association’s annual “Stress in America: Coping with Change” survey, NPR reported that “57 percent of people polled in January said they were stressed about the current political climate; 66 percent were stressed about the future of our nation; and 49 percent were stressed about the outcome of the presidential election.”

The success of your franchise depends on the success of your franchisees. Key to this success is partnering with the right people and focusing on franchisee engagement, but equally important is the support your field operations team provides to your franchisees from day one. As defined in an article in Franchising World, “Franchise support is the mechanism by which the intellectual property of the franchisor is transferred to the franchisee for the purpose of replicating the success of the business model.”  

This is a big year for Nothing Bundt Cakes. It marks their 10-year anniversary of franchising, and they recently opened their 200th location in Grand Rapids, Michigan. As a proud partner, FranConnect is featuring Nothing Bundt Cakes to congratulate them on their successes.

A franchise development software system is crucial to the success of your franchise recruitment efforts. It will help you and your team grow your brand in an organized way, managing every aspect of engagement with franchisee candidates, and it should integrate seamlessly with the rest of your operations. When choosing a development system – or evaluating your current one – for your franchise, ensure it has these seven features.

There is a lot to keep up-to-speed on in the franchise community, so we have put together a list of resources for franchisors that includes news sources, events, trade associations, social groups, and more. We will continue to update this list as we learn about more resources for franchisors. Happy learning!

Getting franchisee leads is important, but more important is getting qualified leads – these are the leads who are most likely to convert to a sale. Otherwise, a lot of time, effort, and money is wasted on the wrong candidates. Here are five franchise sales and marketing efforts that increase qualified leads.

FranConnect Introduces Business Intelligence Suite and Automated P&L Reporting in Latest Release of Cloud-Based Franchise Management Software FranConnect Sky: Polaris edition includes Intuit QuickBooks Online and Google Gmail Integrations, SMS marketing campaigns, and more Reston, VA (April 18, 2017) – FranConnect, the leading provider of franchise management software, has released FranConnect Sky: Polaris edition – the latest version of the company's cloud-based software platform. The release comes with over 100 new capabilities, including a business intelligence suite, enhanced integrations with Intuit's QuickBooks Online and Google Gmail, and improvements to the FranConnect Sky Training module. Video Overview for Corporate Users  "Our customers consistently tell us one of their biggest challenges is system-wide performance visibility and accurate financial reporting," said Mike Morper, Senior Vice President of Product Management. "Now that FranConnect Sky is integrated with QuickBooks Online, franchise owners can easily deliver required P&L information to the brand, and brand CEOs benefit by having normalized system-wide financial data that can then be correlated with other key business metrics stored within the FranConnect Sky platform."

What is a Buyer Persona? A buyer persona is a representation of your ideal customer based on research and data from your existing customers. Creating robust, detailed buyer personas is a key component to any franchise marketing and sales strategy. It forces you to conduct comprehensive research about the types of franchisees that are successful for your organization, instead of going with gut feelings or what you simply believe to be true. Through your research, you’ll uncover a targeted approach to exactly how, where, and when you should be reaching out to your prospects. The more focused your efforts, the more qualified your leads will be, which means you’ll spend your dollars more wisely. Along with marketing efforts, your buyer personas will drive your sales approach, product development, franchisee engagement, training, and more.

The latest version of FranConnect’s SaaS franchise management software, FranConnect Sky: Polaris, will be released April 17. With over 100 new features, let’s take a look at five of the most exciting additions:

Marco’s Pizza is recognized as the fastest-growing pizza company in North America, and we couldn’t be prouder to be their partner. Marco’s Pizza has been working with FranConnect since 2008, and we’ve enjoyed witnessing their tremendous growth over the years.

FranConnect, the leading provider of franchise management software, is excited to announce a new partnership with Intuit, a leader in software for small business, personal finance, and tax. The partnership brings together two powerful franchise accounting software tools to create a comprehensive financial management platform for franchise leaders.

FranConnect selected as 2017 Vendor of the Year based on tangible value Nestlé Toll House Café by Chip has derived from using FranConnect’s products and superior level of customer engagement they have experienced

FranConnect is proud to sponsor the Restaurant Franchising & Innovation Summit taking place March 28-30, 2017, in Dallas. Keith Gerson, CFE, president and chief customer advocate of FranConnect, will moderate a panel discussion entitled Franchise Development Marketing 101.

Millennials. It feels like whether or not you’re a part of this generation (loosely defined as born in 1980-1999), the word leaves a sour taste in your mouth. It comes with an air of entitlement, laziness, and narcissism. It paints a picture of a generation plagued with debt. But it also illustrates a generation of innovative, culturally diverse, well-educated, and tech-savvy individuals who are calculated-risk takers. And they’re on the hunt for the next best thing.

Running a franchise isn’t easy. It’s a complex, multi-layered business model. And while it’s possible to implement point solutions or build a home-grown system to support the many aspects of building and managing a franchise, the team at FranConnect saw a need to create something specifically for franchise businesses.

New executive team members will play key roles as the company continues to focus on operational excellence and delivering superior products and services

Before launching FranConnect Sky in early 2016, we spent time with our customers listening to their challenges, uncovering their wish list for franchise software solutions, and how we could elevate FranConnect to be a valued partner and trusted resource as they grow their brands.

In our ever-so-connected world of 24/7, the franchisor-franchisee relationship is in the midst of powerful change. More than ever, franchisors are focusing on the collaborative mindset that must be present for both parties to experience mutual success. And many are turning to powerful analytics and business intelligence tools. Just imagine how franchise leaders can impact franchisee engagement in our data-driven, digital world.

Over the past few months, the franchising industry has come under attack, creating headlines around the nation. There are many threats to be concerned with – from discriminatory minimum wage increases to changes in joint-employer status – that could alter the franchise business model as we know it. The International Franchise Association (IFA) is working to neutralize these types of attacks and educate policymakers that locally-owned franchise businesses are America’s hidden small businesses that not only create jobs, but also provide incredible value to local communities around the country.

Historically, franchisors and franchisees have had a, shall we say, unique relationship. While formally contractual and involving some level of operational performance “enforcement,” the relationship has also been guided by a collective desire aimed at a mutually beneficial outcome: to gather data and turn it into the information needed to improve unit economics and make better business decisions that benefit the franchisor AND franchisees.  

FranConnect customers, prepare yourselves for an easier way to learn everything you’ve ever wanted to learn about your FranConnect system. We’re proud to announce the launch of FranConnect Success Passports! With this program, FranConnect users will have access to all open-enrollment training sessions, as well as consulting hours and business reviews. Here’s how it works:

One of the biggest pain points for franchisors and their field operations teams is preparing for effective interactions with franchise owners and their employees. Yet 57% of franchisors lack a system to monitor and control field execution and performance.

Since 2010, I have attended IFA’s annual conference, and for me, IFA 2017 really stood out as the convention had a whole new look. The focus on integrating the physical event with digital was impressive as well, with the active Twitter feed and the use of live polling tools during keynote presentations.

I have spent many years in franchising, and it had always been a given that male leaders dominated this sector as they do so many others. However, it's becoming abundantly clear that a record number of women are not only leading franchise brands but are instilling in their companies a fabric of values-based decision making that is driving collective success for franchising overall. The evidence was on display and openly discussed at the Women’s Leadership Conference during IFA 2017.

At the beginning of each year, when the bustle of the holidays has come to an end, I like to take a moment to reflect on the year prior and think about our year ahead. FranConnect had a great year in 2016 – we increased customer engagement, learned from our customers and partners, grew our team, attended events and tradeshows around the nation, and even streamlined our branding. This has me exceptionally excited for 2017, as we prepare for an even greater year ahead. Join me in a reflection of 2016 and a peek into what’s in store for FranConnect in 2017.

Recently, I attended IFA 2017 in Las Vegas, the biggest franchise event of the year. This annual conference brings together franchise leaders of all sizes, from single to multi-unit franchisees, to franchisors, to supplier partners. Each year at IFA, we gather together to share insights on best practices as we renew friendships and build new relationships.

This was clearly not your father’s IFA If you were at IFA, you know what I mean. The IFA staff knocked it out of the park, from a sophisticated, fresh design for the event experience to the well-organized and efficient movement of 4000 people from place to place. The energy was well choreographed, especially when Robert Cresanti, IFA President and CEO, led the audience through a virtual political action activity. It left us with the undeniable observation that there is a focused effort to recruit the franchising community behind a common cause – the preservation of the business model that is the largest job creator in the U.S.

By Joe Mathews and Keith Gerson A total of 487 franchisors use FranConnect’s Franchise Sales Management Module as their CRM to track their franchise sales results, far more than any other franchise sales database or CRM utilized in franchising. Inside that centralized database is a jackpot of information which, when aggregated, provides a robust look at what is really occurring in franchise sales.

Can your field consultants describe how their day-to-day tasks impact your organization’s growth?

When business grows fast, technology can keep you ahead of the game. by Julie Bennett Ajay Arora, A Great Clips franchisee in Kansas City, Kan., has got a lot of satisfaction from operating and expanding his hair-salon business since 1993, but as it grew he began to experience problems on days when his salons were really busy. Then, he says, customers would crowd the units’ lobbies or line up outside, stressing his stylists and sometimes discouraging other clients who also wanted a haircut that day.

The latest version of FranConnect’s SaaS franchise management software, FranConnect Sky: Orion, was released late December 2016 with over 130 new features. The new features include business critical application updates like batch data imports, mobile capabilities, SMS ability, and important integrations like for Quickbooks Online from Intuit.

Few franchise brands have put the necessary best practices in place to account for the solutions that allow timely reinforcement of expectations and standards. In our latest ebook, 5 Field Operations Secrets from 600 Franchise Brands, we reveal the guidelines you need to apply to rejuvenate your field operations team and tactics. Here's a sneak peek of those five areas.

Collecting and analyzing data can be a powerful business function, and the world’s most progressive companies have been investing in it for years. But the franchise world has been relatively slow to realize the power of big data -- ironic, as data has the potential to aid franchises more than other types of companies, since franchisees can benefit from unit-level metrics that let them harness the ideas and strategies that are working for fellow franchisees, while corporate can customize systems for various regions or cities.

Christopher Fountain is CEO of Reston, Virginia-based FranConnect, a provider of franchise management systems, helping franchises manage all aspects of their operations including sales, marketing, financial data collection and analysis, and more. fountain joined the company this March, after previously serving as COO of a healthcare software provider.

RESTON, VA – (May 10, 2016) – FranConnect, the leading provider of franchise management software, today announced it would host the company’s bi-annual 2016 customer conference, FranConnection’16, May 18 – 20 at Gaylord National Resort and Convention Center, National Harbor in Washington D.C. The event will bring together franchise, finance and marketing leaders who will discuss:

RESTON, VA – (May 5, 2016) – FranConnect, the leading provider of franchise management software, today announced the appointments of Tom van Gorder as Executive Vice President, Global Sales and Tracey Moon as Vice President, Marketing. By ushering in new executives to its leadership team, FranConnect is investing in the company’s future. These investments will drive growth allowing the company to better serve the long term needs of its customers.

This article was previously published by Smart Business Online on March 28, 2016. During my recent experience on the CBS Emmy Award winning show “Undercover Boss,” I learned more than just how to hand roll dough and deliver late-night pizzas. The eye-opening experience provided business lessons that not only didn’t I anticipate, but in many ways changed the course of how I run Marco’s Pizza and how the brand’s 700 stores will operate.

Recently, I attended IFA 2016 Convention, in San Antonio. The conference is a leading trade event for franchisors, franchisees and suppliers who support the franchise industry. This was my first year attending IFA and my overall assessment is “What a wonderful event!” The highlight was gaining access to industry thought leaders as they congregated to share their insights on a wide range of topics, including best practices, strengthening the franchisee ecosystem, and the future of the franchise industry as it continues to be an attractive business model for emerging brands. However, my favorite part was having the opportunity to forge new relationships and reconnect with existing friends.

Traditionally, franchisors relied on word documents, spread sheets, and email to track and report important business information. But the reality is that in today’s competitive market, these antiquated ways of doing business do not work. Why? Simply put, franchisors are working in silos of inefficiencies where cross company visibility does not exist. Instead, marketing, sales, and operations all have their own ways of communicating, reporting, and sharing.

As the industry’s leading provider of franchise management solutions built exclusively for franchisors, with the exciting launch of FranConnect Sky, we are enabling franchisors to successfully grow more units and make all units successful. With this new franchise management software, franchisors – and their franchisees – can now more effectively manage, track and run their franchise systems. Only FranConnect Sky comes with Franchising Built-InTM, offering best practices for the entire franchise lifecycle.

Welcome to all as we kick off IFA 2016. As I started to think about the next few days in San Antonio and the announcements we will be making, it triggered some reminiscing on my part about the past 12 months.

RESTON, VA – (February 19, 2016) – FranConnect, the leading provider of franchise management software, today released FranConnect Sky, a cloud-based franchise management software product that enables franchisors and their franchisees to more effectively manage, track and run their business. A software-as-a-service (SaaS) offering, FranConnect Sky enables customers to receive continuous product updates, ensuring they are always on the most up-to-date version and benefit from franchise best practices. FranConnect Sky is certified to very high cybersecurity standards, and only FranConnect Sky comes with Franchising Built-InTM – exclusive functionality and best practices for the entire franchise lifecycle.