The State of the Franchise Industry: 7 Aspects to be Prepared for 2022 and Beyond

(Part 6 of the Multi-Unit Franchising Conference)

As part of the Multi-Unit Franchising Conference series, this post will help you understand where the industry stands and where it’s going, based on the insights provided by Darrell Johnson, CEO of Frandata, the premier source of intelligence data in the franchise world.

Watch the Multi-Unit Conference series subscribing to our YouTube Channel and register to our newsletter at the bottom of this post so you don’t miss the related blogs once they get published.

This expert shared the analysis of their annual review of the US and global economies, and the effects on franchising in the coming year and beyond, covering seven key aspects: 

  1.  Impact of Covid-19

Darrell predicts that Covid is going to be with us for at least another year, perhaps even longer, since we’re expecting a fourth round of this pandemic and less than one-half of the world’s population is vaccinated.

This will bring...

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Protect Your Eroding Bottom Line

(Part 4 of the Multi-unit Franchising Conference)

I enjoy attending franchise events to learn from successful franchisees and brand executives. I recently went to the Multi-Unit Franchising Conference 2021, and in this post, I’m sharing my notes and perspective on the session titled Operations Track: Protect Your Eroding Bottom Line.

Watch the whole Multi-Unit Conference series subscribing to our YouTube Channel and registering at the bottom of this post to get a notification on when the rest of the post gets published.

This was a panel of four franchises from different industries that shared their thoughts and experiences on how to maximize profitability and maintain quality at all your stores. They focused on three main topics: product cost, technology, rent, and labor cost.

  1. Product cost

How to face the increasing cost? The panel agreed that you have to have the courage to increase prices to the point that you have your variable cost where they need to be so you can have ...

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3 Reasons To Know Your Break-Even Point

I will never forget the day I became general manager of a Domino’s Pizza restaurant. I was very excited for this growth opportunity, going from a pizza delivery girl to a store manager, but I soon discovered the size of the challenge: the unit that was under my responsibility from that day forward, was losing money.

My district manager had faith on me, he knew that I had all the knowledge, the skills, and the ability to turn this business around. So, he taught me all about the break-even point. Because of this, within 30 days, not only did we get to break-even, but we actually got a little bit of a profit.

The history repeats itself with many of my clients. That’s why I consider that the break-even point is the most important number in your business. If you are aware of it, you can learn a lot about your units, whether it’s one or multiple, and implement the right strategies to make the most out of your business.

Do you want to learn how to calculate the...

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The 3 most important numbers in your business

As a business owner, you get access to a lot of information and reports, and it can be difficult to understand how the numbers work and which data is really useful and which you should discriminate.

To achieve the financial and growth goals, you have to focus on what I call “The Business Trinity”, which refers to the three most important numbers in your business. You must monitor them every day to make sure your business is going in the right direction, and correct the path if it is not.

How to determine your Business Trinity

These three numbers are going to differ depending on your industry and your business model. They are not magic numbers that apply to everyone, because not all franchises are created as equal. It’s not the same to be in the personal care industry, in the car wash industry, or the food service industry. 

To determine the three numbers for your business, you need to take these three steps:

  1. Within your business reporting, look for the...
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