Chairman ’ sNote
Time To Adapt
The environment franchising operates in is changing , with external threats to the business model coming from more sides than ever . To survive and continue to grow , we must adapt . The usual concerns — financing growth , recruiting and retaining good employees , finding the best sites for our stores — are problems we ’ re used to , and successful operators are adept at solving them . They ’ re the “ perennials ,” coming up year after year .
What ’ s new is what many in franchising see as overregulation by elected officials and appointed governmental agencies — most of whom don ’ t understand the day-to-day realities of running a business . They mean well , but the unintended consequences of their good intentions are hurting not only franchisees , franchisors , and other small businesses , but often the very people they ’ re trying to help : our employees .
At the recent Multi-Unit Franchising Conference Advisory Board meeting in Washington , D . C ., all these concerns and more were on the minds of board members planning the agenda and theme for next spring ’ s conference . Fittingly , the meeting took place during the IFA ’ s annual Franchise Action Network ( FAN ) meeting and lobbying on Capitol Hill . Protecting the franchise business model requires franchisees and franchisors to work together to help Washington , D . C ., understand our concerns .
At the federal level , the NLRB and the Dept . of Labor have promulgated rulings on joint employment , overtime pay , collective bargaining , and unionization . States also are getting into the act more aggressively and changing the rules of the game , especially in bellwether states like California . Even cities are getting into the act , passing minimum wage and scheduling regulations that apply there , but not in the rest of the state .
For franchisees with units in many states , the problem of compliance and vulnerability to lawsuits multiplies . And now , with cities such as Seattle and San Francisco instituting their own rules , managing an expansive franchisee organization is more difficult than ever because of changes in the external environment .
What franchisees can manage and control is what goes on inside their four walls and organizations . This is what board members are focusing on : run-
ning a tighter ship and adapting to legal and regulatory changes . Externally , franchisees must be more active in educating our politicians about the benefits of franchising , from our contributions to the local and national economy to our value as a training ground for young people in their first job .
The 2017 Multi-Unit Franchising Conference will tackle these issues and more head-on , providing the most up-to-date expertise on how to adapt , survive , and continue expanding in what increasingly feels like a hostile environment . Attendees can learn from one another — not only about the brands we like or how to be the employer of choice in our markets , but also how to plan for the regulatory changes coming down the road .
This opportunity to meet and learn from our peers is an important reason I attend the conference each year . And I ’ m not alone : more than 50 percent of attendees say they come for the networking opportunities . From our fellow franchisees we can learn the best sources of financing to meet our current needs ; which brands and markets are hot ; real estate conditions in cities we ’ re considering ; and how to attract and retain the best talent for our growing companies in a tight labor market . And build lifetime connections .
Last year we introduced a meet-and-greet event for first-time attendees on the evening before the conference . First-timers welcomed by board members and Franchise Update staff said it made a big difference and we plan repeat this next year .
Finally , I ’ m excited to announce that Marcus Lemonis , star of “ The Profit ,” a CNBC reality show about saving small businesses , will be a keynote speaker . Lemonis , a serial entrepreneur himself , understands the everyday challenges of running a small business , and by the end of the first three seasons had invested $ 35 million in the small businesses featured on the show . Prepare to be inspired .
This year ’ s conference attendance of 1,566 included 652 franchisees who represented more than 12,000 units and $ 11 billion in revenues — and the conference continues to grow each year . You ’ ll be in excellent company . Registration is now open . See you next April in Vegas !
Guillermo Perales CEO / Founder , Sun Holdings
2017 Conference Chair
6 MULTI-UNIT FRANCHISEE ISSUE IV , 2016