I recently had the pleasure of attending the 2024 FranChoice summer conference in Memphis, and let me tell you—it was an incredible experience!
Over the course of a week, we delved deep into the world of franchising, from learning and strategizing to building connections and exploring new business models. After 20+ years of these conferences, I’m still excited and eager to learn more.
The experience was both eye-opening and energizing, filling me with new ideas and a renewed passion for franchising. I walked away with three major takeaways that I’m excited to share with you, as they have given me a fresh perspective on the future of franchising.
Private Equity: Rethinking the Investment Game
One of the most enlightening aspects of the conference was about private equity. Traditionally, private equity can evoke concerns about quick-turnaround investments or high-risk ventures. I used to share these concerns, but conversations during the conference shifted my perspective.
We heard from private equity firms that are taking a more thoughtful and strategic approach. For example, one firm revealed that they sifted through nearly 3,000 franchise concepts before selecting just eleven franchises to bring under their umbrella.
Their criteria? They look at the team behind the concept, financial metrics, resilience during recessions, and the long-term viability of the business model. It’s a meticulous process designed to ensure they’re investing in concepts with real staying power.
What really stood out was learning that private equity isn’t always a one-off deal. Some firms are dedicated to pumping in additional capital to help the businesses they acquire grow stronger.
Take, for instance, a company we partnered with a few years ago. They needed a financial boost and private equity provided $30 million to enhance their operations and support their franchisees AFTER the purchase.
This long-term commitment from private equity can be a game-changer, providing not just initial funding but ongoing support and stability.
Responsible Franchising: More Than a Buzzword
Another major takeaway was the emphasis on responsible franchising. You might have heard this term buzzing around, but it turns out there’s a lot of substance behind it.
Responsible franchising is all about making sure franchisees choose the right concepts, grow at a manageable pace, and don’t overextend themselves—like buying more units than they can handle.
At the conference, it became clear that responsible franchising isn’t just a trendy phrase but a core principle that many successful franchise companies and consultants have followed for years.
Over my 24 years in the industry, I’ve seen how vital it is to work with reputable franchise concepts and consultants who are genuinely invested in your success.
Sometimes the best advice is to hold off on a franchise investment until it’s a perfect fit for your goals. Responsible franchising ensures that every move you make is strategic and supports meaningful growth.
Opportunity & Momentum: The Thriving Franchise Landscape
My third big takeaway was the sheer excitement surrounding the current franchise landscape. The industry is bursting with opportunity and momentum, and it’s thrilling to see so many businesses thriving. I returned from Memphis feeling energized by the many success stories and positive trends in the industry.
What’s particularly exciting is the array of stable, reliable business models available today. If you’re looking for something that’s not just a passing trend but offers long-term security, there are plenty of options. Think healthcare, wellness, home services, holistic health, tutoring for kids, and pet grooming.
If you haven’t already, check out these exciting new franchisor drops.
Additionally, many new industries are emerging—industries I think could be the new “steady eddies”. Many of these are making previously high-end services more accessible (like how Massage Envy brought more affordable massages to the masses), while others are merging medical and holistic practices to satisfy a growing desire for comprehensive wellness solutions.
Reflections on the Franchise Conference
As I reflect on the conference, I’m filled with optimism about the evolving landscape of franchising. The focus on responsible practices, strategic investments, and innovative opportunities points to a bright future for the industry.
If these insights resonate with you and you’re considering a new franchise venture or refining your current strategy, now is the ideal time to explore your options. Reach out if you’d like to discuss how these trends might positively impact your plans.
