Monthly Archives

January 2021

Announcing: FranConnect Acquires FranchiseBlast

By | News
Franconnect and FranchiseBlast

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

Read more at the FranConnect blog.



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Franchising Trends: Stay-At-Home Customers

By | Franchise Trends

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.

According to Google, there are a few underlying behaviors of the at-home consumer.

  • A new relationship with time and space. Time is more fluid, and we are finding more uses for space. The bedroom is becoming the home office, and the living room is turning into a gym for at-home workouts. The kitchen table is doubling as a classroom as kids continue to homeschool. As a result, home services franchises are thriving.
  • Seeking novel ways to enjoy the outdoors. Travel restrictions mean that people are looking for new ways to have adventures. One way is enjoying their own backyards and outdoor spaces, helping pool, deck, and similar companies.
  • Redefining companionship. As people are spending more time apart, human beings, who are social creatures by nature, are looking for companionship. This has led to a boom in pet buying and the services, such as boarding and daycare, that support animals as part of the family.

Home Services, due to their essential nature, are often considered recessionproof. In fact, during the pandemic, some of these businesses are booming. According to CNBC, “Home extensions and additions jumped 52%, and security and privacy also saw much greater demand with interest in fence installation and repairs up 166%.”

Premium Service brands, which offer lucrative and unique brands in niche areas, stood out as a group sharing positie news. 360° Painting grew their system by 15 units, and saw 35.5% increase in sales Q1 2020 over Q1 2019. In fact, several brands had success stories to share in 2020.

Pools and other outdoor activities are booming. According to MSN, “Pool demand is so strong that even Wall Street investors are taking note. Poolcorp, an international distributor of swimming pool supplies, parts, and outdoor living products, hit an intraday all-time high this week and is up over 54% year to date. The stock is on pace for its best year since 2003.”

Poolwerx, one of the world’s largest pool and hot tub maintenance providers. opened 11 stores in 11 months in Australia. “The home service industry has proven time and time again to be recession-resistant, and this has become particularly evident during Covid-19,” CEO John O’Brien explained.

As stay-at-home customers look for companionship, they are finding it in animals. Many of us have friends or neighbors recently buying a dog to fill the void created by the pandemic. According to the Washington Post, “Shelters, nonprofit rescues, private breeders, pet stores — all reported more consumer demand than there were dogs and puppies to fill it. Some rescues were reporting dozens of applications for individual dogs. Some breeders were reporting waiting lists well into 2021.”

Camp Bow Wow, North America’s largest pet care franchise, includes dog daycare and boarding. During the pandemic, they opened nine new camps nationwide, and continued their high-growth trajectory with twelve franchise sales across the continent.

Stay-at-home customers is a trend here to stay in 2021 and beyond. The examples above are just some of the businesses that will emerge stronger as we move forward together.



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Franchising Trends: The Rise of Multiunit Ownership

By | Franchise Trends

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

  • A small but growing number of franchisors are seeking out multiunit owners due to their overall advantages.
  • More sophisticated concepts require owners with more experience (and capital) needed to enter the market.
  • If a multiunit franchisee has 30 units already, they likely have strong operations, so adding one more will be less risky than a new franchisee with no experience.
  • Technological advancements such as video calls, online accounting, and more means that owners can live from anywhere.

Multiunit owners were more likely able to weather the pandemic’s storm and any economic uncertainty that may be coming in the future. Additionally, according to Global Franchise Magazine, “Large territory, multiunit franchisees are the best way for a franchisor to operate a franchise business with less effort put into monitoring franchisees and a much higher return when they sell the company.”

In general, if you are a 150-unit system, it is easier to manage 30 50-unit franchisees than 150 franchisees.

Being a multiunit owner is different since it is less tactical and hands-on and more managerial. We take a look at three successful multiunit systems and how they manage at scale.

Flynn Restaurant Group is a multiunit and a multibrand concept of Appleby’s, Taco Bell, Panera Bread, and Arby’s. With a turnover of over 2.4B annually and 47,650 employees, they are among the most respected brands in the community.

Flynn stays on top of their units by having incredibly high standards. They accept nothing less than perfection when it comes to the physical condition of their restaurants, according to their website. “we believe in ‘zero tolerance,’ which for us relates to the physical condition of our restaurants. We strive for our units to remain as close to “perfect” in their appearance as possible because we believe it is a critical component of the guest experience and a key factor in retaining the best talent.”

The Saxton Group is a family-owned multiunit franchisee with locations throughout Texas and beyond. Since 1982, they have developed and operated over 125 restaurants.

They introduced the popular McAlister’s brand to Texas, where it took off. One of their strengths as operators is their solid locations strategy. According to the Dallas Business Journal, “One of our initial growth (drivers) in Texas was to open in college towns. Everywhere we have a market for development of McAlister’s, usually one of the first places we go is to the college market.”

Dyne Hospitality Group is Tropical Smoothie Cafe’s largest multiunit franchise with 60 cafes in 6 states and many more under development.

They manage a wide area with this iconic health brand by instilling a powerful culture. For them, culture is a living, breathing part of the business. According to their website, they “encourage their teams to live by it, and hold each other accountable to it.” They use it as a foundation of key business elements, including hiring, promotion, team member reviews, performance, and communication. The pillars of their culture are:

  • Invest in people
  • Understand why
  • Make smart decisions
  • Make it happen

Last Word

The rise of multiunit ownership is here to stay. FranchiseBlast has tools available for both franchisors and multiunit franchisees to manage their brand, communications, and more. Book a demo with us to learn more.



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