Sectors

Franchise Performance Group brings strategic insights, solutions and planning to clients in a variety of industry sectors. Here are just a few.

Automotive maintenance and repair is one of the largest segments of the franchise industry, with over $60 billion in annual sales. The industry is highly fragmented, with strong competition between national chains, dealerships, and independent repair shops. Explaining what makes an individual brand distinct is critical for attracting both consumers and franchisees. Franchise Performance Group has worked with several iconic brands to help them tell their story and explain their business model in a way that helps investors understand what sets the brands apart, and how those brands can use their unique strengths to capture a larger share of the market.

Quick-service and full-service restaurant franchise locations generate about $300 billion in annual sales and employ more than half of the nearly 8 million people employed by franchises in the United States. Franchise Performance Group has helped dozens of food and beverage brands grow by improving their franchise recruitment processes and explaining the genius of the brand to potential franchisees. By combining management advisory services, strategic problem solving, proven recruitment processes, and award-winning storytelling, we help turn emerging brands and regional brands into industry leaders, and have helped lethargic brands regain vigor.

Tutoring, college test preparation, and childhood enrichment franchises have flourished over the past decade as parents have seized the opportunity to help their children achieve. Many franchise candidates are naturally attracted to the opportunity to help kids. The mission of the organization is rarely a hard sell for education franchises — but getting candidates to understand and commit to the business model can be tricky. Franchise Performance Group uses our recruitment processes to help identify entrepreneurs with both a passion to serve and entrepreneurial drive.

Franchise Performance Group is actively investing in the pet care industry along with a private equity partner. Americans love their pets, and increasingly treat pets like full members of the family. As a result, pet care spending grew 62% between 2007 and 2017, reaching $69.61 billion in 2017 according to the American Pet Product Association. That included $29 billion on pet food, $15 billion on supplies, $17 billion on veterinary care, and $6 billion on grooming and boarding. In addition to investing, we have consulted with several national pet brands including Camp Bow Wow, a doggy day care franchise that has accelerated recruitment by utilizing content and strategies developed by FPG.

Franchise Performance Group has more than a decade of experience working with healthcare franchises. As management advisors, we have helped clients tweak business models to improve unit-level economics for franchisees. Once brand turnarounds were underway, we built new sales processes, trained recruiters, and developed content marketing plans designed to resonate with buyer personas specific to each brand’s business model.

The home services industry encompasses a wide range of businesses that aim to improve the lives of homeowners, such as remodelers, plumbers, roofers, electricians, carpet cleaners, home inspectors, lawn care providers, moving and junk removal companies, and home security businesses. Home services franchises tend to be some of the least expensive to start. For that reason, they tend to attract first-time business owners. They also attract blue collar professionals seeking to join a brand so they can better position themselves in a highly fragmented marketplace.

Franchise Performance Group, through FPG Capital, helps franchisors build preferred lending relationships with banks and craft lending programs to help franchisees start and expand their businesses. Working alongside private equity partners, FPG also infuses expansion capital into franchisors.

Veritable “fun factories” have been some of the fastest-growing concepts in franchising for the past decade. Younger Americans increasingly value and seek out exciting, memorable experiences, and this has created a growing market for event planning companies, trampoline parks, cruise travel planners, and even gyms that tie themselves to unique experiences like mixed martial arts or extreme endurance training.

Marketing franchises thrive by attracting entrepreneurs who enjoy networking within their local business communities and providing solutions that help their fellow entrepreneurs win more customers. Attracting the right type of franchisee is key, because new franchisees must be able to balance the time priorities of prospecting and operations during the early years of the business. The upside is that franchisees are typically able to build a recurring revenue base thanks to longtime relationships with local clients.

Retail Products & Services franchises have more than 60,000 combined locations and generate more than $30 billion a year in sales, according to the Franchise Business Economic Outlook. This segment of franchising is incredibly varied, encompassing salons, massage therapy, pet care, printing companies, shipping outlets, hardware stores, dry cleaners, cell phone repair, and more.

About 20% of Americans over the age of 6 are members of a gym, according to the International Health, Racquet & Sportsclub Association. That statistic has helped drive the growth of some of the biggest franchises in the United States, such as Anytime Fitness, Planet Fitness, Gold’s Gym, LA Fitness, and many, many more. While large brands have more money for marketing, the most successful emerging brands are winning by defining a clear niche, often by focusing on personal training and classes moreso than access to traditional equipment (“heavy rope” exercises vs. treadmills and barbells). In addition to creating a unique experience for customers, these businesses also can lower overhead by eliminating a lot of expensive equipment and reducing the amount of space they need to lease.

Franchising has a powerful economic impact, generating about $750 billion in sales and employing 8 million people in the United States alone (IHS Markit Economics). When done right, franchising allows a proven business model to achieve scale quickly by rapidly onboarding entrepreneurs eager to share in the success of a brand and participate in its growth.

Charities and non-profits have begun tapping into the power of franchising by creating “social franchises” that use the brand power and organization of franchising for charitable projects such as delivering reliable health care and effective medicine (as opposed to counterfeit) in impoverished regions. By setting up business models that can be tapped by local entrepreneurs, and then enforcing brand standards, social franchises have been able to bring critical services that transform lives through access to healthcare, energy and education.

Technology is a disruptive force in the business world. One of FPG’s primary focuses is the modernization of the franchise industry through data-driven transformation. This includes a deep understanding of buyer behavior, recruitment strategies, and ROI. It also means crafting solutions that transform the franchise buying experience for candidates.

FPG also works with technology-focused franchises to help them explain their business models and how they manage complexity to achieve innovation and growth. This sector of franchising got its start with companies that repair computers, and now also includes cell phone repair businesses and IT service providers.

Third-party logistics is one of the fastest-growing parts of the U.S. economy, with estimated revenues of nearly $200 billion in 2018, according to supply chain consultancy Armstrong & Associates. That’s up 25% since 2014. A mixture of on-demand manufacturing as well as online shopping are driving the growth, as well as the emergence of companies like Blue Grace Logistics that aggregate the demand of small businesses in order to secure favorable deals on freight shipping. FPG provided Blue Grace Logistics a platform for telling their story to potential franchisees — particularly those with B2B sales experience.