Business View - January 2015 57
By Emma Pearson
Editorial Director, Franchise Business Review
In honor of 2015 marking Franchise Business Review’s
10th year in business, we looked back over the past
10 years of franchising and noted some of the biggest
changes that have occurred in the industry and how
they impact franchisees today. A snap shot of our ob-
servations follows.
1. Franchising has become much
more transparent.
The franchise industry as a whole is becoming increas-
ingly transparent thanks to the combination of mar-
ket forces and technology. Tighter banking regulations
have forced franchise companies to be much more
transparent about the financial performance of their
business units, which gives franchisee candidates
greater access to realistic capital requirements of the
business, as well as better projections on the potential
return on their investment. It is also much easier today
for potential franchisees to do their due diligence on a
franchise opportunity. Franchisee Satisfaction Reports
(like the ones FBR provides), industry data and dozens
of franchise-focused websites are available 24/7.
“Our online Franchise Business Review rankings are
great for our brand. We also share our detailed survey
results with potential franchisees,” said Jim Carpen-
ter, founder and CEO of Wild Birds Unlimited. “Reading
what our current franchisees think gives them an hon-
est look at what it is like to own one of our franchises.”
2. An explosion of new and a revival of
old concepts are challenging
iconic brands.
It has been interesting to observe the demise and re-
surgence of various franchise concepts. For example,
TCBY was the largest frozen yogurt franchise in the
world until yogurt lost its appeal in the late 1990s
when high-protein, high-fat diets were all the rage. The
introduction of Korean-style “tart” and other health-
centric frozen yogurt concepts in mid-2000 led to
its becoming popular again. By 2013, many of these
new frozen yogurt franchises had several hundred lo-
cations including Pinkberry, Red Mango, Yogurtland,
Menchie’s, Cherry Berry and Orange Leaf.
FRANCHISE
