Multi-Unit Franchisee Magazine Issue II, 2011 | Page 54

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“More and more schools have cut
back on their recreation programs and
facilities, making children’s services
even more in demand.”
—eric stites

eric stites

recognition, marketing support, and buying power, and the
franchisor gains an instant royalty stream from an experienced
operator with a customer base.
Typically, conversions are easier to finance than new units
because of their existing revenue stream and the brand recognition and proven model of the franchisor. Some of the
trendsetters in this segment have been Gold’s Gym, 7-Eleven,
Checkers/Rally’s, Maaco, and Meineke.
• Mobile food. Perhaps it was only a matter of time before our fast-paced, on-the-go culture began demanding that
food join them. That’s just what Rose has been seeing in the
Los Angeles area. “The popularity of mobile food trucks has
just exploded out here,” he says. “I think this is just another
function of our mobile culture. I think franchisors and franchisees should be asking themselves, ‘Am I everywhere I need
to be?’” He says social media tools are a great way for these
mobile-based services to let their customers know where they
are any time of day.
This mobile trend can also alleviate the need for real estate
and other significant brick-and-mortar costs. Watch for more
mobile food concepts like Sauca, out of Washington, D.C., and
ZooHoo’s Eatery in Vermont.
• Co-branding. Be it in the same facility or next door, cobranding is a smart strategy and should remain effective in the
years ahead. Tristano says this strategy can be a smart decision
because it spreads risk and provides additional marketing and
day-part opportunities. “You can save rent, among other things,
when you couple a sandwich shop like Subway with a dessert
destination like Cinnabon.”
• Green is here to stay. Though not new, green/
organic/recycling-based franchising initiatives are likely
to remain solid and continue to grow. There’s a strong
cultural demand for environmentally friendly products
and services. Subway, a favorite franchise on numerous
lists for years now, has begun serving salads in partially
recycled salad bowls, and uses redistribution centers that
bundle the supplies franchisees need more efficiently so
full truckloads can deliv