Is Franchising Still a Pathway to the American Dream?

The George W. Bush Presidential Center where I live recently hosted its sixth annual Forum on Leadership. The theme was “Is the American Dream at Risk?” and Nicholas Eberstadt, of the American Enterprise Institute, said, “It’s almost amazing to think that we’ve got this peacetime labor shortage with almost 10 million jobs that are unfilled at the same time that we’ve got millions and millions of working-age men and women sitting on the sidelines still.” (You can watch the discussion HERE.)

I won’t deny a labor shortage. But, from my perspective, #franchising certainly isn’t sitting on the sidelines.?

Last fall, I picked a dream team of franchise executives for my graduate research at Baylor University with one topic in mind: The American Dream. Having survived the pandemic with my own business -- a PR and digital agency that has been serving franchisors for 24 years -- I wondered: Was franchising still the big win for people in search of that ideal life??

I’ve supported this theory for the better part of my professional career. I’ve seen it play out across thousands of franchise locations on Main Street America. Restaurants. Gyms. Business services. Home services. Senior care. Salons. Children’s music education and more. You name it. BizCom Associates has worked with them all. We’ve seen firsthand how people pursue goals of small business ownership through franchising without having to reinvent the wheel. Instead, they invest in proven systems and join franchise networks with the added advantages of well-known brand names, business training, marketing support, supplier networks and more.?

But a global pandemic put franchising’s small business model to the ultimate test. It put the whole world to the test. So when it was time to write my thesis, I looked to the experts for how the industry fared and what the road ahead might hold. And I grilled them with questions: How did the media treat franchising? How did the government treat franchising? How did being essential or non-essential in the eyes of lawmakers impact their futures? What did franchisors do to support the resilience of their franchise networks? And, most importantly:?What kind of lasting impact would all of this have on the next generation of franchisees in pursuit of that illustrious American Dream?

My sources included 15 executives with 339 years of experience in franchising. Nine of them were employed at umbrella companies. Collectively, they represented some 49 franchise networks under their care with the exception of Matthew Haller , President and CEO of the International Franchise Association and its 1,400+ franchisor members.?

I won’t bore you with academic theories of agenda-setting and issues management. But across the board franchisors tackled obstacles with far better outcomes for franchisees than mom-and-pop small businesses who had to go it alone. None of that should surprise anyone. It’s strikes at the very heart of what is special about franchising: To be in business for yourself, but not by yourself. Today, that sounds downright patriotic.

Keep in mind, however, that while the worst of the pandemic was over during my research, some pretty tough hurdles still remained. Namely, the constant chatter about inflation, recession, and a serious workforce shortage among others. In fact, they persist today. Thus, the focus of those hurdles at the Bush summit.

Luckily, many positive characteristics of franchising persist as well.

Seven traits for the American Dream that exist in franchising.

When asked to define the American Dream, franchise leaders listed seven attributes in descending order:?

·??????Opportunity

·??????Control

·??????Financial stability

·??????Freedom

·??????Independence

·??????Business ownership

·??????Generational wealth

Unanimously, these were all things they said franchise ownership offered too. Meanwhile, nobody cited privilege, wealth or special access as requirements. Rather, as Tony Padulo C.F.E. , chief development officer for School of Rock , said, “The American Dream is, from a layman’s perspective, the ability that anyone can accomplish what they want. Regardless of heritage. Regardless of where they’ve come from. Regardless of money. Anybody can make it if they work hard and abilities are there.”?

It is that kind of fortitude that continues to triumph today. According to the 2023 Franchising Economic Outlook from the IFA, franchising will add some 15,000 new independent businesses and 254,000 more jobs this year. That growth indicates that franchises will number more than 805,000 units across the U.S. generating some $860.1 billion in total economic activity.

So, again, I ask: Is franchising still a pathway to the American Dream? According to my research, franchise leaders say yes. In fact, three of my experts have been franchisees at one time during their careers. And they each describe themselves as an example of that dream as result.?

Controlling one’s destiny is key.

Look no further than Mary Thompson - CFE .?

“I am living proof of the American Dream,” Mary says. “I’m one of 10 children. I’m the oldest. Literally, when I graduated from high school my parents gave me a suitcase for my graduation gift and said, ‘Where are you going? Because you can’t stay here.’”?

Mary put herself through college working two jobs, served in the Marine Corps, and entered civilian life thinking, “I wanted to control my own destiny and I wanted to be in charge of something. I wanted to lead a team, but I didn’t know anything about business. Franchising taught me everything I know about business.”?

Mary became a franchisee, a multi-unit franchisee, and then a franchise executive supporting the next generation of franchisees across several brands. Today she serves as Chief Operating Officer for Neighborly? , the world’s largest franchisor of home services, and next year she will serve as Chair of the International Franchise Association too.?

“The American Dream is being able to do what you love doing in a way that fills your heart and your soul,” Mary says. “The American Dream is taking a girl from the Marine Corps who didn’t even know what P and L stood for and teaching her how to run businesses. And run them successfully and profitably. The day we sold our businesses, I didn’t have to work another day in my life. I work because I love what I do.”

Queue "The Star-Spangled Banner" now.

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