Plus News About Bojangles, 7 Brew, the Fed Rate Cut, Subway and Brands Giving Back
The International Franchise Association has opened registration for its annual convention and Emerging Franchisor Conference.
The convention, IFA26: Evolve, will feature an exhibit hall, immersive workshops, Emerging Franchisor Boot Camp, a Masterclass: Strategies from Top Franchise Visionaries, Thought Leadership Roundtables and other educational sessions, plus a 1980s-themed closing party and various networking opportunities. Speakers will include IFA President and CEO Matt Haller; Kat Kole, CEO of nutrition-focused global health company AG1; Codie Sanchez, co-owner of ResiBrands and founder and CEO of Contrarian Thinking; IFA Vice Chair Sam G. Ballas, a certified franchise executive (CFE) who is CEO and president/founder of East Coast Wings + Grill; IFA Chair Mary Kennedy Thompson, CEO of Business Network International who also is a CFE.
An IFA webpage offers registration and additional information about the convention, which will be Feb. 23-25 in the Mandalay Bay Convention Center in Las Vegas.
Created especially for franchises with fewer than 100 units, the IFA Emerging Franchisor Conference will present tactics for sustainable brand-building. Agenda topics include the IFA Fran-Guard workshop, which focuses on legal compliance and ethics; a session on five vital systems for supporting brands and franchisees, led by Aicha Bascaro, founder and CEO of the American Franchise Academy; in-depth examination of the National Labor Relations Board’s joint employer rule, also led by Bascaro; use of artificial intelligence; ways to keep franchisee growth on track; tips for scaling a brand’s online presence; a roundtable to help solve attendees’ specific problems; information for fine-tuning financial plans for growth; suggestions for creating an ideal franchisee profile; and approaches for managing tech resources.
The Nov. 10-12 conference will be at the Embassy Suites by Hilton Nashville Downtown. An IFA webpage offers registration and further details.
Deals in the Franchiseeverse
September deal-making involved multi-unit Bojangles and 7 Brew franchisees. Here’s a quick summary:
- BOJ of WNC LLC, the largest franchise group in the Bojangles system, sold its 120-plus locations in six states to private equity firm Eyas Capital, Nation’s Restaurant News reported. Eyas Capital plans to add more than 40 Bojangles in Cincinnati and Columbus, Ohio, markets, NRN said. At present, BOJ of WNC operates primarily in Western North Carolina.
- Franchise Equity Partners has taken majority ownership of 7 Crew, the 50-site operator of 7 Brew Drive-Thru Coffee restaurants, according to RestaurantDive. 7 Crew, with assistance from the investment firm, plans to open another 200 units of 7 Brew, mainly in Florida, New Mexico, Oklahoma and Texas. 7 Crew is the second-largest operator within the 7 Brew franchise.
Drilling Down into the Fed’s Rate Cut
Texas-based CGI Franchise, which trains brands’ development teams to optimize sustainable growth, presented a Tuesday webinar about the recent Federal Reserve interest rate cut. Longtime financial adviser Bryan Daniel and CGI Franchise CEO Art Coley made these points during the webinar:
- Government stimulus funds distributed during the COVID pandemic increased the cash in circulation by 31%, Daniel said, and “it’ll take a few years to get rid of that. We’re dealing with the consequences [resulting in inflation] right now.”
- The Trump administration has signaled plans to reduce business regulations. If this occurs, especially with banks, it should free up access to cash.
- Three more Fed rate reductions are possible in the next six months if inflation stays down; if it flares, there might be only two cuts. The results of rate cuts don’t emerge for 16-18 months. Because impact is delayed, the Fed can more easily do multiple small rate cuts instead of a single large one that might later prove damaging and trigger a rate increase.
- Even a small rate cut creates opportunities. With the recent .25% rate cut, a franchisee would spend $70 less per month ($840 per year) in interest on a 10-year, $300,000 Small Business Administration Loan 7(a) loan, Coley said. With that savings, he said franchisees might buy equipment or add a unit, and franchisors who planned to open 10 units within a year might instead open or sign 25.
- The labor market is tight, Daniel said, with “only 20,000 to 30,000 people looking for jobs, net. We don’t have immigration right now, and we have baby boomers retiring more rapidly than we thought.” The upside: Today’s job seekers are educated, with the government and tech sectors responsible for most layoffs. His postscripts: 1) Women of color have been the largest laid-off population in government, so brands should ensure strong support to minority-run franchises. 2) Employees laid off from major tech companies are well-funded because of stock options and their 401(k) plans; they may invest in franchises.
Subway Owners Buck Remodeling Mandate
The North American Association of Subway Franchisees (NAASF) is supporting a franchisee’s arbitration case filed in opposition to the brand’s remodeling mandate. Subway franchisees contend that the company has not done enough to justify the financial investment, especially in light of the brand’s struggles for the past few years, according to a Restaurant Business report.
“Subway has imposed a nonnegotiable remodel timeline that treats franchisees not as business partners, but as corporate ATMs,” NAASF said in a statement quoted by Restaurant Business. “These aren’t cosmetic touch-ups we’re talking about [but] six-figure investments that could devastate family businesses, drain retirement savings and force store closures across communities nationwide.”
Restaurant Business said Subway issued a responding statement, saying, “We recognize franchisees are facing increased pressures in today’s economic environment and have taken steps to reduce remodel costs, extend deadlines from seven to 10 years, and offer flexible options based on franchisee needs.” But the franchisor’s statement added: “In today’s competitive environment, guests expect a consistent, modern and inviting dining experience. Maintaining this modern restaurant image is necessary.”
Franchises Pay It Forward
Following are examples of franchises’ recent support for nonprofits.
- Culver’s donated $100,000 to the Farmer Angel Network, Farm Family Wellness Alliance and National Future Farmers of America. The fast-casual restaurant franchise raised the money through its mission to support family farmers by donating $1 for every rental and digital purchase of the 2025 movie Green and Gold. Since 2013, the brand’s Thank You Farmers Project has raised over $6.5 million to support agricultural education and rural communities, a Culver’s news release stated.
- The Bojangles Foundation invites nonprofit and community organizations to apply for its 2025 Literacy Grant Program. The initiative will award $1,000 to as many as 50 organizations that promote reading and education in Bojangles’ communities. In particular, the foundation wants to support projects that inspire people to love reading and improve access to educational resources, QSR Magazine reported. The Bojangles website has more information about the grants.
- As National Breast Cancer Awareness Month begins, Massage Envy Franchising pledged $15,000 to support the Susan G. Komen breast cancer organization, which funds research, assists community health outreach, advocates for policies that support patients, and provides resources to people affected by breast cancer. In a Massage Envy news release, the company said it also placed donation cards at its front desk with codes for guests to scan so they can contribute to Susan G. Komen.
- Penn Station East Coast Subs has launched the Deals for Down Syndrome, a fundraising drive benefiting programs and services for the Down syndrome community. Guests who donate $5 in restaurants will receive a booklet containing four Penn Station coupons, a $20 value, that can be redeemed online, via app or in the sandwich restaurants through Dec. 31. In a Penn Station news release, the franchisor said 100% of booklet sales proceeds will be contributed to local Down Syndrome Associations to support summer camps, education and enrichment.
