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IFA chairman Jon Luther explains why the International Franchise Expo is a great economic contributor.
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-- Joshi X.
Well after twenty years in Washington DC the international franchise expo is heading to New York City for the first time this weekend.
Hope would connect -- -- -- with new business opportunities joining me now for the six small business big ideas -- -- -- the former CEO Dunkin' brands now president of the international.
Franchise association task to finally meet in person by relentless -- going -- -- so it's -- it is nice to have you you've done a lot we -- a lot of the franchising.
Set up for Dunkin' brands but now you're running the franchise association.
Is just do you think in your opinion going to be big job creator this is Javits Center about the -- Yeah it's it's so great that you mention that because people forget that small detail about franchising that it creates a huge amount of jobs and -- -- great economic.
Contributor.
This week we have the I have -- here for three days first time in in New York.
Over 101000 people will be attending looking for opportunities and franchising.
What types of businesses are going to be there I find him franchisers allies -- -- a lot of food.
Companies that it.
Yeah and of course that's my relationship right it's always been on the restaurant side of it but there are many categories of franchise including hotels and commercial services business services.
Home services side health care services.
A number of a franchisee.
Franchise or is there are probably all only about 40% of franchisees restaurants.
The -- of it is all of the other types of rest franchise.
Opportunities.
So it's a terrific get jobs generate a job.
Generator but also a eight -- future for the American dream as well.
There's been a lot of initiatives for veterans getting veteran get back to work and a lot of the franchise companies have been offering extra help with financing.
To veterans to get them back on their feet open up new -- and you -- -- -- it's very difficult to get financing how is that changing now.
Well the fan financing part for veterans -- is is -- been -- phenomena we we we applaud and and and and love the veterans coming home.
And they IFA has created that -- And today that -- about a year ago the activity around that over 4200 veterans are now involved in franchising.
And it's because of franchise stores have provided some financial incentives to make it easier for them to give -- But what we also did is about two years ago the IFA.
Created what we call the small business lending summit and what we did is we married bankers.
Franchise or some franchisees together to educate both of us all three Basra there.
That in and how to apply for loan think -- good credit.
Bankers now believe that the franchising.
Lending area is a safer area because less risk.
It out of business for yourself or your business for yourself but not alone.
And so as a result there are higher success rate in franchising.
Also the franchise stores have to prepare the franchisees.
In how to apply for bank loans it's not like the old days there's lots of requirements the other thing as we brought in the SBA and Karen mills is team has -- -- -- -- done wonderful work for us sort of put all that together.
And -- are seeing an increase in lending.
Not where we want to be but a great increase over.
Here we -- know very well that small businesses are the job creators in this nation -- -- the same time small businesses.
Are concerned about demand are concerned about opening up new franchisees new you know how programmes anything that you will.
Because of the current economic environment what do you tell those that are nervous about the economy overall monopoly economy has -- -- Well -- the hard part because under all -- -- uncertainty with all of the regulations that bankers and reserves are required to being far more.
Screw us over who is going to be a a a good credit.
So we've involved a number of folks who -- IFA and franchise stores are working with these lenders to get some for preferred lending environment just getting better job -- Marginally better lot better than 20112012.
People -- thinking that the current business is good.
And and and indicators are good but there's still uncertainty it's not all the way yet.
You have been at this for a long time I can say you rent -- you were CEO actively CEO of certain brands from 2000 through 2010 and I took him at.
If you want to step into a new -- today as a CEO in this country would you do anything different now that you didn't didn't do in 2003.
Certainly.
With the economic environment the way it is you have to think long and hard when you select franchisees to make sure that they're prepared.
Much better prepared than they were in the past.
The other thing is that you'll also want to make sure that technology.
Becomes important part of -- -- go forward and any franchise or any business environment.
And supply chain now has become far more critical in the light of commodity costs and other issues particularly in the in the restaurant side.
So I said to somebody awhile ago it's -- ten years ago technology and supply chain would be in the tapped and challenges of today's of the top two.
-- it be better prepared in those areas as you go forward.
John look are you have a lot to teach those kids today -- the next three days out of the Javits Center until and -- to have you.
