Dallas-Fort Worth is known to many as the headquarters of headquarters. But it’s not just big business that chooses Dallas as its home. As The DEC Network will tell you, the entrepreneurial spirit is alive and well here, too — and that includes franchising.
According to Carlos White, who was appointed as chair of Mayor Eric Johnson’s Franchise Initiative two years ago, Dallas — and the region — has a growing reputation as the global hub of franchises.
He pointed to Plano-based European Wax, which noted system-wide sales of about $955 million in January, and Waco-based Neighborly Brands, which surpassed $4 billion in system-wide sales in 2023.
“So we have a large franchisor base, a large franchisee base, and fortunately, we’re in the state of Texas, where it’s not as regulated [as] a lot of these other areas,” said White. “Plus, we have 7.5 million people who live here, and more moving in all the time. That’s why franchisors want to expand in North Texas.”
Carlos White, chair of Mayor Eric Johnson’s Franchise Initiative and franchise track captain at Dallas Startup Week 2024, has been instrumental in positioning Dallas as a global hub for franchising. [Photo: Tres Cox/The DEC Network]
How to evaluate an opportunity
White moderated a panel of experts at Dallas Startup Week on August 14 during the franchise track for people who may be considering getting into this space.
Jonathan Massey, vice president of franchising at Shipley Do-Nuts and former director of franchise development at Wingstop, was one of the panelists. Shipley’s was founded as a wholesale bakery in the mid-1930s by Lawrence Shipley Sr. and his original recipe. Shipley expanded into direct-to-consumer in the ‘40s, opening the first stores in Houston, before expanding to Dallas and other Texas cities. There are now more than 350 locations across 12 states.
Massey says if you’re contemplating an opportunity as a franchisee, look for a strong leadership and brand team, a true partnership, and agility and nimbleness.
De-risk and add value
Although nothing is without risk, Randy McBrayer, the senior director of franchise and business development at Sambazon and another panelist, says franchising offer significant advantages from day one. Sambazon is the leading brand and supplier of Acai products in more than 50 countries. As the first certified fair trade and organic acai company in the world, it wants to do well by doing good, both for individuals and for the Amazon rainforest.
“Franchising gives you a brand and entrepreneurship partner as well as a built-in customer base,” McBrayer said.
Yolanda Stevenson, founder and now franchisor of TaxiMom, said she was trying to solve her own problem: earning money while balancing the needs of her children.
Today TaxiMom is a SaaS-based company that offers safe, reliable transportation for children ages 3 to 22, including those with special needs. Stevenson tapped into an underserved market and now wants to create a bigger opportunity for other moms as franchisees. She has plenty of work available, with 1600 kids on the waitlist.
Her advice to potential franchisees? Have grit and a basic understanding of business, establish trust by knowing how to talk and interact with various people, learn how to compromise —and specific to TaxiMom, love kids.
Other suggestions include evaluating how the franchisor trains its people, familiarizing yourself with the fee structure, and asking about the type of support offered.
Dallas sets the pace
White said that Dallas has made its mark in the franchise game, noting that Matthew Haller, president and CEO of the International Franchise Association, wants to follow the city’s playbook.
“It’s the largest trade organization for franchising in the world … they saw what Mayor Eric Johnson is doing in Dallas,” White said. “They came down here and said, ‘we want to franchise your franchise program throughout the United States.'”
It’s meaningful validation for people in North Texas who have the entrepreneurial bug but aren’t ready to go it alone. And it’s not just for one type of business.
“We have a robotics company franchisor that’s coming here …. That’s Dallas, from the quick service restaurants to every industry. That’s our Big Dallas Energy!” White said.
Voices contributor Nicole Ward is a data journalist for the Dallas Regional Chamber.
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