Retailers association says franchises could help long-vacant storefronts
Photo | Grant Welker
The Downtown Worcester Business Improvement District has prioritized sprucing up vacant storefronts with artwork.
The Retailers Association of Massachusetts is preparing for a majority of its members to either retire or sell their small businesses in the next decade, and the trade group's president said Wednesday that local franchise operations are going to be "key" to the future success of the small business sector.
Trade groups and local franchisees sought to dispel "misperceptions" about the franchising business model Wednesday in a State House program aimed at lawmakers and staff.
Take the recognizable golden arches of McDonald's, or the orange and pink lettering of Dunkin'.
"The well-known brand names ... might imply to you 'big business,'" said Rep. Paul McMurtry, co-chair of the Community Development and Small Business Committee, "but in reality are Massachusetts men and women who operate under that brand who actually own their own small business."
The Dedham Democrat praised what he said is "extremely competitive pay, great benefits, and exceptional training" at some franchise operations.
Retailers Association of Massachusetts President Jon Hurst said his organization, which represents 4,000 businesses across the state, has seen a rise in local franchisees applying for membership and now counts around 200 franchise owners among its ranks. Hurst said that uptick comes as an internal survey showed 70 percent of RAM's members plan on retiring or selling their businesses in the next decade.
"We feel like the franchisee model is a nice turnkey type of easy way to get into that world. And I think it will be something that is part of the solution to an awful lot of dark storefronts across the commonwealth," Hurst told the News Service.
Hurst said the goal of Wednesday's "Franchising 101" event was to be "an education" on the importance of this business model to the local economy. Panelists included Benny Omid, an immigrant from Iran who owns a Dunkin' in Allston, Carol Chin, who said she came to the U.S. with $20 in her pocket and now owns the McDonald's at Downtown Crossing, and Alvin Rasmus, who owns four Great Clips salon locations.
"There are no McDonald's in Massachusetts owned by McDonald's Corporation. They're all, every single one of them, are small businesses," Hurst said. "There is sometimes a misperception amongst government officials, amongst certain interest groups, that these are all big corporations, wealthy corporations, publicly traded, and they're not."
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