Franchisors look for opportunities to expand in Las Vegas

The next time you drive by a McDonald’s, Sport Clips Haircuts or Dunkin Donuts and think something along the lines of “Oh there’s Corporate America again,” think again.

Yes, these establishments report back to the mother ship and are guided by a larger entity. But the actual owners of most of them live in your community. They may even be your neighbor.

“When people patronize franchised establishments, it’s a locally owned small business,” said Matthew Haller, spokesman for the International Franchise Association. “It’s just operating under a well-respected, national brand that has structure and support.”

The 2013 International Franchise Association Convention is in Las Vegas through Wednesday at the MGM Grand, bringing with it more than 3,500 people, making it a record show for the association. Of that, there are 200 to 300 exhibitors. The show comes to Las Vegas every other year.

“We always have higher attendance numbers when we’re in Vegas,” said Haller.

This year, Haller noted, the industry and the association are focused on growth.

“Our members are doing good. The economy is coming back for them,” Haller said. “We lost a lot of establishments in 2009, 2010. In 2011 we were about flat and we got that back last year.”

In all, 757,055 franchising establishments are expected nationwide by the end of 2013, a 1.4 percent increase from 2012’s 746,828 total. The industry is expected to create 8.26 million direct jobs in 2013, up 2 percent from 2012’s 8.1 million jobs.

The association doesn’t forecast franchise numbers by region or state, but Haller said “there’s a lot of growth happening in Nevada.”

“A lot of people are looking to control their own destiny by opening their own business but not by themselves,” Haller said. “It’s a partnership between the franchisor and the franchisee.”

For Las Vegans who are interested in getting into franchising, Haller recommended checking out the association’s website, franchise.org, which features 1,200 brands, research and information.

And in this city, there are many opportunities.

Watermill Express, for example, is planning to add four new locations to its existing footprint of 90. LED Source, a franchisor of LED lighting, plans to open its first Las Vegas location in 2013. Flip Flop Shops is identifying locations for two more shops in the valley, adding to its three existing Southern Nevada stores. With two locations already, Honest-1 Auto Care is looking to develop 10 more in the market. And Papa Murphy’s has plans to add five stores in 2013, which would double its local footprint.

“We have very structured growth plans for Las Vegas,” said Barbara Moran-Goodrich, president and CEO of the Moran Family of Brands.

Formerly, the company operated in the city but closed up shop during the recession. Throughout the next 36 months, expect six Milex Car Care and Mr. Transmission locations to open in the valley. Nationwide, there are 150 stores.

And those franchises already open in the valley mostly seem to be in growth mode. Tim Davis, president of The UPS Store, said companywide, same store sales were up 4.5 percent in 2012. There are 62 locations in the local area that cater to small business owners’ needs.

Fastsigns International operates five locations in Nevada, three of which are in Las Vegas. Last year, same-store sales at the 475 U.S. locations were up 9.89 percent over 2011. The Nevada centers were up 10.1 percent, with two of the Las Vegas locations up 24 percent and 20 percent.

“We’re very excited about the kind of results that we’re having,” said Catherine Monson, CEO of Fastsigns International.

In the Las Vegas area, there are 10 company Sport Clips locations, and the brand’s founder and CEO, Gordon Logan, said he’s actively looking for more. In the last two years, four stores have been built.

“The real estate situation in Las Vegas is a lot better for us today than it was five years ago, so we’re trying to take advantage of that,” Logan said.

Last year, same-store sales at the Vegas locations were up about 15 percent. Sport Clips franchises in 45 states.

Contact reporter Laura Carroll at lcarroll@reviewjournal.com or 702-380-4588. Follow @lscvegas on Twitter.