|Parable Group responds to ‘Forbes’ franchise scorecard|
|Written by Christine D. Johnson|
|Thursday, 19 June 2014 03:55 PM EDT|
Forbes magazine cites The Parable Group as the third-lowest ranked chain in America, according to statistics from FRANdata of Arlington, Virginia. However, Steve Portratz, president of The Parable Group, believes the reference in the June 16 publication is inaccurate.
“We are not a chain. We’re a franchise,” Portratz said.
Placed alongside a feature about the Curves fitness franchise, the chart cited chains with entry costs up to $150,000, but Potratz said Parable is “substantially more than that, so we wouldn’t rank in this grouping.”
Parable also hasn’t sold a franchise purposely for several years. The group’s last conversion franchise was in January 2005, and most recent new franchise was in April 2007.
FRANdata gave Parable a growth rate of minus 20% and a continuity rate of 36%, which put the group behind SuperCoups, a coupon company at the top of the list, and Realty World, second on the list.
“Because of where the industry was, it just didn’t make sense [to sell franchises],” Potratz told Christian Retailing. “What we’ve done is maintained the franchise for our existing franchisees, and as some stores have closed—there’s one closing now in Columbia, Missouri, as an example—obviously we have a negative growth rate from that because people required, they couldn’t sell them or whatever the situation. Our current franchisees, if you poll them, I think they would all be very happy because I talked to them all last week, and I know that for a fact.”
Potratz said Parable hasn’t reported to FranData for years.
“We have always been a marketing franchise primarily, which we still do for our franchise stores and a lot of other stores,” he said. “The whole thing is just poor data.”
Overall, Parable franchisees “today are happy, and we’re continuing to support them,” he said. “They have contracts that will renew on their choice, and we will support them as long as they continue to renew. As far as I know, everybody is happy with the relationship at this point.”