In a category that encompasses staffing companies, insurance agencies, IT solutions and more, business services franchises on the Franchise Times Top 500 combined to grow sales 25.6 percent in 2021, to $7.9 billion
The Franchise Times Top 500 is an annual ranking of the 500 largest U.S.-based franchise systems by global systemwide sales. In the staffing segment, Nexstaff was the sales growth leader, up 111.7 percent in system sales in 2021, to $55 million. Express Employment Professionals likewise had a big year, up 28.8 percent to $4.2 billion. It also advanced in the rankings, moving up from No. 35to No. 33.
Senior Vice President Dan Healy said a focus on the things Express Employment can control is a key business strategy to ultimately grow sales.
“I joke that about every 10 years in our industry, for about 15 minutes, you have a balance with the number of qualified people and open positions,” Healy said. “Then, after that, it shifts dramatically. Things keep changing and now, we know it’s a tight labor market and technically we’re in a recession if you go by the strict definition of it. So, what we’ve shared with our team is we want to be able to control what we can because there are things literally out of our control.”
According to Healy, what their personnel can control ranges from pushing for more sales activity to better recruiting.
Another industry going through a change is information technology services. The change, though, is one that will likely keep companies like Team Logic IT in a good position for years to come.
“The business model has grown in scope and demand as small businesses dependency on IT support has grown a great deal, and so has our product offering,” said Chuck Lennon, TeamLogic executive vice president. “At the beginning, we were going in when something was broken. We’d fix it, and install new hardware or servers. But now, things like cloud computing, cyber security and mobility issues allowed us to grow in a big way.”
TeamLogic Executive Vice President Chuck Lennon
Lennon said the IT needs of many small businesses are much greater than in the past, resulting in a great deal of sales growth.
“Our same-office-sales year over year have been in the 30 to 35 percent range,” Lennon said. “This year, we’re tracking at 34 percent. The forecast for our industry is extraordinarily strong, with the dependency on technology only increasing, and we don’t see any hurdles in our future that has us with any concern.”
No. 316 TeamLogic finished 2021 with $123 million in system sales, a 29.6 percent increase. Another IT company in the Top 500 was CMIT Solutions, which came in at No. 347 with $94 million in system sales.
In the insurance world, the brand leading the pack was Brightway Insurance, which entered the top 100 at No. 99. Brightway grew sales 30.4 percent in 2021 to reach $971 million.
“Brightway’s growth is the result of our dedicated, hard-working agents, and our compelling franchise models coupled with product offerings that customers need,” said Brendan Gaine, Brightway head of sales. “We enable our agents to provide trusted counsel in their local markets and offer comprehensive coverage from top regional and national insurers to protect customers’ hard-earned assets.”
Brightway Insurance Head of Sales Brendan Gaine
Gaine said Brightway was also fortunate that its franchisees were minimally impacted by the pandemic.
“Many of our tenured agents have continued to maintain long-term relationships with their customers over the past few years,” Gaine said. “Pandemic isolation might have initially restrained some of our newer agents in their ability to get out in their communities to quickly build their referral base, but many of them transitioned to the digital channel to build their business.”
Elsewhere in the insurance segment, No. 130 Keystone Insurers Group grew sales from $586 million in 2020 to $651 million in 2021, a jump of 11 percent. Pronto Insurance, meanwhile, saw its sales decline 28.7 percent as it dropped to No. 418 on the ranking.
Also dropping in the ranking was Dale Carnegie Training, which fell from No. 290 to No. 361 as its system sales fell 16.7 percent last year, to $85 million.