Mergers and acquisitions present opportunity for franchises

Posted on October 29, 2010 by Stacey Fousse

Franchises can gain more of a market share and reach more customers by joining forces. In one of the fastest-growing franchise trends, brands from all over the country have jumped on the merging bandwagon, and many have found success as a result. And while many jump at the chance to link up, it can often be a big decision, one that is not to be taken lightly.

One of the most successful entrepreneurs in recent franchising history has been wrestling with whether or not merge with a competitor. John Hewitt, who is currently the CEO of the Liberty Tax franchise, recently said in an interview with Blue Mau Mau, that his company, which has 3,468 franchise locations, was considering merging with another company, Jackson Hewitt.

"What happened with that deal is that I went in and talked with the management team," said Hewitt in an interview with the news source. "The [Jackson Hewitt] management team turned a deaf ear because they knew the new company would not need two CEOs and two CFOs. So they knew that they would be out of a job if we bought the company."

Liberty Tax was in the news recently when it was honored as one of the best franchises for African Americans. Black Enterprise magazine named the franchise as one of the 40 best for African Americans based on its affordability.