Sioux Falls Business Journal

Actually, I engage in a weekly ritual of stripping my desk of the layers of expense reports and time sheets, piles of business journals from across the region, and a smattering of print products that my company produces.

Every week, the clutter seems to mushroom until it reaches an unbearable critical mass, forcing me to wonder exactly what all is in there.

During my latest exploration, I discovered a September copy of the Fedgazette, a regional business and economics newspaper published by the Federal Reserve Bank of Minneapolis.

I try to at least skim the Fed’s quite-helpful publication whenever it’s routed through the departments here at work. The paper often highlights regional growth or business trends that the Business Journal either has covered or should.

The paper’s latest issue that was buried underneath several other publications focused on the role of franchises in states such as South Dakota, Minnesota, North Dakota and Wisconsin.

I suppose that only rather-cloistered people, including business journal editors, might say what I’m about to utter: It was fascinating reading.

Stop snickering. It’s true.

I found the paper’s report quite riveting mainly because it touched upon an issue that often has perplexed me.

I’ve noticed that many local consumers – and some business owners, too – often disdain franchise businesses as something akin to being creations spawned from Satan. To hear some folks talk, you’d think that these so-called evil empires are destroying the noble way of life for your run-of-the-mill, neighborhood small-business owner.

And I’ve never totally understood that perspective.

I confess that I’ve expressed a few choice opinions about franchises, which seem to spread across a community’s landscape like ivy. While visiting another city, for instance, I’m frustrated whenever my host suggests eating at commonly visited places such as Ruby Tuesday’s. I figure I can do that at home.

However, it’s clear that franchising is a successful business model. And more often than not, franchise owners are your run-of-the-mill, neighborhood small-business owners.

That was one of the key points in the Fedgazette’s report. Franchises often are more local than many people think. They are today’s mom-and-pop stores with a twist. And here in the Upper Midwest, franchises increasingly are finding success across a variety of industries, not just restaurants.

It’s undeniable that a community’s distinctive flavor and uniqueness slowly slips away with each appearance of these homogenous enterprises. Predictability is partly the lure of the products and services that franchises offer.

But, as the Fedgazette puts it, “a funny thing happened on the way to the drive-through.” The most successful franchises turn out to be the ones owned by local, independent operators, and the presence of these business people helps funnel capital into local economies.

Since I’ve never run or owned a business, I’ve always been a bit intimidated about sharing my suspicion that franchises actually could be good for local economies. Emboldened now by the Fed’s reporting, I feel empowered to patronize my favorite franchised juice shop with a little less guilt.

And I’m also inspired to clean up more areas of my desk. Who knows what’s in that pile over there on the left? Maybe next I’ll find an intelligible explanation of Medicaid.