Thursday, October 4, 2012

Franchises - Leaders in the Industry

Tired of not getting paid what you’re worth (or not paid at all) and want to start your own, already-proven gig? That’s the lure of franchising. Pick a brand, add water and a few bucks, and voila, you’re an entrepreneur.  Running day-to-day operations and turning a profit is another matter, of course. Success starts with picking the right system to begin with, then rooting out the names that give the best bang for your investment buck. But with roughly 3,500 franchises to choose from, each governed by a Franchise Foreclosure Document (FDD) running around 400 pages, where to
begin?

With the help of Robert Bond, publisher of Bond’s Franchising Guides and chief executive of the World Franchising Network, a franchise database, Forbes weeded through the 100 most recognized franchise operators and found 20 that delivered the best bang for a franchisee’s investment buck.
“One of the reasons people buy a franchise is they have instant credibility,” says Bond. “If you are a lesser known franchise, it takes years to get that national recognition.”

Bond concedes that big names come with higher startup fees, but the payoff is often worth it. “Because they are big, they are not lusting after franchise fees and royalties,” says Bond.  Another reason size matters: “The best ones take care of their franchisees,” he adds. “A lot of franchisors don’t provide value to the franchisee. Unless they do that on a long-term basis, the system is not going to work.” 

Our methodology took into account four variables: estimated minimum initial investment (including initial fees plus equipment costs); total locations (we wanted at least 50, and more was better); survival rates (measured as the percentage of closings during the previous three-year period to the total number of units)

These operators give you the best shot at success for your investment dollar.

No. COMPANY
1 Domino’s Pizza
2 7-Eleven
3 Kumon North America
4 McDonald’s USA
5 Papa Murphy’s International
6 Merry Maids
7 Great Clips
8 Sport Clips
9 Edible Arrangements International
10 Jimmy John’s
11 Liberty Tax Service
12 Papa John’s International
13 Jiffy Lube International
14 Panera
15 Maaco
16 AAMCO Transmissions
17 Burger King
18 Dunkin’ Donuts
19 Sylvan Learning
20 Meineke Car Care Centers
Top 20 Franchises

http://www.worldfranchising.com/download/ForbesTopMoney2011.pdf

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