2011 Franchise Times

Transcription

2011 Franchise Times
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2011 Franchise Times
TM
Top 200 Overview
Introducing the Franchise Times
Top 200 systems
One reason the Great Recession
was so unusual was the lack of
growth in franchising. Bankruptcies
were more common than
development agreements. During
most downturns, franchising
grows as debt prices drop and
the unemployed target job
opportunities.
T
his time the credit crisis and the
seriousness of recession kept many
systems from growing. But that
was only a temporary setback. Growth
returned to franchising in 2010, based on
an analysis of the Franchise Times Top
200, our annual ranking of the largest
franchise systems by system-wide revenue. On an adjusted basis, the 200 largest
systems saw total sales growth of 6.3 percent. Unit count grew by 5 percent. The
upshot: Franchising returned as an economic bright spot.
Several franchise-heavy industries
enjoyed good years in 2010. Consumers
returned to restaurants. Businesses spent
on travel again, resulting in a boon for
the nation’s hotel chains (and, in turn,
many restaurants). Senior-care services
are increasingly popular thanks to aging
baby boomers. People always need haircuts. And, oddly, massage franchises have
flourished amidst the recession.
Overseeing growth
To be sure, it remains easier to grow
internationally, where many countries are
hungry for U.S. franchise brands even if
their economies are weak. Slightly less
than two-thirds of the Top 200 franchises’ total units were in the U.S. in
2010, down from 67.8 percent in 2009.
That 2010 figure was the lowest percent-
age of domestic franchise units we’ve ever
recorded.
Companies with strong international
presences were more likely to grow. In
addition, many of the largest systems
have reached their limits domestically
and are now focusing on international
unit development to sustain annual revenue growth.
The best example of this is KFC, the
third-largest franchise system in the
world. System revenue grew a robust 9
percent last year, but that was due entirely
to its international success, mainly in
China, where pictures of Colonel Sanders
are as prevalent as pictures of Chairman
Mao. In China, KFC is McDonald’s.
It’s a different story domestically.
KFC’s unit count declined last year by
113. Operators struggled, and the chain’s
grilled chicken promotion did little to
boost the concept’s fortunes. It’s now
embroiled in a brutal dispute between
the company and its franchisees over
remodeling requirements—a dispute that
is resulting in even more store closures.
Burger King’s domestic franchisees
had an even worse year. The chain’s U.S.
restaurant count fell by 260 in 2010. That
offset international unit count growth of
more than 300, keeping Burger King’s
system sales to only slight growth, to
$14.8 billion. This allowed the ever-growing Subway to leapfrog the chain, making
the Connecticut-based sandwich maker
the fourth largest franchise system in the
country.
For the most part, franchise systems
performed admirably well in the U.S., a
nice rebound after revenues for the Top
200 fell 1.1 percent last year, the first
such decline in the list’s history. Big systems got going again this year, yet growth
was present up and down the list. Over
half of the systems, 130, added at least
one new unit last year. And 135 of the
200 saw revenue growth.
Several systems with little or no international presence grew quickly last year.
The fast-casual burger chain Five Guys
surged 25 spots up our ranking, breaking into the Top 100, at No. 97, thanks to
strong unit growth that pushed systemwide revenue up 44.5 percent. At No. 96,
the sandwich chain Jimmy John’s also
broke into the top 100, moving up from
No. 104 to 96. Meanwhile, the chickenwing chain Wingstop debuted on our
ranking at No. 164.
Of course, people have to work off
those chicken wings and big burgers.
Anytime Fitness moved from No. 189
to No. 178, while its rival in the lowcost fitness chain category, Snap Fitness,
debuted on the ranking at No. 193.
How we rank the systems
This is the 12th year we’ve published
the Top 200. We gather the information through a variety of sources—such
as companies’ self-reported data,
Securities and Exchange Commission
documents, the franchises’ FDDs and
other publicly available documents. It
is an imperfect ranking. The sheer size
of the franchise community, combined
with trouble obtaining useful information and changes in systems’ eligibility
for the list, means that some companies
appear and disappear from the ranking
each year. We adjusted the sales figure for
this story to remove that factor and to get
a more accurate indication of the companies’ actual performance.
The franchises are ranked by systemwide sales, the strongest indicator of a
franchise system’s size. For instance, the
cleaning service Coverall has roughly
the same number of units (9,416) as
Domino’s Pizza (9,351). Yet a Domino’s
unit on average made $670,000 in revenue last year. Coverall? $34,090.
Top 200 continued on 33
October 2011 Franchise Times 3 n
Top 200 Franchise Chains by Worldwide Sales
The Numbers
2011 Franchise Times
What’s behind the pluses and minuses
TM
This year we’ve deepened our look behind the numbers presented in
our Top 200 list. In addition to a general analysis of what those figures
really mean, financial reporter Jonathan Maze has broken the list
down by industries to see what’s behind record growth—or falling
numbers. We’ve also included the next 100, to look at some concepts
that might make the ranking in future years.
Top 200 Franchise Chains
Worldwide
Sales ($M)
Domestic
Units
Intl
Units
Total
Units
Percent
Franchised
Sales
Growth %
Unit
Growth %
McDonald’s Corporation
77,380
14,027
18,710
32,737
80%
6.9%
0.8%
7-Eleven
Seven and i
Holdings Co. Ltd.
63,000
6,137
33,345
39,482
96%
7.0%
5.7%
3
KFC
Yum! Brands, Inc.
19,400
5,055
11,798
16,853
73%
9.0%
3.6%
4
Subway
Doctor’s Associates, Inc.
15,200
23,850
10,109
33,959
100%
10.1%
5.9%
5
Burger King
Burger King Holdings, Inc.
14,800
7,253
4,998
12,251
89%
0.5%
0.9%
6
Ace Hardware
Ace Hardware Corp.
12,500
4,108
200
4,308
100%
0.0%
-9.2%
7
Circle K Convenience Stores
Alimentation
Couche-Tard, Inc.
10,726
3,367
4,056
7,423
61%
6.3%
4.4%
Rank
Franchise Concept
Parent Company
1
McDonald’s
2
Worldwide sales are in millions. * Franchise Times Estimate
Aaron’s
Contacts: Greg Tanner
Phone: 678-402-3778
#53
TOP 200
AlphaGraphics
Contacts: Paola Hall
Phone: 800-528-4885
E-Mail: [email protected]
E-Mail: [email protected]
Web site: www.aaronsfranchise.com
Web site: www.alphagraphicsfranchise.com
Aaron’s is North America’s leader in the sales and lease ownership of household
necessities: brand name furniture, appliances, electronics, and computers. Compare
our business model and results to any other franchise system and you will choose
Aaron’s--more than 1830 showrooms; 56-years of consistent, reliable results; NYSE
traded company; ranked #52 by Franchise Times; and, a compelling FDD. Our
franchisees are happy, they’re making money, and they would do it all over again-95% are multi-unit franchise owners.
n 4 Franchise Times October 2011
#184
TOP 200
It is an exciting time to join the visual communications industry. With new
technologies providing faster, easier ways to reach targeted clients, and a growing
demand for integrated marketing services and tracking abilities, you want an
experienced partner who can help you make the most of this evolving industry.
We invite you to explore whether owning an AlphaGraphics business center is right
for you, as well as how being part of a 41-year brand can bring you success.
Top 200 Franchise Chains by Worldwide Sales
Franchise Concept
Parent Company
Worldwide
Sales ($M)
Domestic
Units
Intl
Units
Total
Units
Percent
Franchised
Sales
Growth %
Unit
Growth %
8
Pizza Hut
Yum! Brands, Inc.
10,200
7,542
5,890
13,432
85%
6.3%
1.1%
9
Wendy’s
The Wendy’s Company
9,100
5,883
693
6,576
79%
1.1%
0.5%
10
Marriott Hotels,
Resorts & Suites
Marriott International
8,000*
357
197
554
41%
5.3%
1.7%
11
Hertz
Hertz Global Holdings, Inc.
7,600
4,942
3,576
8,518
53%
7.0%
5.2%
12
Taco Bell
YUM! Brands, Inc.
7,200
5,634
262
5,896
79%
2.9%
0.7%
13
Hilton Hotels & Resorts
Hilton Hotels Corporation
7,000*
258
286
544
43%
6.1%
2.3%
14
Health Mart
McKesson Corp.
6,920
2,800
0
2,800
100%
28.1%
12.0%
15
RE/MAX
RE/MAX, LLC
6,625*
3,411
2,873
6,284
100%
0.4%
-2.4%
16
Domino’s Pizza
Domino’s Pizza, Inc.
6,268*
4,929
4,422
9,351
95%
11.9%
3.9%
17
Dunkin’ Donuts
Dunkin Brands, Inc.
6,004
6,772
2,988
9,760
100%
5.6%
6.2%
18
Tim Hortons
Tim Hortons, Inc.
5,625
602
3,424
4,026
100%
6.3%
12.5%
19
Holiday Inn Hotels
& Resorts
InterContinental
Hotels Group
5,100*
679
562
1,241
100%
7.1%
-5.9%
20
Sheraton
Starwood Hotels
& Resorts Worldwide, Inc.
5,100*
196
199
395
51%
13.3%
0.3%
21
Hyatt
Hyatt Hotels Corporation
5,000*
325
104
429
31%
18.7%
1.2%
22
Applebee’s Neighborhood
Grill & Bar
DineEquity, Inc
4,413*
1,862
148
2,010
85%
0.3%
0.7%
23
Hampton Inn
& Hampton Inn & Suites
Hilton Hotels Corporation
4,400*
1,698
46
1,744
98%
4.8%
0.0%
24
Chili’s Grill & Bar
Brinker International
4,400*
1,295
220
1,515
46%
-4.3%
0.7%
25
Holiday Inn Express
InterContinental
Hotels Group
4,100*
1,716
359
2,075
100%
7.9%
0.3%
Rank
Worldwide sales are in millions. * Franchise Times Estimate
#31
TOP 200
Contacts: Franchise Development Team
Phone: 888-894-2676
Web: www.arcoampmfranchise.com
www.bpampmfranchise.com
ampm Too Much Good Stuff
The BP gasoline and ampm business includes fuel and convenience store franchises offered in the states of IL, IN, OH, GA and FL. The ARCO gasoline and ampm convenience
store franchises are offered in the states of CA, AZ, NV, WA and OR. Powerful, distinctive branding is the cornerstone of our high visibility in the convenience-store industry.
A key element of ampm’s convenience strategy is the delivery of a differentiated and distinctive offer focused on meeting the needs of its target customer segments. The ampm
brand has meaning to its customers (irreverent, fun, satisfies urgent wants, indulgent...TOO MUCH GOOD STUFF). At ampm, there is always something more to get - it is okay
to indulge yourself and give into your natural cravings.
This information is not intended as an offer to sell, or the solicitation of an offer to buy, a franchise. It is for information purposes only. Currently, the following states regulate the offer and sale of franchises: CA, HI, IL,
IN, MD, MI, MN, NY, ND, OR, RI, SD, VA, WA and WI. If you are a resident of one of these states, we will not offer you a franchise unless and until we have complied with applicable pre-sale registration and disclosure
requirements in your state. In addition, in NY an offering can only be made by a prospectus filed first with the Department of Law of the State of New York. Such filing does not constitute approval by the Department of Law.
© 2011 BP West Coast Products LLC All Rights Reserved. © 2011 BP Products North America Inc. All Rights Reserved.
October 2011 Franchise Times 5 n
Top 200 Franchise Chains by Worldwide Sales
Worldwide
Sales ($M)
Domestic
Units
Intl
Units
Total
Units
Percent
Franchised
Sales
Growth %
Unit
Growth %
Realogy Corporation
3,973*
2,693
740
3,433
81%
-0.7%
-2.9%
H&R Block Tax Services
H&R Block, Inc.
3,874*
11,506
1,643
13,149
45%
-11.9%
-9.3%
28
Sonic, America’s Drive-In
Sonic Corp.
3,620
3,572
0
3,572
87%
-6.5%
0.8%
29
Chick-fil-A
Chick-fil-A, Inc.
3,582
1,540
0
1,540
100%
11.4%
4.1%
30
Courtyard
Marriott International, Inc.
3,500*
795
97
892
63%
6.1%
4.0%
31
ampm
BP
3,415
1,225
1,592
2,817
100%
-1.9%
1.1%
32
Comfort Inn
& Comfort Suites
Choice Hotels International
3,350*
2,058
563
2,621
100%
11.0%
0.7%
33
Panera Bread
Panera Bread Co.
3,123
1,450
3
1,453
54%
11.8%
5.3%
34
Arby’s
Roark Capital
3,000*
3,523
126
3,649
69%
-6.3%
-1.9%
35
Jack in the Box
Jack in the Box, Inc.
2,935
2,206
0
2,206
57%
-5.3%
-1.0%
36
Prudential Real Estate
Prudential Financial
2,878*
1,600
76
1,676
100%
4.4%
-1.4%
37
T.G.I. Friday’s
Carlson Restaurants
Worldwide, Inc.
2,800*
560
346
906
59%
0.2%
-1.5%
38
Dairy Queen
International
Dairy Queen, Inc.
2,750
4,514
1,384
5,898
100%
10.0%
1.9%
39
Radisson Hotels
Carlson Hotels Worldwide
2,700*
125
298
423
93%
8.4%
-1.4%
40
IHOP Restaurants
DineEquity, Inc
2,600
1,476
28
1,504
99%
4.0%
6.1%
41
InterContinental
Hotels & Resorts
InterContinental
Hotels Group (IHG)
2,500*
56
115
171
96%
24.4%
3.0%
42
Crowne Plaza
Hotels & Resorts
InterContinental
Hotels Group
2,400*
169
219
388
100%
0.0%
6.0%
43
Papa John’s
Papa John’s
International, Inc.
2,389
2,871
775
3,646
83%
3.0%
5.1%
Rank
Franchise Concept
Parent Company
26
Coldwell Banker Real Estate
27
Worldwide sales are in millions. * Franchise Times Estimate
Baskin Robbins
Contacts: Pamela Gore, Franchisee
Recruitment Manager
#62
TOP 200
Phone: 781-737-3432
E-Mail: [email protected]
Web site: www.baskinrobbins.com/franchising
Named the top ice cream and frozen dessert franchise in the United States by
Entrepreneur magazine’s 31st annual Franchise 500® ranking, Baskin-Robbins is
the world’s largest chain of ice cream specialty shops. Baskin-Robbins creates and
markets innovative, premium ice cream, specialty frozen desserts and beverages,
providing quality and value to consumers at more than 6,000 retail shops in
33 countries. Baskin-Robbins is part of the Dunkin’ Brands, Inc. family of
companies.
#93
TOP 200
Big O Tires
Contacts: Rodger Anderson
Tom Fihe
E-Mail: [email protected]
Web site: www.bigotires.com
Retail Tire Dealerships with Automotive Repair. When you become a franchisee,
you join a network with a highly-recognized brand and gain a powerful set of
marketing tools to make sure your business is driving at the front of the pack.
October 2011 Franchise Times 7 n
Top 200 Franchise Chains by Worldwide Sales
Worldwide
Sales ($M)
Domestic
Units
Intl
Units
Total
Units
Percent
Franchised
Sales
Growth %
Unit
Growth %
Keller Williams Realty
2,356*
687
14
701
100%
-1.7%
0.4%
Residence Inn
Marriott International, Inc.
2,300*
595
18
613
78%
9.5%
0.8%
46
Westin
Starwood Hotels
& Resorts Worldwide, Inc.
2,300*
117
62
179
41%
-11.5%
5.3%
47
Denny’s
Denny’s, Inc.
2,272
1,571
87
1,658
86%
2.0%
6.9%
48
Spherion Staffing
Spherion Corporation
2,176
534
25
559
27%
20.8%
-1.8%
49
GNC
GNC Holdings
2,050*
3,651
1,606
5,257
45%
-2.4%
4.1%
50
Renaissance
Marriott International, Inc.
2,000*
78
68
146
40%
5.3%
3.5%
51
Hardee’s
CKE Restaurants, Inc.
1,958*
1,692
207
1,899
75%
3.0%
-0.1%
52
Express Employment
Professionals
Express Services, Inc.
1,900
508
45
553
100%
86.3%
-1.4%
53
Aaron’s
Aaron’s, Inc.
1,877
1,770
44
1,814
37%
8.1%
9.1%
54
Popeyes Louisiana Kitchen
AFC Enterprises, Inc.
1,863
1,580
397
1,977
98%
5.0%
1.7%
55
Little Caesar’s
Little Caesar Enterprises, Inc.
1,800*
3,213
0
3,213
84%
0.0%
8.6%
56
CENTURY 21 Real Estate
Realogy Corporation
1,800*
3,000
5,000
8,000
100%
-14.3%
3.9%
57
Hilton Garden Inn
Hilton Hotels Corporation
1,800*
480
39
519
96%
-1.6%
5.5%
58
ServiceMaster Clean
The ServiceMaster Company
1,791*
3,021
1,804
4,825
100%
-1.6%
4.8%
59
Embassy Suites Hotels
Hilton Hotels Corporation
1,750*
201
9
210
66%
9.4%
3.4%
60
Buffalo Wild Wings
Grill & Bar
Buffalo Wild Wings, Inc.
1,703
732
0
732
65%
15.0%
12.3%
61
Snap-On Tools
Snap-On Incorporated
1,666
3,464
1,350
4,814
95%
17.8%
0.3%
62
Baskin-Robbins
Dunkin Brands, Inc.
1,653
2,547
3,886
6,433
96%
10.6%
3.6%
Rank
Franchise Concept
Parent Company
44
Keller Williams Realty
45
Worldwide sales are in millions. * Franchise Times Estimate
Boston Pizza
Restaurants
#83
TOP 200
Contacts: Franchise Development
Coordinator
Phone: 866-277-8721
E-Mail: [email protected]
Web site: www.bostons.com
Boston Pizza Restaurants is the franchisor of Boston’s The Gourmet Pizza, a casual
dining restaurant concept with a full service sports bar. BP has been in business
for over 40 years with over 380 locations across North America. Our menu has a
strong pizza and pasta focus as well as favorites in categories such as appetizers,
sandwiches, salads and desserts. We are seeking
qualified developers to franchise units in territories
all across the United States.
n 8 Franchise Times October 2011
October 2011 Franchise Times 9 n
Top 200 Franchise Chains by Worldwide Sales
Worldwide
Sales ($M)
Domestic
Units
Intl
Units
Total
Units
Percent
Franchised
Sales
Growth %
Unit
Growth %
Golden Corral Corp.
1,640
485
0
485
80%
5.4%
0.6%
Quality Inn and Suites
Choice Hotels International
1,600*
1,012
377
1,389
100%
5.8%
2.6%
65
DoubleTree by Hilton
Hilton Hotels Corporation
1,600*
217
40
257
79%
23.1%
13.2%
66
Ramada
Wyndham Worldwide
Corporation
1,575*
525
371
896
100%
3.6%
-1.5%
67
Ruby Tuesday
Ruby Tuesday, Inc.
1,557
821
58
879
25%
0.0%
-2.4%
68
Days Inn
Wyndham Worldwide
Corporation
1,500*
1,678
199
1,877
100%
-1.7%
1.0%
69
Midas
Midas, Inc.
1,500*
1,379
935
2,314
96%
7.1%
-2.7%
70
Carl’s Jr.
CKE Restaurants, Inc.
1,497*
1,097
152
1,249
66%
-0.2%
1.3%
71
Super 8
Wyndham Worldwide
Corporation
1,475*
1,855
319
2,174
100%
10.7%
1.7%
72
La Quinta Inns & Suites
LQ Management, LLC
1,450*
805
3
808
54%
2.3%
5.9%
73
Jiffy Lube
Pennzoil Quaker State
1,429
1,948
45
1,993
100%
-1.0%
-1.6%
74
Whataburger
Whataburger
Restaurants, LP
1,226
717
0
717
24%
4.0%
2.1%
75
Quiznos Sub
The Quiznos Master, LLC
1,200*
2,772
641
3,413
100%
-25.0%
-21.3%
76
Red Robin
Red Robin Gourmet Burgers
1,175
432
18
450
30%
-2.1%
2.5%
77
Church’s Chicken
Friedman Fleischer & Lowe
1,170
1,251
461
1,712
84%
3.5%
1.5%
78
Fairfield Inn
Marriott International, Inc.
1,150*
648
10
658
100%
4.5%
4.6%
79
SERVPRO
Servpro Industries, Inc.
1,121
1,571
0
1,571
100%
7.7%
3.3%
80
Disaster Kleenup
International
DKI Services Corporation
1,025
189
57
246
100%
-0.1%
4.2%
Rank
Franchise Concept
Parent Company
63
Golden Corral Buffet & Grill
64
Worldwide sales are in millions. * Franchise Times Estimate
Denny’s
Contacts: Franchise Development
Phone: 800-304-0222
#47
TOP 200
E-Mail: [email protected]
Web site: www.dennysfranchising.com
For over 50 years, Denny’s has been the trusted leader in family dining. We
enjoy a brand awareness of almost 100%! We cheerfully serve over 26 million
guests a month in our more than 1,600 restaurants worldwide. We are proud to
serve America’s most-loved foods 24 hours a day, 7 days a week. If you are an
experienced restaurateur with a desire to build new restaurants, we invite you to
contact us and learn more about growth opportunities within our great brand!
n 10 Franchise Times October 2011
Dunkin’ Donuts
Contacts: Pam Gore/Franchising
Phone: 781-737-3432
#17
TOP 200
E-Mail: [email protected]
Web site: www.dunkinfranchising.com
Founded in 1950, Dunkin’ Donuts is America’s favorite all-day, everyday stop for
coffee and baked goods. Dunkin’ Donuts is a market leader in the regular/decaf
coffee, iced coffee, hot flavored coffee, donut, bagel and muffin categories. Dunkin’
Donuts has earned the No. 1 ranking for customer loyalty in the coffee category by
Brand Keys for five years running. The company has more than 9,700 restaurants
in 31 countries worldwide. In 2010, Dunkin’ Donuts’ global system- wide sales
were $6 billion. Based in Canton, Mass., Dunkin’ Donuts is a subsidiary of
Dunkin’ Brands Group, Inc. (NASDAQ: DNKN). For more information, visit
www.dunkinfranchising.com.
Top 200 Franchise Chains by Worldwide Sales
Worldwide
Sales ($M)
Domestic
Units
Intl
Units
Total
Units
Percent
Franchised
Sales
Growth %
Unit
Growth %
1,000
4,956
3,076
8,032
100%
-4.1%
-8.3%
Hooters of America
959
388
67
455
74%
-3.3%
0.7%
Boston’s
The Gourmet Pizza
Boston Pizza
953
49
340
389
99%
0.1%
0.2%
84
Motel 6
Accor North America
900*
1,010
18
1,028
41%
2.8%
3.0%
85
Homewood Suites by Hilton
Hilton Hotels Corporation
850*
296
11
307
86%
4.8%
7.7%
86
Great Clips
Great Clips, Inc.
820
2,846
67
2,913
100%
7.6%
4.2%
87
The UPS Store/
Mail Boxes Etc.
MBE
815*
4,382
353
4,735
100%
-3.0%
-0.8%
88
Perkins Restaurant & Bakery
Perkins & Marie
Callendar’s, LLC
810*
457
17
474
66%
0.0%
-4.0%
89
Krispy Kreme
Krispy Kreme Doughnuts, Inc
808
229
417
646
87%
11.1%
11.0%
90
Zaxby’s
Zaxby’s Franchising, Inc.
779
514
0
514
100%
8.5%
4.5%
91
Steak N Shake
Biglari Holdings, Inc.
770
483
0
483
15%
7.3%
-1.4%
92
Springhill Suites
Marriott International, Inc.
750*
273
1
274
88%
12.6%
7.0%
93
Big O Tires
TBC Corporation
747
456
0
456
86%
4.6%
-4.8%
94
Sotheby’s International
Realty Affiliates
Realogy Corporation
740*
352
210
562
94%
31.2%
11.1%
95
J.D. Byrider
J.D. Byrider Systems, Inc
740
132
0
132
89%
38.8%
3.9%
96
Jimmy John’s
Jimmy John’s
725*
1,131
0
1,131
98%
20.4%
16.6%
97
Five Guys
Five Guys Enterprises, LLC
721
736
7
743
86%
44.5%
35.6%
98
Bojangles’ Restaurants
Bojangles’ Restaurants, Inc.
713
484
2
486
62%
8.1%
5.9%
Rank
Franchise Concept
Parent Company
81
Curves
Curves International, Inc.
82
Hooters Restaurants
83
Worldwide sales are in millions. * Franchise Times Estimate
Einstein Bros.
Bagels
#149
TOP 200
Contacts: Kevin Kruse
Phone: 609-737-7266
E-Mail: [email protected]
Web site: www.einsteinbros.com/franchising
Einstein Bros. Bagels is the world’s largest bagel based restaurant brand and ready
for you to join us as a multi-unit franchisee. Your franchise benefits include:
attractive sales to investment ratio; “asset light” investment; flexible site layouts; a
leader in the fast casual and breakfast segment; extensive brand recognition based
on 16 years of operation; no fryers (and no grease!); and we close at 5PM creating
quality of life for management, staff and franchisee!
Fazoli’s
Contacts: Franchising Department
Phone: 859-825-6333
#211
TOP 200
E-Mail: [email protected]
Web site: www.fazolis.com
Fazoli’s is the leading operator and franchisor of Fast, Fresh, and Premium Italian
Quick-Service Restaurants. We are the largest QSR/Fast Casual restaurant chain
in the U.S. with 23 years in business and over 225 locations in 23 states. The
Franchisor operates over 125 locations throughout the U.S. Fazoli’s appeals
to the busy, value-conscious consumer with our dine-in, carry-out, drivethru, and catering while focusing on high quality and innovative pasta dishes,
salads, and oven-baked sandwiches, with our all new premium QSR design and
enhanced service style. The brand is growing with
flexible footprints to include; conversions, in-line &
nontraditional locations. With no real competition
and high consumer demand the time is now to learn
more about the Fazoli’s Franchise Opportunity.
October 2011 Franchise Times 11 n
Top 200 Franchise Chains by Worldwide Sales
Rank
Franchise Concept
Parent Company
Worldwide
Sales ($M)
Domestic
Units
Intl
Units
Total
Units
Percent
Franchised
Sales
Growth %
Unit
Growth %
99
Interim HealthCare
Interim HeathCare
710
321
0
321
100%
0.0%
0.6%
100
Long John Silver’s Restaurants
Yum! Brands, Inc.
700
964
31
995
100%
0.0%
-2.8%
101
Country Inn & Suites
Carlson Hotels Worldwide
700*
458
30
488
98%
16.7%
-1.6%
102
Home Instead Senior Care
Home Instead, Inc.
698
594
305
899
100%
0.0%
0.9%
103
Culver’s Frozen Custard
& Butterburgers
Culver Franchising
System, Inc.
689
424
0
424
98%
5.0%
2.7%
104
Roto-Rooter
Chemed Corporation
680
530
33
563
81%
1.5%
-1.7%
105
Checkers/Rally’s
Checkers Drive-In
Restaurants, Inc.
653
793
5
798
63%
-1.5%
-1.8%
106
Papa Murphy’s
Take ‘N’ Bake
Papa Murphy’s
International, Inc.
653
1,241
16
1,257
97%
3.6%
6.1%
107
Massage Envy
Massage Envy
Franchising, LLC
652
656
0
656
100%
33.1%
8.3%
108
Four Points Sheraton
Starwood Hotels
& Resorts Worldwide Inc.
650*
106
53
159
81%
20.1%
3.9%
109
SuperCuts
Regis Corporation
648
2,072
220
2,292
44%
2.3%
-0.7%
110
Jani-King
Jani-King International, Inc.
647
9,245
2,209
11,454
100%
0.0%
-0.7%
Worldwide sales are in millions. * Franchise Times Estimate
Own the Hottest Brand in the Country!
“Deciding to franchise with East Coast Wings & Grill was one of the best decisions I have ever made.
The corporate support to make every ECW a success is what amazes me. The time, energy and
money spent to drive top and bottom line to the highest level makes ECW a rare find. It starts at the
beginning with help through every stage, with helping with location to training, so you are prepared
and then with marketing help getting guests in your restaurant. I could not be happier with what I
have seen from the ECW family.”
Seth Lucas, Area Development Representative
*This advertisement is not an offering of a franchise. An offering can be made only by prospectus. We only sell franchisees in states where our offering is registered..
Figures reflect averages for lowest and highest sales and EBITDA as submitted by our full service franchised restaurants operating in 2010 as published in item 19
of our April 2011 Franchise Disclosure Document. Same store sales growth figures are from 1/1/94 through 9/30/11 as reported by franchisees. Individual financial
performance will vary.
©2011 East Coast Wings Corporation. All rights reserved.
Top 200 Ad.indd 1
LG-SSS 082011
• 31 Consecutive Same Store Sales
Growth Quarters*
• $1,275,058 Average NET Sales*
• $264,805 Average EBITDA*
• Ratio of average investment to first
year gross sale 1:3*
• Single & Multi-Unit Territories Available
For Franchise Information, Contact
Lee S. Easley 1.800.381.3802
www.eastcoastwings.com
PM n
October 2011 Franchise9/15/11
Times2:05 13
Top 200 Franchise Chains by Worldwide Sales
Worldwide
Sales ($M)
Domestic
Units
Intl
Units
Total
Units
Percent
Franchised
Sales
Growth %
Unit
Growth %
Realogy Corporation
641*
695
1,852
2,547
100%
18.0%
-3.2%
Friendly’s Ice Cream
Friendly Ice Cream
Corporation
634
496
0
496
39%
1.4%
-0.2%
113
Wyndham Hotels & Resorts
Wyndham Worldwide
Corporation
625*
66
35
101
100%
16.0%
7.4%
114
Jenny Craig
Nestle Holdings, Inc.
600*
575
162
737
31%
3.4%
3.1%
115
Del Taco
Del Taco Holdings, Inc.
579
522
0
522
45%
1.9%
0.8%
116
Clarion Hotels
Choice Hotels International
575*
192
128
320
100%
16.9%
8.1%
117
CARSTAR
CARSTAR, Inc.
565
250
137
387
100%
-5.0%
-3.5%
118
El Pollo Loco
Trimaran Pollo Partners, LLC
557
412
0
412
58%
-4.3%
-0.7%
119
Pet Supplies “Plus”
PSP Franchising, LLC
549
245
0
245
62%
4.7%
3.4%
120
CiCi’s Pizza
CiCi Enterprises, LP
545
597
0
597
98%
-3.3%
-4.5%
121
Ruth’s Chris Steak House
Ruth’s Hospitality Group,
Inc.
540*
117
14
131
51%
0.0%
0.8%
122
Jackson Hewitt Tax Service
Jackson Hewitt
Tax Service Inc.
527
6,407
0
6,407
85%
-19.0%
0.0%
123
Planet Fitness
PFIP, LLC
521
388
0
388
95%
3.9%
29.3%
124
Paul Davis Restoration
Paul Davis Restoration, Inc.
514
250
0
250
100%
9.2%
5.9%
125
G.J.Gardner Homes
Netdeen Pty, Ltd
503
18
87
105
100%
48.1%
5.9%
126
Jason’s Deli
Deli Management, Inc
503
221
0
221
43%
5.7%
2.8%
127
Staybridge Suites
InterContinental
Hotels Group
500*
173
15
188
99%
10.9%
3.3%
128
Linc Network
The Linc Group, LLC
493
132
17
149
85%
5.9%
0.7%
Rank
Franchise Concept
Parent Company
111
ERA Real Estate
112
Worldwide sales are in millions. * Franchise Times Estimate
#198
contact:
Greg Delks
phone:
877.887.8330
email:
Franchising@
FirehouseSubs.com
website:
FirehouseSubs.com
Spreading
Like Wildfire
Taste any Firehouse sub, and you’ll
understand why we’re ranked #1 on
FastCasual.com’s Top 100 Movers
and Shakers. We steam our meats
and cheeses, enhancing their flavors
like nothing else, then pile ‘em high,
along with crisp, fresh veggies,
on our toasted private recipe sub rolls.
As a result, Firehouse Subs is one of
the fastest growing chains in the nation.
If that kind of success sounds tasty
to you, talk to us. Together, we strive
to make the Firehouse Subs brand
better every day – and are always on
he lookout for franchisees who share
our brand’s enthusiasm and spirit.
n 14 Franchise Times October 2011
Top 200 Franchise Chains by Worldwide Sales
Worldwide
Sales ($M)
Domestic
Units
Intl
Units
Total
Units
Percent
Franchised
Sales
Growth %
Unit
Growth %
Kahala
493
1,122
333
1,455
98%
-1.1%
4.5%
Howard Johnson
Wyndham Worldwide
Corporation
485*
331
143
474
100%
9.9%
-3.7%
131
Econo Lodge
Choice Hotels International
475*
784
64
848
100%
7.7%
0..2%
132
Qdoba Mexican Grill
Jack in the Box, Inc.
475*
542
0
542
64%
5.6%
6.9%
133
Famous Dave’s
Famous Dave’s
of America, Inc.
472
182
0
182
71%
-1.1%
2.8%
134
Meineke Car Care Centers
Driven Brands, Inc.
465*
877
72
949
99%
6.1%
2.3%
135
Sizzler
Pacific Equity Partners
464
176
85
261
79%
-4.4%
-4.4%
136
Captain D’s Seafood Kitchen
Sagittarius Restaurants, LLC
450
538
4
542
47%
-2.8%
0.7%
137
Candlewood Suites
InterContinental
Hotels Group
450*
287
1
288
100%
12.2%
13.4%
138
Krystal Company
The Krystal Company
440
364
0
364
40%
1.1%
-5.5%
139
Minuteman Press
Minuteman Press Intl.
425
714
213
927
100%
6.3%
-2.3%
140
SIGNARAMA
United Franchise Group
422
519
357
876
100%
-20.1%
-4.6%
141
MAACO Collision Repair
& Auto Painting
Driven Brands, Inc.
419*
437
30
467
100%
1.0%
-2.5%
142
Goddard School (The)
Goddard Systems, Inc.
417
371
0
371
100%
12.7%
3.9%
143
Fantastic Sams Hair Salons
Fantastic Sams
International Corporation
415
1,249
0
1,249
99%
1.1%
-3.0%
144
Sylvan Learning Centers
Educate, Inc.
415*
934
20
954
91%
0.0%
-8.0%
145
Stanley Steemer
Carpet Cleaner
Stanley Steemer Int’l.
406*
295
0
295
76%
-6.9%
-1.7%
146
Coffee Bean & Tea Leaf (The)
International Coffee
& Tea, LLC
404*
290
489
779
65%
-19.2%
-8.4%
Rank
Franchise Concept
Parent Company
129
Cold Stone Creamery
130
Worldwide sales are in millions. * Franchise Times Estimate
#95
TOP 200
J.D. Byrider
Contacts: Mike Pearce
Phone: 800-947-4532
E-Mail: [email protected]
Web site: www.jdbyrider.com
J.D. Byrider is the largest used car/dealer carried finance company in the U.S.
and has defined the industry over the past 20 years. This is the only franchise
opportunity in America where you have the opportunity to become the bank.
The J.D Byrider brand is a vertically integrated business model that integrates an
automobile sales lot and the customer financing necessary. You enjoy a maximized
profit potential by providing all services.
October 2011 Franchise Times 15 n
EXCITING BUSINESS
OPPORTUNITY
Papa John’s is seeking self-motivated individuals
to join our high-quality team. Sign up now to develop
a Papa John’s and take advantage of
enhanced incentives* including:
• NO FRANCHISE FEE
• ROYALTY REdUCTION
(Additional Incentives Available, Please Call For details)
We’re On Fire
Join the brand ranked #1
on FastCasual.com’s 2011
Top 100 Movers and Shakers.
*All benefits, discounts and payments subject to
Papa John’s U.S. Development Incentive Program.
“Papa John”, Founder
877.887.8330 or
Visit FirehouseSubs.com
and click “Franchise”
for more information
© 2011 PJI, Inc. 139139 V4
Certain restrictions apply. For more information
and program details, call 502.261.4844 or visit our website: www.PapaJohns.com.
Fastest Growing
Pizza Company
Over 1300 * new stores signed, more
than any other pizza company.
Fast indeed, Marco’s has opened a remarkable 95
stores in the last two years. Today, over 300 stores in
22 states are open and serving Marco’s authentic
Italian pizza. Better pizza makes a better business.
See marcos.com or call us:
800-262-7267
Find out more
by scanning this
QR code.
*Based on number of stores opened and contracted for development
in United States from 2007 to date.
©2011 Marco’s Franchising, LLC 8269-1011
Top 200 Franchise Chains by Worldwide Sales
Worldwide
Sales ($M)
Domestic
Units
Intl
Units
Total
Units
Percent
Franchised
Sales
Growth %
Unit
Growth %
Jamba Juice Company
400
742
1
743
53%
-1.3%
0.5%
Sleep Inn & Suites
Choice Hotels International
400*
398
10
408
100%
4.4%
1.5%
149
Einstein Bros. Bagels
Einstein Noah
Restaurant Group, Inc.
399
591
0
591
39%
6.7%
11.1%
150
Edible Arrangements
Edible Brands, Inc.
385
841
72
913
100%
17.3%
7.8%
151
Wireless Zone
Automotive Technologies Inc.
385
465
0
465
98%
20.3%
11.0%
152
Valpak Direct Marketing
Cox Target Media, Inc.
382
172
8
180
99%
-0.1%
0.0%
153
Real Living Real Estate
Brookfield
Residential Properties
375*
425
13
438
100%
71.2%
27.0%
154
Travelodge
Wyndham Worldwide
Corporation
375*
343
93
436
100%
12.2%
-5.2%
155
Towneplace Suites
Marriott International, Inc.
375*
192
1
193
82%
11.8%
4.9%
156
Round Table Pizza
Round Table Pizza, Inc.
371*
466
7
473
73%
-6.0%
-4.3%
157
Slumberland Furniture
Slumberland Inc.
370
117
0
117
68%
6.3%
0.0%
158
Sir Speedy Printing
& Marketing Services
Franchise Services, Inc.
368
276
105
381
99%
3.1%
-5.7%
159
Auntie Anne’s Pretzels
FOCUS Brands
359
875
251
1,126
99%
0.6%
5.8%
160
Proforma
Proforma
359
700
50
750
100%
15.0%
7.1%
161
McAlister’s Deli
McAlister’s Corporation
357
303
0
303
88%
1.8%
3.1%
162
Uno Chicago Grill
Centre Partners Mgt, LLÇ
351*
151
10
161
43%
-20.2%
-12.5%
163
Moe’s Southwest Grill
FOCUS Brands
347
418
1
419
99%
7.4%
2.4%
164
Wingstop
Wingstop Restaurants, Inc.
344
470
6
476
95%
12.2%
6.0%
Rank
Franchise Concept
Parent Company
147
Jamba Juice
148
Worldwide sales are in millions. * Franchise Times Estimate
Jimmy John’s
Contacts: Bob Morena
Phone: 800-546-6904
#96
TOP 200
E-Mail: [email protected]
Web site: www.jimmyjohns.com
Jimmy John’s Gourmet Sandwiches is known for its obsession with freaky fast
execution and sandwich delivery!
Bread is baked fresh throughout each day, meats and veggies are sliced daily
and everything is delivered freaky fast!
Since 19-year-old Jimmy John Liautaud opened his first sandwich shop in
Charleston, IL in 1983, it has grown to over 1,200 locations in 41 states
throughout the U.S. For more information, visit jimmyjohns.com.
n 18 Franchise Times October 2011
Marco’s Pizza
Contacts: Cameron Cummins
Phone: 800-262-7267
#261
TOP 200
E-Mail: [email protected]
Web site: www.marcosfranchising.com
Founded in 1978, Marco’s Pizza is “The Fastest Growing Pizza Company is the
US.” With 1200 stores under contract and 250+ stores open in 20 states and
two countries. With 30+ years as a successful pizza concept, the FRESHEST
Ah!thentic Italian Pizza on the market, FRESH dough made daily, blend of three
cheeses, FRESH, NEVER FROZEN and sauce from a century old Italian family
recipe.
Top 200 Franchise Chains by Worldwide Sales
Worldwide
Sales ($M)
Domestic
Units
Intl
Units
Total
Units
Percent
Franchised
Sales
Growth %
Unit
Growth %
Campero USA Corp.
340
50
294
344
24%
-28.7%
6.8%
Sbarro the Italian Eatery
Sbarro, Inc.
330
689
360
1,049
53%
-2.7%
-0.7%
167
Comfort Keepers
CK Franchising, Inc.
323
628
54
682
100%
3.2%
7.4%
168
Coverall Health-Based
Cleaning System
CNA Holding Corporation
321
8,521
895
9,416
100%
-3.0%
-0.4%
169
Chester’s Restaurant
Chester’s International
317
1,504
235
1,739
100%
-2.5%
-2.5%
170
Batteries Plus
Batteries Plus, LLC
313
453
0
453
94%
16.2%
18.0%
171
Primrose Schools
Primrose Schools
Franchising Company
311
221
0
221
100%
8.8%
4.7%
172
Johnny Rockets
Redzone Capital Fund II
300
237
58
295
91%
0.0%
0.7%
173
A & W Family Restaurants
YUM! Brands
300
322
317
639
100%
0.0%
0.3%
174
Taco John’s
Taco John’s Int’l. Inc.
296
427
0
427
98%
2.7%
2.6%
175
Travel Leaders
Travel Leaders Group
294*
379
0
379
93%
-4.2%
-7.8%
176
Liberty Tax Service
JTH Tax, Inc.
292*
3,605
253
3,858
99%
20.3%
12.4%
177
Results! Travel
Travel Leaders Group
285*
677
0
677
100%
3.8%
-10.4%
178
Anytime Fitness
Anytime Fitness, Inc.
284
1,504
60
1,564
99%
15.1%
25.6%
179
Matco Tools
Danaher Corporation
281
1,423
45
1,468
100%
6.6%
-2.0%
180
Fastsigns
Roark Capital
281
452
82
534
100%
3.4%
0.8%
181
Fuddruckers
Luby’s Fuddruckers
Restaurants, LLC
270*
185
4
189
70%
-14.0%
-16.0%
182
Unishippers
Unishippers Global
Logistics, LLC
269
316
0
316
90%
17.0%
7.8%
Rank
Franchise Concept
Parent Company
165
Pollo Campero
166
Worldwide sales are in millions. * Franchise Times Estimate
Massage Envy
Contacts: Lori Merrall
Phone: 480-366-4171
#107
TOP 200
E-Mail: [email protected]
Web site: www.massageenvyfranchise.com
Massage Envy Franchising, LLC is a national chain of massage therapy spas
dedicated to providing professional and affordable therapeutic massage and facial
services to consumers with busy lifestyles at convenient times and locations.
Founded in 2002, Massage Envy has opened over 700 clinics in 44 states, with
more franchises currently under development from coast to coast. Their corporate
office is located in Scottsdale, Arizona. For more information visit
www.massageenvyfranchise.com.
Papa Murphy’s
Take ‘N’ Bake Pizza
#106
TOP 200
Contacts: Franchise Sales Dept
Phone: 800-257-7272
E-Mail: [email protected]
Web site: www.papamurphys.com
Papa Murphy’s is the largest Take ‘N’ Bake Pizza chain in the U.S. with over 1,270
stores in 37 states. Since 1982 we’ve offered a great value and a superior pizza to
our customers and a simple focused concept for our franchisees. Papa Murphy’s
limited hours of operation and the take-n-bake concept without the hassles of
dining or delivery, provide a great franchise opportunity.
October 2011 Franchise Times 19 n
Top 200 Franchise Chains by Worldwide Sales
Worldwide
Sales ($M)
Domestic
Units
Intl
Units
Total
Units
Percent
Franchised
Sales
Growth %
Unit
Growth %
Tuffy Associates Corp.
268
389
0
389
92%
1.6%
-4.4%
AlphaGraphics
Pindar
263
235
37
272
100%
8.6%
1.5%
185
Noodles & Company
Noodles & Company, Inc.
260
255
0
255
17%
13.9%
11.4%
186
Houlihan’s
Houlihan’s Restaurants, Inc.
256
89
0
89
61%
0.1%
-9.2%
187
Schlotzsky’s
FOCUS Brands Inc
250
334
17
351
92%
1.1%
-2.8%
188
Wingate by Wyndham
Wyndham Worldwide
Corporation
250*
161
4
165
100%
0.9%
-0.6%
189
Mr. Rooter
The Dwyer Group
248
263
122
385
100%
-2.3%
0.0%
190
Corner Bakery Café
Il Fornaio (America)
Corporation
247
118
0
118
15%
5.1%
2.6%
191
Plato’s Closet
Winmark Corporation
241
298
4
302
100%
17.0%
13.1%
192
Sonny’s Real Pit Bar-B-Q
Sonny’s Franchise Company
238
128
0
128
92%
0.0%
-0.8%
193
Snap Fitness
Snap Fitness, Inc.
237
1,054
131
1,185
98%
19.1%
6.9%
194
Play It Again Sports
Winmark Corporation
236
290
37
327
100%
6.3%
-4.1%
195
Budget Blinds
Home Franchise Concepts
235
707
84
791
100%
14.6%
-2.5%
196
Microtel Inns & Suites
Wyndham Worldwide
Corporation
235*
300
16
316
100%
3.5%
0.6%
197
Old Chicago Pasta & Pizza
CraftWorks Restaurants
and Breweries Group
233*
101
0
101
38%
-23.3%
1.0%
198
Firehouse Subs
Firehouse of America
233
403
0
403
93%
3.3%
8.9%
199
Charley’s Grilled Subs
Gosh Enterprises, Inc.
232
372
50
422
94%
7.8%
10.5%
200
Allegra Network
Allegra Network LLC
231
288
24
312
100%
-0.8%
-10.9%
Rank
Franchise Concept
Parent Company
183
Tuffy/Car-X
184
Worldwide sales are in millions. * Franchise Times Estimate
Taco John’s
International
#174
TOP 200
Contacts: Brett Miller
Phone: 800-854-0819
E-Mail: [email protected]
Web site: www.TacoJohns.com
Taco John’s isn’t just about food—it’s about family. Our customers are fans for life
because we deliver delicious food with a homegrown attitude. And even though
we’ve grown from one restaurant in Cheyenne, Wyoming to more than 400
locations across the country, those basics still drive us every day. At Taco John’s,
we have an honest, open and family-centered approach to franchising. We have
been serving fantastic Mexican food and franchise opportunities since 1969.
n 20 Franchise Times October 2011
T.G.I. Friday’s
Contacts: Robert Fix
Phone: 972-662-4611
#37
TOP 200
E-Mail: [email protected]
Web site: www.tgifridays.com
In 1965 T.G.I. Friday’s opened its doors in New York City and quickly became
known as THE PLACE where people could gather, put down the issues of the
day and enjoy being with friends and family in an energetic and fun environment.
No matter when they came, every visit felt like Friday. Friday’s has since grown
to over 900 locations in 60 countries and is excited to announce that franchise
opportunities will again be available in selected markets in the United States. If
you think visiting a Friday’s is fun, imagine owning one! After all, “In Here, It’s
Always Friday!”
Top 200 Methodology
Top 200 XX
How the Top 200 Were Selected
The Franchise Times 200 is an annual ranking of the
200 largest franchise systems in the U.S. by worldwide
sales. We use the previous year’s sales data to compare
the companies. The numbers come from a combination
of companies’ voluntary reports and Franchise Times
estimates based on publicly available data.
To qualify, a company must be a legal, U.S. franchise. At
least 15 percent of the company’s total units must be
owned or operated by independent franchisees. The
company must also be based in the United States, or
have at least 15 percent of its total units located in the
U.S.
Systemwide sales is defined as the total sales—
worldwide—for both franchise and company units.
Those sales figures should represent sales to customers,
and not corporate sales to franchisees or prospective
franchisees—such as royalty revenue or franchise fees.
Other revenues not directly related to franchising are also
not included.
Franchise Times’ estimated revenues for hotels are based
on a formula multiplying reported RevPar numbers
(revenue per available room) by the number of rooms
and the number of days in the year. The estimate then
is reduced a certain percentage if the company opened
units during the year, and is increased if it had a net
reduction. RevPar comes either from companies’ own
reports or industry estimates.
Franchise Times’ estimates for real estate companies are
based on 2.5 percent of the companies’ reported sales
volume. Real estate companies report sales based on
total volume of homes sold. So a home sold for $200,000
would be listed as $200,000 in revenue. FT’s estimate
would count $5,000 in revenue earned as a commission
from the sale.
Estimates for travel agencies are based on 12.5 percent of
total sales volume.
For more information on the Franchise Times Top 200,
contact Jonathan Maze at [email protected].
If two companies have reported the same amount in
systemwide sales, the higher ranking is given to the
company with the most units.
Shakey’s
Contacts: Craig Hopkins
Phone: 888-444-6686
#298
TOP 200
E-Mail: [email protected]
Web site: www.shakeys.com
An American icon since 1954, Shakey’s has always prided itself on providing
premium products and excellent service in a family-centric environment. We are
proud to have second and third generation franchisees who are passionate about
the brand and new growth strategy. Exciting growth strategies, new franchise
markets, and a niche concept that no other pizza concept can offer, makes this an
ideal time to join Shakey’s.
Steak ‘n Shake
Contacts: Franchise Sales
Phone: 877-747-5329
#91
TOP 200
E-Mail: [email protected]
Web site: www.steaknshakefranchise.com
Steak ‘n Shake is the pioneer in the premium burger segment of the restaurant
industry. Our new Signature concept is a rapid, counter service model with
a smaller footprint and a more simplified operation. This is ideally suited for
shopping centers. We expect our growth to be the fastest in the premium burger
segment. Our handcrafted real steak steakburgers are made to order. Our delicious
milkshakes are hand-dipped using real milk along with other high quality
ingredients. Join an organization with a relentless pursuit of excellence in the
“better burger” segment.
October 2011 Franchise Times 21 n
BREWING
NEW OPPORTUNITIES
OKLAHOMA CITY · OMAHA
HOUSTON · DENVER
NEW
MARKETS
Dunkin’ Donuts’ development throughout the
Western and South Central markets is part of a steady
and strategic growth strategy, which includes
expansion into existing markets and entering into
new locations throughout the country.
Limited time special development incentives
are available for development in these markets.
COME GROW WITH US!
JUST RELEASED!
For more information, go to
www.DunkinFranchising.com
Minimum financial requirements for Single Unit Development Opportunities are $250K liquid assets and $500K net worth.
Single unit opportunities vary by market. ©2011. DD IP Holder LLC. All rights reserved. Dunkin’ Brands, Inc., 130 Royall St. Canton, MA 02021
I WISH I HAD THIS
WHEN I WAS A KID
MATT SANDOSKI
Franchise Owner, School of Rock Montclair, NJ
The award-winning musician and engineer wanted to get off the road and be full-time
with his wife and new baby. He saw the School of Rock kids shred at Austin City Limits.
He stood in awe and thought, “I wish I had this when I was a kid.” He knew it was the
business for him.
To learn more about this franchise opportunity,
visit SchoolofRock.com or call 877•556•6184.
INSPIRING KIDS TO ROCK ON STAGE AND IN LIFE.
The Next 100
The Next 100
Rank
Franchise Concept
Rank
Franchise Concept
Worldwide
Sales ($M)
Total
Units
Percent
Franchised
Worldwide
Sales ($M)
Total
Units
Percent
Franchised
219
Beef ‘O’ Brady’s
196
216
98%
201
Red Roof Inns
230*
342
41%
220
Two Men and a Truck
187
210
100%
202
Marie Callendar’s
230*
121
31%
221
Smoothie King
185
632
100%
203
Fox’s Pizza Den
226
278
100%
222
Rodeway Inn
185*
389
100%
204
Baymont Inn & Suites
225*
261
100%
223
Certa ProPainters
184
312
100%
205
The Melting Pot
225
142
96%
224
AmericInn
180
218
100%
206
El Chico Cafe
223
117
22%
225
CruiseOne
175
721
100%
207
Huddle House Restaurants
221
398
95%
226
Raising Cane’s
Chicken Fingers
175
96
23%
208
JAN-PRO
220
10,334
100%
227
Right At Home
172
226
100%
209
Molly Maid
219
610
100%
228
Villa Pizza/Villa
Fresh Italian Kitchen
168
308
45%
210
Labor Finders
217
194
89%
229
Once Upon A Child
168
241
100%
211
Fazoli’s Restaurants
213
224
43%
230
Petland
162
148
97%
212
PostNet
212
783
100%
231
Precision Tune Auto Care
161
343
94%
213
Bruegger’s Bagels
205
301
36%
232
ColorTyme
161
213
100%
214
Advance Realty USA
203*
38
97%
233
The Original Pancake House
160
117
99%
215
Sport Clips
200
774
97%
234
Blimpie Subs & Salads
160
848
100%
216
Cost Cutters
198
788
55%
235
Taco Time
159
372
100%
217
Rainbow International
Restoration & Cleaning
198
389
100%
236
U-Save Auto Rental
150
174
100%
218
Peter Piper Pizza
197
135
74%
237
Grease Monkey
149*
245
100%
Worldwide sales are in millions. * Franchise Times Estimate
Worldwide sales are in millions. * Franchise Times Estimate
We currently have 45 locations in six states, with signed
development agreements for over 400 locations in 25 states.
50% unit growth this year!
What’s New:
Larger Footprint, up to 5000 Sq Ft
Great Unit-level economics
Flexible layouts perfect for conversions
Compelling sales to investment ratio
Accolades:
#18 Future 50 awards Restaurant Business Magazine for 2011
One of Entrepreneur Magazine Top New Franchises for 2011
One of Franchise Times Magazine’s Fast 55 Growth Franchises for 2010
Franchise Update Magazine’s STAR Award winner for 2010
Prime territories still available!
For Franchising information contact:
Dan Collins, VP Franchise Development
[email protected] • www.hurricanefranchising.com
Or call 877-7MY-WING
“This information is not intended as an offer to sell, or the solicitation of an offer to buy a franchise. It is for information purposes only. Neither we nor any other person can guarantee the success of a franchisee’s restaurant, and we caution that a franchisee’s restaurant may lose money or fail.
Actual results vary from restaurant to restaurant and we cannot estimate the results of any particular franchisee. You are urged to consult with your financial, business and legal advisers to conduct your own analysis of the information contained in this information.”
n 24 Franchise Times October 2011
The Next 100
Rank
Franchise Concept
Worldwide
Sales ($M)
Total
Units
Percent
Franchised
Rank
Worldwide
Sales ($M)
Total
Units
Percent
Franchised
238
Express Oil Change
146
186
59%
269
Carvel Ice Cream
108*
449
97%
239
Granite Transformations
145
152
100%
270
Stockade Companies
106
60
98%
240
Kwik Kopy Printing
143
388
100%
271
Comet Cleaners
103
261
100%
241
Mazzio’s Italian Eatery
141
143
66%
272
Nathan’s Famous
102
285
98%
242
Kilwins Chocolates
139
82
98%
273
Interstate All Battery Center
100
195
91%
243
Gatti’s Pizza & GattiTown
138
125
84%
274
Coit
100
46
78%
244
The Cleaning Authority
137
176
99%
275
Senior Helpers
98
294
100%
245
Pizza Inn
134
299
98%
276
Jazzercise
96
7,643
100%
246
CleanNet USA
129
4,666
100%
277
Truly Nolen Pest Control
93
225
67%
247
HobbyTown USA
128
160
100%
278
90
163
96%
248
PIP Printing & Document
Services
SpeeDee Oil
Change & Tune Up
127
117
100%
279
Vanguard Cleaning Systems
88
2,152
100%
249
Knights Inn
125*
336
100%
280
EmbroidMe
81
415
100%
250
Pak Mail
125
425
100%
281
Christian Brothers
Automotive
80
78
94%
251
Pizza Ranch
125
154
99%
282
Link Staffing Services
79
55
82%
252
Penn Station East Coast Subs
124
227
99%
283
bd’s Mongolian Grill
76
34
56%
253
Steamatic
124
357
100%
284
Smashburger
75*
93
56%
254
PostalAnnex+
123
311
100%
285
Relax the Back
75
103
100%
255
First Choice Hair Cutters
122
451
42%
286
Fatburger
73
98
70%
256
Glass Doctor
121
199
100%
287
Cheeburger! Cheeburger!
72
66
98%
257
The Maids
120
1,117
98%
288
Aire Serv
71
191
100%
258
Hawthorn Suites
by Wyndham
120*
76
100%
289
Genghis Grill The Mongolian Stir Fry
70
58
55%
259
Wild Birds Unlimited
118
272
100%
290
Foot Solutions
70
199
99%
260
Cinnabon
117
864
100%
291
Pop-A-Lock
70
242
100%
261
Marco’s Pizza
115
220
100%
292
Yogurtland
69
118
93%
262
Rita’s Italian Ice
115
551
100%
293
Play N Trade
68
194
99%
263
Intero Real Estate Services
112
44
64%
294
Signs Now
67
184
100%
264
Quaker Steak & Lube
110
42
76%
295
Cousins Subs
65
151
89%
265
Stratus Clean
109
5,142
100%
296
Red Hot & Blue
65
24
71%
266
Certified Restoration
Drycleaning Network
(CRDN)
108
150
100%
297
Mr. Electric
64
233
100%
267
AIA Corporation
108
256
100%
298
Shakey’s Pizza
64
60
63%
Kiddie Academy Domestic
Franchising
299
Saladworks
64
92
96%
268
108
109
96%
300
Homewatch CareGivers
63
192
98%
Worldwide sales are in millions. * Franchise Times Estimate
Franchise Concept
Worldwide sales are in millions. * Franchise Times Estimate
October 2011 Franchise Times 25 n
THE SANDWICH
REVOLUTION!
LIMITED AREAS AVAILABLE – 800.546.6904
JIMMYJOHNS.COM
©2008JIMMY
JIMMY JOHN’S
JOHN’S FRANCHISE,
RESERVED.
©2011
FRANCHISE,LLC
LLCALL
ALLRIGHTS
RIGHTS
RESERVED.
T.G.I. FRIDAY’S® FRANCHISES ARE NOW AVAILABLE.
IF YOU THINK VISITING FRIDAY’S IS FUN,
IMAGINE OWNING ONE...
®
To learn more, call Robert Fix, Senior Director of Franchise Sales, 972.662.4611, or email [email protected] • www.tgifridays.com
PRIORITY
MARKETS
ILLINOIS
MISSOURI
COLORADO
FLORIDA
KANSAS
TENNESSEE
MARYLAND
VIRGINIA
PENNSYLVANIA
INDIANA
KENTUCKY
WEST VIRGINIA
bd’s is a fun, interactive Create Your Own Stir-Fry concept. Fresh,healthy
innovative flavors make up this unique dining experience.
TRY SOMETHING NEW! TRY bd’s!
TOM RAGAN – Vice President of Franchising
Call: (952) 288-2370 OR E-mail: [email protected]
Call Tom Ragan about our NEW development incentives and access to our newly revised FDD,
with a full earnings claim to see the success our brand is generating.
30 Up & Comers
The Next 100: Heating up, without overheating
percent.
and Canada, suggesting its growth won’t
The Denver-based chain’s success has subside anytime soon.
earned it a spot on “The Next 100,” the
Smashburger can enter new marcontinuation of our Top 200 list, many kets with considerable fanfare at a low
hey didn’t know it at the time, but of which could push to get into the 200 cost thanks to the better-burger trend
when Tom Ryan and Consumer soon. At its current rate, Smashburger and its well-reviewed food—the comCapital Partners created Smashburger could be on our Top 200 within two pany spends less than $50,000 to launch
in mid-2007, their timing was poor. Six years.
a new market. Once opened, it invites
months later, the economy would plunge
At least some of Smashburger’s suc- media members, food bloggers and reginto a recession. By the next year credit cess can be attributed to the popularity ular diners to try the food. The goal is to
would freeze, putting a hold on franchise of the better-burger segment. Fast-casual generate word-of-mouth buzz via virtual
growth.
burger concepts are all the rage, boasting megaphones called blogs, Twitter and
Yet, in le ss t ha n fou r ye a rs, splendid unit economics, strong growth Facebook. All of this generates articles
Smashburger has become a $75 million and boatloads of free advertising thanks and blog posts, which provide some of
company, making it one of the fastest to a huge, Internet-fueled burger culture. its best advertising.
growing, large franchises in the nation— Smashburger’s top rival, and the better“The food is great,” CEO Dave
if not the fastest. Unit count more than burger segment’s leader, Five Guys, is the Prokupek said. “We’ve had great condoubled last year, and grew 216.5 per- fourth fastest growing concept on the sumer acceptance. In almost every city,
cent. The next biggest grower, Express Top 200 and recently broke into the top consumers have really flocked to the
Employment Professionals, grew 86.3 100. Its territories are sold out in the U.S. food. That’s carried the day.” He added
There are fast growers, and then
there is Smashburger.
T
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*As reported in Item 19 of the current Massage Envy FDD. Please review the FDD for further clarification of this metric. This advertisement is not an offer to sell franchises. Such an offer can only be made through
a Franchise Disclosure Document that has been registered with and approved by the appropriate agency in your state, if your state requires such registration. Please contact Massage Envy Franchising, LLC for a
Franchise Disclosure Document. ©2011 Massage Envy Franchising, LLC.
n 28 Franchise Times October 2011
30 Up
Top
& Comers
200 XX
the company’s service—food is brought
to tables—also gives Smashburger a
leg up. Its menu is a little broader than
most burger places, with chicken, black
bean burgers and salads (which pleases
Prokupek’s vegetarian daughter) along
with sweet potato fries.
Yet quick growth can also be dangerous for chains that outgrow their
customer bases or their ability to serve
their franchisees, and Smashburger
doesn’t have to go far to find one such
example in Quiznos, one of the fastest
falling chains on our ranking. The same
company, Rick Schaden’s Consumer
Capital Partners, owns both chains. CCP
birthed Smashburger with a $15 million
investment.
Smashburger seems to be doing many
things differently from its big brother.
For one thing, the company has lured
some top-notch, experienced franchisees,
including former McDonald’s operators. The franchisees were attracted to
Smashburger’s relatively low investment
costs of $400,000 to $450,000, which is
good for a concept that has average unit
volumes of over $1 million.
Since 2007, Smashburger has convinced many of those operators to grow
at a quick but methodical pace of two-tothree units a year, enabling fast growth,
but keeping the concept from overheating.
Smashburger corporate also opens
more than 40 percent of the chain’s restaurants (Quiznos is entirely franchised,
mostly through small, mom-and-pop
operators). And for all of its speed,
Smashburger is deliberate when it comes
to choosing locations. At least four people must sign off on each new location.
Executives who can’t visit a location
analyze traffic patterns and other information using Google Maps. “It’s a pretty
rigorous real estate process,” Prokupek
said. “Real estate is one of the things
that can get restaurant concepts off
track.” Prokupek himself visits each corporate site.
The chain also focuses on local efforts.
It uses local public relations firms to help
market new locations, and regionalizes
its menu, with specialty burgers in specific markets.
For all of those efforts, the fast addi-
Top 200 Sales Growth ($M)
Franchise Concept
Top 200 Sales Growth %
Sales
Growth %
Sales Growth
Franchise Concept
McDonald’s
4,993
Express Employment
Professionals
86.3%
7-Eleven
4,100
Real Living Real Estate
71.2%
KFC
1,600
G.J.Gardner Homes
48.1%
Health Mart
1,520
Five Guys
44.5%
Subway
1,400
J.D. Byrider
38.8%
Massage Envy
33.1%
Sotheby’s International Realty
Affiliates
31.2%
Health Mart
28.1%
InterContinental
Hotels & Resorts
24.4%
DoubleTree by Hilton
23.1%
Express Employment Professionals
880
Circle K Convenience Stores
796
Hyatt
786
Domino’s Pizza
668
Pizza Hut
600
Top 200 Unit Growth
Franchise Concept
Units
Growth
Top 200 Unit Growth %
Franchise Concept
Units
Growth
7-Eleven
2,125
Five Guys
35.6%
Subway
1,883
Planet Fitness
29.3%
KFC
589
Real Living Real Estate
27.0%
Dunkin’ Donuts
574
Anytime Fitness
25.6%
Tim Hortons
448
Batteries Plus
18.0%
Liberty Tax Service
427
Jimmy John’s
16.6%
Hertz
418
Candlewood Suites
13.4%
Domino’s Pizza
352
DoubleTree by Hilton
13.2%
Anytime Fitness
319
Plato’s Closet
13.1%
Circle K Convenience Stores
312
Tim Hortons
12.5%
tion of new units, the continued creation
of new rivals (just as we were writing this,
another betterburger chain announced
plans to sell franchises nationally) and
the sheer growth of many of these concepts could cannibalize sales and derail
future growth.
For his part, Prokupek believes there’s
room for two or three national or international players and “it’s becoming clear
who the top two to three players are.”
“It’s incumbent upon Smashburger to
do what it takes through investing in
the brand through menu variety, quality of product, and to become convenient
to people around the world,” Prokupek
added. “There will be a lot of competition,
and it’s certainly going to be there regionally. At some point, the weaker players
will shake themselves out, and the strong
will survive.”
October 2011 Franchise Times 29 n
Top Automotive
Old cars on the road mean new sales
A
s t he recession hit,
c on su mer s s topp e d
buying cars, especially
new ones. In 2007, new car
dealers sold $687.7 billion
worth of cars and trucks. By
2009, it had fallen to $488.2
billion, a historic, 29-percent
drop in just two years. And
what’s bad for the new car
industry is frequently good for
auto aftermarket franchises.
Fewer new cars means more old ones, and older cars will
eventually need fixing. So auto repair and parts dealers have
recovered from the recession faster. Sales at auto parts dealers reached $77.2 billion, easily besting pre-recessionary levels.
Franchised auto concepts on average saw 5.2 percent growth
in systemwide sales.
Up-and-coming repair franchises like Christian Brothers
Automotive (29.3-percent system sales growth) and Grease
Monkey (28.6 percent sales growth) both benefited the most
from the trend. So did older, traditional concepts. Sales grew 7.1
percent at the 2,300-unit Midas (No. 69 on the Top 200), 4.6
percent at Big O Tires (93) and 6.1 percent at Meineke (134).
Not all saw such gains. No. 73 Jiffy Lube’s sales fell 1 percent.
Carstar, the accident-repair service (No. 117) fell 5 percent.
And not all concepts are in the auto repair business. The
fastest growing automotive franchise on our ranking was
Indiana-based used car dealer and finance company J.D.
Byrider, which saw systemwide sales growth of nearly 39 percent last year on only 3.9 percent growth in unit count. Indeed,
the market for used cars is returning more quickly than that of
the new car business.
Top Automotive
Worldwide
Sales ($M)
Total
Units
Domestic
Units
Foreign
Units
Hertz
7,600
8,518
4,942
3,576
Midas
1,500
2,314
1,379
935
Jiffy Lube
1,429
1,993
1,948
45
Big O Tires
747
456
456
0
J.D. Byrider
740
132
132
0
CARSTAR
565
387
250
137
Meineke Car Care
Centers
465
949
877
72
MAACO Collision
Repair & Auto Painting
419
467
437
30
Tuffy/Car-X
268
389
389
0
Precision Tune Auto Care
161
343
263
80
U-Save Auto Rental
150
174
150
24
Grease Monkey
149
245
188
57
Express Oil Change
146
186
186
0
Glass Doctor
121
199
199
0
SpeeDee Oil Change
& Tune Up
90
163
106
57
Christian Brothers
Automotive
80
78
78
0
Franchise Concept
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n 30 Franchise Times October 2011
Top Business
Temps On Top
Segment regaining lost workers
Top Business
I
magine the whiplash temporary employment agencies must
have felt last year. In 2009, with the country deep in recession, average temporary employment fell 22.2 percent as
companies cut back on hiring. Then, just as quick, businesses
hired more temps. In 2010 temporary employment nearly
recovered those lost workers, growing 18.4 percent, according
to figures from the American Staffing Association.
Employment franchises have followed suit, some of them
extraordinarily so. Spherion Staffing, the temporary staffing
agency and largest business services franchise, had system
sales of nearly $2.2 billion last year, up 20.8 percent and good
enough for No. 48 on our ranking.
But the second largest employment franchise, Express
Employment Professionals, grew even faster, more than 86
percent. It now has $1.9 billion in system sales and is the 52nd
largest franchise system in the country. Labor Finders’ sales
grew 14.2 percent last year and the company is now knocking on the door of the Top 200. Further down is Link Staffing
Services, which is much smaller but growing rapidly—sales
increased 27.1 percent last year.
Not to be outdone, Snap-On Tools, which markets tools to
construction and other businesses, grew 17.8 percent in 2010,
and is No. 61 on our ranking with $1.67 billion in system sales.
Worldwide
Sales ($M)
Total
Units
Domestic
Units
Foreign
Units
Spherion Staffing
2,176
559
534
25
Express Employment
Professionals
1,900
553
508
45
Snap-On Tools
1,666
4,814
3,464
1,350
Valpak Direct
Marketing
382
180
172
8
Labor Finders
217
194
194
0
AIA Corporation
108
256
256
0
Link Staffing Services
79
55
55
0
Pop-A-Lock
70
242
240
2
Mr. Electric
64
233
170
63
Franchise Concept
The concept also has grown internationally, and now has 4,814
units worldwide.
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October 2011 Franchise Times 31 n
Top Cleaning
Cleaning Up
Weather helped the numbers
F
ew would argue that our
weather has been anything but bad lately, but
it’s been a boon to at least
one industry: companies that
clean up after disasters.
Several franchise companies that specialize in disaster
restoration had good years
in 2010 (and, we’re guessing, they are having a better
2011, assuming our read on
the weather news is correct). While category leader
ServiceMaster Clean (No.
58 on the Top 200) saw a
1.6-percent sales decline and
No. 80 Disaster Kleenup
dropped slightly, Tennesseebased ServPro (No. 79) grew 7.7 percent; Paul Davis Restoration
(No. 124) sales rose 9.2 percent and Linc Network (128) sales
rose 5.9 percent.
Franchising is common among cleaning services, and the
industry is surprisingly broad. In addition to disaster restoration, there are companies that clean homes, businesses, air ducts
and carpet. Most systems reported good years last year, and the
average cleaning franchise reported sales growth of 6.1 percent
in 2010 and unit growth of 3 percent.
One of the more common types of cleaning businesses is the
commercial janitorial service. It also includes some of the fastest growing companies in the industry. Stratus Clean reported
67.7 percent sales growth last year. Vanguard Cleaning Services
grew 14.3 percent. Clean Net grew 7.5 percent. Other companies included Jani-King (No. 110 on the Top 200), Coverall
(168) and Jan-Pro (No. 208).
Janitorial concepts are especially controversial right now.
Their low cost has attracted new franchisees at a time of high
unemployment, but lawsuits against the companies are becoming common. Critics—and now some courts—say franchisees
are more like employees than they are business owners.
For instance, per-unit sales at the companies last year ranged
from $21,000 to $56,000. By contrast, per-unit sales for Molly
Maid, the home-cleaning service, were $360,000. Yet Molly
Maid’s sales didn’t grow (or fall) last year and the company
failed to break the Top 200.
n 32 Franchise Times October 2011
Top Cleaning
Franchise Concept
Worldwide
Sales ($M)
Total
Units
Domestic
Units
Foreign
Units
ServiceMaster Clean
1,791
4,825
3,021
1,804
SERVPRO
1,121
1,571
1,571
0
Disaster Kleenup
International
1,025
246
189
57
Roto-Rooter
680
563
530
33
Jani-King
647
11,454
9,245
2,209
Paul Davis Restoration
514
250
250
0
Linc Network
493
149
132
17
Stanley Steemer
Carpet Cleaner
406
295
295
0
Coverall Health-Based
Cleaning System
321
9,416
8,521
895
Mr. Rooter
248
385
263
122
JAN-PRO
220
10,334
10,300
34
Molly Maid
219
610
429
181
Rainbow International
Restoration & Cleaning
198
389
269
120
The Cleaning Authority
137
176
176
0
CleanNet USA
129
4,666
4,666
0
Steamatic
124
357
257
100
The Maids
120
1,117
1,085
32
Stratus Clean
109
5,142
5,132
10
Certified Restoration
Drycleaning Network
(CRDN)
108
150
133
17
Comet Cleaners
103
261
250
11
Coit
100
46
45
1
Truly Nolen
Pest Control
93
225
87
138
Vanguard Cleaning
Systems
88
2,152
1,996
156
Aire Serv
71
191
182
9
Maid Brigade
63
452
377
75
Top 200 Overview
Top 200 continued from 3
Systems also must have a strong presence in the U.S. And
franchised units must represent at least 15 percent of the overall unit count. Thus, relatively new franchise entrants, such as
the family-dining chain, First Watch, are not on the ranking,
even though they are considered a franchise system.
Some things never change; some do
A few things with the ranking never change. One of them
is McDonald’s, which has always been the largest franchise
system, at least since we’ve been keeping track, and has only
solidified that status in recent years—No. 2, 7-Eleven, which
we believe may one day take the top spot, remains only a distant threat.
McDonald’s has been unfathomably successful in recent
years. In 2005, McDonald’s system-wide revenue was $52.95
billion. This year it was $77.38 billion—46 percent higher. That
$24.4 billion would be easily good enough for No. 3 on this
year’s ranking. In other words, McDonald’s in six years added
more revenue to its system than KFC earns in a year.
Here’s what’s most amazing: Almost all of that has been
incremental store sales. The chain’s unit growth in six years was
a modest 6.4 percent. Yet it has leveraged its ubiquitous presence and unmatched marketing power to add a long line of new
products, including snack wraps, smoothies, higher-end coffee
products and Angus Beef burgers. The result, on a unit-level
basis, McDonald’s has left competitors in the dust.
On the other end of the spectrum is Denver-based Quiznos.
Early last decade, the Denver-based sub chain was one of the
fastest-growing concepts in franchising at a time when there
was fast growth aplenty. At its peak, in 2007, the chain’s system sales reached $2.1 billion while unit count grew to 5,214.
It has been on a decline since then that accelerated to nearly
unprecedented levels last year. Domestic unit count fell nearly
25 percent in 2010. System sales are an estimated $1.2 billion.
At one point, the chain was the country’s 48th largest franchise.
It has since fallen to No. 74. The chain is now trying to restructure its debt and is fending off suggestions that it may have to
declare bankruptcy.
October 2011 Franchise Times 33 n
The Fast. Fresh. Italian.
Franchise
Fazoli’s is now growing opportunities for both single
and multi-unit operators.
With freshly prepared Italian entrees, salads and sandwiches,
Fazoli’s is defining the Premium QSR / Fast Casual concept.
Fazoli’s is a great choice for franchisees looking to freshen
up their portfolio, convert existing locations, or open a nontraditional / in-line location.
®
Fazoli’s offers:
• 22 years experience operating over 220 company and
franchised units
• All new premium QSR design and enhanced service style
• Revamped menu featuring freshly prepared Italian offerings
• New and existing markets available for development
• Fast, easy conversions with scalable options
• Dine-In, Drive-Thru & Catering Profit Centers
www.fazolis.com |
Fazoli’s and logo are federally registered trademarks of Fazoli’s System Management, LLC, Lexington, KY.
Contact us to learn more about our new franchisee incentives.
Call 859-825-6333 or email [email protected] | www.fazolis.com
THE CHANCE TO MAKE A MILLION.
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Add to that a strong support system and a market that’s experiencing exponential
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Call Mike Pearce at 800.947.4532 or log on to franchise.JDByrider.com to
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exceeded the average; New York Disclaimer: This advertisement is not an offering. An offering can only be made by a prospectus filed first with the Department of Law of the State of New York. Such filing does not constitute approval by the Department of Law.
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Top Hotel
Rooms for Rent
Higher-end performed best
U.S.-based franchised hotels’ performance on
the Top 200 was a mixed bag. To be sure, most
companies saw growth—especially those with a
strong global presence.
are few franchises in that segment. Smith’s “Upper Upscale”
segment, which does include franchises such as Hilton, Hyatt,
Marriott, Renaissance, Sheraton, Westin and Wyndham, saw
5.7-percent growth in RevPar. So did mere Upscale chains (such
as Radisson, Residence Inn and Springhill Suites).
On the other end of the spectrum, the franchise-heavy economy hotels segment, including chains like Red Roof, Microtel,
y all accounts, people traveled more in 2010 than they did Motel 6 and Home-Towne Suites saw a 3.1-percent decrease
in that forgettable year, 2009. Businesses spent more for in average rate.
their workers to attend conferences and meetings. People
In simple terms, much of the growth in travel last year came
went on more vacations. In some cases, travel returned to pre- from two segments: business travel and higher-income houserecessionary levels. Overall hotel occupancy in the U.S. grew holds. Business travel pretty much stopped in late 2008 and
5.7 percent last year. Occupancy grew everywhere else in the into 2009, but it began to return last year. And higher-end
world, too, according to Smith
households have come out of the
Travel Research, including Asia’s
recession looking far better than
8.9 percent growth.
their lower income counterparts.
And yet U.S.-based franchised
The result: hotels that cater to such
hotels’ performance on the Top
travelers fared much better.
200 was a mixed bag. To be sure,
So higher-end hotel chains were
most companies saw growth—
more likely to have a good year.
Intercontinental Hotels & Resorts,
especially those with a strong
global presence. On average, franfor instance, saw 24.4-percent revchised hotel and travel chains’
enue increase and moved eight
systemwide revenue grew 6.6 perspots up our ranking to No. 41.
cent last year, while unit count
Meanwhile, LaQuinta Inns, which
grew 2.1 percent.
was not on our ranking last year,
Yet plenty of hotel chains saw
saw system sales fall 15.4 percent
in 2010. No. 68 Days Inn saw sysat least modest declines, includtem sales fall 1.7 percent and fell
ing Hilton Garden Inn (down
from No. 52 to 57), Days Inn (No.
six spots. One exception: Westin,
68, down from 62), Westin (No.
which struggled with an 11.5-percent sales decrease.
46 from 36) and Red Roof Inns,
Last year was similarly mixed
which dropped off the list comfor travel agencies. We’ve grouped
pletely. Travel agencies, which
travel agencies with hotels under a
we’re grouping along with hotels
under a general “travel” heading, likewise had a mixed year.
more general travel heading for comparison’s sake. And like
So why the mixed bag? According to Smith Travel Research, hotels, whose revenue we estimate based on revenue per availdemand certainly grew, but various factors kept hotels from able room, we estimate travel agencies’ revenue by estimating
increasing rates like as is usually done to take advantage of total commissions that the agencies make off booking trips.
the growth. Average daily hotel rates last year stayed steady, a
Travel Leaders, the largest franchised travel agency, moved
0.1 percent decline. Individuals and businesses booked their from No. 170 to No. 175, after a decline in both units (-7.8 perrooms late, which kept hotels from raising their rates to meet cent) and systemwide revenue (-4.2 percent).
demand growth.
Yet Results! Travel stayed steady on the list at No. 177 after
And there was a distinct difference between hotel segments— 3.8-percent revenue growth. The much smaller CruiseOne,
the higher end the hotel, the more likely it was to have a good meanwhile (which is not on the Top 200) saw unit count go
year. Luxury brands’ occupancy rates soared 7.8 percent and up by nearly a quarter, while system sales grew nearly 30 perrates grew 2.1 percent. Revenue per available room, or RevPar cent.
(a key industry statistic) grew 10.1 percent. Unfortunately, there
B
n 36 Franchise Times October 2011
Top Hotel
Top Hotels
Franchise Concept
Worldwide
Sales ($M)
Total
Units
Domestic
Units
Foreign
Units
Four Points Sheraton
650
159
106
53
Worldwide
Sales ($M)
Total
Units
Domestic
Units
Foreign
Units
Marriott Hotels,
Resorts & Suites
8,000
554
357
197
Wyndham Hotels
& Resorts
625
101
66
35
Hilton Hotels
& Resorts
7,000
544
258
286
Clarion Hotels
575
320
192
128
Holiday Inn Hotels
& Resorts
5,100
1,241
679
562
Staybridge Suites
500
188
173
15
Sheraton
5,100
395
196
199
Howard Johnson
485
474
331
143
Hyatt
5,000
429
325
104
Econo Lodge
475
848
784
64
Hampton Inn & Hampton Inn & Suites
Candlewood Suites
450
288
287
1
4,400
1,744
1,698
46
Sleep Inn & Suites
400
408
398
10
Holiday Inn Express
4,100
2,075
1,716
359
Travelodge
375
436
343
93
Courtyard
3,500
892
795
97
Comfort Inn
& Comfort Suites
Towneplace Suites
375
193
192
1
3,350
2,621
2,058
563
Travel Leaders
294
379
379
0
Radisson Hotels
2,700
423
125
298
Results! Travel
285
677
677
0
InterContinental
Hotels & Resorts
2,500
171
56
115
Wingate by Wyndham
250
165
161
4
Crowne Plaza Hotels
& Resorts
2,400
388
169
219
Microtel Inns & Suites
235
316
300
16
Residence Inn
2,300
613
595
18
Red Roof Inns
230
342
342
0
Westin
2,300
179
117
62
Baymont Inn & Suites
225
261
260
1
Renaissance
2,000
146
78
68
Rodeway Inn
185
389
387
2
Hilton Garden Inn
1,800
519
480
39
AmericInn
180
218
218
0
Embassy Suites Hotels
1,750
210
201
9
CruiseOne
175
721
720
1
Quality Inn and Suites
1,600
1,389
1,012
377
Knights Inn
125
336
315
21
DoubleTree by Hilton
1,600
257
217
40
Hawthorn Suites
by Wyndham
120
76
75
1
Ramada
1,575
896
525
371
Days Inn
1,500
1,877
1,678
199
Super 8
1,475
2,174
1,855
319
La Quinta Inns
& Suites
1,450
808
805
3
Fairfield Inn
1,150
658
648
10
Motel 6
900
1,028
1,010
18
Homewood Suites
by Hilton
850
307
296
11
Springhill Suites
750
274
273
1
Country Inn & Suites
700
488
458
30
Franchise Concept
October 2011 Franchise Times 37 n
Top Personal
Getting Personal
Massaging the group’s figures
C
onsumers spoiled themselves last year, at least judging
from the performance of personal services franchises. On
average, these systems grew 5 percent last year while unit
count was up 2.3 percent. But that doesn’t tell the story.
This does: Massage Envy, a system that provides a service
that doesn’t exactly conjure thoughts of recession resistance,
grew 33.1 percent last year and added 8.3 percent more units.
The chain surged up our ranking to No. 107. And it hasn’t even
opened its first international unit. It means that people in the
U.S. got a lot of massages.
As it turns out, people kept getting massages throughout
the downturn, perhaps as a mini-vacation, and few things can
wipe out the stress of high unemployment and a bad housing
market quite like a good massage. It has health benefits, too,
and the company has been aggressive in arguing its case before
skeptical lenders, assisting its growth.
The personal services segment is broad, including businesses
from tax services to painting services to fitness classes. And
there were big differences in performance within those sectors.
The Texas-based fitness concept Curves’ unit count declined by
8.3 percent and sales decreased 4.1 percent and the company
fell to No. 81 on our ranking. But several other fitness concepts
grew, most of them offering low-cost memberships, including
Planet Fitness, which reported 29.3-percent growth in unit
count and a 3.9-percent increase in sales; Anytime Fitness (178),
whose unit count grew by a quarter, and Snap Fitness (193),
whose sales rose 19.1 percent.
Hair-care franchises grew also. Sales at No. 86 Great Clips
increased 7.6 percent and No. 109 Super Cuts grew 2.3 percent,
while the up-and-coming Sports Clips’ sales rose 13.6 percent.
But Cost Cutters’ sales declined by 3.5 percent amid heavy
competition for low-cost hair care. Among education franchises,
sales at The Goddard School increased 12.7 percent and the
system is now ranked No. 142 on our list. But an 8-percent
unit decline kept sales flat at No. 144, Sylvan Learning Center.
Tax assistance services in general had a bad year. H&R
Block, the 27th largest franchise in the country, had a nearly
12 percent decline in sales and a 9.3-percent unit decline. No.
122 Jackson Hewitt is even worse off. Its sales declined 19 percent and the company is in bankruptcy. On the other hand,
Liberty Tax Service moved up to No. 176 on our ranking after
a 20.3 percent growth in sales last year. Still, tax services are
struggling to meet the competition from software providers.
n 38 Franchise Times October 2011
Top Personal
Worldwide
Sales ($M)
Total
Units
Domestic
Units
Foreign
Units
H&R Block Tax Services
3,874
13,149
11,506
1,643
Curves
1,000
8,032
4,956
3,076
Great Clips
820
2,913
2,846
67
Massage Envy
652
656
656
0
SuperCuts
648
2,292
2,072
220
Jenny Craig
600
737
575
162
Jackson Hewitt Tax
Service
527
6,407
6,407
0
Planet Fitness
521
388
388
0
Goddard School (The)
417
371
371
0
Fantastic Sams Hair
Salons
415
1,249
1,249
0
Sylvan Learning Centers
415
954
934
20
Primrose Schools
311
221
221
0
Liberty Tax Service
292
3,858
3,605
253
Anytime Fitness
284
1,564
1,504
60
Snap Fitness
237
1,185
1,054
131
Sport Clips
200
774
774
0
Cost Cutters
198
788
788
0
Two Men and a Truck
187
210
193
17
Certa ProPainters
184
312
290
22
First Choice Hair Cutters
122
451
85
366
Kiddie Academy Domestic Franchising
108
109
109
0
Jazzercise
96
7,643
6,724
919
Franchise Concept
Top
TopPrinting
200 XX
Weak demand hinders print/shipping sectors
P
rinting is challenging right now, and the mixed performance of printing and shipping companies reflects those
difficulties. On average, printing and shipping companies
averaged 6.8 percent sales growth and 3.7 percent unit growth,
but those numbers may be misleading. Remove the two worst
performers and the two best performers of the bunch and the
sales average falls to zero. The upshot: companies struggled to
move the needle last year.
Shipping retailers are dealing with weak demand brought on
by a bad economy. Category leader UPS Stores/Mail Boxes Etc.
had system sales of $815 million, down 3 percent from last year.
It is the 87th-ranked system on our Top 200. Likewise, sales
at PostNet declined 3.2 percent and the chain failed to break
our ranking. System sales at Postal Annex+ fell 4.9 percent.
But 316-unit Unishippers was one of those statistical outliers,
reporting 17 percent sales growth last year.
Like the shipping business, printing is facing some difficulties, thanks to growing competition from the Internet and
higher-quality home printers. Yet printing specialists seemed
to fare better. Sales at No. 139-ranked Minuteman Press grew
6.3 percent; Sir Speedy Printing & Marketing (158) sales grew
3.1 percent and Alpha Graphics grew 8.6 percent, moving up
to No. 184 on our ranking.
The performance of sign companies and promotional product franchises was more mixed. A 4.6-percent unit decline at
Signarama led to a 20.1 percent fall in sales. Sales at Signs Now
grew 1.2 percent, and Proforma, which makes promotional
products, moved up nine spots on the 200 thanks to 15-percent sales growth. Apparently, businesses are buying more hats
and mugs with their logos on them.
Top Printing
Worldwide
Sales ($M)
Total
Units
Domestic
Units
Foreign
Units
The UPS Store
/Mail Boxes Etc.
815
4,735
4,382
353
Minuteman Press
425
927
714
213
SIGNARAMA
422
876
519
357
Sir Speedy Printing
& Marketing Services
368
381
276
105
Proforma
359
750
700
50
Fastsigns
281
534
452
82
Unishippers
269
316
316
0
AlphaGraphics
263
272
235
37
Allegra Network
231
312
288
24
PostNet
212
783
341
442
Kwik Kopy Printing
143
388
88
300
PIP Printing
& Document Services
127
117
111
6
Pak Mail
125
425
275
150
PostalAnnex+
123
311
309
2
67
184
169
15
Franchise Concept
Signs Now
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------------------------------Many Available Territories
Strong Earnings Claim
Fantastic Real Estate Opportunities
128 S. Tryon St., Suite 900 Charlotte, NC 28202
See Item 19 of our franchise disclosure document for additional
financial information on our centers.
October 2011 Franchise Times 39 n
Top Real Estate
Real estate struggled
I
f you were a real estate agent last year, you know this: The
housing market stunk in 2010. With few incentives to buy,
potential home buyers stood pat. Those who did buy had
their pick of the litter. Buyers kept prices down. And more than
a third bought houses either through a short sale or a foreclosure. By the end of last year, the median home price had fallen
to $168,800.
The combination of fewer homes sold and lower prices had
to be bad news for real estate franchises. Or was it? Several real
estate companies saw strong growth last year. Real Living Real
Estate, the Ohio-based franchise that has been aggressively converting real estate franchises since it was acquired by Brookfield
Residential Property Services in late 2009, is the fastest growing real estate company in the nation. The company reported
71.2 percent system sales growth thanks to unit count growth
of nearly 30 percent last year. Real Living debuts on the ranking at No. 153.
And Sotheby’s, the luxury real estate firm, grew by nearly
a third, breaking into the Top 100 at No. 94, thanks to its
strength in international markets and a better market for upperend housing.
Growth in international markets kept ERA Real Estate (No.
111) and the home-construction concept, G.J. Gardner Homes
(up 71.2 percent) from falling with the markets. Prudential Real
Estate sales grew 4.4 percent, but most of the rest stayed steady.
The biggest fall was at Century 21, which saw a 14.3 percent
decline in sales last year.
Top Real Estate
Worldwide
Sales ($M)
Total
Units
Domestic
Units
Foreign
Units
RE/MAX
6,625
6,284
3,411
2,873
Coldwell Banker
Real Estate
3,973
3,433
2,693
740
Prudential Real Estate
2,878
1,676
1,600
76
Keller Williams Realty
2,356
701
687
14
CENTURY 21
Real Estate
1,800
8,000
3,000
5,000
Sotheby’s International
Realty Affiliates
740
562
352
210
ERA Real Estate
641
2,547
695
1,852
G.J.Gardner Homes
503
105
18
87
Real Living Real Estate
375
438
425
13
Advance Realty USA
203
38
38
0
Intero Real
Estate Services
112
44
44
0
Franchise Concept
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n 40 Franchise Times October 2011
©2011 Einstein Noah Restaurant Group, Inc. 1109-464
• AttractiveSalesto
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Top Restaurant
The view from the ‘Top’ of the restaurants
How does the world’s largest
franchise find locations to fit new
units? We asked, and got some
interesting responses.
best view of any Subway in the world,”
said Les Winograd, a company spokesman.
If you think Subway is everywhere,
you’re right. The country’s largest franchise by unit count, with nearly 24,000
domestic units, still managed to find
here is a Subway atop a crane. It’s at space here for 800 more restaurants last
the World Trade Center site in New year. This year, the company expects to
York, and it rises and lowers with a add 1,000 to 1,100 more units in North
crane, enabling construction workers to America. In other words: It adds the size
buy lunch without making the 45-min- of a Blimpie to its domestic unit count
ute trip down to the ground and to visit every year. Worldwide, it found locations
all those regular restaurants. “It has the for 1,883 more restaurants in 2010. Only
T
Top Restaurant
7-Eleven (2,125) added more.
How can Subway find locations for all
of these restaurants? As it is, Subway has
8,000 units in nontraditional venues—
which on its own would be one of the
15 largest franchises in the country by
unit count. “We have Subways in hospitals, college campuses, convenience stores,
Wal-Marts, car dealerships, laundromats,
tanning salons,” said Winograd, “so putting one in your garage is not that far off.”
Interestingly enough, Subway’s nonRestaurants continued on 48
Worldwide
Sales ($M)
Total
Units
Domestic
Units
Foreign
Units
Dairy Queen
2,750
5,898
4,514
1,384
Franchise Concept
Worldwide
Sales ($M)
Total
Units
Domestic
Units
Foreign
Units
McDonald’s
77,380
32,737
14,027
18,710
IHOP Restaurants
2,600
1,504
1,476
28
KFC
19,400
16,853
5,055
11,798
Papa John’s
2,389
3,646
2,871
775
Subway
15,200
33,959
23,850
10,109
Denny’s
2,272
1,658
1,571
87
Burger King
14,800
12,251
7,253
4,998
Hardee’s
1,958
1,899
1,692
207
Pizza Hut
10,200
13,432
7,542
5,890
Popeyes Louisiana
Kitchen
1,863
1,977
1,580
397
Wendy’s
9,100
6,576
5,883
693
Little Caesar’s
1,800
3,213
3,213
0
Taco Bell
7,200
5,896
5,634
262
Buffalo Wild Wings
Grill & Bar
1,703
732
732
0
Domino’s Pizza
6,268
9,351
4,929
4,422
Baskin-Robbins
1,653
6,433
2,547
3,886
Dunkin’ Donuts
6,004
9,760
6,772
2,988
Golden Corral
Buffet & Grill
1,640
485
485
0
Tim Hortons
5,625
4,026
602
3,424
Ruby Tuesday
1,557
879
821
58
Applebee’s Neighborhood
Grill & Bar
4,413
2,010
1,862
148
Carl’s Jr.
1,497
1,249
1,097
152
Chili’s Grill & Bar
4,400
1,515
1,295
220
Whataburger
1,226
717
717
0
Sonic, America’s
Drive-In
3,620
3,572
3,572
0
Quiznos Sub
1,200
3,413
2,772
641
Chick-fil-A
3,582
1,540
1,540
0
Red Robin
1,175
450
432
18
Panera Bread
3,123
1,453
1,450
3
Church’s Chicken
1,170
1,712
1,251
461
Arby’s
3,000
3,649
3,523
126
Hooters Restaurants
959
455
388
67
Jack in the Box
2,935
2,206
2,206
0
Boston’s The
Gourmet Pizza
953
389
49
340
T.G.I. Friday’s
2,800
906
560
346
Perkins Restaurant
& Bakery
810
474
457
17
Franchise Concept
October 2011 Franchise Times 41 n
Top Restaurant
Worldwide
Sales ($M)
Total
Units
Domestic
Units
Foreign
Units
Worldwide
Sales ($M)
Total
Units
Domestic
Units
Foreign
Units
Krispy Kreme
808
646
229
417
Pollo Campero
340
344
50
294
Zaxby’s
779
514
514
0
Sbarro the Italian Eatery
330
1,049
689
360
Steak N Shake
770
483
483
0
Chester’s Restaurant
317
1,739
1,504
235
Jimmy John’s
725
1,131
1,131
0
Johnny Rockets
300
295
237
58
Five Guys
721
743
736
7
A & W Family
Restaurants
300
639
322
317
Bojangles’ Restaurants
713
486
484
2
Taco John’s
296
427
427
0
Long John Silver’s Restaurants
700
995
964
31
Fuddruckers
270
189
185
4
Culver’s Frozen Custard
& Butterburgers
689
424
424
0
Noodles & Company
260
255
255
0
Checkers/Rally’s
653
798
793
5
Houlihan’s
256
89
89
0
Papa Murphy’s
Take ‘N’ Bake
653
1,257
1,241
16
Schlotzsky’s
250
351
334
17
Friendly’s Ice Cream
634
496
496
0
Corner Bakery Café
247
118
118
0
Del Taco
579
522
522
0
Sonny’s Real
Pit Bar-B-Q
238
128
128
0
El Pollo Loco
557
412
412
0
Old Chicago
Pasta & Pizza
233
101
101
0
CiCi’s Pizza
545
597
597
0
Firehouse Subs
233
403
403
0
Ruth’s Chris
Steak House
540
131
117
14
Charley’s Grilled Subs
232
422
372
50
Jason’s Deli
503
221
221
0
Marie Callendar’s
230
121
120
1
Cold Stone Creamery
493
1,455
1,122
333
Fox’s Pizza Den
226
278
278
0
Qdoba Mexican Grill
475
542
542
0
The Melting Pot
225
142
140
2
Famous Dave’s
472
182
182
0
El Chico Cafe
223
117
112
5
Sizzler
464
261
176
85
Huddle House
Restaurants
221
398
398
0
Captain D’s Seafood
Kitchen
450
542
538
4
Fazoli’s Restaurants
213
224
223
1
Krystal Company
440
364
364
0
Bruegger’s Bagels
205
301
298
3
Coffee Bean
& Tea Leaf (The)
404
779
290
489
Peter Piper Pizza
197
135
90
45
Jamba Juice
400
743
742
1
Beef ‘O’ Brady’s
196
216
216
0
Einstein Bros. Bagels
399
591
591
0
Smoothie King
185
632
551
81
Round Table Pizza
371
473
466
7
Raising Cane’s
Chicken Fingers
175
96
96
0
Auntie Anne’s Pretzels
359
1,126
875
251
Villa Pizza/Villa
Fresh Italian Kitchen
168
308
281
27
McAlister’s Deli
357
303
303
0
The Original
Pancake House
160
117
117
0
Uno Chicago Grill
351
161
151
10
Blimpie Subs & Salads
160
848
848
0
Moe’s Southwest Grill
347
419
418
1
Taco Time
159
372
245
127
Wingstop
344
476
470
6
Mazzio’s Italian Eatery
141
143
143
0
Franchise Concept
n 42 Franchise Times October 2011
Franchise Concept
Top Restaurant
Worldwide
Sales ($M)
Total
Units
Domestic
Units
Foreign
Units
Franchise Concept
Worldwide
Sales ($M)
Total
Units
Domestic
Units
Foreign
Units
Kilwins Chocolates
139
82
82
0
bd’s Mongolian Grill
76
34
33
1
Gatti’s Pizza
& GattiTown
138
125
125
0
Smashburger
75
93
93
0
Pizza Inn
134
299
222
77
Fatburger
73
98
73
25
Pizza Ranch
125
154
154
0
Cheeburger!
Cheeburger!
72
66
66
0
Penn Station
East Coast Subs
124
227
227
0
Genghis Grill The Mongolian Stir Fry
70
58
58
0
Cinnabon
117
864
469
395
Yogurtland
69
118
106
12
Marco’s Pizza
115
220
219
1
Cousins Subs
65
151
151
0
Rita’s Italian Ice
115
551
551
0
Red Hot & Blue
65
24
24
0
Quaker Steak & Lube
110
42
42
0
Shakey’s Pizza
64
60
56
4
Carvel Ice Cream
108
449
414
35
Saladworks
64
92
92
0
Stockade Companies
106
60
31
29
Nathan’s Famous
102
285
268
17
Franchise Concept
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competition. Mouth watering seasonings are baked into the edge of our pizzas making
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October 2011 Franchise Times 43 n
Top Retail
Make Change
Retail sees second-hand sales
Looking for an indication of how the economy is
faring? Look no further than the country’s retail
franchise systems.
F
rugal consumers flocked to franchise systems that sell used
clothing last year. Economies are growing in other countries, so systems with an international presence are growing
as well. The brutal housing market is pounding companies that
sell home-improvement items. And oddly enough, decorative
fruit baskets are popular.
Edible Arrangements, the Connecticut-based franchise that
makes bouquets out of fruit was among the fastest growing
retail franchises in our ranking. Systemwide sales at the concept grew 17.3 percent. And much of that was organic sales
growth—unit count grew a still-healthy 7.8 percent last year.
The growth was good enough to propel the concept from No.
163 on the Top 200 to No. 150.
Like many sectors, retail franchising had a wide range of performance. On average, franchised retailers’ sales grew 3 percent
and unit count grew 1.5 percent. Their performance echoes
broad improvement for retail sales last year as the economy
slowly recovered some of the sales lost in 2009.
For this category, we include convenience stores such as
7-Eleven, the world’s second-largest franchise which dominates the C-store category much like McDonald’s dominates
QSR. The Japan-based system that got its start in Texas had
systemwide sales of $63 billion, far and above No. 2, Ace
Second-hand sales continued on 47
n 44 Franchise Times October 2011
Top Retail
Worldwide
Sales ($M)
Total
Units
Domestic
Units
Foreign
Units
7-Eleven
63,000
39,482
6,137
33,345
Ace Hardware
12,500
4,308
4,108
200
Circle K
Convenience Stores
10,726
7,423
3,367
4,056
ampm
3,427
3,817
1,225
1,592
GNC
2,050
5,257
3,651
1,606
Aaron’s
1,877
1,814
1,770
44
Pet Supplies “Plus”
549
245
245
0
Edible Arrangements
385
913
841
72
Wireless Zone
385
465
465
0
Slumberland Furniture
370
117
117
0
Batteries Plus
313
453
453
0
Matco Tools
281
1,468
1,423
45
Plato’s Closet
241
302
298
4
Play It Again Sports
236
327
290
37
Budget Blinds
235
791
707
84
Once Upon A Child
168
241
218
23
Petland
162
148
93
55
ColorTyme
161
213
213
0
Granite
Transformations
145
152
82
70
HobbyTown USA
128
160
160
0
Wild Birds Unlimited
118
272
259
13
Interstate All
Battery Center
100
195
181
14
EmbroidMe
81
415
330
85
Relax the Back
75
103
101
2
Foot Solutions
70
199
151
48
Play N Trade
68
194
180
14
Franchise Concept
Top 200 Alphabetical Listing
Alphabetical
Franchise Concept
7-Eleven
Worldwide
Sales Rank
2
Franchise Concept
Circle K
Convenience Stores
Worldwide
Sales Rank
7
Clarion Hotels
116
Franchise Concept
Worldwide
Sales Rank
Franchise Concept
Worldwide
Sales Rank
Fastsigns
180
Jamba Juice
147
Firehouse Subs
198
Jani-King
110
Five Guys
97
Jason’s Deli
126
Four Points Sheraton
108
Jenny Craig
114
Friendly’s Ice Cream
112
Jiffy Lube
73
Fuddruckers
181
Jimmy John’s
96
G.J.Gardner Homes
125
Johnny Rockets
172
A & W Family
Restaurants
173
Coffee Bean
& Tea Leaf (The)
146
Aaron’s
53
Cold Stone Creamery
129
Ace Hardware
6
Coldwell Banker
Real Estate
26
Allegra Network
200
32
AlphaGraphics
184
Comfort Inn
& Comfort Suites
Comfort Keepers
167
ampm
31
GNC
49
Keller Williams Realty
44
Corner Bakery Café
190
Anytime Fitness
178
Goddard School (The)
142
KFC
3
Applebee’s Neighborhood Grill & Bar
Country Inn & Suites
101
22
63
Krispy Kreme
89
Courtyard
30
Golden Corral
Buffet & Grill
168
27
72
159
H&R Block Tax Services
La Quinta Inns & Suites
Auntie Anne’s Pretzels
Coverall Health-Based
Cleaning System
86
138
34
Great Clips
Krystal Company
Arby’s
42
23
128
170
103
Linc Network
Batteries Plus
Culver’s Frozen Custard
& Butterburgers
Hampton Inn
& Hampton Inn
& Suites
176
62
Crowne Plaza
Hotels & Resorts
Liberty Tax Service
Baskin-Robbins
Hardee’s
51
81
55
93
Curves
Little Caesar’s
Big O Tires
Health Mart
14
Bojangles’ Restaurants
98
Dairy Queen
38
Long John Silver’s
Restaurants
100
Hertz
11
Boston’s The
Gourmet Pizza
83
Days Inn
68
141
Hilton Garden Inn
57
MAACO Collision
Repair & Auto Painting
Budget Blinds
195
Del Taco
115
Hilton Hotels & Resorts
13
Marriott Hotels,
Resorts & Suites
10
Buffalo Wild Wings
Grill & Bar
60
Denny’s
47
Holiday Inn Express
25
Massage Envy
107
Burger King
5
Disaster Kleenup
International
80
19
Matco Tools
179
Domino’s Pizza
16
Holiday Inn
Hotels & Resorts
Home Instead
Senior Care
McAlister’s Deli
161
102
85
Candlewood Suites
137
Captain D’s
Seafood Kitchen
136
Carl’s Jr.
70
CARSTAR
117
CENTURY 21
Real Estate
56
Charley’s Grilled Subs
199
Checkers/Rally’s
105
Chester’s Restaurant
169
Chick-fil-A
29
Chili’s Grill & Bar
24
Church’s Chicken
77
CiCi’s Pizza
120
n 46 Franchise Times October 2011
DoubleTree by Hilton
65
McDonald’s
1
Meineke Car
Care Centers
134
Microtel Inns & Suites
196
Midas
69
Minuteman Press
139
Moe’s Southwest Grill
163
Motel 6
84
Dunkin’ Donuts
17
Homewood Suites
by Hilton
Econo Lodge
131
Hooters Restaurants
82
Edible Arrangements
150
Houlihan’s
186
Einstein Bros. Bagels
149
Howard Johnson
130
El Pollo Loco
118
Hyatt
21
Embassy Suites Hotels
59
IHOP Restaurants
40
ERA Real Estate
111
InterContinental
Hotels & Resorts
41
Mr. Rooter
189
Express Employment
Professionals
52
Interim HealthCare
99
Noodles & Company
185
Fairfield Inn
78
J.D. Byrider
95
Old Chicago
Pasta & Pizza
197
Famous Dave’s
133
Jack in the Box
35
Panera Bread
33
143
Jackson Hewitt
Tax Service
122
Papa John’s
43
Fantastic Sams
Hair Salons
Top 200 Alphabetical
Top 200
Listing
XX
Franchise Concept
Worldwide
Sales Rank
Papa Murphy’s
Take ‘N’ Bake
106
Paul Davis Restoration
124
Perkins Restaurant
& Bakery
88
Pet Supplies “Plus”
119
Pizza Hut
8
Planet Fitness
123
Plato’s Closet
191
Play It Again Sports
194
Pollo Campero
165
Popeyes Louisiana
Kitchen
54
Primrose Schools
171
Proforma
160
Prudential Real Estate
36
Qdoba Mexican Grill
132
Quality Inn and Suites
64
Quiznos Sub
75
Radisson Hotels
39
Ramada
66
Franchise Concept
Worldwide
Sales Rank
Franchise Concept
Franchise Concept
Worldwide
Sales Rank
RE/MAX
15
Sleep Inn & Suites
148
Taco John’s
174
Real Living Real Estate
153
Slumberland Furniture
157
The UPS Store
/Mail Boxes Etc.
87
Red Robin
76
Snap Fitness
193
Tim Hortons
18
Renaissance
50
Snap-On Tools
61
Towneplace Suites
155
Residence Inn
45
Sonic, America’s
Drive-In
28
Travel Leaders
175
Results! Travel
177
192
Travelodge
154
Roto-Rooter
104
Sonny’s Real Pit BarB-Q
94
183
156
Sotheby’s International
Realty Affiliates
Tuffy/Car-X
Round Table Pizza
Spherion Staffing
48
Unishippers
182
Springhill Suites
92
Uno Chicago Grill
162
Stanley Steemer
Carpet Cleaner
Valpak Direct Marketing
152
145
Staybridge Suites
127
Steak N Shake
91
Subway
4
Super 8
71
SuperCuts
109
Sylvan Learning Centers
144
T.G.I. Friday’s
37
Taco Bell
12
Ruby Tuesday
67
Ruth’s Chris
Steak House
121
Sbarro the Italian Eatery
166
Schlotzsky’s
ServiceMaster Clean
SERVPRO
Sheraton
SIGNARAMA
187
58
79
20
140
Sir Speedy Printing
& Marketing Services
158
Sizzler
135
percent.
Specialty retailers did particularly well.
The fastest growing retail system last year
was the phone retailer Wireless Zone,
Hardware. 7-Eleven’s growth, once which had systemwide sales growth of
again, was propelled by its international 20.3 percent and is now the 151st largest
performance—84 percent of the compa- franchise system in the country.
ny’s units are outside U.S. borders, which
Retailer Batteries Plus reported system
is nearly enough to disqualify the chain growth of 16.2 percent and is now No.
from consideration for our ranking. A 170 on the list. Budget Blinds saw system
concept needs to have 15 percent of its sales growth of 14.6 percent and made
units in the U.S. to qualify for the Top our ranking at No. 195.
200.
Meanwhile, retailers that sell used
Other systems with an abundance of items continue to benefit from a frugal
international units fared similarly well. consumer. Plato’s Closet grew 17 percent
Circle K, the seventh largest system, last year and debuted on the ranking at
which has more than half of its stores No. 191. Sister concept, Once Upon A
outside the U.S., saw sales growth of 6.3 Child may not be far behind. It grew 9.1
Second-hand sales continued from 44
Worldwide
Sales Rank
Wendy’s
9
Westin
46
Whataburger
74
Wingate by Wyndham
188
Wingstop
164
Wireless Zone
151
Wyndham Hotels
& Resorts
113
Zaxby’s
90
percent last year.
A few companies had notably difficult years. Petland, the troubled
mall-based pet store chain that has struggled with lawsuits from franchisees and
pet advocates, had a 27.9 percent drop
in systemwide sales last year. Granite
Transformations’ sales fell 16.8 percent,
meanwhile, likely due to the brutal housing market.
October 2011 Franchise Times 47 n
Top Restaurant
200 XX
Restaurants continued from 41
traditional expansion program started almost in spite of itself.
Many years ago, a Subway operator thought it would be a good
idea to open a unit inside a convenience store. The franchisor
scoffed at the idea. The operator did it, anyway. Today, Subway
has more than 3,000 units inside convenience stores, said Don
Fertman, Subway’s chief development officer. “Sometimes, people have to show us something will work,” he said.
Subway can go into all of these locations because it is a simple concept with simple demands. It has bread-making ovens
and a small toaster to toast subs, but it needs no ventilation
like most restaurants and can fit into an area as small as 100
square feet. This gives the company flexibility on par with a
coffee shop. So it has embraced convenience as its mantra—
making its omnipresence a major selling point with customers
who need only to head in a single direction for a few minutes
before they run into a Subway.
For the most part, operators choose locations, though
Subway is frequently offered sites that it passes onto franchisees to review. The company educates operators on what makes
a good location, and provides training and assistance. The franchisor approves each location.
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COP3.75x10.25 10 11 (F):Layout 1 10/3/11 2:48 PM Page 1
Top Restaurant
Its choice of nontraditional sites, Fertman said, depends
on the situation. Sometimes a foodservice operator such as
Aramark or HMS Host will approach Subway with a specific location, such as a hospital or an airport. If a request for
proposals is required, which is common at hospitals and government-owned locations, the company headquarters will get more
involved, along with the local developer and the franchisee.
Subway analyzes the sites for a variety of factors, including
existing restaurants, if there are any, menu mix of those restaurants, how captive the audience is, etc.
Some of these nontraditional venues can be lucrative.
Airports, with their spastic bouts of massive, hungry crowds
and hospitals, with their captive audiences, can bring lengthy
lines of health-conscious customers. A Subway in one of those
locations can bring in well over $1 million a year, far more than
a traditional location.
“They can be terrific locations,” Fertman said. “If you look at
our average unit volumes on a per-store basis, college locations,
hospitals, airports, amusement parks, during their hours of
operations have higher volumes than the average Subway store.”
How much they make depends on competition from other restaurants, how captive the customer base is, and the hours of
operation. The portable nature of a sandwich also makes it an
optimal restaurant for many of these locations, which are populated by people who are in a hurry and have time constraints.
Nontraditional locations now account for 20 to 25 percent of
new locations.
Perhaps most interesting of all is that Subway isn’t remotely
close to saturating the U.S. with its ubiquitous sandwich shops,
perception of omnipresence aside.
Fertman explained how the chain opens locations in its back
yard, Milford, Connecticut, where the company headquarters
are located. The city’s population is 51,000. It has seven Subway
stores, which is about one store for every 7,300 people—by
comparison, there is one Subway for every 12,500 people in
the U.S. now. Yet Subway is adding two more restaurants along
a highway in Milford, and one in a nearby truck stop. “And
we still have room for one more at the hospital,” Fertman said.
In other words: One store for every 4,600 people. Nationwide,
that translates into 65,000 domestic Subways. Fertman didn’t
exactly mean that Subway could fit that many in the U.S., but
it does indicate that the company has a way to go before it could
be saturated. For instance, there are “food deserts” in urban
areas like New York, Philadelphia or Boston that have few restaurants, period. Let alone Subways.
“It’s market to market,” Fertman said. “The Subway train is
rolling along.”
servin’ Up
New Orleans Flavor
Bring the spirit of New Orleans
to your corner of the world.
From the founder of Popeyes®,
Copeland’s is a proven concept
that has been enjoyed across the
Southeast for 28 years.
• Authentic New Orleans
made from scratch recipes
• Cheesecake Bakery with
over 15 toppings
• Best in class
For more information on bringing the authentic
look and taste of New Orleans
to your neighborhood,
please contact Andrew Gunkler.
Andrew Gunkler • 504.620.3747
[email protected]
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