2011 Franchise Times
Transcription
2011 Franchise Times
sis aly ze n a da an an M s e i h r t Sto Jona by 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 FINANCIAL STRENGTH Another healthy benefit from Massage Envy. MASSAGE ENVY FRANCHISEE BENEFITS · Average unit volume of over 1,000,000* $ · Dues-based system provides predictable revenue model CONTACT LORI MERRALL (480) 366-4171 · [email protected] MassageEnvyFranchise.com · Strategic partnership with global skincare leader Murad® · National leader in $15 billion-a-year massage therapy industry *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 DON’T MISS A SINGLE ISSUE Subscribe or renew your subscription to Franchise Times, the franchising news and information source online at www.franchisetimes.com or by calling (800)528-3296. The News and Information Source for Franchising 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. You’ve got a friend at Franchise Times Anytime you need a friend, log onto Franchise Times’ Facebook page and find out our latest news. We post pictures from events, updates on the latest issue of the magazine and news about FT events. Check us out. http://www.facebook.com/pages/Franchise-Times-Magazine/ 38720947534 Facebook is a registered trademark of Facebook, Inc. 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. INSTEAD OF JUST SELLING A MILLION. AND YOU IN THE DRIVER’S SEAT. Smooth. Nimble. And plenty of power. A J.D. Byrider franchise offers a proven profit model — $1,041,574 three-year average annual net income from operations.* Add to that a strong support system and a market that’s experiencing exponential growth, and it’s hard to resist this road to success. Time for you to get on it. Call Mike Pearce at 800.947.4532 or log on to franchise.JDByrider.com to learn why we’re the nation’s leading franchised used car and finance business. * See Page 39 of our Franchise Disclosure Document (Item 19 – Financial Performance Representations), Byrider Franchising, LLC, 12802 Hamilton Crossing Blvd., Carmel, IN 46032; of the 12 corporately owned units that have been open at least 3 years, 6 met or 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. America’s 1st Pizza Franchise is Still the Best • An American icon since 1954 • 98% brand recognition • High growth in the fast casual category • New, exciting restaurant design • Family, fun and entertainment for all ages • Multi-Unit Development opportunities 888-444-6686 www.shakeys.com 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 BE PART OF SOMETHING BIG! 1-800-275-5200 www.drivenbrands.com Meineke Average 6 Bay Sales $632,543* Maaco Average Certified Center Sales: $1,045,000* ------------------------------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 Franchise with the World’s Leading Bagel Brand • Strategicterritory opportunitiesavailable! •“Assetlight”investment &quickbuildouttime •Award-winningmenu developmentteam •Nationalbrandpresence andprovenfranchise concept •Fastcasualbreakfast& lunchcategoryleader Contact us today: einsteinbros.com/franchising n 40 Franchise Times October 2011 ©2011 Einstein Noah Restaurant Group, Inc. 1109-464 • AttractiveSalesto InvestmentRatio 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 OPEN SESAME Look no further than our famous crust to see why Hungry Howie’s has an edge over its competition. Mouth watering seasonings are baked into the edge of our pizzas making the last bite of a Hungry Howie’s pizza just as good as the first. Baked subs, 4 different breads, chicken, and salads are the perfect accompaniments to our “crustomized” pizzas. The Hungry Howie’s difference = Flavored. Crust! 38 Years of Success • Fast Approaching 600 Stores Top Markets Now Available • Carry Out and Delivery For franchise information please contact: Franchise Sales (248) 414-3300 www.hungryhowies.com 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. Re-Sale Opportunities Available in Select Markets! Your AlphaGraphics Opportunity Awaits… The Marketing Communications Leader! • Work in a professional environment • Be involved in your local community • Increase your quality of life • Control your own future • Experience high income potential “Eight years ago I left the corporate world to own an AlphaGraphics Business Center. I made the right decision.” • Enjoy a B2B opportunity Discover your potential today, Call 800.528.4885 or email us at [email protected]. n 48 Franchise Times October 2011 Grant Richey Bountiful, Utah Learn the details and more at: www.alphagraphicsfranchise.com 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] Red Mango Franchising is the real deal. Our franchise opportunity is designed to help you build a business and make a real difference. Red Mango’s flexible platforms - self-serve, traditional (full service), kiosk or co-brand, can flourish in a multitude of settings. Red Mango stores engage the customer and stimulate the senses with a strongly identified brand experience. Voted Best Frozen Yogurt! Seattle Magazine • San Fernando Valley News • Chicago Magazine Las Vegas Life Magazine • KRON4’s Best of the Bay TV • amNew York • The Orange County Post Visit our website to explore an interactive gallery of development options. www.redmangofranchising.com | 214.302.5930 over 150 stores and growing! ©2011 Red Mango, Inc. All rights reserved. This is not an offer to sell a franchise.