2008 Franchise Times EXECUTIVE SUMMARY Worldwide Sales Total Operating Locations —Domestic —International International % Company Locations Franchise Locations Franchised % $443.8 B 403,532 280,727 122,805 30% 72,313 331,219 82% $423.6 B 405,056 284,749 120,307 30% 71,611 333,445 82% $20.2 B (1,524) (4,022) 2,498 4.76% -0.38% -1.41% 2.08% 2007 2006 Dollars Percent INSIDE THE FT 200 Sales Ranking ...................... Pages 29-43 Units Ranking...................... Pages 44-45 Alphabetical List ................ Pages 46-49 Companies on the Verge .... Pages 50-55
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2008 Franchise Times
EXECUTIVE SUMMARY
Worldwide Sales
Total Operating Locations
—Domestic
—International
International %
Company Locations
Franchise Locations
Franchised %
$443.8 B
403,532
280,727
122,805
30%
72,313
331,219
82%
$423.6 B
405,056
284,749
120,307
30%
71,611
333,445
82%
$20.2 B
(1,524)
(4,022)
2,498
4.76%
-0.38%
-1.41%
2.08%
2007 2006 Dollars Percent
INSIDE THE FT 200Sales Ranking ...................... Pages 29-43Units Ranking...................... Pages 44-45Alphabetical List ................ Pages 46-49Companies on the Verge ....Pages 50-55
28 October 2008
By Jonathan Maze
T o get a sense of how the U.S. economy performed last year, don’t just look at the Franchise Times 200
as a whole, even though its sales kept pace with overall economic trends. Instead, look for the indi-vidual companies, and the sectors in which they operate.
In those numbers are a handful of key insights, some of which you might expect: The housing market hammered real estate companies, and high gas prices buoyed conve-nience store sales.
A few others may come as a sur-prise: Hotels performed well, and casual-dining chains not only kept their places on the list, they remarkably added to their num-ber despite analysts’ near-universal views that the sector is in the dol-drums.
The list also says that the big-gest of the biggest U.S. franchisors continue to flex their muscles. The top 20 remains mostly intact from a year ago, and the two largest franchisors put even more dis-tance between them and the rest of the pack.
McDonald’s remains firmly entrenched at the top. Its system-wide sales increased 12 percent after a year in which it could seemingly do no wrong. Despite that, No. 2, 7-Eleven, managed to reduce the distance between it and the top spot by increasing its worldwide sales an astonishing 27 percent. (See our cover story for more on this brand.)
Nearly all the remaining top 10 saw sales growth, even if it wasn’t as strong as the two giants. No. 3 KFC ($1.8 billion in system-wide sales growth), No. 4 Burger King ($1.2 billion growth), No. 6
Subway ($1.3 billion growth) and eighth-ranked Circle K ($1.4 bil-lion growth) can look back on 2007 with notable fondness.
Circle K, along with 7-Eleven and another chain, ampm, all demonstrated the strong sales growth in the convenience-store sector. Led in part by high gas prices, the nation’s gas stations saw sales increase 6 percent last year, according to federal numbers—though the stores themselves note that increased gas sales don’t usu-ally result in bigger profits. Ampm, the BP-owned franchise, contin-ued its solid showing, jumping up 10 spots from 39 to 29 on the strength of systemwide sales growth of nearly 30 percent.
While they may not have had the sales strength of the conve-nience stores, many other retailers on the list grew strongly despite some burgeoning economic prob-lems that took hold at the end of the year. Among the surprises: Blockbuster was No. 13 on the list, up from No. 16 a year ago, thanks largely to 18-percent growth in systemwide revenue at a time when competition from all sides has been eating away at much of its typical customer base. Other retailers, like Matco Tools, General Nutrition Centers and The Athlete’s Foot also saw reve-nue growth. Retailers added one name to the top 100: the grow-ing floral company 1-800 Flowers, debuting at No. 82.
Some retailers could not shake the challenges facing their busi-ness. Radio Shack, which is facing a decline in mall traffic and intense competition from bigger electronic retailers, fell to 23rd from No. 20 after a 16-per-cent decline in revenue.
Elder care companies don’t
have nearly the presence on the list that retailers do—only two—but they may become more common. Or at least those on the list should continue to grow as the popula-tion ages. Home-based senior-care company Comfort Keepers moved up to 182 from 198. And sector leader Home Instead Senior Care shot up to No. 110 thanks to nearly 25-percent revenue growth.
That growth isn’t a surprise. This is: Casual dining restau-rants fared well in 2007. The list includes several new additions of casual-dining chains, such as Peter Piper Pizza (198), The Melting Pot (196), Old Chicago (195) and El Chico Café (188). And others grew substantially, led by Chili’s, now No. 21 on the 200 after sys-temwide revenue grew 15 percent to $4.3 billion—it’s now threaten-ing No. 20 Applebee’s, which saw revenues fall to $4.6 billion from $4.7 billion, for the right to call itself the nation’s largest casual-dining chain.
T.G.I. Friday’s, meanwhile, moved up to No. 33 from No. 40 thanks to an additional $318 million in revenue. Several oth-ers showed growth, even if it was more modest.
Incidentally, all four of the companies in the Top 200 that are listed as “fast-casual,” Panera Bread, McAllister’s Deli and Moe’s Southwest Grill, grew sub-stantially. And Jason’s Deli made its first appearance on the list. It had $427 million and showed up at No. 136.
There are far more (35) quick-service restaurants on the list, and once again they dominated the top spots and the biggest ones contin-ued to grow.
Yet QSR results were also mixed. Systemwide revenues at No.
15 Taco Bell fell 7.7 percent—the chain was hit hard by a combina-tion of public relations nightmares in the form of an East Coast e-coli outbreak, and competition from a fast-casual sector that is heavy on the Mexican food. Several other QSRs had more modest or stag-nant growth even though the declining economy would tend to favor them.
The economy didn’t hurt hotels last year—the effects of the econ-omy likely won’t show up until next year’s list. There’s one more hotel in the Top 200 thanks to the appearance of fast-growing Baymont at No. 191, and most of the 42 lodging companies on this year’s list boosted sales and their places among the 200. The top hotel franchise continued to be Marriott, which inched its way into the No. 10 spot with $8 billion in revenue. Among the notable jumps: Holiday Inn Express went from No. 33 to No. 26 after boosting revenue 20 per-cent; Red Roof moved up 24 spots to 122 after increasing sales 21 percent, and Travelodge moved up 27 spots to 129 after its reve-nues grew 26 percent.
On the other end of the spec-trum is the real-estate industry. Four real-estate franchisors are on the list, and each of them saw rev-enue declines last year thanks to the one of the worst housing mar-kets since the Great Depression. Century 21, which two years ago was 16th, fell nine spots to No. 31 this year. Revenues fell by nearly $1 billion at No. 12 Coldwell Banker, which still held onto its spot. Both Keller Williams (No. 41) and ERA (83) saw revenue declines, too.
Economic insightFT200 shows where the economy is going
Aaron’s is North America’s lease-to-own franchise opportunity. Ranked #49 among franchise chains in worldwide sales by Franchise Times, Aaron’s is NYSE-listed with a 50+ year proven track record and over $2 billion in systemwide revenues. We’re reinventing the way a growing and underserved market acquires necessities like furniture, appliances, electronics and computers.
#49TOP 200
AlphaGraphics
Contacts: Jenny Langfeld
Phone: 800-528-4885
E-Mail: opportunity @alphagraphics.com
Web site: www.alphagraphics.com
AlphaGraphics has been the leader in print and visual communications for more than 35 years. With over 260 locations in the U.S. and eight countries, we set the standard for solutions in printing, marketing communications and document management. At AlphaGraphics, our mission is to work with people to plan, produce and manage their visual communications, helping them to achieve their goals more confidently and effectively.
#168
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30 October 2008
Top 200 Franchise Chains by Worldwide Sales
RankPrior Rank Chain PaRent ComPany
Worldwide Sales ($m)
Domestic Units total Units
Percent Franchised
15 14 Taco Bell Corp. Yum! Brands, Inc. $6,000 5,108 5,306 75%
16 17 Sheraton Starwood Hotels and Resorts Worldwide, Inc.
$5,700 205 404 49%
17 21 Tim Hortons Tim Horton's Inc. $5,439 398 3,221 98%
26 33 Holiday Inn Express InterContinental Hotels Group $3,700 1,615 1,808 100%
27 28 Arby's Triarc Companies, Inc. $3,500 3,564 3,688 70%
28 32 Courtyard Marriott International, Inc. $3,500 693 767 60%
Worldwide sales are in millions. * Franchise Times Estimate
TOP 200
Contacts: Franchise Development Team
Phone: 888-894-2676
am/pm 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, FL, PA. 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.
ampm sites produce about 18 million transactions a month with shop sales exceeding $1.0 Billion in the U.S. in 2007. 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.
Boston Pizza Restaurants is the franchisor of a full service casual dining restaurant concept with full service sports bar. BP has been in business for over 40 years with over 350 locations accross North America. Our menu has a strong pizza-pasta focus as well as favorites such as wings, burgers, and salads. We are seeking qualified developers to franchise units all accross the US.
#87
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1 Formarly Carlson Wagonlit Travel Associates and no longer includes data from its sister company CWT
City Looks customers have come to expect the luxury of a high-end salon experience. Its stylists pride themselves on excellent customer service, knowledge of up-to-the-minute hair trends and exceptional haircutting, coloring and styling skills. Offering a full array of salon and spa services in convenient strip-mall and open-air center locations, City Looks continues to successfully serve new and loyal customers.
Checkers Drive-In Restaurants, Inc. is the largest double drive-thru restaurant chain in the United States. The Company franchises, develops, owns and operates quick-service Checkers® and Rally’s® double drive-thru restaurants. In addition to our double drive-thru building, Checkers has recently introduced end-cap and in-line versions of the concept. Both offer lobby seating areas and the end-cap features a single drive-thru window.
Checkers Drive In Restaurants & Rallys Hamburgers
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October 2008 33
RankPrior Rank Chain PaRent ComPany
Worldwide Sales ($m)
Domestic Units total Units
Percent Franchised
57 61 Days Inns Worldwide Wyndham Hotel Group $1,800 1,706 1,876 100%
58 60 Popeyes AFC Enterprises, Inc. $1,731 1,583 1,905 97%
59 64 ServiceMaster Clean The ServiceMaster Company $1,708 3,042 4,597 100%
60 68 Ramada Worldwide Wyndham Worldwide Corp. Hotel Group
Worldwide sales are in millions. * Franchise Times Estimate
Top 200 Franchise Chains by Worldwide Sales
TOP 200
Comfort Keepers
Contacts: Jim Brown
Phone: 888-801-1121
E-Mail: jimbrown @comfortkeepers.com
Web site: www.comfortkeepers.com
In just a decade, Comfort Keepers, a leading brand in the burgeoning in-home senior care industry, has grown from a single office to over 550 franchised territories in North America. With the number of seniors and adults requiring care expected to double within the next several decades, Comfort Keepers has built a system to allow franchisees to live the dream of owning a business while giving back to the community. Be part of this opportunity.
#182TOP 200
Cost Cutter’s
Contacts: Alan Story
Phone: 1-888-888-7008
E-Mail: franchiseleads @regiscorp.com
Web site: www.regisfranchise.com
Our concept responds to the universal desire: to get more, pay less and save time. Our insight into customer’s needs has helped us to become a dominant force in this lucrative value-salon sector – making Cost Cutters an extremely strong brand and a household name. Our convenient locations make us especially appealing to busy families and men. We employ expertly trained stylists who provide current hairstyles at an affordable price without the need for an appointment.
#193
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34 October 2008
RankPrior Rank Chain PaRent ComPany
Worldwide Sales ($m)
Domestic Units total Units
Percent Franchised
71 73 Curves Curves International, Inc. $1,289 7,092 10,260 100%
72 56 Express Employment Professionals
Express Services, Inc. $1,195 560 604 99%
73 82 Whataburger Whataburger, Inc. $1,101 706 706 23%
74 81 Red Robin Red Robin Gourmet Burgers $1,100 366 384 35%
75 80 Church's Chicken Arcapita, Inc. $1,092 1,196 1,609 100%
76 85 Disaster Kleenup International
DKI Services Corporation $1,081 150 221 100%
77 84 Fairfield Inn Marriott International, Inc. $1,050 529 537 100%
78 87 Buffalo Wild Wings Grill & Bar
Buffalo Wild Wings, Inc. $1,017 493 493 67%
79 86 Hooters Restaurants Hooters of America $963 383 439 72%
80 83 Motel 6 Accor North America $950 908 918 26%
83 79 ERA Realogy Corporation $900 1,275 2,971 99%
84 89 Long John Silver's Yum! Brands Inc. $800 1,081 1,118 71%
Worldwide sales are in millions. * Franchise Times Estimate
Top 200 Franchise Chains by Worldwide Sales
TOP 200
Dunkin’ Donuts
Contacts: Pam Gore
Phone: 781-737-3432
E-Mail: DunkinFranchising @dunkinbrands.com
Web site: www.DunkinFranchising.com
Dunkin’ Donuts is the country’s #1 retailer of hot and iced coffee, selling more than one billion cups of coffee a year and earning the #1 ranking for Customer Loyalty in the Coffee Category by Brand Keys for two years running. While Dunkin’ Donuts boasts more than 6,000 locations in the U.S., a majority of it’s restaurants are found in the Northeast. This is changing as Dunkin’ continues its steady and strategic expansion in the Southeast and Midwest. To learn more, visit: DunkinFranchising.com
Two Powerful Brands….Two Great Concepts…. DQ® Grill & Chill® and DQ® Orange Julius®
American Dairy Queen Corporation is actively seeking experienced food service professionals interested in building the DQ® brand. We currently have both single-unit and multi-unit opportunities available. Our franchisees enjoy the benefits of DQ’s strong brand recognition, award-winning national advertising and exceptional franchise support programs. Contact us today and discover for yourself what DQ has to offer!
#37
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October 2008 35
RankPrior Rank Chain PaRent ComPany
Worldwide Sales ($m)
Domestic Units total Units
Percent Franchised
85 SERVPRO Servpro Industries, Inc. $788 1,430 1,430 100%
Health and Wellness Specialty Retail; focusing on the Baby Boomer and 40 plus Market.
“Using our certified experts and state-of-the-art-technology, we help our clients look, feel and perform better through customized FOOT SOLUTIONS.” We have no major competitors, low labor requirements, great hours, high referral rate and high margins. We provide solutions for people with foot or related problems. You will receive an intensive 2 &1/2 week training program at our Certified Pedorthic Training Center at the Foot Solutions World Headquarters in Marietta, Georgia. Store set-up and hands on opening support, training videos, manuals and monthly conference calls are all part of the ongoing training process.
TOP 200#265
TOP 200
Fuddruckers
Contacts: Kelly Noriega
Phone: 866-691-0404
E-Mail: kelly.noriega @fuddruckers.com
Web site: www.fuddruckers.com
Fast Casual build your own “World’s Greatest hamburger” restaurant that offers a variety salads, Chicken and much more.
#153
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36 October 2008
RankPrior Rank Chain PaRent ComPany
Worldwide Sales ($m)
Domestic Units total Units
Percent Franchised
99 101 Big Boy Big Boy Restaurants International, Inc.
$618 269 362 93%
100 108 SuperCuts Regis Corporation $612 2,128 2,272 44%
FASTSIGNS® is celebrating 22 years as the industry’s leading sign and graphic franchise. Our track record in network growth, sales performance and most importantly — franchisee support — is unsurpassed. For the third year in a row, FASTSIGNS has been voted “Best in Category” by Franchise Business Review. Our network of retail stores has grown to include over 550 locations in the United States, Canada, United Kingdom, Australia and Brazil. FASTSIGNS offers the most advanced operational and marketing systems in the industry. “FASTSIGNS is a great business model, and the franchisees in the system have been professional, forthcoming and a pleasure to know. It’s truly a franchise with which you build a business for yourself but not by yourself.” Says Linda Fong - FASTSIGNS owner in Oakland, CA and Hayward, CA
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Free for You, Free for your Zee.
Our seasoned credit guides and our online network match your Zees
with over 180 Lenders.
To get started or for more information visit: www.SmallBusinessLoanExchange.com | or call us at: (888) 672-6730
Worldwide sales are in millions. * Franchise Times Estimate
Top 200 Franchise Chains by Worldwide Sales
O ver a l l , howe ve r, t he Franchise Times 200 managed to keep pace with the economy. Worldwide sales for the group grew nearly 4.8 percent, exceed-ing the 4.2-percent growth in U.S. retail sales.
Yet a bigger percentage of those sales are coming from outside the U.S., continuing a recent trend. While the total number of units in the 200 actually fell last year, the number of domestic units fell much faster, by 1.4 percent, while the number of international units remained steady.
Indeed, several of the largest franchisors on the Top 200 saw domestic unit declines, includ-ing 7-Eleven, Ace Hardware and the Yum! Brands-owned KFC and Pizza Hut. Nevertheless, the nation’s largest franchise by domestic units continues to find places to build stores: No. 6 Subway added more than 400 units in the U.S. last year and now has 21,195.
The numbers suggest that franchisors are finding the U.S. market saturated and increasingly competitive, and a growing num-ber of even smaller franchisors are relying on overseas markets for growth. Future Franchise Times 200s could very well see more companies like No. 154 Kwik Kopy Worldwide, which has more international locations (297) than U.S. units (287).
But that doesn’t mean some overseas companies aren’t find-ing some success here. Canadian import Tim Horton’s had 14.5-percent revenue growth to vault into the top 20, where it is the 17th-largest franchise. On the other side of the border, Pollo Campero makes its first appear-ance in the top 200, coming in at No. 149 thanks to $365 million in systemwide sales.
Insight continued from 28
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38 October 2008
RankPrior Rank Chain PaRent ComPany
Worldwide Sales ($m)
Domestic Units total Units
Percent Franchised
122 146 Red Roof Inns Accor North America $475 345 345 36%
123 131 Uno Chicago Grill Centre Partners Mgt., LLC $473 207 213 44%
124 134 Pet Supplies Plus Pet Supplies Plus $473 230 230 100%
125 107 Sylvan Learning Educate, Inc. $469 1,185 1,285 83%
Celebrating our 35th Anniversary ,serving great pizza since 1973, we have expanded to over 575 stores in 25 states. Our flavored Crust pizza is the reason for our appeal and the foundation of our success. We have combined the right ingredients with 35 years of successful experience to create a top-notch, growth orientated business. Nationwide multi-store markets available.
#175
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Top 200 Franchise Chains by Worldwide Sales
RankPrior Rank Chain PaRent ComPany
Worldwide Sales ($m)
Domestic Units total Units
Percent Franchised
136 Jason's Deli Deli Management, Inc. $427 177 177 44%
137 138 Valpak Direct Marketing Cox Enterprises, Inc. $427 184 192 96%
Worldwide sales are in millions. * Franchise Times Estimate
Top 200 Franchise Chains by Worldwide Sales
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October 2008 41
Ace is the place for ownership!
Learn more about our $195,000 new store incentive! Go to: www.myace.comBusiness Development Team: 630-990-6900
It’s the Ace Hardware ownership difference. You’re the owner...we work for you!
Why Ace?• World Class Brand ... Globally Trusted, Locally Embraced
• True Ownership ... A Retailer Owned Company
• Rock Solid Foundation – Fad Proof Future
We offer qualified individuals* a $195,000 incentive per store!
27_107357_0108
“We opened our first store, Logan
Hardware, in 2003. That year we
exceeded our forecast by 20% and
generated more than 1.5 million in
sales from over 100,000 customers.
Since then, we’ve added three stores
and continue to build wealth through
serving communities in need of
convenient home improvement
solutions.”
Gina Schaefer & Marc Friedman
Ace Hardware Multi-Store Owners
Washington, DC
*Qualified individuals or equity groups must be able to meet liquid capital requirements of $250,000 per store.Store must exceed 10,000 square feet of retail space. Certain other requirements apply.
Prosper with the fastest growing pizza company in the US. Even now wonderful opportunities exist. Marco’s Pizza is in the midst of a nationwide rollout and welcomes qualified individuals and/or groups who want to join our family and be on the ground floor of a truly rewarding franchise opportunity. Marco’s Pizza, is interested in experienced Franchisees (single and multi- units), Operators, and Area Representatives who want to control an entire market/DMA. Explore the Marco’s Pizza franchise opportunity, call: 800-262-7267.
Through its network of over 120 local regional support offices, Jani-King provides training, support and unlimited opportunity to its more than 13,000 franchisees across the globe. Founded in 1969, Jani-King has steadily grown to become the world’s largest commercial cleaning franchise company. It’s this experience and support that allows Jani-King to remain at the top of its industry and continue to grow every year.
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Top 200 Franchise Chains by Worldwide Sales
RankPrior Rank Chain PaRent ComPany
Worldwide Sales ($m)
Domestic Units total Units
Percent Franchised
190 191 Huddle House Griddle Holdings, Inc. $230 433 433 96%
191 216 Baymont Franchise Systems Wyndham Hotel Group $225 210 210 100%
192 208 Max & Erma's Restaurants Max & Erma's Restaurants, Inc. $225 107 107 26%
193 192 Cost Cutters Regis Corporation $221 872 872 63%
194 Wireless Zone ATI $221 259 259 100%
195 204 Old Chicago Rock Bottom Restaurants, Inc. $220 94 94 33%
196 201 The Melting Pot The Melting Pot Restaurants, Inc. $220 129 129 97%
197 196 Western Sizzlin Western Sizzlin Corp $212 117 117 95%
198 Peter Piper Pizza Peter Piper, Inc. $208 96 134 72%
199 223 Wingstop Wingstop Restaurants, Inc. $207 351 351 95%
We’ve been serving great tasting pizzas for over 30 years. Our 94 restaurants currently operate in 22 states. We also feature great tasting pastas, calzones, burgers, sandwiches and more. Our extensive and active bar features 30 beers on tap and another 80 varieties in bottles. Our food to beverage mix is 60%-40%. Our overall C.O.G.S is 25%. We allow conversions and end caps and we have great territories still available across the United States
#195
Old Chicago
TOP 200
Mellow Mushroom Contacts: Melissa McFarlin,
New Franchise Development
Phone: 404-505-2806
E-Mail: melissa @mellowmushroom.com
Web site: www.mellowmushroom.com
Sprouting in Atlanta in 1974, Mellow Mushroom currently has 89 restaurants (located throughout 12 states) in its growing collection. A menu of pizzas, hoagies, calzones and salads is served in a fun and funky atmosphere. Free-standing and end cap locations, ranging from 3500 - 6000 square feet accepted for site submittal. Individual (non territory) locations available across the United States. Own Your Slice of the Pie with Mellow Mushroom.
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44 October 2008
1 7-Eleven 33,818 2 McDonald's 31,377 3 Subway 28,546 4 H&R Block Tax Services 14,547 5 KFC 13,639 6 Jani-King 12,209 7 Burger King 11,395 8 Pizza Hut 11,222 9 Curves 10,260 10 Coverall Cleaning Concepts 9,201 11 Domino's Pizza 8,624 12 CENTURY 21 8,321 13 Dunkin' Donuts 7,988 14 Blockbuster 7,829 15 Jackson Hewitt Tax Service 6,763 16 Circle K 6,712 17 Wendy's 6,645 18 RadioShack 6,107 19 Baskin Robbins 5,874 20 Dairy Queen 5,695 21 Taco Bell Corp. 5,306 22 Quiznos 5,214 23 General Nutrition Centers 4,801 24 Ace Hardware Store 4,630 25 ServiceMaster Clean 4,597 26 Coldwell Banker Real Estate 3,913 27 Arby's 3,688 28 Sonic 3,343 29 Tim Hortons 3,221 30 Papa John's 3,208 31 ERA 2,971 32 ampm 2,854 33 Great Clips 2,647 34 Comfort Inn & Suites 2,467 35 Midas Auto Service Experts 2,464
36 SuperCuts 2,272 37 Jiffy Lube 2,165 38 Jack in the Box 2,142 39 Super 8 Motels 2,095 40 Applebee's 2,080 41 Hardee's 1,926 42 Popeyes 1,905 43 Days Inns Worldwide 1,876 44 Holiday Inn Express 1,808 45 Church's Chicken 1,609 46 Denny's 1,546 47 Aaron's Sales & Lease Ownership 1,510 48 Matco Tools 1,505 49 Hampton Inn & Hampton Inn & Suites 1,478 50 Cold Stone Creamery 1,437 51 SERVPRO 1,430 52 Chili's Grill & Bar 1,418 53 Fantastic Sams Hair Salons 1,389 54 Holiday Inn Hotels & Resorts 1,381 55 IHOP Restaurants 1,367 56 Chick-fil-A 1,356 57 Sylvan Learning 1,285 58 Blimpie Subs and Salads 1,237 59 Quality Inn and Quality Suites 1,210 60 Panera Bread 1,167 61 Carl's Jr. 1,141 62 Long John Silver's 1,118 63 Papa Murphy's 1,067 64 Budget Blinds 1,045 65 Sbarro the Italian Eatery 1,030 66 Minuteman Press 981 67 Sign-A-Rama 953 68 Auntie Anne's Pretzels 944 69 Ruby Tuesday 933 70 Meineke Car Care Centers 931
71 Results! Travel 924 72 Motel 6 918 73 T.G.I.Friday's 906 74 Cost Cutters 872 75 Econo Lodge 870 76 Ramada Worldwide 865 77 PostNet 845 78 Checkers Drive In Restaurants & Rallys Hamburgers 830 79 Home Instead Senior Care 803 80 Courtyard 767 81 Cinnabon, Inc. 723 82 Spherion Staffing and Recruiting 721 83 Jamba Juice 707 84 Whataburger 706 85 Jenny Craig 699 86 Keller Williams Realty 672 87 Proforma 650 88 The Athlete's Foot 637 89 La Quinta Inns & Suites 633 90 Jimmy John's Gourmet Sandwich Shops 632 91 Dollar Rent a Car 629 92 A & W All-American Food Restaurants 625 93 CiCi's Pizza 622 94 Express Employment Professionals 604 95 Comfort Keepers 599 96 Allegra Network 593 97 Roto-Rooter 587 98 Kwik Kopy Printing and Business Centers 584 99 Hungry Howie's Pizza 574 100 Captain D's Seafood Kitchen 565 101 Travel Leaders 555 102 Residence Inn 546 103 Big O Tires 541 104 FASTSIGNS 538
Top 200 Franchise Chains by Units*
TOP 200
Papa Murphy’s Take ‘N’ Bake Pizza Contacts: Rhonda McGrew,
Papa Murphy’s is 5th largest pizza company in the US with over 1,100 stores. We offer our customers the unique experience of watching their pizza being made fresh before them and then taken home to bake to perfection. 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. We do all this while offering the lowest investment of any national pizza chain.
Take the First Step! PostNet, the largest and fastest growing privately held company in our industry, has created one of today’s most exciting global franchise opportunities. PostNet centers are high-tech one-stop convenience centers offering digital B&W/color copies, printing, fax, computer/Internet services, mailbox rentals, and much more. Learn more about PostNet today by visiting www.postnetfranchise.com or calling 1-800-338-7401.
#185
October 2008 45
105 Fairfield Inn 537 106 Friendly's 522 107 Marriott Hotels, Resorts & Suites 520 108 Del Taco 516 109 Round Table Pizza 507 110 Hilton 505 111 Buffalo Wild Wings Grill & Bar 493 112 Travelodge Hotels 490 113 Perkins Restaurant & Bakery 485 114 Golden Corral Family Restaurants 482 115 Maaco Auto Collision Repair and Auto Painting 472 116 Howard Johnson International 470 117 Krispy Kreme 449 118 Hooters Restaurants 439 119 Sir Speedy Printing & Marketing Services 437 120 Country Inn & Suites 436 121 Huddle House 433 122 Taco John's 426 123 Qdoba Mexican Grill 423 124 Zaxby's 409 125 Tuffy/Car-X Auto Service Centers 406 126 Sheraton 404 127 Radisson Hotels 398 128 CARSTAR 397 129 Bojangles' Restaurants Inc. 396 130 El Pollo Loco 389 131 Moe's Southwest Grill 385 132 Red Robin 384 133 Krystal Company 382 134 Play It Again Sports 374 135 Culver's Frozen Custard & Butterburgers 372 136 Sleep Inn 370 137 Big Boy 362 138 Schlotzsky's 357
139 Boston's The Gourmet Pizza 355 140 Wingstop 351 141 Hilton Garden Inn 349 142 Mr. Rooter 348 143 Red Roof Inns 345 144 Sizzler Restaurants 304 145 Microtel Inns & Suites 301 146 The Goddard School 300 147 Crowne Plaza Hotels & Resorts 299 148 Stanley Steemer Carpet Cleaner 294 149 Labor Finders 287 151 Pollo Campero 282 150 Clarion Inn and Clarion Suites 282 152 Unishippers 276 153 Village Inn Restaurants 264 154 AlphaGraphics 262 155 Wireless Zone 259 156 Fuddruckers 246 157 McAlister's Deli 246 158 Johnny Rockets 245 159 One Hour Heating & Air Conditioning 237 160 Pet Supplies Plus 230 161 Paul Davis Restoration 228 162 Disaster Kleenup International 221 163 Homewood Suites by Hilton 218 164 Uno Chicago Grill 213 165 Baymont Franchise Systems 210 166 Valpak Direct Marketing Systems 192 168 Petland 189 167 Embassy Suites Hotels 189 169 Tony Roma's 186 170 Doubletree 183 171 Primrose Schools 181 172 Springhill Suites 177 173 Jason's Deli 177
174 Famous Dave's 164 175 ProSource Wholesale Floorcoverings 163 176 Westin 158 177 Candlewood Suites 158 178 Wingate by Wyndham 156 179 InterContinental Hotels & Resorts 149 180 Renaissance 141 181 Towneplace Suites 141 182 Linc Network 138 183 Marie Callendar's Restaurants 136 184 Peter Piper Pizza 134 185 Four Points by Sheraton 130 186 JD Byrider 130 187 The Melting Pot 129 188 Staybridge Suites 122 189 El Chico Café 119 190 Ruth's Chris Steak House 118 191 Western Sizzlin 117 192 Cruise Holidays 115 193 1-800-Flowers 109 194 Slumberland Furniture 108 195 Max & Erma's Restaurants 107 196 Houlihan's 96 197 Old Chicago 94 198 Wyndham Hotels & Resorts 91 199 Hawthorn Suites 91 200 G.J. Gardner Homes 90
The neighborhood has never looked better! Convenience, value pricing, great service and friendly stylists are the cornerstone of the Pro-Cuts brand. Pro-Cuts targets customers where they live and work by offering locations and a salon culture that is rooted in “the neighborhood.” Pro-Cuts offers quality service, a comfortable atmosphere, and a community connection that generates customer loyalty and repeat business.
Qdoba is a national leader in fast- casual Mexican with over 445 restaurants in 40 states (106 corp & 339 franchised). The company has attracted successful multi-brand operators from some of the most prominent franchise concepts in the country. With 36 consecutive quarters of year-over-year same store sales growth and attractive unit- economics, our company is poised to continue our strong growth (75+ units opened in 2008). Multi-unit development territories available nationally.
The Supercuts brand is the iconic name in the value salon category, delivering a current look to its clientele at an affordable price. Through building a relationship with its customers, Supercuts knows what guys want and continues to build loyalty with new and repeat customers. Stylists build on their education with a highly efficient haircutting technique that’s proprietary to Supercuts. The education continues with ongoing training in the latest cut, color and other services that keep stylists excited about the brand. The focus on men, specialized training and over 2100 convenient locations make Supercuts one of the fastest growing brands in the business.
#100TOP 200
Sylvan Learning Centers Contacts: Greg Helwig
Phone: 1-800-284-8214
E-Mail: sylvanfranchise @educate.com
Web site: www.sylvanfranchise.com
Join Sylvan, the leader in the growing supplemental education market with almost 30 years of experience and nearly 1,200 centers located throughout North America. We offer personalized instruction available in-center, online and at home. Now is an exciting time to join Sylvan—both new territories and existing centers are available in major metropolitan markets including: Atlanta, Boston, Las Vegas, Memphis, Philadelphia, Pittsburgh and more. Learn how joining Sylvan can make a difference in your life- and in the lives of children. Call 800-284-8214 or visit www.sylvanfranchise.com.
#125
October 2008 47
National Retail Properties, Inc. (NYSE:NNN), a $2.5 billion Real Estate Investment Trust, offers 100% real estate funding for new store growth. Our “Split-Funded” program allows franchisees and franchisors to develop new locations without investing valuable capital in the real estate. NNN also assists in funding acquisitions of companies that involve real estate and we can help franchisees extract dormant capital from existing real estate holdings.
Please call Joseph Ciardiello 866-650-1544 or visit www.nnnreit.com
Methodology questions on the Top 200 rankingHow does a brand qualify for the Franchise Times 200 ranking?
A franchise brand must meet certain qualifications: A minimum of 20 percent of the company’s total units must be operated by franchisees. And, the brand must be headquartered in the United States, or have a significant US presence.
What are systemwide sales?
Systemwide sales consist of the total 2007 sales of the brand from both company and franchisee-operated stores. For example, the systemwide sales of
McDonald’s include
the sales from all of the restaurants in the entire system—both company and franchised.
In the FT 200 list, more than one company has the same sales, but are ranked differently. How do you decide who is ranked first?
In the event of a tie in the systemwide sales of two or more companies, the company with the most units ranks highest.
My company’s revenue is greater than what is shown on the ranking.
This may be due to the fact that your company
may have other operations not directly related to franchising. In the Franchise Times 200 ranking, we tallied only the annual systemwide sales derived from the business operated by the franchisor and its franchisees.
My company should qualify and did not show up on the list. Or, my firm is listed, but the number of units or sales estimates are not accurate.
Two things may have happened. First, we may have neglected you simply by accident or your company may have ignored our repeated pleas for data.
Secondly, if you did not send us a confirmation, we estimated the sales. We may have estimated high or low. Let us know next time!
How did you pull all of this data together?
Our research team identified the franchise companies that might qualify. The team contacted companies to find the information or located it on the Internet and through 10-Ks, annual reports or Web sites. They then went to work calling companies to confirm the data or make estimates as needed.
TOP 200
Taco John’s International, Inc. Contacts: Brett Miller
Taco John’s new look supports their brand icons like Taco Tuesday® and Potato Olés®. Stone-accented buildings reflect the quality of the food inside. Comfortable dining rooms feature fresh salsa bars where patrons customize their favorite menu items. The re-imaging program for Taco John’s over 400 restaurants has customers and operators raving. A contemporary new image, hometown hospitality, and bold fresh flavors, that’s The Fresh Taste of West-Mex®.
#170At Yum!, we connect successful professionals to brands people crave: KFC, Pizza Hut, Taco Bell, Long John Silver’s and A&W! Your drive and your team combined with our brands can be a powerful combination!
We want to help you leverage your experience to become a multi-unit franchisee with some of the biggest brands in the restaurant industry.
Our proven process supports you every step of the way with development experts, business coaches and a peer network of more than 1,200 experienced franchisees, all part of what we call the Yum! Value Network.
Yum! Brands is committed to franchising with over 80% of our stores owned by independent franchise operators. We’re actively seeking operators with the vision and capability to open multiple restaurants.
With 35 franchise professionals on staff, the iFranchise Group has over 450 years of franchise experience. In fact, 98 of the world’s top 200 franchisors have worked
with iFranchise Group’s consultants.
iFranchise Group . . .
F R A N C H I S E C O N S U L T A N T S
708-957-2300 · www.ifranchisegroup.com
Our consultants specialize in strategic planning for franchise growth, franchise organizational audits, franchise system best practices and training program development for both start-up and established franchisors.
Call us today to discuss how we can help.
Our People. Our Expertise.
RankPrior Rank Chain PaRent ComPany
Worldwide Sales ($m)
Domestic Units total Units
Percent Franchised
201 207 Beef O'Brady's Family Sports Pub
Family Sports Concepts $203 239 239 100%
202 202 Two Men and A Truck Two Men and a Truck International, Inc.
$198 173 178 96%
203 231 Martinizing Dry Cleaning Martin Franchises Inc. $195 307 557 100%
242 Sport Clips Sport Clips, Inc. $117 526 526 98%
243 ColorTyme Rent-A-Center, Inc. $114 210 210 100%
244 245 Rocky Mountain Chocolate Factory
Rocky Mountain Chocolate Factory, Inc.
$113 293 334 99%
Worldwide sales are in millions. * Franchise Times Estimate
October 2008 53
Spotted in St. Tropez.
RUMOR#42 HOT DISH ADVERTISING
found the elusive Loch Ness Monster.
Lead generation from the agency that’s franfocusedSM and brandfocused. 612-341-3100 www.hotdishad.com
Yes and no. Although we have not actually produced photographic evidence of the existence of a mythological beast, we are masters of tracking down things that are even harder to fi nd. Namely, prospective franchisees. With nearly a decade of experience, Hot Dish understands how messaging, media strategy and grass-roots ideas need to work together to see results. So good leads surface, no matter how elusive they are.
Up & Comers: 100 Companies on the Verge
RankPrior Rank Chain PaRent ComPany
Worldwide Sales ($m)
Domestic Units total Units
Percent Franchised
245 247 First Choice Haircutters Regis Corporation $112 444 444 41%
246 Mellow Mushroom Home-Grown Industries of Georgia
$112 86 86 98%
247 Nathan's Famous Inc. Nathan's Famous Inc. $111 211 230 97%