Top Food Franchises 2016
Ratings and reviews of the Best Franchise Opportunities by their own franchisees.
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SPECIAL INDUSTRY REPORT<br />
FranchiseBusinessREVIEW<br />
Ratings and Reviews of the Best Franchise Opportunities by Franchisees<br />
www.FranchiseBusinessReview.com<br />
<strong>2016</strong><br />
Roy Bruno (right) runs his<br />
PJ’s Coffee of New Orleans<br />
franchise in New Orleans, LA<br />
with the help of his brother<br />
Stephen Bruno Jr. (left). <br />
TOP FOOD FRANCHISES<br />
Rated by the Franchisees Who Own Them<br />
How to Select<br />
the Best <strong>Food</strong><br />
Franchise For You<br />
PAGE 9<br />
<strong>Top</strong> <strong>Food</strong> <strong>Franchises</strong><br />
with the MOST<br />
Satisfied Franchisees<br />
PAGE 10<br />
Trends<br />
in <strong>Food</strong><br />
Franchising<br />
PAGE 8
“ I WAS NEVER<br />
NERVOUS.<br />
NOT EVEN<br />
A LITTLE.”<br />
–BRIAN CRUMLEY<br />
Multi-unit Franchise Partner<br />
Donatos was named one of 2015’s Best Franchise Deals by QSR Magazine,<br />
with an AUV over $1,058,263 net sales.<br />
As a Donatos franchise partner, you get a great brand and proven product with a 50-year history of growth<br />
and success. Along with all the support you need to build a successful business. Talk to us. Get details.<br />
Be a piece of something bigger.<br />
For more information, visit<br />
or call (248) 647-1989.<br />
DONATOSPIZZAFRANCHISE.COM
We’re one of the<br />
fastest growing sports<br />
restaurant chains<br />
12.5% AUV GROWTH FOR<br />
9 YEARS IN A ROW<br />
Learn more at ownabuffalo.com<br />
or give us a call at 513-680-2247<br />
564 OLD STATE RT. 74, CINCINNATI, OH 45244
SPECIAL REPORT: <strong>Top</strong> <strong>Food</strong> <strong>Franchises</strong><br />
Features //<strong>2016</strong><br />
7<br />
13<br />
14<br />
5 Letter from the Editor<br />
Americans Are Cooking Less<br />
7 <strong>Food</strong> <strong>Franchises</strong> Serve Up<br />
a Variety of Opportunities<br />
A Look at the <strong>Top</strong> Brands and What it Takes to Be Successful<br />
10 THE LIST<br />
Best of the Best: <strong>Top</strong> <strong>Food</strong> <strong>Franchises</strong><br />
16 Marketplace<br />
More on the award-winning<br />
franchise opportunities for <strong>2016</strong><br />
+<br />
Reviews, interviews, satisfaction awards<br />
and more resources are available at:<br />
www.FranchiseBusinessReview.com<br />
BE YOUR OWN BOSS.<br />
Choose your franchise business today from<br />
ones rated highest by the franchisees who own them.<br />
Visit FBR50.com<br />
For more information on this report, visit: www.FranchiseBusinessReview.com | 3
"Denny's is an iconic American brand that<br />
delivers on the American dream. When I<br />
started with Denny's at 16, I was a food<br />
server. Today, I'm one of the largest<br />
franchisees in the system. If that's not the<br />
American Dream, I don't know what is."<br />
Dawn Lafreeda<br />
Denny's Franchisee, Owner/Operator of over<br />
70 restaurants in 6 states<br />
"As a new franchisee, I was drawn to the<br />
leadership position Denny's has in family<br />
dining. I love the food, the people and the<br />
growth potential. No other brand has this<br />
much to offer!"<br />
Donnell Thompson<br />
Denny’s franchisee, former McDonald’s<br />
franchisee, 12-year NFL veteran<br />
“As a multi-concept owner with over 200<br />
restaurants, I am very happy with the<br />
performance of Denny's since I became<br />
a franchisee. Denny's is the perfect<br />
complement to my restaurant portfolio."<br />
Anil Yadav<br />
Largest Jack in the Box franchisee in the U.S.<br />
and Largest Denny's franchisee in California<br />
Denny’s is celebrating over 60 years of growth and<br />
today, more than 90% of Denny’s restaurants are<br />
owned and operated by franchisees. Our commitment<br />
to long-term market share growth is supported by<br />
the industry’s leading program offering up to<br />
$1 MILLION OF INCENTIVES FOR<br />
NEW & EMERGING MARKETS.<br />
BE A PART OF<br />
AMERICA'S DINER.<br />
BECOME<br />
TODAY'S FRANCHISEE.<br />
DENNYSFRANCHISING.COM 800 304 0222<br />
©<strong>2016</strong> DFO, LLC 203 East Main Street, Spartanburg, SC 29319. This advertisement is not an offer to sell a franchise. The savings estimate of up to $1 million is based on the potential savings of developing, opening<br />
and operating six Denny's restaurants under the New and Emerging Markets incentive program, in comparison to developing, opening and operating six Denny's restaurants without the incentive program. The<br />
estimated savings include reduced royalty fees calculated using the $1,550,000 average unit volume of franchised Denny's restaurants nationwide in 2015, as published in Item 19 of Denny's <strong>2016</strong> Franchise<br />
Disclosure Document. Of the nationwide franchised outlets whose data was used in arriving at the 2015 franchised restaurant sales figure, 613 franchise units, or 44% of the franchised restaurants, actually attained<br />
or surpassed the indicated sales results. Individual restaurant sales performance will vary. There is no assurance that you will do as well or achieve the estimated potential savings. You must accept this risk. See<br />
Denny's Franchise Disclosure document for complete program details, including restrictions such as applicable geography and development time frames. Limited time only.
SPECIAL REPORT: <strong>Top</strong> <strong>Food</strong> <strong>Franchises</strong><br />
Americans Are Cooking Less<br />
My colleagues and I probably order take-out once or twice weekly whether for lunch or to take<br />
home as dinner for our families. We are clearly part of the trend of fewer people cooking at<br />
home. Men and women are spending less time at the stove. On average, the genders combined<br />
spend roughly 110 minutes cooking each day, compared with about 140 minutes per day in the<br />
1970s and closer to 150 minutes per day in the 1960s. 1<br />
Americans cooking less at home is fantastic news for the food franchise industry, which provides<br />
a strong business opportunity to many. Instead of having to start a food concept from<br />
scratch, food franchises deliver a proven successful business model and brand reputation that<br />
people trust.<br />
When it comes to selecting a top performing food franchise, the number of options can be<br />
overwhelming. One of the best places to start is the list on page 10 of this report. Our annual<br />
<strong>Top</strong> <strong>Food</strong> <strong>Franchises</strong> report features only franchises ranked highly by those who know best—<br />
the franchisees who own them. Many of these brands offer investors a wealth of information on<br />
their systems including what their training, culture, and financial performance is like by sharing<br />
their full franchisee satisfaction reports at www.FranchiseBusinessReview.com.<br />
Instead of having to<br />
start a food concept<br />
from scratch, food<br />
franchises deliver a<br />
proven successful<br />
business model and<br />
brand reputation that<br />
people trust.<br />
Happy franchising is informed franchising,<br />
Emma Pearson, Editorial Director<br />
1 <br />
Trends in US home food preparation and consumption: analysis of national nutrition<br />
surveys and time use studies from 1965–1966 to 2007–2008 by Smith, Wen Ng, and Popkin.<br />
Franchise Business Review is the leading national franchise market research<br />
firm that performs independent surveys of franchisee satisfaction and franchise<br />
buyer experiences. Before you invest in any franchise opportunity, read our reports<br />
to get the facts from those who know best—franchisees. We publish six annual<br />
research reports: Guide to Today’s <strong>Top</strong> <strong>Franchises</strong>, <strong>Top</strong> Senior and Child Services<br />
<strong>Franchises</strong>, <strong>Top</strong> Low-Cost and Home Based <strong>Franchises</strong>, <strong>Top</strong> Home Services<br />
<strong>Franchises</strong>, <strong>Top</strong> <strong>Food</strong> <strong>Franchises</strong>, and <strong>Top</strong> <strong>Franchises</strong> for Veterans. All are available<br />
for free at FranchiseBusinessReview.com. To see our list of the top 200<br />
franchises according to the franchisees who own them, visit FBR50.com.<br />
Eric Stites, CEO & Managing Director<br />
Michelle Rowan, President & COO<br />
Emma Pearson, Editorial Director<br />
C.J. Fleck, Senior Web Developer<br />
Michael Kupfer, Online Marketing Manager<br />
Ali Forman, B2B Marketing Manager<br />
Nicole Kenney, Client Services Manager<br />
Linda Lorrey, Client Consultant<br />
Amy LaLime, Office Manager<br />
Margot Doering, Accounting<br />
The Secret Agency, Design and Production<br />
Call us at 866-397-6680<br />
ABOUT OUR RESEARCH<br />
Participation in Franchise Business Review’s franchisee satisfaction<br />
research is free for all North American franchise systems with<br />
a minimum of 10 franchisees. For this report, we surveyed<br />
approximately 5,800 franchisees representing 89 franchise brands<br />
between November 2015 and April <strong>2016</strong>. We asked each franchisee to<br />
answer 33 benchmark questions ranking their franchise in the areas of<br />
financial opportunity, training and support, leadership, operations and<br />
product development, core values (e.g., honesty and integrity of<br />
franchisor), general satisfaction, and the franchisee community. We also<br />
asked them to answer an additional 16 questions about their market<br />
area, demographics, business lifestyle, overall enjoyment running their<br />
franchise, and role in the franchisee community. From this data, we<br />
identified our list of top food franchises with the highest franchisee<br />
satisfaction. Surveys to determine the <strong>Top</strong> <strong>Franchises</strong> for 2017 are<br />
underway. If you are a franchisor and would like to participate, please<br />
call 866-397-6680 or contact info@FranchiseBusinessReview.com.<br />
For more information on this report, visit: www.FranchiseBusinessReview.com | 5
SPECIAL REPORT: <strong>Top</strong> <strong>Food</strong> <strong>Franchises</strong><br />
Annya Becerra (right) clearly enjoys owning her Kona Ice franchise of South Orem/Provo in UT.<br />
<strong>Food</strong> <strong>Franchises</strong> Serve Up<br />
a Variety of Opportunities<br />
A Look at The <strong>Top</strong> Brands and What it Takes to Be Successful<br />
<strong>Food</strong> franchises have come a long way since<br />
Ray Kroc opened his first McDonald’s in 1955.<br />
They are everywhere! At highway rest stops,<br />
off of most major roads, in mall food courts, in<br />
strip malls, in airports, in office complexes, on<br />
college campuses, in large cities, and in small<br />
towns. <strong>Food</strong> franchise concepts will always<br />
be in demand since eating is a necessity and<br />
Americans are increasingly not cooking at<br />
home. In March 2015, sales at restaurants and<br />
bars surpassed those at grocery stories for the<br />
first time since the Commerce Department<br />
started collecting data in 1992. Between the<br />
mid-1960s and late 2000s, low-income households<br />
went from eating at home 95 percent<br />
of the time to only 72 percent of the time,<br />
middle-income households went from eating<br />
at home 92 percent of the time to 69 percent<br />
of the time, and high-income households went<br />
from eating at home 88 percent of the time to<br />
only 65 percent of the time. 2<br />
2 <br />
Trends in US home food preparation and consumption: analysis of national nutrition surveys and time use<br />
studies from 1965–1966 to 2007–2008 by Smith, Wen Ng, and Popkin.<br />
3 <br />
Franchise Business Economic Outlook for 2015, International Franchise Association Educational Foundation<br />
This explains why in <strong>2016</strong>, the 261,923<br />
food-related franchises (quick service restaurants,<br />
full service restaurants and retail food)<br />
account for an estimated $336 billion of<br />
economic output in the United States. In addition,<br />
food franchises employ 8,581,300 people. 3<br />
If the variety of food franchises seems<br />
overwhelming when it comes to choosing the<br />
best option for you, don’t worry. This report<br />
sheds light on the different kinds of food<br />
franchises and how to go about selecting one<br />
that best meets your criteria. In addition, it<br />
provides insight into what it’s like to be a food<br />
franchisee as well as the only industry list<br />
For more information on this report, visit: www.FranchiseBusinessReview.com | 7
SPECIAL REPORT: <strong>Top</strong> <strong>Food</strong> <strong>Franchises</strong><br />
Average Initial Start-Up<br />
Investment for Concepts<br />
Full Service $1,200,000<br />
QSR/Fast Casual $430,500<br />
Other $117,000<br />
A franchise comes with a proven system.<br />
You’ll immediately receive training, checklists,<br />
forms, procedures, marketing and more.<br />
of top brands broken out by segment (page 10)<br />
based solely on franchisee satisfaction and<br />
performance.<br />
SHOULD YOU INVEST IN A<br />
FRANCHISE VS. STARTING<br />
A FOOD CONCEPT FROM SCRATCH<br />
Why do so many entrepreneurs who want to<br />
build a business around food enter franchising?<br />
“I am a huge fan of the franchise business<br />
model,” says Roland Spongberg whose<br />
company, WKS Restaurant Group, owns and<br />
operates 25 Denny’s in California, Nebraska,<br />
Missouri, and Illinois. “It allows us to focus on<br />
doing a few basic things very, very well, while<br />
leveraging the franchisor’s expertise to achieve<br />
sustained successful growth of our business.<br />
For example, we know a lot about managing<br />
teams of people to deliver excellent guest<br />
experiences every day, but do not need to be<br />
experts on menu or product development,<br />
advertising, public relations, or franchising<br />
law, etc. since Denny’s corporate team is.”<br />
Spongberg says his business is a family one.<br />
Several of his sons and other family members<br />
are equity members and have significant<br />
management responsibilities.<br />
The following is a break down of some of<br />
the advantages entering into the food business<br />
via franchising instead of implementing an<br />
idea from scratch offers.<br />
Get out of the startup phase faster. A franchise<br />
comes with a proven system. You’ll<br />
immediately receive training, checklists, forms,<br />
procedures, marketing and more. This helps<br />
you get out of the unprofitable startup phase<br />
and on the path to profitability faster than if<br />
you started a concept on your own. Keep in<br />
mind that you’ll still have costs such as loans,<br />
franchise fees, business expenses, payroll and<br />
other overhead, so just like with any small<br />
business you should thing long-term success.<br />
You’ll receive valuable guidance. Members<br />
of the franchisor’s corporate team are responsible<br />
for helping you be successful so will assist<br />
you with any challenges you may have.<br />
In addition, you’ll be able to tap into the<br />
experience of your fellow franchisees. Many<br />
franchisors also communicate best practices<br />
to franchisees on a regular basis as well as at<br />
annual meetings.<br />
Deliver on consistency. The franchisor’s<br />
proven and clear concept will make it possible<br />
for your team to consistently meet customers’<br />
expectations. Consistency is essential when it<br />
comes to building a good reputation as well as<br />
repeat business.<br />
Increase the likelihood of attracting and<br />
keeping good employees. High caliber employees<br />
tend to seek out companies that are<br />
professional, well run, and have a good<br />
culture. Since franchisors have already worked<br />
out the business’s kinks, when you open your<br />
doors you should be able to deliver on all of<br />
these fronts.<br />
Be able to focus on growth vs. day-to-day<br />
operations faster. Depending on the food<br />
concept you choose, the system the franchisor<br />
provides should facilitate your removing<br />
yourself from the day-to-day operations faster<br />
than if you started a business from scratch.<br />
For example, the comprehensive training<br />
your franchisor delivers makes it possible for<br />
others to be quickly and effectively trained to<br />
fill your shoes. The franchisor will also help<br />
you with strategic marketing campaigns and<br />
material, sales support, software that helps<br />
you run your business, and more. The fact that<br />
the franchisor takes on so many of the roles<br />
an independent restaurateur would have to<br />
assume himself or hire many people to handle,<br />
frees you up to focus on strategically growing<br />
your business.<br />
Group Purchasing. Independent owners do<br />
not have the buying power to qualify for the<br />
discounted rates on purchases that franchisors<br />
negotiate and pass on to their franchisees.<br />
Improve the resale value of your investment.<br />
When you buy a franchise, you buy a brand<br />
name as well as a proven business model.<br />
These two factors combined, typically make<br />
franchises more valuable than an independent<br />
establishment.<br />
In case you are weighing investing in a<br />
franchise vs. starting a concept from scratch,<br />
consider the thoughts of Mateusz Dabrowski,<br />
who owns PJ’s Coffee of New Orleans in<br />
Gonzales, Louisiana with two silent partners.<br />
“Business ownership is wonderful, however<br />
oftentimes it is plagued with tons of barriers to<br />
entry. There are always things you don’t know,<br />
growing pains, consistency issues, sourcing<br />
problems etc.,” says Dabrowski. “A lot of<br />
these issues are completely avoided by being<br />
part of a tried and true franchise system. The<br />
franchisor helps you on all fronts including<br />
marketing that reaches new and old customers,<br />
corporate sourcing oversight to maintain<br />
the product’s long-term perception in the eyes<br />
of your consumers, training and more. Most<br />
independent businesses can’t accommodate<br />
for a specialist in every field to help you stay<br />
ahead of the game. This is where franchising<br />
truly shines.”<br />
SIZZLING FOOD INDUSTRY TRENDS<br />
Multi-Unit. Some food franchisors require<br />
multi-unit ownership because it is easier from<br />
a development standpoint to work with an<br />
owner who operates several locations. Even<br />
though the majority of brands do not have<br />
a multi-unit ownership requirement, many<br />
entrepreneurs are choosing to take this route<br />
due to the potential higher financial return.<br />
Multi-unit owners don’t typically prepare food<br />
8 | For more information on this report, visit: www.FranchiseBusinessReview.com
SPECIAL REPORT: <strong>Top</strong> <strong>Food</strong> <strong>Franchises</strong><br />
or handle the day-to-day operations at their<br />
locations, instead they manage a company<br />
with the help of a team including field and unit<br />
managers. This enables them to focus on strategically<br />
running and growing their business.<br />
“If you want to buy a job, one unit is great.<br />
If you want to build wealth, go for eight to ten<br />
units,” says David Newman, whose company,<br />
B.P. Newman Investments, owns 34 Church’s<br />
Chicken franchises located across Texas, New<br />
Mexico, Louisiana, and Arkansas.<br />
Millennials Are Overtaking Baby Boomers.<br />
Millennials now stand at 75.4 million vs. 74.9<br />
million Baby Boomers. 4 The National Restaurant<br />
Association describes them as tending to<br />
favor fast food, deli food and pizza restaurants<br />
over coffee shops, high-end dining and casual<br />
dining. It also says they are drawn to more<br />
ethnic restaurants as a result of their diversity<br />
and interest in new things.<br />
“We are seeing a trend toward a more<br />
focused menu with fewer items. Customization<br />
remains a big focus, especially in the<br />
Millennial generation. Also, new flavors and<br />
more global flavors are a big trend,” says Nader<br />
Masadeh, CEO of Buffalo Wings & Rings.<br />
Non-Traditional Formats. Traditional food<br />
franchises are within stand-alone locations<br />
or part of a strip mall. Many brands have<br />
branched out into non-traditional unit locations,<br />
such as hospitals, hotels, large office<br />
buildings, airports, college campuses, sports<br />
stadiums, or convenience stores at gas stations.<br />
The physical structure of franchise locations is<br />
also changing. While many remain brick and<br />
mortar, the number of food trucks, carts, and<br />
mobile kitchen options available is increasing.<br />
Each of the formats have greatly varying costs<br />
in terms of construction, equipment, and<br />
staffing needs as well as rent requirements.<br />
Health Awareness Continues. 83% of<br />
consumers want quick service eateries with<br />
healthier eating options. 5 This has led to an<br />
explosion of new healthy concepts and healthy<br />
menu changes at mature brands.<br />
“There is a higher demand for not only<br />
variety and value in our menu offerings, but<br />
also for more healthy choices and options to<br />
4 <br />
U.S. Census Bureau<br />
5 <br />
The National Restaurant Association<br />
tailor their experience,” says Jack Crawford,<br />
President & CEO of Ground Round.<br />
“Consumer attitudes about health and<br />
wellness continue to change at an accelerated<br />
pace. People no longer just “talk” healthy; they<br />
are altering their purchasing habits. But the<br />
view of what is “healthy” varies significantly,<br />
and it isn’t easy for brands to nail the right<br />
balance of attributes,” says Don Fox, CEO of<br />
Firehouse Subs.<br />
Minimum Wage Increases. Smart operators<br />
have identified ways to accommodate minimum<br />
wage increases with the least amount of<br />
impact to their business models.<br />
“We are working with our operators on<br />
technological advancements such as mobile<br />
pay and kitchen equipment that can take some<br />
pressure off labor and ease execution,” says<br />
Crawford. “We are also, like all brands, taking<br />
some price increases to help offset the higher<br />
labor costs where we can and still remain<br />
competitive.”<br />
“We are helping our franchisees in the<br />
face of rising costs by profitably driving top<br />
line sales,” says Fox. “This takes innovation in<br />
marketing, technology, and consumer insights<br />
as well as optimizing the operations systems.”<br />
Fox is also actively engaged in advocacy efforts<br />
to help moderate the impact government has<br />
on the business of the franchise community.<br />
CHOOSING THE RIGHT FOOD FRANCHISE<br />
Choosing the right food franchise investment<br />
opportunity for you entails determining the<br />
lifestyle you want as well as extensive research<br />
on a strong model with financial opportunity.<br />
Are You a Good Fit?<br />
Before you even start analyzing franchise<br />
options, it’s important to take an honest look<br />
at yourself as well as what franchisors look for<br />
in franchisees to determine if franchising is<br />
right for you.<br />
“Franchisees need to be well rounded—<br />
a Jack or Jane of all trades,” says Paul McCulloch,<br />
who owns 11 Smoothie King locations<br />
with his wife, Paula, throughout Tennessee.<br />
“Although one might be a sensible business<br />
professional, it doesn’t necessarily mean that<br />
he or she is a people person. Franchisees need<br />
Continued on page 12.<br />
What <strong>Food</strong><br />
Franchisees Are Saying<br />
Overall Satisfaction with Franchise<br />
say Excellent, Very Good<br />
or Good<br />
77%<br />
“I enjoy operating<br />
this business”<br />
87 %<br />
“I believe my franchisor acts<br />
with a high level of integrity”<br />
75 % Agree or Strongly Agree<br />
“I enjoy being part of<br />
this organization”<br />
84 %<br />
Agree or<br />
Strongly Agree<br />
“I respect my franchisor”<br />
79 %<br />
74 %<br />
would “do it again”<br />
knowing what they know today.<br />
77 %<br />
would recommend their<br />
franchise brand to others<br />
For more information on this report, visit: www.FranchiseBusinessReview.com | 9
SPECIAL REPORT: <strong>Top</strong> <strong>Food</strong> <strong>Franchises</strong><br />
THE LIST<br />
Best of the Best:<br />
Today’s <strong>Top</strong> 40<br />
<strong>Food</strong> <strong>Franchises</strong><br />
Bahama Buck’s<br />
Ice cream/Yogurt/Frozen treats<br />
Billy Sims Barbecue<br />
Fast casual<br />
Survey<br />
Date<br />
Sep.<br />
2015<br />
Oct.<br />
2015<br />
Startup<br />
Investment<br />
$223,346 –<br />
$720,825<br />
$169,000 –<br />
$433,000<br />
Cash<br />
Requirement<br />
Total<br />
Units<br />
$90,000 78<br />
$150,000 49<br />
Buffalo Wings & Rings<br />
Fast casual<br />
Jan.<br />
<strong>2016</strong><br />
$1,224,000 –<br />
$3,085,000<br />
$300,000 48<br />
Captain D’s<br />
Fast casual<br />
May<br />
<strong>2016</strong><br />
$771,000 –<br />
$1,003,000<br />
$350,000 514<br />
“Proud to be a part of<br />
an organization that cares<br />
so deeply about so many<br />
areas of our business.<br />
<strong>Food</strong> quality, marketing,<br />
financial success, etc.”<br />
– East Coast Wings Franchisee<br />
Caribou Coffee<br />
Beverages<br />
* Checkers & Rally’s<br />
Quick-service restaurant<br />
Church’s Chicken<br />
Quick-service restaurant<br />
Culver’s<br />
Quick-service restaurant<br />
D.P. Dough<br />
Quick-service restaurant<br />
June<br />
2015<br />
June<br />
2015<br />
Jan.<br />
2015<br />
May<br />
2015<br />
Jan.<br />
2015<br />
$100,000 –<br />
$100,000<br />
$165,796 –<br />
$1,306,345<br />
$400,000 –<br />
$1,200,000<br />
$1,845,000 –<br />
$4,155,000<br />
$259,540 –<br />
$474,779<br />
$1,000,000 600<br />
$250,000 830<br />
$650,000 1184<br />
$350,000 –<br />
$600,000<br />
567<br />
$100,000 26<br />
Denny’s<br />
Casual dining<br />
Feb.<br />
2015<br />
$915,000 –<br />
$2,421,000<br />
$500,000 1672<br />
Dick’s Wings & Grill<br />
Casual dining<br />
Jan.<br />
<strong>2016</strong><br />
$229,500 –<br />
$772,500<br />
$150,000 25<br />
“I was accompanied with<br />
support every single step<br />
of the way. Anytime a<br />
question came up or help<br />
was needed regarding<br />
any matter, I receivedthe<br />
right answers.”<br />
– Firehouse Subs Franchisee<br />
Donatos Pizza — more on p. 1<br />
Quick-service restaurant<br />
* East Coast Wings & Grill — more on p. 20<br />
Casual Dining<br />
Farmer Boys<br />
Fast casual<br />
Fazoli’s Restaurants<br />
Fast casual<br />
* Firehouse Subs — more on back cover<br />
Quick-service restaurant<br />
July<br />
2015<br />
April<br />
<strong>2016</strong><br />
July<br />
2015<br />
Feb.<br />
2015<br />
April<br />
<strong>2016</strong><br />
$361,360 –<br />
$697,400<br />
$658,875 –<br />
$1,133,502<br />
$1,028,500<br />
- $2,168,500<br />
$558,000 –<br />
$1,339,000<br />
$128,760 –<br />
$1,160,900<br />
$200,000 154<br />
$250,000 35<br />
$1,028,500 –<br />
$2,168,500<br />
80<br />
$250,000 220<br />
$80,000 –<br />
$100,000<br />
989<br />
* Ground Round — more on p. 21<br />
Casual dining<br />
April<br />
<strong>2016</strong><br />
$450,000 –<br />
$2,200,000<br />
$350,000 28<br />
* Happy and Healthy Products<br />
Ice cream/Yogurt/Frozen treats<br />
Mar.<br />
<strong>2016</strong><br />
$45,000 –<br />
$90,000<br />
$45,000 –<br />
$89,045<br />
65<br />
*This brand’s Franchisee<br />
Satisfaction Report is available at<br />
www.FranchiseBusinessReview.com<br />
* Hungry Howie’s Pizza —<br />
Quick-service restaurant<br />
* Hwy 55 Burgers Shakes & Fries<br />
Casual dining<br />
more on inside<br />
front cover<br />
Nov.<br />
2015<br />
July<br />
2015<br />
$253,075 –<br />
$453,850<br />
$191,255 –<br />
$385,155<br />
100,000 547<br />
$125,000 130<br />
10 | For more information on the companies in this report, visit www.FBR50.com
SPECIAL REPORT: <strong>Top</strong> <strong>Food</strong> <strong>Franchises</strong><br />
Survey<br />
Date<br />
Startup<br />
Investment<br />
Cash<br />
Requirement<br />
Total<br />
Units<br />
Jason’s Deli<br />
Fast Casual<br />
April<br />
<strong>2016</strong><br />
$905,891 –<br />
$1,277,868<br />
$1,000,000 261<br />
* Kona Ice<br />
Ice cream/Yogurt/Frozen treats<br />
June<br />
2015<br />
$117,125 –<br />
$135,925<br />
$20,000 776<br />
LaRosa’s Pizzeria<br />
Fast Casual<br />
April<br />
<strong>2016</strong><br />
$600,000 –<br />
$750,000<br />
$250,000 66<br />
* Marco’s Pizza<br />
Quick-service restaurant<br />
July<br />
2015<br />
$264,592 –<br />
$549,092<br />
$100,000 667<br />
Nothing Bundt Cakes<br />
Snack retailer<br />
June<br />
2015<br />
$392,875 –<br />
$545,475<br />
$150,000 168<br />
Penn Station<br />
Quick-service restaurant<br />
Pizza 9<br />
Quick-service restaurant<br />
Mar.<br />
<strong>2016</strong><br />
Oct.<br />
2015<br />
$269,232 –<br />
$535,081<br />
$64,580 –<br />
$353,980<br />
$300,000 301<br />
$64,580 –<br />
$353,980<br />
18<br />
“I have had 110%<br />
support of the franchisor.”<br />
– Penn Station Franchisee<br />
PJ’s Coffee<br />
Beverages<br />
Aug.<br />
2015<br />
$171,400 –<br />
$474,500<br />
$75,000 71<br />
Planet Sub<br />
Quick-service restaurant<br />
Feb.<br />
<strong>2016</strong><br />
$182,500 –<br />
$402,000<br />
$100,000 42<br />
Repicci’s Italian Ice<br />
Ice cream/Yogurt/Frozen treats<br />
Oct.<br />
2015<br />
$155,000 –<br />
$165,000<br />
$50,000 50<br />
Smoothie King — more on p. 18<br />
Beverages<br />
April<br />
<strong>2016</strong><br />
$188,200 –<br />
$414,050<br />
$95,000 688<br />
Taziki’s Mediterranean Cafe<br />
Fast Casual<br />
Sep.<br />
2015<br />
$323,000 –<br />
$819,000<br />
$500,000 56<br />
Teriyaki Madness<br />
Fast casual<br />
TGI Friday’s — more on p. 18<br />
Fast casual<br />
<strong>Top</strong>pers Pizza<br />
Quick-service restaurant<br />
Tropical Smoothie Cafe<br />
Fast Casual<br />
Uno Chicago Grill<br />
Fast Casual<br />
Wingstop<br />
Quick-service restaurant<br />
July<br />
2015<br />
Nov.<br />
2015<br />
July<br />
2015<br />
Oct.<br />
2015<br />
April<br />
<strong>2016</strong><br />
April<br />
<strong>2016</strong><br />
$255,199 –<br />
$560,850<br />
$2,600,000 –<br />
$4,200,000<br />
$262,663 –<br />
$490,649<br />
$210,550 –<br />
$478,550<br />
$736,000 –<br />
$1,850,500<br />
$227,888 –<br />
$650,790<br />
$52,500 22<br />
$500,000 –<br />
$1,000,000<br />
878<br />
$150,000 73<br />
$125,000 500<br />
$750,000 85<br />
$200,000 700<br />
“I find that operating a<br />
smoothie king is a very<br />
easy process … The<br />
product is the best out<br />
there and I do like the<br />
introduction of new<br />
smoothies. Even if it<br />
means changing up my<br />
old favorites. ”<br />
– Smoothie King Franchisee<br />
Zaxby’s<br />
Fast Casual<br />
Oct.<br />
2015<br />
$352,000 –<br />
$664,300<br />
$500,000 726<br />
Zoup! — more on p. 20<br />
Quick-service<br />
Dec.<br />
2014<br />
$386,860 –<br />
$576,250<br />
$150,000 92<br />
For more information on the companies in this report, visit www.FBR50.com | 11
SPECIAL REPORT: <strong>Top</strong> <strong>Food</strong> <strong>Franchises</strong><br />
Continued from page 9.<br />
to make sure they can communicate clearly<br />
and manage a team as well as be a good<br />
listener. An array of problems will always<br />
arise, so they must be able to conquer those<br />
issues while dealing with day-to-day operations.”<br />
McCulloch suggests that prospective<br />
franchisees take a personality test to uncover<br />
their strengths and weaknesses.<br />
<strong>Food</strong> franchisors today tend to look for<br />
franchisees with strong financials and prior<br />
restaurant operating/ownership experience.<br />
“When we are vetting candidates, first<br />
and foremost they need to be someone who<br />
believes in our values and goals,” says Masadeh<br />
of Buffalo Wings & Rings. “We look<br />
for candidates who are financially sound,<br />
business-savvy and can follow a system. It’s<br />
also good if they have restaurant experience<br />
or the ability to hire someone with restaurant<br />
experience to cut down on the learning curve.”<br />
Many franchisors also seek less tangible<br />
traits in candidates.<br />
“First and foremost, we look for a dedicated<br />
owner-operator who enjoys the day-to-day<br />
restaurant environment and working with<br />
people on both sides of the counter,” says Fox<br />
of Firehouse Subs.<br />
“Our most successful franchisees are the<br />
ones who have strong people skills,” says<br />
Masadeh. “In this business, serving people<br />
comes first.”<br />
What to Look For<br />
When it comes to evaluating your options,<br />
look for food franchises that provide the<br />
following:<br />
• A unique customer experience. The most<br />
successful food franchises understand that<br />
good quality food is just the minimum<br />
threshold required to attract loyal customers<br />
today. Look for brands that not only deliver a<br />
consistent quality product, but also a unique<br />
and personal experience that is going to keep<br />
customers coming back.<br />
• Efficient operations. Operations include<br />
all functions that are necessary to prepare<br />
and serve your products to your customers<br />
such as activities that take place every day in<br />
the kitchen, dining area and bar if you have<br />
one. Seek out opportunities with a proven<br />
and cost effective system that addresses all<br />
aspects of operations. It will enable you to<br />
produce consistent results when it comes to<br />
food and customer experience without your<br />
constant, direct daily involvement over time.<br />
Simplicity is key. Brands that try to be all<br />
things to all people commonly fail.<br />
“I appreciate the overall simplicity of<br />
the operation, the low inventory and low<br />
food waste,” says Smoothie King franchisee<br />
McCulloch.<br />
• Effective marketing. The majority of franchises<br />
handle marketing for you. Marketing<br />
gets the word out about your brand via<br />
public relations, community involvement,<br />
advertising, and promotions. Be sure to find<br />
Average Pre-Tax Income by Concept Type*<br />
$160,000<br />
$140,000<br />
$148,000<br />
$120,000<br />
$125,000<br />
$132,000<br />
$100,000<br />
$95,000<br />
$80,000<br />
$86,000<br />
$82,000<br />
$60,000<br />
$64,000<br />
$40,000<br />
$54,000<br />
$20,000<br />
$0<br />
Bakery/Café<br />
Burgers<br />
Full Service<br />
Restaurant<br />
Mexican/<br />
Southwest<br />
Sandwiches<br />
Pizza<br />
Smoothies<br />
Yogurt/<br />
Ice Cream<br />
* Based on self-reported annual pre-tax income figures from 3,396 food industry franchisees.<br />
12 | For more information on this report, visit: www.FranchiseBusinessReview.com
SPECIAL REPORT: <strong>Top</strong> <strong>Food</strong> <strong>Franchises</strong><br />
Left: Auntie Anne’s franchise employee providing service with a smile.<br />
Right: Ali Parsa of A&R Pars, Inc. owns two Checkers franchises in Atlanta, GA.<br />
out what the marketing fees are and what<br />
they include—just national or local marketing<br />
too? If local marketing is not included,<br />
ask the franchisor as well as franchisees who<br />
are in similar markets to yours how much<br />
they think you will spend so you can build it<br />
into your budget.<br />
• Innovative menu items. Menu options need<br />
to change often enough to keep customers<br />
coming back and attract new ones. The core<br />
menu, however, must have strong, lasting<br />
appeal in and of itself for those customers<br />
who enjoy consistency.<br />
“We evolve our menu offerings through<br />
the use of seasonal, limited time offer menus<br />
that constantly add new and fresh choices<br />
for our guests in addition to our core menu<br />
offerings, and these limited time menus<br />
provide constant change and freshness to<br />
our overall menu variety,” says Crawford of<br />
Ground Round.<br />
• Effective use of technology. Good technology<br />
can help restaurants run more efficiently<br />
and attract and retain customers. For example,<br />
automated table ordering helps reduce<br />
costs, financial dashboards help operators<br />
spot trends, and customer relationship<br />
management (CRM) applications can make<br />
running local marketing campaigns almost<br />
effortless. Be sure to find out how a brand<br />
leverages technology to benefit its franchisees<br />
and confirm with franchisees that the<br />
technology is actually effective.<br />
• A supportive culture. Being a part of a franchise<br />
is like being part of an extended family.<br />
You want to be sure you like the family before<br />
you join it. Find out how much support you<br />
will receive from the corporate office and if<br />
the leadership is strong. Ideally you’ll want<br />
the leadership to take an inclusive approach<br />
by involving franchisees in major decision<br />
so be sure to ask how the franchise you are<br />
considering involves franchisees. Also find<br />
out how interaction among franchisees is<br />
encouraged since input from your fellow<br />
franchisees will likely be an integral part of<br />
your success.<br />
“I think what brand you join as a franchisee<br />
is absolutely critical to your long term<br />
success and the quality, integrity and track<br />
record of the brand’s management team is<br />
a key element of that,” says Spongberg of<br />
Denny’s. When it comes to the importance<br />
of your fellow franchisees, he adds “As members<br />
of the franchisor’s management team<br />
change over time, franchisees tend to remain<br />
a constant. So in franchising, in a very real<br />
sense it is the franchisees, not the franchisor,<br />
who are the enduring heart and soul of the<br />
brand.”<br />
Determine the Type of Franchise<br />
That Interests You Most<br />
There are many types of food franchises. It’s<br />
important to decide which appeals most to<br />
you.<br />
• Quick Service: Most people associate quick<br />
service restaurants (QSR) with concepts like<br />
McDonalds, KFC and Chick-fil-A. Immediate<br />
consumption is the focus of QSRs. Meals<br />
are more often than not taken out, although<br />
people can dine on-site or delivery service<br />
may be provided.<br />
• Fast Casual: The concept unites the quality<br />
of casual dining with the speed of fast food.<br />
Chipotle Mexican Grill, Boston Market<br />
and Fazoli’s are fast casual concepts you’ve<br />
likely seen. Typically the food is more<br />
customized, freshly prepared, and higher<br />
quality and the environment more upscale<br />
and inviting than QSRs. Just like QSRs,<br />
customers typically order and pay at a counter,<br />
and then take food out or grab a tray to<br />
sit and eat, although sometimes minimal<br />
table service is provided.<br />
• Full Service: Full service restaurants serve<br />
food and drinks directly to the customers<br />
at their tables. They may sell alcoholic<br />
beverages; provide takeout, delivery or live<br />
entertainment. The term full service entails<br />
a wide array of concepts from family-style to<br />
upscale dining such as Applebees, I.H.O.P.,<br />
and TGI Fridays.<br />
• Retail: Retail food concepts include convenience<br />
stores and vending machines as<br />
well as specialty dessert concepts such as<br />
7-11, Edible Arrangements, and Happy<br />
and Healthy Products.<br />
For more information on this report, visit: www.FranchiseBusinessReview.com | 13
SPECIAL REPORT: <strong>Top</strong> <strong>Food</strong> <strong>Franchises</strong><br />
Tim and Katina McCartney own a Zoup franchise in Colorado Springs, CO.<br />
Is It a Good Choice For Your Market?<br />
It’s essential to ensure that the franchise concept<br />
will be a good fit for the market where<br />
you are thinking of opening it. Questions to<br />
ask yourself include:<br />
• Will the people in the community<br />
embrace the concept?<br />
• What does the area need/want in terms of<br />
food options?<br />
• Will I be able to find the staff I’ll need?<br />
Do the Financials Work?<br />
“Do I have enough money to purchase<br />
a food franchise?,” is probably a question<br />
that keeps running through your mind. The<br />
following provides an idea of typical costs<br />
you’ll incur.<br />
• Initial Investment: The amount necessary<br />
to open a franchise varies based on each<br />
concept. Initial costs include the franchise<br />
fee, land and build-out costs if a brick and<br />
mortar concept (sometimes franchisees<br />
lease, buy, or the franchisor owns the real<br />
estate), equipment, training related expenses<br />
(such as travel and living expenses while<br />
attending training sessions included in your<br />
purchase), grand opening marketing costs,<br />
and more. The average initial start-up range<br />
for the franchises we surveyed starts at<br />
$117,000 (see page 8). You can, however,<br />
invest in a food concept for far less. For<br />
example on page 10 of this report, you’ll see<br />
that you can open a Happy and Healthy<br />
Products franchise for $45,000.<br />
• Ongoing Costs: In addition to common<br />
ongoing costs including payroll, utilities,<br />
marketing, software and technology, franchises<br />
come with royalty fees. They allow<br />
you to use the franchisor’s trademarks and<br />
patented processes on an ongoing basis.<br />
• A Financial Cushion: Just like all small<br />
businesses, franchises take time to become<br />
profitable. It is crucial you have enough<br />
money to get your business going while<br />
enabling you and your family to live in a<br />
manner to which you are accustomed until<br />
your franchise is profitable.<br />
“Financially speaking every situation is different,”<br />
says Dabrowski of PJ’s Coffee. “There<br />
is a large range of potential profit margins and<br />
it’s important to understand the numbers.<br />
Know where your return on investment is and<br />
understand the potential profit margins for<br />
each business. Odds are the biggest variables<br />
you will come across will be rent and potential<br />
gross sales. It’s important to weigh them<br />
against the time to ROI.”<br />
You’ll have to ensure to the best of your<br />
ability that the return on investment (ROI)<br />
will meet your financial goals. How much<br />
you will make will depend on many factors<br />
including your investment level, your business<br />
acumen, the marketplace, and your location. To<br />
help you make realistic, personalized financial<br />
projections, we created a three-hour How<br />
Much Money Can You Make? online course,<br />
which is available via our Franchise Buyer’s<br />
Toolkit at www.FranchiseBusinessReview.<br />
com. Just from the brands we interviewed<br />
for this report alone, you can see how much<br />
revenue varies. The average current unit<br />
volume for Firehouse Subs according to Fox<br />
is $725,000 and $1,950,000 for Ground Round<br />
according to Crawford. Buffalo Wings &<br />
Rings reports that according to its most recent<br />
Franchise Disclosure Document (FDD), a<br />
legal document that provides prospective<br />
franchisees with information about the<br />
franchisor, that the average gross sales for its<br />
franchised locations in 2015 was $1,842,000.<br />
Paul McCulloch’s 2015 gross sales revenue was<br />
$3.4 million, at which time he owned nine<br />
Smoothie King locations. Spongberg reports<br />
that the gross sales of his Denny’s restaurants<br />
was $35,959,750 in 2015. The chart featuring<br />
the average pre-tax income by concept type<br />
on page 12 shows it ranges from $54,000 for<br />
frozen yogurt/ice cream to $148,000 for Mexican/<br />
Southwestern. Don’t forget that “average”<br />
means some franchisees within a system<br />
make far less, while some make much more.<br />
Also, keep in mind that the gross revenue of<br />
corporate run franchises, when applicable, is<br />
factored into the “average” figure as well.<br />
ADVICE FOR NEW FRANCHISEES<br />
Crawford of Ground Round, who has been a<br />
franchisee, and observed many franchisees,<br />
offers the following advice, “Franchise operators<br />
should pay the most attention to starting<br />
off with hiring the right team, particularly at<br />
the management level, and supporting them<br />
in every way they can. Initial focus should<br />
be to invest in proper staffing levels and fine<br />
tuning of quality execution and adherence to<br />
systems and follow through. Only this will<br />
lead to the sustained growth and profitability.”<br />
Smoothie King franchisee, McCulloch,<br />
echoes Crawford’s advice, “Focus on hiring<br />
trustworthy, inspiring and motivated general<br />
managers to run your stores. Also, set goals<br />
for your business, make your team aware of<br />
these goals, and have checkpoints throughout<br />
the year to hold yourself and your team<br />
accountable.”<br />
14 | For more information on this report, visit: www.FranchiseBusinessReview.com
SPECIAL REPORT: <strong>Top</strong> <strong>Food</strong> <strong>Franchises</strong><br />
“Remember that you are building a business,<br />
and recognize at the outset that this may<br />
be a long-term proposition. If you don’t enjoy<br />
the business, be honest with yourself, and<br />
don’t pursue it. Remember that the strongest<br />
brand, in and of itself, is not a guarantee for<br />
success. It must be coupled with great execution,<br />
which is the domain of the franchisee,”<br />
says Fox of Firehouse Subs.<br />
“Have fun! That’s the first thing we want<br />
franchisees to focus on when they join our system.<br />
It should be an enjoyable business to work<br />
in and grow with,” says Masadeh of Buffalo<br />
Wings & Rings. “You have to make sure to take<br />
care of your guests, execute brand standards,<br />
and hire the right talent to be successful.”<br />
Dabrowski of PJ’s Coffee advises the following:<br />
1. Make calculated risk choices when choosing<br />
a franchise and location. If you aren’t afraid<br />
then you probably shouldn’t be opening a<br />
business. Fear is essential in decision-making<br />
as your gut speaks volumes about intangible<br />
variables. 2. Work from within the franchise to<br />
reach your goals. 3. Be prepared to work. 4.<br />
Know your customers! 5. LOVE the product.<br />
6. Take care of your employees! 7. Never get<br />
complacent. Nothing is forever, so be prepared<br />
to grow and shrink as needed. 8. Create an exit<br />
strategy should things not pan out.<br />
“The worst thing you can be is an oblivious<br />
owner. You must be really involved,” says<br />
Newman of Church’s Chicken. “Also, pay<br />
yourself last. Too many people see all this<br />
money coming in and think they can start<br />
spending it on stuff they do not need instead<br />
of investing it back into the business.” Newman<br />
also recommends buying the real estate<br />
where your franchise is located. This allows<br />
you to either sell a franchise along with its real<br />
estate or to sell a franchise, but keep the real<br />
estate and receive rental revenue.<br />
THE IDEAL OPPORTUNITY EXISTS<br />
Whether you choose to serve up burgers, coffee,<br />
sandwiches, pizza, smoothies, gourmet<br />
meals, or something else, the growing trend<br />
of Americans not cooking for themselves<br />
means your food franchise business has a<br />
good chance of being successful as long as<br />
you conduct thorough research into the best<br />
opportunity for your marketplace and for you.<br />
It’s clear that entrepreneurs who invest in the<br />
right food franchise are happy they did. 87%<br />
of the franchisees we surveyed said they enjoy<br />
operating their business.<br />
“I really love what I do, so these days<br />
I never have to ‘work’,” says Spongberg of<br />
Denny’s. “Franchising has provided me the<br />
opportunity to help people on my team<br />
achieve their own hopes and dreams over the<br />
years, starting from very little, often as a minimum<br />
wage employee. It is hard to describe the<br />
satisfaction helping someone else develop and<br />
achieve their full potential brings.”<br />
Perusing the brands ranked highly by their<br />
franchisees on page 10 is a smart place to start<br />
your franchise research. Once you’ve narrowed<br />
down your choices, be sure to analyze each<br />
franchisor’s FDD. An in-depth breakdown of<br />
how to do so is presented as on-demand video<br />
segments within our Franchise Buyer’s Toolkit.<br />
Also ask franchisors for third party franchisee<br />
satisfaction reports like those provided within<br />
the Franchise Reviews section of www.<br />
FranchiseBusinessReview.com. They will<br />
provide you with crucial and honest insight<br />
into what their leadership, training, culture,<br />
financial performance, and more is like.<br />
We Empower Entrepreneurs to Take That First Step<br />
Our full suite of funding options make it possible for you to find the method that best aligns with<br />
your needs. Many of our clients combine multiple types of funding to reach their desired capital.<br />
10,000 Financed, $3 Billion Funded - The Industry’s Leading ROBS Provider guidantfinancial.com<br />
For more information on this report, visit: www.FranchiseBusinessReview.com | 15
SPECIAL REPORT: <strong>Top</strong> <strong>Food</strong> <strong>Franchises</strong> // MARKETPLACE<br />
<strong>2016</strong><br />
TOP 200<br />
FRANCHISES<br />
Today’s leading brands based<br />
on FBR’s owner satisfaction data.<br />
*Full Satisfaction Report Available<br />
at FranchiseBusinessReview.com<br />
Has made FBR’s top franchises<br />
list for 10 or more years.<br />
ADVERTISING<br />
ADVERTISING & SALES<br />
Proforma<br />
* Our Town America — more on right<br />
Welcomemat Services<br />
Viamark Advertising<br />
AUTOMOTIVE<br />
* Christian Brothers Automotive<br />
* Snap-on Tools — more on right<br />
* Rent-A-Wreck<br />
Auto Appraisal Network<br />
Honest-1 Auto Care<br />
BUSINESS SERVICES<br />
* FASTSIGNS — more on right<br />
* Sandler Training<br />
Sanford Rose Associates<br />
Sir Speedy<br />
* YESCO<br />
Murphy Business & Financial<br />
Supporting Strategies<br />
Unishippers<br />
InXpress<br />
The @WORK Group<br />
BlueGrace Logistics<br />
City Wide Maintenance<br />
FPC National<br />
PIP Printing & Marketing Services<br />
CHILD SERVICES<br />
* JumpBunch<br />
* Soccer Shots<br />
Great Play<br />
CompuChild<br />
* Amazing Athletes<br />
College Nannies & Tutors<br />
Young Rembrandts<br />
KidsPark<br />
TGA Premier Golf & Tennis<br />
Goldfish Swim School<br />
TSS Photography<br />
CLEANING & MAINTENANCE<br />
Heaven’s Best Carpet Cleaning<br />
MaidPro<br />
* Office Pride<br />
Aire-Master of America<br />
Jan-Pro (master franchisors)<br />
Buildingstars<br />
Anago Cleaning Systems (master franchisors)<br />
Molly Maid<br />
* Image One<br />
The Maids<br />
City Wide Maintenance<br />
EDUCATION<br />
* The Goddard School<br />
* Mathnasium<br />
Huntington Learning Centers<br />
Best In Class Education Centers<br />
THE TUTORING CENTER<br />
FINANCIAL SERVICES<br />
American Prosperity Group<br />
Estrella Insurance<br />
* Payroll Vault<br />
4 Pillars Consulting<br />
* ATAX Franchise<br />
FITNESS<br />
The Exercise Coach<br />
Fit Body Boot Camp<br />
Baby Boot Camp<br />
* Crunch Fitness<br />
Fit4Mom<br />
The MAX Challenge<br />
Hard Exercise Works<br />
FOOD & BEVERAGE<br />
Culver’s<br />
* Kona Ice — more on right<br />
Zaxby’s<br />
* Ground Round<br />
* Hwy 55 Burgers Shakes & Fries<br />
* Checkers & Rally’s<br />
Hungry Howie’s Pizza & Subs<br />
* Firehouse Subs<br />
Penn Station<br />
Tropical Smoothie Cafe — more on p.19<br />
D.P. Dough<br />
Our Town America<br />
Startup Investment: $49,000 – $85,000<br />
Cash Requirement: $89,000<br />
Total Units: 59<br />
Our Town America is the nation’s premier New<br />
Mover Marketing franchise. Since 1972, we’ve<br />
been providing new movers with traditional<br />
hospitality by mailing them welcoming<br />
certificates from local neighborhood businesses<br />
in a premium welcome package that make them<br />
feel more at home than standard coupons.<br />
Thousands of satisfied business owners<br />
throughout the United States attest to the<br />
success and effectiveness of our program, while<br />
dozens of locally owned Our Town America<br />
franchises validate our concept as a viable<br />
business opportunity.<br />
For more information on Our Town America<br />
opportunities, call (727) 345-0811 x232<br />
or visit www.ourtownamerica.com.<br />
AUTOMOTIVE<br />
Snap-on Tools<br />
Startup Investment: $152,692 – $318,979<br />
Cash Requirement: $30,164 – $80,246<br />
Total Units: 3,871<br />
Snap-on Incorporated is a leading global<br />
innovator, manufacturer, and marketer of<br />
tools, diagnostics, and equipment solutions<br />
for professional users. Product lines include<br />
hand and power tools, and are sold through<br />
its franchisees, company-direct sales, and<br />
distributor channels, as well as over the internet.<br />
For more information on Snap-on Tools<br />
opportunities, call (877) 476-2766<br />
or visit www.snaponfranchise.com.<br />
See page 18 for additional top franchises.<br />
Visit FBR50.com for brand details.<br />
16 | For more information on the companies in this report, visit www.FBR50.com
BUSINESS SERVICES<br />
FOOD & BEVERAGE<br />
FOOD & BEVERAGE<br />
FASTSIGNS<br />
Startup Investment: $168,812 – $308,830<br />
Cash Requirement: $80,000<br />
Total Units: 600+<br />
Signage has never been more important. Right<br />
now, businesses are looking for new and better<br />
ways to compete. Industries are revamping to<br />
meet compliance standards. And advertisers are<br />
expanding their reach into new media, like digital<br />
signage, QR codes, and mobile websites. Join the<br />
franchise that’s leading the next generation of<br />
business communication. Now more than ever,<br />
businesses look to FASTSIGNS for innovative<br />
ways to connect with customers in a highly<br />
competitive marketplace. Our high standards<br />
for quality and customer service have made<br />
FASTSIGNS the most recognized brand in the<br />
industry, driving significantly more traffic to the<br />
Web than any other sign company.<br />
For more information on FASTSIGNS<br />
opportunities, call (800) 827-7446<br />
or visit www.fastsigns.com.<br />
Fazoli’s<br />
Startup Investment: $558,000 – $1,339,000<br />
Cash Requirement: $250,000<br />
Total Units: 220<br />
Fazoli’s ® , the largest fast-casual Italian concept<br />
serves innovative and traditional freshly<br />
prepared pasta, pizza, salads, and oven-baked<br />
Primo Submarinos ® . We are currently offering<br />
single and multi-unit franchise opportunities<br />
nationwide. Our franchisees are enjoying record<br />
sales with three years of same store sales growth.<br />
We offer a brand-new, modern prototype and<br />
flexible footprint with in-line, freestanding, and<br />
conversion options available.<br />
For more information on Fazoli’s opportunities,<br />
call (800) 446-4368 or visit<br />
www.ownafazolis.com.<br />
Kona Ice<br />
Startup Investment: $117,125 – $135,925<br />
Cash Requirement: $20,000<br />
Total Units: 776<br />
Here at Kona Ice, we know why we’ve succeeded<br />
and reached these ranks of the #1 New Franchise<br />
(Entrepreneur Magazine 2013), top in Franchisee<br />
Satisfaction (Franchise Business Review and<br />
Franchise Update), #1 in Category (Dessert<br />
Franchise in Entrepreneur Magazine) and made<br />
the Fastest Growing List for the past five years.<br />
It’s the combination of a fresh concept, strong<br />
corporate support with a vision, and a desire to<br />
make the world a better place. Here are some<br />
reasons why Kona Ice is different: proprietary<br />
nutritional product, ancillary equipment,<br />
patented Flavorwave, established brand, quick<br />
startup, fixed royalty, low overhead.<br />
Contact us for more information today!<br />
(800)566-2423 www.ownakona.com<br />
WARNING:<br />
BUYING THE WRONG FRANCHISE<br />
CAN SERIOUSLY DAMAGE YOUR FINANCIAL HEALTH.<br />
When you invest in a franchise, you have only one chance to make the RIGHT choice —<br />
one that will give you and your family a bright future. Franchise Business Review can help.<br />
Our Franchise Buyer’s Toolkit provides all the resources you need to make an informed franchise<br />
investment. Learn the ins and outs of buying a franchise, get tips from the pros, and access insider<br />
insights that you won’t find anywhere else.<br />
Learn more at FranchiseBusinessReview.com/Toolkit<br />
For more information on the companies in this report, visit www.FBR50.com | 17
SPECIAL REPORT: <strong>Top</strong> <strong>Food</strong> <strong>Franchises</strong> // MARKETPLACE<br />
<strong>2016</strong> TOP 200<br />
FRANCHISES<br />
FOOD & BEVERAGE<br />
<strong>Food</strong> and Beverage continued<br />
Auntie Anne’s<br />
Fazoli’s Restaurants — more on p.17<br />
LaRosa’s Pizzeria<br />
Wingstop<br />
<strong>Top</strong>pers Pizza<br />
Denny’s<br />
Jason’s Deli<br />
Donatos Pizza<br />
* Marco’s Pizza<br />
* East Coast Wings & Grill<br />
* Happy and Healthy Products<br />
Dick’s Wings & Grill<br />
Planet Sub<br />
Taziki’s Mediterranean Cafe<br />
Billy Sims Barbecue<br />
Au Bon Pain<br />
Pizza 9<br />
* PJ’s Coffee<br />
Nothing Bundt Cakes<br />
Zoup!<br />
Bahama Buck’s<br />
* Your Pie<br />
Chicken Salad Chick<br />
Repicci’s Italian Ice<br />
Farmer Boys<br />
Deli Delicious<br />
Chopped Leaf<br />
Teriyaki Madness<br />
HEALTH & BEAUTY<br />
The Woodhouse Day Spas<br />
Palm Beach Tan<br />
Sport Clips<br />
Paul Mitchell School<br />
My Salon Suite<br />
HOME SERVICES<br />
Budget Blinds<br />
* CertaPro Painters<br />
* National Property Inspections<br />
Miracle Method Surface Refinishing<br />
ShelfGenie<br />
WOW 1 DAY PAINTING<br />
Surface Specialists Systems<br />
* DreamMaker Bath & Kitchen<br />
* Pillar To Post Home Inspectors<br />
* HouseMaster — more on p. 11<br />
ASP – America’s Swimming Pool Company<br />
Tailored Living<br />
* The Glass Guru<br />
AdvantaClean<br />
MarbleLife<br />
The Grout Doctor<br />
Closets By Design<br />
PET SERVICES<br />
In Home Pet Services<br />
Sit Means Sit<br />
REAL ESTATE<br />
Sotheby’s International Realty<br />
Better Homes and Gardens Real Estate<br />
Keller Willams<br />
* HomeVestors of America — more on right<br />
G.J. Gardner Homes<br />
Coldwell Banker<br />
Weichert Real Estate<br />
Help-U-Sell Real Estate<br />
PropertyGuys.com<br />
Realty ONE Group<br />
United Country Real Estate<br />
Showhomes Home Staging<br />
Epcon Franchising<br />
Coldwell Banker Commercial<br />
Harcourts USA<br />
RETAIL<br />
* Wild Birds Unlimited<br />
Rhea Lana’s<br />
Pinch A Penny<br />
Family Fare<br />
Just Between Friends<br />
Pro Image<br />
Learning Express<br />
* Big Frog Custom T-Shirts<br />
MODE<br />
Kid’s Closet Connection<br />
NYS Collection Eyewear<br />
* Vapor Shark<br />
SENIOR CARE<br />
* Home Instead Senior Care<br />
* Visiting Angels — more on right<br />
CarePatrol<br />
* Amada Senior Care<br />
Smoothie King<br />
Startup Investment: $188,200 – $414,050<br />
Cash Requirement: $95,000<br />
Total Units: 688<br />
Smoothie King <strong>Franchises</strong>, Inc. is a privately held,<br />
New Orleans-area-based franchise company<br />
with more than 780 units worldwide. By creating<br />
each smoothie with a purpose, Smoothie King<br />
makes it simple and pleasurable for guests to<br />
achieve their individual health goals as part of a<br />
low-calorie diet and regular exercise routine. The<br />
franchise also offers a number of healthy retail<br />
products, including sports beverages, energy<br />
bars, vitamin supplements and more. In 2015,<br />
Smoothie King was ranked No. 1 by Entrepreneur<br />
magazine in the juice bar category for the 23rd<br />
year and No. 92 overall on the 2015 Franchise<br />
500 list.<br />
For more information call (985) 635-6984<br />
or visit www.smoothiekingfranchise.com.<br />
FOOD & BEVERAGE<br />
TGIFridays<br />
Startup Investment: $2,600,000 – $4,200,000<br />
Cash Requirement: $500,000 – $1,000,000<br />
Total Units: 878<br />
TGI Fridays has been America’s most iconic<br />
bar and grill for more than 50 years. Fridays<br />
delivers great experiences, food and beverages,<br />
holding true to our brand promise that “In<br />
Here, It’s Always Friday ® .” Today, 90 percent<br />
of our restaurants are owned and operated by<br />
franchise partners. We are always looking for<br />
energetic multi-unit operators who understand<br />
and appreciate the Fridays heritage, vision, and<br />
values to join our team, and to bring Fridays to<br />
new neighborhoods, communities, and markets.<br />
For more information call (972) 662-5400<br />
or visit www.tgifridays.com/franchise.<br />
See page 19 for additional top franchises.<br />
Visit FBR50.com for brand details.<br />
18 | For more information on the companies in this report, visit www.FBR50.com
FOOD & BEVERAGE<br />
Tropical Smoothie<br />
Startup Investment: $210,550 – $478,550<br />
Cash Requirement: $125,000<br />
Total Units: 500<br />
Tropical Smoothie Café is the healthier quick<br />
casual restaurant with over 500 locations in 40<br />
states. Our balanced business model of 60%<br />
smoothie sales and 40% food sales allows us<br />
to service all day-parts and drive higher gross<br />
sales. We also have lower development costs as<br />
we do not utilize grills, deep fryers or hooding<br />
systems. High gross sales and lower development<br />
costs provide our franchisees with an over 2:1<br />
investment ratio.<br />
For more information on Tropical Smoothie Café<br />
opportunities, call (770)-580-2345<br />
www.tropicalsmoothiefranchise.com<br />
REAL ESTATE<br />
HomeVestors of America<br />
Startup Investment: $42,000 – $283,250<br />
Cash Requirement: $50,000<br />
Total Units: 680<br />
We’re America’s #1 home buyer, instantly<br />
recognized across the country as the “We Buy<br />
Ugly Houses®” company. This strong brand<br />
awareness, together with our powerful marketing<br />
strategy, generates a steady stream of leads.<br />
We offer financing for buying and rehabbing<br />
qualifying houses, and an initial five-day training<br />
class followed by ongoing support. HomeVestors<br />
offers a Full Franchise as well as an Associate<br />
Franchise, either of which may be operated on<br />
a full-time or part-time basis.<br />
For more information on HomeVestors of<br />
America opportunities, call (800) 704-6992<br />
or visit www.homevestorsfranchise.com.<br />
HOME SERVICES<br />
HouseMaster<br />
Startup Investment: $60,100 – $107,900<br />
Cash Requirement: $75,000<br />
Total Units: 314<br />
For the past 35 years, HouseMaster has<br />
been helping people from a diverse array of<br />
backgrounds realize their dreams of business<br />
ownership. A HouseMaster franchise is one of<br />
the most affordable ways to develop a successful<br />
business in the growing home inspection<br />
industry. As part of the HouseMaster team, you<br />
will receive all of the training, systems, tools, and<br />
support you need to be successful. Your passion<br />
will be rewarded when you give customers<br />
peace of mind about their purchase as well as<br />
knowledge to protect their greatest investment;<br />
their home. It is truly a great time to join the<br />
HouseMaster team!<br />
For more information on HouseMaster<br />
opportunities, call (800) 526-3930 or visit<br />
www.housemaster.com/fbr.<br />
SENIOR CARE<br />
Visiting Angels<br />
Startup Investment: $67,935 – $92,685<br />
Cash Requirement: $40,950 – $48,950<br />
Total Units: 546<br />
Visiting Angels has established over 500 nonmedical<br />
senior home care franchises in 48 states<br />
across the United States. Our national advertising<br />
and marketing generates thousands of home<br />
care leads that are distributed to our franchisees<br />
every month. Visiting Angels has been ranked #1<br />
in the home care industry and #3 in the <strong>Top</strong> 50<br />
Best of the Best franchises.<br />
For more information on Visiting Angels<br />
opportunities, call (800) 365-4189 or visit<br />
www.livingassistance.com.<br />
Senior Care continued<br />
Home Care Assistance<br />
* FirstLight HomeCare<br />
Right at Home<br />
* Homewatch CareGivers<br />
* BrightStar Care<br />
Interim HealthCare<br />
* Qualicare Family Homecare<br />
Assisting Hands<br />
Nurse Next Door<br />
SERVICES<br />
Precision Concrete Cutting<br />
Truly Nolen of America<br />
* Two Men and a Truck<br />
The Mosquito Authority<br />
* Window Genie — more on p.20<br />
Men In Kilts<br />
* Mosquito Joe<br />
A All Animal Control<br />
Linc Service Network<br />
Fish Window Cleaning Services<br />
Complete Weddings and Events<br />
Service Team of Professionals<br />
College Hunks Hauling Junk<br />
FRSTeam<br />
Creative Colors International<br />
The Traveling Photo Booth<br />
Critter Control<br />
* U.S. Lawns<br />
You Move Me<br />
Leather Medic<br />
* Mosquito Shield<br />
101 Mobility<br />
Boulder Designs<br />
Glass Doctor<br />
SPORTS & REC<br />
* Pinot’s Palette — more on p.21<br />
* Painting with a Twist<br />
American Poolplayers Association<br />
Kampgrounds of America/KOA<br />
Bottle & Bottega<br />
Sky Zone<br />
APEX Fun Run<br />
GameTruck<br />
TECHNOLOGY<br />
TeamLogic IT<br />
TRAVEL<br />
* Cruise Planners<br />
* CruiseOne<br />
Expedia CruiseShipCenters<br />
Visit FBR50.com for brand details.<br />
For more information on the companies in this report, visit www.FBR50.com | 19
SPECIAL REPORT: <strong>Top</strong> <strong>Food</strong> <strong>Franchises</strong> // MARKETPLACE<br />
SERVICES<br />
Window Genie<br />
Startup Investment: $89,800 – $139,000<br />
Cash Requirement: $60,000 – $80,000<br />
Total Units: 205<br />
Window Genie is a nationally ranked mobile<br />
service franchise offering residential and light<br />
commercial window cleaning, window tinting,<br />
pressure washing and more. Our owners are<br />
able to establish repeat and referral clients that<br />
provide multiple streams of revenue year-round.<br />
Franchisees are drawn to the Window Genie<br />
opportunity because it’s simple, scalable and<br />
offers entrepreneurs a chance to go into business<br />
for themselves but never by themselves. Our<br />
owners are successful because they believe in<br />
their business and trust the system Window<br />
Genie has worked to develop and improve for<br />
over 20 years.<br />
For more information on Window Genie<br />
opportunities, call (800) 700-0022<br />
or visit windowgeniefranchise.com.<br />
It’s All About the EBITDA<br />
EAST COAST<br />
WINGS+<br />
grill<br />
Celebrating 12 years of same store<br />
sales growth<br />
Contact Brett Larrabee, CFE<br />
1-800-381-3802 or<br />
brett@eastcoastwings.com<br />
www.EastCoastWings.com<br />
E<br />
Unparalleled Unit Level Support includes:<br />
- an entire division dedicated to Unit Economics<br />
Full Service Restaurants - listed<br />
as <strong>Top</strong> Franchise Value<br />
Our Franchisees Averaged<br />
$305,088.81 in 2015<br />
- data-driven profitability analysis<br />
- assistance with local store marketing<br />
“Future 50” in growth for<br />
small chains in America<br />
*This advertisement is not an offering of a franchise. An offering can be made only by prospectus. We only<br />
sell franchisees in states where our offering is registered. “EBITDA as submitted by our full service franchised<br />
restaurants operating in 2015 as published in item 19 of our April <strong>2016</strong> Franchise Disclosure Document.<br />
Individual financial performance will vary.”<br />
©<strong>2016</strong> East Coast Wings & Grill All Rights Reserved<br />
2Lead generation ad 6.13.<strong>2016</strong>.indd 1<br />
6/13/16 2:32 PM<br />
20 | For more information on the companies in this report, visit www.FBR50.com
SPORTS & RECREATION<br />
Pinot’s Palette<br />
Startup Investment: $74,100 – $194,100<br />
Cash Requirement: $80,000<br />
Total Units: 74<br />
Pinot’s Palette is a pioneer of the paint and sip<br />
experience – a revolutionary way to enjoy art and<br />
wine, meet new people and bond with friends.<br />
With 147 locations open or under development<br />
across 33 states and Canada, and new locations<br />
popping up monthly, Pinot’s Palette is the world’s<br />
fastest growing paint and sip franchise. Guests<br />
enjoy a no-experience-required art class—all<br />
supplies included— that is directed by trained,<br />
local artists who guide them step-by-step<br />
through a featured painting. By bringing fun,<br />
modern and creative ideas to their events, Pinot’s<br />
Palette curates a unique, rewarding experience<br />
while providing a worthwhile contribution to the<br />
community.<br />
For more information on Pinot’s Palette<br />
opportunities, call (844) 287-4668 or visit<br />
www.pinotspalette.com/FBR50.<br />
YOU GET MORE THAN JUST A FRANCHISE<br />
WITH GROUND ROUND<br />
DEBT FREE BRAND, OWNED BY ITS FRANCHISEES<br />
• Flexible 5 and 10 year term options<br />
• Membership Option offers a stake in the brand with preferred royalty rates and terms<br />
• No National Ad Fund – you control your marketing dollars locally<br />
• Single or Multi-unit Development available and Conversions are welcome<br />
• Choice of Two Brands: Ground Round Grill & Bar (Full Service)<br />
and Ground Round Sports Grille (Non-Traditional)<br />
• Ground Round ranked #3 In FBR <strong>Top</strong> 40 <strong>Food</strong> Report - (Sept.2015) *<br />
• Five Consecutive Years of Positive Comp Sales Growth **<br />
*Satisfaction Survey of Ground Round Franchisees – April 2015, Conducted independently by Franchise Business Review (FBR).<br />
**Comp Sales Growth data includes only full service restaurants with full year, comparative sales through December 2015. Sales from new, non-comp locations not included.<br />
For More Information on Our Brand & Franchise Opportunities<br />
Visit www.groundround.com<br />
FROM $2,000 TO $20 MILLION<br />
Financing that’s quick, easy and affordable.<br />
I found Direct Capital to be professional,<br />
timely & competitive.<br />
– Dawn Lafreeda, Denny’s Franchisee<br />
New Stores<br />
Development Lines<br />
Remodels<br />
Relocations<br />
Working Capital Loans<br />
Acquisitions &<br />
Partner Buy-Outs<br />
Equity Advances<br />
Equipment &<br />
Technology Upgrades<br />
Get started now:<br />
Franchise.DirectCapital.com or 888-501-6846<br />
© <strong>2016</strong> Direct Capital, A Division of CIT Bank, N.A. All rights reserved.<br />
For more information on the companies in this report, visit www.FBR50.com | 21