Best Franchises

Submitted by Bob Frankman on Wed, 2007/10/31 - 15:36.

I am devoting a forum in which we hash out which franchise systems are the best of the best. There's just so many bogus lists out there. This is a place in which our resident franchise experts can post who they think is really top-notch, and why.

Then defend their choice.

This is sort of a franchise analyst corner. So who dares stick out their neck with their own list and why?

Here's some resources of existing lists of the best of franchises:

No votes yet
‹ Red Robin Defunct Concepts ›

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Measures To Determine Which Franchise Is Best

Submitted by Bob Frankman on Wed, 2007/10/31 - 15:58.

In my opinion, strong systems to invest in have these going for them:

  1. Age (stability): 10+ years
  2. Size (stability again): 250 units
  3. Strong profits
  4. Satisfied franchisees: 85% + satisfaction on 70% of surveys submitted
  5. Corporate officers and executives who seem to be able to out-think and out-perform their competitors

I agree with the Startup Journal. Franchise chains need at least 10 years of existence and over 250 franchises for me to consider them.

Then comes the hard part - I want strong metrics in store profits and then franchisee satisfaction. And then the unscientific guess of how on the ball top management is.

That's my list.

I'm uncertain on what is strong profits. And should we measure gross margins? Net margins - 15%???

And then comes the difficult effort in matching those fields.

Ex-Broker's Best Franchise List

Submitted by Don Sniegowski on Thu, 2007/11/08 - 16:35.

Bob,

Very nice forum.

I spoke with Rick Eggleton, an old time franchisee (Wendy's) and broker. Having left franchise brokering (FranNet) and franchising quite a few months ago, Rick shares his list of the top four franchise systems that he would consider if he were buying a franchise.

  1. Express Personnel
  2. Maid Brigade
  3. Cash Plus
  4. Jan Pro

He felt that the leadership in these firms where in a league of their own and had helped create some exceptional systems.

Let's keep the Best Franchises forum going

Submitted by Guest on Fri, 2007/12/28 - 23:32.

This is a good forum for those of us that are in the early stages of looking for a high quality franchise. Let's keep it going. I'd like feedback/opinions on two of the concepts that were mentioned multiple times here already.

1) Maid services. Eggleton and Frankman mentioned Maid Brigade, and Franpro mentioned Molly Maid
PRO: Taps into growth trends - time starved dual income families and boomers inclined to spend on home services. Long track record, almost 30 years. Recurring revenue. Simple business model.
CON: In for a rough ride if the economy tanks (more of a luxury than a necessity)? Lots of lower-skilled employees to manage. Past the "sweet spot" in the lifecycle - beyond the big growth stage, most good territories gone?

2) Senior care. Frankman and Franpro both mentioned Brightstar Healthcare
PRO: The biggest of the big trends - the growth of the senior population. This is not a fad, it's not going away, and health care can't be put off or ignored. Brightstar is one of the few franchises that handles medical as well as non-medical home care, and medical staffing. This could be an advantage over the many franchises that only handle non-medical home care. It allows for multiple revenue streams, higher billing rates (and higher margins??). Low real estate costs. Recurring revenue.
CON: The complexities that go along with the medical business - licensing, liability, insurance billing hassles. Many employees to recruit and manage. Lots of relationships to manage - clients, caregivers, referral sources. Heavy selling required.

Let's Keep the Best Franchises Forum Going

Submitted by Corporate_Refugee on Sat, 2007/12/29 - 09:29.

This is a good forum for those of us that are in the early stages of looking for a high quality franchise. Let's keep it going. I'd like feedback/opinions on two of the concepts that were mentioned multiple times here already.

1) Maid services. Eggleton and Frankman mentioned Maid Brigade, and Franpro mentioned Molly Maid
PRO: Taps into growth trends - time starved dual income families and boomers inclined to spend on home services. Long track record, almost 30 years. Recurring revenue. Simple business model.
CON: In for a rough ride if the economy tanks (more of a luxury than a necessity)? Lots of lower-skilled employees to manage. Past the "sweet spot" in the lifecycle - beyond the big growth stage, most good territories gone?

2) Senior care. Frankman and Franpro both mentioned Brightstar Healthcare
PRO: The biggest of the big trends - the growth of the senior population. This is not a fad, it's not going away, and health care can't be put off or ignored. Brightstar is one of the few franchises that handles medical as well as non-medical home care, and medical staffing. This could be an advantage over the many franchises that only handle non-medical home care. It allows for multiple revenue streams, higher billing rates (and higher margins??). Low real estate costs. Recurring revenue.
CON: The complexities that go along with the medical business - licensing, liability, insurance billing hassles. Many employees to recruit and manage. Lots of relationships to manage - clients, caregivers, referral sources. Heavy selling required.

Top 8 Franchise Recommends

Submitted by Bob Frankman on Wed, 2007/10/31 - 23:17.

From the Gut, My First Pass

Before getting methodical, below is my short-list of franchise networks. I tend to like satisfied franchisees because they know best what is happening in the system. I think these companies have positive long-term demographic trends and management talent that can out-think and out-implement their competitors. These companies run circles around their competitors.

  1. McDonald's (Can't get much more established in age or size. Brilliant management that moves the world's largest franchise network smarter and faster than competitors many times smaller. No franchisee revolts detected yet.)

  2. Great Harvest Bread (Growth, franchisees who are really pleased, and a franchisor with less constricting franchise rules)

  3. Motel 6 (Accor gets major kudos for working with AAHOA franchisees to meet 12 points of fair franchising)

  4. IHOP (and after some initial bumps, I predict the new acquisition of Applebee's will have franchisees pleased. IHOP has great management that understands franchisees and operations)

  5. Express Personnel (Smart management & Franchisees who are really pleased)

  6. ReBath LLC (Franchisees who are really pleased)

  7. BrightStar Healthcare (Long-term trends are good and franchisees who are really pleased)

  8. Maid Brigade (Long-term trends are good for this segment and their franchisees are really pleased)

Weakness? No metrics, particularly no measurement of earnings estimate (store profits).

Now how about you professional franchise experts? Come on. Let's get some courage and come out with it.

Item 20 Ranter can't name 5 franchise concepts worth a look!

Submitted by Truth in Franchising on Mon, 2007/10/29 - 18:21.

Because he is consumed by his hatred of franchising.  

The Truth Shall Set You Free!

TIF

Franpro's Additions to the list

Submitted by franpro on Fri, 2007/11/09 - 04:27.

Here are a few from me:

Synergy HomeCare

BrightStar Health Care

Molly Maid

McDonald's

The Little Gym

Quiznos

{kidding} 

Frannet 

{Gimme a break} 

 

Rick,

The only issue I have with your list {Don't I know you from somewhere?} is the Cash Plus franchise.

I have met the folks there, and I like them a lot. The business itself is having huge PR problems. The public at large perceives the check cashing business as a huge rip off arrangement, and legislators are going to be coming up with new laws with interest rate caps, which will affect the franchisees bottom line, and other regulations. Even though Cash Plus may not offer the payday loan service {I am not sure} it is still right in the middle of it. And for the record, I think that the services of a check cashing franchise are needed, it is just a matter of them doing the right thing. if they do, I will raise my rating.

Franpro

The Franchise King Blog 

Sorry I didn't see this sooner...

Submitted by Dan Maizner on Sun, 2008/03/09 - 11:42.

I'd look deeper into the backgrounds of the executive team running Jan-Pro Franchising of Georgia...

Fantastic Post -

Submitted by Truth in Franchising on Thu, 2007/11/01 - 05:59.

Well put, this how someone should begin their due diligence process.

The Truth Shall Set You Free!

TIF

Nobody will recommend five good franchises on Blue Mau Mau

Submitted by Guest on Mon, 2007/10/29 - 19:56.

TIF continues to amaze me. Apparently, he and the other pro-franchise posters won't get out here and recommend five good franchises and he wants Item 20 Ranter to do so? I notice that Forbes published 10 Good Reasons NOT to buy a franchise and TIF apparently can't counter with 5 good franchise concepts that he would recommend as good buys.

If Item 20 is consumed by his hatred of franchising, TIF must be consumed with his hatred of Item 20 Ranter or the message of the Item 20 ranter and he just resorts to idiotic and repetetive messages that the Item 20 Ranter can't name 5 franchise concepts worth a look!

It may be that there are only about five retail franchise opportunities where the franchisees do, on average, survive the long-term contracts and sell their businesses at breakevn or at profit at the end of the term, or before the end of the term. (I am waiting for the franchisor advertisements in 2020 to loudly proclaim that 90% of their franchisees survive the contract terms and make profits.)

TIF doesn't think it is malicious of franchisors to sell long-term franchises to the public, and obscure the risk, when their internal performance statistics indicate that these new franchisees have a very high risk of failure before the expiration of the contract term. Or, maybe TIF doesn't really understand and doesn't want to understand anything about the success or failure rate of franchises and this helps him to protect his innocence.

This may be why he can't name and recommend 5 franchise concepts. Poor TIF. What kind of advice does he give his clients?

Because franchisors are not required to disclose performance statistics on their first-generation franchisees, the problem is compounded over the years in UFOC's and it is only the franchisors who have the information concerning the success/failure rate of their franchisees ----and they aren't required under law to share these statistics with new prospects or the government. This is very convenient and enables churning out of view of prospective franchisees and the government and the brokers and the advisors, etc.. who do find that ignorance of the actual failure or success rate of what they are selling provides a kind of "bliss" that permits them to protect the illusion that they have integrity and are selling something of value to their clients.

Look below. Frankman is throwing his hat into the ring.

Submitted by Guest on Wed, 2007/10/31 - 12:51.

good for him. any chance you'll do the same? if the guy doesn't like the franchising model, why should he have to name five good franchises? you are obviously an advocate of franchising so why aren't you naming five good franchise investments yourself? you have yet to answer this question...

you need to either stop your obsession with harassing this guy who posts regarding the UFOC Item 20 or somebody needs to ban your IP address from accessing this web site.

More than 5 Good franchises

Submitted by Guest on Tue, 2007/10/30 - 10:15.

Just my opinion but there are more than 5 out there and you would have to be an idiot not to know this!

McDonald's
Panera Bread
IHOP
Red Robin
Taco Bell
Pizza Hut
KFC
Domino's
Papa John's
Applebee's
Wendy's
Dunkin Donuts
Jackson Hewitt
Pearle Vision
Microtel
Hilton Garden Hotels
Choice Hotels
Marriott Hotels
Sonic Hamburgers
Qdoba
Jack In the Box

Waiting "patiently" for five good ones from Frankman

Submitted by Guest on Wed, 2007/10/31 - 13:02.

While we are waiting "patiently" for Frankman to post his FIVE recommendations ----his FIVE Good ones, maybe we could think about the criteria that is used to identify and recommend a franchise to a prospective franchisee investor.

Any suggestions.

You sound very much like the Item 20 Ranter...

Submitted by Truth in Franchising on Tue, 2007/10/30 - 09:44.

Why don't you anonymously register so we discern you from the Item 20 Ranter unless of course that is who you are? 

The Truth Shall Set You Free!

TIF

P. S. I do not have clients or broker franchises.

Will someone name a few good franchises

Submitted by Do Diligence on Sat, 2008/03/08 - 20:46.

I would love to hear of at least 10 good franchises. Just curious.

Item 20 Poster dose not know these franchises!

Submitted by Guest on Tue, 2007/10/30 - 10:20.

So there you have it and what dose it make him?

Gus

Waiting "patiently" for five good ones from Frankman

Submitted by Guest on Wed, 2007/10/31 - 19:24.

Waiting for those five good picks ---five good franchises from Frankman, and, of course, you will post your criteria on which you base your picks, huh!

It's Halloween and trick or treat time but maybe tomorrow you will have more time to post your five picks for us ---after the ghosts and goblins have retired.

Is Applebee's a Franchise? --Thanks for the Recommendations

Submitted by Guest on Tue, 2007/10/30 - 19:18.

I know they are being acquired by IHOP who is a successful franchisor who Richard Solomon likes and this was a big money deal but it will be interesting to see if Applebee's survives as a franchise and produces profits for the franchisees.

Don't Domino's and Dunkin Donuts have problem and I remember Domino's has a high SBA default rating that doesn't even take into consideration the failures that are hidden in the Item 20 transfer colums?

I assume TIF that you are vouching for these very visible franchise opportunities but that you have no idea or interest, personally, in what the failure rate is for first-generation franchisees. Is this correct.

While high visibility always indicates a profitable franchisor, this visibility doesn't always translate to viability of the plan for first-generation franchisees.

Ye of Little Courage

Submitted by Bob Frankman on Tue, 2007/10/30 - 19:41.

Why be anonymous in coming up with a top 5 best list?

OK. I'm coming up with my list of top five, slackers. Most importantly, I'm going to go on record on why I selected them.

Frankman

Good Franchises

Submitted by Bob Frankman on Sun, 2008/03/09 - 08:35.

You should go to the forum discussion of good franchise concepts.

  1. Blue MauMau's best franchises forum
  2. Then take a look at the poll of most popular best franchise lists. It's on the front page, right-hand side.
  3. FranSurvey's franchise list of most satisifed owners gets the skinny from those who know the inside scoop. I'm assuming Mr. B must like the list to put it in the tools section. It's also ranked highly in the poll of franchise lists.
  4. Finally, any firm who likes the transparency of Blue MauMau and advertises here look mighty fine in my book. Their comfortableness with open discussion from owners and experts in the light of day is something rare and makes them stand-out among their cowering competitors.

Re: More than 5 Good franchises

Submitted by Guest on Sun, 2008/03/09 - 13:35.

Beware of the Dunkin Donuts franchise agreement; it is plain nasty. Too, I understand they are termination-happy (spelled churning).

Don't assume

Submitted by RichardSolomon on Wed, 2007/10/31 - 01:37.

Don't assume that Applebees franchisees will benefit in the short term from an IHOP acquisition of their franchisor. What Julia Stewart will do in the rebranding of the concept should be expected to include some substantial additional capital investment on the part of franchisees, the return on/of which may be slow. Franchisor financial performance is not a direct reflection of/upon franchisee performance.

Richard Solomon, www.FranchiseRemedies.com,  has 44 years experience with franchise litigation and crisis management.  Trouble is his speciality. He is a graduate of The Citadel (A.B. Modern Languages) and The University of Michigan Law School

As usual you don't know very much Mr. Item 20 Ranter

Submitted by Truth in Franchising on Tue, 2007/10/30 - 19:50.

The brands you mention have fine track records I would recommend folks consider them.

Brave enough to name your five yet?

The Truth Shall Set You Free!

TIF

Name your 5 concepts worthy of consideration Mr. Item 20 Ranter

Submitted by Truth in Franchising on Tue, 2007/10/30 - 19:31.

 Coward!

The Truth Shall Set You Free!

TIF

Top 5 and Reasons

Submitted by michael webster on Tue, 2007/10/30 - 19:44.

Good for you, Bob.  The reasons for a top 5 are more important than the actual list.

Michael Webster PhD LLB

Franchise News

IHOP to Franchise Majority of Applebees

Submitted by Bob Frankman on Wed, 2007/11/07 - 21:12.

Most Applebee's are corporate owned. But now that IHOPs acquisition of big guy Applebee's has been approved, it has announced plans to convert most of the corporate restaurants to franchises.

Managing franchises is something that IHOP's current CEO and top management is quite good at.

I saw Quiznos on that list

Submitted by Do Diligence on Sun, 2008/03/09 - 09:13.

Turned me off right away.

WSJ Top 25 List Gone?

Submitted by Bob Frankman on Tue, 2007/10/30 - 21:32.

Anyone know why the Wall Street Journal has unpublished its Top 25 Franchise List from Feb of 2006 and has nothing for 2007?

Here is as close as I can come to reconstructing the Startup Journal's 2006 List of Top 25 Franchise Systems from a FranData list. FranData explains:

"In tandem with the Franchising High Performers List (blank page, no longer available) at the Wall Street Journal's StartupJournal.com, this Snapshot Report provides highlights of each franchise system."

Only 24 are listed in alphabetical order and not by preference. McDonald's is listed, even though the copy of the Startup Journal said they had been taken off because the chain merged data from multiple brands.

  1. Abbey Carpet Systems
  2. Assist-2-Sell
  3. Banfield, The Pet Hospital
  4. Batteries Plus
  5. Cici's Pizza
  6. Cruise Planners
  7. Curves For Women
  8. Domino's Pizza
  9. Friendly's Restaurants
  10. Home Instead Senior Care
  11. Huntington Learning Centers
  12. Jimmy John's
  13. Keller Williams Realty
  14. McDonald's
  15. Pizzeria Uno
  16. Rita's Water Ice
  17. Round Table Pizza
  18. Servpro / Domesticare
  19. Sport Clips
  20. Stanley Steemer Carpet Cleaner
  21. Subway
  22. Supper ThymeSubway
  23. Tow Men and a Truck
  24. Vision Source

Note: This is not my list of Top 5 but I used it as reference.

What List Has Q?

Submitted by Bob Frankman on Sun, 2008/03/09 - 09:48.

I saw Quiznos on that list too - Entrepreneur.com from years past.

That is quite a fall for the quick-service restaurant chain, who ranked #2 in years past (see 2006).

Guess

Submitted by michael webster on Tue, 2007/10/30 - 21:32.

I think that "startupjournal" is no longer being used by wsj.  The WSJ link for franchising is here. Try searching it for the top 25 franchises.

Michael Webster PhD LLB

Franchise News

Yes it is quite a fall

Submitted by Do Diligence on Sun, 2008/03/09 - 09:49.

I checked the other sites also. Just because a franchise is on a list you still should do killer due diligence regardless. I am zee gun shy..

Startup Top 25 Coming Up Blank

Submitted by Bob Frankman on Tue, 2007/10/30 - 21:43.

I tried. The page on Franchising High Performers List is no longer available.

I hadn't heard that the Startup Journal is no longer being used by the WSJ.

It still has the look, colors and URL of the WSJ. But on the other hand, the IFA ads and tools are overpowering the editorial. Hard to believe the WSJ would allow that.

Which List?

Submitted by Bob Frankman on Sun, 2008/03/09 - 10:06.

I saw Q on a list too, but which one? They ARE NOT mentioned in:

  • WSJ's 25 Top Franchises 
  • Entrepreneur.com Best List, 2008  
  • FranSurvey 25+ Satisfied Franchises
  • 14 AAFD Fair Franchising Seal Recipients
  • Blue MauMau's Best List Discussion Forum
  • Franchise Times, 55 Fastest Growing Franchises

Warning: Kiddies, never get lazy and use someone else's list of top franchises as a substitute for your own due-diligence.

Having said that, how many of you out there even have a clue on who franchises well? Even our esteemed "Do Diligence" has to ask.

Top 25

Submitted by michael webster on Tue, 2007/10/30 - 21:54.

It takes a bit of looking, but the Top 25 is here.  WSJ changed their line up several months ago and startup journal is no longer part of WSJ's plans.  But the new pages are also free.

Michael Webster PhD LLB

Franchise News

Go to forum on BMM

Submitted by Do Diligence on Sun, 2008/03/09 - 10:32.

Success stories. There is a long list of zee's who claim to make a profit. In my opinion when looking for a good franchise you should ask many questions. The truth is even if the zor discloses certain factors you have to verify everything they say. I learned it the hard way. By the way I did ask many many guestions. Only to be lied to. How, what , when, why, where, has always been my means of communication in business and raising my children.

There has to be some good zees out there

Submitted by Do Diligence on Sun, 2008/03/09 - 12:02.

I know there has to be. But when one has been burnt you tend to be more cautious. I still believe there is not too many good ones out there. I talked to several franchise lawyers and they say the same. The lawyer I have been talking to has case after case of files of unhappy zees. He actually supports his firm. He claims the other lawyers have one or two cases and he rarely has time to come up for a breath of air. Talked to him 4 times. Even my visit he was talking on the phone. Our hour long appointment ended up to be 10 minutes. He actually got a zee's money back because in the state of Wa. you have to have a license to sell a franchise. On that merit alone the zee won. Do all lawyers and zors have to be arrogant? I found this as a common tract of the zor and a lawyer. Or its just an act of false confidence that they have to show the world? (I'm not talking about Michael or Solomon.) But I wouldn't want to butt heads with those two in court.

No Startup Journal Top 25 List

Submitted by Bob Frankman on Wed, 2007/10/31 - 07:24.

Alright. I admit it. I'm a dense guy. But all I see is an introductory page on the Startup Journal's Top 25. No list. Not even a link to a list.

Even if there were a top 25 listing in 2006 (which again, I don't see), there's nothing published in 2007. The list of the Journal's top 25 selections has quietly gone away.

Instead of the list, what I see now is a big ad portal for franchisor members of the IFA.

Suspicious. Did its new Entrepreneur section dump picking best franchises so that it could have the ad revenue that the IFA's ad portal brings?

WSJ List

Submitted by michael webster on Wed, 2007/10/31 - 07:32.

Bob, the list was constructed by Frandata, and invididual reports can be ordered here.  

Michael Webster PhD LLB

Franchise News

WSJ ---The World's Most Respected Business Paper ?

Submitted by Guest on Wed, 2007/10/31 - 10:14.

Over the years, now and then, I have read the Wall Street Journal and have always had great respect for this great American paper that is read widely throughout the world.

But, I once had an experience where I found that they had not completely or accurately reported on a situation and had ommitted to mention a government Regulation that applied to the matter and that was material to the matter they were reporting.

I did call them and told them that I was shocked at their bad reporting and I expected that they would include this very material information in their next article on this subject matter. I was gratified to see that they did correct the impression that was given their readers in the first article a few weeks later, but the correction was buried deep within the new article in a short paragraph mentioning this aspect of the law.

I think someone at WSJ told me when I called that they got their information straight from the government so I assume that this was why the mistake was made to begin with. Bad intelligence and bad reporting to the people has a price and government needs to be very careful that they don't use the media and the press to lie to -- or to spin the people. And media has to be very careful to check their stories to make sure they are correct. I believe I told the person I talked to that I couldn't understand why they didn't know when, I, just a citizen who was impacted by the matter, did know.

I think it is very irresponsible of the WSJ to sponsor a Startup Journal and to imply that franchises are good investments without independent investigation as to whether or not these are good investments for new first-generation franchisees.

FranData Snapshots confirm DEAL FTC and IFA

Submitted by Guest on Wed, 2007/10/31 - 08:59.

This comment has been moved here.

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