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blogs (19)Links of web logs relating to franchise
blog writing advice (1)Advice and resources on writing and publishing on the Net
ceo interviews (24)Interviews of franchise CEOs in audio stream, podcast, video and written format.
journals (11)franchise and small business journals dedicated to help find the right franchise for buyers or provide management advice for small business owners.
legal beagles (3)links of legal issues and advice for buying and running a franchise
money (7)links involving financing and capital concerns of a franchise
research and studies (38)Here are government, academic and organizational studies and resources on franchises for potential franchise buyers and franchise owners.
California takes public disclosure to its logical conclusion. This is the state of California's online database that contains UFOCs of franchising firms who want to sell franchises in the golden state. Enter the name of the franchisor in the "company" field to see disclosure documents such as UFOCs, renewals, and exhibits submitted to meet California franchise law.
Fundamental advice on buying a franchise from the Office of the NY Attorney General.
The actual text of the FTC 's franchise rule . This is the benchmark that the FTC uses to gauge errant franchisors. Franchisors must furnish potential franchisees with written disclosures providing important information about the franchisor, the franchised business and the franchise relationship, and give them at least ten business days to review it before investing. Franchisors may make the required disclosures by following either the Rule's disclosure format or the Uniform Franchise Offering Circular Guidelines prepared by state franchise law officials.The Rule requires disclosure only. Unlike state disclosure laws, no registration, filing, review or approval of any disclosures, advertising or agreements by the FTC is required.
Profit Study Report (pdf format) commissioned by the IFA on 42 participating franchise systems to show the median profits for business services, retail, education and maintenance services franchises. The results show which industry has higher profit margins.
Nov 2005 survey of lodging general managers on the state of the industry (pdf file).
A list of articles on buying a franchise by Michael H. Seid & Associates, LLC. Mr. Seid is the co-author of the book Franchising for Dummies
This research paper (pdf format) from Deloitte Research show that a combination of technology, consumer and labor trends are producing a more decentralized, less consolidated grocery retail business. Small is beautiful.
The History Channel - The Founding Fathers kept their families well fed, and as the nation grew, so did we. Have Americans always been what they eat? A fascinating look at America's typical meals and calorie intake from 1776, 1876 and 1956. Guests: Cathy Kaufman, culinary historian and Chef-Instructor at the Institute of Culinary Education and Andy Smith, author of the ''Oxford Encyclopedia of Food and Drink in America.''
The Scarborough Research Restaurant Report is full of interesting facts on curious consumer eating habits at restaurants. According to the report, Americans like eating out. Just how much? Well, this much...
Here's a corporate profile on Obee's Franchise Systems, Inc. by the Wall Street Corner. It is in .doc format. Obee’s soups, salads & subs is a fast-casual, deli-style restaurant featuring nutritious soups, salads, & subs with an emphasis on fresh-sliced meats & cheeses. There are currently over 100 Obee's locations open or in various development stages.
Input your zip code and it spews out households, number of businesses, average income, etc. You can control the area and radius of the report as well. Want to make sure that the proposed territory for your new business / franchise has enough businesses to support it? Demographics guru will show it.
There are some likely mistakes in assumptions but here is a stake in the ground of what a Quizno's franchise makes -- care of a discussion thread at FranchisePundit
Research paper by the Center for Financial Research, FDIC that suggest that distance interferes with information collection and monitoring. Table 1 on page 48 lists SBA loan default rates.
Franchised businesses are expanding at a fast pace, while new franchise concepts are appearing in greater numbers, according to a 3 part series of International Franchise Association Educational Foundation / FRANdata studies about the sector. Part 2 is the meat of the study.
Onecle.com has a free collection of some 50 franchise agreements from various franchisers for your reading pleasure -- from Blimpie's to Rubio's. Some of these agreements are dated while others are relatively new.
This is a 62 page report of the economic census, the major source of facts about the structure and functioning of the nation’s economy. Franchised businesses were 3.7 percent of all employer respondent firms.
The Economic Census: The Characteristics of Businesses (pdf: 1614 pgs) from the US Census Bureau reports the largest sectors of franchising compared to the general industry to be:
- Accommodation and food service firms were most often franchised at 16.2 percent
- Followed by employment search firms (8.6 percent)
- And retail trade (7.1 percent)
The common business wisdom that restaurants fail as 90 percent to 95 percent in the first year is flat wrong, according to researchers at Ohio State University. A longitudinal study of restaurants found the failure rate for restaurants was 57 percent to 61 percent for a three-year period from 1996-1999. That compares favorably with other types of businesses.
Canadian Alliance of Franchise Operators (1998 - 2005)
A research report prepared for CPA Australia by the University of New South Wales.
January 2006
Executive summary Excerpt:
No Charge Download
January 2006
Executive summary Excerpt:
- Franchisees experienced a range of outcomes including taking the opportunity to go it alone, becoming part of another franchise system, financial loss, unemployment, and the associated consequences such as marriage breakdown and relocation.
- Franchisees have no automatic, statutory right to a voice at a franchisor's creditor's meeting because often they are not creditors.
No Charge Download
Self-Interest, Reciprocity, and Participation in Online Reputation Systems, Chrysanthos Dellarocas, Ming Fan, Charles A. Wood, MIT Sloan working Paper 4500-04, February 2004.
This paper (no charge download from Social Science Research Network, ssrn.com plus Abstract) suggests:
This is the first in-depth study of the motivations of trader participation in eBay's reputation system.
They find:
This paper (no charge download from Social Science Research Network, ssrn.com plus Abstract) suggests:
- reputation systems are an increasingly important component of online communities, and they
- help elicit good behavior and cooperation.
This is the first in-depth study of the motivations of trader participation in eBay's reputation system.
They find:
- 50 to 70% of voluntary online feedback is not driven by pure altruism ["do gooders"].
Jonathan J. Bean, associate professor of history at Southern Illinois University, is the author of Big Government and Affirmative Action: The Scandalous History of the Small Business Administration.
This .pdf is subtitled: An Historical Perspective on the Small Business Administration.
On balance he makes some excellent points.
The latest head of the SBA is a former ServiceMaster finance executive: an MBA with zero small business experience.
This .pdf is subtitled: An Historical Perspective on the Small Business Administration.
On balance he makes some excellent points.
The latest head of the SBA is a former ServiceMaster finance executive: an MBA with zero small business experience.
A big article but worthwhile to see if you or your clients can make such a claim.
Abstract:
Predatory lending - the practice of making exploitative high-cost loans to naive borrowers - has spurred policy-makers, activists, lenders and scholars to debate whether intervention is warranted and, if so, what type of intervention is appropriate. The solution requires understanding the incentives in the home mortgage market that have fueled predatory lending. Recent changes in the credit market have created new possibilities for lenders to profit by exploiting information asymmetries to the detriment of unsophisticated borrowers. As a result, a new, predatory lending market has emerged alongside the legitimate prime and subprime home mortgage markets. Neither market forces nor existing legal remedies are sufficient to correct predatory lending. Instead, government intervention is needed. The authors propose a new, narrowly tailored remedy - suitability - that would require predatory lenders to internalize the costs of the harm they cause.
Engel, Kathleen C. and McCoy, Patricia A., "A Tale of Three Markets: The Law and Economics of Predatory Lending" (September 1, 2001). Download without charge. 152 pages
Abstract:
Predatory lending - the practice of making exploitative high-cost loans to naive borrowers - has spurred policy-makers, activists, lenders and scholars to debate whether intervention is warranted and, if so, what type of intervention is appropriate. The solution requires understanding the incentives in the home mortgage market that have fueled predatory lending. Recent changes in the credit market have created new possibilities for lenders to profit by exploiting information asymmetries to the detriment of unsophisticated borrowers. As a result, a new, predatory lending market has emerged alongside the legitimate prime and subprime home mortgage markets. Neither market forces nor existing legal remedies are sufficient to correct predatory lending. Instead, government intervention is needed. The authors propose a new, narrowly tailored remedy - suitability - that would require predatory lenders to internalize the costs of the harm they cause.
Engel, Kathleen C. and McCoy, Patricia A., "A Tale of Three Markets: The Law and Economics of Predatory Lending" (September 1, 2001). Download without charge. 152 pages
An important article in understanding what private law could mean within the franchise industry. The public law is an ass in this area.
Abstract:
For the most part, the legal regime governing the emergence of the 21st C. commercial revolution is the product of the 19th C. Most importantly, our legal regime remains wedded to the role of public institutions, operating on bureaucratic rather than market principles, in developing the rules governing commercial relationships. While public law may be essential in the protection of the democratic values that shape the legal rights of individuals, the role of law in the commercial world is, or should be, principally about achieving efficient and productive commercial activity. In this paper I develop the rationale and principles for privatizing commercial law--meaning the private creation and enforcement of the substantive and procedural rules governing the commercial relations between economic entities--by exploring important examples of private legal regimes from the past and (futuristic) present. These examples are, principally, the merchant guilds and merchant courts of medieval Europe, the stock exchanges (particularly prior to SEC oversight), the private law developed by trade associations beginning in the late 19th century and, perhaps most intriguingly, the private regimes now emerging at an unprecedented pace on the Internet. Building on the analysis in a previous paper (The Price of Law: How the Market for Lawyers Distorts the Justice System), which documented the market failures traceable in large part to the monopoly provision of legal rules by the state as an insulated service provider, this paper examines how private legal regimes improve on public regimes in providing the legal structure necessary for efficient commercial relationships. The analysis sets out guidelines for exploring the central question of the appropriate role of the public regime in structuring private law-making institutions. Private regimes, it is argued, expose the process of law-making in commercial activity to competition and a far more efficient response to the complexities of modern commercial relationships and a rapidly changing environment. The guidelines drawn from both the middle and the digital ages are ones that take on immediate salience in light of the urgency of responding creatively to the revolution that is taking place in the commercial world and bringing commercial law into the 21st century. [my emphasis]
Hadfield, Gillian K., "Privatizing Commercial Law: Lessons from the Middle and the Digital Ages" (March 2000). Stanford Law and Economics Olin Working Paper No. 195. Download without charge, 66 pages.
Abstract:
For the most part, the legal regime governing the emergence of the 21st C. commercial revolution is the product of the 19th C. Most importantly, our legal regime remains wedded to the role of public institutions, operating on bureaucratic rather than market principles, in developing the rules governing commercial relationships. While public law may be essential in the protection of the democratic values that shape the legal rights of individuals, the role of law in the commercial world is, or should be, principally about achieving efficient and productive commercial activity. In this paper I develop the rationale and principles for privatizing commercial law--meaning the private creation and enforcement of the substantive and procedural rules governing the commercial relations between economic entities--by exploring important examples of private legal regimes from the past and (futuristic) present. These examples are, principally, the merchant guilds and merchant courts of medieval Europe, the stock exchanges (particularly prior to SEC oversight), the private law developed by trade associations beginning in the late 19th century and, perhaps most intriguingly, the private regimes now emerging at an unprecedented pace on the Internet. Building on the analysis in a previous paper (The Price of Law: How the Market for Lawyers Distorts the Justice System), which documented the market failures traceable in large part to the monopoly provision of legal rules by the state as an insulated service provider, this paper examines how private legal regimes improve on public regimes in providing the legal structure necessary for efficient commercial relationships. The analysis sets out guidelines for exploring the central question of the appropriate role of the public regime in structuring private law-making institutions. Private regimes, it is argued, expose the process of law-making in commercial activity to competition and a far more efficient response to the complexities of modern commercial relationships and a rapidly changing environment. The guidelines drawn from both the middle and the digital ages are ones that take on immediate salience in light of the urgency of responding creatively to the revolution that is taking place in the commercial world and bringing commercial law into the 21st century. [my emphasis]
Hadfield, Gillian K., "Privatizing Commercial Law: Lessons from the Middle and the Digital Ages" (March 2000). Stanford Law and Economics Olin Working Paper No. 195. Download without charge, 66 pages.
The Price of Law: How the Market for Lawyers Distorts the Justice System, Gillian K. Hadfield
A critical paper to see why Justice is unattainable in the public law arena. Clearly written; a must read.
Abstract:
This paper begins with the question, Why do lawyers cost so much? The analysis is an investigation of the imperfections in the market for lawyers, imperfections that have been largely overlooked by focus on either the model of perfect competition or the impact of artificial barriers to entry into the provision of legal services. The paper catalogues multiple sources of imperfection: the nature of the incentives and mechanisms at work to determine the level of complexity in the system; the extent to which complexity and uncertainty make legal services into credence goods par exellence; the winner-take-all and tournament nature of the competition among lawyers; the sunk costs of lawyer-client relationships and hence the potential for opportunism and the limited potential for conventional market mechanisms to control opportunism; the incremental nature of legal fees--which structures legal expenditures as a sunk cost auction in which the cost of services can easily and rationally exceed the amount at stake; and three sources of monopoly--the familiar monopoly established by artificial barriers to entry, the "natural" monopoly arising from the limited supply of individuals in the economy with the cognitive skills necessary to engage effectively in competitive legal reasoning, and the state's monopoly over coercive dispute resolution.
The analysis uncovers deeply disturbing implications for justice from the economics of the market for lawyers. The price dynamics of the system operate within the framework of a unified profession/unified legal system that essentially puts individual clients--with justice interests at stake--into a bidding contest with corporate clients with efficiency (more generally, market) interests at stake. Corporations by definition are aggregations of individual wealth and, as a consequence, are able to bid for the resources; they also are a richer feeding ground for the wealth extraction generated by the imperfections/monopoly aspects of the market for lawyers. This is not an ethical critique of lawyers; it is the implication of ordinary economic response to incentives structured by a non-competitive market.
The economic dynamics of the market for lawyers operate like a vacuum, drawing the resources of the system into the corporate sphere, in the service (from a public perspective) of efficiency, and away from the individual sphere, in the service of justice as in the relationships between the individual and the state, the market, the family, the community and so on. This stands on its head the lexicographic relationship between efficiency and justice: efficiency is of normative significance only to the extent it promotes individual welfare through just social relations.
The implications of the economic analysis in the paper are supported by the empirical evidence we have about the structure of the legal profession and the changes over the past several decades. The profession is roughly divided into two segments--one serving business clients and one serving individual clients. The business segment is populated by lawyers who graduated from elite institutions, who are well-connected and influential in the profession, who charge high fees and earn high incomes, and who are perceived to be in short supply. These lawyers work in large firms or high-end boutiques and are increasingly likely to be specialized. Their work is perceived to be of the highest level of prestige by all members of the profession. The personal segment is populated by lawyers who graduate from lower-tier schools, charge lower fees and often flat fees set in apparently competitive fashion providing largely routine, non-contested legal services such as house closings, uncontested divorces and wills. Their work is perceived, by them and the rest of the profession, as low prestige. Lawyers in this segment tend to work in solo practice or small general practice firms. The supply of lawyers in this segment is perceived to exceed demand, and there is evidence of un/underemployment and falling prices.
The allocation of total hours spent by lawyers on legal work is increasingly skewed towards the business segment of the profession, and thus towards the efficiency and away from the individual justice goals of the justice system. [my emphasis]
A critical paper to see why Justice is unattainable in the public law arena. Clearly written; a must read.
Abstract:
This paper begins with the question, Why do lawyers cost so much? The analysis is an investigation of the imperfections in the market for lawyers, imperfections that have been largely overlooked by focus on either the model of perfect competition or the impact of artificial barriers to entry into the provision of legal services. The paper catalogues multiple sources of imperfection: the nature of the incentives and mechanisms at work to determine the level of complexity in the system; the extent to which complexity and uncertainty make legal services into credence goods par exellence; the winner-take-all and tournament nature of the competition among lawyers; the sunk costs of lawyer-client relationships and hence the potential for opportunism and the limited potential for conventional market mechanisms to control opportunism; the incremental nature of legal fees--which structures legal expenditures as a sunk cost auction in which the cost of services can easily and rationally exceed the amount at stake; and three sources of monopoly--the familiar monopoly established by artificial barriers to entry, the "natural" monopoly arising from the limited supply of individuals in the economy with the cognitive skills necessary to engage effectively in competitive legal reasoning, and the state's monopoly over coercive dispute resolution.
The analysis uncovers deeply disturbing implications for justice from the economics of the market for lawyers. The price dynamics of the system operate within the framework of a unified profession/unified legal system that essentially puts individual clients--with justice interests at stake--into a bidding contest with corporate clients with efficiency (more generally, market) interests at stake. Corporations by definition are aggregations of individual wealth and, as a consequence, are able to bid for the resources; they also are a richer feeding ground for the wealth extraction generated by the imperfections/monopoly aspects of the market for lawyers. This is not an ethical critique of lawyers; it is the implication of ordinary economic response to incentives structured by a non-competitive market.
The economic dynamics of the market for lawyers operate like a vacuum, drawing the resources of the system into the corporate sphere, in the service (from a public perspective) of efficiency, and away from the individual sphere, in the service of justice as in the relationships between the individual and the state, the market, the family, the community and so on. This stands on its head the lexicographic relationship between efficiency and justice: efficiency is of normative significance only to the extent it promotes individual welfare through just social relations.
The implications of the economic analysis in the paper are supported by the empirical evidence we have about the structure of the legal profession and the changes over the past several decades. The profession is roughly divided into two segments--one serving business clients and one serving individual clients. The business segment is populated by lawyers who graduated from elite institutions, who are well-connected and influential in the profession, who charge high fees and earn high incomes, and who are perceived to be in short supply. These lawyers work in large firms or high-end boutiques and are increasingly likely to be specialized. Their work is perceived to be of the highest level of prestige by all members of the profession. The personal segment is populated by lawyers who graduate from lower-tier schools, charge lower fees and often flat fees set in apparently competitive fashion providing largely routine, non-contested legal services such as house closings, uncontested divorces and wills. Their work is perceived, by them and the rest of the profession, as low prestige. Lawyers in this segment tend to work in solo practice or small general practice firms. The supply of lawyers in this segment is perceived to exceed demand, and there is evidence of un/underemployment and falling prices.
The allocation of total hours spent by lawyers on legal work is increasingly skewed towards the business segment of the profession, and thus towards the efficiency and away from the individual justice goals of the justice system. [my emphasis]
Hadfield, Gillian K., "The Price of Law: How the Market for Lawyers Distorts the Justice System" (October 1999). Michigan Law Review, Vol. 98, No. 4, 2000. Download without charge, 84 pages.
Want Economic Growth?
raise Interpersonal TRUST.
Strengthening The Rule of Law through freedom is the mechanism. [speech, association, etc.]
Abstract:
Zak & Knack (2001) demonstrate that interpersonal trust substantially impacts economic growth, and that sufficient interpersonal trust is necessary for economic development. To investigate the ability of policy-makers to affect trust levels, this paper builds a formal model characterizing public policies that can raise trust. The model is used to derive optimal funding for trust-raising policies when policy-makers seek to stimulate economic growth. Policies examined include those that increase freedom of association, build civic cultures, enhance contract enforcement, reduce income inequality, and raise educational levels. Testing the model's predictions, we find that only freedom, redistributive transfers, and education efficiently and robustly stimulate prosperity.
They do this by strengthening the rule of law, reducing inequality, and by facilitating interpersonal understanding, all of which raise trust. [my emphasis]
Knack, Stephen and Zak, Paul J., "Building Trust: Public Policy, Interpersonal Trust, and Economic Development" (March 2002). 22 pages, SSRN: Abstract & Paper available at no charge
raise Interpersonal TRUST.
Strengthening The Rule of Law through freedom is the mechanism. [speech, association, etc.]
Abstract:
Zak & Knack (2001) demonstrate that interpersonal trust substantially impacts economic growth, and that sufficient interpersonal trust is necessary for economic development. To investigate the ability of policy-makers to affect trust levels, this paper builds a formal model characterizing public policies that can raise trust. The model is used to derive optimal funding for trust-raising policies when policy-makers seek to stimulate economic growth. Policies examined include those that increase freedom of association, build civic cultures, enhance contract enforcement, reduce income inequality, and raise educational levels. Testing the model's predictions, we find that only freedom, redistributive transfers, and education efficiently and robustly stimulate prosperity.
They do this by strengthening the rule of law, reducing inequality, and by facilitating interpersonal understanding, all of which raise trust. [my emphasis]
Knack, Stephen and Zak, Paul J., "Building Trust: Public Policy, Interpersonal Trust, and Economic Development" (March 2002). 22 pages, SSRN: Abstract & Paper available at no charge
FranchiseFool's Bookshelf offers significant resources for those interested in the study of franchising.
Les Stewart's conclusions are presented for you information.
This recent study suggests better disclosure laws will likely not assist with the core problems found in modern franchising.
The recent FTC work is a red herring.
Abstract
Informational regulation has been widely implemented as a cost-efficient alternative to conventional approaches. In the franchise sector disclosure is the primary tool of industry-specific regulation in many jurisdictions including Australia...
The research suggests that the standard form, long term nature of the contract and the nature of the primary relationship in the sector overall is inconsistent with the use of disclosure as the primary regulatory tool.
Spencer, Elizabeth C., The Efficacy of Disclosure in the Regulation of the Franchise Sector in Australia, European Network on the Economics of the Firm (ENEF) GREDEC, CNRS and University of Nice Sophia Antipolis, 2006. Download without charge, 55 pages.
The recent FTC work is a red herring.
Abstract
Informational regulation has been widely implemented as a cost-efficient alternative to conventional approaches. In the franchise sector disclosure is the primary tool of industry-specific regulation in many jurisdictions including Australia...
The research suggests that the standard form, long term nature of the contract and the nature of the primary relationship in the sector overall is inconsistent with the use of disclosure as the primary regulatory tool.
Spencer, Elizabeth C., The Efficacy of Disclosure in the Regulation of the Franchise Sector in Australia, European Network on the Economics of the Firm (ENEF) GREDEC, CNRS and University of Nice Sophia Antipolis, 2006. Download without charge, 55 pages.
Official statement in 2005 from the IFA asking its members not to use the 90% success rate of a franchise versus an independent from the Department of Commerce. IFA President Matthew Shay says the rate is "old and no longer valid".
The World Franchise Council's tries to keep track of franchise units by country. Their list is a work-in-process. Numbers are estimated and are quite soft in many cases. For example, it is falsely stated here that Mexico has 462,000 franchise units, making it the second largest market in the world. This is most likely a typographical error, since elsewhere on their website Mexico is shown to have 50,000. China is stated to have 120,000 but that is most likely a definitional problem of what a business-format franchise is.
According to the WFC, the U.S. has roughly 770,000 business-format franchise units.
A survey of Australia's Franchising Sector conducted by Griffith University's Service Industry Research Centre. It is similar to the International Franchise Association's KPMG survey of how important franchising is to the American economy. The survey shows impressive growth in franchising and importance to the Australian economy.
- There are approximately 960 business format franchise systems in Australia in 2006 compared with 850 in 2004 and 700 in 2002.
- The growth rate in franchised units from 2004 to 2006 was 14.6 percent.
- Franchising contributed 14 percent to Australia’s Gross Domestic Product (GDP) in 2005.
Note: The survey is a 79 page report in pdf format. The link is slow to upload in North America.
www.FranchiseBrief.com is an online directory of franchise opportunities.
Unlike major franchise directories, www.FranchiseBrief.com is FREE for franchise companies wanting to advertise their concept on this portal.
Unlike major franchise directories, www.FranchiseBrief.com is FREE for franchise companies wanting to advertise their concept on this portal.
This is a GREAT website with lots of useful information I haven't found anywhere else. Read the "Franchise Articles II" tab. It has a business reality checklist for evaluating any franchise investment. Below this is an informative article about how Mr. Franchise, Kevin B. Murphy, a franchise attorney, bought his first franchise in 2002 (in the home improvement industry), and his first-hand experiences in starting the franchise from scratch, then re-selling it a year later.
Wow, the Franchise Foundations website, in keeping with their statement of having information you won't find anywhere else, has just added some fascinating info about the iSold It debacle. Pretty amazing stuff. It's in the "Evaluating Franchise Investments" article, just before Mr. Franchise starts listing his franchise evaluation criteria.
Franchise Business Review is a national franchise market research firm that performs independent surveys of franchisee satisfaction. We examine the critical areas of a franchise system including training & support, operations, franchisor/franchisee relations, financial opportunity, and more. Our survey results deliver the unbiased facts about the overall health of a franchise system direct from today’s franchise owners.
The Franchise 50 Awards – Background Information
The 2007 Franchise 50 – Franchisee Satisfaction Awards have once again exceeded all expectations. Over 300 leading franchise systems, representing over 65,000 franchisees, registered for this year’s Franchise 50 project — which is now the largest survey of franchisee satisfaction ever completed. The end result is an exclusive list of companies that truly represents the best franchise opportunities in the marketplace today.
The 2007 list of franchises includes:
1
Heaven's Best Carpet Cleaning
Category: Cleaning & Maintenance Cash Req: $15,000 Total Inv: $24,900 - $60,000
Awarded Franchisor of The Year by Franchise Business Review! Our franchise provides the flexibility to balance work, family, fun, and financial independence.
Learn More | Request Franchise Information | Q&A
2
Home Instead Senior Care
Category: Senior Care Cash Req: $39,050 - $52,050 Total Inv: $39,050 - $52,050
A Home Instead Senior Care® franchise is an incredibly meaningful, unique and rewarding business. Since 1994, Home Instead Senior Care® has developed an amazing record of service to seniors. Now you can build on this strength and expertise to create a fulfilling business that offers non-medical home care to senior citizens in your area.
Learn More | Request Franchise Information | Q&A
3
Synergy Homecare
Category: Senior Care
4
i9 Sports
Category: Sports & Recreation Cash Req: $50,000 Total Inv: $39,900 - $64,900
Established in 1995 and located in Tampa, Florida, Momentum Franchise Systems, Inc., is the parent company for both i9 Sports® and Amp‘d Athletics™, which are the first and fastest growing amateur sports league franchises in the United States.
Learn More | Request Franchise Information | Q&A
5
FASTSIGNS International, Inc.
Category: Business Services Cash Req: $75,000 Total Inv: $205,000 - $297,000
Our mission is to help our franchise owners build gross sales and profitability. We realize our franchisees are our clients and will do whatever it takes to ensure their happiness and respect.
Learn More | Request Franchise Information | Q&A
6
Budget Blinds
Category: Home Services Cash Req: $55,000+ Total Inv: $80,000 - $111,000
If you’re looking for a thriving home-based business opportunity, Budget Blinds is the place to be. We’re a top- ranked, fast growing franchise company in one of the fastest growing industries in America – home decorating and home improvement. Our people are our greatest assets. Discover how you can become part of this winning team.
Learn More | Request Franchise Information | Q&A
7
Paul Mitchell School
Category: Health & Beauty
8
BONUS Building Care
Category: Cleaning & Maintenance Cash Req: $25,000 Total Inv: $50,000
In the world of commercial cleaning franchises there are many choices. While some other commercial cleaning franchise companies charge a premium for their services while delivering less, at BONUS Building Care, we believe that you can “Start Small and Make It Big!”
Learn More | Request Franchise Information | Q&A
9
CertaPro Painters
Category: Home Services Cash Req: $30,000+ Total Inv: $129,000 - $144,000
CertaPro Painters has invested millions of dollars in creating a brand. Whether you live in Boise or Boston, our promise of "Certainty" is the same; our marketing message is the same; the customer experience is the same. This consistency has enabled CertaPro to quickly build brand recognition and effortlessly capture market share.
Learn More | Request Franchise Information | Q&A
10
1-800-GOT-JUNK
Category: Services Cash Req: $70,000 Total Inv: $70,000 - $110,000
1-800-GOT-JUNK? is the world's first junk removal franchise with 231 Franchise Partners throughout North America and Australia. We are a young, dynamic company, set to dominate a new market niche.
Learn More | Request Franchise Information | Q&A
11
FocalPoint Business Coaching
Category: Business Services Cash Req: 50,000 Total Inv: 38,500 - 49,000
FocalPoint International, Inc., the world’s premiere business coaching and development franchise company, has formed a ground-breaking strategic alliance with Brian Tracy International, Inc., that will provide organizations and individuals with proven concepts, methodologies and skills developed in the most effective manner: long-term, one-on-one coaching.
Learn More | Request Franchise Information | Q&A
12
Adventures in Advertising
Category: Advertising & Sales Cash Req: $34,000 Total Inv: $34,000
LET AIA LEVERAGE YOU INTO YOUR PIECE OF AN 18 BILLION DOLLAR BUSINESS! Independent and entrepreneurial, you're not content to go through life on cruise control – you’re looking for a rewarding business ownership opportunity with high potential, low cost of entry, rapid start-up and a satisfying life style. That's where we come in.
Learn More | Request Franchise Information | Q&A
13
JumpBunch
Category: Child Services Cash Req: $35,200 - $77,200 Total Inv: $35,200 - $77,200
JUMPBUNCH offers structural sports and fitness programs for children 15 months to 6 years old, as well as for school age children ages 6-12. The classes are 30 minutes long, once a week, year-round, with over 70 activity plans. They are offered as part of a child's day at school, daycare, after-school program and rec departments. JUMPBUNCH is not a gym or facility; rather, we go out into the community to teach our classes.
Learn More | Request Franchise Information | Q&A
14
Stretch-N-Grow
Category: Child Services
15
Carlson Wagonlit Travel
Category: Travel & Hospitality
16
American Poolplayers Association
Category: Sports & Recreation
17
Tax Centers of America
Category: Financial & Tax Cash Req: $25,000 Total Inv: $34,999 - $45,975
Tax Centers of America (TCOA) is a franchise-based corporation specializing in income tax preparation, online and electronic tax filing for taxpayers who want their refund fast! Franchisees get to set their hours and run the day-to-day operations just like any other small business owner. The key difference is that franchisees enjoy the benefits of an established brand name, which assists you in building your customer base.
Learn More | Request Franchise Information | Q&A
18
Aire-Master of America
Category: Cleaning & Maintenance
19
Our Town America
Category: Advertising & Sales Cash Req: $40,000 Total Inv: $40,000
Our Franchisees do not need to maintain an inventory nor do they need a production facility – all production is performed at our corporate facility. Our Franchisees can easily work from a home office.
Learn More | Request Franchise Information | Q&A
20
Computer Troubleshooters
Category: Technology
21
Miracle Method Bath and Kitchen Restoration
Category: Home Services
22
Matco Tools
Category: Automotive Cash Req: $35,000 Total Inv: $73,000 - $170,000
Matco Tools is one of the top franchise opportunities out there. That's because Matco Tools provides you with the guidance, training, potential customer base, marketing and the on-going support you need to start your business. Our award winning franchise program provides you with a business process that will help you make sales and generate revenue from day one.
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23
MaidPro
Category: Cleaning & Maintenance Cash Req: $50,000 Total Inv: $40,000 - $70,000
Can you imagine how your life would be different if you had been in on the ground floor of a trend such as Starbucks coffee shops? Then you can imagine the opportunity that exists today for business ownership in the residential cleaning industry! Now is the time to create your own future in an industry the is experiencing truly explosive growth. With MaidPro's proven systems, success is only a question of your own motivation and hard work.
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24
SeaMaster Cruises
Category: Travel & Hospitality
25
Culver's
Category: Food
26
Disaster Kleenup International
Category: Cleaning & Maintenance
27
J.D. Byrider Systems
Category: Automotive
28
Central Bark Doggy Day Care
Category: Pet Services Cash Req: $60,000 Total Inv: $133,050 - $230,380
At Central Bark™ Doggy Day Care, we understand dogs and their need to exercise. Boredom leads to destructive behaviors. Socialization and play keeps a dog's body and mind active - and builds a healthier, happier, better behaving pet. That's why a dog's stay at Central Bark™ is always rich with activities and attention.
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29
Padgett Business Services
Category: Financial & Tax Cash Req: $20,000 Total Inv: $75,000 - $80,000
We offer small business advice and consultation, tax preparation, government compliance, financial reporting, complete payroll services, and other services important to small businesses.
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30
Pop-A-Lock
Category: Services Cash Req: $35,000 Total Inv: $90,000
Become part of the largest and most successful locksmith, car door unlocking, roadside assistance, and service provider in America. No industry experience is necessary. A business background is beneficial. Corporate customer opportunities in major and secondary markets to complement "core" revenue for the franchisee.
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31
The Little Gym
Category: Child Services Cash Req: $75,000 Total Inv: $193,500 - $274,500
We believe individual success is built upon confidence - confidence to embrace your dreams and make them a reality. But how do you get there? At The Little Gym®, the success of each franchise owner is built on the same thoughtful principle that we utilize every day as we nurture the children entrusted to our care: Motor Skill Development made Fun builds Confidence that leads to a lifetime of Success.
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32
Mighty Distributing System
Category: Automotive
33
1-800-RADIATOR
Category: Automotive Cash Req: $100,000 Total Inv: $150,000 - $500,000
Radiators? Yes! You are always in demand. A typical radiator wears out in 8 years. Your services and products are always needed. You do not need an automotive background. You do NOT fix or install radiators. You sell brand-new radiators with a life-time warranty. 1-800-Radiator is the largest distributor of radiators in the world. You will join a fast-growing group of franchisees across the country. You will have an exclusive territory. You will have the most advanced state-of-the-art tracking s
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34
Wild Birds Unlimited
Category: Specialty Retail
35
HomeVestors of America, Inc.
Category: Services Cash Req: $200,000 Total Inv: $200,700 - $370,250
HomeVestors® is the first and largest national franchise company for the professional real estate investor. HomeVestors franchisees are professional real estate investors who specialize in buying and selling undervalued houses. Experts estimate this to be a $10 billion industry in the United States.
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36
Sir Speedy, Inc.
Category: Services Cash Req: $125,000 - $150,000 Total Inv: $380,000
Sir Speedy is the world’s largest network of printing, copying and document service centers. The Sir Speedy Global Digital Network, with its alliance partners spans nearly 1,000 locations in 18 countries. By featuring complete document management services, Sir Speedy offers exceptional value to its business market.
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37
Jan-Pro
Category: Cleaning & Maintenance
38
TeamLogic IT
Category: Technology Cash Req: $40,000 Total Inv: $70,000 - $120,000
At TeamLogicIT, we focus on servicing the IT needs of small and mid-sized businesses. We’re more than just another computer repair company. We offer business computers a full range of services including consultation, repair and what almost no other IT service can, proactive ongoing IT maintenance. This is a significant benefit to our customers and sets us apart from the competition.
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39
Action International Business Coaching
Category: Business Services
40
Learning Express
Category: Specialty Retail Cash Req: 100,000 Total Inv: 196,000 - 329,000
If you have an entrepreneurial spirit, love of toys, kids, and learning - you have what it takes to be a great Learning Express franchise owner. When you join the Learning Express family, you'll have dedicated support from the home office, fellow storeowners, and your regional advisor.
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41
Pak Mail Centers of America
Category: Services
42
The Cleaning Authority
Category: Cleaning & Maintenance Cash Req: $30,000 Total Inv: $90,000 - $130,000
The Cleaning Authority is the preeminent residential cleaning service franchise in the industry. Since starting our franchise efforts in 1996 TCA has pushed the envelope for Technology and Marketing within the industry.
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43
HouseMaster
Category: Home Services Cash Req: $35,000 Total Inv: $31,000 - $69,000
There are many home inspection companies, but only one Master. HouseMaster is the most experienced name in home inspections with almost 30 years franchising and almost 2 million inspections performed.
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44
Carpet Network
Category: Home Services Cash Req: $50,000 Total Inv: $50,585 - $70,385
The Carpet Network Management Team has over forty years of floor and window covering experience for you to take advantage of. Our thorough training programs, proven business systems, twenty-four hour Intranet site, and Home Office monitored support line provide you with the tools you need to build a successful, growth oriented business in your own market.
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45
Parmasters Golf Training Centers
Category: Sports & Recreation Cash Req: 20% Total Inv: $300,000 - $2,500,000
The world’s first year-round indoor golf training center franchise. Featuring all the tradition and appeal of a high-end clubhouse while offering the ultimate training and practice center for golfers of all levels.
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46
Salad Creations
Category: Food
47
Sarah Care
Category: Senior Care
48
TSS Photography
Category: Child Services
49
SMARTBOX Portable Self Storage
Category: Services Cash Req: $350,000 Total Inv: $365,000 - $850,000
Strike while the iron is hot and take advantage of a unique opportunity that is changing the way people move and store their belongings. Become a SMARTBOX portable self storage owner, and you will be on the cutting edge of a brand new industry whose time has arrived.
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50
Two Men and a Truck
Category: Services Cash Req: $100,000 Total Inv: $112,000 - $407,000
We are a company and family built on strong moral values. Each franchise is individually owned and operated but all carry a common link — making customer service a top priority. Owning a TWO MEN AND A TRUCK® franchise not only allows you the freedom to run your own business but it also gives you the structure and support of a successful franchise system. We don't require moving experience; we want people who care about customers.
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More information about the Franchise 50 Awards:
What are the Franchise 50 Awards?
The Franchise 50 Awards are an annual ranking of franchise companies by their level of franchisee satisfaction. The awards are based on the research results of Franchise Business Review, a market research firm that conducts thousands of independent surveys of franchisees each year. The awards recognize the Top 50 franchise companies with the highest levels of overall franchisee satisfaction, as well as Best in Category and Honorable Mention awards in 16 industry categories. This year over 100 franchise companies were recognized as having outstanding franchisee satisfaction.
How many and what types of companies participated in the 2007 Franchise 50 Awards?
Over 300 franchise companies registered for the 2007 Franchise 50 Awards. Those companies represent a total of over 65,000 franchisees. Participation was limited to companies based in North America, with greater than 10 franchisees in their system. This year’s participants included a wide array of companies from many different industries, ranging in size from small franchise systems with just a dozen franchisees, to large International brands with thousands of locations around the world.
Why are the Franchise 50 Awards so important?
For the prospective franchise buyer, investing in a franchise is one of the most significant investments and life-changing events they will ever experience. There are many factors to consider before buying a franchise and chief among those factors is satisfaction levels of current franchisees. Are franchisees getting the training and support they need to be successful? Do they value their relationship with their franchisor? Are they growing and making money? Would they do it all over again? These important questions can only be answered by current franchisees – the true franchise experts. The research conducted by Franchise Business Review is the most comprehensive study of franchisee satisfaction ever done and the results speak for themselves.
How was the survey process completed?
All active franchisees from each participating company were invited to participate in this project. Franchise Business Review staff made at least three attempts to reach each franchisee directly by email or telephone. Surveys were completed online, over the phone, via direct mail and facsimile. Franchise Business Review attained an amazing rate of franchisee participation, averaging over 50% and in some cases, as many as 90 - 100% of franchisees took part.
The survey itself consisted of a total of 40 questions. The first 20 questions were specific to the franchisees’ satisfaction with their franchise system. Questions addressed five main areas: Training & Support, Franchise System, Franchisor Relationship, Financial Opportunity and Overall Satisfaction. The remaining 20 questions were focused on market area, business lifestyle, demographic and personal skills questions.
How were franchise companies ranked?
Companies were ranked based on a proprietary formula taking into account each company’s average satisfaction score, system size and rate of franchisee participation.
How do I find out more information about the 2007 Franchise 50 Awards?
Franchise Business Review is headquartered in Kittery, Maine and can be reached at 866-397-6680 or via email at info@franchisebusinessreview.com.
This is a link to CNN Money's calculator to figure how much your business is worth. The rough calculation isn't specifically for franchises. It isn't very industry specific, but it does give you a general idea of what a general restaurant, retail or high-tech firm might sell for. It is not sure exactly what those categories entail though.
Restaurant chain activity, dispensed weekly for Free.
An Empirical Evaluation of Conflict in the Franchise System
(Published December, 1998) - It seems there is better market value to a franchise system when franchisees conflict with and engage the franchisor.
A survey instrument of a large group of franchise networks shows a statistical correlation that franchise systems utilizing franchisee conflict and satisfaction at the network level do better. Franchisee–franchisor goal congruence is important to network alliance efficiencies.
Andy Seldon, a franchise lawyer, summed up the work of Spinelli and Birley this way in an interview with Blue MauMau:
"It [the study] shows a very high correlation between the accumulative experiences of franchisees as contrasted with a very limited experience of executive management of franchisors. Their study proves, through vast amounts of economic data to back it up, that companies who fail to enthusiastically embrace that deeper well of know-how, through system planning that is incorporated early on during the growth cycle of the company, fail."
Study can be purchased online in pdf format. Purchase price - $39.
top franchises ranked (10)These are rankings and awards of franchises and franchise systems by various magazines or organizations.
who's looking out for you? (29)Organizations and associations that help franchise owners and buyers.
other (16)other links relating to franchising that do not fit in any other of the listed categories.
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