Intro
Don’t have the patience, capital or guts to generate sales from
scratch? Try franchising. With the help of Robert Bond, chief executive
of the World Franchising Network (a franchise database) and publisher of
Bond’s Franchise Guide, we waded through data on 110 of the most
established names to find 20 that deliver the biggest bang for a
competent operator’s
investment
buck. The methodology is based on five variables: average initial
investment (franchise fees plus equipment costs); total locations (the
more the better); closure rate (the number of closings in the last three
reported fiscal years divided by the total number of existing
locations); growth in the number of U.S. outlets in the last three
years; and the number of training hours as a percentage of startup cost
(the more support from the home office, the better). Overall footprint
and survival rates carried the most weight. We did not include royalties
paid to franchisors because they ranged in a tight band and thus barely
affected the overall rankings.
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