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The Franchise 500's Top 10
Posted 1/ 15 10 at 10:27 AM | Franchises
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A A AWhat does it take to get to the top of Entrepreneur Magazine's annual Franchise 500 ranking? The 10 franchise systems that follow have captured their place in the spotlight for their outstanding quality, flexibility and strategic improvements. And it helps to have won the hearts of both franchisees and the public. Click through for an overview of the highlights.
No. 10: Denny's
Denny's is an American institution -- which is good and bad. It's got unbelievable brand recognition, but it's also saddled with decades of baggage, including a highly publicized discrimination lawsuit in the 1990s, a reputation as a hangout for late-night hoodlums and a bastion of bad food. But in 2009, Denny's began a hard and fast climb into the 21st century with one Super Bowl commercial, offering a free breakfast for anyone willing to wait. Two million people went in.
Did you know: Denny's started out in 1953 as Danny's Donuts, becoming Denny's in 1959.
Number of franchises: 1,374
Franchising since: 1984
Startup costs: $1,125,609 - $2,396,419
2010 rank: #17
No. 9: Subway
Last April, Subway threw its hat into a crowded ring by introducing a full line of breakfast sandwiches nationally. It was a risk for the hero-slinging behemoth, but according to the company, which does not release sales figures, the initiative exceeded expectations and boosted per unit averages. That has helped keep the 34,000-unit restaurant expanding. It added 2,000 stores in 2010, including 800 new locations outside the United States, and it expects to open 2,100 sites this year.
Did you know: Subway claims there are more than 2 million sandwich varieties available in its stores.
Number of franchises: 33,188
Franchising since: 1974
Startup costs: $84,300 - $258,300
2010 rank: #1
No. 8: Servpro
One good thing came out of the catastrophic floods that hit downtown Nashville, Tenn., last May: It gave Servpro a chance to show its home state what it's all about. The cleanup and restoration company, which specializes in smoke, fire, water and mold damage, mobilized its disaster recovery team and brought almost 700 crews from its 1,600 locations to Music City to help clean up the mess. It showed just how strong a national franchise can be in an industry dominated by small independent operations.
Did you know: After 40 years in business, Servpro opened its first international location in 2010.
Number of franchises: 1,526
Franchising since: 1969
Startup costs: $127,300 - $174,700
2010 rank: #9
No. 7: Vanguard Cleaning Systems
Vanguard Cleaning Systems is in the Top 10 -- and its competitors are not -- because its quality and customer service are rare in the cleaning biz. Instead of rushing to put franchisees on the streets, Vanguard has taken care to select the right master franchisees and emphasize training. "Businesses look to companies like ours because of our training, customer support and quality," says Mark Heisten, vice president for business development.
No. 6: Days Inn
The old chestnut in the hospitality industry is that hotels are the first to feel a recession and the last to recover. This is demonstrably true. So Days Inn, one of Wyndham Hotel Group's 13 brands and the largest economy hotel chain in the world (based on number of rooms), did what any company in fear for its profit margin would do when tough times struck. It tried to save every penny it could.
No. 5: Supercuts
Before the Great Recession hit, Supercuts' growth pattern mirrored pretty much everyone else's -- wherever a shopping plaza was going up in a new market, it was there. But as construction projects dried up around the country, Supercuts began to rethink that strategy. The company will add 100 units nationally this year, and expectations are for double that in 2012.
Did you know: A Supercuts franchisee in Houston set a new Guinness world record in 2009 by giving 349 haircuts in 24 hours.
Number of franchises: 1,035
Franchising since: 1979
Startup costs: $112,550 - $243,200
2010 rank: #5
No. 4: 7-Eleven Inc.
It's not that 7-Eleven isn't picky about its locations -- it pays plenty of attention to demographics, site selection and other basic metrics of franchising. It's more that it's adaptable, and during the past couple of years it has become like the yoga-master of franchising. Want to convert a mom-and-pop convenience store to a 7-Eleven? Need to squeeze a small convenience store onto a college campus or airport? Own a gas station but don't have the cash or experience to run the convenience store? 7-Eleven can help.
Did you know: A new 7-11 opens every 6.5 hours.
Number of franchises: 37,039
Franchising since: 1964
Startup costs: $30,800 - $604,500
2010 rank: #3
No. 3: McDonald's
You probably haven't noticed many Golden Arches going up around the country--the fast-food empire has more or less hit its North American saturation point, adding about 100 locations to its existing stock of 13,894 in 2010. But McDonald's has managed to stay dynamic (though it is putting up new stores in India and China, which is expected to open 600 new Mickey Ds by 2013). The focus at home is on improving quality and customer experience.
Number of franchises: 26,209
Franchising since: 1955
Startup costs: $1,057,200 - $1,885,000
2010 rank: #2
No. 2: ampm
Ampm has been pushing hot dogs and Snickers bars to U.S. travelers for more than 30 years, but the brand may not ring a bell. That's because for most of that time, ampm was only found in five western states, as the convenience brand of the Arco gas company. But in 2006, BP, which absorbed Arco in 2000, decided that the popular convenience store chain was ready to go national. Since then, BP has steadily sold off its BP Connect and other gas-station convenience stores, converting them to ampm franchises.
Did you know: In 2010, ampm launched a "secret menu" of snack bar recipes available only via Facebook.
Number of franchises: 3,177
Franchising since: 1979
Startup costs: $1,786,929 - $7,596,688
2010 rank: #10
No. 1: Hampton Inn/Hampton Inn & Suites
Hampton sits at No. 1 not because it bundles for free services that more upscale hotels charge through the nose for, or because it has a customer satisfaction guarantee (your money back if you're displeased for any reason, no questions asked) that's borderline insane, or because it just put waffle irons in all of its hotels. None of these hurt, but Hampton is tops because it listens to consumers and takes their ideas to heart.
Did you know: This year Hampton is launching in the U.K., Mexico, India, Romania and Trinidad.
Number of franchises: 1,753
Franchising since: 1984
Startup costs: $3,716,000 - $13,148,800
2010 rank: #4
No. 10: Denny's
Denny's is an American institution -- which is good and bad. It's got unbelievable brand recognition, but it's also saddled with decades of baggage, including a highly publicized discrimination lawsuit in the 1990s, a reputation as a hangout for late-night hoodlums and a bastion of bad food. But in 2009, Denny's began a hard and fast climb into the 21st century with one Super Bowl commercial, offering a free breakfast for anyone willing to wait. Two million people went in.Did you know: Denny's started out in 1953 as Danny's Donuts, becoming Denny's in 1959.
Number of franchises: 1,374
Franchising since: 1984
Startup costs: $1,125,609 - $2,396,419
2010 rank: #17
No. 9: Subway
Last April, Subway threw its hat into a crowded ring by introducing a full line of breakfast sandwiches nationally. It was a risk for the hero-slinging behemoth, but according to the company, which does not release sales figures, the initiative exceeded expectations and boosted per unit averages. That has helped keep the 34,000-unit restaurant expanding. It added 2,000 stores in 2010, including 800 new locations outside the United States, and it expects to open 2,100 sites this year.Did you know: Subway claims there are more than 2 million sandwich varieties available in its stores.
Number of franchises: 33,188
Franchising since: 1974
Startup costs: $84,300 - $258,300
2010 rank: #1
No. 8: Servpro
One good thing came out of the catastrophic floods that hit downtown Nashville, Tenn., last May: It gave Servpro a chance to show its home state what it's all about. The cleanup and restoration company, which specializes in smoke, fire, water and mold damage, mobilized its disaster recovery team and brought almost 700 crews from its 1,600 locations to Music City to help clean up the mess. It showed just how strong a national franchise can be in an industry dominated by small independent operations.Did you know: After 40 years in business, Servpro opened its first international location in 2010.
Number of franchises: 1,526
Franchising since: 1969
Startup costs: $127,300 - $174,700
2010 rank: #9
No. 7: Vanguard Cleaning Systems
Vanguard Cleaning Systems is in the Top 10 -- and its competitors are not -- because its quality and customer service are rare in the cleaning biz. Instead of rushing to put franchisees on the streets, Vanguard has taken care to select the right master franchisees and emphasize training. "Businesses look to companies like ours because of our training, customer support and quality," says Mark Heisten, vice president for business development.Did you know: Vanguard has benefited from the recession as companies have scrapped their janitorial department to cut costs.
Number of franchises: 1,847
Franchising since: 1984
Startup costs: $8,200 - $38,100
20010 rank: #30
Startup costs: $8,200 - $38,100
20010 rank: #30
No. 6: Days Inn
The old chestnut in the hospitality industry is that hotels are the first to feel a recession and the last to recover. This is demonstrably true. So Days Inn, one of Wyndham Hotel Group's 13 brands and the largest economy hotel chain in the world (based on number of rooms), did what any company in fear for its profit margin would do when tough times struck. It tried to save every penny it could.Did you know: In recent years, Days Inn has opened hotels in China, the U.K., Costa Rica and Russia.
Number of franchises: 1,857
Franchising since: 1972
Startup costs: $192,291 - $6,479,764
2010 rank: #21
Startup costs: $192,291 - $6,479,764
2010 rank: #21
No. 5: Supercuts
Before the Great Recession hit, Supercuts' growth pattern mirrored pretty much everyone else's -- wherever a shopping plaza was going up in a new market, it was there. But as construction projects dried up around the country, Supercuts began to rethink that strategy. The company will add 100 units nationally this year, and expectations are for double that in 2012.Did you know: A Supercuts franchisee in Houston set a new Guinness world record in 2009 by giving 349 haircuts in 24 hours.
Number of franchises: 1,035
Franchising since: 1979
Startup costs: $112,550 - $243,200
2010 rank: #5
No. 4: 7-Eleven Inc.
It's not that 7-Eleven isn't picky about its locations -- it pays plenty of attention to demographics, site selection and other basic metrics of franchising. It's more that it's adaptable, and during the past couple of years it has become like the yoga-master of franchising. Want to convert a mom-and-pop convenience store to a 7-Eleven? Need to squeeze a small convenience store onto a college campus or airport? Own a gas station but don't have the cash or experience to run the convenience store? 7-Eleven can help.Did you know: A new 7-11 opens every 6.5 hours.
Number of franchises: 37,039
Franchising since: 1964
Startup costs: $30,800 - $604,500
2010 rank: #3
No. 3: McDonald's
You probably haven't noticed many Golden Arches going up around the country--the fast-food empire has more or less hit its North American saturation point, adding about 100 locations to its existing stock of 13,894 in 2010. But McDonald's has managed to stay dynamic (though it is putting up new stores in India and China, which is expected to open 600 new Mickey Ds by 2013). The focus at home is on improving quality and customer experience.Number of franchises: 26,209
Franchising since: 1955
Startup costs: $1,057,200 - $1,885,000
2010 rank: #2
No. 2: ampm
Ampm has been pushing hot dogs and Snickers bars to U.S. travelers for more than 30 years, but the brand may not ring a bell. That's because for most of that time, ampm was only found in five western states, as the convenience brand of the Arco gas company. But in 2006, BP, which absorbed Arco in 2000, decided that the popular convenience store chain was ready to go national. Since then, BP has steadily sold off its BP Connect and other gas-station convenience stores, converting them to ampm franchises.Did you know: In 2010, ampm launched a "secret menu" of snack bar recipes available only via Facebook.
Number of franchises: 3,177
Franchising since: 1979
Startup costs: $1,786,929 - $7,596,688
2010 rank: #10
No. 1: Hampton Inn/Hampton Inn & Suites
Hampton sits at No. 1 not because it bundles for free services that more upscale hotels charge through the nose for, or because it has a customer satisfaction guarantee (your money back if you're displeased for any reason, no questions asked) that's borderline insane, or because it just put waffle irons in all of its hotels. None of these hurt, but Hampton is tops because it listens to consumers and takes their ideas to heart.Did you know: This year Hampton is launching in the U.K., Mexico, India, Romania and Trinidad.
Number of franchises: 1,753
Franchising since: 1984
Startup costs: $3,716,000 - $13,148,800
2010 rank: #4
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Comments (Page 1 of 2)
Are you tired of seeing BS posts on stories? Yeh, me too. I particularly love the ones that say "This is not a scam". What are they GOING to say..."This IS a scam." ??? How about we get some editors that have more to do than sit back eating donuts all day. Have a good day, all!
7 11(Japan) and ampm (BP)are both foreign owned companies. None on the list really offer a good product though. Denny's, McDonald's both have nasty food. The hotels listed are not particularly nice.
I guess if you advertise enough, people will buy regardless of quality. Hey it works for Budweiser!
Did not find this project on the site
We NEED YOUR VOTE for the NORTHWESTERN HIGH SCHOOL GREENHOUSE , Baltimore City, Maryland at www.TheLifeImprovementProject.com.
I spent from 1967-1970 in the third graduating class at Northwestern High School.
A lot has happened in the 40 years. Time has not been kind to the school. Four years ago the school was labeled failing and the principal was replaced.
The current Principal and teachers are caring and dynamic persons. The biggest challenge is lack of money because of the dire financial state of the Baltimore City Public Schools System.
The Roof Top Greenhouse, that was state of the art in 1970 was decommissioned at least 15 years ago.
It has now been stripped to the walls by us and Northwest Renaissance volunteers and is waiting for HVAC, desks, plants, and a Green Curriculum and a new shop facility. The Principal wants to transform it into a modern teaching laboratory, one in which students will, in addition to learning about plants, be introduced to how scientists obtain new understanding of natural entities. Overall, he wants to greatly improve how the school exposes students to the possibility of careers in science and technology. More than half of the students live in a less than prosperous part of Baltimore..
The Greenhouse Renovation is entirely dependent on donations of materials, labor and dollars..
Respected, retired Professor and Plant Biologist Dr. Phil Filner, heads up this project.
I nudged Dr. Phil to apply for an IKEA grant. IKEA called and interviewed him several times!
WOW . We are one of 5 finalists (of 2,000 applicants) to win a $100,000 IKEA SUSTAINABILITY GRANT.
Please VOTE and ask all your friends to vote for the NORTHWESTERN HIGH GREENHOUSE everyday between Dec 13, 2010 and Jan 17, 2011.
Beginning Dec. 13, you will find the brief description of the project and a 1 minute video made with Dr. Phil, students and teachers in the greenhouse.
Again, the web site at which to cast your vote is:
www.TheLifeImprovementProject.com
Live Long and Prosper,
Miriam Winder Kelly
for self, Dr. Phil, Principal Hartling, and the entire NW High Wildcats Green Team
Really? The franchisee that my daughter works for is about as pale as the driven snow. And they have opened two new locations in the past few years.
Mcdonald's only franchises to minority's. Fact
"...including a highly publicized discrimination lawsuit in the 1990s..." Oh, yes, I'm sure EVERYONE remembers that, right? No? Me either. Only a mentally ill "progressive" would think something as lame as that warrants the lead-in paragraph in their story. REAL people don't stop and think "Wait. Is this a RACIST restaurant???" before they enter to get the ham and cheese omelet and cup of hot coffee. Pathetic. I stopped reading right there. "Progressives" are the real racists; EVERYTHING is about "color of skin" and not "content of character."
7/11 on the list continues to amaze. Around here Philly region they are few and far between. The ones that are around are grungy hellholes operated by foregners, limited prepared food, limited selection of anything, dirty and dated. Trumped by WaWa decades ago.
yes i would be interested.
I don't think it is to much to ask for...
I want a job that pay a living wage. Is that too much to ask?
IT IS UNFORTUNATE HOW AMERICANS EATING HABITS ARE CRAP IN ITALY FOOD IS GOOD HEALTHY AND CLEAN AS WELL AS THE PLACES THAT SERVE. HOW IN GODS NAME CAN ANYONE EAT IN SUBWAYS, MAC , WINDYS, OLIVE GARDEN IS AS ITALIAN AS HINDU FOOD. TRY TO FIX SOMETHING AT HOME AND BROWN BAG IT YOU WILL HEALTIER FOR IT.GARBARGE IS EASY FAST FOOD POISION.
If all of this is accurate which I believe it would be then , its interesting. Subway has great affordable and healthy breakfast, glad they started that.
I was suprised Quizno's didn't make the list. Seems to get "up and coming" at least where I live, no breakfast but good sandwiches.
7-11 on the "growing list" surprises me because since 1980, at least 5 stores have shut down in my hometown area (Glen Burnie, MD). They were either boarded up or turned into flower shops or something like that.
Andre, SusM, Zina: You have no real desire to provide services to all patients. I know that you don't care. You are shrewd.
I agree that Perkins in top notch. Bob Evans comes in a close second with us too. Good, clean, usually good wait staff ....
Every now and then when I see these polls It makes me smile to think how differently we all see things. Thats a good thing. At least for Denny's restaurants. I'm really not the type to bash anyone's business. But I am the type to be honest when It comes to giving my opinion. Having a large family entitles me to say, breakfast is a pretty big thing. We've eaten at them all.Literally. Sometimes it depends on if you hit them on the right day or time. We all know that restaurants have a problem with being consistent. Like I said, you can walk out saying that was great or we're never coming back here again. Years ago we didn't have all these giant breakfast chains. We had what we called Mom and Pop restaurants. much more personal and a whole lot better. By todays standards, people really don't have these places to make any comparison. Now for my honest opinion (for whatever it's worth)Like I said I really don't want to bash anyone's business. But I will recommend one. If you haven't yet tried Perkin's, you should.Great coffee,breakfast and their baked muffins and pies are worth breaking your diet for.No, I don't work for them (LOL)they're really good. Happy eating.
It's no surprise to me that Hampton Inn/Hampton Inn Suites is the number one franchise or that Kia and Hyundai Motor's never felt the automotive slump when other car companies had to borrow money from the government to keep alive.
they both give high-quality merchandise and back it up with a 100 percent guaranteed,while the other companies are slashing everything to the bone to maximize their profits,when the other automobile companies was selling inferior goods and giving short-term warranties Kia and Hyundai were giving hundred thousand miles and ten-year warranties that shows the people that a company has confidence in their product and when you have that kind of business savvy you will always be on top.
what about Wawa
Who picks these? Surely there has to be better franchises in America. Denny's just closed in our area leaving some thirty or forty people unemployed and customers without a clue as to where they could find a good breakfast or lunch. Not that Denny's was that good, but we are so limited on good restaurants in our area that the local greasy spoon and dirty kitchen diner is left. Isn't there anything we can do to produce a product that really sells, come on America we can do better!!