The Franchise 500's
Top 20 for 2009
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Getty Images (2) / Sonic Drive-In / AOL
It's that time of year again. It's time for the annual Entrepreneur Franchise 500®. And we are especially excited this year because 2009 marks the 30th anniversary for this important list. To celebrate, Entrepreneur has compiled a robust package of Franchise 500-related content. Last year's No. 1 franchise was 7-Eleven but it isn't even on this year's list of the top 20. Click forward to see the new winners.
About the Franchise 500
First Up: Taco BellMore From Entrepreneur:
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David Rogowski, AOL
No. 20: Taco Bell Corp.
A subsidiary of Yum! Brands Inc., Taco Bell is affiliated with Pizza Hut, KFC, A&W, and Long John Silver's. There are Taco Bell locations throughout the United States and the world. The public company is based in Irvine, California.
Number of franchises: 4,516
Franchising since: 1964
Startup costs: $1.3 million to $2.5 million
2008 rank: #22
Franchise Details
Next: Jan-ProMore From Entrepreneur:
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No. 19: Jan-Pro Franchising Int'l Inc.
Jacques Lapointe founded Jan-Pro in Providence, Rhode Island, in 1991. It started franchising the following year. Jan-Pro is a commercial cleaning franchise that operates throughout the United States and Canada.
Number of franchises: 8,875
Franchising since: 1992
Startup costs: $3,300 to $54,300
2008 rank: #26
Franchise Details
Next: Arby'sMore From Entrepreneur:
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Getty Images
No. 18: Arby's
In 1964, the first Arby’s opened in Boardman, Ohio. The original Arby’s menu consisted of roast beef sandwiches, drinks and chips. Eventually, other sandwiches, French fries, meals for kids and light choices were added to the menu.
Number of franchises: 2,558
Franchising since: 1965
Startup costs: $336,500 to $2.4 million
2008 rank: #19
Franchise Details
Next: Super 8More From Entrepreneur:
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Super 8
No. 17: Super 8
Founded in 1974, Super 8 Motels has been franchising since 1976 and has more than 1,800 locations throughout the United States and Canada.
Number of franchises: 2,095
Franchising since: 1976
Startup costs: $274,960 to $3.1 million
2008 rank: #24
Franchise Details
Next: Dairy QueenMore From Entrepreneur:
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Cassandra Shie, AOL
No. 16: Dairy Queen
J.F. McCullough opened the first Dairy Queen with his son in 1940. Today, stores system wide have menus that include hot dogs, hamburgers and chicken strips through Dairy Queen’s Brazier concept.
Number of franchises: 5,619
Franchising since: 1944
Startup costs: $700,000 to $1.3 million
2008 rank: #25
Franchise Details
Next: Jani-KingMore From Entrepreneur:
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Jani-King
No. 15: Jani-King
Jim Cavanaugh established Jani-King in 1968 and in 1974 he started franchising. A commercial cleaning service, Jani-King sets up franchisees with a customer base and charges fees depending on the size of that initial base.
Number of franchises: 12,980
Franchising since: 1974
Startup costs: $11,300 to $31,400+
2008 rank: #13
Franchise Details
Next: KFCMore From Entrepreneur:
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Mark Lennihan, AP
No. 14: KFC Corp.
Nearly 50 years ago, Colonel Sanders set out to sell complete meals to time-strapped families, calling his home meal replacements “Sunday Dinner, Seven Days a Week.” Acquired by PepsiCo in 1986, KFC is now a part of Yum! Brands Inc..
Number of franchises: 11,553
Franchising since: 1952
Startup costs: $1.2 million to $1.8 million
2008 rank: #7
Franchise Details
Next: Baskin-RobbinsMore From Entrepreneur:
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ASSOCIATED PRESS
No. 13: Baskin-Robbins USA
Irv Robbins and brother-in-law Burt Baskin created the ice cream parlor Baskin-Robbins in 1945. Today, Baskin-Robbins has locations in more than 50 countries, each serving the company’s famous 31 flavors of ice cream as well as frozen yogurt, sherbet, cakes and drinks.
Number of franchises: 5,889
Franchising since: 1948
Startup costs: $121,300 to $419,600
2008 rank: #16
Franchise Details
Next: Instant Tax ServiceMore From Entrepreneur:
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AP / AOL
No. 12: Instant Tax Service
Fez Ogbazion opened his first income tax office, Instant Refund Tax Service, in 1994. In 1999, a Fortune 500 company bought his company and Fez went on to re-invest the money from the sale into a bigger and better income tax business. That fresh start became Instant Tax Service, founded in 2000.
Number of franchises: 1,181
Franchising since: 2004
Startup costs: $39,000 to $89,000
2008 rank: #54
Franchise Details
Next: Jiffy LubeMore From Entrepreneur:
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David McNew
No. 11: Jiffy Lube
Jiffy Lube began under Jim Hindman in 1979 as an association of seven fast-lube centers in the western United States. Today the franchise is a wholly-owned subsidiary of Pennzoil-Quaker State Co. and has locations nationwide.
Number of franchises: 2,001
Franchising since: 1979
Startup costs: $214,000 to $217,000
2008 rank: #14
Franchise Details
Next: Papa John'sMore From Entrepreneur:
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ASSOCIATED PRESS
No. 10: Papa John’s
In 1984, John Schnatter knocked out a broom closet in the back of his father’s tavern and began selling his pizzas to the tavern’s customers. Due to their popularity, he was able to expand into an adjoining space and open the first Papa John’s restaurant in 1985.
Number of franchises: 2,615
Franchising since: 1986
Startup costs: $135,800 to $491,600
2008 rank: #36
Franchise Details
Next: Circle KMore From Entrepreneur:
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Justin Sullivan, Getty Images
No. 9: Circle K
Circle K’s roots go back to 1951, when Fred Hervey purchased three Kay’s Food Stores in El Paso, Texas. Hervey expanded the retail network over the next few decades and entered the international market in 1979.
Number of franchises: 4,085
Franchising since: 1995
Startup costs: $161,000 to $1.4 million
2008 rank: #17
Franchise Details
Next: The UPS StoreMore From Entrepreneur:
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Tim Boyle, Getty Images
No. 8: The UPS Store/Mail Boxes Etc.
Herb Goffstein and Pat and Mimi Senn founded Mail Boxes Etc. as an alternative to the U.S. Postal Service in 1980, and opened their first store in Carlsbad, California. In 2001, Mail Boxes Etc. became a subsidiary of The UPS Store.
Number of franchises: 5,982
Franchising since: 1980
Startup costs: $171,200 to $280,000
2008 rank: #11
Franchise Details
Next: Pizza HutMore From Entrepreneur:
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Tim Boyle, Getty Images
No. 7: Pizza Hut
While college students in Wichita, Kansas, Frank and Dan Carney were inspired to open a pizza parlor. So the brothers borrowed $600 from their mother and opened the first Pizza Hut in 1958. Now there are approximately 6,200 locations in the U.S. and more than 4,000 restaurants in 100 countries.
Number of franchises: 10,239
Franchising since: 1959
Startup costs: $638,000 to 2.97 million
2008 rank: #4
Franchise Details
Next: Ace HardwareMore From Entrepreneur:
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Tom Gannam, AP
No. 6: Ace Hardware
Ace Hardware began in 1924, when Richard Hesse banded together with other Chicago-area hardware retailers to increase their collective buying power and profits. The company was incorporated in 1928, and 80 years later has evolved into one of the largest hardware cooperatives in the world.
Number of franchises: 4,693
Franchising since: 1976
Startup costs: $243,500 to $1 million
2008 rank: #12
Franchise Details
Next: InterContinental Hotels GroupMore From Entrepreneur:
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VisMedia
No. 5: InterContinental Hotels Group
In 1988, U.K.-based Bass Brewers (founded by William Bass in 1777) moved into the hospitality industry with the purchase of Holiday Inns International. The InterContinental Hotels Group now owns seven brands and operates more than 4,000 hotels.
Number of franchises: 3,498
Franchising since: 1954
Startup costs: Varies
2008 rank: #8
Franchise Details
Next: SonicMore From Entrepreneur:
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SONIC
No. 4: Sonic Drive-In
In 1953, Troy Smith purchased “Top Hat,” a root beer stand in Shawnee, Oklahoma, where customers would park, buy food and eat in their cars. He expanded that concept into a restaurant with partner Charles Pappe, introducing the “Sonic” name in 1959.
Number of franchises: 2,678
Franchising since: 1959
Startup costs: $1.2 million to 3.2 million
2008 rank: #6
Franchise Details
Next: Liberty Tax ServiceMore From Entrepreneur:
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Liberty Tax Service
No. 3: Liberty Tax Service
In 1997, after selling Jackson Hewitt Inc.--the tax-preparation service company he founded 15 years earlier--John Hewitt acquired a Canadian tax franchisor and established Liberty Tax Service. At the close of 2008, the number of franchises had grown to nearly 2,500.
Number of franchises: 2,579
Franchising since: 1973
Startup costs: $53,800 to $66,900
2008 rank: #23
Franchise Details
Next: McDonald'sMore From Entrepreneur:
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Tim Boyle, Getty Images
No. 2: McDonald’s
At the age of 52, Ray Kroc pitched the idea of opening several quick-service restaurants to brothers Dick and Mac McDonald, owners of the McDonald’s hamburger stand in San Bernardino, California in 1955. Now the global food-service retailer has around 30,000 restaurants in more than 100 countries.
Number of franchises: 24,799
Franchising since: 1955
Startup costs: $950,200 to $1.8 million
2008 rank: #5
Franchise Details
Next: The No. 1 FranchiseMore From Entrepreneur:
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Stephen Chernin, Getty Images
No. 1: Subway
With an initial $1,000 investment, 17-year-old Fred DeLuca and family friend Peter Buck opened Pete’s Super Submarines in 1965. The duo changed the name to Subway a few years later and began franchising in 1974. Now Subway boasts more than 28,000 restaurants in 86 countries.
Number of franchises: 29,612
Franchising since: 1974
Startup costs: $78,600 to $238,300
2008 rank: #2
Franchise Details
Next: More From AOLMore From Entrepreneur:
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