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Research Newsletter March 27, 2006


Franchising High Performers

The StartupJournal.com, The Wall Street Journal's Center for Entrepreneurs online, recently came to us for a list of 25 Franchise High Performers.

This list, pulled from our database of thousands of systems, is different from others in that these systems were not chosen based solely on one criteria such as unit growth, but on multiple objective criteria to highlight a high level of system performance. For instance, these systems are:

  • well established
  • have a comparatively large number of units
  • have been consistently profitable over the years
  • have a lower than average turnover rate
  • have a low rate of litigation (cases per 1,000 franchised units)

The entire detailed methodology can be found on the StartupJournal.com site.

We have received excellent feedback about this list, most of which is asking: what makes a high performer? What do these systems look like as a group? Here are the averages from that table:

Additionally, eight (8) of the systems had some internal financing programs and eleven (11) of them are listed on the FranchiseRegistry.com.

Finally, to give more details about these 25 systems individually, we created a special Franchise Systems High Performers Snapshot Report. Designed to help prospective franchisees, these reports give a snapshot of some of the important information needed to evaluate a franchise system. A more complete profile of a system can be found in our System Profile Reports.



PREVIOUS QUIZ WINNER

Congratulations Craig Tractenberg from Nixon Peabody LLP!

Craig Tractenberg is a partner at Nixon Peabody LLP focusing on franchise litigation, insolvency matters, and trademark enforcement litigation. He has been involved with some of the largest and most complex franchise litigation matters, including income reconstruction matters, reorganizations, and mergers and acquisitions.




FRANdata publishes several different enewsletters with a variety of information about franchising. To review your enewsletter subscription status, please follow the Update Profile link at the bottom of this newsletter. If you would like further information about any of the topics discussed in this newsletter, please feel free to give us at call at 800.485.9570 or visit the FRANdata website at www.frandata.com