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FRANdata works with a diverse group of clients on their most challenging issues, investing significant time and effort in developing an expertise and knowledge base that offers unique perspectives and insights. We apply our understanding of market and industry forces to develop long-term franchise perspectives.

Buoyed by a mix of market correction and federal government assistance like PPP loans, payroll tax cuts, etc., FRANdex achieved major quarter-over-quarter gains in Q2-2020. In the quarter, franchise companies’ (excluding McDonald’s) annual returns outperformed both broader indices – S&P 500 and Russell 2000. Non-food franchises were the major gainers in the quarter, up 51.6% q-o-q, boosted by the returns from lodging franchises (39.57%). Food franchises were up by 48.55%.


FRANdata has been studying the trajectory of publicly-traded franchises for more than 3 years. FRANdex tracks the performance, based on market capitalization, of 62 U.S.-based publicly-traded companies operating under and generating income through the franchise business model. All index levels are normalized to 1,000 at Q1 2006 for comparison purposes, and all remaining periods are adjusted accordingly.


About the Analyst


Ritwik Donde

Ritwik’s expertise as a senior research analyst has allowed him to analyze the ins and outs of the operational and financial performances of hundreds of franchise brands.



Related Contents

Buoyed by growing consumer spending and growth in disposable income levels, FRANdex achieved major year-over-year gains in 2019. In the year, franchise companies’ (excluding McDonald’s) annual returns were almost like those achieved by the S&P 500 and the Russell 2000 indices. Hospitality franchises were the major gainers in the year, up 34.5% y-o-y; overall the […]
Improved market for dining out help food franchises outdo their non-food counterparts in Q3. In Q3-2019, franchise companies’ (including McDonald’s) returns were in line with S&P 500 but underperformed the Russell 2000 index. Food franchises outperformed their non-food counterparts. Returns for FRANdex+M declined by 5.46% Q-o-Q, with those for food companies up down 3.13% Q-o-Q. […]
For the second quarter in a row franchises posted strong positive returns. In Q2-2019, franchise companies’ returns significantly outpaced those for both Russell 2000 and S&P 500. Non-food franchises outperformed their food counterparts, with latter losing further market capital as “go-private” deals for brands like Papa Murphy’s continued to impact the FRANdex in Q3. Returns […]
The year is off to a great start, with franchises posting positive returns in the first quarter. In Q1-2019, franchise companies’ returns slightly outpaced those for Russell 2000, and were almost in line with those for the S&P 500. Non-food franchises significantly outperformed their food counterparts, with latter having lost a lot of market capital […]
  While returns for FRANdex were down by -12.95% Q-o-Q, the recent volatility in the markets led to FRANdex outperforming broader indices in Q4 2018. The returns for S&P 500 and Russell 2000 in Q4 were -13.15% and -17.40%, respectively. Hotel companies performed better than food franchises which saw their returns decline by 10.26%. Overall, […]