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 for FRANdex increased by 7.86% Q-o-Q, with those for non-food companies up by 8.37% Q-o-Q.

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
SENIOR RESEARCH ANALYST

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.

 

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