To begin with this subject, we must concede that there are many ways to define a “hot” franchise opportunity. Does it mean the lowest cost-highest return business? Or is it more broadly defined to include which franchises enjoy the best rankings in terms of owner satisfaction? To cut through all of the clutter, we’re going to take an unbiased glance at what Entrepreneur Magazine has to say.
For each of the past 37 years, Entrepreneur has been putting out their annual Franchise 500 rankings. It’s culled from putting out a survey to thousands of franchise owners each year prior, that takes a look at numerous aspects of each franchise brand and what makes them successful. The most important factors include financial strength, stability, growth rate and size of the system.
We’re going to take a look at three select franchises who were featured, with a note or two on why they seem so successful. Onto the rankings!
Jimmy John’s Sandwiches – Freaky Fast
This franchise ranked #1 on the 2016 annual Franchise 500. The sandwich shop not only puts out a good product, but has developed a massive branding campaign based around its “Freaky Fast” moniker. Whether you’re in-store at the counter or order over the phone, the Jimmy John’s brand has made sure you won’t wait very long for one of their tasty creations. Their marketing campaign even extends further with the fast concept in their participation as a primary NASCAR sponsor, as their livery adorns the #4 Jimmy John’s Chevrolet SS Impala, driven by previous series champion, Kevin Harvick. It doesn’t hurt that NASCAR is America’s # 1 spectator sport.
Supercuts – Recession-Proof
The famed hair salon Supercuts made the Franchise 500 list, as their business model lends itself to repeat customers. Several times before in this blog space, we’ve talked about recession-proof franchises—ones who don’t typically experience a business drop-off even in difficult financial times. Let’s face it, if you’re looking for work, you’ll still get one of Supercuts $12 haircuts, regardless of your budget. An initial franchise cost investment of under $150k is an attractive selling point as well.
Anytime Fitness – America’s New Obsession
Recent studies have shown that the U.S. is more fitness-obsessed than ever -- and that’s a good thing. However, other studies show that as much as two-thirds of our population meet the definition of being overweight. With so many personal ways to get physically fit available, not to mention wearable technologies such as Fitbit, Americans are signing up for health and wellness programs like never before. Anytime Fitness has carved out a niche for themselves with two clear branding strategies: stay open 24/7 and offer co-ed training. Clearly, it’s working.
When perusing through the Entrepreneur Franchise 500, it isn’t hard to spot a few obvious trends. Did you know that five of the top-ten (and eight of the top-15) ranked franchises fall into the quick service restaurant (QSR) category? That’s a strong showing for one of the backbones of the industry’s categorical offerings.
The names of all of the top-performing franchise opportunities should be more than familiar brands to you. And this is one of the franchise industry’s strongest selling points. You’re not just buying a business, but an established brand.
As a franchisor, you’ll want to know which existing and potential franchisees best fit your business concept. Proven Match is the proven solution in determining those factors. Through our proven behavioral assessment techniques, predictive analysis becomes predictive success for your franchise concept. If you’re ready to show your leadership by getting started, give us a call and we’ll put you on the path to a more productive year in 2016.