2015 Guide to Today's Top Franchises

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SPECIAL REPORT: Top Franchises implement high-energy fundraising programs that entail teaching leadership and fitness to kids, have raised $12 million on behalf of schools. It is also clear that people are increasingly willing to pay to have annoying critters removed. Two new mosquito and tick control companies, Mosquito Joe and Mosquito Shield, join Truly Nolen of America, A All Animal Control and Critter Control on this year’s list. Fast-casual and personalization are the food trends that continue to gain in popularity as Your Pie’s joining our list shows. Its concept entails diners moving down an assembly line and choosing the toppings for their personalsized pizza pie, which is then popped into a large oven that cooks it in a few minutes. Jim Carpenter, Founder and CEO of Wild Birds Unlimited, with some of the brand’s bird seed offerings. If the franchise you are looking at does not survey its franchisees and share the results, it could be a red flag. Be sure to ask them why they do not. their overall survey results to come up with our annual list of the top 200 franchise opportunities for this report. THE IMPORTANCE OF FRANCHISEE SATISFACTION Franchisee satisfaction ratings are like when Dorothy looks behind the curtain and finds out the truth about the wizard. They show you whether or not a franchise opportunity is really as good as it appears and fits your values and vision by providing insight into a system’s culture, training, leadership, financial outlook, franchisee community and much more. Franchisors are increasingly measuring franchisee satisfaction and using the results to improve their networks and attract potential franchisees like you. If the franchise you are looking at does not survey its franchisees and share the results, it could be a red flag. Be sure to ask them why they do not. Openness contributes to a trusting relationship between franchisee and franchisor. In fact, the companies named in this report were rated higher by their franchisees when they were asked “Do you trust your franchisor?” compared to all franchises that participated in our survey. This finding didn’t surprise us since most of the companies in this report share their satisfaction survey data with their franchisees. WHAT’S HOT, WHAT’S NEW While compiling this year’s report, we discovered several new and interesting insights. The five franchise industries leading the way in franchisee satisfaction are: Advertising & Sales, Education, Senior Care, Real Estate and Child Services. Sports & Recreation, which almost tied for 5th place with Child Services, may well make the top five sectors list next year. While Food, Travel & Hospitality and Automotive tend to average lower franchisee satisfaction across the board, several franchises in these sectors had outstanding ratings including Hwy 55 Burgers Shakes & Fries, Cruise Planners and Christian Brothers Automotive. When it comes to the most unique business model we’ve seen in a while, Apex Fun Run is the winner. The company makes money by raising money. Since 2012 its franchisees, who A PERFECT 10 Consistent annual placement as a top franchise in our Guide to Today’s Top Franchises demonstrates reliable performance. This year, ten companies have earned the honor of being featured in our newly created Hall of Fame as the result of appearing on our list for 10 consecutive years. They are ActionCOACH, FASTSIGNS, Heaven’s Best Carpet Cleaning, HomeVestors, JumpBunch, Miracle Method, Our Town America, Pop-A-Lock, Two Men and a Truck and Wild Birds Unlimited. STAYING POWER MATTERS Investing in a franchise is probably the largest expenditure you’ll make after the purchase of your home, so it is crucial to determine if the company has staying power. Key factors that influence a franchise’s enduring success include innovation, adaptability, market customization, customer retention and training & support. Let’s take a look at what goes into each of these areas so you can better understand what to look for and know what questions to ask when researching these and similar opportunities. Innovation: While a few industries do not need to invest heavily in research and development, most companies today have to engage in constant innovation in order to keep their brand fresh and their businesses growing. What are the franchises you are considering doing to further develop their service or product, maintain their creative edge, and stay relevant to their customer base? 6 | For more information on this report, visit: www.FranchiseBusinessReview.com
SPECIAL REPORT: Top Franchises “We are very aggressive when it comes to innovation,” says Auntie Anne’s Vice President, Global Marketing, Heather Neary. “We stay on top of consumer trends to ensure we are providing them with the solutions they are seeking and leverage technology on behalf of our franchisees and customers.” The franchise brands named in this report scored about 12% higher than average in innovation and creativity. Perhaps more telling is that there were over 36% more occurrences of an “excellent” rating, the highest response option, by franchisees of the Top 200 Franchises, showing these systems are focused on evolving their brands in order to meet changing consumer needs and desires. “We have always believed that if people, products and presentation are carefully managed that our franchisees will be successful. With this in mind, we started the Energy Project, which outlines best practices to create a high energy, positive customer experience in our stores,” says Jim Carpenter, Founder, and CEO of Wild Birds Unlimited. “It addresses products and presentation, as well as how to interact with customers.” Adaptability: How will the franchise be able to weather shifts such as changes in the minimum wage, healthcare requirements or the economy that could impact your business? These hot topics should be on every system’s mind. “We have a full-time, six-person Government Team and engage outside consultants on an as needed basis,” says Jeff Huber, President & Chief Operating Officer at Home Instead Senior Care. “Their job is to advocate for government policy and public opinion in favor of at home care for seniors.” Market Customization: Can you customize your franchise’s offerings to your marketplace to ensure a sustainable revenue stream? “We have some franchisees who contract with local schools, hospitals and skilled nursing facilities, while others maximize our National Account partnerships with highlyskilled nursing or workers’ compensation cases,” says Shelly Sun, CEO and Co-Founder of BrightStar Care. “In addition to our core menu, our franchisees can elect to offer breakfast and smoothies,” says Auntie Anne’s Neary. “This has helped us extend our offerings to non-traditional locations including universities, food trucks and airports.” Customer Retention: What will the franchise do to help you keep customers coming back? Beyond delivering a great experience, generating repeat business relies on a variety of approaches, top of which is customer rewards. “We launched My Pretzel Perks, a mobile customer loyalty app, in August. Depending on the number of points a customer earns, they can attain one of three loyalty tiers: Pretzel Fan, Pretzel Lover or Pretzel Perfect,” says Neary. “Rewards ranging from special discounts and offers to free products are given with every 300 points earned as well as when a loyalty tier is reached.” 2015 Most Satisfied Franchise Sectors Continued on page 17. We asked franchisors from each of the top five sectors to shed light on what is driving their popularity. Advertising & Sales: ”Companies are scrambling to stand out from their competition and to attract new customers,“ says Brian Mattingly, President of Welcomemat Services. “Measurable marketing programs that enable them to touch potential customers and track which offers are getting the best responses are in demand.” Education: “As recently as last year, it was reported that U.S. students scored below international averages in math and science. It is well known that early education can set children up for success by introducing them to learning in areas such as science, technology, engineering, arts and mathematics. In addition, it helps them to develop 21st century skills like communication, collaboration, creativity and critical thinking,” says Joseph Schumacher, President & CEO at Goddard Systems. Senior Care: “A perfect storm is brewing in favor of home care for seniors,” says Jeff Huber, President & Chief Operating Officer at Home Instead Senior Care. “One of the major themes of health care reform is to reduce non-essential hospital admissions. At the same time there has been tremendous growth of chronic conditions in the elderly due to extended life expectancy and 90% of seniors want to reside in their own homes.” Real Estate: “The housing market is on the up and forecasted to remain stable for several years to come due to lowered interest rates and looser credit markets,” says Realty ONE CEO, Kuba Jewgieniew. “The use of technology is also positively impacting the field by expediting many processes and efficiently bringing buyers and realtors together.” Child Services: “The combination of school cuts in physical fitness, music and art with a growing concern that kids are spending too much time on computers or in front of the TV has created a demand for programs that get kids moving or creating,” says Tom Bunchman, CEO and Founder of JumpBunch. For more information on this report, visit: www.FranchiseBusinessReview.com | 7
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2015 Guide to Today's Top Franchises

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