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Top 10 Franchises For Sale In 2009

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Article Contributed by GlobalBX.com
Every year, Entrepreneur magazine names its top franchises for sale, gathered up into a list called the “Franchise 500.” By referring to this list, prospective franchise owners can determine the top franchise for sale in any number of categories—the best fast-food franchise, the best auto service franchise, the best do-it-yourself picture framing franchise, and so on. This publication also names the 10 best franchises for sale regardless of the industry they are in, and it is this list that offers the most coveted ranking of all. The “next hottest franchise concept” certainly has a chance to advance in the standings. But year after year, the same companies continue to dominate this list, mainly because they have superb brand recognition, a solid financial base, highly satisfied franchisees committed to excellence, and products or services that have stood the test of time. As Entrepreneur sees it, here are the top 10 franchise companies for 2009.
1. Subway
The top company on this list has gained a reputation for offering fresh, healthy food at very reasonable prices. They also come up with some very innovative national marketing campaigns to keep the name “fresh” in the public’s eye. Subway began franchising in 1974 and has more than 21,000 franchises in the United States. The company charges a franchise fee of $15,000, with ongoing royalties of eight percent based on gross annual sales. One’s total investment will run from between $78,000 and $238,000. Subway has franchises for sale in nearly every U.S. state.
2. McDonald’s
Ray Kroc took a California hamburger joint owned by two brothers and turned it into the world’s largest fast-food restaurant chain. Over the years, McDonald’s has been an innovator from the aspects of both service and menu items, inventing such concepts as the kids’ meal and drink tops with pre-punched access holes. The company charges a franchise fee of $45,000, with ongoing royalties of 12.5 percent based on gross annual sales. One’s total investment will run from between $950,000 and $1.8 million. McDonald’s has a franchise for sale to residents of every U.S. state, plus worldwide opportunities exist as well.
3. Liberty Tax Service
With the tax deadline of April 15 looming over the heads of U.S. citizens every year, more and more taxpayers realize that it pays to hire an outside expert to help them complete their filings. The company started as Jackson Hewitt Tax Service in 1972 (and began franchising a year later) and changed its name after buying out another tax business in Canada. The company charges a franchise fee of $40,000, with variable ongoing royalties based on gross annual sales. One’s total investment will run from between $56,000 and $70,000. Liberty Tax Service has franchises for sale to anyone living in the U.S. or Canada.
4. Sonic Drive-In Restaurants
This company started as a root beer stand in 1954 in Shawnee, Oklahoma, jumping into the franchise business five years later. Today there are close to 3,000 Sonic Drive-In franchises across the country. The company charges a franchise fee of $45,000, with ongoing royalties ranging from two percent to five percent, based on gross annual sales. One’s total investment will run from between $1.2 million and $3.2 million. Sonic currently seeks out residents of Canada, New Zealand and Australia, offering exclusive territories in its franchise for sale.
5. InterContinental Hotels Group
The flagship property in this massive chain is the self-named InterContinental, which include some of the most prestigious hotels in such world capitals as London, Paris, Vienna, Cairo, Nairobi, and many others. This hotel conglomerate also includes such familiar brand names as Holiday Inn, Crown Plaza, Staybridge, and Candlewood. There are more than 2,600 franchises in the U.S. alone, as well as another 800-plus in foreign countries. Franchise fees and total investments will vary widely, since every property is unique. The company charges an ongoing royalty of five percent based on gross annual sales. InterContinental has franchises for sale in Oregon as well as assorted worldwide locations.
6. Ace Hardware Corp.
The neighborhood hardware store is alive and well in the guise of Ace, a national chain that prides itself on hometown values and helpful personnel who can tell you the best way to paint a door or repair a fence. The company began in 1924 and became a franchise operation in 1976. There are currently more than 4,200 U.S. franchises. The company charges an application fee of $5,000, and one’s total investment will run from between $400,000 and $1.1 million. Ace Hardware has franchise for sale opportunities in all U.S. states.
7. Pizza Hut
In 1957, when this pizza chain started business as a single restaurant in Wichita, Kansas, no one would have suspected that it would grow into the largest pizza restaurant chain in the world. Today there are nearly 10,000 franchises in existence, including “express” and kiosk locations that expose Pizza Hut products to more people than ever. The company charges a franchise fee of $25,000, with ongoing royalties of six percent based on gross annual sales. One’s total investment will run from between $317,000 and $2.9 million. Pizza Hut has franchises for sale in Oregon as well as assorted worldwide locations.
8. The UPS Store / Mail Boxes Etc.
Mail Boxes Etc. started in 1980 as a competitor to the U.S. Mail and has since expanded to offer all kinds of services that include the sale of packing materials, copying and printing, mailbox rentals, and shipments of darned near anything to anybody who has a permanent address. Re-branded as The UPS Store – although it ships by other carriers as well – the company charges a franchise fee of $30,000, with ongoing royalties of five percent based on gross annual sales. One’s total investment will run from between $155,000 and $295,000. The UPS Store has franchise for sale opportunities in all U.S. states, plus various locations worldwide.
9. Circle K
This convenience store chain was founded in 1951 in El Paso, Texas. They waited until 1995 to begin franchising, but since then Circle K has seen its U.S. franchises grow to more than 450. Surprisingly there are nearly 3,700 franchises overseas. The company charges a franchise fee of $15,000, with ongoing royalties of four percent based on gross annual sales. One’s total investment will run from between $161,000 and $1.4 million. In a nationwide expansion mode, Circle K has franchises for sale across the United States as well as in assorted worldwide locations.
10. Papa John’s International
This pizza chain got its start in 1985 in Jeffersonville, Indiana. Papa John’s has more than 2,100 U.S. franchises and close to 500 on international soil. The company charges a franchise fee of $25,000, with ongoing royalties of five percent based on gross annual sales. One’s total investment will run from between $135,000 and $490,000. Papa John’s has franchise for sale opportunities in all U.S. states.
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UFOC: What is a Franchise UFOC – Uniform Franchise Offering Circular?

Before you get involved with a franchise and commit to a future within a specific brand or business, there are essential elements of the law that you need to know. That law is determined by the Federal Trade Commission (FTC), which requires franchisors to present all potential franchisees with a specific document offering disclosures at least ten days before a contract is signed or money changes hands. That agreement is known as the Uniform Franchise Offering Circular (UFOC). It is designed to help potential franchisees decide whether an opportunity is the right investment for them and, as such, contains a total of 23 sections.
The Franchisor and its Predecessors and Affiliates – This is the first section and provides specific information about the franchisor. This includes the location, the products / services available, and the experience of personnel working for the company.
Business Experience – This is the second section and it provides you with employment histories for all of the franchise brokers, board members, executives, officers, and management. This is to demonstrate their experience and provides specific information for the previous five years.
Litigation – This is the third section and provides information about any and all litigation that any of the officers, board members, management and executives, as well as the franchisor itself, have previously been involved in. Your attorney should fully investigate any issues arising here.
Bankruptcy – This is the fourth section and is similar to litigation in that it will detail bankruptcy issues instead of litigation proceedings.
Fees – The fifth section informs you of any upfront fees and charges that are applicable to you, including any initial franchising fee that must be paid.
Ongoing Fees – The sixth section details all costs, fees, and payments that are required to be paid following those in section five. This may be royalties, advertising, maintenance, construction, and even staffing costs.
Initial Investment – The seventh section details how much you will need to plough into the business to get it off the ground. These figures are essential for applying for financing and compiling your business plan. Of course, the figures here are typical rather than actual and more of an investment may be required.
Restrictions on Sources of Products and Services – The eighth section is complex on paper but is easy to understand as it details the goods that you are obligated to purchase or lease from the franchisor or its partners. There are often details like the quantities of goods you have to purchase, so you will have an insight into the running of the business.
Franchisee’s Obligations – The ninth section details your own personal obligations relating to the business and may or may not include policies, sale figures, training, and the site itself.
Financing – The tenth section will detail an outline of financial plans and arrangements that are available to you as a franchisee.
Franchisor’s Obligations – This eleventh section will take some reading as it is easily the longest area of the UFOC. It is also extremely important because it details the franchisor’s obligations to you. It includes various information and all of it is vital to your interests. Pay particular attention to the part outlining the advertising policy.
Territory – The twelfth section of the UFOC details your legal territorial obligations and rights. It outlines whether you have exclusivity or whether you will or may have to share a location with your competition.
Trademarks – The thirteenth section outlines the trademark rights held and whom they actually belong to. It also includes legal details of how the protection works, and thus how and when you will be able to use it.
Patents, Copyrights and Proprietary Information – Further to the above section, the fourteenth section covers ownership of patents and copyrights, and the conditions under which you may use them.
Obligation to Participate in the Actual Operation of The Franchise Business – This may sound complex, but the fifteenth section basically outlines whether you have to be involved in the business personally and the extent of your involvement.
Restrictions on What The Franchisee May Sell – Section sixteen outlines the products you will sell if you invest in the franchise, and gives ideas of further products that you may be able to sell at a later date.
Renewal, Termination, Transfer and Dispute Resolution – Section seventeen is there to protect the franchisor and franchisee because it tells you how and why you may be terminated as well as determining your rights. Should a conflict occur, it would also inform you of how to proceed with a complaint or issue.
Public Figures – The eighteenth section highlights the celebrities or public personas that will be involved in any marketing campaigns, as well as the way in which he or she will receive compensation.
Earnings Claims – The nineteenth section of the UFOC is an important one because it details typical profits, sales, and information about other franchisees. This is not required so it may not be there, but if it is not then do some research to satisfy your suspicions because you need to know these figures.
List of Outlets – Section twenty of the UFOC details statistics about the system that the franchisor employs, including the number of outlets and the location details of at least 100 of them. There will also be information about closures and contract terminations over the past three years.
Financial Statements – Category twenty-one of the UFOC relates to the franchisor’s financial background and the full statements of accounts for the previous three years. It also includes the current balance sheet. All of the above has to be certified by an accountant to maintain their validity. Your own accountant should examine them for you.
Contracts And Agreements – Section twenty-two is exactly what it says it is, so be sure to consult with your attorney to ensure that they are in your best interests.
Acknowledgment of Receipt by Respective Franchisee – The final section is literally an acknowledgement that you received the Uniform Franchise Offering Circular and is of no other consequence.
Although the Federal Trade Commission requires that all of the above be sent to you in the form of a Uniform Franchising Offering Circular (UFOC), they will not have reviewed or approved the information within the document. As such, it is your responsibility to check its accuracy via your attorney and make sure that the franchise business is really in your best interests.
About the Author:
Business For Sale
GlobalBX provides a FREE business for sale exchange connecting business buyers, sellers and lenders. Search over 32,000 businesses for sale and franchise opportunities. Sell a business for free with no listing fees and zero commissions. We have all the top franchises as well as franchise resales. Find franchise reviews and get free franchise information. You can also contact over 300 lenders directly and get a business loan.

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Choosing The Right Franchise For You

You have two big decisions to make when deliberating over whether to use a franchise opportunity to set up a business. If you have already determined that a franchise may be the way to go for you then you have to choose the right one, but how can you do that?
First, you have to analyze yourself in depth to ensure that you have the personal skills, wants, and needs. You have to know exactly what you are capable of and the extent of your business aspirations. Brainstorming is a handy tool to use in this situation and it is essential that you do so before investigating current franchise opportunities that are available. Starting with industry analysis is the best route because you can then match your skill set to the industry requirements. As such, you can then narrow down your options to a few select industries before assessing whether those franchise options would work in your local geographic area. Only then can you begin to contact the franchisors and create a business plan.
When contacting franchisors about possible opportunities, always ask them to send you franchise information. If they are to be trusted then this should be available at no cost. When you receive the information, be sure to read it extremely carefully, paying attention to every detail. Do not take anything at face value and research every detail given in depth. After all, this is your future and no stone should be left unturned. You can use trade magazines, Internet profiles, professional journals, and annual reports. You should also contact the Federal Trade Commission (FTC) and local authorities to make sure that there are no issues with the franchisor. You should extensively look into the reputation, financial health, growth, management, and day to day running of the business because it will be passed onto you as a franchisee.
When you have digested all of the above information and you are happy with it, ask for details of existing franchisees. It is essential to speak to them because they can give you an accurate viewpoint of how the franchisor runs the business, what the management is like to deal with, insider secrets, how the business is faring, and so on. Any good franchisor will be more than happy to provide this information whereas others may be reticent. Franchisees provide critical information so again only pursue franchises that are accessible. Only then should you assemble a legal team and accountant to answer any legal and financial questions you may have. They will also be able to find any holes that you have yet to discover, thus protecting your own interests.
About the Author:
business for sale
GlobalBX provides a FREE business for sale exchange connecting business buyers, sellers and lenders. Search over 32,000 businesses for sale and franchise opportunities. Sell a business for free with no listing fees and zero commissions. We have all the top franchises as well as franchise resales. Find franchise reviews and get free franchise information. You can also contact over 300 lenders directly and get a business loan.

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Franchise

Does Size Truly Matter?

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Sometimes size does matter. When talking about a piece of chocolate cake – bigger is always better. When evaluating new cell phones – smaller gets the nod. In franchising, there are some advantages to being part of a large franchise system and other advantages to joining a small system. The question is not, “Which is better?” but “Which is better for you?”
Advantages of Large Franchise Systems
Everyone is familiar with the really big franchise companies such as McDonalds, Subway. Each has over 25,000 units and they are ubiquitous around the country if not the world. Since franchise companies generally start out with a single unit, growth of this magnitude takes years and years to achieve. Large franchise companies have had the opportunity to test and prove their value over and over again, which is the main attraction of franchising ? a proven operating system.
Perhaps the most obvious advantage of a large franchise is name recognition. When you see the Golden Arches your mouth will start watering even before you smell the hamburgers frying. Larger systems will have larger advertising budgets, meaning there will be more, and usually better, national advertising campaigns, increasing name recognition. Even moderately large systems, those with units numbering in the hundreds, have been around long enough to have tweaked their operations to the point they provide a pretty low risk to potential buyers. A smaller or newer franchise system may have to adjust their operations many times before achieving optimal results.
Support is an additional advantage of being a franchisee in a large franchise system. To achieve growth, a company will need to have a dedicated support staff that can help franchisees with any issue or problem. Also, larger companies are more likely to provide new franchisees with such specialized resources as demographic profiling, real estate assistance and technical support.
Advantages of Small Franchise Systems
With all of the advantages of a large franchise system, not everything is a bed of roses. First of all, there’s the whole idea of being a small fish in a large pond. If you like individualized attention, in a small system you may have a direct line to the company’s president or vice president. In a large system, you contact person may be a low-level employee in the giant corporate structure.
Franchisees in a small franchise system can have a greater say in the business as a whole and will sometimes have more flexibility in managing their own businesses. Once a system grows to a substantial size, there will generally be extensive rules for franchisees as well as a staff who ensures the compliance of each and every regulation – from the color of your businesses’ roof to the way you greet customers at the counter. At a smaller franchise system you will usually find fewer rules. If you like to do a bit of experimenting, a smaller franchise company may allow you to do so and will even welcome your ideas and suggestions.
Another advantage of smaller franchise systems is that they are less likely than large franchisors to be sold out in your area. If you want to join a large franchise, you may have to wait until an existing franchisee wants to sell.
And that brings up another point: Subway does not need to look for franchisees. They probably get hundreds of inquiries every week if not every day. Of those inquiries they are only going to be interested in awarding franchises to people with very strong qualifications. A smaller, newer franchise company is going to be more interested in you and may be willing to make accommodations so that you can join the team.
The franchise company and the people running it are more important than the size of the business as far as franchisee satisfaction goes. If you are interested in a business but unsure if you’d be a good fit, there’s one sure way to find out and that’s by talking to a number of franchisees in the system.
You will need to ask if they felt the support and training they received prior to opening their franchise unit was adequate. Find out how they feel about the support they are currently receiving and if they feel they are on track to meet their financial goals.
Both large and small franchise concepts have advantages and disadvantages so the more you understand about the company and your role as a franchisee, the better equipped you will be to make the decision.

KimberlyEllisPhoto.jpgKimberley Ellis is the President of Bison.com, a leading online resource for franchise and business opportunities. She has been quoted as an industry expert in USA Today, Wall Street Journal and a variety of local and regional publications regarding trends in business and franchising. Kim combines her entrepreneurial spirit with a diverse background in marketing and operation to help others succeed in franchising.

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Choosing a Franchise

busineesman-calling.jpgMore and more, women are discovering that franchising is a great way to become a business owner. Whether your background is banking or baking, marketing or mothering, you’ve probably developed a set of skills that will translate to any number of franchise opportunities. And, because a franchisor will provide you with the systems, operations and training, you can make a complete career change without starting at the bottom and working your way up!
But how do you find the franchise opportunity that is right for you? With several thousand franchised businesses in the U.S., your options are nearly limitless. But don’t despair – here’s a list of steps you can take to narrow the choices to a few that really match your needs, skills, personality and aspirations.
ONE
The first step to finding that perfect franchised business is to take a serious look at what you, the potential franchisee, will be able to offer.
1. What skills, experience and interests do you have?
2. How much money can you invest and how much would you like to make?
3. Are you comfortable managing others or would you prefer to work alone?
4. Where do you want to work? Are you willing to relocate?
5. What hours are you willing to work and what lifestyle expectations do you have after the business is established?
6. How do you feel about selling and the sales process?
7. What do you feel to be your strengths and weaknesses in business?
Make a list of your answers to all of these questions and then use this as a guide as you do your research. This will help you quickly eliminate those businesses that just don’t fit and help you stay focused on what is important to you.
TWO
Now you are ready to begin doing some serious searching. Start with item 1 on your list and think about your talents and interests. Do you love working with children? There are a plethora of wonderful franchises that enhance the lives of children and help their parents – everything from baby aerobics to teen tutoring. Is travel your passion? Why not consider a travel franchise?
Did you slurp a delightful fruit smoothie while on vacation but can’t find the same brand in your neighborhood? Maybe that’s the business you’ve been looking for. And don’t overlook service businesses – they can offer high profits for a low investment.
Another source to get you started is a franchise advertising website, such as Bison.com. These sites often have the franchise companies organized by category to help you narrow your search and usually list the basic financial requirements of the business and the type of franchisee they are looking for.
THREE
At this point you have found a number of franchise companies that look promising and you’ve compared the information available on their web sites against your list. Your next step is to contact these companies and request their UFOC (Uniform Franchise Offering Circular, a document every franchise in the United States is required to provide) and then to review it carefully.
The UFOC will tell you the history of the company, the training and marketing programs, and what costs, royalties and fees you will be required to pay. Some franchisors also provide earnings claims in the UFOC that will help you estimate the potential of the business.
Franchise companies are required to revise and file their UFOC yearly and whenever major changes are made so the information is usually very current. By paying attention to what you discover in a company’s UFOC, you can weed out franchises that just don’t measure up. Some warning signs of a franchise that is facing challenges are extensive litigation with franchisees or a closing rate of units greater than what’s being opened.
FOUR
CALL EXISTING FRANCHISEES! Step four is crucial to your understanding of how the franchisor works with its franchisees. This is not a step you can skip or do haphazardly. Contact information for existing franchisees is available in the UFOC and it’s a good idea to make a list of the questions you will be asking before you make the calls.
Existing franchisees are your best source of information for finding out what really happens in a business on a day-to-day basis. You can ask what they like and dislike about the business and if they are happy with corporate support. They may be able to give you ideas about what they’d do differently if they were starting their business again and even give you a feel for the type of earnings their franchise makes.
Gather a variety of opinions from franchisees in different areas of the country and particularly any franchisees in areas similar to the one you are in. These calls should give you a clear idea of how the franchisor helps a franchisee during the start-up phase, how the franchisee feels about the training and support provided and a better idea of the business culture of the franchisor.
FIVE
Hopefully you’ve now found one or several companies that will meet your needs.
When you’ve made it this far, it’s time to go to Discovery Day (an on-site meeting with a franchisor). At this meeting you will be introduced to the top people in the home office and you may make a visit to a local franchisee, allowing you to ask even more questions and maybe to get some hands-on experience with the business.
Discovery Days are very interesting and exciting. When you leave, you will have a good understanding of the franchise. Don’t forget that this is a two-way street. They’ll be evaluating you as thoroughly as you evaluate their business.
SIX
Your last step is both exciting and terrifying at the same time: you need to make a decision. If you have followed all the steps and have been very honest with your self-evaluation and research, you should have confidence that you are making the right decision. Be aware that fear is a normal reaction to new experiences – just don’t let it stop you from achieving your dreams.
Congratulations – you’re ready to be a franchisee!

KimberlyEllisPhoto.jpgKimberley Ellis is the President of Bison.com, a leading online resource for franchise and business opportunities. She has been quoted as an industry expert in USA Today, Wall Street Journal and a variety of local and regional publications regarding trends in business and franchising. Kim combines her entrepreneurial spirit with a diverse background in marketing and operation to help others succeed in franchising.