Enticing Franchises - Top 9 List

[RussellWebb]

I was reading an intriguing article where Robert Purvin, chairman of the American Association of Franchisees and Dealers shares some of his valuable insights on Franchises that make the grade.

His list isn't for the cash strapped. He's emphasizing bigger franchisee investments and 4 of his picks are in the hotel business.

Purvin: "When I am confined to my selection of 'retail franchises' [business-format franchises], the answer will vary based upon many variable goals: new or proven concept, established product or the latest fad, great profit potential or reliable cash flow, great collaborative relationship or strict adherence to a well maintained system, and whether the quality of the brand trumps the fairness of the franchise agreement".

1. MicroTel
2. Motel 6
3. Holiday Inn
4. Settle Inns
5. McDonald's
6. Yum! Brands
7. Jenny Craig
8. Expetec
9. Valpak

Why so many Hotels?

Purvin: "Historically, hotels were a stronger segment in franchising. I have done a lot of analysis about why hotels tend to top fair franchisors. I conclude that the typical hotel owner has a lot of money and has a lot of real estate so he is able to afford attorneys. That class of investor has been unwilling to sign indentured servitude agreements. These people stood up for themselves and weren’t going to buy into deals that often retail business people did".

..

[Kevin Lee]

I was reading an intriguing article where Robert Purvin, chairman of the American Association of Franchisees and Dealers shares some of his valuable insights on Franchises that make the grade.

His list isn't for the cash strapped. He's emphasizing bigger franchisee investments and 4 of his picks are in the hotel business.

Purvin: "When I am confined to my selection of 'retail franchises' [business-format franchises], the answer will vary based upon many variable goals: new or proven concept, established product or the latest fad, great profit potential or reliable cash flow, great collaborative relationship or strict adherence to a well maintained system, and whether the quality of the brand trumps the fairness of the franchise agreement".

1. MicroTel
2. Motel 6
3. Holiday Inn
4. Settle Inns
5. McDonald's
6. Yum! Brands
7. Jenny Craig
8. Expetec
9. Valpak

Why so many Hotels?

Purvin: "Historically, hotels were a stronger segment in franchising. I have done a lot of analysis about why hotels tend to top fair franchisors. I conclude that the typical hotel owner has a lot of money and has a lot of real estate so he is able to afford attorneys. That class of investor has been unwilling to sign indentured servitude agreements. These people stood up for themselves and weren’t going to buy into deals that often retail business people did".

..

Hi Russell,

Would you also happen to have a list for those of us who are "cash strapped" ?

[RussellWebb]

Sure Kevin... There are a lot of good franchises out there... Here's a list of some franchises that get high scores in franchisee satisfaction and franchiser management.

Updated with costs - these are minimum investments

129k - Express Personnel
36k - Maid Brigade
245k - Great Harvest Bread
500k - IHOP
4k - ReBath LLC
107k - BrightStar Healthcare
65k - Synergy HomeCare
30k - Molly Maid
75k - The Little Gym

There's more listed here in FranSurveys article. "FranSurvey was designed to give prospective franchisees a fair and unbiased evaluation of how effectively each franchise company supports its franchisees. The key to the FranSurvey approach is that we contact every franchisee and ask them about their relationship with the franchise company."

[GT Bulmer]

Hey, Russell:

Thanks for the info ... and thanks, Kevin, for asking for the "alternative" list!

Not 15 minutes ago there was an IHOP ad on TV (Wheel of Fortune show) and I said to dear spouse, "I wish we had an IHOP here in our little town!"

Hmm. Maybe I should look into it?

A year or two ago I looked at Tim Horton's, but it would take nearly a million bucks before the doors opened ... and I didn't want to work THAT hard just to get my favourite flavour of coffee!

GT

[ideasuniversity]

All Franchise listed above are in millions of dollars. Do you have the list of Franchise in thousands

[RussellWebb]

Well GT... sorry to mislead here, IHOP should be on that first list because it requires a bigger investment.

IdeasUniversity - Most on this second list are more affordable...I'll post an update on the earlier post with estimated costs.

[ideasuniversity]

Well GT... sorry to mislead here, IHOP should be on that first list because it requires a bigger investment.

IdeasUniversity - Most on this second list are more affordable...I'll post an update on the earlier post with estimated costs.

Russell,
I am waiting for the updated post

[GT Bulmer]

Well GT... sorry to mislead here, IHOP should be on that first list because it requires a bigger investment.

What?! Oh, oh. I already cracked open my kids' piggybanks trying to raise extra capital for the project! Back to the drawing board. ( ... just joking, of course.)

I knew it sounded too good to be true, but I also suspected that even if it had been in a lower financial category, it would still likely be beyond my reach at this time.

And your lists, Russell, are still good lists - they get people thinking in different directions and thinking of possibilities.

GT

[RussellWebb]

Hi IdeasUniversity... the update was posted earlier...just scroll up this thread and review the 2nd list and you'll see the average start up costs.

GT - Maybe someday? IHOP has a solid reputation as a franchiser. They really know how to co-exist with their franchisees and develop a win/win scenario. Another interesting point would be their slow growth strategy. By taking their time and carefully building up their franchise program they have avoided the pitfalls of the fast track approach.

[GT Bulmer]

Hi, Russell:

I clicked on that 500k IHOP enticement but didn't last long at the site after looking at all that great food that I can't get in my tiny little northern town! But I will definitely keep it in mind.

The 4k ReBath LLC opportunity is more within my price range ... but, alas, they always tell you that you should choose something you have some degree of familiarity with ... so ... bathing? I don't know.

GT

p.s. But do keep those great ideas coming!

[JBunion]

There are a tremendous amount of Canadian franchises worth investing in. Take a look HERE to search relevant franchises.