Today's Hottest Franchise?

[Evan]

With so many franchises available for sale these days what do you guys think is the hottest sector to get involved in?

I've seen everything from fitness studios to onsite computer services to refilling printer cartridges and more...

I'd be curious to know your thoughts on what the hottest opportunies are today.

[myownboss]

I considered looking at the WSI model before starting my business. I think anything Internet related is going to be hot - everyone needs to get their website ranked highly and most entrepreneurs don't know what to do to about it.

WSI is the biggest Internet optimization franchise but I found them to be too expensive.

[coenheads]

Hot can turn cold pretty quick in todays' competitve marketplace and from evolving technoligies.

If a franchise concept rely's on the status quo to do business things can quickly turn to ice cubes.

Look at a couple of the Hot franchise concepts from 10 years ago; Blockbuster, and Moto Photo. With the advent of DVD's, NetFlix, on demand, satelite etc. Blockbuster has lost its marketshare. Moto Photo meet the digital camera, film developing is not as instant as a digital camera.

I caution you with some of the "hot" concepts out there: Ebay Drop Off stores, many companies are selling franchises like hotcakes, most of the franchisees are hemoraging money.

Another hot concept in prepare you own meals, I can't even keep track of how many companies are offering franchises in that category. I don't get the business model, dosen't make sense to me. Sure somebody may go with some friends, drink some wine, prepare some meals, have some laughs, but I don' t see as an intergal part of everyday life, you need more than just a good or cute idea.

What is more important is turn into your own radio station in your mind WIIFM, Whats in it for me. Consider what lifestyle you want to lead, what positive experiences you ahve had, what are your proudest accomplishments, what is your financial situation?

That's where you start, and then review opportunities that fit those ket elements. View one of my blog entrees about how to idenitify your must have priorities: http://www.bluemaumau.org/how_to_identi ... _franchise

Jim Coen
www.franchiseperfection.com

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[coenheads]

[coenheads]

Well maybe after Sundays loss they are not as hot a franchise as previouly.

I still wouldn't mind owning that franchise.

[coenheads]

Here are the worst 15 performing franchises in regards to having the highest Small Business Administration (SBA) loan failure rates. The list is dotted with sub sandwich shops, fitness centers and car shops.

WORST FRANCHISE LOAN FAILURES Failure %
1 OBEE'S SOUP SALAD SUBS 55.56%
2 LADY OF AMERICA 41.94%
3 COUNTRY CLUTTER (BED & BREAKFAST) 41.18%
4 COPY CLUB 36.36%
5 ALL TUNE AND LUBE 35.71%
6 PICKERMAN'S 35.71%
7 PHILLY CONNECTION 35.59%
8 ROLY POLY ROLLED SANDWICHES 34.78%
9 COTTMAN TRANSMISSION 34.48%
10 HAIR COLOR EXPRESS 33.33%
11 LEE MYLES AUTOMOTIVE TRANSMISSIONS 33.33%
12 GODFATHER'S PIZZA 33.33%
13 SMOOTHIE FACTORY 33.33%
14 BLIMPIE 31.39%
15 GOLF U.S.A. (RETAIL GOLF EQUIP.) 30.77%

Source: Small Business Administration, SBA Loan Performance Within Franchise Code for the Period of FY 2001 - 2005

[Evan]

Great info Jim!

Do you have any info on the best performing ones?

[Mayra]

What about 1-800-Got-Junk? I've heard a lot of buzz about that company. And I actually stumbled on an article this morning about it.
http://www.theglobeandmail.com/servlet/story/RTGAM.20061018.wsrsmallbizfranchise18/BNStory/specialSmallBusiness/home
What do you guys think? Hot or not?
Sounds pretty hot to me.

[coenheads]

Evan,

There are over 120 Franchises listed by the SBA with 0% Loan Failure from 10-1-00 to 9-30-05 these companies have at leat 10 loans disbursed.

A number of the companies are Hotel/Motel Franchises so I listed them separately.

Since all the ones listed have 0% loan failure I listed them descending by # of loans disbursed.

Top 20 (by # loans Disbursed) 0% SBA Loan Failure (does not include hotels/motels)

1 21425--CULVER'S FROZEN CUSTARD 85
2 66910--PRIMROSE SCHOOL (DAYCARE) 76
3 14467--CARTRIDGE WORLD STORES 54
4 68021--QUIZNO'S SUBS 41
5 06560--AUNTIE ANN'S (SOFT PRETZELS) 40
6 29912--FIREHOUSE SUBS 35
7 31154--FOOT SOLUTIONS 35
8 52707--MEDICAP PHARMACY 35
9 09802--BEN & JERRY'S ICE CREAM 33
10 67759--COMFORT SUITES 33
11 70150--RITTER'S FROZEN CUSTARD 32
12 05650--ARBY'S 31
13 65160--PLATO'S CLOSET 31
14 67417--PUMP IT UP 30
15 69149--REMAX 30
16 71456--SALAD WORKS, INC. 30
17 76282--SONIC DRIVE-IN 27
18 84725--UNION 76 OIL 27
19 17049--CHRISTIAN BROTHERS AUTOMOTIVE 26
20 78950--SUNOCO SERVICE STATION 26

Top 10 0% SBA Loan Failure Hotel/Motels

1 10275--BEST WESTERN INN 104
2 67750--COMFORT INN 98
3 38605--HOLIDAY INN EXPRESS 87
4 36680--HAMPTON INNS 57
5 53165--MICROTEL 33
6 75385--SLEEP INN MOTEL 26
7 04160--AMERIHOST INN 18
8 69134--RED ROOF INN 13
9 17230--CLARION INN & SUITES 11
10 20715--COUNTRY INN 11

[Stefanie]

Here's a great resource that lists the top franchises by industry or country, as well as by investment range:

http://www.franchiseeurope.com/

[Dani]

Here's a good online directory of U.S. and international franchise opportunities up for grabs (it also examines trends):

http://www.bison.com/

[coenheads]

To learn which franchises are worthy of your investment visit my new blog:

"Let's Talk Franchising"

[Yasunori]

If you are interested in the Japanese franchise market, please check out the following homepage.
This is a homepage of Japan Franchise Association.
http://jfa.jfa-fc.or.jp/about_jfa_English.html

I hope it is useful for you

[openafranchise]

I try to keep up on some of the hot franchises, I have noticed an increase in interest in the service industries. Lower cost, lower overhead etc... I think this is because most folks have less to invest or less they are willing to risk.

John Henning
Franchise Consultant