Special Report | July 2015 | By Daniel P. Smith

2015 Best Franchise Deals

Expanding your franchise portfolio? These 12 brands should be the first you look into.
QSR executives push brand efficiency and prosperity to benefit franchise community.
McAlister’s president Carin Stutz says the brand has three key differentiators: a diverse menu, high-quality service, and, of course, sweet tea. Patrick Heagney Photography

(Click here to submit your brand for the 2016 Best Franchise Deals!)

Having spent three decades helping franchisees evaluate prospective investments, Terry Powell has noticed a monumental shift in the industry. The days of franchisees signing on the dotted line with little more than a review of the royalties, franchise fee, and total investment have largely evaporated, Powell says, replaced by a steady collection of astute entrepreneurs bringing a sophisticated, inquisitive perspective to the table.

“Many of today’s franchisees are looking at a whole list of factors when evaluating a brand, and many are doing this before they even talk to the brand’s development people,” says Powell, who founded The Entrepreneur’s Source consultancy in 1984.

Today’s franchisees want a company that is responsive to its franchise partners and acts in the brand’s best interests, embracing the fact that franchising needs to be a mutually beneficial relationship. Many are favoring operational simplicity, which eases training and management burdens, and scrutinizing the franchisor’s leadership team, evolution, and scalability.

“Franchisees want to see the upside,” Powell says.

Unit economics remain critical, as many prospective franchisees investigate bottom-line earning potential, as well as items like cost of goods, labor efficiency, and supply chain management. Margins, ROI, and payback time stand at the forefront.

“At the end of the day, we’re in the game to make money, so the financial end of any franchise deal needs to make sense,” says Phil Ratner, a managing partner with California-based Synergy Restaurant Consultants and a former quick-service franchisee.

Then, of course, there’s the food, which, alongside the service and experience, must be rich and differentiated.

“There’s a popular saying—‘It’s the food, stupid’—and the successful restaurants have a product that is on trend, delicious, and appealing,” Ratner says.

Though some franchising candidates favor established concepts with proven track records, and others want to ride a brand’s ascent from regional player to national name, the quick-service landscape features compelling franchise deals. Here are a dozen that we think are worth your attention.

 

Hungry Upstart

Teriyaki Madness

TOTAL U.S. UNIT COUNT: 18 (18 franchised)

FRANCHISE FEE: $40,000–$150,000

TOTAL START-UP COSTS: $255,199–$560,850

ROYALTY: 6% gross revenues

RENEWAL FEE: 10% of then-current franchise fee

MARKETING FEE: 2% gross revenues

Capitalizing on a still-surging consumer interest in Asian cuisine, Teriyaki Madness’ customizable meals, all-natural chicken, fresh vegetables, and house-made sauces represent an alluring alternative to quick-service staples like burgers, sandwiches, and pizza.

“People are demanding real food, and the days of boil-in-a-bag meals sold through the drive thru are waning,” says Michael Haith, Teriyaki Madness CEO and chairman. “We’re proud of what we serve, and our franchisees are, too.”

The 18-unit chain, better known as TMAD to its fans, serves up fresh, flavorful Asian cuisine in a hip, fast-casual atmosphere while offering prospective franchisees a scalable opportunity. Haith, in fact, says the Colorado-based concept, which first opened in Las Vegas 10 years ago, was built “from day one to offer a great value proposition to its franchise partners … and a business model that makes sense.”

“We have a management team that understands happy franchisees will help TMAD reach its potential,” Haith says.

Haith says TMAD leadership is “relentlessly focused on franchisee financials.” Total start-up costs top out at around $560,000, while AUV pushed over the $1.1 million mark in 2014, figures that provide TMAD’s franchisees solid ROI and the potential for growth.

The low investment and high return is something many TMAD franchisees choose to replicate, particularly in light of double-digit same-store sales growth over each of the last four years. Haith says every franchise partner who has been in the system more than one year now has additional units in the company’s development pipeline.

“That shows people that our system works and that we’re a scalable deal,” Haith says.

TMAD units range in size from 1,200 to 3,000 square feet, including both traditional and nontraditional spaces, and Haith says the concept’s business model bends to a wide range of opportunities, which helps reject a cookie-cutter look and keeps more money in its franchisees’ pockets.

“If the economics make sense, let’s get in there, get the store open, and start making money,” he says.

TMAD’s ability to deliver on-trend, high-quality product in an efficient manner, Haith adds, delivers two important results: value for the customer and profit for the operator.

“With all we have going for us, we believe we’re a case of right place, right time [for prospective franchisees],” he says.

Planet Sub

TOTAL U.S. UNIT COUNT: 37 (20 franchised)

FRANCHISE FEE: $25,000

TOTAL START-UP COSTS: $190,000–$350,000

ROYALTY: 5% net sales

RENEWAL FEE: $5,000

MARKETING FEE: 0–3% gross revenues

An outgrowth of the cult-classic restaurant Yello Sub out of Lawrence, Kansas, Planet Sub has been crafting oven-baked subs for more than 30 years.

The 37-unit, Kansas City–based chain, which saw its AUV approach $640,000 last year, injects some artisan flair into the quick-service environment, making its own bakery-quality bread; slicing meats, cheese, and veggies on premise; and producing various sauces and spreads from scratch in-house.

With more than 80 stores in development, Planet Sub director of marketing Trevor Forssell says, the concept was designed to scale at every level, “from our real estate and architectural processes down to even the smallest piece of equipment or sourced material.”

Fresh to Order

TOTAL U.S. UNIT COUNT: 15 (8 franchised)

FRANCHISE FEE: $40,000

TOTAL START-UP COSTS: $598,000–$863,000

ROYALTY: 5% net sales

RENEWAL FEE: 10% of then-current franchise fee

MARKETING FEE: 4% net sales

A “fast-fine” pioneer, Fresh to Order delivers a broad menu and diverse flavor profiles, helping to fill rising consumer demand for quality food and affordable price points.

Fresh to Order CEO Pierre Panos touts the 15-unit chain’s strong metrics, including double-digit comps over the last four years, a 2.5-to-1 sales-to-investment ratio, and AUV approaching $2 million, about 40 percent of which comes from dinner.

The Atlanta-based brand is on track to have 50 open stores in the next three years and has prime territories available for development. “There’s a long runway ahead of us, and we have few direct competitors,” Panos says.

Pie Five Pizza Co.

TOTAL U.S. UNIT COUNT: 54 (30 franchised)

FRANCHISE FEE: $25,000

TOTAL START-UP COSTS: $443,500–$479,500

ROYALTY: 6% net sales

RENEWAL FEE: 25% of then-current franchise fee

MARKETING FEE: 2% gross revenues

The ambitious offspring of the 300-unit Pizza Inn chain, Pie Five continues building a name for itself in the swelling fast-casual, make-your-own pizza category. The 54-unit chain serves up customizable pies in less than 150 seconds, allowing guests to select from four crust choices and 27 meat and veggie toppings.

CEO Randy Gier says strong financials—led by a two- to two-and-a-half-year cash-on-cash return and consistent double-digit same-store sales growth—fuel the brand’s national drive, which will include opening 450 new restaurants, 100 of them company-owned, over the next five years.

“We’ll be right there, working side by side with our franchisees, tackling food and labor costs, enhancing service, and supporting each other on the daily business,” Gier says.

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Please do not hesitate to contact us for possible business co-operation Contact us via email: ([email protected]) or call +1-972-914-5244

Hello my name is Larry Scott Gregory and i am a private loan lender.
Are you in need of a loan? Do you want to be financially stable? Or do you
want to expand your business? We offer company loan, auto loan, business
loan, and personal loan at a very reduced interest rate of 3% with comfortable duration which
is negotiable. This offer is open to all that will be able to pay back in
due time.
Contact us via our email: [email protected]

I await your swift response.
Larry Scott Gregory

**AVOID SCAMMERS**

Happy New Year everyone,

My name is Mr Mike Robert and i am the managing director of Mike Robert Loan Service and we give out loans at 3% interest rate and we give out loans with comfortable loans duration for 1 to 30 years.

We give out loans from a minimum of $5,000 to a maximum of $10,000,000.00 and we are highly reliable and we reply to mails regularly.

Do you need a business loan?
Do you need a personal loan?
Do you want to buy a car?
Do you want to refinance?
Do you need a mortgage loan?

If you are serious minded contact us today:
EMAIL 1: [email protected]
EMAIL 2: [email protected]
I hope to hear from you soon.

Mr Mike

Am here to give a great Testimony I have tried a couple of other platform all in search of a good loan company that will help me with a loan unfortunately for me I meet 3 loan company who were only after what I could give them and not helping me they took money from me and did not give me any positive response all I got was stories. Then I found a publication from a loan service and just decided to Email and hear what they have got to say but then I discovered that they spoke well and sounded real I taught about it and gave it a trial. Finally I got the loan just 24 hours after negotiations as if that was not all I got to meet the loan in my account the next evening of the day I contacted them. wow! finally same thing that took me years to get from other loan company too me just 24 hours to get from them. Since then I have decided to help publicist and advertise them for people who meet be in the shoes I was or for persons who need the service here is there company Email: [email protected] give them a trial and thank me later they do not even know I am doing this. just a little way of saying thank You.

A PATH TO FOREVER FINANCIAL FREEDOM FOR EVERYONE [email protected] or CALL/TEXT +1(215)874-8060

Hello everyone in this forum, I am Joyce Acklin from 937 Stratford Park Austin, IN, USA and want to use this medium to express gratitude to EMINENT JOSH the C.E.O of JOSH LOAN COMPANY for fulfilling his promise by granting me a loan, i was stuck in a financial situation and needed to refinance and pay my bills as well as start up a Business. I tried seeking for loans from various loan firms both private and corporate organisations but never with success, and most banks declined my credit request. But as God would have it, i was introduced by a friend named Dianne Faulkner to JOSH LOAN COMPANY whom also confirmed to me that she also obtained a loan from them. In an attempt to resolve my current situation, i got in contact with the company via email/text and undergone the due process of obtaining a loan from the company, to my greatest surprise within 48hrs just like my friend Dianne, i was also granted a loan of $125,000.00; So my advise to everyone who or know someone who desires a loan, "if you must contact any firm with reference to securing a loan online with low interest rate of 2% and better repayment plans/schedule, please contact JOSH LOAN COMPANY. Besides, she doesn’t know that am doing this but due to the joy in me, i'm so happy and wish to let people know more about this great company whom truly give out loans, it is my prayer that GOD should bless them more as they put smiles on peoples faces. You can contact them via email on [email protected] CALL/TEXT +1(215)874-8060 or visit their auxiliary webpage on http://www.joshloancompany.bravesites.com/

My name is Brown Hakeem a resident of 400 Beach Street, Santa Cruz,California 95060. I am a businessman that deals with fashion designing.On the very unfortunate may 1st 2010 which happens to be the Santa Cruz may Day riot, my fashion store got destroyed in the cause of the riot,that moment i felt heart broken. there was no way for me start my life all again i was desperate and frustrated not with the slightest idea of what to do next i tried obtaining a loan from lighthouse bank but i was told that i did not meet the requirement of acquiring a loan at the bank, i also went to Santa Cruz country bank i was also told series of unfortunate story. for about 2 years i was living in almost all series of trauma. One good day i was pondering through the Internet, then i came across some kind of page and i saw a note written by someone, named Mrs Leonard Jacobs testifying about how she got a loan from Palmer loan company. she left an email address([email protected]). i instantly contacted them and before i could know it i got a response.I request for a loan sum of $150,000usd. they assured me that i have a chance of getting the loan am requesting for. i was asked to pass through several procedures, which i did. it was surprising, amazing, in fact words can not describe how i felt getting the loan within 72 hours as i was promised, everything happened so fast. i want to thank Mrs Leonard Jacobs for letting me know about palmer loan company.and so i have taken it upon myself that if i could be helped because i saw somebody who testified of getting a loan from palmer loan company, i will also join that person to bring to the notice of other that could possibly be going through what i went through, that they should contact palmer loan company at [email protected] and shine.

Hello,

Are you tired of seeking loans and Mortgages,have you been turned down
constantly By your banks and other financial institutions,We offer any form
of loan to individuals and corporate bodies at low interest rate of 3% .If
you are interested in taking a loan,feel free to contact us today,we
promise to offer you the best services ever Just give us a try, because a
trial will convince you.

What are your Financial needs?
Do you need a business loan?
Do you need a personal loan?
Do you want to buy a car?
Do you want to refinance?
Do you need a mortgage loan?
Do you need a huge capital to start off your business proposal or expansion?

Have you lost hope and you think there is no way out, and your financial
burdens still persists?
Please do not hesitate to contact us for possible business co-operation
Contact us via email: [email protected]

Best Regards
Mr Jerry Porter

A PATH TO FOREVER FINANCIAL FREEDOM FOR EVERYONE [email protected] or CALL/TEXT +1(215)874-8060

Hello everyone in this forum, I am Joyce Acklin from 937 Stratford Park Austin, IN, USA and want to use this medium to express gratitude to EMINENT JOSH the C.E.O of JOSH LOAN COMPANY for fulfilling his promise by granting me a loan, i was stuck in a financial situation and needed to refinance and pay my bills as well as start up a Business. I tried seeking for loans from various loan firms both private and corporate organisations but never with success, and most banks declined my credit request. But as God would have it, i was introduced by a friend named Dianne Faulkner to JOSH LOAN COMPANY whom also confirmed to me that she also obtained a loan from them. In an attempt to resolve my current situation, i got in contact with the company via email/text and undergone the due process of obtaining a loan from the company, to my greatest surprise within 48hrs just like my friend Dianne, i was also granted a loan of $125,000.00; So my advise to everyone who or know someone who desires a loan, "if you must contact any firm with reference to securing a loan online with low interest rate of 2% and better repayment plans/schedule, please contact JOSH LOAN COMPANY. Besides, she doesn’t know that am doing this but due to the joy in me, i'm so happy and wish to let people know more about this great company whom truly give out loans, it is my prayer that GOD should bless them more as they put smiles on peoples faces. You can contact them via email on [email protected] CALL/TEXT +1(215)874-8060 or visit their auxiliary webpage on http://www.joshloancompany.bravesites.com/

Attention Everybody, I Mrs Florence Zuckerberg by names, from United States. I want use this medium to say a special thanks to this awesome company who made it possible for me to improve my business. I was stuck in a financial crisis and i needed to refinance my business, i tried seeking loans from various loan firms both private and corporate but never with success and most banks declined my credit, until i met this company called FREDDY BLISS INTERNATIONAL LOAN COMPANY LTD who helped me out with a loan sum of ($25,000 000.00) without any stress i truly want to thank Mr FREDDY BLISS who made it possible and helped me through and ensure i got my loan. So i want use this means to advise everyone out there searching for a loan that if you must contact any firm with reference securing a loan with low interest rate of 3% and better repayment schedule to contact Mr FREDDY BLISS at ([email protected]) for a fast, safe and easy loan today...

Good day Dear Loan Seekers,

Are you in need of an urgent loan to pay up your debts? open your own business? Buy a car or home? I am Mr. Peter Williams, A legitimate and a reliable private lender. I offer all kinds of Loan packages. I give loans under clear and understandable conditions at an interest rate of 3%. From $ 5000 to $ 6000000 USD, Euro and pounds only. I provide business loans, personal loans, student loans, auto loans, New year loans, bank loans and loans to pay bills. If you are a serious person and you are interested in my services please hurry now and get your loan via this
email: ([email protected])

An honest person should apply for a loan from my company now
Awaiting for your urgent response now.

GOD BLESS YOU.

Have you be denied of a loan from your bank or any Financial Firm? *Do you need a loan to pay off your bills or buy a home?* Do you need a loan to start up a business?. Make your dreams come through by contacting James Financial Loan Firm, we give out loan with an interest rate of 3% per annual, With the Minimum amount you can borrow is 2,000.00 to Maximum of 20.Million for more information regarding this loan do get back to us so that we can proceed further.Email:[email protected]
BURROWERS INFORMATION.

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