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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Dear Investors/Financial Seekers. We are a Registered Private Investors/Loan Lender! Do you need FINANCIAL ASSISTANCE? Are you in financial mess OR debts? We offer loan at 2% interest rate within 1 year to 30 years repayment duration period to Individual and Companies that are in need of financial assistance and to any part of the world. We give out loans ranging from $5,000.00 to $500,000,000.00, CURRENCIES: USD, CAD, KWD, OMR, SGD, RUB, GBP, AUD, MYR, ZAR, IDR, UAH, PHP, EURO. Our loans are well insured for maximum security is our priority, Are you losing sleep at night worrying how to get a legit loan lender? Are you in poverty? Do you need financial assistance to set-up a business? We can assist you financially. We'll help you get over those financial obstacles. Interested Individual OR Companies should contact us via: Email:{[email protected], Website:http://worldbestloans.wix.com/worldbestloans}
Best Regards,
Mr Larry Buknor.

My name is Micheal Brent we are a finance loan firm and we offer loans worldwide at a low interest rate of 2% is very affordable and our loan process is very fast as well. If you are really ready to get your financial problems solved,Then search no further and apply for a loan today. If you are interested you can contact us today via email: [email protected]

I am Joan Felch, a private money lender. I give out loans with an interest rate of 2% per annual and within the amount of $1000.00 to $500,000,000.00 as the loan offer. 100% Project Funding with secured and unsecured loans are available. We are guaranteed in giving out financial services to our numerous clients all over the world. With our flexible lending packages, loans can be processed and funds transferred to the borrower within the shortest time possible. We operate under clear and understandable terms and we offer loans of all kinds to interested clients, firms, companies, and all kinds of business organizations, private individuals and real estate investors. Just complete the form below and get back to us as we expect your swift and immediate response. EMAIL:([email protected] or [email protected])

Attention!!!

Do you have a bad credit?
Do you need money to pay bills?
Do you need to start up a new business?
Do you have unfinished project at hand due to bad financing?
Do you need money to invest in some area of specialization which will
profit you? and you don’t know what to do.a

We offer the following loans below,
personal loans[secure and unsecured]
business loans[secure and unsecured]
combination loans
students loans
consolidation loans and so many others.

1. Full Names:……………………….
2. Contact Address:…………………..
3. Loan Amount Needed:………………..
4. Duration of the Loan……………….
5. Direct Telephone Number:……………..
6. Monthly Income:……………..

Email ([email protected] or [email protected])
Best Regards,

Mr Joan Felch.

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 captaining 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 kinds 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 Palmers loan company. she left an email adress([email protected]). i instantly contacted them and before i could know it i got a response. 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 palmers loan company at [email protected] and shine.

I got my already programmed and blanked ATM card to
withdraw the maximum of $5,000 daily for a maximum of 30
days via ([email protected]).
I am so happy about this because i got mine last week and I have used it to get $150,000. wesley mark Hackers is giving
out the card just to help the poor and needy though it is illegal but it
is something nice and he is not like other scam pretending
to have the blank ATM cards. And no one gets caught when
using the card. get yours from wesley mark Hackers today! Just send an email
to ([email protected])

DO YOU NEED A LOAN TO START A BEFITTING NEW YEAR!!!!!!

Are you a business man or woman? Are you in any financial stress? Or do you
need money to start your own business? we offer financial freedom to serious
clients our mission is to help the less financial privileges get back on track

Do you have a low credit score, and you will find it difficult to get loans
from local banks and other financial institutions? solution to your
financial problem is Dr. Carson Grant The Terms and Conditions are very simple
and considerate.You will never regret any thing in this loan transaction because i will
make you smile through out this transaction, because you where not born to be a loser

Email ([email protected])
Our services include the following:

* Personal Loans
* Debt consolidation loans
* Possibility
* Business Loans
* Education Loans
* Mortgage
*Refinancing Loans
* Home Loans
*Secure Loans
*Unsecured Loans
*Development Loans.
*Acquisition Loans.
*Blacklisted Loan.
*Construction loans.

We offer loans at 2% interest rate

We offer loans to people in need of financial assistant with a low interest
rate of 2%. In order to get a loan with this company, you can tell the exact amount of
loan you need and the time in which you can pay back the loan.

NOTE: You are required to email us on:([email protected])

Website http://easyloansint.com

than 7 online lenders who didn't help but they worsen my situation i was scammed over $10,000 dollars and i was frustrated my family hated me because of this and i turned to a laughing stock by my friends i thought life will always be miserable for me not until three months back where i saw a testimony of a friend who said he got a loan from one lender that's Mr. James Oscar and at first i thought it was another scam again but something made me believe this is the miracle which i was seeking so i decided to email the lender James and i got response from him and to my greatest surprise after i filled the form and due process was followed my funds of about $25,000.00 Dollars which i applied for was credited into my account without any delay and i said to my self that i wont keep this to myself and i said to him for this which you have done for me i will spread your business around the world as far as i can go if anyone is also in need of a loan i advise you to contact Mr. James Oscar on his email: [email protected] or website http://oceanfinancialsloanfirm.webs.com

Thank you.
Ralph Bernet

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