With the help of Robert Bond, publisher of Bond's Franchising Guides and chief executive of the World Franchising Network, a franchise database, Forbes weeded through the 100 most recognized franchise operators and found 20 that "delivered the [image-nocss] best bang for a franchisee's investment buck."
The average initial investment for a 7-Eleven store is $389,378, according to the magazine. The company offers 231 hours of training. The average royalty rate: 49% of gross profit. Domino's Pizza, Ann Arbor, Mich. (pizza). 7-Eleven, Dallas (convenience stores). Kumon North America, Teaneck, N.J. (tutoring). McDonald's USA, Oak Brook, Ill. (fast food). Papa Murphy's International, Vancouver, Wash. (take-and-bake pizza). Merry Maids, Memphis, Tenn. (cleaning services). Great Clips, Minneapolis (haircuts). Sport Clips, Georgetown, Texas (haircuts). Edible Arrangements International, Wallingford, Conn. (fresh fruit bouquets). Jimmy John's, Champaign, Ill. (sandwiches). Liberty Tax Services, Virginia Beach, Va. (tax preparation). Papa John's, Louisville, Ky. (pizza). Jiffy Lube International, Houston (oil changes). Panera, Richmond Heights, Mo. (fast-casual restaurants). Maaco, Charlotte, N.C. (automotive paint, repairs). AAMCO Transmissions, Horsham, Pa. (transmissions). Burger King, Miami (fast food). Dunkin' Donuts, Canton, Mass. (coffee, doughnuts, sandwiches). Sylvan Learning, Baltimore, Md. (tutoring). Meineke Car Care Centers, Charlotte, N.C. (exhaust, brakes, automotive repair).
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The methodology took into account four variables: estimated minimum initial investment (including initial fees plus equipment costs); total locations (at least 50); survival rates (measured as the percentage of closings during the previous three-year period to the total number of existing locations--the lower the percentage, the better); and the number of training hours offered to new franchisees measured against the startup cost. Overall footprint and survival rates carried the most weight.
7-Eleven is franchising its stores in the United States, and it is expanding through organic growth, acquisitions and its Business Conversion Program.
Dallas-based -Eleven operates, franchises or licenses more than 8,300 7-Eleven stores in North America. Globally, 7-Eleven operates, franchises or licenses close to 39,500 stores in 16 countries. During 2009, 7-Eleven stores worldwide generated total sales of $58.9 billion.
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