Franchisors also offered their franchisees enhanced credit support and easier terms. Some chains reduced or [image-nocss] waived franchise, marketing and store-opening fees, offered small loans and payment deferrals and temporarily reduced royalty rates as incentives to encourage successful franchisees to purchase additional locations during the credit crunch.
"The shift toward a heavily franchised business model presents new opportunities for suppliers," said Darren Tristano, executive vice president at Technomic, Chicago. "Strong, successful franchisees will be expanding their market presence and growing sales by acquiring formerly corporate-owned units. Suppliers who focus on building and strengthening their relationships with these franchisors can participate in that growth."
The Top 400 restaurant franchisees generated $31.4 billion in sales in 2008, which accounted for 8.6% of the total restaurant industry's $365.6 billion.
Pizza Hut had the most franchised units within the Top 400 companies with 3,627, followed by Burger King and Taco Bell, with 2,758 and 2,391 units respectively. Among full-service restaurants franchisors Applebee's had the most franchised units at 1,423.
NPC International was the largest franchise company in 2008. A major franchisee of Pizza Hut, NPC had sales of $690 million, up 1.5% over 2007.
The report covers major franchisors and leading franchisee organizations. It helps operators identify the leading restaurant franchise companies; discover the brands behind the Top 400 franchise companies; understand where franchising opportunities exist within restaurant brands; benchmark sales, units and growth against the Top 200; and benchmark units and growth against the Future 200 companies.
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