Franchise Grade Compares 5 Year Performance of Healthy and Unhealthy Franchise Systems



Franchise Grade Compares 5 Year Performance of Healthy and Unhealthy Franchise Systems

The 3 Part Report Reveals That The Top 10% had positive net outlet growth of 52,171 outlets while the Bottom 10% have a negative net outlet growth of -37,119 outlets.

Franchise Grade Compares 5 Year Performance of Healthy and Unhealthy Franchise SystemsFranchise Grade continues to publish important statistics pertaining to the franchise industry. The latest publication compares the performance of two disparate groups, the Top 10% of Healthy Franchise Systems and the Bottom 10% of Unhealthy Franchise Systems. Each report in the series compares key performance areas over a 5 year period:

  • Part One presents a comparison of overall system size, outlet activity, and net outlet growth between the two groups
  • Part Two reports on Franchisee Turnover Rates for the Top and Bottom 10% of franchise systems
  • Part Three reports on the total franchise fees collected and the estimated initial investment ranges for the Top and Bottom 10% of franchise systems.

The analysis utilized the Franchise Grade® Franchise Performance Index™ to identify the two groups. The initial database consisted of 2,260 franchise systems with 5-years of activity, which also identified 226 franchise systems in the Top 10% and Bottom 10%, totaling 452 Franchise systems in the comparison. All data was based upon the 5-year period 2010 to 2015.

Ed Teixeira, COO of FranchiseGrade.com commented on the report: “ This analysis demonstrates the important contribution of Healthy Franchise Systems towards achieving sustained quality growth in the franchise industry, while Unhealthy Franchise Systems often drain franchisee investment dollars from the healthy franchises. A primary objective of our research is to recognize the Healthy Franchise Systems and elevate the performance of Unhealthy Franchise Systems.”

For more information, please visit FranchiseGrade.com

FranchiseGrade.com is the #1 market research company in franchising. We compare and grade franchise systems for their investment value. Our motivation is simple: we want to raise the bar in franchise industry market research and build a stronger franchise community in the process. By surveying as many as 18,000 franchisees and reviewing more than 2,400 Franchise Disclosure Documents every year we are able to maintain an extensive database of current franchising information for our industry leading research and analysis.