FBR Top Food Franchises 2013

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    Franchise Business

    FALL 201

    Ratings & Reviews ofTodays Top Franchises

    THE LIST:

    Best of the Best

    Food Franchises

    PAGE 8

    CHURROMANIAs

    Bernardo Abend Finds

    Success with a Sweet Niche

    PAGE 17

    REVIEW

    TOP FOOD

    FRANCHISESFranchisee Satisfaction Study

    SPECIAL REPORT:

    From Friends to Franchisees:

    Black Bear Diners

    Tim Augustine & Burt Benepal

    PAGE 15

    Long-time Detroit resident Nicole Wilski o

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    This advertisiment is not an oering of a franchise. An oering can be made only by prospectus We only sell franchises in states where our oering is registered.

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    SPECIAL REPORT: Top Food Franchises

    When people think ranchise, ast ood is oen what comes to mindand understandably soas the quick-service (QSR) space is one o the biggest and most competitive in all o ranchising.But the ood sector is loaded with ranchise opportunities ranging rom QSR and ull-servicerestaurants to coee shops and rozen treats.

    So, how do you know which concept and brand is right or you?

    Tats where we come in. Every year, Franchise Business Review surveys thousands o ranchiseesrom hundreds o leading ranchise brands to gauge ranchisee satisaction and perormance. Notall brands willingly open their doors to an independent research rm like Franchise BusinessReview, but those who do can oer investors a wealth o inormation on the systems leader-ship, culture, training and support, nancial outlook, and ranchisee communityall rom theperspective o ranchisees.

    Having a detailed understanding o ranchisee satisaction and unit-level nancial perormanceis critically important in the ood industrywhere competition is erce, prot margins areslim, and consumer preerences are ever-changing. You need to know exactly what youregetting into beore you get into it.

    Tis report highlights the top ood ranchises based solely on the satisaction and perormanceo current ranchise owners across the industry, and we dig into what potential ranchiseesshould consider as they research opportunities.

    No, the ood business isnt easy. But or the right person who nds the right ranchise brand, theood business can oer an exciting, rewarding, and protable opportunity.

    Food For Thought

    Happy ranchising!

    Molly Rowe, Editorial Director

    This report highlightsthe top food franchisesbased solely on thesatisfaction andperformance of currentfranchise owners acrossthe industry . . .

    Eric Stites, CEO

    Michelle Rowan, PresidentMolly Rowe, Editorial Director

    Michael Kupfer, Online Marketing Manager

    Nicole Kenney, Client Services Manager

    Jamie Lavigne, Client Consultant

    Linda Lorrey, Client Consultant

    Jay Metzenroth, Research Assistant

    The Secret Agency, Layout & Production

    Franchise Business Review is the leading market research company in

    the ranchise industry, assisting prospective ranchise buyers through the

    examination process o todays leading ranchise systems. Beore you invest

    in any ranchise opportunity, get the acts rom Franchise Business Review.

    Our independent ranchisee satisaction reports measure the health o

    any ranchise system, based exclusively on the eedback o todays

    ranchise owners ... the real ranchise experts!

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    WHO WE ARE

    Franchise Business Review is a national mar-

    ket research rm that ocuses on ranchisee

    satisaction and perormance. Our products

    include ranchisee satisaction reports, custom

    research, industry sector studies, and other

    projects and services ocused on driving ran-chise perormance.

    WHAT WE DO

    o compile the data or this report, we surveyed

    4,328 ranchisees, representing nearly 100

    leading ood ranchise brands with a total

    o 21,200 ood outlets across the United

    States and Canada. We contact all active

    ranchisees within a ranchise system and

    ask them to complete our satisaction survey.

    Franchisees answer 33 benchmark questions

    ranking their ranchise system in the areas o

    nancial opportunity, training and support,

    leadership, operations and product develop-

    ment, core values (e.g., honesty and integrity

    o ranchisor), general satisaction, and the

    ranchisee community. An additional 16questions ask ranchisees about their market

    area, demographics, business liestyle, overall

    enjoyment running their ranchise, and role

    in the ranchisee community. From this data,

    we identiy our list o top ood ranchises

    with above average satisaction.

    It is important to note that all Franchise

    Business Review research studies are open

    to any North American-based ranchise

    company with at least 10 operating ranchisees

    at absolutely no cost. Te ranchise companies

    listed in our reports are based solely on ran

    chisee satisaction ratings.

    WHY SATISFACTION MATTERS

    By all accounts, this is a great time to buy a

    ood ranchise. Franchise brands are outperorming non-ranchised businesses, ranchise

    units are experiencing healthy returns

    and many people whove been considering

    ranchise opportunities or several years are

    nally committing to their dream business

    But, no matter how rosy things look or

    ranchising as a whole, nothing guarantees

    a ranchisee or a ranchise concept will be

    successul. Prospective ranchisees mus

    thoroughly research every opportunity they

    Photo courtesy of Bahama Bucks

    Top Franchisors Focus on Smart Growth,Long-Term Health, and Franchisee ProftabilityThe Bright Future o Food Franchising

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    SPECIAL REPORT: Top Food Franchises

    are considering to determine i the concept is

    viable and the right t or them.

    One o the best ways to know i a ranchise

    opportunity is really as good as it appears is to

    look at its third-party ranchisee satisaction

    data. Franchise systems that dont providethird-party data may have deeper issues, and

    those that do provide data oer a wealth

    o inormation on the systems leadership,

    culture, training and support, nancial outlook,

    and ranchisee community.

    MODELS & CONCEPTS

    Franchise concepts within the ood sector

    typically all into one o several major catego-

    ries: QSR, ast casual [a variation o QSR that

    includes higher end, counter-service establish-

    ments], retail stores, mobile and kiosk outlets,delivery only, and ull-service restaurants.

    Tese models may be urther broken down

    by ood type, such as burgers, wings, pizza,

    Mexican, ice cream/yogurt, coee, and sushi,

    to name just a ew. Because many o the models

    t into a number o categories (a coee shop

    that serves breakast sandwiches, or example),

    the concept lines are oen blurred.

    Some ranchisors oer multiple business

    models. East Coast Wings & Grill recently

    expanded its oerings to include QSR oppor-

    tunities or ranchisees who already own a

    agship restaurant. Existing East Coast ran-

    chisees can open a QSR location or $325,000

    (compared to around $650,000 or ull-service

    restaurant). CEO Sam Ballas told us theybegan researching and prototyping this model

    a ew years ago in an eort to oer less expen-

    sive multi-unit opportunities or ranchisees

    and to oset a projected real estate shortage.

    Weve been closely studying real estate in

    the past years and see a real crunch coming

    in 2014 and 2015, Ballas said. Were just not

    going to be able to nd the 4,000 oot space

    that the ood sector is going to need.

    As in past years, ranchise concepts oer-

    ing quick, inexpensive oods dominate our

    list. Pizza, subs, wings, rozen yogurt, andburgers remain the hottest oods in ranchis-

    ing. O course, hot and trendy segments

    dont always translate into satised, protable

    ranchise owners. For example, there has

    been an explosion o brands in the rozen

    yogurt segment, and yet only one brand

    (Yogurtland) made our list this year.

    While Five Guys may have been the

    prominent player in the better burger

    market several years ago, smaller brands like

    MOOYAH have also made a name or them-

    selves in recent yearsespecially in terms o

    ranchisee satisaction.

    Healthier oods continue to be popular

    although we see ewer wrap, salad, and Asian

    grill concepts on our list this year. Mos

    brandseven those traditionally known as

    burger, shake, and ry conceptshave adapt-

    ed their menus to include healthy options.

    Were really known or wings and theyre

    not that healthy, so weve added other things

    to sway the veto vote, said Steven Falciani

    Senior Vice President o ranchise operationsor Quaker Steak and Lube. We want to

    make it so i someone in the amily doesn

    like wings but everyone else does, theres

    something or everyone.

    MOOYAH President and CEO Bill Spae

    echoes the silence the no vote sentiment

    He says that while MOOYAHs menu ha

    remained simple and ocused on burgers

    they oer diversity within that menu or

    dierent diet preerences (a bun-ree, lettuce-

    wrapped burger or the gluten-conscience

    or example).We oer ve combos or under 600 calories

    but we didnt add any products to our menu

    to do that. Its just a combination o dierent

    products we already oered, Spae said.

    While ads may signicantly inuence

    whats hot in ood ranchising, not every

    company on our list is interested in jumping

    on a bandwagon. In act, Black Bear Diner

    Co-President Bob Manley takes pride in his

    brand or not changing.

    We are not trying to compete or whats

    new, whats catching on right now, Manleysaid. We think there is still a legitimate

    spot in the market or what is old, what is

    traditional. Weve kind o ound a niche or

    ourselves within that group o people to

    remember what it was like when I was a kid

    the environment, the comort ood.

    HWY 55 Burgers similarly holds onto

    traditionmarketing itsel as a 50s-style

    American classic rom crispy onion rings to

    old-time rock n roll.

    QSR/Fast Casual

    21

    Full Service

    12

    6

    Retail/Snack

    1Other

    Top 40 Food Brands By Category

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    INVESTMENT

    Food is typically one o the more expensive

    sectors or ranchise ownership because o

    build-out costs, equipment, and supplies

    required to run a restaurant, as well as prime

    real estate/lease rates. Our list o top ood

    ranchises includes a wide range o invest-

    ment options.

    Mobile ood concepts, like Kona Ice,Repiccis Italian Ice, and Happy and Healthy

    Products, oer ranchisees the opportunity

    to run a ood-related business or less than

    $100,000 (approximately $99,000 or Kona,

    $74,000 or Repiccis, $61,000 or Happy

    and Healthy). A quick-serve brand based in

    a retail strip center, like Wingstop, can cost

    less than $500,000 initially, depending on

    the real estate and overhead requirements.

    A ull-service stand-alone restaurant, like

    UNO Chicago Grill, which requires a large

    site (and more employees and overhead orday-to-day operation), typically costs more

    than a million dollars to get started.

    Te investment range o the top ood

    ranchises on our list is $34,500 to $4 million,

    with a median initial investment o $445,000.

    (Note that this is the total initial investment,

    but with nancing and lease options, the typi-

    cal upront cash requirements tend to be 20

    percent to 40 percent o that total investment.)

    In the past ew years, many ranchisors have

    taken steps to reduce the cost o investing in

    a ood ranchise. MOOYAH, or example, has

    reduced its average investment rom around

    $450,000 to under $400,000 by reducing the

    square ootage and mechanical requirements.

    Tey are also looking to open restaurants in

    non-traditional spacesairports, colleges,

    and stadiumsto reduce real estate costs.Te time investment or a ood service

    ranchisee can vary as much as the monetary

    investment, depending on the size and capacity

    o the ranchise concept, the number o loca-

    tions, and how long the ranchisee has been

    in business. Franchisors o location-based

    concepts (those that arent kiosk or truck-

    based) tell us the early months and sometimes

    years require long hours and a more than

    ull-time commitment to running the business.

    An owner-operator can be expected to

    work 10- to 14-hour days, and theyre gruel-ing the rst year, said Ballas o East Coast

    Wings & Grill. Eventually, you have the

    opportunity to roll those hours back as you

    learn the business, pay your dues, and hire the

    right management team.

    Te importance o a new ranchisee being

    well-capitalized cannot be overstated. Prospec-

    tive ranchisees should careully review a brands

    FDD and ask the ranchisor and current opera-

    tors what eorts have been made to ensure

    ranchisees are well-capitalized or start-up

    and economic ups and downs. Te Item 7 in

    the FDD outlines the expenditures needed to

    establish a business, but all Item 7s are not

    equal. Some companies will outline the neces

    sary working capital, but otherswho migh

    want to keep the stated investment level a

    low as possibledont. Any investor should

    understand and plan or the act that it mightake signicantly more capital than what i

    listed in the Item 7 to get a new ranchise busi

    ness up and running. Having several sources o

    reserve capital and a solid contingency plan in

    the event that your new business ramps-up

    slower than expected will save you many sleep

    less nights.

    We also recommend that where possible

    all potential ranchisees thoroughly review

    and understand a companys Item 19, i

    included, so they have a better idea o wha

    to expect in the way o protability. Not alranchise companies provide an Item 19 as

    part o their FDD because its not required

    And like the Item 7, every Item 19 is dierent

    in the way it outlines unit-level nancials. A

    good Item 19 can provide invaluable inorma-

    tion related to potential protability o the

    business, assuming the ranchise company

    publishes accurate revenue and cost gures.

    In our interviews or this report, ranchi-

    sors told us they have become much more

    *These are broad estimates of initial capitalinvestments, and each franchise brand will have

    specic liquid capital and net worth requirements.

    $30,000 $250,000+Kiosk/Mobile/Non-Traditional Locations

    $100,000 $400,000+Conversions of Existing Locations

    $175,000 $500,000+Retail/In-Line Strip Center Locations

    $750,000 $2,000,000+Stand-alone/New Construction Locations

    Photo courtesy of Black Bear Diner.

    Typical Investment Ranges

    for Food Franchise Locations

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    SPECIAL REPORT: Top Food Franchises

    rank in their discussions with ranchisees

    about what exactly theyll need or capital to

    be successul.

    I think sometimes just the nature o the

    regulations surrounding ranchising make

    people hesitant to have some o those con-

    versations with prospective ranchisees, said

    Culvers President and COO Phil Keiser. But

    we just eel that you have to say, Hey, youre

    thin. You dont have enough money. Youre

    going to have to nd the perect circumstance

    to build a restaurant so i you can nd the

    right set o circumstances, were with you.

    I, as a prospective ranchisee, a ranchisor

    doesnt scrutinize your nancial strengths and

    weaknesses, you should be skeptical.We never take someone in who is under-

    capitalized, said Ballas o East Coast Wings &

    Grill. Franchisees can have an o weekend,

    but the bills still keep coming. You have to

    give them the big picturemaybe they have

    to bring in partnerships to strengthen it.

    We make it as tough as we can or ranchisees,

    and the ones who get through do very, very

    well. We dont have underperorming stores

    in our system.

    INCOME AND PROFITABILITYAverage annual income (dened as any

    income, salary, or prot the owner takes out

    o the business) or all ood ranchisees is

    $82,000the same as 2012. Not surprisingly,

    ranchisees o our top 40 ood ranchises

    report higher annual incomes o $98,50020

    percent higher compared to other ood

    brands, and 38 percent higher compared to

    non-ood ranchisees.

    While aggregate ranchisee incomes can be

    a valuable reerence point, it is important tonote that average numbersespecially when

    you are looking at nancial inormationcan

    be very misleading. Average data includes all

    ranchisees together, both single and multi-

    unit owners, as well as new ranchisees, and

    those that have been operating or many

    years. In most cases, median data points can

    be much more helpul than averages. For

    example: While the average ood ranchisee

    earned $82,000 last year, 50 percent o the

    ood operators we surveyed earned less than

    $50,000, while only 25 percent earned over$100,000.

    When doing your research and busi-

    ness planning, it is important to distinguish

    between business proft and owner income

    Prospective ranchisees oen conuse a busi

    nesss potential prots with their potentia

    annual income/salary, which is a big mistake

    As a business owner, beore you can pay

    yoursel, you oen have to pay business

    taxes, debt repayments on loans, and reinvest

    in your business (that new piece o equipmenyou need, or the new signage youre required

    to buy, or example). While your business

    may grow to be quite protable, your actua

    income could be substantially lower. alk with

    as many other ranchisees as possible, and

    conrm that your business prot and income

    expectations and projections are realistic.

    Many o the ranchisors we interviewed or

    this report said they are taking a close look a

    how to reduce costs and improve protability

    and income or ranchisees.

    Several years ago, we began workingpretty diligently on how we can reduce the

    costs, get a more efcient business design and

    building design, and how we can t on more

    aordable real estate, said Keiser o Culvers.

    Finally, on the topic o income and

    protability, while many ood ranchises

    report relatively high unit-level sales and/

    or protability, it is important to look at the

    whole picture when considering a ranchise

    investment. For example, a ood ranchise

    may oer slightly higher protability com

    pared to other businesses, but i the initiainvestment is three times higher, your overal

    return on investment is potentially going

    to be signicantly lower. Work through your

    long-term nancial projections with a good

    accountant, and compare your potentia

    ranchise investment to other businesses, as

    well as other investment opportunities (i.e. rea

    estate, stocks, etc.) to see how they compare.

    Multi-unit ownership is a common requirement by ood ranchisors because it is easier rom a

    development standpoint to work with an owner who is going to operate several locations. Running

    multiple locations obviously involves dierent skills and more money than a single unit, so this is an

    important consideration or prospective ranchisees. Even i youre not yet ready to own multiple units

    but think you may one day, youll want to consider this in your initial research.

    You need to evaluate the programs a ranchisor has in place to see i there is a specifc program thatfts your needs, said Jennier Durham, Vice President o Franchise Development or Checkers and

    Rallys. Good ranchisors have an understanding o the variety o ranchisees that come into their

    system and they adopt their support structures to ft the needs o those candidates. Id look or that

    i I were on the buying side o this decision.

    O course, there are still brands that preer single-unit deals because they are looking or a dierent

    type o ranchise ownerone who wants to be very involved in the day-to-day running o the business.

    We actually get ranchisees coming to us because we will do a single unit, said Culvers Keiser.

    They dont need the same kind o balance sheet that they would to do a 10-restaurant agreement.

    Its obviously critically important that a prospective ranchisee understand the terms o their ranchise

    agreementwhether it requires multi-unit ownership and the associated timeline or ramp-up

    (as well as the penalties i timelines are not met)beore jumping all in with multiple stores.

    Multi-unit vs. Single-unit Ownership

    Continued on page 10

    Franchisors told us they have become much morefrank in their discussions with franchisees aboutwhat exactly theyll need for capital to be successful.

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    SPECIAL REPORT: Top Food Franchises

    *View this companys full

    satisfaction report at:

    www.FranchiseBusinessReview.com

    THE LISTBest of the Best:Todays Top40 Food Franchises

    Everyone helps eachotherfrom ideas tobuilding sales, its a familyhere that I am proud tobe a part of.

    HWY 55 franchisee

    The franchisee communityis getting better every yearwith the addition of new

    passionate franchisees. Zoup! franchisee

    StartupInvestment

    CashRequirement

    DomesticFranchises

    Culvers see ad on p. 14Full-service restaurant specializing in

    handcrafted American food & ice cream

    $1,439,000

    $3,087,000$350,000 485

    Kona Ice

    Mobile shaved ice

    $99,800

    $120,000

    $20,000

    $25,000408

    * Firehouse Subs see ad on Back CoverFast casual restaurant

    specializing in subs & sandwiches

    $178,376

    $625,801

    $80,000

    $100,000612

    LaRosas PizzeriaFull-service restaurant specializing

    in pizza & other Italian favorites

    $500,000

    $850,000

    $150,000

    $255,00049

    * Checkers & RallysQuick-service restaurant & drive-thru

    specializing in burgers & fries

    $111,000

    $825,000$250,000 456

    * HWY 55 Burgers50s-style family restaurant

    $191,280

    $342,130$125,000 109

    Auntie AnnesQuick-service pretzel bakery

    $194,875 $367,600

    $40,000 $80,000

    1,015

    Penn StationQuick-service restaurant

    specializing in subs & sandwiches

    $320,798

    $460,813$175,000 254

    HardeesQuick-service restaurant

    specializing in burgers & fries

    $1,147,900

    $1,542,000$300,000 1,705

    Simple Simons Pizza see ad on p. 16Full-service restaurant specializing in pizza

    $89,500

    $593,500$25,000 230

    Bahama BucksSmoothies & shaved ice

    $184,000

    $558,000$90,000 + 30

    * East Coast Wings & Grill Inside Back CoverFull-service restaurant specializing in chicken wings

    $245,050

    $873,374

    $250,000

    $575,00025

    Happy and Healthy ProductsHome-based store specializing in frozen novelties

    $34,508

    $89,045

    $34,508

    $89,04556

    Brueggers BagelsBakery caf specializing in bagels

    $389,600

    $591,600$150,000 102

    Charleys Philly SteaksQuick-service restaurant

    specializing in subs & sandwiches

    $101,572

    $465,282

    $75,000

    $100,000412

    Biggby Coee

    Caf concept specializing in gourmet coee

    $161,100

    $340,100$70,000 151

    Zoup!Fast casual soup

    $365,900

    $558,900$120,000 49

    Captain DsQuick-service restaurant specializing in seafood

    $206,000

    $1,281,400$300,000 240

    Village InnFull-service restaurant

    specializing in American comfort food

    $695,000

    $2,178,000

    $695,000

    $2,178,00089

    Chopped LeafQuick-service and take out specializing in salads

    $215,000

    $370,000

    $70,000

    $90,00013

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    SPECIAL REPORT: Top Food Franchises

    StartupInvestment

    CashRequirement

    DomesticFranchises

    Black Bear Diner see profle on p. 16Full-service restaurant

    specializing in homestyle diner food

    $544,300

    $1,353,700

    $750,000

    $1,000,00045

    The HoneyBaked Ham Co. see ad on p. 16

    Retail concept specializing in meat products

    $278,300

    $409,900$150,000 188

    McAlisters DeliFast casual deli specializing in sandwiches

    $650,000$30,000

    $35,000266

    BarberitosSouthwestern grill quick-service restaurant

    $100,000

    $450,000

    $30,000

    $50,00031

    WingStopQuick-service restaurant

    specializing in chicken wings

    $252,621

    $554,898$200,000 599

    Beef OBradysFull-service sports bar themed restaurant

    $256,500

    $866,500$125,000 220

    * Famous DavesFull-service restaurant specializing in barbeque

    $636,750 $4,239,750

    $636,750 $4,239,750

    133

    Uno Chicago GrillFull-service restaurant

    specializing in deep dish pizzas

    $1,500,000

    $2,500,000

    $500,000

    $1,000,00049

    Billy Sims BarbecueQuick service restaurant specializing in barbeque

    $169,200

    $433,100$250,000 36

    Foxs Pizza DenFast casual restaurant specializing in pizza

    $100,500

    $157,550

    $100,500

    $157,550283

    Quaker Steak & LubeFull-service motorsports themed restaurant

    $1,150,000

    $4,300,000

    $1,150,000

    $4,300,00041

    YogurtlandQuick-service frozen yogurt

    $323,159

    $725,451$400,000 251

    Fuzzys Taco ShopQuick-service restaurant specializing in tacos

    $330,260

    $704,210

    $330,260

    $704,21061

    Repiccis Italian IceQuick-service shaved italian ice

    $49,500

    $99,900$50,000 48

    Nothing Bundt CakesRetail bakery specializing in customized cakes

    $339,800

    $440,700$150,000 67

    * CHURROMANIA see ad on p. 2; profle on p. 17

    Quick-service restaurant specializing in churros

    $145,000

    $335,000

    $145,000

    $335,00015

    KilwinsRetail store specializing in chocolate

    $307,897

    $496,293

    $125,000

    $130,00083

    * MOOYAHQuick-service restaurant

    specializing in burgers, fries & shakes

    $334,950

    $529,700$250,000 50

    Hurricane Grill & WingsFull-service restaurant specializing in chicken wings

    $297,000

    $847,000$250,000 50

    Cheeburger CheeburgerFast casual restaurant speciailizing in burgers

    $215,250

    $577,500

    $150,000

    $200,00069

    I am very pleased withthe product the brandproduces. The franchise

    system gives me a goodedge to compete in themarket and do well.

    MOOYAH franchisee

    Question from 2013 survey:

    What advice would you give toyour franchisor?

    What really helped me getting started wasspending a whole day with a local ranchiseenear me nothing better than on the jobtraining.

    Dont always rely on the same franchiseesfor advice and guidance There aremany others out here that have dierentexperiences to share.

    Listen to the franchise body; they arein the trenches.

    Remember the little guy when makingdecisions that require increased costs

    We really need to have marketing materialslong before a promotion starts so we canget material ordered beore the promotionhits instead o hal way through it.

    Do more to help franchisees maintainlarger accounts by helping them fnd waysto logistically service them. It would helpnot only the ranchisees be more proftable,but would also help build the brand, which inturn helps the company grow.

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    PROS & CONS OF THE FOOD BUSINESS

    Pros

    Ask a ranchisor or a ranchisee to talk

    about the pros o the ood sector and youll

    undoubtedly hear exciting, people-lled,

    and ood-loving. Its an industry that oers

    ranchisees and their customers immediate

    gratication. At the same time, its ever-chang-

    ing, never boring, and impossible to outsource.

    Youve always got a captive audience

    people always need to eat, said Firehouse

    Subs ranchisee Elliott Goldsmith.

    Although ood is at the heart o every

    ranchise concept within the ood sector,

    there are countless investment options, busi-

    ness models, and ood types or ranchise

    operators to choose rom. A prospective

    ranchisee can choose to run anything roma van-based delivery business to a ull-service

    restaurantwith dozens o other business

    types in between.

    A ood ranchise can be a substantial mon-

    eymaker, and multi-unit operators in particular

    may see a signicant return on investment

    once they are established. Te wide range o

    ranchise models available to someone look-

    ing to enter the ood services sector make the

    ood business a easible endeavor at almost

    any investment level.

    Perhaps more than in any other ranchise

    sector, operators o ood ranchises may

    reap signicant benets rom being part o a

    large ranchise system rather than operating

    alone. Te ood industry is highly competi-

    tive and trend-driven, and business owners

    in this space must constantly be marketing

    themselves and developing new products.

    Franchisees benet rom having a recognizedbrand and the support and resources o a

    corporate ofce to help with these tasks.

    One o the things I tell prospective

    ranchisees is that ood is a high-risk busi

    nessthere is no guarantee you are going

    to be successul. But i you come in with

    a ranchise, you are going to have a better

    opportunity, said MOOYAHs Spae. I you

    decide to open your own restaurant, which

    Ive done, that is a pretty risky proposal.

    Cons

    Te ood sector is not or the aint o hear

    in terms o what it takes to run and operate a

    successul business. Rising ood costs, soaring

    competition, high employee turnover, and

    long hours are just a handul o the drawbacks

    Years ago, I worked or Dave Tomas

    at Wendys and one o the things that he told

    me was that you had to be hal crazy to be inthe ood business because thats the only way

    Continued from page 7.

    Income Range

    $0 - $25,000

    $25,000 - $50,000

    $50,000 - $75,000

    $75,000 - $100,000

    $100,000 - $125,000

    $125,000 - $150,000

    $150,000 - $175,000

    $175,000 - $200,000

    $200,000 - $225,000

    $225,000 - $250,000

    $250,000+

    0% 5% 35%30%25%20%15%10%

    Percent Response

    FBRs Top 40 Food Franchises All Food Franchises

    *Income data listed above is based on independent surveys completed with 3,359 ood industry ranchisees in 2012. This sample included data rom 84 ranchise brands,

    representing 22,516 operating units. Proftability is defned as any annual pre-tax income the ranchisee received including salary and/or business profts.

    Average Income of FBRs Top 40 Food Franchises vs. All Food Franchises

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    SPECIAL REPORT: Top Food Franchises

    you would survive, said MOOYAHs Spae.

    Te competitive nature is probably the

    reason he elt that wayand thats probably

    more true today.

    o keep up with that competition, ranchise

    companies must constantly be researching

    and developing new products to keep up with

    the latest ood trends. At the same time, they

    must be careul not to act too quickly. Every

    menu addition or concept change requires

    an additional investment rom ranchisees

    to re-vamp equipment and train sta, so i a

    seemingly hot trend is actually a short-lived

    ad, ranchisees lose out. Good ranchisors

    watch trends careully and know when to act

    and when not to.

    Getting started in the ood sector typically

    requires a large investment, and early prot

    margins can be much lower than some otherservice industriesespecially or operators

    o high cost, single-unit operations. It can

    take a long time or a new operator to recoup

    start-up costs. Many ranchisees choose to

    operate multiple locations so they can gain

    operational efciencies and turn a higher

    prot (i.e., sharing employees across locations

    reduces training costs, buying products in

    larger quantities reduces per unit costs, etc.).

    Still, operating multiple units signicantly

    increases your overall investment and is only

    recommended or experienced, extremelywell-nanced candidates.

    Ongoing expenses also are much higher

    than in other sectors and can uctuate

    greatly based on whats going on in the world.

    Climate-related price increases have become

    more common in the past ew years, and rising

    uel prices have also had a big impact on com-

    modities. Prospective ranchisees should ask

    ranchisors what saeguards (supply contracts,

    cost-cutting eorts, increased menu prices)

    theyve put in place on an ongoing basis to

    help ranchisees deal with high supply costs.Tere is signicant pressure in the ood

    space in terms o pricing. Franchisors must

    constantly keep an eye on their prices, adjust-

    ing them to compete with other concepts.

    In recent years, a number o QSR concepts have

    introduced value-menu pricing as a means

    to out-price competition and keep customers

    coming in the door. Many ranchisees ended

    up losing money with the value menus because

    they were orced to oer more ood or less

    money (while at the same time paying more

    or basic ood supplies like corn and our).

    In many concepts, even when sales were up,

    unit-level protability suered considerably,

    so to oset this, some brands have created new

    value product lines that cost less to produce.

    MARKET ANALYSIS

    Te National Restaurant Associations 2013

    Restaurant Industry Forecast predicted that

    total restaurant industry sales would reach a

    record high o $660.5 billion in 2013 (a 3.8percent increase over 2012) and that the

    industry would add jobs at a 2.4 percent

    rateclose to a percentage point more than

    the projected 1.5 percent increase or total

    U.S. employment.

    All o the ranchisors we spoke with or

    this report said theyve seen improvements

    at both the unit level and in new ranchise

    sales over the past year. Brands that may

    have scaled back their ranchise develop-

    ment eorts in recent years have been more

    aggressive in 2013, and many o our topbrands experienced double-digit growth right

    through the recession.

    Te lending landscape has also loosened

    in the past year especially at the investment

    level required to open a ull-service restaurant

    or QSR. For the rst time in several years,

    none o the ranchisors we spoke with or

    this report mentioned access to capital as a

    challenge or prospective ranchisees. While

    most o the money needed to invest in a ood

    ranchise still comes rom traditional bank

    loans, some ood concepts like Checkers and

    Rallys have had success pairing ranchise

    operators with nancial investors.

    Tere are not a whole lot o high return

    opportunities or dollars these days, and the

    restaurant space is ull o eager and hard

    working individuals that dont have nancing

    so matching the nancial investment partner

    with the operating partner is something we

    are aggressively going aer, said Jennier

    Durham, Vice President o Development aCheckers and Rallys.

    In 2013, the Aordable Care Act sig-

    nicantly aected the ood service industry

    Franchisors spent thousands o dollars

    researching the new law and educating

    ranchisees on how to comply with health-

    care requirements.

    Firehouse Subs CEO Don Fox told us

    hes spent a signicant amount o time in the

    last two years ocused on Washington, D.C.

    working with the National Restaurant Asso-

    ciation to lobby on his ranchisees behal.In an ideal world, you hope everybody has

    equal access to our government, but thats no

    always the case. I were able to leverage our

    position in the industry to help make that hap

    pen, then thats what we want to do, Fox said.

    For this reason, i youre considering a

    ranchise in the ood sector (which can be

    heavily impacted by tax and regulatory changes)

    you may want to consider how involved the

    ranchisor is in government relations.

    Photo courtesy of Zoup!.

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    A Look at Food Franchisees

    consider their scheduleexible or very exible

    have owned their franchise(s)for 5 years or less

    have at leasta bachelors degree

    67%

    62%

    own 5 or more units;58% are single-unit owners11%

    58%

    operate in small or very small markets(compared to 29% of overall benchmark)

    43%

    are veterans10%

    work 40 or morehours per week

    work evenings at leasta couple times per week

    almost always work weekends

    68%

    59%

    47%

    62%

    are between theages of 35 and 54

    have an incomeover $100K

    27%(compared to 20% of overall benchmark)

    (compared to 35% of overall benchmark)

    WHAT IT TAKES TO BE SUCCESSFUL

    Te ood industry can be a very tough busi-

    ness in which to make money, and ranchise

    operators must have the right skills and back-

    ground to be successul. Franchisees must be

    experienced business people, with knowledge

    o sales, marketing, and management. And it

    almost goes without saying that they must

    love ood and be laser-ocused on the total

    guest experience.

    Ballas o East Coast Wings & Grill says he

    looks or passion, discipline, and nancials in

    a ranchise candidate. Beore any prospective

    ranchisee is accepted into the East Coast

    system, they go through a grueling applica-

    tion process that involves both candidates

    and their spouses (or individual investors).

    Prospective ranchisees must work in an East

    Coast restaurant or up to three days beore

    they qualiy to be a candidate, and spousesmust attend Discovery Day.

    We want to be sure the spouse under-

    stands our model, brand culture, ranchising,

    and liability/accountability, Ballas said.

    Te amount o sta management required

    to run the day-to-day business o a ood ran-

    chise may be a drawback or some operators,

    depending on the size and structure o the

    concept. Many concepts require large numbers

    o low-wage, low-skilled employees. Even at

    the general manager level, it can be hard to

    nd suitable workers.Our concept or a general manager is not

    an easy concept, said Black Bears Manley. I

    you do not have strong restaurant experience

    and passion to work a whole bunch o hours

    a week, its probably not the concept or you.

    We expect general managers to not only be

    good operationally, but to truly be able to

    orm relationships with employees and guests

    and create an environment with us.

    A ranchisees ability to reach out and

    network within the community can be a huge

    actor in the success or ailure o a ranchisein any sector, but this is especially true in ood

    where the competition is great. Franchisees

    must be willing to spend countless hours

    selling themselves and their businesses in the

    community. I youre considering a ranchise

    opportunity, you may want to consider brands

    that have community involvement programs

    or a philanthropic slant to their mission, as

    these programs are a great way to become

    involved in the community and build brand

    loyalty. For example, both MOOYAH and

    Firehouse Subs have strong national programs

    or giving back and encourage ranchisees at

    the local level to be community-minded.

    Matt Rusconi, who owns a MOOYAH

    ranchise in Connecticut, says his store is

    actively involved in local sports programs.

    Being able to give back is about more than

    just business, Rusconi said. Its about having

    the opportunity to give back to the amilies

    and institutions that make up the community

    in which we operate. Its the least we can do

    Having a ranchise partner that understands

    that mentality makes it all the more easible

    and powerul.

    Because o the unique challenges that ace

    ood operators, many ranchisors and lender

    require ranchisees to have vast operationa

    experience in the industry. Tis helps on two

    levelsranchisees know what theyre gettinginto and they are more likely to be successu

    in the day-to-day operations o their business

    because theyve done or seen it beore.

    I youre considering a ood ranchise, its

    important to know that your role will likely

    evolve over time. Firehouse Subs ranchisee

    Goldsmith says his entire day-to-day routine

    has changed since rst becoming a ranchisee

    en years ago, I was unlocking the door

    slicing the meat, making the sandwiches

    I was just trying to make sure we opened and

    closed the doors every day, Goldsmith saidNow, its a little dierent. I spend a lot more

    time working on my business and not in it

    Im more ocused on the nancials and opera

    tional management o all my units and much

    less on actually making the sandwiches.

    Goldsmith is about to open his seventh

    Firehouse Subs ranchise.

    FRANCHISEE SATISFACTION

    Forty ranchise companies make up our list

    o the top ood ranchises or 2013the same

    number as 2012. Tese are the brands thatreceived above-average ratings rom their

    ranchisees in our independent satisaction

    survey, which covers nancial opportunity

    training and support, leadership, operation

    and product development, core values, gener-

    al satisaction, and the ranchisee community

    Te biggest variance (5.9 points) between

    the ood industry and other industry bench

    marks was in the area o Training and

    Support, which is driven by our key areas

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    SPECIAL REPORT: Top Food Franchises

    raining and Support Programs, Marketing

    and Promotional Programs, Eective Use oechnology, and System-wide Communica-

    tion. Food ranchisees rated their ranchisors

    Eective Use o echnology 8 points less than

    our benchmark across all industries (this is a

    big improvement over 2012 when satisaction

    was 14 points less than benchmarks). Market-

    ing and Promotional Programs scored 5 points

    less than benchmark (again, an improvement

    rom 2012 when ranchisees rated their

    ranchisors 12 points less than benchmark).

    Another category where satisaction

    among ood ranchisees lags behind ourbenchmarks (by 5 points) is in the area o

    Leadership. Te leadership questions ocus

    on corporates ability to promote a strong

    vision or the brand, a team culture, and drive

    the business orward.

    Its important to note that while satisaction

    among allood ranchisees lags behind other

    sectors, satisaction among ranchisees at our

    Top 40 companies actually exceeds the bench-

    markfor every single category of the survey.

    Most ood ranchisors are beginning to

    understand that satised ranchisees are moresuccessul, more engaged, and only improve

    their corporate bottom line. All o the ran-

    chisors we spoke with (all rom companies

    with high ranchisee satisaction) said they

    spend a considerable amount o time ocus-

    ing on unit-level economics and working with

    their ranchisees.

    When we do our ranchise operations

    visits, instead o it being an inspection with

    a checklist, we are more ocused on business

    support, said Falciani o Quaker Steak and

    Lube. We look at protability rst, thenrevenue, quality and delivery, standards, and

    checklists. Our ranchisees appreciate that.

    We want our partners to do well. I they dont

    do well, we dont do well.

    SUMMARY

    Food ranchises oer an exciting, ever-

    changing, never-boring environment to

    ranchisees who dont mind making a

    bigger nancial investment, working long

    hours, and managing a large and diverse

    workorce. Food operators remain some othe most passionate in all o ranchising, and

    while the investment is higher than in other

    sectors, so is the potential or return. In the

    past year, weve seen improvements in the

    lending landscape and in protability, and

    ranchisee satisaction has held steady.

    Potential business owners may be initially

    attracted to the hype around a particular brand

    or the overall idea o running a restaurant, bu

    this should come second behind thorough

    due diligence. Prospective ranchisees mus

    do their homework and compare brandsside-by-sidelooking at both well-known

    ood ranchises and some o the smaller

    lesser-known opportunities. Every ood

    ranchise has its own culture, and ranchisees

    should careully consider how that culture ts

    with their own business goals beore commit-

    ting to a brand.

    For more detailed research on specic

    ood service ranchises, please visit us online

    at www.FranchiseBusinessReview.com .

    Franchisee Satisfaction: Food Sector vs. All Industries

    Overall

    General Satisaction

    Financial Opportunity

    Sel-Evaluation

    Franchisee Community

    Core Values

    Leadership

    Franchise System

    Training & Support

    0% 10% 70%60%50%40%30%20%

    Percent of Satisfaction

    All food All Industries

    * Satisaction comparison data above is based on independent surveys o ranchisees completed within the previous 12 months. FBRs Food Sector Benchmark is based on data rom 3,359 ood industry ranchisees.

    The FBR Benchmark is based on data rom 16,995 ranchisees across all industries.

    80%

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    SPECIAL REPORT: Top Food Franchises

    CulversStartup Investment: $1,439,000 $3,087,000

    Cash Required: $350,000

    Domestic Franchises: 485

    Culvers franchise partners all have one thing

    in common, and thats a commitment to our

    founding principles of freshness and quality,

    hospitality and service to the community. Our

    franchise partners are critical to Culvers success

    because as owner-operators theyre engaged

    in their business every day, working side-by-

    side with their team, leading by example. Were

    looking for franchise partners with the leadership

    skills to take a team of people and operate a

    Culvers according to our high standards. You

    need energy and enthusiasm. You have to be

    willing to work hard. You have to love people and

    believe, as we do, that having a great heart is also

    good business.

    For more information on Culvers

    opportunities, call (608) 644-2600

    or visit www.ownaculvers.com.

    Firehouse SubsStartup Investment: $178,376 $625,801

    Cash Required: $80,000 $100,000

    Domestic Franchises: 612

    As one of the countrys fastest growing

    restaurant brands and a leader in the fast casual

    industry, the demand for our uniquely prepared

    specialty subs is growing by leaps and bounds,

    opening up opportunities for expansion in new

    and existing markets. With our strong brand

    identity, exceptional franchisee relationships,

    high average unit volume, well-dened real

    estate guidelines, and passionate executive

    team, Firehouse Subs is perfectly poised for

    development with the right investor.

    For more information on Firehouse Subs

    opportunities, call (877) 887-8330 or visit

    www.rehousesubs.com/franchising.

    Checkers & RallysStartup Investment: $111,000 $825,000

    Cash Required: $250,000

    Domestic Franchises: 456

    Checkers/Rallys Drive-In Restaurants is the

    largest double drive-thru restaurant chain in the

    United States. Today, the Tampa-based company

    develops, owns, operates, and franchises nearly

    800 Checkers and Rallys restaurants across the

    U.S. In recent years, the brand has received some

    of the restaurant industrys most prestigious

    awards including the Hot! Again award fromNations Restaurant News.

    For more information on Checkers & Rallys

    opportunities, call (813) 283-7049 or visit

    www.checkersfranchise.com.

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    Auntie AnnesStartup Investment: $194,875 $367,600

    Cash Required: $40,000 $80,000

    Domestic Franchises: 1,015

    Auntie Annes is the worlds largest hand-rolled

    pretzel franchise. With over 1,100 locations

    worldwide, Auntie Annes stores hand-roll and

    bake their irresistible pretzels in full view of

    customers. At Auntie Annes, were all about

    rolling out pretzel perfection. As part of Auntie

    Annes involvement in the VetFran program,

    active and retired military candidates will pay

    a reduced franchise fee of $20,000 for any

    location they open.

    For more information on Auntie Annes

    opportunities, call (717) 435-1479 or visit

    www.auntieannesfranchising.com.

    HardeesStartup Investment: $1,147,900 $1,542,000

    Cash Required: $300,000

    Domestic Franchises: 1,705

    At Hardees, our next success story is you. We

    consistently out-deliver the competition with

    a menu strategy that focuses on developing

    premium, sit-down restaurant-quality menu items

    that oer the convenience and value of fast food.

    With our consistent track record of AUV sales

    growth and solid unit economics, we run the

    business so our franchisees can be successful.

    Celebrating over 50 years in the quick-service

    industry, Hardees is a wholly owned subsidiary

    of CKE Restaurants. As of the end 2012, the

    company, through its subsidiaries, had a total

    of 3,307 franchised or company-operated

    restaurants in 42 states and in 28 countries.

    For more information on Hardees

    opportunities, call (866) 253-7655

    or visit www.ckefranchise.com.

    Simple Simons PizzaStartup Investment: $89,500 $593,500

    Cash Required: $25,000

    Domestic Franchises: 230

    Simple Simons Pizza was founded in 1982 based

    on a simple philosophy to serve the best quality

    pizzas, calzones, and sandwiches at the most

    aordable price in a family atmosphere that

    people can enjoy.

    For more information on Simple Simons Pizza

    opportunities, call (800) 261-6375 or visit

    www.simplesimonspizza.com/franchise-info.

    East Coast Wings & GrillStartup Investment: $245,050 $873,374

    Cash Required: $250,000- $575,000

    Domestic Franchises: 25

    East Coast Wings & Grill has strong unit

    economics because weve created a formula that

    works! We oer a wide variety of fresh menu

    items and the nations #1 wings in 75 avors

    and nine heat indexes in a full-service, casual

    dining experience. By focusing on our deliciousfood in a friendly environment, were taking a

    wing concept to new heights! Transparency and

    an open FDD show our true value and brand

    integrity. We maintain superior satisfaction

    ratings with our franchisees and support them at

    every level. Fresh food, friendly, fun environment

    and a nancially sound investment no wonder

    were an irresistible opportunity for savvy

    investors looking for a proven concept.

    For more information on East Coast Wings &

    Grill opportunities, call (800) 381-3802

    or visit www.eastcoastwings.com.

    How long have you been a franchisee?

    We have been franchisees of several concepts

    spanning a combined 60+ years experience in

    the full-service, family-style restaurant segment.Weve been friends for over 20 years and saw an

    opportunity to blend our talents with an exciting

    concept.

    What is your favorite item o your menu?

    There are a lot of great items but our Chicken

    Fried Steak is out of this world!

    Why did you decide to buy a franchise?

    We appreciate the ability to be creative in an

    entrepreneurial environment. Menu design and

    development is left to the brand that solicits

    and values our input. We get the benet of the

    franchisors heavy lifting while maintaining alevel of independence.

    Why did you choose your franchise?

    Black Bear Diner is an emerging brand that

    reects the values in food and service as well as

    their commitment to quality that most closely

    mirrors ours. You see this not only in their menu

    and food oerings, but most importantly, in the

    faces of the sta who have genuine pride being

    associated with the brand.

    What is the best part of being your own boss?

    Being responsible for our own destiny.

    Where do you see yourself in ve years?

    Continuing to grow and develop locations.

    For more information on Black Bear Diner

    opportunities, call (530) 243-2327

    or visit www.blackbeardiner.com.

    Black Bear Diner, Northern California

    Tim Augustine & Burt Benepal

    FEATURED

    Franchisee

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    SPECIAL REPORT: Top Food Franchises

    Black Bear DinerStartup Investment: $544,300 $1,353,700

    Cash Required: $750,000 - $1,000,000

    Domestic Franchises: 45

    Black Bear Diner franchisees are proven

    restaurant operators whose passion, energy,

    and entrepreneurial spirit reect that of

    our founders who opened the original Mt.

    Shasta location in 1995. We are committedto delivering huge portions of comfort food

    classics in a fun, family-friendly atmosphere.

    Our franchise partners reect this commitment

    by building successful teams who carry on our

    founding principles to serve our guests and

    their communities. If you are an experienced,

    capitalized restaurateur who has proven success

    in the industry and can meet our nancial

    requirements, we would love to hear from you.

    For more information on Black Bear Diner

    opportunities, call (530) 243-2327

    or visi t www.blackbeardiner.com.

    Zoup!Startup Investment: $365,900 $558,900

    Cash Required: $120,000

    Domestic Franchises: 49

    Founded in 1998, Zoup! is the leading fast-casual

    soup concept restaurant that is dening the

    category with its premium and proprietary

    soups and other recipes. With the same

    Everything Matters philosophy that ensures

    quality, satisfaction, and convenience for

    customers, Zoup! has created the infrastructure,

    systems, and support programs that give

    franchisees the tools they need to build

    their own successful businesses. In addition

    to the opportunity to own a one-of-a-kind,

    exciting business that has a proven record

    of success, Zoup! franchisees enjoy a strong

    niche positioning consistent with consumer

    preferences, and availability of great territories.

    For more information on Zoup! opportunities,

    call (800) 940-ZOUP(9687) or visit

    www.zoupfranchise.com.

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    WingstopStartup Investment: $252,621 $554,898

    Cash Required: $200,000

    Domestic Franchises: 599

    Wingstop Restaurants, the Wing Experts, is

    rapidly expanding and will soon have 600

    restaurants operating throughout the U.S.

    as well as international markets. We attract

    franchisees from all walks of life, and it is our

    simple operating platform, fresh cooked-to-order

    wings, and small footprint that makes Wingstop

    a franchisor company of choice. We continue to

    look for ways to reduce investment costs for our

    franchisees, yielding a stronger ROI. Wingstop

    is very proud of our accomplishments within

    the industry, and we are currently celebrating

    over 9 straight years of same store sales growth.

    Franchisees are trained in our top notch 4-week

    training program and receive ongoing support as

    they open and operate their restaurants.

    For more information on Wingstop

    opportunities, call (972) 686-6500

    or visit www.wingstopfranchise.com.

    The HoneyBaked Ham Co.Startup Investment: $278,300 $409,900

    Cash Required: $150,000

    Domestic Franchises: 188

    HoneyBaked was founded in 1957 and is a

    premium food retailer known for the most

    avorful, moist, and tender Honey Baked Hams

    and Turkey Breasts youll nd anywhere, as well

    as a host of other fully cooked entrees, side items,

    and desserts. Franchise owners benet from

    HoneyBakeds strong brand identity, multiple

    revenue streams, and ease of operations.

    For more information on The HoneyBaked

    Ham Co. opportunities, call (866) 968-7424

    or visit www.honeybakedfranchise.com.

    CHURROMANIAStartup Investment: $145,000 $335,000

    Cash Required: $145,000 $335,000

    Domestic Franchises: 15

    CHURROMANIA is the most successful and

    largest franchise specializing in churros and hot

    chocolate since 1997. A Churro is a power-

    packed sweet treat favorite that can be sharedwith family and friends! The menu is unique and

    oers the consumer a variety of toppings and

    llings including sugar, cinnamon, dulce de leche,

    strawberry, chocolate, Nutella, and key lime pie.

    CHURROMANIA has more than 120 worldwide

    stores. The company provides 360-degree

    franchisee support to ensure optimal training,

    P&L optimization, management assistance, and

    ecient brand marketing.

    For more information on CHURROMANIA

    opportunities, call (786) 401-6026 or visit

    www.churromania.com/franchises.

    Fuzzys Taco ShopStartup Investment: $330,260 $704,210

    Cash Required: $330,260 - $704,210

    Domestic Franchises: 61

    Fuzzys Taco Shops corporate-owned and

    franchise locations serve fresh, handmade

    Baja-style Mexican food in 70 stores across

    11 states. All of our restaurants oer patio

    seating, and our specialties include shtacos, burritos, queso, and ice-cold beer. The

    atmosphere is bright, fun, and energeticperfect

    for gathering with friends and family to watch

    a game, enjoy a beverage, or hang out. Our

    owners value giving back to their communities,

    and we recently paired with a national charity to

    celebrate Fuzzys 10th anniversary. If you get the

    FTS vibe and believe in operational excellence,

    we may be right for each other!

    For more information on Fuzzys Taco Shop

    opportunities, call (817) 624-8226

    or visit www.fuzzystacoshop.com.

    How long have you been a franchisee?

    1.5 Years

    What is your favorite item o your menu?

    Twist Dulce de Leche

    Why did you choose your franchise?

    It was a great opportunity to buy one of the

    busiest stores in the CHURROMANIA franchise

    system with perfect Latin demographics and a

    high quality productit was a win-win situation.

    What is the best part of being your own boss?

    You work hard to earn your own money, have

    a exible schedule, and there are endless

    possibilities to grow.

    What is the worst part of being your own boss?

    You are always on call, and if an emergency

    comes up, Im the problem solver.

    Where do you see yourself in ve years?

    I see myself with 10+ stores

    What keeps you up at night?

    Nothing. I sleep like a baby. If you organize your

    time and schedule, there is no need to be up at

    night.

    Who has most inuenced your approach to

    business?

    My fatherhe was the best mentor I could ever

    have.

    For more information on CHURROMANIA

    opportunities, call (786) 401-6026 or visit

    www.churromania.com/franchises.

    CHURROMANIAHialeah, FL

    BernardoAbend

    FEATURED

    Franchisee

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    SPECIAL REPORT: Top Food Franchises

    18 |For more information on this report, visit: www.FranchiseBusinessReview.com

    Would you do it all over?

    Long-Term Growth Opportunity

    44%YesProbably20%

    Probably Not9%Neutral15%

    No12%

    < 30

    14%

    30-40

    21%

    40-50 50-60

    25%

    60+

    24%

    < 2

    34%

    2-5

    19%

    6-9 10+

    Age

    18-24

    1% 13%

    25-34

    25%

    17%

    35-44

    36%

    45-54

    21%

    22%

    55-64

    4%

    65+

    23%

    Tenure (in years)

    Average Hours Per Week

    8

    35%

    5% Very Weak12%

    17%Very Strong

    Weak

    Strong

    31%Moderate

    15%NORTHEAST

    39%SOUTH

    28%MIDWEST18

    %

    WEST

    2%CANADA 2%INTERNATIONAL

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