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Restaurant Brokers Weigh in on Top 40 Restaurant Franchises based on Satisfaction with Brand

Posted by Robin Gagnon on Sep 21, 2017 12:18:22 PM

Chain Restaurants just published a recent survey of more than 4,300 franchisess across 100 brands. Theiy were searching for franchisee satisfaction. Then they ranked the best and published their Top 40 Restaurant Franchises list.

What do the restaurant brokers think? Well , I for one, would have appreciated a ranking from first to last rather than just an alphabetized list. I would also like more clarity on what the survey asked. The article cites part of the reason for landing on the top 40 list was the ability of these brands to deliver an, "intense focus on company culture."Is culture enough however? For these restaurant brokers, looking at a list of concepts ranging from emerging brand Dicks Wings & Grill with only 23 units to Zaxby's with 946 units is a very wide range. Is the culture great because the brand is so small that there's immense individualized attention? Conversely, is the culture great because a large brand has the money and payroll to keep a team in place to make everyone "feel good" even if they are not making money.

What about the store development costs and return on investment? This list showns startup investment costs for these restaurant franchises ranging from a low of $45,000 for Happy and Healthy Concepts to a whoppping $3 million for Buffalo Wings & Rings, Both are "Happy franchisees" and I want to know more about the difference between what makes each investor and franchisee of these brands make the list.

What do you think? The survey respondents totaled more than 4,300 franchisees from almost 100 foodservice brands. Franchise Business review analyzed 18 months of data before naming their Top 40 Food and Beverage Franchises for franchisee satisfaction.

Looking at this data another way, if "almost 100" foodservice brands were included and the ultimate list was 40 brands, was this a self-serving survey since the brand had almost a 50% chance of landing in the top? Without ranking, we don't know if one of the restaurant franchieses listed below was number 40 out of 100 which is not that super great. On the other hand, they did throw in everything from soup to nuts (or Zoup! to Biggby Coffee) so that's a positive.

The list is below and it was published in an article by Chain Restaurants written by Peggy Carouthers. Let the restaurant brokers know what you think about the list.

These are the year's Top 40 franchisees in alphabetical order:

Startup Investment: $223,346 – $720,825
Cash Requirement: $90,000
Total Units: 89

Startup Investment: $220,000
Cash Requirement: $70,000
Total Units: 254

Startup Investment: $169,000 – $433,000
Cash Requirement: $60,000
Total Units: 59

Startup Investment: $1,224,000 – $3,085,000
Cash Requirement: $300,000
Total Units: 57

Startup Investment: $771,000 – $1,003,000
Cash Requirement: $350,000
Total Units: 522

Startup Investment: $96,414 – $1,501,265
Cash Requirement: $250,000
Total Units: 855

Startup Investment: $237,500 – $772,500
Cash Requirement: $100,000
Total Units: 23

Startup Investment: $449,000 – $667,000
Cash Requirement: $449,000 – $667,000
Total Units: 152

Startup Investment: $658,875 – $1,133,502
Cash Requirement: $250,000
Total Units: 35

Startup Investment: $883,000 – $1,399,000
Cash Requirement: $250,000
Total Units: 334

Startup Investment: $335,000 – $1,035,000
Cash Requirement: $250,000
Total Units: 112

Startup Investment: $2,120,644 – $6,170,713
Cash Requirement: $500,000
Total Units: 482

Startup Investment: $450,000 – $2,200,000
Cash Requirement: $350,000
Total Units: 27

Startup Investment: $45,000 – $90,000
Cash Requirement: $45,000 – $90,000
Total Units: 65

Startup Investment: $251,375 – $495,850
Cash Requirement: $100,000
Total Units: 548

Startup Investment: $191,255 – $385,155
Cash Requirement: $125,000
Total Units: 137

Startup Investment: $201,000 – $619,300
Cash Requirement: $350,000
Total Units: 953

Startup Investment: $905,891
Cash Requirement: $905,891
Total Units: 261

Startup Investment: $120,225 – $143,025
Cash Requirement: $20,000
Total Units: 941

Startup Investment: $800,000 – $1,000,000
Cash Requirement: $500,000
Total Units: 66

Startup Investment: $188,216 – $396,146
Cash Requirement: $75,000
Total Units: 96

Startup Investment: $221,592 – $546,592
Cash Requirement: $221,592 – $546,592
Total Units: 682

Startup Investment: $412,750 – $620,000
Cash Requirement: $250,000
Total Units: 98

Startup Investment: $392,875 – $545,475
Cash Requirement: $150,000
Total Units: 168

Startup Investment: $293,102 – $593,027
Cash Requirement: $300,000
Total Units: 310

Startup Investment: $156,000 – $643,500
Cash Requirement: $90,000
Total Units: 109

Startup Investment: $182,500 – $402,000
Cash Requirement: $100,000
Total Units: 58

Startup Investment: $334,000 – $514,000
Cash Requirement: $100,000
Total Units: 167

Startup Investment: $225,650 – $426,185
Cash Requirement: $100,000
Total Units: 907

Startup Investment: $154,158 – $542,408
Cash Requirement: $154,158 – $542,408
Total Units: 206

Startup Investment: $299,200 – $468,200
Cash Requirement: $100,000
Total Units: 405

Startup Investment: $300,000 – $3,000,000
Cash Requirement: $2,000,000
Total Units: 6,564

Startup Investment: $291,666 – $527,152
Cash Requirement: $150,000
Total Units: 99

Startup Investment: $198,050 – $478,550
Cash Requirement: $125,000
Total Units: 541

Startup Investment: $736,000 – $1,850,500
Cash Requirement: $750,000
Total Units: 196

Startup Investment: $300,000 – $780,000
Cash Requirement: $300,000 – $780,000
Total Units: 40

Startup Investment: $346,775 – $733,249
Required net worth $1,200,000; $600,000 liquid
Total Units: 1,056—21 are corporate-owned stores, and the rest are franchise

Startup Investment: $352,000 – $664,300
Cash Requirement: $300,000
Total Units: 946

Startup Investment: $321,400 – $609,400
Cash Requirement: $321,400 – $609,400
Total Units: 87

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Topics: Buying a Restaurant