Top SHOPS

Poder's annual survey of Hispanic diversity in the franchise business sector in 2007

Monday, October 01, 2007

By Rob Bond and C. Everett Wallace

Thanks to hard work and an overarching commitment to success, the American middle-class Hispanic community has steadily grown and prospered within the last 15 years. As a result, the franchising community has become increasingly pro-active about recruiting and supporting Hispanic franchisees. According to a recent survey conducted by the National Minority Franchising Initiative, Hispanic franchisees already represent 15 percent or more of their total franchisees. One primary goal of Hispanic Enterprise's Top 25 questionnaire was to determine what percentage of the franchisor’s key managers (i.e. those earning in excess of $60,000 per annum) are Hispanic. We were pleasantly surprised to learn that many companies have a high percentage of Hispanic managers in key positions – a clear sign of progress and upward mobility. We were equally impressed by the level of manpower that many large franchisors are committing to the recruitment and support of minority franchisees.

Producing a list with the Top 10, 25, or 100 of any category is a difficult task. It’s hard enough picking the best movies, actresses, or baseball players. Picking the top franchise opportunities, however, is even more daunting—especially with the foreknowledge that someone may naively take such a list and commit an investment in excess of $200,000 without doing the proper due diligence.

There are a number of critical variables that must be considered in their entirety before a potential investor should decide which franchise is best for him or her. These include historical performance, brand identification, market dynamics, franchisee satisfaction, the level of initial training and ongoing support, financial stability, and various other key areas that must be fully explored.

Although some would advise otherwise, we suggest that one should take at least four months to make the decision on a franchise—and that means not succumbing to pressure (whether by franchisors, brokers, investors, or well-intentioned friends) to make that decision prematurely.

There are severe penalties for making the wrong choice. At best, you may make a poor investment and will be both unhappy and financially strapped; at worst, you may lose your self-worth and your investment in its entirety. The secret is to do your homework at the outset.

Every decision is an individual one that has to be made in light of your personal strengths, weaknesses, long-term objectives, and tolerance for risk. Keep in mind that there are about 2,400 franchise systems in North America, many brand new and many tried-and-true. Unless you have a great deal of business experience in a particular industry, consider sticking with a company that has 40 or more operating units. These are the ones that have already learned from their mistakes and have the staff to properly support you as a new franchisee. You should also favor those firms that have already demonstrated their intentions and efforts to recruit minorities, especially Hispanics, into their company, whether as managers or as franchisees.

Each and every one of the companies listed here as a Top 25 Franchise has made a corporate commitment to recruit prospective franchisees from the Hispanic community over the past several years. This commitment is not motivated by altruism; it is based on sound economics. It is a fact of life that many of the growing numbers of Latino immigrants and Hispanic Americans have settled in areas that are currently underserved by the basic retail and service outlets prevalent in most other communities. Given the large and growing buying power within these underserved markets, it is an undeniable reality that Hispanic franchisees are the best candidates to run franchises within these communities.

With the above caveats in mind, the companies noted here represent exceptional opportunities for prospective franchisees and have demonstrated a commitment to properly training and supporting you once you become a franchisee.

Bonus Building Care

  • Turn-key commercial cleaning operation, with customers, training, operations assistance, equipment, business insurance and clerical support. Franchisees get personalized support and quick start-up. Master franchises available. IFA Member.
  • Franchisor Background
    • Established: 1996
    • First Franchise: 1996
    • Franchise Units: 1,295
    • Company-Owned Units: 380
    • Total Units: 1,675
    • North American Distribution: Operations in 16 states
    • States/Provinces with Greatest Density: 508 in Tennessee, 267 in Texas
    • Average Number of Employees: Varies
  • Financial Requirements
    • Cash Investment: Varies
    • Total Investment: Varies
    • Fees:
    • Franchise: $6.5K
    • Royalty: 10 percent

Carlson Hotels Worldwide

  • Carlson Hotels Worldwide is one of the world’s major hotel companies, operating in more than 69 countries. Brands include: Regent International Hotels, Radisson Hotels, Park Plaza Hotels, Country Inns & Suites and Park Inn Hotels.
  • Franchisor Background
    • Established: 1938
    • Franchise Units: 925
    • Company-Owned Units: 11
    • Total Units: 936
    • North American Distribution: Operations in 50 states
  • Financial Requirements
    • Cash Investment: $1 million to $20 million
    • Total Investment: $3 million to $100 million
    • Average Total Investment: $2 million
    • Fees:
    • Franchise: $5K to $150K
    • Royalty: 4 to 5 percent

Carvel Corporation

  • The nation’s first retail ice cream franchise is a leading manufacturer of ice cream cakes, and premium soft serve ice cream products. The company boasts of 90 percent brand awareness in its core markets. Commitment to franchisees includes pre-opening development support, comprehensive training, innovative marketing programs and ongoing operational field support.
  • Franchisor Background
    • Established: 1934
    • First Franchise: 1947
    • Franchise Units: 530
    • Company-Owned Units: 0
    • Total Units: 530
    • North American Distribution: Operations in 25 states, 1 province
    • States/Provinces with Greatest Density: 217 in New York, 52 in New Jersey, 29 in Connecticut
    • Average Number of Employees: 2 full time, 6 part time
  • Financial Requirements
    • Cash Investment: $100K
    • Total Investment: $300K
    • Minimum Net Worth: $300K
    • Fees:
    • Franchise: $30K
    • Royalty: $1.82 per gallon

Cendant

  • As one of the world's largest hotel franchisors, Cendant boasts nearly 540,000 rooms. Their brands cover a wide cross-section of lodging markets, ranging from mid-priced to economy facilities that cater to all travelers.
  • Franchisor Background
    • Established: 1990
    • First Franchise: 1990
    • Franchise Units: 6,588
    • Company-Owned Units: 0
    • Total Units: 6,588
    • North American Distribution: Operations in 50
    • States/Provinces with Greatest Density: 478 in California, 435 in Texas, 423 in Florida
    • Average Number of Employees: Varies
  • Financial Requirements
    • Total Investment: $205-6,200K
    • Fees:
    • Franchise: Varies
    • Royalty: Varies

Church's Chicken

  • Church's is the second largest chicken restaurant chain in the country. Church’s offers Southern fried chicken with signature side items. It has a proven business system, niche customer base, low square footage requirements (as little as 750 square feet) and extensive franchisee support.
  • Franchisor Background
    • Established: 1952
    • First Franchise: 1972
    • Franchise Units: 1,297
    • Company-Owned Units: 276
    • Total Units: 1,573
    • North American Distribution: Operations in 28 states
    • States/Provinces with Greatest Density: 416 in Texas, 103 in Georgia, 74 in Florida
    • Average Number of Employees: 15 full time, 6 part time
  • Financial Requirements
    • Cash Investment: $200K
    • Total Investment: $194K to $750K
    • Minimum Net Worth: $400K
    • Fees:
    • Franchise: $5K to $15K
    • Royalty: 5 percent

Comfort Keepers

  • Comfort Keepers provides non-medical in-home care, such as companionship, meal preparation, light housekeeping, grocery and clothing shopping, and grooming for the elderly and others who need assistance in daily living. A service leader, with 95 percent client satisfaction.
  • Franchisor Background
    • Established: 1999
    • First Franchise: 1999
    • Franchise Units: 582
    • Company-Owned Units: 0
    • Total Units: 582
    • North American Distribution: Operations in 45 states, 3 provinces
    • States/Provinces with Greatest Density: 57 in California, 54 in Florida, 42 in Ohio
    • Average Number of Employees: 2 full time plus caregivers
  • Financial Requirements
    • Cash Investment: $56K to $88K
    • Total Investment: $56K to $88K
    • Minimum Net Worth: $150K
    • Fees:
    • Franchise: $32.5K
    • Royalty: 5 to 3 percent Desc.

Coverall Cleaning Concepts

  • Commercial cleaning franchise with comprehensive training, equipment, billing and collection services, and an initial customer base. With an affordable down payment as low as $1,500, Coverall Cleaning Concepts provides a combination of business programs and support systems that focus on meeting the needs of the franchisees. Master and territory franchises are also available.
  • Franchisor Background
    • Established: 1985
    • First Franchise: 1985
    • Franchise Units: 9,500
    • Company-Owned Units: 0
    • Total Units: 9,500
    • North American Distribution: Operations in 32 states, 2 provinces
    • States/Provinces with Greatest Density: 1,296 in California, 1,054 in Florida, 750 in Ohio
    • Average Number of Employees: 1 to 2 full time, 2 to 3 part time
  • Financial Requirements
    • Cash Investment: $1.5K to $25.2K
    • Total Investment: Varies
    • Fees:
    • Franchise: $6.5K to $32.2K
    • Royalty: 5 percent
    • Minimum Net Worth: $1.5K

Domino's Pizza

  • Domino’s Pizza is a recognized world leader in pizza delivery, with more than 43 years of experience. Domino’s has grown from one store in Ypsilanti, Michigan to more than 5,000 stores in the U.S., with additional locations in 50 countries around the world. The company offers a strong operating model, history of business innovations, and corporate support teams.
  • Franchisor Background
    • Established: 1960
    • First Franchise: 1967
    • Franchise Units: 4,568
    • Company-Owned Units: 570
    • Total Units: 5,138
    • North American Distribution: Operations in 50 states
    • States/Provinces with Greatest Density: 264 in California, 250 in Washington D.C., 215 in New York
  • Financial Requirements
    • Cash Investment: $30K
    • Fees:
    • Franchise: $3.2K
    • Royalty: 5.5 percent

Express Personnel Services

  • This sales-focused, business-to-business franchise helps people find good jobs and employers hire good people. Every franchise has four profit centers and one agreement. Express provides three weeks of start-up training and ongoing online learning.
  • Franchisor Background
    • Established: 1983
    • First Franchise: 1985
    • Franchise Units: 584
    • Company-Owned Units: 8
    • Total Units: 592
    • North American Distribution: Operations in 47 states
    • States/Provinces with Greatest Density: 53 in Texas, 34 in Oklahoma, 34 in Washington
    • Average Number of Employees: 3 full time
  • Financial Requirements
    • Cash Investment: $130K to $170K
    • Total Investment: $130K to $170K
    • Minimum Net Worth: $100K
    • Fees:
    • Franchise: $30K
    • Royalty: 8 to 9 percent

Fantastic Sams

  • Fantastic Sams is one of the largest full-service hair care franchises, with nearly 1,400 salons worldwide. The company offers franchisees ongoing support in marketing, advertising, recruiting, retention, training, management and business planning. No hair care experience required.
  • Franchisor Background
    • Established: 1974
    • First Franchise: 1976
    • Franchise Units: 1,400
    • Company-Owned Units: 0
    • Total Units: 1,400
    • North American Distribution: Operations in 44 states, 4 provinces
    • States/Provinces with Greatest Density: 219 in California, 104 in Florida, 96 in Michigan
    • Average Number of Employees: 8 full time
  • Financial Requirements
    • Cash Investment: $60K
    • Total Investment: $150K to $175K
    • Minimum Net Work: $250K
    • Fees:
    • Franchise: $25K to $35K
    • Royalty: Varies per region

Fastsigns International

  • Fastsigns centers use state-of-the-art computer technology to create custom signs, graphics and banners. The company’s goal is to help our franchisees build successful centers that achieve and maintain high sales volumes and maximum profits year after year. Average/store sales have increase 15 of the last 16 years to $680,897 in 2006.
  • Franchisor Background
    • Established: 1985
    • First Franchise: 1986
    • Franchise Units: 503
    • Company-Owned Units: 0
    • Total Units: 503
    • North American Distribution: Operations in 45 states, 4 provinces
    • States/Provinces with Greatest Density: 56 in Texas, 41 in California, 33 in Florida
    • Average Number of Employees: 3 full time
  • Financial Requirements
    • Cash Investment: $75K
    • Total Investment: $189K to $272K
    • Minimum Net Worth: $189K
    • Fees:
    • Franchise: $25K
    • Royalty: 6 percent

Huntington Learning Center

  • Offers tutoring to students, ages 5 to 19, in reading, writing, language development study skills and mathematics, as well as programs to prepare for the SAT and ACT exams. Instruction is offered in a tutorial setting and is predominately remedial in nature.
  • Franchisor Background
    • Established: 1977
    • First Franchise: 1985
    • Franchise Units: 276
    • Company-Owned Units: 36
    • Total Units: 312
    • North American Distribution: Operations in 41 states
    • States/Provinces with Greatest Density: 37 in California, 31 in Florida, 26 in New York
    • Average Number of Employees: 2 to 4 full time, 12 to 20 part time
  • Financial Requirements
    • Cash Investment: $60K
    • Total Investment: $203K to $394K
    • Minimum Net Worth: $250K
    • Fees:
    • Franchise: $43K
    • Royalty: 8 percent/$1.5K Min.

InterContinental Hotels Group

  • InterContinental Hotels Group operates hotels in more than 100 countries. Brands include InterContinental Hotels, Crowne Plaza, Holiday Inn, Holiday Inn Express, Staybridge Suites Hotels, Candlewood Suites, and Hotel Indigo.
  • Franchisor Background
    • Established: 1952
    • First Franchise: 1952
    • Franchise Units: 3,104
    • Company-Owned Units: 540
    • Total Units: 3,644
    • North American Distribution: Operations in 50 states
  • Financial Requirements
    • Cash Investment: $1 million to $20 million
    • Total Investment: Varies
    • Minimum Net Worth: Varies
    • Fees:
    • Franchise: $50K minimum
    • Royalty: 5 to 6 percent

Jani-King International

  • Jani-King is one of the world’s largest commercial cleaning franchisors with locations in 19 countries and over 110 regions internationally. Franchise opportunities include initial customer contracts, training, local support, administrative and accounting assistance, equipment leasing and national advertising.
  • Franchisor Background
    • Established: 1969
    • First Franchise: 1974
    • Franchise Units: 12,000
    • Company-Owned Units: 21
    • Total Units: 12,021
    • North American Distribution: Operations in 39 states, 7 provinces
    • States/Provinces with Greatest Density: 880 in Texas, 737 in California, 307 in Florida
  • Financial Requirements
    • Cash Investment: $2.9K to $33K
    • Total Investment: $2.9K to $40K
    • Minimum Net Worth: $2.9K to $33K
    • Fees:
    • Franchise: $8K to $33K
    • Royalty: 10 percent

Kentucky Fried Chicken (KFC)

  • KFC is the world's largest quick-service restaurant and features a chicken-dominant menu. It offers franchisees full-service restaurants and non-traditional express units for captive markets.
  • Franchisor Background
    • Established: 1939
    • First Franchise: 1952
    • Franchise Units: 4,204
    • Company-Owned Units: 1,252
    • Total Units: 5,456
    • North American Distribution: Operations in 50 states, 10 provinces
    • States/Provinces with Greatest Density: California, Texas, and Illinois
    • Average Number of Employees: 2 full-time, 22 part-time
  • Financial Requirements
    • Total Investment: $1.1 million to $1.7 million
    • Minimum Net Worth: $1 million
    • Fees:
    • Franchise: $25K
    • Royalty: 4 percent or $600 per month

Liberty Tax Service

  • Liberty Tax Service is the fastest-growing international tax service. In nine years, the company has grown to a size that has taken other national tax franchises 15 years to realize. The company offers a turnkey business model, marketing services and corporate support.
  • Franchisor Background
    • Established: 1996
    • First Franchise: 1997
    • Franchise Units: 2,296
    • Company-Owned Units: 65
    • Total Units: 2,361
    • North American Distribution: Operations in 50 states
    • States/Provinces with Greatest Density: 187 in California
    • Average Number of Employees: 4 to 6 full time and 2 part time
  • Financial Requirements
    • Cash Investment: $34K
    • Total Investment: $33.3K to $63.9K
    • Minimum Net Worth: $100K
    • Fees:
    • Franchise: $34K
    • Royalty: Varies

Meineke Car Care Centers

  • Meineke has been offering superior automotive repair services at discount prices for over 30 years. The nationally-recognized company offers brand recognition, training, and ongoing technical and operational support.
  • Franchisor Background
    • Established: 1972
    • First Franchise: 1973
    • Franchise Units: 886
    • Company-Owned Units: 2
    • Total Units: 888
    • North American Distribution: Operations in 49 states, 5 provinces
    • States/Provinces with Greatest Density: 69 in New York, 57 in Pennsylvania, 56 in Texas
    • Average Number of Employees: 4 full-time
  • Financial Requirements
    • Cash Investment: $60K
    • Total Investment: $190K to $352K
    • Minimum Net Worth: $150K
    • Fees:
    • Franchise: $30K
    • Royalty: 3 to 7 percent

Money Mailer

  • One of America's leading direct mail advertising companies. Over its 27-year history, the company has been at the forefront of introducing direct mail advertising products and programs. Training is supplemented with quarterly sales meetings, an annual convention, and a highly interactive intranet site that is updated weekly.
  • Franchisor Background
    • Established: 1979
    • First Franchise: 1980
    • Franchise Units: 301
    • Company-Owned Units: 20
    • Total Units: 321
    • North American Distribution: Operations in 25 states
    • States/Provinces with Greatest Density: 44 in California, 25 in Illinois, 21 in New Jersey
    • Average Number of Employees: 1 full time
  • Financial Requirements
    • Cash Investment: $53.5K to $81.5K
    • Total Investment: $53.5K to $81.5K
    • Minimum Net Worth: Varies
    • Fees:
    • Franchise: $37.5K to $52.5K
    • Royalty: $1,400 to $1,600 per month

Motel 6

  • Motel 6 is synonymous with a great travel value and enjoys among the highest brand recognition of any economy-lodging brand. A part of the Accor family of hotels, franchisee support includes complete prototype design, marketing support, national advertising, protected market territories, personalized operational support, and ongoing training at corporate headquarters. Motel 6 received the AAFD Fair Franchising Seal of Approval.
  • Franchisor Background
    • Established: 1962
    • First Franchise: 1996
    • Franchise Units: 194
    • Company-Owned Units: 675
    • Total Units: 869
    • North American Distribution: Operations in 48 states
    • States/Provinces with Greatest Density: 171 in California, 120 in Texas, 47 in Arizona
    • Average Number of Employees: 2 to 4 full time, 4 to 10 part time
  • Financial Requirements
    • Cash Investment: $100K to $500K
    • Total Investment: $2.2 to $2.6 million
    • Minimum Net Worth: $1.5 million
    • Fees:
    • Franchise: $25K
    • Royalty: 4 percent

Mr. Transmission

  • Mr. Transmission, a division of Moran Industries, franchises transmission service centers throughout the U.S. The company offers franchisees an established business system, strong brand name, customized marketing and a service that is in strong demand. In addition, comprehensive training and continuous support help to ensure franchisees maximize their potential.
  • Franchisor Background
    • Established: 1956
    • First Franchise: 1990
    • Franchise Units: 168
    • Company-Owned Units: 0
    • Total Units: 168
    • North American Distribution: Operations in 14 states
    • States/Provinces with Greatest Density: 21 in Georgia, 12 in Indiana, 12 in Florida
    • Average Number of Employees: 3 to 5 full time
  • Financial Requirements
    • Cash Investment: $50K
    • Total Investment: $149K
    • Minimum Net Worth: $100K
    • Fees:
    • Franchise: $27.5K
    • Royalty: 7 percent

Papa John's International

  • Papa John’s International prides itself on the simplicity and efficiency of its operating system, employing the same technology, distribution system and training programs system-wide to ensure the quality and integrity of the product. The Papa John’s team assists franchisees with site selection and equipment packages in addition to providing team member training assistance and restaurant-level marketing guidance.
  • Franchisor Background
    • Established: 1985
    • First Franchise: 1986
    • Franchise Units: 2,512
    • Company-Owned Units: 508
    • Total Units: 3,020
    • North American Distribution: Operations in 49 states
    • States/Provinces with Greatest Density: 239 in Florida, 207 in Texas, 173 in California
    • Average Number of Employees: 8 full time, 18 part time
  • Financial Requirements
    • Cash Investment: $160K to $395K
    • Total Investment: $160K to $395K
    • Minimum Net Worth: $250K to $2 million
    • Fees:
    • Franchise: $25K
    • Royalty: 4 percent net sales

PostNet

  • PostNet franchises offer a method of marketing products and services that consumers and businesses use daily. Its franchisees have the opportunity to tap into the global market by offering services such as UPS, DHL, FedEx, shipping, copy services, private mailboxes, fax and printing.
  • Franchisor Background
    • Established: 1992
    • First Franchise: 1993
    • Franchise Units: 900
    • Company-Owned Units: 0
    • Total Units: 900
    • North American Distribution: Operations in 39 states, 2 provinces
    • States/Provinces with Greatest Density: 89 in California, 54 in Texas, 31 in Florida
    • Average Number of Employees: 2 full time, 1 part time
  • Financial Requirements
    • Cash Investment: $50K
    • Total Investment: $174.3K to $195.8K
    • Minimum Net Worth: $300K
    • Fees:
    • Franchise: $29.9K
    • Royalty: 5 percent

RE/MAX International

  • The RE/MAX real estate franchise network, is a global system of more than 5,455 offices worldwide. RE/MAX sales associates lead the industry in professional designations, experience and production while providing real estate services in residential, commercial, referral, relocation and asset management.
  • Franchisor Background
    • Established: 1973
    • First Franchise: 1975
    • Franchise Units: 6,922
    • Company-Owned Units: 33
    • Total Units: 6,955
    • North American Distribution: Operations in 50 states, 12 provinces
    • States/Provinces with Greatest Density: 452 in Illinois, 155 in California, 267 in Ohio
    • Average Number of Employees: 2 to 4 full time, 1 part time
  • Financial Requirements
    • Cash Investment: $20K to $200K
    • Total Investment: $18.8K to $150K
    • Minimum Net Worth: Varies
    • Fees:
    • Franchise: $10K to $25K
    • Royalty: Varies

ServiceMaster Clean

  • With over 52 years of franchising experience, ServiceMaster Clean continues to grow each year. The company offers five different franchise licenses: a residential services license, commercial services, disaster restoration services, janitorial services, and small market services. Financial assistance is offered.
  • Franchisor Background
    • Established: 1947
    • First Franchise: 1952
    • Franchise Units: 4,488
    • Company-Owned Units: 0
    • Total Units: 4,488
    • North American Distribution: Operations in 50 states, 10 provinces
    • States/Provinces with Greatest Density: 200 in Illinois, 155 in California, 139 in Ohio
    • Average Number of Employees: 3 full time, 2 part time
  • Financial Requirements
    • Cash Investment: $12K
    • Total Investment: $18.8K to $100K
    • Minimum Net Worth: $50K Fees:
    • Franchise: $16.9K to $43K
    • Royalty: 4 to 10 percent

Two Men And A Truck

  • Two Men And A Truck is a local moving franchise committed to exceeding customers’ expectations. Training for franchisees by the operations department covers everything from how to move a grand piano to how to how to hire, market, manage and lead.
  • Franchisor Background
    • Established: 1985
    • First Franchise: 1989
    • Franchise Units: 162
    • Company-Owned Units: 8
    • Total Units: 170
    • North American Distribution: Operations in 29 States, 1 Province
    • States/Provinces with Greatest Density: 20 in FL, 18 in MI, 14 in GA
    • Average Number of Employees: 5 full time, 3 part time
  • Financial Requirements
    • Cash Investment: $50K+
    • Total Investment: $115K to $300K
    • Minimum Net Worth: 300K+
    • Fees:
    • Franchise: $37K
    • Royalty: 6 percent