2016's Top 5 Franchises

Entrepreneur Magazine just came out with their list of the top 500 franchises in 2016 . We’ll be taking a look at the five highest performing franchises, analyzing financial requirements and franchisor support. Franchises are experiencing
twice the job growth rate of small businesses in 2016, so now is a great time to invest and start developing one of your own. Take advantage of our guide to inform your decision of whether or not to franchise, just remember that best practice is to conduct your own investigation before you invest. To learn more about entrepreneurship through franchising, attend our free monthly webinar, “Franchise Ownership as a More Stable Career Path.” Register by clicking on this link, or calling 866-246-2884.

5. Subway

Subway is the world’s largest submarine sandwich chain with more than +44,000 locations worldwide. Owned and operated by Doctor’s Associates Inc., Subway is one of the fastest growing franchises in the world, as well as being the largest single-brand restaurant chain and restaurant operator.

4. Servpro

Servpro provides fire and water cleanup and restoration services in the United States and Canada. More than 1,650 franchises are operating nationwide, making Servpro a leader in the restoration industry as its professionals are available 24 hours/7 days a week to service both residential and commercial customers.

3. Supercuts

Supercuts is a hair salon franchise with over 2,000 locations across the United States. Supercuts has a wide range of services that includes men’s haircuts, women’s haircuts, kids’ haircuts, color services, and waxing in addition to offering professional haircare products at affordable prices.

2. Hampton by Hilton

Hampton by Hilton, formerly know as Hampton Inn, is a hotel brand trademarked by Hilton Worldwide. With over 2,000 locations globally, Hampton by Hilton is one of the largest hotel franchises in the country providing a moderately priced, upper midscale hotel service to its customers.

1. Jimmy John’s Gourmet Sandwiches

Jimmy John’s Gourmet Sandwiches is a sandwich restaurant chain that specializes in delivery. The company currently has more than 2,000 locations in the United States of which 98% are franchise-owned! There are the #1 franchise in Entrepreneur Magazine for 2016 due to their high average net profit and streamlined business operations.

Financials Comparison

Financial Requirements	Initial Investment	Net Worth Requirement	Liquid Cash Requirement
Jimmy John’s Gourmet Sandwiches	$323,000 – $544,000	$300,000	$80,000
Hampton by Hilton	$3,793,600 – $14,146,500		$375,000
Supercuts	$144,400 – $293,800	$500,000	$150,000
Servpro	$141,550 – $191,200		$85,000
Subway	$116,600 – $263,150	$80,000 – $310,000	$30,000 – $90,000
Ongoing Fees	Initial Franchise Fee	Ongoing Royalty Fee	Ad Royalty Fee
Jimmy John’s Gourmet Sandwiches	$35,000	6%	4.5%
Hampton by Hilton	$75,000	6%	4%
Supercuts	$29,500	6%	4%
Servpro	$45,000	3-10%	3%
Subway	$15,000	8%	4.5%
Change in Units	1 Year (Units)	3 Years (Units)
Jimmy John’s Gourmet Sandwiches	+9.0% (+205)	+22.5% (+514)
Hampton by Hilton	+4.4% (+90)	+5.7% (+117)
Supercuts	+5.3% (+136)	+8.8% (+225)
Servpro	+1.8% (+30)	+4.7% (+80)
Subway	+1.7% (+768)	+9.4% (+4149)

Operations & Franchisor Support Comparison

	Jimmy John’s Gourmet Sandwiches	Hampton by Hilton	Supercuts	Servpro	Subway
Training	3-7 weeks	2 weeks	4 days	3.5 weeks	2 weeks
Ongoing Support
Purchasing Co-ops	✔	✔		✔	✔
Meetings	✔	✔	✔	✔	✔
Grand Opening	✔	✔	✔	✔	✔
Security		✔	✔	✔	✔
Newsletter	✔	✔	✔	✔	✔
Toll-Free Line	✔	✔	✔	✔	✔
Internet	✔	✔	✔	✔	✔
Field Operations	✔	✔	✔	✔	✔
Marketing Support
Co-op Advertising	✔	✔		✔	✔
Regional Media		✔	✔	✔	✔
Ad Slicks	✔	✔	✔	✔	✔
National Media	✔	✔		✔	✔
Absentee Ownership		✔	✔		✔
Number of Employees Required to run	20	25	6 – 8	5 – 10	8 – 12

2016’s Top 5 Franchises