The Prime 20 Franchises of 2020 From the Entrepreneur Franchise 500

Entrepreneur has been rating the highest 500 franchises in America for 41 years. We use a five-pillar system to guage the a whole bunch of entries we obtain yearly. These 5 pillars (in no explicit order) are:

1. Prices and charges. This contains the franchise payment, whole funding and royalty charges.
2. Measurement and development. This counts open and working models, development price and closures.
3. Help. This pillar takes into consideration coaching instances, advertising and marketing assist, operational assist, franchisor infrastructure, financing availability and litigation.
4. Model power. This facet is all about social media, system measurement, years in enterprise and years franchising.
5. Monetary power and stability. This considers the franchisor’s audited monetary statements.

Yearly, the competitors grows thicker and thicker as new companies create compelling instances and the old-school, established ones maintain innovating. Even making the Franchise 500 is a big accomplishment, however which of them managed to crack the highest echelon and make our prime 20? 

Begin the slideshow to search out out.

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Dunkin’

Entrepreneur Franchise 500 record rank: 1

Began franchising: 1955

Complete models: 12,957

Preliminary franchise price: $395,500 to $1.6 million

The most recent journal characteristic for our top-ranked franchise begins, “How Dunkin’ dropped the phrase Donuts, offered extra doughnuts anyway, and rose to No. 1.” That’s the kind of vitality we might all use within the New Yr: letting go of the issues holding us again and persevering with to each develop and innovate. 

Someway, this marks the primary time Dunkin’ has earned the highest spot in our record, regardless of debuting at No. 17 in 1980 and rating No. 2 in three totally different a long time. 

Taco Bell

Entrepreneur Franchise 500 record rank: 2

Began franchising: 1964

Complete models: 7,136

Preliminary franchise price: $525,500 to $2.96 million

A decade in the past, Taco Bell was ranked because the No. 45 enterprise on the Franchise 500. Immediately, it’s ranked second largely because of the development the corporate has seen within the interim. Even up to now two years, the fast-food enterprise has seen gross sales develop 6 p.c, to $11 billion, in 2018, and as of the third quarter of 2019, it was projected to enhance same-store gross sales (5 p.c) and total gross sales (8 p.c) once more.

The important thing to this development, as the latest challenge of the journal factors out, is the corporate’s deal with comfort, which features a POS system instantly built-in into the Grubhub app and 4,800 U.S. location providing supply.

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McDonald’s

Entrepreneur Franchise 500 record rank: 3

Began franchising: 1955

Complete models: 38,108

Preliminary franchise price: $1.3 million to $2.2 million

How is an organization like McDonald’s, with a staggering 38,000+ models already in place, presupposed to continue to grow? It seems that the corporate is betting on tech options and platforms that may optimize pace of service and make an already-fast place extra accessible than ever.

Whereas it’s too early to definitively inform whether or not McDonald’s $10 billion system-wide retailer redesign and funding in tech is successful, right here’s one thing to remember: McDonald’s is now filling 10 supply orders each second. 

Sonic Drive-In

Entrepreneur Franchise 500 record rank: 4

Began franchising: 1959

Complete models: 3,600

Preliminary franchise price: $1.2 million to $3.5 million

For a enterprise that’s been round for over 60 years, Sonic definitely appears targeted on the longer term. Not solely is it consistently updating and altering its menu, however Sonic’s deal with analytics (gathered by its new order-ahead app) helps it discover simply the best provide for each buyer. In 2018, it was acquired by Encourage Manufacturers for $2.3 billion, putting it inside the similar company household as Arby’s and Buffalo Wild Wings. This 12 months, the corporate is getting ready to ship a brand new model brand. Who is aware of the place Sonic will go subsequent, however you may ensure that it received’t keep nonetheless.

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The usStore

Entrepreneur Franchise 500 record rank: 5

Began franchising: 1980

Complete models: 5,166

Preliminary franchise price: $138,400 to $470,000

Whereas a six-figure price ticket is definitely an enormous funding, The usStore represents essentially the most inexpensive choice among the many prime 5 — even the highest ten — entries within the Franchise 500. And whereas a lot of the companies on this record are targeted on the longer term, UPS is simply as targeted on returns. 

“A few third of on-line purchases are returned,” The usStore president Tim Davis informed our journal. “That’s turn out to be a really enticing enterprise phase for us.” That doesn’t imply The usStore is a retrospective enterprise: It’s actively signed offers to be the official return courier for a number of main retailers, and one in every of its largest adjustments is clear earlier than you ever set foot inside the shop: Blue, white, and yellow have been added to the corporate’s conventional brown palette as The usStore considers a brand new retailer idea.

Ace {Hardware}

Entrepreneur Franchise 500 record rank: 6

Began franchising: 1976

Complete models: 5,312

Preliminary franchise price: $286,000 to $2.1 million

Ace {Hardware} ranks No. 6 on the Entrepreneur Franchise 500 record, however when you consider Ace, you must as a substitute take into account the quantity 16. Based on the corporate, 75 p.c of all U.S. properties are inside quarter-hour of an Ace retailer, and the retailer managed greater than $16 billion in gross sales final 12 months. Particularly, Ace’s on-line gross sales within the third quarter of 2019 rose 81 p.c after the corporate started providing clients the flexibility to have their orders delivered on the nearest retailer. 

Nonetheless, Ace continues to deal with its in-person customer support, too, which incorporates its acquisition of Denver-based franchise Handyman Issues.

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Planet Health

Entrepreneur Franchise 500 record rank: 7

Began franchising: 2003

Complete models: 1,859

Preliminary franchise price: $1.1 million to $4.2 million

It’s becoming {that a} health franchise ought to run so lean. “We don’t have swimming pools, we don’t have courses, we don’t have instructors to pay,” Planet Health CEO Chris Rondeau informed the journal. “We run our shops with 15 folks.”

This permits Planet Health to cost a primary membership of simply $10 a month, focused on the 80 p.c of Individuals who don’t have a health club membership. Thus far, the technique has labored, as Planet Health memberships have doubled over the previous 5 years, from 7 million to greater than 14 million.

Jersey Mike’s Subs

Entrepreneur Franchise 500 record rank: 8

Began franchising: 1987

Complete models: 1,592

Preliminary franchise price: $237,400 to $766,970

By the tip of 2020, Jersey Mike’s desires to have 2,000 eating places and $2 billion in system-wide gross sales. The important thing to the sub-sandwich franchise’s development has come from its present franchisees opening extra shops. “That’s telling you two issues,” Jersey Mike’s COO Mike Manzo informed Entrepreneur. “One, the franchisees are blissful, and two, they’re worthwhile sufficient to be investing again into their model.”

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Culver’s

Entrepreneur Franchise 500 record rank: 9

Began franchising: 1988

Complete models: 715

Preliminary franchise price: $1.97 million to $4.7 million

Culver’s key to success? Scrubbing flooring and choosing up rubbish within the car parking zone. Throughout a 16-week coaching program at Culver’s ButterBurger College in Wisconsin, franchisees are requested to just do that, proving nobody is above the soiled work. Thus far, this system appears to have been successful, leading to 175 new franchisees.

In fact, it may also simply be true that Culver’s merely makes an ideal burger and frozen custard, however laborious work by no means hurts.

Pizza Hut

Entrepreneur Franchise 500 record rank: 10

Began franchising: 1959

Complete models: 17,176

Preliminary franchise price: $357,000 to $2.2 million

Pizza Hut introduced in August that it deliberate to shut 500 of its U.S. dine-in eating places, however up to now three years, it’s additionally opened hundreds of worldwide franchises. So, even because the home market grows extra crowded than ever, worldwide enterprise has allowed the Hut to thrive. 

One other development alternative for Pizza Hut lies in soccer, as a result of its new partnerships with the NFL and EA Sports activities (the makers of the Madden NFL franchise). 

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7-Eleven

Entrepreneur Franchise 500 record rank: 11

Began franchising: 1964

Complete models: 66,689

Preliminary franchise price: $47,100 to $1.2 million

7-Eleven continues to develop at an enormous price, including 4,584 models up to now two years alone. The comfort retailer franchise, which was our top-rated enterprise in 2017, hasn’t ranked decrease than No. 11 up to now decade.

Kumon Math & Studying Facilities

Entrepreneur Franchise 500 record rank: 12

Began franchising: 1958

Complete models: 26,278

Preliminary franchise price: $73,400 to $154,800

The supplemental schooling franchise won’t be a family identify domestically, provided that solely round 6 p.c of its models are situated in america, however Kumon has been a mainstay of the Franchise 500, ending in our prime 20 rankings every of the final three years.

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Baskin-Robbins

Entrepreneur Franchise 500 record rank: 13

Began franchising: 1948

Complete models: 8,072

Preliminary franchise price: $93,600 to $401,800

Baskin-Robbins won’t have completed fairly as excessive as its Dunkin’ Manufacturers companion, however No. 13 ain’t too shabby. Even though the ice-cream franchise has been round because the Forties, Baskin-Robbins continues to develop, including 180 models over the previous two years.

Smoothie King

Entrepreneur Franchise 500 record rank: 14

Began franchising: 1988

Complete models: 1,073

Preliminary franchise price: $263,600 to $844,500

The Dallas-based Smoothie King franchise ranks atop our record of smoothie and juices franchises, marking a considerable uptick from final 12 months, when it ranked twenty second.

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Nice Clips

Entrepreneur Franchise 500 record rank: 15

Began franchising: 1983

Complete models: 4,371

Preliminary franchise price: $136,900 to $259,400

Nice Clips tops (no pun supposed) an inventory of aggressive hair care franchises, which incorporates companies like Supercuts and Sport Clips. The Minneapolis-based hair salon franchise is throughout America, with properly over 4,000 areas within the U.S.

Dairy Queen

Entrepreneur Franchise 500 record rank: 16

Began franchising: 1940

Complete models: 7,037

Preliminary franchise price: $1.1 million to $1.8 million

Final 12 months was the fortieth anniversary of the Franchise 500, and Dairy Queen was one in every of solely a handful of firms to rank in at the very least 95 p.c of our lists since 1979. Why has the Blizzard-maker been capable of get pleasure from such long-term success? A lot of it comes from the Berkshire Hathaway impressed motto: Shield the model for immediately, however develop it for tomorrow.

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Funds Blinds

Entrepreneur Franchise 500 record rank: 17

Began franchising: 1994

Complete models: 1,213

Preliminary franchise price: $110,300 to $234,400

Irvine, Calif.-based window coverings franchise Funds Blinds completed thirty fifth a 12 months in the past in our Franchise 500 rankings however took a giant step ahead in 2020. That’s due partly to the corporate’s rising variety of franchises, which has risen nearly 10 p.c up to now two years.

Tropical Smoothie Cafe

Entrepreneur Franchise 500 record rank: 18

Began franchising: 1997

Complete models: 784

Preliminary franchise price: $246,500 to $580,500

Tropical Smoothie Cafe is a youthful franchise than Smoothie King, however it’s proven comparable (or even perhaps stronger development) within the two-plus a long time because it started franchising. Previously two years alone, Tropical Smoothie Cafe has added 186 franchises, representing a 31 p.c improve in models.

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HomeVestors of America

Entrepreneur Franchise 500 record rank: 19

Began franchising: 1996

Complete models: 1,102

Preliminary franchise price: $56,000 to $426,300

Since 2014, HomeVestors of America has greater than doubled its variety of franchises throughout America, rising from 544 to 1,102 in simply six years. That kind of development helps it earn the highest spot in the actual property class for 2020.

Palm Seaside Tan

Entrepreneur Franchise 500 record rank: 20

Began franchising: 2001

Complete models: 541

Preliminary franchise price: $498,300 to $802,400

Rising all the way in which from No. 86 in 2019, Palm Seaside Tan takes the ultimate spot in our prime 20 rankings. The Coppell, Texas-based tanning franchise has opened 95 models since 2017, good for a 21 p.c improve.

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The highest 20 franchises of 2020

1. Dunkin’
2. Taco Bell
3. McDonald’s
4. Sonic Drive-In
5. The usStore
6. Ace {Hardware}
7. Planet Health
8. Jersey Mike’s Subs
9. Culver’s
10. Pizza Hut
11. 7-Eleven
12. Kumon Math & Studying Facilities
13. Baskin-Robbins
14. Smoothie King
15. Nice Clips 
16. Dairy Queen
17. Funds Blinds
18. Tropical Smoothie Cafe
19. HomeVestors of America
20. Palm Seaside Tan