May 03, 2017 // Franchising.com // New York, NY - Franchise Grade®, the leading franchise market research firm in the franchise industry, has released its latest Facts and Figures report - Diamonds in the Rough: Emerging Brands with Potential.
Emerging franchises, although individually small, represent a large cross section of franchise brands. Franchise Grade analyzed a database of 2154 franchise systems and Item 20 data for the most recent 4-year period including 2015 and 2016 FDDs. The study found 974 franchise systems with less than 25 outlets represented 45% of all franchises and systems with 50 outlets or less represented 58% of all systems.
Commenting on the results of the report, Jeff Lefler, CEO and Founder of Franchise Grade states: “There are many excellent franchise opportunities that have a small number of locations but have the potential to deliver financial success. These franchise opportunities are diamonds in the Rough and can be mined by applying the right data analysis and followed by thorough due diligence.”
We found that in systems with 6 to 1000 outlets, franchise turnover is relatively stable at close to 10%. This interesting finding implies that from a franchisee turnover risk, there is not a significant difference between a franchise with 6 outlets to a franchise with 999 outlets opening the door for prospective franchisees to explore more regional or lesser known franchise investment opportunities.
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Franchise Grade is the Authority on Franchising. Using their proprietary Franchise Performance Index, they grade over 2,500 franchise systems for investment quality and identify healthy franchises. Every franchise system’s data is published on their website and prospective franchisees use their services to help them find the best investment opportunities. Only the top franchise systems can receive their Made the Grade (MTG)™ designation. Franchise systems using the MTG™ designation attract better candidates and sell more franchises.
Franchise Grade is the only source of comprehensive information about franchising and here’s why:
Franchise Grade is the source of franchise industry data for major media publications such as Bloomberg, Forbes, Inc. Magazine, Newsday, Time, Black Enterprise and The Wall Street Journal.
SOURCE Franchise Grade