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“I’ve Got a Little List…”
With apologies to Gilbert & Sullivan – the above quote is from their operetta, The Mikado – making a list of the top “this” or the best “that” is always a challenge.  Strong opinions abound, and any attempt to compile the most popular food franchises across the United States is equally dicey.  But after considerable research and a few opportunities to field-test the data – hey, writers get hungry, too – here is a fairly representative accounting of the best food franchises around.  Criteria include number of locations, total sales, brand recognition, food quality and variety, customer satisfaction, and a few intangibles.

Fast-Food Versus Not-So-Fast Food Franchises
There are two distinctly different kinds of restaurant franchises around.  The fast-food type denotes places that regularly do their food prep ahead of time, ask customers to order at a counter or window, and offer casual seating in an atmosphere that emphasizes speedy turnover.  Full-service restaurants generally cook everything to order, have a wait staff available to funnel orders to the kitchen, and design their dining areas to invite people to linger over their meals, and thereby order more or more expensive items.  An emerging hybrid, the casual fast food franchise, combines elements from both types, although the absence of a dedicated wait staff is the main distinguishing characteristic even for this type of eatery.  The restaurant franchises included in this article represent all three sectors.

Top 10 Food Franchises
1. Subway
Healthy food and fast service combine to make Subway a top restaurant franchise choice.  Owning a Subway franchise provides a great deal of flexibility, since the sandwich shop can occupy an area as small as 140 square feet.  The company has a history of financial strength and significant growth in all parts of the country.  The initial franchise fee is $15,000, and one’s total investment will range from $78,600 to $238,300.  The company charges an eight percent royalty on gross sales.

2. Dunkin’ Donuts
This company is the world’s leader in donut sales, and it also accounts for a huge share of the to-go coffee business wherever its restaurants are found.  The company has been around for a very long time – founded in 1950, it began franchising five years later – and continues to enjoy a very healthy balance sheet.  The initial franchise fee begins at $40,000, and one’s total investment will range from $255,700 to $1.1 million.  The company charges a 5.9 percent royalty on gross sales.

3. Golden Corral
This budget steakhouse franchise was found primarily in small cities across the south and southeast, but in a mid-1980s redesign move that brought about the Buffet & Grill – offering 150 hot or cold food items, a carving station, plus a ton of baked goods – the chain can now be found from coast to coast, and in cities large and small.  The buffet service has been upgraded to include cook-to-order steaks.  The initial franchise fee is $50,000, and one’s total investment will range from $2.1 million to $6.4 million.  The company charges a four percent royalty on gross sales.

4. McDonald’s
Anyone who doesn’t know the name “McDonald’s” has either been living in a cave for the past 50 years or else comes from outer space – and don’t put it past the geniuses of Oak Brook, Illinois, to exploit that market one of these days.  The initial franchise fee is $45,000, and one’s total investment will range from $506,000 to $1.6 million.  The company charges a minimum 12.5 percent royalty on gross sales.

5. Denny’s
This is one of the country’s leading full-service restaurant franchises, offering what is commonly known as family-style dining.  There are more than 1,500 Denny’s locations across the country, and most operate around the clock.  Whereas nearly half the restaurants were corporate-owned as recently as 2005, now only a third fall into that category.  The initial franchise fee is $40,000, and one’s total investment will range from just slightly under a million dollars to $1.8 million.  The company charges a four percent royalty on gross sales.

6. Long John Silver’s
Thanks to its corporate cousins – other food franchises under this ownership umbrella include KFC, Pizza Hut, and A&W – the seafood element of Yum! Brands ranks high in franchisee satisfaction.  In recent years, the management team has concentrated on expanding menu offerings to include chicken selections and salads, which has broadened its appeal.  The initial franchise fee begins at $20,000, and one’s total investment will range from $1.1 million to $1.7 million.  The company charges a five percent royalty on gross sales.

7. Famous Dave’s
The barbeque business is strong, and Famous Dave’s is well positioned to take advantage of that growth.  From its beginnings in Hayward, Wisconsin, in 1994, this full-service restaurant franchise – now based in suburban Minneapolis – is best known for its smoked barbecue ribs.  The initial franchise fee is $40,000, and one’s total investment will range from $970,000 to $4 million.  The company charges a five percent royalty on gross sales.

8. Hardee’s
Known mostly as a fast-food hamburger alternative to “you know who” there are more than 1,900 Hardee’s restaurants in 30-plus states.  The company has been around since 1961 and enjoys the same corporate ownership as another burger place on this list, Carl’s Jr.  The initial franchise fee is $25,000, and one’s total investment will range from $770,000 to $1.1 million.  The company charges a four percent royalty on gross sales.

9. Jimmy John’s Gourmet Sandwich Shops
Significant growth over the past few years has vaulted this sandwich emporium into the top ten.  One of the chain’s big selling points involves offering trimmed-down subs at bargain prices, perfect for the budget-conscious consumer.  The initial franchise fee begins at $20,000, and one’s total investment will range from $230,000 to $370,000.  The company charges a six percent royalty on gross sales.

10. Carl’s Jr.
Thanks to a clever national ad campaign and more than 3,000 locations nationwide, Carl’s Jr. is a rising star in the hamburger-fries-and-chicken-sandwich world.  The company continues to enjoy significant growth in sales despite downward pricing pressure from its competitors.  The initial franchise fee is $35,000, and one’s total investment will range from $780,000 to $1.2 million.  The company charges a four percent royalty on gross sales.

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