FRANdex Surpasses S&P and Russell Indexes
FRANdata, an independent research firm that tracks and analyzes franchises, launched FRANdex. In its report that appeared in PR News Wire, the FRANdex market capitalization index performed better than the S&P500 and the Russell 2000 indexes. Darrell Johnson, President and CEO of FRANdata, believes that the small businesses and franchises are often reliable indicators of where the economy is heading.
FRANdata has launched a new market index called FRANdex, which tracks the performance of the largest 50 U.S. publicly-traded companies that use the business format franchising model.
Using 1Q 2006 as a base, the FRANdex market capitalization index outperformed both the S&P 500 and the Russell 2000 indexes. On a quarter by quarter percentage change basis, the franchise companies in aggregate averaged 1/2-percent better than the Russell 2000 and 3/4-percent better than the S&P 500.
“As we weather this economy, it is a particularly interesting time to study the performance of franchise systems,” said Darrell Johnson, President and CEO of FRANdata. “Small business is often a leading indicator of recovery from economic downturns and the franchise systems that these 50 companies oversee are composed of individual small businesses. The performance of these publicly-traded companies – and the much larger set of privately-held franchise companies – may be telling us something about where we are headed.”
The 50 publicly-traded companies chosen for the index represent the top 50 companies by market capitalization with material activity in franchising. They collectively operate 115 franchise brands.
