Best Franchise Deals In 2012




QSR Magazine lists the 2012 best franchise deals in the fast food industry for the third year in a row.  Its criteria include sales-to-investment ratios, targeted market, sales trends and support from the parent company.  Some franchises in the list appear for a second or third time.  Among these are Subway, Popeyes, Bojangles’ and Saladworks.  Among the new honorees are Bruegger’s, Dickey’s Barbecue, Freddy’s Frozen Custard & Steakburgers, Moe’s Southwest Grill, Newk’s Express Café, and Smashburger.  Dickey’s is one for the fastest growing barbecue chains.  It offers a wide range of real estate options that range from the usual free-standing restaurant to shopping center stores to non-traditional locations such as airports, theme parts and convenience stores.  This makes it attractive to potential franchise owners who can capitalize on the current favorable real estate situation in the nation. Read more on the other names that make up the best franchise deals list.

These 10 brands stand out in a crowded franchise field.

For the third consecutive year, QSR is taking a stab at spotlighting the quick-service industry’s best franchise deals. From dozens of submissions, we’ve narrowed it down to 10 brands, taking into consideration favorable sales-to-investment ratios, unique market niches, positive sales trends, and formidable corporate support.

While this year’s list includes some repeat honorees—Subway, Popeyes, Bojangles’, and Saladworks appear for a second or third time—there’s also plenty of new blood entering the ranks.

Bruegger’s

Total U.S. Unit Count: 301 / 105 franchised

Franchise Fee: $30,000

Total Start-Up Costs: $359,600–$448,600

Royalty: 5% of gross sales

Renewal Fee: 25% of then-current franchise fee

Marketing Fee: 1.5% of gross sales

Since the menu features boiled, hearth-baked bagels, along with salads, soups, and sandwiches, Bruegger’s vice president of franchise development Chris Cheek says, sales are almost evenly distributed between breakfast and lunch. Though Bruegger’s does not have dinner hours, most franchisees relish the normal working hours that bring a quality of life rare in the restaurant industry.

Dickey’s Barbecue

Total U.S. Unit Count: 218 / 203 franchised

Franchise Fee: $15,000

Total Start-Up Costs: $63,000–$395,000

Royalty: 5% of net sales

Renewal Fee: $10,000

Marketing Fee: 4% of net sales

Dallas-based Dickey’s, which had its AUV surpass the $800,000 mark in 2011, remains among the nation’s fastest-growing barbecue chains.

Richard Phillips, Dickey’s vice president of development, says the family-run, third-generation business offers more than 70 years of proven restaurant expertise and high growth potential courtesy of an extensive training program at Dickey’s Barbecue University. It also features ongoing operations support and an energized marketing program that supports franchisee profitability, he says.

Phillips adds that the fast-casual barbecue brand offers myriad real estate options, ranging from traditional free-standing restaurants to shopping-center end caps and nontraditional units, including airports, theme parks, and convenience stores. Such flexibility allows prospective franchisees an opportunity to capitalize on favorable commercial real estate costs present throughout many U.S. markets. …

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