Multi-Unit Franchisee Buyer's Guide 2014 by Franchise Update Media

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2014 ANNUAL MULTI-UNIT BUYER’S GUIDE TO FRANCHISE OPPORTUNITIES

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MULTI-UNIT

EDITOR’S NOTE

Buyer’s Guide

Multi-Unit

PARTNERS Franchisors & Multi-Unit Franchisees team up for growth

ulti-unit franchisees dominate today’s marketplace, controlling more total units than their single-unit counterparts—and an increasing number are operating multiple brands. This steady shift over the past decade led Franchise Update Media in 2004 to debut a new magazine—Multi-Unit Franchisee—to serve the growing generation of multi-unit operators, hungry for information to help them expand both their number of units and their number of brands. The first issue of the new magazine featured multi-brand franchisee John Prince, a former stockbroker whose franchise holdings then included Applebee’s, Aaron’s, Famous Dave’s, and a Hooters (in Salt Lake City, no less!). We also featured Jim Gendreau, who in 1981 sold 70 franchises in 9 months for Cost Cutters, and then became a serial franchisee for several brands, including operating 54 Cost Cutters of his own. We also told the story of Tom Larson, who had 20 lodging and restaurant units spread among 7 brands. We led the story with this: “Besides size, what makes these area developers different from other franchise owners? Why do they amass so many units and brands while others are content with one site, maybe two or three? How do they manage to manage

more brands than other people can handle units? Who are these guys?” Since then we’ve interviewed and profiled hundreds of “these guys” (and women); heard from experts on every facet of the business; and compiled lists and rankings that chronicle the fantastic growth in not only the numbers, but also in the professionalism of these operators and their organizations. Our annual Multi-Unit Franchising Conference also has grown over the years, in both the number and the quality of attendees, panelists, speakers, and exhibitors. Our online multi-unit business intelligence offerings have also expanded greatly with monthly newsletters and websites focused on multi-unit franchising—paralleling the growth and serving the growing needs of the expanding ranks of multi-unit and multibrand franchisee organizations. Franchisors, in tandem with the growing base of multi-unit operators, have recognized this change and responded by altering their sales approach, even their FDDs, to accommodate multiple-unit sales to experienced franchisees. The “threepack” has grown to the five-pack and 10-pack, and we’re hearing more about deals to develop upwards of 50 or 100 units in territories that grow larger each year. Many of these multi-unit opera-

tors are only too pleased to share what they know with each other through our in-depth magazine profiles, taking time out from their busy schedules to reflect on their success and offer their stories and insights to our readers. And up close and personal at our annual Multi-Unit Conference, they have shown a generosity of spirit through impromptu conversations and on-the-spot mentoring. This fourth annual edition of the Multi-Unit Buyer’s Guide to Franchise Opportunities is a resource for connecting expansion-minded multi-unit operators with like-minded franchisors. The following pages, filled with concrete information from franchisors, is intended to help you evaluate new opportunities to diversify your portfolio of franchise brands. The franchisors listed in these pages understand multi-unit franchising and are actively seeking experienced operators to help them penetrate new markets, quickly and effectively—and you’re looking for the best brands to help your franchisee organization grow. We hope this guide helps all involved. New and prosperous partnerships could be just a few pages away!

INSIDE

2014 ANNUAL

Buyer’s Guide MULTI-UNIT

Multi-Units On the Rise

What’s Driving Multi-Unit Growth

Statistics point to continuing multi-unit expansion

Multi-Mania 6 More franchisees than ever are adding new units

Spreading the Risk

Using multi-brand franchising to balance marketplace uncertainty

Brand Diversity

The growing allure of operating several concepts

CEO Therese Thilgen EXECUTIVE VP OPERATIONS Sue Logan EXECUTIVE VICE PRESIDENT Diane Phibbs VICE PRESIDENT BUSINESS DEVELOPMENT Barbara Yelmene BUSINESS DEVELOPMENT EXECUTIVES Jeff Katis, Judy Reichman EXECUTIVE EDITOR Kerry Pipes MANAGING EDITOR Eddy Goldberg CREATIVE DIRECTOR Samantha Calden DIRECTOR OF TECHNOLOGY Benjamin Foley WEB DEVELOPER Don Rush WEB PRODUCTION ASSISTANT Esther Foley TECHNOLOGY PRODUCTION ASSISTANT Juliana Foley MANAGER, SOCIAL MEDIA Cheryl Ryan

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Multi-Unit Franchising Conference 2014

10-15

Dominator DMA Rankings

16-17

Franchised Food Industry Stats By Frandata 18 Service Brands By the Numbers

MUFranchisee Resources

Multi-Unit Franchise Opportunities FOOD | RETAIL & SERVICES

CHAIRMAN Gary Gardner

21-80

SENIOR SALES, EVENT & OPERATIONS SUPPORT MANAGER Sharon Wilkinson SENIOR PROJECT MANAGER, MEDIA AND BUSINESS DEVELOPMENT Christa Pulling MARKETING ASSISTANT, SPEAKER LIAISON Katy Geller FRANCHISEE LIAISON, SUPPORT COORDINATOR Leticia Pascal CONTRIBUTING EDITORS William Edwards, Tom Epstein, Jacob Grosshandler Marc Kiekenapp, Jack Mackey, Steve Olson VIDEO EXECUTIVE PRODUCER Tim Gardner VIDEO PRODUCTION MANAGER,CHOREOGRAPHY Wes Deimling ADVERTISING AND EDITORIAL OFFICES Franchise Update Media 6489 Camden Avenue, Suite 204 San Jose, CA 95120 Telephone: 408-402-5681 | Fax: 408-402-5738

MULTI-UNIT

NEED TO KNOW

Buyer’s Guide

MUOs ON THE RISE

ulti-unit franchise operators are about to exceed the 55-mph speed limit: we can now officially say that they control 55% of all franchised units in the U.S. The 80/20 rule also applies: those 55% of all franchised units in the U.S. are controlled by 20% of all franchise unit operators. Both are records. The steady expansion of multi-unit dominance started in the late 1980s, so it is relatively recent in the context of the franchise business model. As recently as eight years ago, a majority of units were controlled by singleunit operators. The pace of change has been consistent and rather predictable, with a current rate of change of about 1% each year. There are two big drivers of this change. The first is that we raised a generation of franchisees with growth on their minds. They pushed through the older “buy a job” mentality with business plans aimed at multiunit expansion from the time they started in business. The second driver is cooperative franchisors, who went from being concerned by too much franchisee power to actively designing development programs around multi-unit models. Some of today’s largest franchisees are NPC International (1,158 units, mostly Pizza Hut); Target Corp. (1,147 units, mostly Pizza Hut Express); Heartland Automotive Service (529 units, mostly Jiffy Lube); and Harman Management Corp. (466 units, mostly QSR brands). As with these four franchisees, industries with the highest concentrations of multi-unit franchisees are in food. As the table shows, more than 82% of franchised QSR businesses are controlled by multi-unit franchisees, followed by restaurants (sit-down) at 77% and baked goods at 72%. Also of note is the rise of some non-food industry classifications, such as business-related, automotive, real estate, clothing retail, and education-related.

Top 10 Industries by MUF Control

% Multiple Units

QSR

82.4%

Restaurants (sit-down)

77.1%

Baked goods

72.1%

Beauty-related

66.4%

Frozen desserts

65.6%

Business-related

58.0%

Automotive

57.9%

Retail food

57.1%

Real estate

40.8%

Clothing & accessories

38.3%

Education-related

37.8%

IT’S A GOOD TIME TO BE A MULTI-UNIT OPERATOR! On the other end of the spectrum, less than 5% of franchised travel businesses are controlled by multi-unit franchisees, followed by computer products and services (5.7%) and photographic products and services (8.5%). Perhaps the most important point is that multiunit franchising has penetrated all industries where the franchise business model is found. There are some interesting geographic distinctions as well, creating a sort of North-South divide. Only four states have a majority of units in the hands of single-unit franchisees: Maryland (51%), Vermont (52%), New Jersey (56%), and Montana (57%). West Virginia, at 64%, has the highest concentration of units controlled by multi-unit franchisees. All other states with high concentrations of units in the hands of multi-unit franchisees are in the South, including: Arkansas, Mississippi, Kentucky, and Alabama, each with 62%.

ADDITIONAL FINDINGS

Here are some more statistics that shed light on the profile of multi-unit operators. •

Based on a large sampling of franchised businesses for which gender information was available, 28% were women-owned, and almost 40% of these were controlled by multi-unit franchisees.

•

O f the more than 40,000 multi-uni franchisees, 7% (about 2,700) operate units across several brands. While that doesn’t seem like a high percentage, it is growing quickly.

•

Of the roughly 450,000 total business format franchised units in the U.S., about 360,000 are represented in the sample. Compared with similar sample from a few years ago, it shows that not only do we have a growing concentration of units controlled by multi-unit operators, we have a growing concentration of units controlled by larger multi-unit operators.

Across all units, the average multi-unit franchisee owns 5 franchised locations, up from about 3.5 in 2007. This obvious skewing is the result of larger franchisees adding units at a faster relative pace than single-unit and smaller multi-unit operators. Although the economy has been bad for most companies, it has greatly assisted this trend toward concentration. In the 2008–2010 period, many single-unit operators either sold to larger operators or closed because of sales and financing pressures. While the sales levels have improved somewhat, in the past two years lenders have concentrated their lending at the lower end of the business risk spectrum, which, of course, is represented by none other than multi-unit operators. Despite the economic obstacles, it’s a good time to be a multi-unit operator. Darrell Johnson is CEO of FRANdata, an independent research company supplying information and analysis for the franchising sector since 1989. He can be reached at 703-740-4700 or djohnson@frandata.com.

MULTI-UNIT BUYER’S GUIDE 2014

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WE HELP FRANCHISORS IMPROVE AND GROW THEIR BUSINESS. Franchise Update Media has been a leader and innovator in providing valuable information and intelligence to franchisors, franchisees and franchise prospects for 25 years. Our purpose is to help franchisors, multi-unit franchisees, prospective franchisees and franchise service providers improve and grow profitable enterprises.

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MULTI-UNIT

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Buyer’s Guide

or the past few years you have heard me note that the majority of franchised units in the U.S. are owned by multi-unit operators. With more than 400,000 franchised units in the country, multi-unit operators control about 53 percent of those units. That’s impressive, and the percentage controlled by multi-unit operators is rising. This growth is a consequence of many brands focusing their development models on multi-unit development packages over single-unit programs. Today, FRANdata’s database shows the following breakdown of multi-unit operators (MUOs): These are the “known” franchisees in our database. While we try to keep up with the changes in each franchise system, our database does not include current data for all of today’s 3,500-plus brands. Therefore, each category understates the actual total. Since our database is more current with the larger brands and most of the smaller to medium-sized brands, any under-counting is primarily with the lessestablished brands, which are less likely to have many multi-unit operators. Statistically, we think we have more than 90 percent in each category. Using this 90 percent confidence level leads us to good representative estimated counts. Thus, in total, we believe there are more than 40,000 multi-unit operators in the U.S. With the number of units they control and the brands and sectors they operate in, that puts the combined annual revenue of multi-unit operators at more than $100

What’s DRIVING Multi-Unit GROWTH Stats point to continuing multi-unit expansion billion. There’s some serious operational, business, and political influence in that figure. We know the number of units they control is growing. But how is the number of multi-unit operators changing? For that, we can turn to our actual database counts. Assuming the actual-to-estimated changes are consistent, the actual counts should reflect about the same percentage change per category that our estimated numbers would show. In a three-year span, we’ve seen a 17 percent increase in entry-level multi-unit operators. That’s certainly consistent with our analysis of the development models franchise brands have been using over the past few years. To wit, entry-level multi-unit operators’ average annual growth of nearly 6 percent slightly exceeds the growth of franchised units generally, which has been expanding by about 5 percent per year. Much more interesting is the expansion of the larger categories of multi-unit operators. In the three-year span, those categories expanded about 25 percent. Even more interesting is the consistency with which each category expanded, ranging between 24 and 28 percent. Several obvious trends are affecting these outcomes. Multi-unit development models became a common form for expansion only in the past 20 years. In a life cycle sense, the data confirm that this model is still solidly in a growth mode. And although many franchisors have had to cancel contracts for development, especially for the second and third units within the contract

timelines, these data suggest that many second, third, and fourth units have been added in recent years. We also can’t ignore the impact that one of the “big two” small-business challenges—capital access—may have had on the growth statistics of multi-unit operators (the other, of course, is unit sales in a soft economy). Most banks have tightened their underwriting borrower qualification standards to include existing experience in the industry. This undoubtedly has led to more multi-unit operators compared with new single-unit operators. Finally, it should be noted that the growth of multi-unit operators is happening, in part, from the exiting of some single-unit operators. Transfers are on the rise across many industries. As I’ve noted previously, multi-unit operators increasingly are the buyers of existing units. It makes sense, since they are in the best position to evaluate the current operations and future potential of an existing unit. All of this suggests a continuing rise in influence of the multi-unit operator within franchising. Want further evidence? Franchise Update Media’s Multi-Unit Franchising Conference has set attendance records in the past several years. Looks like I’ll be seeing more of you in Las Vegas next year! Darrell Johnson is president and CEO of FRANdata, an independent research company supplying information and analysis for the franchising sector since 1989. He can be reached at 703-740-4700 or djohnson@frandata.com.

MULTI-UNIT BUYER’S GUIDE 2014

MULTI-UNIT

NEED TO KNOW

Buyer’s Guide

Multi-Mania F

ranchisees are an optimistic lot, expansion-minded, on the grow, always alert to new opportunities. And for them, multi-unit franchising represents one of today’s most attractive opportunities. Whether it involves increasing the number of units of their current brand or adding new brands to their holdings, the allure of multi-unit franchising is attracting the best and brightest franchisees in the business with increasing frequency. During the past 20 years, what began as a trickle has become one of the hottest vehicles for building a business rapidly and sustaining it through the years. FRANdata puts the number of multi-unit operators at more than 40,000, and they control more than 200,000 franchised units in the U.S. Successful multi-unit operators are a different breed than the single-unit franchisees they are displacing. Light years beyond the old “buying a job” mentality, they are skilled, professional business executives who have chosen franchising as their business model. They possess the skills, training, capital, infrastructure, and vision to keep adding units to their portfolio—without stressing their organization or their stomach. Even during the recent economic upheaval, savvy multi-unit franchisees continued to expand, especially in QSR and in services such as senior care, hair salons, massage, home maintenance, children’s activities, pet care, and more. After all, if

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MULTI-UNIT BUYER’S GUIDE 2014

MORE FRANCHISEES THAN EVER ARE ADDING NEW UNITS you can make money with one unit you can make even more with two, three, or more, right? Well, yes—but it takes a certain skill set, dedication, and infrastructure to make it all work effectively and efficiently. If you’re a regular reader of Multi-Unit Franchisee magazine, especially our ongoing profiles of successful multi-unit franchisees, you know exactly what we mean. All the right pieces must be in all the right places for a multi-unit franchise organization to succeed. If they’re not, the results can be disastrous for both franchisee and franchisor. At its best, however, multi-unit franchising allows franchisees (and franchisors) to increase their unit count, market penetration, and profitability more rapidly than a singleunit owner ever could. Multi-unit franchising already has altered the landscape of franchising in many ways, and will continue to do so. In recent years, private equity has “discovered” the profit potential of multiunit franchising, buying into multi-unit franchise organizations or acquiring them

outright—even doing the same with franchisors. And you know they appreciate the benefits and value of a diversified portfolio! According to franchise attorney Lane Fisher, “The emergence and growth of multi-unit franchisees is having a profound effect on franchising. It is rapidly changing prospective franchisee screening standards, the quality and substance of existing training and operational support, pressuring franchisors to make financial performance representations in their franchise disclosure documents, and affecting the way contracts are written by redefining ‘non-negotiable’ rights and deal breakers.” Fisher says that although multi-unit franchising is clearly a growing trend, particularly in food, it is not appropriate for all opportunities. “Sometimes it is a function of timing, as many new franchisors use various forms of multi-unit franchising to grow in early stages; or in other cases the unit economics simply will not support the additional layers of infrastructure to make the investment worthwhile; and in other cases multi-unit expansion is at odds with corporate philosophy, or the lack of

MULTI-UNIT

NEED TO KNOW

Buyer’s Guide expansion capital in a particular industry.” In other words, while multi-unit franchising is the way to go for any franchisee seriously looking to grow their organization, it’s not a slam-dunk, it’s not for everyone, and it’s far from easy. In fact it’s hard work, and fraught with failure. Successful multi-unit franchisees must do at least three things well: 1) You must be able to finance the additional locations/territories. That means deep pockets, or at least access to deep pockets. This often requires business partners and/or lenders who then have skin in the game and can influence the way you conduct your business. This is an important reality to keep in mind if you are an independent thinker and operator. 2) You must be able to form an organization with a management team and infrastructure to command your expanding empire. You may be able to remain handson with a handful of units, but when you reach 10 or more it’s no longer feasible for you to oversee day-to-day operations. At some point, you will need to bring in a team to handle everything from operations to finance to marketing and HR. You must learn to delegate and get out of the way. 3) Leadership is the final ingredient. You come to the game with vision, ambition, and inspiration. The challenge is communicating these crucial intangibles to your expanding organization and keeping them intact as they filter down to your unit managers and front-line staff through your in-house team. Necessary and achievable; never simple nor easy. If you have the background, experience, and drive to take on these challenges, then multi-unit franchising offers you a path to achieve your dreams. But you can’t do it alone. Rely on people, partners, and delegation—plus a large helping of your own passion, patience, dedication, and hard work—and yes, you can grow a multiunit empire.

SPREADING THE RISK Multi-brand franchising allows multi-unit operators to balance risk and ride out the uncertainties of the marketplace in many ways: ECONOMIC CYCLES. Oper-

CASH FLOW. A franchisee

ating brands in different industries can help minimize the ups and downs of an uncertain economy. Casual dining as a segment took a huge hit in the recession, while bargain-priced fast food continued to do fairly well; new car dealers suffered while automotive maintenance and repair businesses held their own and expanded.

with several units of a casual restaurant brand ventured into rental stores. Stocking a new rental store with merchandise is expensive, and monthly rental fees don’t cover the purchase price for 6, 12, or 18 months, tying up valuable cash in inventory. The daily cash flow from the restaurants was the perfect complement to keep the organization healthy until the rental stores started showing a profit— which they did handsomely in time.

SEASONAL CYCLES. A lawn care franchise in a four-season climate slows to a crawl in the winter. Ice cream, lemonade, and frozen desserts peak in the warm weather, so why not add soup and sandwiches as the weather cools? Adding a second business to balance out the seasons will keep employees engaged and the cash flowing in. New brands can be in related sectors (maid service, electrical, plumbing, home insulation), or in completely different areas (food, rental centers).

DAY PARTS. Breakfast, lunch, dinner, late night, and in-between. Whether it’s food or services, consumers and businesses have needs 24 hours a day. If your business makes the majority of its sales at breakfast and lunch, adding a brand that peaks in the afternoon and evening will make for a longer day, but also a stronger bottom line. SURPRISES. Fast food operators have been hit hard over the years by news of salmonella, E. coli, employee misbehavior, and other developments beyond their control. Having other brands in your portfolio can help you stay afloat until a negative situation is remedied and trust in the brand restored.

MULTI-UNIT BUYER’S GUIDE 2014

MULTI-UNIT

NEED TO KNOW

Buyer’s Guide

Brand

DIVERSITY

The growing allure of operating several concepts

ranchising continues to grow—not only in size, but in complexity— and in recent years, a huge part of that growth is attributable to multi-brand franchising. Makes sense. If following the system works for one successful brand, it will most likely work in another, then another—if you choose wisely. And if your unit economics are strong, more profit will flow your way with each passing year and additional brand. Diversification, a recommended strategy in designing an investment portfolio, is a big part of the thinking behind the growth in multi-brand franchising. As savvy investors know, no matter how good your ROI may be from a single holding, it’s not wise to put all your eggs in one basket. And as multi-unit franchisees seek new avenues for growth, an increasing number are adding second, third, and fourth brands to their portfolios.

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MULTI-UNIT BUYER’S GUIDE 2014

“There is a definite interest in growth through multi-concept operations,” says Darrell Johnson, president of FRANdata. “It’s continuing to expand and grow, and we see the trend continuing upward.” Franchise attorney Lane Fisher observes: “From a franchisor’s perspective, multi-unit franchising provides opportunities for accelerated growth; a vehicle to penetrate new markets; capitalize on certain market efficiencies; reduce the training, opening, and operational assistance typically provided to single-unit franchisees; and is a means to attract and reward productive franchisees.” One dynamic propelling multi-brand growth is the combination of 1) expansionminded franchisors seeking multi-unit operators successful with other brands with 2) successful multi-unit franchisees evaluating new concepts to diversify their organization. This alignment of interests has

been accompanied by a rise in the number of franchisors offering several concepts from under one corporate umbrella—usually limited to a single industry segment (fast food or home repair services, for example). For franchisors offering multiple brands, it means working with franchisee organizations they already know, saving countless hours of relationship-building, recruiting, investigation of finances, etc. For franchisees, adding a new brand from their current franchisor does the same. It means working with a known, trusted management team, saves time, helps them open units sooner, and also can mean discounts on franchise fees, sometimes even royalties for a limited time. Franchisors seeking new multi-unit partners are looking for a proven track record managing multiple units, relevant industry experience, positive cash flow, strong unit economics, and a solid management team

MULTI-UNIT

NEED TO KNOW

Buyer’s Guide and infrastructure. And, of course, signing multi-unit or area development deals also means dealing with fewer franchisees to sell more units. Franchisees seeking a new franchisor partner look for pretty much the same: a solid management team, strong unit economics, a well-known and respected brand name, and an opportunity to develop a territory over the long term. Taken alone or together, there are many reasons that inspire successful multi-unit franchisees to seek out additional brands:

GEOGRAPHY.

growing profits without expanding the home office staff. With a strong infrastructure in place, a multi-brand franchisee has a builtin advantage in building brand awareness in their territory and more easily, rapidly, and successfully penetrating their market with a new brand.

TRAINING AND RETENTION. With two or more brands, a franchisee can offer employees cross-training, flexibility,

“

sands of customer transactions. While the operating systems differ and must remain separate, sometimes elements of one can be applied to another, or to internal operations at the franchisee’s home office. The same holds true for marketing programs, recruiting methods, training, HR, and every other ingredient of franchising success. Keep them separate to maintain compliance, but look for areas to adapt good ideas across

Franchisors seeking new multi-unit partners are looking for a proven track record managing multiple units, relevant industry experience, positive cash flow, strong unit economics, and a solid management team and infrastructure.

Adding a new brand can be the perfect path to continued growth in their region for a singlebrand multi-unit operator or area developer who has built out their territory, or for a franchisee of a brand with no local opportunities to build more units—without having to travel to new or distant locales. Familiarity with the territory and the dynamics of their market, combined with local connections and a solid grasp of local real estate, developers, and zoning requirements is a real homecourt advantage. FINANCING. A successful track record with one franchise concept demonstrates your ability to lenders who can help you launch that next concept. Thriving multi-unit franchise operators typically have high net worth, extensive contacts, and access to financing to open successful units quickly. These are powerful assets to have. Your existing operation and the value of your real estate can help you acquire a second or third concept, without putting a stranglehold on your cash flow. INFRASTRUCTURE. Multi-unit franchisees with their own accounting, human resources, and other internal departments often have excess capacity. Adding brands can take advantage of that capacity,

promotions, and a clear growth path as their skill sets improve. This helps in attracting and retaining top talent as you build your organization, always a challenge in any business. And with better-trained employees, unit economics improve. ECONOMIES OF SCALE. Once an organization attains a certain size, several things get easier and, often, less expensive since you’re “buying in bulk”: marketing and advertising, supplier costs and services, administrative and back-office functions, and more. For example, one vendor may be able to service all your equipment and, as a result, offer you a more economical rate. CO-BRANDING. Locating two or more brands in a single location also allows behind-the-scenes efficiencies that can boost profits. Be careful to maintain compliance with each franchise agreement, as some concepts may not be combined legally or functionally. If it does work, co-branding and co-marketing can make more efficient use of your advertising dollar. SYNERGY. Each franchise brand has its own proprietary operating system perfected over many years and many thou-

”

your organization. Multi-brand franchising is a complex business. Done right, it offers great potential to the multi-unit franchisee seeking to diversify their investment, increase their profitability, and build a larger, stronger organization. One caveat: New brands should not (and in many franchise agreements, cannot) be in competition with your existing brands. Check with your franchisor, franchise agreement, and franchise attorney before you start shopping for a new brand.

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EXHIBITORS FRANCHISORS 9Round Franchising, LLC Aaron’s America’s Taco Shop Arby’s Restaurant Group Arooga’s Grille House & Sports Bar Batteries Plus Bulbs Bill.com Bojangles’ Restaurants, Inc. Boneheads Boston’s Restaurant & Sports Bar Brick House Tavern + Tap Brixx Wood Fired Pizza Broken Yolk Café Buddy’s Home Furnishings Buffalo Wings & Rings Burger & Beer Joint

Burger 21 Capriotti’s Sandwich Shop, Inc Captain D’s, LLC Charter Fitness Checkers & Rally’s Restaurants Chronic Tacos™ Church’s Chicken CKE Restaurants Holdings, Inc. CiCi’s Pizza Colors on Parade Corner Bakery Café Costa Vida Fresh Mexican Grill Country Kitchen International Cups Frozen Yogurt Dairy Queen Corporation Del Taco Denny’s, Inc.

Dessange International Inc., franchisor for Dessange Paris, Camille Albane Paris & Fantastic Sams Hair Salons Domino’s Pizza Dunkin’ Brands East Coast Wings & Grill Einstein Bros. Bagels El Pollo Loco Erbert & Gerbert’s Sandwich Shop FAZOLI’S RESTAURANT GROUP, INC. Firehouse Subs First Watch - The Daytime Cafe Forever Yogurt Fresh To Order (f2o) Fuddruckers Godfather’s Pizza, Inc. Golden Corral Buffet & Grill Grease Monkey International Ground Round Grill & Bar Gyu-Kaku Japanese BBQ Hilbers, Inc. Homewatch CareGivers HoneyBaked Ham and Café Hooters of America, LLC How Do You Roll? Huddle House Inc. Hungry Howie’s Pizza Hurricane Grill & Wings IceBorn, a franchise of Ice House America International Franchise Association Interstate All Battery Centers Jack in the Box® Jake’s Wayback Burgers Jersey Mike’s Subs Jimmy John’s Gourmet Sandwiches Johnny Rockets Kennedy’s All-American Barber Club Krispy Kreme la Madeleine LashDip Liberty Tax Service Malawi’s Pizza- Pizza with a Purpose Mama Fu’s Asian House Martinizing Dry Cleaning Massage Green Spa Massage Heights Corporate, LLC McAlister’s Deli Mcfaddens franchise inc. Meineke Car Care Centers, Inc. Modern Business Associates Moe’s Southwest Grill MOOYAH Burgers • Fries • Shakes NAPA AUTO PARTS Newk’s Eatery Old Chicago Pizza & Taproom OneClick Cleaners OrderUp Oxi Fresh Carpet Cleaning Pancheros Mexican Grill Papa John’s Papa Murphy’s Take ‘N’ Bake Pizza PET SUPPLIES PLUS Peterbrooke Chocolatier Pie Five Pizza Co. PIRTEK Pita Pit USA Popeyes Louisiana Kitchen ProSource Wholesale Quaker Steak & Lube® Raceway Rent-A-Center Retro Fitness Rock and Brews Franchising, LLC Rosati’s Pizza Roy Rogers Russo’s New York Pizzeria

Salsarita’s Franchising, LLC Save-A-Lot Food Stores Sears Hometown & Outlet Stores ShelfGenie Smoke’s Poutinerie Inc. Smoothie King Sport Clips SONIC Drive-In Steak ‘n Shake Sub Zero Ice Cream & Yogurt sweetFrog Premium Frozen Yogurt Taco John’s TAZIKI’S MEDITERRANEAN CAFÉ TCBY and Mrs. Fields The Brass Tap The Greene Turtle Sports Bar and Grille The Krystal Company The Little Gym International, Inc. Tide Dry Cleaners Togo’s Toppers Pizza Tropical Smoothie Café Uncle Maddio’s Pizza Joint Villa Enterprises Watermill Express Which Wich® Superior Sandwiches Wingstop Restaurants Wok Box Workout Anytime Yeh! Frozen Yogurt & Cafe Yogurt Zone Zaxby’s Franchising, Inc. ZIPS

SUPPLIERS ACA Marketplace Enrollment Solutions Avitus Group Balboa Capital BigStep Interactive Biz2Credit Bulk TV & Internet BullsEye Telecom Business Financial Services Clarity Voice Class Action Refund LLC Coalition Franchisee Association Comcast Business Corrigo Incorporated Direct Capital Franchise Group EnTouch Controls Entrepreneur Media, Inc. Envysion FisherZucker, LLC Franchise Business Review franchiseIQ FRANdata GetOne Rewards Global Cash Card Granite Telecommunications Harland Clarke - TranSource Hilbers, Inc. Hireology HKP Impression TV Infiniti HR JobApp Plus LED Source - Your LED Lighting Experts Mace Security International Manalto Inc. Mobivity MomentFeed National Satellite - DIRECTV for Business NEST International OnsiteRIS, Inc. Ooma

PATRIOT CREATIVE GROUP PeopleMatter rallio RBZ Retail Data Systems Retail Investment Group, LLC SIB Development & Consulting SurePayroll, Inc. The Business Exchange The Rawls Group - Business Succession Planning UAS United States Postal Service VendorSafe Technologies WEX rapid! PayCard York Alternative Risk Solutions

KEYNOTE SPEAKER SPONSOR Popeyes Louisiana Kitchen

MVP AWARD SPONSOR Comcast Business

FRANCHISEE-ONLY REGISTRATION & COCKTAIL RECEPTION SPONSORS Captain D’s, LLC Hungry Howie’s Pizza Smashburger

ADVISORY BOARD MEETING SPONSORS Bill.com Comcast Business franchiseIQ WEX rapid! PayCard

LANYARD SPONSOR FisherZucker, LLC

CONFERENCE GUIDE BOOK SPONSOR Colors on Parade

FRANCHISEE CONFERENCE TOTE BAG SPONSOR Jersey Mike’s Subs

FRANCHISOR CONFERENCE TOTE BAG SPONSOR Fish Consulting

HOSPITALITY SPONSORS Black Bear Diners Blaze Pizza LLC Brink’s Money COWBOY CHICKEN DISH Fishman Public Relations Franchise Payments Network Hot Dish Advertising Lockton Companies Miami Grill Orange Leaf Frozen Yogurt Sanderson & Associates The ORIGINAL Franchise PR Firm The Habit Burger Grill Tokyo Joe’s *At Press Time

AZIZ HASHIM 2014 Conference Chairman

President & CEO of National Restaurant Development and this year’s Conference Chair, has become a leading multi-state, multi-brand, and most recently, multinational business owner.

Fellow franchisees, I wish you all a happy New Year with much success in your endeavors in 2014. I am very excited to announce that this year’s conference is entitled “Planning for Growth.” With the economy slowly but surely rebounding, and capital access at its best point since pre-recession, there will be opportunities abound for franchisees to make measurable strides in their business. However, the best growth is intelligent growth and that comes with proper planning, measurable objectives and disciplined decision making. This year’s conference will feature the major aspects of successful growth through the lens of finance, marketing and talent management. We are planning sessions with content that is new and fresh with operators who have mastered these key areas of business. Further, we have introduced tracks so that the content is tailored to the specific needs of the operator in various stages of development. The Multi-Unit Franchising Conference is a unique event because it is highly influenced by its advisory board consisting of the very best multi-unit franchisees. The board works very hard to ensure that the conference delivers on its promise of being the best venue for franchisees to learn how to grow their business. I look forward to seeing you at the conference this year, it will be a not-to-miss event for all multi-unit franchisees!

TOP3

WHO

SHOULD

ATTEND

There’s something for everyone at this conference. Whether you are a franchisee, franchisor or supplier. • Multi-Unit Franchisees

1 – Franchisee Networking

• Multi-Concept Franchisees • Area Developers and Area Representatives

Engage with franchisees from a variety of industries,

• Chain Store Operators

discover new ideas, best practices, and develop

• Franchisors

relationships from business owners facing the

• Franchise Investors

same challenges.

• Real Estate Professionals • Finance Professionals

2 – Education and Motivation

Over 60 multi-unit and multi-concept franchisee speakers will share their tactics, insights, and practical advice in 30 solution-focused sessions. Topics include: • Selecting and Adding New Brands

The 2013 Multi-Unit Franchising Conference had record attendance of over 1,200 multi-unit franchisees, franchisors and franchise service providers.

• Consumer Marketing • Customer Service

Over 450 of the multi-unit franchisees

• Recruiting, Retaining, and Rewarding Employees

attending in 2013 represented:

• Financing • Benchmarking Unit Performance • Healthcare and Government Regulations

3 – New Opportunities

Over 250 franchises and business solution providers looking to partner with successful multi-unit operators just like you will fill the expo hall. Find the next great brand to add to your portfolio. Discover a service provider that can boost your bottom line.

• 47 U.S. States and Canada • 9,400 operating units • 180,000+ employees • $7.5 billion in annual systemwide revenue • 2 00+ brands including the following categories:

food (QSR, sit-down, fast-casual, yogurt, donuts, etc.), automotive, senior care, insurance, fitness, health, retail and more… • 38% have 2 or more brands • 4 7% operate in 2 or more states encompassing

more than 40 U.S. States and Canada • 70% are seeking additional brands • 50 companies came seeking specific brands

AGENDA

AT A GLANCE TUESDAY, April 22 | Pre-Conference 12:00PM TO 6:30PM

GOLF TOURNAMENT

6:30PM TO 8:00PM

MULTI-UNIT FRANCHISEE COCKTAIL RECEPTION & WELCOME (Franchisees Only)

WEDNESDAY, April 23 | Main Conference 7:30AM TO 7:30PM

REGISTRATION DESK OPEN

7:45AM TO 8:45AM

CONTINENTAL BREAKFAST

9:00AM TO 11:00AM

OPENING GENERAL SESSION Welcome: Therese Thilgen, CEO & Co-Founder, Franchise Update Media & Aziz Hashim, 2014 Multi-Unit Conference Chair, President & CEO, NRD Holdings, LLC Keynote:

John Maxwell, The Leadership Authority, Coach and Best-selling Author

11:00AM TO 11:30AM

COFFEE BREAK

11:30AM TO 12:30PM

GENERAL SESSION: People Planning for Growth: Attract, Recruit, Retain

12:30PM TO 2:00PM

MULTI-UNIT FRANCHISEE ONLY LUNCHEON – Outsourcing Discussion

12:30PM TO 2:00PM

GRAND LUNCHEON FOR FRANCHISORS & SUPPLIERS

GROWING TO 20 UNITS

GROWING FROM 20 – 30 UNITS

GROWING BEYOND 50 UNITS

2:00PM TO 3:15PM

Moving from Grandma’s Pocketbook to Lender Financing

Management to Leadership

The Right Capital Plans for Growth

3:30PM TO 4:45PM

Making the Commitment to Grow

Executing the Vision

People, The Essential Element for Growth

3:15PM TO 4:30PM

COCKTAIL RECEPTION IN EXPO HALL – EXHIBITS OPEN

THURSDAY, April 24 | Main Conference 7:30AM TO 7:30PM

REGISTRATION DESK OPEN

8:00AM

CONTINENTAL BREAKFAST

8:30AM TO 9:15AM

BUSINESS SOLUTION ROUNDTABLES

AGENDA

AT A GLANCE THURSDAY, April 24 | Main Conference 9:30AM TO 11:15AM

GENERAL SESSION: Opening Remarks: Aziz Hashim, 2014 Multi-Unit Conference Chair State of the Franchise Industry: Darrell Johnson, Franchise Economist & CEO, Frandata Keynote:

J .B. Bernstein, Legendary Sports Agent, Marketing Pioneer & inspiration for the upcoming Disney film, Million Dollar Arm

11:30AM TO 11:45AM

BREAK

11:45AM TO 12:15PM

GENERAL SESSION: Lobbying for Small Business & Franchisees

AWARDS & RECOGNITION

12:15PM TO 1:45PM

LUNCH IN EXHIBIT HALL

2:00PM TO 3:00PM

GENERAL SESSION: Healthcare Update – Healthcare 2014: Clarifying Misconceptions & the Latest on the ACA

3:15PM TO 4:00PM

CONCURRENT BUSINESS SESSIONS: Marketing Track

Financing & Operations Track

Marketing Math Secure Financing for Growth, Large Investments, Acquisitions, and Valuations

4:15PM TO 5:00PM

Growth Track

Understanding Your FDD & Franchise Agreement

Real Estate: Own It, Lease It, Manage It

Relationships Track

Growth Track

Exit Strategies & Succession Planning – includes selling units to plan for growth

Outsourcing: Why, What, When & How to Implement Workshop

CONCURRENT BREAKOUT SESSIONS: Marketing Track Own Your Market For Optimal Local Store Marketing

5:00PM TO 7:00PM

Relationships Track

Financing & Operations Track Early Growth Capital for Emerging Franchisees

COCKTAIL RECEPTION IN EXPO HALL – EXHIBITS OPEN

FRIDAY, April 25 | Main Conference 9:00AM TO 11:00AM

CLOSING SESSION: Develop Your Capital Growth Plan Workshop, For Franchisees and Franchisors

MULTI-UNIT

NEED TO KNOW

Buyer’s Guide

ENTIRE U.S.

D O M I N A T O R S

(50 states, Washington, D.C., Guam, Puerto Rico, and the Virgin Islands) MSA

LOS ANGELES, CA CHICAGO, IL ATLANTA, GA WASHINGTON, DC-MD-VA-WV HOUSTON, TX BOSTON, MA-NH PHILADELPHIA, PA-NJ DALLAS, TX NEW YORK, NY MINNEAPOLIS-SAINT PAUL, MN-WI PHOENIX-MESA, AZ DETROIT, MI TAMPA-SAINT PETERSBURG-CLEARWATER, FL SEATTLE-BELLEVUE-EVERETT, WA SAN DIEGO, CA ST LOUIS, MO-IL DENVER, CO WASHINGTON-BALTIMORE, DC-MD-VA-WV SAN FRANCISCO-OAKLAND-SAN JOSE, CA CHARLOTTE-GASTONIA-ROCK HILL, NC-SC ORLANDO, FL PORTLAND-SALEM, OR-WA KANSAS CITY, MO-KS LAS VEGAS, NV-AZ OAKLAND, CA NASSAU-SUFFOLK, NY INDIANAPOLIS, IN PITTSBURGH, PA SACRAMENTO, CA DALLAS-FORT WORTH, TX CLEVELAND-AKRON, OH NORFOLK-VIRGINIA BEACH-NEWPORT NEWS, VA-NC COLUMBUS, OH SAN ANTONIO, TX RALEIGH-DURHAM-CHAPEL HILL, NC NASHVILLE, TN AUSTIN-SAN MARCOS, TX CINCINNATI, OH-KY-IN MILWAUKEE-RACINE, WI NEWARK, NJ FORT LAUDERDALE, FL MIAMI, FL HARTFORD, CT JACKSONVILLE, FL RICHMOND-PETERSBURG, VA SALT LAKE CITY-OGDEN, UT GREENSBORO-WINSTON-SALEM-HIGH POINT, NC OKLAHOMA CITY, OK WEST PALM BEACH-BOCA RATON, FL GREENVILLE-SPARTANBURG-ANDERSON, SC BERGEN-PASSAIC, NJ

16 16

LARGEST FRANCHISEES BY STATE

FRANCHISED UNITS 15,921 9,448 6,896 6,487 5,655 5,688 5,184 5,071 4,981 4,847 4,793 4,699 3,538 3,435 3,434 3,341 3,290 3,195 3,186 2,941 2,763 2,698 2,628 2,614 2,608 2,605 2,577 2,513 2,479 2,477 2,389 2,340 2,314 2,313 2,312 2,232 2,205 2,153 2,113 2,024 2,020 1,952 1,803 1,798 1,784 1,768 1,610 1,610 1,557 1,542 1,493

MULTI-UNIT BUYER’S GUIDE 2014

STATE

LARGEST FRANCHISEE

ALABAMA ALASKA ARIZONA ARKANSAS CALIFORNIA COLORADO CONNECTICUT DELAWARE DISTRICT OF COLUMBIA FLORIDA GEORGIA HAWAII IDAHO ILLINOIS INDIANA IOWA KANSAS KENTUCKY LOUISIANA MAINE MARYLAND MASSACHUSETTS MICHIGAN MINNESOTA MISSISSIPPI MISSOURI MONTANA NEBRASKA NEVADA NEW HAMPSHIRE NEW JERSEY NEW MEXICO NEW YORK NORT CAROLINA NORTH DAKOTA OHIO OKLAHOMA OREGON

NPC INTERNATIONAL INC SUBWAY DEVELOPMENT OF ALASKA STINE ENTERPRISES INC.; UNION DISTRIBUTING CO K-MAC ENTERPRISES INC SOUTHERN CALIFORNIA PIZZA HARMAN MANAGEMENT CORP NORTHEAST FOODS LLC WENDOVER INC MARY LYNNE CARRAWAY HESS CORP NPC INTERNATIONAL INC BLUE PACIFIC LLC JACKSON FOOD STORES INC HEARTLAND FOOD CORP BR ASSOCIATES INC / SIDAL INC NPC INTERNATIONAL INC ROTTINGHAUS LLC FOURTEEN FOODS LLC; JAMES MICHAEL JONES STRATEGIC RESTAURANTS ACQUISITION COMPANY LLC CAPITAL PIZZA HUTS DAVCO RESTAURANTS INC HK ENTERPRISES; CONSTANTINE SCRAVANOS QUALITY DINING INC BORDER FOODS INC NPC INTERNATIONAL INC; CARLISLE CORP ROTTINGHAUS LLC KENT COLVIN HEARTLAND FOOD CORP CRAWFORD OIL INC CONSTANTINE SCRIVANOS BRIAD RESTAURANT GROUP LLC B & B CONSULTATNS GROUP CARROLS RESTAURANT GROUP STEPHEN WILLIAMS FARMERS UNION OIL CO CARROLS RESTAURANT GROUP WING FINANCIAL SERVICES LLC PETROCARD SYSTEMS INC

UNITS 102 24 70 93 223 67 33 14 12 211 86 31 60 178 116 64 170 53 129 26 108 58 83 150 72 85 24 40 82 41 56 68 116 176 19 85 112 36

MULTI-UNIT

NEED TO KNOW

Buyer’s Guide

D LARGEST O MFRANCHISEES I N A BYTSTATE, O continued R S STATE/TERR. STATE/TERR.

LARGEST FRANCHISEE

PENNSYLVANIA

JERRY BUS

LYLE SWANSON

RHODE ISLAND

JAN CO INC

SOUTH CAROLINA

APPLE GOLD INC

SOUTH DAKOTA

NPC INTERNATIONAL INC; WALSH

TENNESSEE

TRI STAR ENERGY LLC

122

TEXAS

MUY BRANDS LLC

218

UTAH

SIZZLING CAESARS LLC

VERMONT

PETER NAPOLI

VIRGINIA

BODDIE-NOELL ENTERPRISES INC

174

WASHINGTON

HEARTLAND AUTOMOTIVE SVC INC

100

WEST VIRGINIA

LITTLE GENERAL STORE INC

WISCONSIN

WISCONSIN HOSPITALITY GROUP LLC

WYOMING

KENT COLVIN

PUERTO RICO

UNITS

27 118 17

Market Dominators

he trend of multi-unit, multi-brand franchisee organizations becoming larger and more numerous each year is here to stay— and accelerating as operators who rode out the recession are expanding their portfolios by swallowing smaller fish, acquiring under-performing units, building new stores, and expanding into new brands and territories. The shakeout (and subsequent consolidation) of weaker operators, combined with improved operations by the stronger ones, is creating some extremely large franchisee organizations, as the rankings show. These multi-unit and multi-brand dominators are sophisticated, savvy, and experienced at managing organizations with hundreds of units, often spread across several states. They also understand that success is all about unit economics, one customer and one unit at a time They create jobs by the hundreds and thousands by hiring employees and doing business with local suppliers. And the best give back to their communities on a large scale, encouraging their employees to participate in supporting local organizations and charities. But no franchise dominator gets to the top without years of hard work, sacrifice, perseverance, and an unwavering desire to be the best at what they do. Congratulations to this year’s Dominators!

LARGEST FRANCHISEES BY REGION REGION UNITS EAST

NEW ENGLAND

(DC, DE, MD, NJ, NY, PA, WV) ADF COMPANIES CARROLS RESTAURANT GROUP TARGET CORP HMS HOST DAVCO RESTAURANTS INC

REGION UNITS

158 152 135 121 111

(CT, ME, MA, NH, RI, VT) CONSTANTINE SCRIVANOS NORTHEAST FOODS LLC HK ENTERPRISES CARLOS ANDRADE FLYNN RESTAURANT GROUP LLC

MIDWEST (IL, IN, MI, MN, OH, WI) HEARTLAND FOOD CORP TARGET CORP FLYNN RESTAURANT GROUP LLC CARROLS GROUP BORDER FOODS INC

302 206 199 181 154

111 101 74 68 65

B & B CONSULTANTS INC CRAWFORD OIL INC STINE ENTERPRISES INC UNION DISTRIBUTING COMPANY OF TUCSON LAS CAL CORP

118 82 70 70 65

WEST (AK, CA, HI, OR, WA) 319 239 213 135 113

SOUTH 92 89 84 66 60

SOUTHWEST (AZ, NV, NM)

PLAINS (IA, KS, MO, NE, ND, OK, SD) ROTTINGHAUS LLC NPC INTERNATIONAL INC UNITED STATES BEEF CORP FUGATE ENTERPRISES WING FINANCIAL SERVICES LLC

MOUNTAIN WEST (CO, ID, MT, UT, WY) HARMAN MANAGEMENT CORP NPC INTERNATIONAL INC SIZZLING PLATTER INC PALO ALTO INC JACKSON FOOD STORES INC

REGION UNITS

TARGET CORP SOUTHERN CALIFORNIA PIZZA HERMAN MANAGEMENT CORP HEARTLAND AUTOMOTIVE SVC INC JAMES GRESSETT

350 223 211 158 147

Source: FRANdata

(AL, AR, FL, GA, KY, IA, MS, NC, SC, TN, TX, VA) NPC INTERNATIONAL INC 788 TARGET CORP 356 BODDIE-NOELL ENTERPRISES INC 299 ARAMARK 288 233 CARROLS RESTAURANT GROUP

MULTI-UNIT BUYER’S GUIDE 2014

17 17 17

NEED TO KNOW

MULTI-UNIT

Buyer’s Guide

FRANCHISED FOOD

INDUSTRY STATS

s of 2012, there were about 1,300 franchised food brands operating in the U.S.; roughly two thirds started offering franchises in 2000 or later. In 2011, these food brands operated an estimated 176,700 franchised locations. The largest industry by number of

BY FRANDATA

From 2004 through 2011, brands in retail food grew the fastest, at a CAGR of 9%, followed by baked goods and sit-down restaurants, both at 8%. Interestingly, frozen dessert picked up growth again in 2011 after stagnating during the recession more than the other industries. This was driven by frozen yogurt concepts such as Menchie’s and Yogen Früz, which increased at a CAGR of 180% and 125%, respectively, from 2008 through 2011.

franchised units is QSR, which accounted for 72% of franchised units in 2011, followed by baked goods (9%) and retail food (8%). To estimate the growth rates in franchised food units, FRANdata created a sample of 488 brands for which consecutive data for 2004 through 2011 was available. In 2011, the sample operated 163,054 franchised locations, about 92% of the estimated

total. From 2004 through 2011, the number of franchised food locations in this sample increased at a compound annual growth rate (CAGR) of 5%. Before the recession, from 2004 through 2006, franchised food units increased at a CAGR of 10%. CAGR in this segment slowed to 4% from 2007 through 2009, and to 3% from 2009 through 2011.

18 18

MULTI-UNIT BUYER’S GUIDE 2014

In fact, when breaking up the 2004 through 2011 period into three chunks (2004–2006, 2007–2009, and 2009–2011), frozen dessert was the only food industry that managed a higher CAGR over the third phase than during the second phase.

Note: QSR is displayed as a secondary axis; the orange numbers to the right refer to QSR only.

MULTI-UNIT

NEED TO KNOW

Buyer’s Guide

SERVICE BRANDS BY THE

NUMBERS

SERVICESTATS BY FRANDATA

ach year we ask FRANdata for the numbers on franchised service brands, highlighting trends, growth/shrinkage, and brands on the move. Here’s what they found.

SERVICES BY THE UNIT – In 2000, more than 400 franchised

service brands were operating in the U.S. By the end of last year, that number had tripled to 1,246, with brands operating in 14 industries in almost 100 sectors. Between 2000 and 2012, the number of new service brands on the scene peaked at 94 in 2006, then declined back to levels seen at the start of the decade.

Our previous estimate of 2011 unit activity was too conservative. With confirmed data, we now know that the number of franchised units continued to increase every year between 2000 and 2010, before declining in 2011. Unit growth slowed to 3% in 2008, dropping from 7% the previous year. In 2010, the number of franchised units increased at even slower 2%, then dropped by an estimated 4% in 2011. SERVICES BY SECTOR – From 2000 through 2011, service brands increased their number of franchised units at a CAGR of 5%; decreasing to 3% for the more recent 2005 through 2011 period. Over the period ending in 2011, the computer repair and security sectors grew fastest, as measured by number of franchised units. The bath and bedding, pet-related, and business consulting sectors ranked among the ten fastest-growing services sectors in both periods.

WHO’S GROWING – As of last year, The Mutual Fund Store was the fastest-growing service brand on a unit growth percentage basis between 2000 and 2011, growing from a single franchised unit to 52, after peaking at 58 in 2008. Along with The Interface Financial Group, two financial services brands are in in the top ten.

However, neither of these brands was among the ten fastest-growing concepts from 2005 through 2011; in the past 6 years, child-related and pet-related service brands grew their franchised units at a faster pace.

When reviewing different growth periods through 2011 (from 2000, from 2005, and from 2009), it is interesting to note that a total of eight child-related brands made the top ten in each period, followed by five beauty-related brands. This was driven by children’s educational program concepts such as Drama Kids or The Learning Experience, and hair care brands such as Sola Salon Studios or Knockouts. SERVICES BY SIZE – In terms of franchised unit numbers, maintenance and business-related services are the largest service sector brands. As of 2011, Jan-Pro (9,010 units), Jani-King (8,948), and Jackson Hewitt Tax Services (5,222) led the pack. However, of the ten largest services brands, only three managed to grow franchised units between 2009 and 2011: Liberty Tax grew at a CAGR of 11%, followed by Great Clips at 5%, and H&R Block at 4%.

MULTI-UNIT BUYER’S GUIDE 2014

19 19 19

MULTI-UNIT

NEED TO KNOW

Buyer’s Guide

3 F RANCHISE OPPORTUNITIES Looking for your next franchise opportunity?

Have we got the tools for you! Find articles on companies, concepts, industries, trends, and profiles—and search our features. Find franchisors looking for multiunit franchisees, area reps, and area developers. Search by top opportunities, alphabetically, investment level, industry, state, and more! Search today at: www.franchising.com

3C ONFERENCES MUFC2014

Franchise Update Media’s annual Multi-Unit Franchising Conference is returning to Las Vegas once again. The event continues to set new records every year, and this one promises to do it again. Expect more than 1,200 franchisees, franchisors, and strategic partners this spring as Caesars Palace plays host to multi-unit franchising’s premier event. Mark your calendars for April 23–25 (and for the 22nd as well, if you’re planning to play golf). Learn more and Register today at: www.mufranchisee.com/2014

3O NLINE Community Growth

Check out our community-based website for multi-unit operators. It’s your exclusive look into the world of multi-unit franchising, your one-stop shop to find: • New brand opportunities • Networking opportunities • Online edition and archives

• Exclusive interviews • Operator profiles • Financing resources

www.franchising.com/multiunitfranchisees

3N EW ONLINE VIDEOS

EmpireBuilders.tv Expands

Great entrepreneurs build great organizations. They possess a knack for making smart business decisions, building great teams, and creating successful companies. But as we’ve learned from years of interviewing successful multi-unit franchisees, they’ve also struggled, doubted, and made more than a few mistakes—yet they’ve soldiered on, persevered, and ultimately come out on top. To provide a deeper sense of their journeys, insights, and personalities, we’re selecting franchisees from our most inspiring print interviews and creating a new series of online videos of these franchisee leaders—who we call Empire Builders. watch.franchising.com

MULTI-UNIT BUYER’S GUIDE 2014

3 ANNUAL RANKINGS

Check out our annual rankings of top franchisees and their multi-unit brands and find out “Who’s on first.” www.franchising.com/multiunitfranchisees/mu50.html www.franchising.com/multiunitfranchisees/mega99.html

PRESS OFFICE 3 “Don’t just survive, thrive!” Franchise Update Media’s 2014 Annual Franchise Development Report, and the best-selling book Grow to Greatness by Steve Olson offer invaluable tips for franchise sales success and unit growth in today’s economy. For ordering information visit: www.franchising.com/franchisors/afdr.html www.franchising.com/franchisors/growtogreatness.html

3QUICKLINK

For a one-click link to articles in this magazine and to past issues of Multi-Unit Franchisee magazine, visit

www.franchising.com/multiunitfranchisees

PLAYBOOK “ A lot of former NFL players are involved with different brands—they’re competitive by nature and are coachable. I tell them, ‘Just like the coach hands you a playbook, the franchisor will hand you a manual telling you what you need to do to be successful.’” — Don Davey, retired NFL left tackle, who now has 15 Firehouse Subs and 6 more under development

MULTI-UNIT BUYER’S GUIDE 2014

MULTI-UNIT

Buyer’s Guide

Multi-Unit Franchise Opportunities

FOOD

FOOD | RETAIL & SERVICES Bojangles Restaurants, Inc.

Interstate All Battery Center

Boston’s Restaurants & Sports Bar

Jack in The Box

Brick House Tavern & Tap

Jersey Mike’s

Brixx: Wood Fired Pizza

Johnny Rocket’s

Buffalo Wing & Rings

Krispy Kreme

Bullseye Telecom

Liberty Tax Service

Burger 21

Massage Heights Corporate, LLC

Capriotti’s Sandwich Shop, Inc.

McAlister’s Deli

Captain D’s, LLC

Moe’s Southwest Grill

Charter Fitness

MOOYAH Burgers

Papa John’s

CKE Restaurants: Carl’s Jr. and Hardee’s

Papa Murphy’s Take ‘N’ Bake Pizza

Corner Bakery Cafe

PATRIOT CREATIVE GROUP

Costa Vida Fresh Mexican Grill

Popeyes Lousiana Kitchen

Del Taco

Quaker Steak and Lube

Denny’s

Salsarita’s Franchising, LLC

Direct Capital Franchise Group

Save-A-Lot Food Stores

Dunkin’ Brands

Smashburger

East Coast Wings & Grill

Smoothie King

East of Chicago Pizza

Sonic Drive-In

El Pollo Loco

SweetFrog Premium Frozen Yogurt

Erbert & Gerbert’s Sandwich Shop

TCBY and Mrs. Fields

Firehouse Subs

The Brass Tap

Forever Yogurt

Togos

Fuddruckers

Topper’s Pizza

Golden Corral Buffet & Grill

Uncle Maddio’s Pizza Joint

Ground Round Grill & Bar

Watermill Express

HoneyBaked Ham & Café

WingStop Restaurants

Hungry Howie’s Pizza, Inc.

Zaxby’s Franchising, Inc.

Ice Born - a Franchise of Ice House America

Church’s Chicken ®

•

Fries • Shakes

MULTI-UNIT BUYER’S GUIDE 2014

MULTI-UNIT

Buyer’s Guide

FOOD

SITE LOCATION

Assistance Bojangles’ uses demographic and analytical tools to guide new market availability. Our real estate and construction team provide guidance and assistance from the first stages of site selection to the final construction phase.

OPPORTUNITY

Description Founded in 1977 in Charlotte, NC, Bojangles’ Restaurants, Inc. serves only the highest quality and most flavorful food to its loyal customers, with many of its proprietary menu items made from scratch. A special blend of seasonings gives the food its unique flavor, including Bojangles’ core menu selections of chicken marinated in Bojangles’ own seasonings, the original freshmade-from-scratch buttermilk biscuits that provide dozens of possible breakfast combinations, and Legendary Iced Tea™ steeped the old-fashioned way. Bojangles’ famous breakfast is served all day. Unique fixin’s like Bojangles’ Dirty Rice ®, Bojangles’ Cajun Pintos ®, Seasoned Fries made from skin-on potatoes, mac n’ cheese made with 3 cheeses, Bojangles’ Cajun Gravy ®, cole slaw, green beans and mashed potatoes provide a broad variety of unique and flavorful choices with lunch and dinner. Bojangles’ has almost 600 locations and $1 Billion in system sales in 10 states and Washington, DC, primarily in the Southeast.

Fast Franchise Facts Franchising Since: 1978 Multi-Unit Franchisee Operating Units: 55.56% Total Franchise Operating Units: 354 Company Operating Units: 230 Capital Investment: $357,000 - $553,750 Franchise Fee (per unit): $25,000 Royalty Fee (per unit): 4% Advertising Fee (per unit): 1% Earnings Claims: Yes Build-Out Options: Free Standing; also Non-Traditional locations, including Universities and Airports

#1 in Percent Unit Growth in the chicken segement, Technomic Top 500

Available Territories: Southeastern US

12 Best fast food franchises to own, Forbes

Contact

25 Franchise High Performers, across all industries, The Wall Street Journal

Paul Tripodes | Director Franchise Development (704) 940-8790 ptripodes@bojangles.com bojangles-franchise.com

Demographics Population (3-5 miles depending on market) residential 20,000 plus, trade & daytime 15,000. Growth rate 2-5%, Media Target Age 18-54, Income $46,000-66,000. Property would require minimum 44,000 sq/ft.

Rankings

MULTI-UNIT BUYER’S GUIDE 2014

5 Fast Food, Large Chain, Top Zagat 2012 survey 10 Franchise Opportunities, Top QSR Magazine Among Fastest Growing Private Companies, Inc Magazine 10 Growth Restaurant Top Chains, GE Capital

Qualifications Bojangles’ selectively partners and develops with those that meet specific financial and operational requirements in desired growth markets.

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Qualifications Prime markets are still available for entrepreneurs, restaurant professionals and multi-unit franchisees with financial capability, business experience and willingness to lead a restaurant team. A Boston’s franchisee candidate should have a minimum net worth of $1 million. Single-unit & Multi-unit development agreements available.

OPPORTUNITY

Description The Boston’s concept offers what many restaurant franchises don’t - two experiences under one roof - a casual dining restaurant and a sport-themed bar. Boston’s sports bars feature a sports themed atmosphere... vibrant, upscale and fun with multiple flat-screen TVs and games in a contemporary energized setting. Boston’s provides a wealth of restaurant development services and benefits that create real competitive advantages, including: real estate, construction, training, purchasing, operations, marketing & product development.

Demographics 50,000 population within 3 mile radius. Multi-family housing within 3 mile radius. Multiple hotels within 5 mile radius. Minimum 20,000 day population within 3 mile radius. Traffic counts in excess of 20,000 per day - intersection.

Fast Franchise Facts Franchising Since: 1998 Multi-Unit Franchisee Operating Units: 5 Total Franchise Operating Units: 41 Company Operating Units: 4 Capital Investment: $951,000 - $2,788,500 Franchise Fee (per unit): $50,000 Royalty Fee (per unit): 5% Advertising fee (per unit): 3% National 1% Local Earnings Claims: Yes Build-Out Options: Free standing, End cap, Conversions & Non-traditional Available Territories: U.S. and Mexico

SITE LOCATION

Assistance Our experts can assist and support you in identifying, evaluating and choosing sites. This process includes developing a demographic study to determine specific trade areas within the selected development territory.

Rankings & Awards #1 Casual Dining Restaurant Chain in Canada with more than 400 locations in North America.

Contact Steve Osler Director of Franchise Development (972) 484-9022 OslerS@Bostons.com bostons.com

MULTI-UNIT BUYER’S GUIDE 2014

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Demographics Brixx draws strong appeal with upper-middle & upper-income consumers seeking casual foods prepared with high quality ingredients and scratch made items. While family-friendly, Brixx enjoys 3 distinct day parts with late night business fueled by craft beer. Vegan and gluten-free options tap Brixx into powerful niche markets.

OPPORTUNITY

Description Founded in Charlotte, NC, in 1998, Brixx applies fine dining techniques to feel-good food – brick oven pizzas built on dough made from scratch daily, salads, pastas, sandwiches & wraps. The menu is complemented by an approachable selection of craft beers and wines by the glass. Embracing neighborhoods, strong quality of life for staff, uncomplicated kitchen prep and low food costs - 21% in 2013 - are all keys to success at Brixx.

Fast Franchise Facts Franchising Since: 2007 Multi-Unit Franchisee Operating Units: 52% Total Franchise Operating Units: 15 Company Operating Units: 10 Capital Investment: $570,000 - $950,000 Franchise Fee (per unit): $40,000 Royalty Fee (per unit): 5% Advertising Fee (per unit): 0.4% Build-Out Options: Inline, Free Standing Available Territories: All states in the continental US

Contact Neil Newcomb | President (888) 724-7188 franchise@ brixxpizza.com brixxfranchise.com

Qualifications The ideal Brixx owner has operational or ownership experience in the full-service restaurant industry with $2 million in net worth and liquidity of $200,000. Prospective owners should be prepared to build an organization committed to customer service and excellence of food preparation and quality.

SITE LOCATION

Assistance Brixx works best in AAA real estate lifestyle centers and mixed-use developments near upper-middle and upper-income neighborhoods. Nearby schools and hospitals are a plus. Franchisees get guidance on site selection and syncing the architectural design of our storefronts to location. * Average food costs based on 10 company-owned units in 2013.

Rankings Named Top 10 Full-Service Franchise Deal by RMGT Magazine in 2012 Named “Concept to Watch” by Technomic in 2013

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Demographics Current DMA’s with open BW&R locations. Developments with national retail anchors, big box brands, cinemas and other customer draws. Population within a trade area exceeding 40,000. Target customers 25-54 and household income minimums of $35,000. 20,000 VPD and great visibility.

OPPORTUNITY

Description Unlike most places serving up wings and sports, Buffalo Wings & Rings is a fun, inviting casual dining restaurant that takes food seriously. Our always fresh, never frozen menu offers signature wings, big and bold burgers, fresh salads and specialty sandwiches. Our vibrant, upbeat environment, 40 + HD TV’s, and kitchen built for efficiency transforms Buffalo Wings & Rings from just another wing joint to a high-volume operation filled with families and tables of regulars. SITE LOCATION

Assistance BW&R provides our site criteria and a proprietary site rating form based on data from our top preforming locations, industry trends and input from industry professionals. We have a hands-on approach and assistance will be provided through the entire process.

Fast Franchise Facts Franchising Since: 2005 founded 1984 Multi-Unit Franchisee Operating Units: 25% Total Franchise Operating Units: 45 Company Operating Units: 2 Capital Investment: $1 - 1.5 Million Franchise Fee (per unit): $35,000 Royalty Fee (per unit): 5% Advertising Fee (per unit): 1% - 3% Earnings Claims: Yes Build-Out Options: Free standing, end-cap and conversions Available Territories: Nationwide with a focus on DMA’s with current BW&R locations.

Contact Dan Doulen | Director of Franchise Development (513) 831-WING | (513) 680-2247 cell ddoulen@buffalo-wing.com buffalowingsandrings.com

Qualifications Business professionals with a casual dining background and/or comparable service industry experience. Must share our passion for entertaining, food and customer service. Qualified individuals will have a minimum net worth of $1,000,000 and liquid capital of $400,000 for single unit development.

Rankings BW&R has been ranked several years in Entrepreneur Magazine’s annual Franchise 500 listing. We were also ranked #1 fastest growing chain in Restaurant Business Magazine’s Future 50.

MULTI-UNIT BUYER’S GUIDE 2014

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Make real-time account changes, manage service requests and obtain in-depth business insight with key reports available online 24/7

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Rankings • T op 100 Movers & Shakers and #1 for Top 10 Menu Innovations of 2013 by FastCasual.com

OPPORTUNITY

Description Unique, modern, fresh and mouth-watering. These words don’t even begin to describe it. Burger 21® is a new fastcasual restaurant featuring 21 chef-inspired burger creations, crafted signature shakes, fresh salads and so much more. Our 10 hand-crafted Certfied Angus Beef ® burgers made from fresh chuck, 10 unique non-beef alternatives made with sushi-grade Ahi Tuna, shrimp, turkey, chicken, black beans, and one feature burger every month provide a taste experience beyond the better burger for all ages.

• One of 10 Hot New Restaurant Chains from Established Brands by Forbes • ” Best Burger” by Best of Yelp Tampa Bay, 2012 • T op 50 Restaurants in the Tampa Bay by Tampa Bay Times

Fast Franchise Facts Franchising Since: 2011 Total Franchise Operating Units: 8 Company Operating Units: 4 Capital Investment: $416,133 - $833,895 Franchise Fee (per unit): $40,000

Qualifications

Royalty Fee (per unit): 5%

Franchise opportunities are available as single and multiunit franchise development agreements. Our Discovery Process will help you learn more about the Burger 21 opportunity and the support we provide from over 30 years of franchising experience with The Melting Pot Restaurants, Inc. Minimum financial requirements per unit are $200,000 liquid capital to invest and a minimum net worth of $500,000.

Earnings Claims: Yes

Advertising Fee (per unit): 0.75% plus 3% spent locally Build-Out Options: End-caps, free standing and inline Available Territories: Continental US – call for details

Demographics

Contact

Burger 21 restaurants are an average of 2,200 to 3,000 square feet situated in high visibility locations. We are targeting lunch and dinner fast-casual restaurant hubs in high traffic areas.

Ashley Pollard Franchise Development Manager

MULTI-UNIT BUYER’S GUIDE 2014

(813) 425-6252 apollard@burger21.com burger21franchise.com

SITE LOCATION

Assistance Our Vice President of Real Estate helps franchisees throughout the site selection and lease negotiation process, while our experienced construction and design team will provide you with customized assistance from the first stages of development through the final construction phase.

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Demographics The ideal shop is 1500-2000 square feet with 25 feet of frontage. 100,000 total population within 3 miles with 75,000 daytime population. Upper middle to upper income. Great parking, visibility, and traffic along with mix of national tenants.

OPPORTUNITY

Description Anyone can slice meat, put it on bread and call it a sandwich. Our unique menu features award-winning cold subs, grilled subs, cheese steaks, vegetarian, catering, and more. Since 1976 we’ve done it differently. We have set ourselves apart by focusing on the quality of food. We roast whole, all-natural turkeys and premium roast beef in-house to make award-winning subs. We do not want to be the biggest, but we are driven to be the best. For those unwilling to settle, now is the time to join Capriotti’s family. SITE LOCATION

Assistance At Capriotti’s we have developed extensive site modeling and real estate analysis tools. As a franchisee you would work in conjunction with our Director of Real Estate and a local broker through the site selection process.

Rankings Fast Franchise Facts Franchising Since: 1991

Our ‘CAPAddicts’ rave about our food! We have received countless awards for our sandwiches, and Entrepreneur Magazine ranked us #293 out of 500 in 2014.

Multi-Unit Franchisee Operating Units: 74% Total Franchise: 94 Company Operating Units: 9 Capital Investment: $197,000 - $427,500 Franchise Fee (per unit): $30,000 - $40,000 Royalty Fee (per unit): 6% - 7% Advertising Fee (per unit): 1% - 3% Earnings Claims: Yes Build-Out Options: Inline, Freestanding, Non-Traditional Available Territories: Contiguous 48 States

Contact Bruce Evans | VP of Development (702) 736-3878 bruce.evans@capriottis.com capriottis.com

Qualifications Capriotti’s is seeking highly qualified and experienced franchisees, unwilling to settle. Candidates should have the accumen to develop at least three restaurants and have a net worth of $900K and liquid capital of $525K.

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Rankings & Awards • # 1 seafood chain in the QSR 50 by AUV • 1 2th largest AUV growth out of the nation’s top 100 chains • T op 50 Multi-Unit Franchise in Franchise Business Review

OPPORTUNITY

Description Since opening in 1969, we’ve never stopped innovating and it has paid off. Today, with over 520 restaurants, we’re the #1 seafood chain in the QSR 50, ranked by AUV. Our high quality seafood, warm hospitality, and commitment to innovation have helped us get there. In 2012 Captain D’s had the 12th largest AUV growth out of the nation’s top 100 chains. We’re entering our third year of system-wide same store sales growth. SITE LOCATION

Assistance We will work with you to find the right location for your seafood restaurant. You’ll have the full support of our real estate team and site selection tools to give you confidence in choosing the best location.

• Ranked by Entrepreneur Magazine as a top franchise in the Franchise 500®

Fast Franchise Facts Franchising Since: 1969 Multi-Unit Franchisee Operating Units: 57% Total Franchise Operating Units: 242 Company Operating Units: 279 Capital Investment: $900,000 - $1,100,000 Franchise Fee (per unit): $25,000 Royalty Fee (per unit): 4.5% Advertising Fee (per unit): 1.1% Earnings Claims: Yes Build-Out Options: Free standing, in-line, malls, airports, co-branded Available Territories: United States

MULTI-UNIT BUYER’S GUIDE 2014

Qualifications We are searching for multi-unit food service and retail operators with a history of business success. Our franchisees must be committed to restaurant operation, not merely developing real estate. Minimum qualifications: $1 million collective net worth, with liquid assets greater than $350,000.

Contact Mark Levis Senior Director, Franchise Sales (615) 231-2006 Mark_Levis@captainds.com CaptainDsFranchising.com (800) 550-5877

RETAIL & SERVICES

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Buyer’s Guide

OPPORTUNITY

Description

Fast Franchise Facts

Qualifications

Franchising Since: 2010

Financial requirements are $300,000 liquid and $750,000 net worth. The franchise fee per unit is $22,000-$30,000. We would like to grow with multi-unit developers yet we will be opportunistic and review each situation.

Multi-Unit Franchisee Operating Units: 0 Total Franchise Operating Units: 0

Don’t sweat the details. We already have.

Capital Investment: $578,208 - $1,204,302

Charter Fitness is looking to grow with successful franchisees throughout the USA. Our core competence and strength can be attributed to the fact that we own and operate over 40 locations.

National Advertising Fee (per unit): 2%

SITE LOCATION

Assistance We’ll provide expertise in the following areas: • Training • Marketing • Site Selection • Trade Area Identification

Franchise Fee (per unit): $22,000 - $30,000 Local Marketing Spend: 5% Earnings Claims: Yes Real Estate & Leasehold Improvements: $250,000 - $650,000 Available Territories: See demographics

Demographics

Contact

Ohio, Pennsylvania, Michigan, Indiana, Wisconsin, Texas and Florida are target markets for new growth as we onboard new franchisees. A minimum population of 60,000 within a trade area.

Michael Vogel SVP Development (708) 465-9113 mvogel@charterfitness.com charterfitness.com

Don’t Sweat the DetailS. we alreaDy have. • initial investment: $578,208.00 – $1,204,302.00 • net Pro Forma eBitDa: $261,868.91* • net Pro Forma eBitDa expressed as a Percent of Sales: 30.52%* • average top line Sales: $857,917.39* When it comes to choosing a franchise, experience can make all the difference. Our leadership team knows what it takes to successfully open and run a health club – they’ve done it over 40 times (and counting)! As a franchisee, you’ll receive all the tools and resources you need to grow your business as we continue to grow ours. This advertisement does not constitute a franchise offering or an offer to sell a franchise. A franchise offering can be made by us only in a state if we are first registered, excluded, exempted or otherwise qualified to offer franchises in that state, and only if we provide you with an appropriate franchise disclosure document. *The above figures are set forth in Item 19 of our 2013 Franchise Disclosure Document.

Franchise-Ad-2014.indd 1

MULTI-UNIT BUYER’S GUIDE 2014

2/10/14 10:07 AM

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Demographics 30,000 - 40,000 population in 2 mile radius (urban and suburban) and 15,000 in trade area for rural areas (small town). We prefer sites with high visibility, full movement access, maximum signage, on high traffic roads, signalized corner, drive-through allowed. Mall/out parcels and offhighway locations.

OPPORTUNITY

Description Founded in San Antonio, TX in 1952 by George W. Church, Church’s Chicken ® is one of the largest quick service restaurant chicken chains in the world. Church’s® specializes in Original and Spicy Chicken freshly prepared in small batches throughout the day that are hand-battered and doublebreaded, Tender Strips®, sandwiches, honey-butter biscuits made from scratch and freshly baked, and classic, home-style sides all for a great value. Church’s Chicken® is located in 25 countries.

Rankings & Awards One of the 50 Top Franchises

Fast Franchise Facts Franchising Since: 1967 Multi-Unit Franchising Operating Units: 54.7% Total Franchise Operating Units: 1400+ Company Operating Units: 260 Capital Investment: $424,300 - $1,251,600 (not including real estate) Franchise Fee (per unit): $15,000 franchise fee per restaurant, $10,000 development fee per restaurant. 3 unit requirement. Royalty Fee (per unit): 5% Advertising fee (per unit): 5% Earnings Claims: Yes Build-Out Options: Free-standing, Inline, Travel Plaza,

for Minorities as selected by

Conversions, Airports, Colleges/Universities

World Franchising Network

Available Territories: CA,UT,OK,IL,GA,NC,VA,NJ,WA,NV,

from 2008 - 2013.

AZ,AL,FL,IN,LA,MI,MS,NY,OH,PA,SC,TN,MO,NM,NY

Qualifications Church’s Chicken® is seeking new franchisees with a minimum of five years of current restaurant operations experience, or a business partner with equivalent experience, who are willing to grow with a proven brand. Our financial requirements consist of a minimum of $650,000 liquid capital to invest and $1.5 million in net worth. SITE LOCATION

Assistance Church’s® franchisees are supported by a Real Estate Manager as well as our Architecture and Engineering group to guide them through the site selection and development process.

Contact Jodi Fraser Franchise Sales Manager (770) 350-3876 jfraser@churchs.com churchs.com

MULTI-UNIT BUYER’S GUIDE 2014

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Assistance CKE provides franchisees with the development tools they need to grow. We assist with site selection, restaurant design, equipment ordering, construction and training. In addition, we offer a flexible building prototype designed to manage up-front restaurant costs.

OPPORTUNITY

Description At Carl’s Jr.® and Hardee’s®, banners of CKE Restaurants Holdings, Inc., our next success story is you. We have built a reputation as the ultimate destination for burger enthusiasts who crave bigger, better burgers. Our best-inclass menu and innovative menu strategy is focused on developing premium, sit-down restaurant-quality menu items that offer the convenience and value of fast food, clearly setting us apart from the competition. In addition, our marketing strategy has always been as focused as our business strategy. Through edgy, irreverent advertising, Carl’s Jr. and Hardee’s have become two of the strongest and most recognized banners in the industry. Our commitment to serving high-quality, great tasting products is rivaled only by our commitment to our franchisees. At CKE, franchisees are our top priority and we run the business so our franchisees can be successful.

Rankings • B oth Carl’s Jr. and Hardee’s rank among the top 3 hamburger brands in Entrepreneur Magazine’s 2013 Franchise 500

Fast Franchise Facts* Franchising Since: Carl’s Jr. founded 1941 | Hardee’s founded 1961 *Multi-Unit

Franchisee Operating Units: Carl’s Jr./Hardee’s: 97.8% of stores, 71.1% of Franchisees

• H ardee’s named a 2012 Top 40 Food Franchise by Franchise Business Review

*Total Franchise Operating Units: Carl’s Jr.: 702 | Hardee’s: 1,270

Qualifications

*Company

CKE Restaurants is seeking exceptional franchise candidates who have experience operating multiple restaurant and/or hospitality locations and the ability to acquire prime commercial real estate. We require our candidates to have the following financial resources; a minimum of $300,000 in liquid assets and a minimum net worth of $1,000,000 per unit developed, with a minimum 3-store commitment.

Operating Units: Carl’s Jr.: 437 | Hardee’s: 457

Capital Investment: Carl’s Jr.: $1.1 million+ | Hardee’s: $1.1 million+ Franchise Fee (per unit): $35,000 with a reduction for additional units Royalty Fee (per unit): 4% Advertising fee (per unit): Carl’s Jr. Up to 7% | Hardee’s 5% Earnings Claims: Yes Build-Out Options: Free standing with drive-thru, end-cap with drive-thru, airport & mall locations, colleges & universities, sports stadiums & arenas, build-to-suit opportunities Available Territories: Carl’s Jr.: Western U.S. & International; Hardee’s: Midwestern, Southern & Eastern U.S. *As of 3/7/14

Contact Michael D’Arezzo VP Franchise Sales, North America (805) 745-7842 mdarezzo@ckr.com John Mayes Director, Domestic Franchise Development, Hardees (314) 259-6285 jmayes@ckr.com ckefranchise.com

MULTI-UNIT BUYER’S GUIDE 2014

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Qualifications

OPPORTUNITY

Description Since 1991, Corner Bakery Cafe has emerged as a recognized leader in fast-casual dining. Thanks to an innovative menu, a neighborhood approach to development and exceptional unit-level economics, Corner Bakery Cafe franchises are attracting the industry’s most sophisticated, multi-unit restaurant operators looking for opportunities in the fastest growing segment of the restaurant industry. Offering dine-in, to-go and best-in-class catering service, Corner Bakery Cafe delivers a premier bakery cafe experience in the heart of neighborhoods everywhere. SITE LOCATION

Assistance Benefit from our success. Real estate, design and construction support includes: market planning, site evaluation, development orientation, project management support, prototypical documents, complete equipment specifications, design support, construction document review and approval, construction review and site visits, and pre-opening support.

Fast Franchise Facts Franchising Since: 2006, founded 1991 Multi-Unit Franchisee Operating Units: 32% Total Franchise Operating Units: 52 (as of 2/3/14) Company Operating Units: 110

Capital Investment: $854,000 - $2,375,000 Franchise Fee (per unit): Total $35,000 (Development Fee = $10,000 + Franchise Fee = $25,000) Royalty Fee (per unit): 5% Advertising Fee (per unit): .75% Earnings Claims: No Build-Out Options: Inline, free standing, malls, urban, office buildings, airports, train stations, and other non-traditional venues Available Territories: AL, ID, IN, IO, KY, ME, MI, MN, MO, MT, NB, NV, NH, NM, NC, NE, OH, OR, SC, SD, TN, VT, WA, WV, WY Limited in: AZ, AR, DE, FL, GA, IL, KS, LS, MD, MA, NY, PA, TX

Contact Gregg Koffler VP, Franchise Sales (888) 732-3929 Franchising@ CornerBakeryCafe.com CornerBakeryCafe.com/ Franchise-Information

(as of 2/3/14)

MULTI-UNIT BUYER’S GUIDE 2014

Here is what we’re looking for in our franchisees: $3 million net worth, $1.5 million liquidity, interest in developing minimum of five cafes in a market, relevant multi-unit restaurant/ retail experience in market to be developed, demonstrated real estate expertise in market, existing infrastructure in place, strong cultural fit, history of community involvement, and best-in-class operators within your current system.

Rankings & Awards Largest Revenue Increase (+13.6%) and Largest Growth % in Number of U.S. Units (13.95%) over last year (NRN Top 200: Bakery-Cafe 7/22/13); Ranked Highest by Consumers in Cleanliness (NRN Consumer Picks: Bakery-Cafe 3/25/13)

Demographics 3,500 to 4,500 square feet, high exposure end caps in shopping centers with strong lunchtime crowd, easy access for “convenience-driven” guests, abundant parking adjacent to the restaurant, outdoor patio seating area adjacent to the restaurant – 20 to 50 seats desirable, close proximity to white collar employment centers.

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Description At Del Taco, all menu items taste better because they are made to order with fresh ingredients including cheddar cheese grated from 40-pound blocks, handmade pico de gallo salsa, lard-free beans slow-cooked from scratch, and marinated chicken grilled in the restaurant. The menu includes classic Mexican dishes such as tacos, burritos, quesadillas and nachos as well as American favorites including hamburgers, crinkle-cut fries and shakes. Last year, Del Taco announced a rebranding effort and the “UnFreshing Believable” advertising campaign to communicate the lengths the company goes to in order to deliver quality, made-to-order menu items created with freshly-prepared ingredients. Del Taco also serves breakfast featuring a full line of breakfast burritos. With consistently strong sales and growth capabilities, Del Taco has grown to more than 547 restaurants in 17 states.

Qualifications Del Taco is seeking bold, passionate candidates to join the brand as it rapidly expands across the country. The ideal franchisee is an experienced restaurant operator or investor who will parter with an experienced operator and is committeed to developing at least two restaurants over time. Minimum liquidity of $500,000 and net worth of $1 million required.

Fast Franchise Facts Franchising Since: 1967 Multi-Unit Franchisee Operating Units: 40% Total Franchise Operating Units: 246

Del Taco employs sophisticated demographic and analytical tools to guide new markets and site selection. Del Taco provides education on the real estate development process, including real estate broker selection, site selection, construction management and equipment vendors. The preferred location is a major signalized intersection or adjacent to the main entrance of anchored centers. Del Taco is rapidly expanding across the country with exclusive development territories available throughout the U.S. for qualified candidates in states such as Oregon, Washington, Texas, Mississippi, Florida, Georgia and many others.

Company Operating Units: 301 Capital Investment: $767,000 - $1,640, 000 Franchise Fee (per unit): $35,000 Royalty Fee (per unit): 5% Advertising Fee (per unit): 4% Earnings Claims: Yes Build-Out Options: Free-standing or end cap with drive-thru, conversion, food court, c-stores Available Territories: West, Southwest, Southeast and Midwestern States

Contact Laura Tanaka of Del Taco, LLC | Director Franchise Development (949) 462-7379 ltanaka@deltaco.com deltacofranchise.com

MULTI-UNIT BUYER’S GUIDE 2014

Rankings • D el Taco consistently ranks in the top 50 chains by QSR Magazine, and is among the NRN Top 100 chains. • Del Taco has also been recognized in The Franchise Times Top 200 and Entrepreneur Franchise 500 rankings.

Demographics Del Taco’s target customers are between 18-49 and seek great food and variety for a good value in a convenient location. Our Mexican and American menu appeals to a broad consumer audience, offering something for every age and appetite. This advertisement is not an offer to sell a franchise.

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Rankings & Awards • # 1 in Family Restaurants Category, Entrepreneur Franchise 500 OPPORTUNITY

• Top 100 Chains in Food Service Sales in Nation’s Restaurant News

Description There has never been a better time to join Denny’s! Our New & Emerging Markets program offers incentives for opening multiple restaurants in the U.S., and we have recently secured a lending source to benefit both new and existing franchisees. We are focused on helping our franchise system grow and provide aggressive, longterm franchise development programs backed by industryleading support systems. If you’re an experienced retail/ restaurant multi-unit developer with an interest to add a growth brand, check us out at dennysfranchising.com. SITE LOCATION

Assistance Denny’s provides an experienced team of professionals to guide you through the development process. Our standard prototype can be built from the ground up or converted from existing space in a wide range of settings, including freestanding or multi-use retail sites, travel centers, hotels and casinos.

• T op 50 Franchises for Minorities, USA Today • Top 25 Franchises for Hispanics, Poder Magazine • Bond’s Top 100 Franchises

Fast Franchise Facts Franchising Since: 1953, franchising since 1963 Multi-Unit Franchisee Operating Units: 93% Total Franchise Operating Units: 1,537 Company Operating Units: 163 Capital Investment: $700,000 - 2.4 million Franchise Fee (per unit): $40,000 Royalty Fee (per unit): 4.5% Advertising fee (per unit): 3%

Qualifications

Earnings Claims: Yes Build-Out Options: Free Standing, Travel Centers and Conversion Available Territories: Select US Markets, call for details

Contact

Demographics

Doug Wong Senior Director of Global Franchise Recruitment

Desirable demographics would be near quality retail, near hotels and tourist attractions, colleges, or major highways. Minimum permanent population of 40,000 with a minimum traffic count of 30,000 vehicles per day on primary artery.

(864) 597-8705 DWong@dennys.com dennysfranchising.com

Denny’s is seeking franchise partners who understand the restaurant business. Our recruiting process is designed to help you understand the Denny’s opportunity and identify ideal markets where you can grow with the Denny’s brand. Minimum financial requirements are $350,000 liquid capital to invest and $1 million net worth. Operator must have restaurant operating experience.

MULTI-UNIT BUYER’S GUIDE 2014

APPROVAL?

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TODAY

SOUND?

REMODELS

NEW STORES

TECHNOLOGY & EQUIPMENT UPGRADES

WORKING CAPITAL

888-501-6846 www.directcapital.com/skipthebank

MULTI-UNIT

Buyer’s Guide

FOOD

Demographics • Strong residential populations • Drive-thru • Minimum 20,000 ADT

OPPORTUNITY

Description

• Superior real estate positioning

Dunkin’ Donuts, America’s favorite every day, all-day stop for coffee and baked goods, continues to implement a steady and strategic growth plan to increase its franchised locations across the U.S. To ensure this success, the company has extensive franchisee programs including brand training, franchisee business management and human resources. Franchisees are supported by an experienced field team including field marketing, development and operations.

• Morning drive side

Fast Franchise Facts

Rankings

Royalty Fee (per unit): 5.9%

• Strong vehicular visibility • Prototypical signage • Limited obstructions that may impact customer reaction time • Minimum of one parking space per table with a min. of 18 seats

Franchising Since: 1955

• Option for 24 hour operations

Multi-Unit Franchisee Operating Units: 95% Total Franchise Operating Units: 10,988 Capital Investment: $310,250 - $1,771,300 (cost estimates are based on per end cap restaurant Franchise Fee (per unit): $40,000 - $90,000 (varies by market)

• # 1 in Customer Loyalty by Brand Keys for eight years

Advertising Fee (per unit): 5%

• Rated by Entrepreneur Magazine as #1 in Coffee Category

Build-Out Options: Free-Standing Stores, End Caps, In-Line Sites, Gas and Convenience and Non-traditional Locations

SITE LOCATION

Assistance

Earnings Claims: Yes

Available Territories: West, Midwest, Mid-Atlantic and Southeastern, CA, LA, OK, TN, MN, TX, KS, NC, MI, AZ, VA (Visit website for available markets)

Qualifications Franchising opportunties range from one unit to multi-unit store development agreements. Ideally, franchisees should possess a minimum net worth of $500,000 and liquid assets of at least $250,000 per unit which will vary based on the opportunity available by market. Management teams should possess prior restaurant and/or foodservice operations experience.

Dunkin’ Donuts team works with franchisees to effectively navigate through the many challenges of site selection and development.

Contact Pamela Gore Sr. Manager, Franchise Recruitment (781) 737-3432 dunkinfranchising @dunkinbrands.com dunkinfranchising.com

MULTI-UNIT BUYER’S GUIDE 2014

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Fast Franchise Facts Franchising Since: 2003

Multi-Unit Franchisee Operating Units: 93% Total Franchise Operating Units: 29 Company Operating Units: 2

Demographics

Capital Investment: $245,050 and $873,374

Locations with national grocery/ power center anchors; 45,000 65,000 population minimum in 3-mile radius; high-visibility from major traffic arteries (20,000+ count), with local community hub. We assist with the entire site selection process.

Royalty Fee (per unit): 5%

SITE LOCATION

Assistance ECW&G provides hands-on assistance selecting, reviewing, approving and negotiating best site options. $7.5MM available in financing for our franchisees. We’ll guide you through the entire process!

Franchise Fee (per unit): $40,000 Advertising Fee (per unit): 2% Earnings Claims: Yes Build-Out Options: Typically in-line, some freestanding, lease Available Territories: Licensed in 31 states, concentrating currently in US expansion

Qualifications

Contact

Multi-Unit franchisees, investors, or business professionals. Must share our passion and brand philosophy. Must have min net worth of $850,000 and liquid asset requirement of $250,000.

Daniel Collins, CFE SVP Brand Development (954) 263-2056 dan@eastcoastwings.com eastcoastwingsfranchise.com

OPPORTUNITY

Description Franchising since 2003, ECW&G franchisees have reported some of the highest restaurant profitability in the casual dining space. Our management team is focused on franchisee profitability and continued support to the franchisee in all aspects of development, training and operations. Our FDD will fully disclose our financials. ECW&G has also just celebrated over 10 years of consecutive same store sales growth. With nationally recognized, award-winning wing sauce in 75 flavors in any of nine heat indexes, over 675 flavor combinations and a wide-variety menu with fresh product – this fast-casual concept is a leader in Franchisee satisfaction.

OUR FRANCHISEES AVERAGED

$232,360 EBITDA PER RESTAURANT*

How’s Your Bottom Line?

10 years of consecutive, positive same store sales

$7.5MM in financing available for our franchisees TM

Join the leader of casual dining in the Buffalo wing space. Contact Dan Collins, CFE 954-263-2056 or dan@eastcoastwings.com

www.eastcoastwingsfranchise.com

This advertisement is not an offering of a franchise. An offering can be made only by prospectus. We only sell franchisees in states where our offering is registered. *EBITDA as submitted by our full service franchised restaurants operating in 2012 as published in item 19 of our April 2013 Franchise Disclosure Document. Figures reflect Franchisee submitted on unaudited P&L’s. Individual financial performance will vary. Bank Credit Report developed by Fran Data. ©2014 East Coast Wings Corporation. All rights reserved.

Lead Generation Ad 030314 7.375x4.875.indd 1

MULTI-UNIT BUYER’S GUIDE 2014

3/3/14 11:05 AM

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Fast Franchise Facts

Qualifications

Franchising Since: 1991

East of Chicago Pizza is looking for potential franchisees who have a background in restaurant management, or, ideally, a multi-unit operator. Must share our passion and brand philosophy. Financial requirements vary. Typically, the net worth requirement is $75,000 - $125,000 based on the chosen build-out. Minimum unit requirements are based on the territory chosen.

Multi-Unit Franchisee Operating Units: 31% Total Franchise Operating Units: 81 Company Operating Units: 6 OPPORTUNITY

Description In 1991, East of Chicago Pizza was founded on our signature fresh pan pizza, devotion to quality, and the belief customers deserve the best tasting pizza with every bite. East of Chicago Pizza is a proven franchise system, which has thrived for over twenty years in the ultra-competitive pizza industry. We have more than 80 locations in six states supported by national distribution channels and a solid corporate structure.

Capital Investment: $161,900 - $462,200 Franchise Fee (per unit): $20,000 Royalty Fee (per unit): 5% Advertising fee (per unit): 3% Earnings Claims: Yes

Demographics

Build-Out Options: Dine-in or Delivery/Carry-out Available Territories: United States SITE LOCATION

Assistance Our experienced Development Team provides individual, stepby-step assistance and guidance for site selection, construction, and equipment procurement.

Contact Jeff Rex Director, Franchise Development (855) OWN-AEOC (696-2362) jrex@EastOfChicago.com EastOfChicagoFranchise.com

In small or rural markets, we suggest a population of at least 10,000 within a 10-mile radius. In urban areas, we recommend within a three-mile radius: • At least 14,000 people • 7,000 households • A strong daytime population • And a minimum household income of $30,000

GREAT PIZZA, OUTSTANDING INVESTMENT • 3 to 1 sales to investment ratio • Average unit volume of $585K with 65% over $700K • 48 consecutive months of positive same-store growth

WHY EAST OF CHICAGO? • Proven and successful system for 23 years • Seasoned leadership • Low entry and operating costs • Incentives for multi-unit agreements

The information in this advertisement is not intended to be an offer of franchise to any one reading it, but is for general information only. Offers and sales of a franchise are made only after the delivery and receipt of the Franchise Disclosure Document and in accordance with federal and state laws. © 2014 East of Chicago. All rights reserved.

MULTI-UNIT BUYER’S GUIDE 2014

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Demographics • E xcellent building & signage visibility • Good retail synergy • R esidential population of 25,000 in two mile radius preferred

OPPORTUNITY

Description El Pollo Loco’s success stems from the unique preparation of our award-winning pollo: fresh chicken marinated in our signature recipe. Our chicken is fire-grilled and served with hand-prepared salsas and an assortment of side dishes. Rounding out the menu are fresh, flavorful entrées inspired by the kitchens of Mexico, including: burritos, salads, tacos, quesadillas, tostadas and bowls. The brand appeals to a wide variety of consumers across different ethnic, gender, age and income demographics. SITE LOCATION

Assistance Our team is committed to working with franchisees to identify the best possible locations for new restaurants.

• Daytime population of 10,000 within two mile radius preferred

Qualifications Fast Franchise Facts Franchising Since: 1980, Year Founded 1975 Multi-Unit Franchisee Operating Units: 72% Total Franchise Operating Units: 233 Company Operating Units: 168

El Pollo Loco® is seeking franchisees for multi-unit development opportunities in the territories targeted for growth. Qualifications include 5+ years restaurant experience and able to develop restaurant(s) within the next 24 months.

Capital Investment: $900,000 - $1,755,000 Franchise Fee (per unit): $40,000 Royalty Fee (per unit): 5% Advertising fee (per unit): 5% (4% in LA DMA)

Contact John Onstott VP Franchise Operations

Build-Out Options: Freestanding with drive-thru, Inline,

(760) 845-4469 franchising@elpolloloco.com

Endcap or Endcap with drive-thru.

elpolloloco.com

Territories: Northern CA, AZ, CO, NM, TX, UT

MULTI-UNIT BUYER’S GUIDE 2014

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Buyer’s Guide

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Rankings & Awards • T op 50 Up-and-Coming, Franchising Magazine • T op 500 Fast Casual Restaurants • Best in Class Food, The Research Shop

OPPORTUNITY

Description Erbert & Gerbert’s Sandwich Shops have been in business for over 25 years and it’s our flavor that sets us apart. That is why we are known as FlavorNation! We offer flavorful sandwiches, gourmet recipe soups, and unique sauces that are not available anywhere else. We also offer gluten-free and vegetarian soup and sandwich options. We deliver and we cater. We have unparalleled support for our franchisees with a highly experienced corporate staff.

• P ositive comp sales for 9 of the past 10 years

Fast Franchise Facts Franchising Since: 1988 Multi-Unit Franchisee Operating Units: 50 Total Franchise Operating Units: 70 units, 18 in development Company Operating Units: 1 Capital Investment: $196,500 - $391,700 Franchise Fee (per unit): $30,000 Royalty Fee (per unit): 6% Advertising fee (per unit): 2% Earnings Claims: No Build-Out Options: Free Standing, Drive-Thru, In-Line, End-Cap, Co-Branded Available Territories: All USA - Call for details

Qualifications We are seeking people that share our ambition, core values, and passion for the brand, that are looking to grow through multi-unit ownership. $60,000 in cash or cash equivalents and a net worth of $300,000 required. We accept both Investors and Owner/Operators and offer protected territories. Multiunit operators are offered a reduced franchise fee on additional units.

Demographics Residential Population: 20,000+ 2 mile radius. Daytime Employment: 6,000+ for 1 mile radius and 10,000+ for 2 mile radius. Median Income greater than $40,000. Lunch time traffic: 5,000+. College traffic and high foot traffic considered per location. Retail Centers with high visible end caps with drive-thrus are preferred. SITE LOCATION

Assistance We have full time real estate consultants to search for quality sites and assist in lease negotiations, as well as design and construction staff. We have architectural firm and construction company partners for consistent and cost-effective build-outs.

Contact Jeff Thames Director of Franchise Sales (651) 587-1693 jthames@egsubs.com erbertandgerberts.com

MULTI-UNIT BUYER’S GUIDE 2014

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Buyer’s Guide

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Fast Franchise Facts Franchising Since: 1995

Multi-Unit Franchisee Operating Units: 433 OPPORTUNITY

Description Firehouse Subs is actively seeking multi-unit restaurant developers who possess the desire to maximize their territory’s sale, have strong financial backgrounds and bring a serious passion for the communities they will serve. To ensure success, the company offers extensive training programs, comprehensive operating systems and support, development and construction experts, and field marketing managers geared to simplify operations and help build business. SITE LOCATION

Assistance Firehouse Subs provides you with the tools and guidance to effectively indentify and secure the ideal site for development.

Total Franchise Operating Units: 695 Company Operating Units: 30 Capital Investment: $169,414 - $989,553 Franchise Fee (per unit): $20,000 Royalty Fee (per unit): 6% Advertising Fee (per unit): 3% Earnings Claims: Yes Build-Out Options: End-cap, in-line and non-traditional retail environments Available Territories: Southwest, Southeast, Northeast, and Midwest

Qualifications

Contact

Franchising opportunities range from one unit to multiple store development agreements. Ideally, franchisees should possess a minimum net worth of $300k and liquid assets of at least $90k, but financial qualifications will vary based on the opportunity.

Greg Delks VP, Franchise Development

FISU364188_FranchiseTimesBuyersGuide_FlameOne.indd 1

MULTI-UNIT BUYER’S GUIDE 2014

(904) 886-8300 ext. 239 gdelks@firehousesubs.com FirehouseSubs.com/Franchising

Demographics Firehouse Subs is actively seeking multi-unit franchise candidates to develop restaurants in cities such as NYC, SF, LA, BOS, PA, SEA as well as opportunities all across the USA.

Rankings & Awards Franchise Business Review’s #1 food compay in 2012 and 2013 The #1 Top Grown Chain in 2012 by Nation’s Restaurant News. Nation’s Restaurant News’ Consumer Picks winner for #1 Brand in Sandwich Category. #1 for attentive and friendly customer service by Empathica’s 2013 QSR Benchmark Study. Technomic’s #1 estaurant for taste, flavor, and quality of food.

1/23/14 4:34 PM

SUCCESS STORIES FOREVER YOGURT FRANCHISE COMMUNITY FUNDED ON CROWDFRANCHISE

FUNDING & BUSINESS HIGHLIGHTS: • Over $350,000 raised • Fully funded in 66 days • First community funded franchise business in the world • Awarded Chicago’s Best Frozen Yogurt - 2011, 2012, 2013

ABOUT CROWDFRANCHISE AND FOREVER YOGURT CrowdFranchise is a platform that allows franchisees and franchisors the ability to engage communities with ownership and funding options into franchise businesses. Individuals interested in opening their own franching company, or those interested in opening a single franchise unit, could partner or invest with others through CrowdFranchise. Forever Yogurt is a leading self-serve frozen yogurt franchise brand within the U.S., China, India, and Panama and became the ﬁrst franchise brand to sell and support a community funded store. Forever Yogurt launched the Wicker Park location as an oﬀering on CrowdFranchise on December 12, 2013 which was fully funded by February 15, 2014. For franchise opportunities with Forever Yogurt, please contact 312.878.7597.

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Buyer’s Guide

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Demographics • M inimum population of 50,000 in a 3-mile radius • Average household income of $55,000 and above • Predominance of families and children • Concentration of offices and/or retail centers

OPPORTUNITY

Description Fuddruckers® operates and franchises restaurants that specialize in high quality, upscale hamburgers in a variety of sizes that are cooked to order. We use only the freshest ingredients and we give our guests the “power of choice.” We encourage guests to garnish their own entrees by providing an array of farm-fresh produce and condiments. Our restaurants serve 100% USDA fresh, never frozen premium beef, and feature on-premise bakeries where bread and dessert items are baked fresh daily.

• Employee population 20,000 in a 3-mile radius • Traffic counts of 30,000+ cars a day

Fast Franchise Facts Franchising Since: 1984 Multi-Unit Franchisee Operating Units: 70% Total Franchise Operating Units: 120 Company Operating Units: 65 Capital Investment: $250,000 - $400,000 Franchise Fee (per unit): $35,000 Royalty Fee (per unit): 5% Advertising Fee (per unit): 0.25% Earnings Claims: Yes Build-Out Options: Free Standing, End Cap, and NonTraditional Venues Available Territories: Territories available throughout the U.S.

Contact Keith Coleman | Vice President of Franchise Development (866) 939-6273 keith.coleman@fuddruckers.com fuddruckers.com

Qualifications Potential Fuddruckers franchisees must be committed to being hands-on owner/ operators and following through with all training requirements. Minimum financial requirements include having liquid resources of $250,000 to $400K and a net worth of $750,000 to $1million dollars. SITE LOCATION

Assistance Fuddruckers provides site selection support, demographic information, broker coordination services, site survey trips, and architectural and bid review.

MULTI-UNIT BUYER’S GUIDE 2014

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Buyer’s Guide

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Qualifications Verifiable net worth of $2,500,000 in investment group with $500,000 cash or cash equivalents. (Third-party financial assistance is available in pools of funds from over 40 of the nation’s leading lenders.) Restaurant experience required within group. Applicant(s) must demonstrate necessary energy and successful experience to develop single- and multi-unit restaurants. Must recognize and reward employees/co-workers as valuable human resources.

OPPORTUNITY

Description Golden Corral is a grill-buffet, family-style restaurant featuring display cooking, charbroiled USDA steaks, a 160-item buffet/salad bar with a meat carving station, seafood station, Italian foods, Asian foods, in-house bakery that offers fresh breads, muffins, cookies, pies, cakes, and The Chocolate Wonderfall fondue dipping fountain where guests may dip strawberries and other sweet treats. The 120-item, weekend-only breakfast buffet features eggs and omelets cooked to order, bacon, sausage, pancakes, waffles, and fresh cinnamon rolls. Operational Support: Golden Corral uses an integrated system of ongoing support. East and West regions each have a vice-president of operations that provides ongoing marketing, training, and operational support. Contact is weekly with a Franchise Service Consultant (FSC), with quarterly visits by FSC and quality assurances inspectors. There is an annual national convention, semiannual regional meetings and quarterly training meetings.

Fast Franchise Facts

SITE LOCATION

Assistance

Franchising Since: 1986, founded 1973 Total Franchise Operating Operating Units: 376

Earnings Claims: Yes

Golden Corral uses analytical tools and demographic databases to identify markets and approve sites. Full-time Directors of Real Estate guide franchisees in site selection, real estate negotiations and development.

Build-Out Options: Conversions, End Caps, In Lines (after first free standing unit)

Rankings

Available Territories: Continental United States

• In 2011-2014, ranked #1 franchise in the buffet restaurant category by Entrepreneur Magazine

Company Operating Units: 125 Capital Investment: $2,111,350 - $5,727,120 Franchise Fee (per unit): $50,000 (15-year term) Royalty Fee (per unit): 4% of sales Advertising fee (per unit): 2% - 6% of sales (currently 2.4%)

Demographics

Contact

Golden Corral has broad social and economic support with an offering and service style that appeals to a large segment of the population. Golden Corral’s direct appeal is to value conscious singles, families and seniors of all ethnic backgrounds.

Annette Bagwell Franchise Sales & Legal Assistant (800) 284-5673 X 4479 abagwell@goldencorral.net goldencorralfranchise.com

• In 2011, ranked #1 in the grill-buffet segment for 14 years by Nation’s Restaurant News • Golden Corral Buffet & Grill named ALLStar Franchise in 2010 by AllBusiness

Training: A 10-week training program for general and associate managers covers all aspects of restaurant management and operations.

MULTI-UNIT BUYER’S GUIDE 2014

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Fast Franchise Facts Franchising Since: 1969 Multi-Unit Franchisee Operating Units: 12 Total Franchise Operating Units: 28 Company Operating Units: 0 Capital Investment: $800,000 - $1,800,000 excluding land OPPORTUNITY

Description Ground Round ® Grill and Bar is a known Casual Dining brand since 1969, offering a two room concept for families or adults meeting friends or watching the game. Since 2004, our brand is owned by our franchisees and offers a unique franchise model, whereby operators can own a franchise along with a share in the overall brand. Ground Round operates restaurants in 10 states across the Midwest and Northeast areas of the United States.

Franchise Fee (per unit): $30,000

Development types include Free standing pad sites, In line retail spaces, and conversions. Desired areas include shopping malls and retail center with close proximity to movies and office parks. SITE LOCATION

Royalty Fee (per unit): 2.5%

Assistance

Advertising Fee (per unit): 2% Earnings Claims: No Build-Out Options: Conversions welcome, also free standing, in-line, malls, and co-brand Available Territories: Prime territories available in Northeastern, Midwestern & Southeastern U.S.

Rankings:

Contact

• 2005 Franchise Excellence Awards by Nation’s Restaurant News

Jack Crawford President & CEO

•2 012 Franchisee Satisfaction Awards by Franchise Business Review

Demographics

(207) 865-4433 jcrawford@groundround.com groundround.com

Site and market consultation and research, including design support and scope of work requirements provided for new builds and conversions.

Qualifications Financial requirements include a minimum liquidity of $300,000 and net worth of $1 million per restaurant to be developed. At least one partner must have prior full service restaurant operations experience.

We Treat Our Franchisees

As We’d Like To Be Treated! A BrAnd Owned By Its FrAnchIsees sInce 2004 5 Or 10 yeAr Agreements nO multI-unIt develOpment requIrement

Choice of Two Franchise Programs: • $35,000 Franchise Fee & 3.5% royalty rate • Or $60,000 in Initial Fees to include purchase of a Membership Share with voting rights and pay a member preferred royalty rate of 2.5%*

Choice of Two Brands: • Ground Round Grill & Bar (full service) • Ground Round Sports Grille (non-traditional)

We’re Even Better Than You Remember! For more information, visit www.groundround.com or contact Jack Crawford at (207) 865-4433 - ext 664 *Preferred royalty rates are voted on and set by the franchisee membership.

MULTI-UNIT BUYER’S GUIDE 2014

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Buyer’s Guide

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Demographics HoneyBaked Ham and Cafe’s locations average 1,600 2,500 square feet and are located in a highly visible area central to lunch customers.

OPPORTUNITY

Description Founded in 1957, HoneyBaked is a values-driven company with a long, proud history of helping customers Celebrate Life, One Meal at a Time. Featuring a combined retail store and cafe concept, HoneyBaked is a robust franchise model offering ample operations and marketing support. Franchisees capitalize on our multiple revenue streams of retail, gifting, lunch and catering. Owners attend a two week training and have the support of their business consultant on site during the opening.

Fast Franchise Facts Franchising Since: 1998, Year Founded 1957 Multi-Unit Franchisee Operating Units: 25% Total Franchise Operating Units: 186 Company Operating Units: 234 Capital Investment: $281,000 - $431,000

SITE LOCATION

Assistance

Franchise Fee (per unit): $30,000 Royalty Fee (per unit): 6% Advertising fee (per unit): 2% plus 2.25% locally Earnings Claims: Yes Build-Out Options: In-line, End Cap, Free-Standing Territories: Please visit honeybakedfranchise.com for a listing of available markets

Our seasoned development professionals guide you through the site selection and building process by assisting with broker selection, real estate evaluation, design assistance, contractor evaluation and equipment ordering.

Rankings & Awards • Entrepreneur Top 500 • Vet-Fran Participant

Qualifications

Contact

We are seeking franchise owners who have a passion about HoneyBaked and are valuesdriven leaders. With a minimum net worth of $350,000 and at least $150,000 in liquidity, we offer single and multi-unit development opportunities for qualified franchisees.

Melissa McFarlin Director of Franchise Development (866) 968-7424 mmcfarlin@hbham.com honeybakedfranchise.com

MULTI-UNIT BUYER’S GUIDE 2014

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Fast Franchise Facts

Qualifications

Franchising Since: 1983

Hungry Howie’s Pizza currently seeks multi-store operators to buy territories. Financial requirements start at $100,000 liquid, $300,000 net worth and a positive credit history.

Multi-Unit Franchisee Operating Units: 76.42 Total Franchise Operating Units: 560 Capital Investment: $219,700 - $371,500 Franchise Fee (per unit): $25,000 OPPORTUNITY

Description

Royalty Fee (per unit): 5%

At Hungry Howie’s Pizza we serve great Flavored Crust pizza at an amazing value. The home of the Original Flavored Crust pizza was born in 1973 in Taylor, Michigan. You need a distinct point of difference in today’s marketplace. Look no further than our famous crust to see why Hungry Howie’s Pizza has an edge over its competition. While exploring other opportunities you will appreciate Hungry Howie’s commitment to our concept, products and franchisees.

Earnings Claims: Yes

SITE LOCATION

Assistance

Advertising Fee (per unit): 7% Build-Out Options: Inline and freestanding locations with high visibility Available Territories: Nationwide territories available

Demographics

Contact

Hungry Howie’s Pizza considers all demographics. We typically look for high traffic areas with a strong household presence within a 3 mile radius.

Jennifer M Jackson Director, Development (248) 414-3312 jjackson@hungryhowies.com franchising.hungryhowies.com

Hungry Howie’s Pizza locates prime sites by focusing on key elements such as consumer demographics, competitive analysis, traffic and accessibility.

Rankings #84 Hot Franchise Trends Entrepreneur Magazine’s Franchise 500 (2014) 2014 Top 50 Multi Unit Brand by Franchise Business Review

RANKED TOP 50 MULTI-UNIT FRANCHISE BY FRANCHISE BUSINESS REVIEW  15 CONSECUTIVE QUARTERS OF SAME STORE SALES INCREASES*  PRIME SINGLE AND MULTI UNIT TERRITORIES AVAILABLE  550 LOCATIONS AND GROWING  ESTABLISHED BRAND FOR OVER 40 YEARS  MILITARY FRIENDLY FRANCHISOR

*Results measure company-wide same store sales figures for each fiscal quarter over the previous year’s fiscal quarter. The measuring period is March 22, 2010 through December 29, 2013. Excludes store sales from the State of Florida. Not all individual stores experienced the same results. New franchisees may have results that differ. This advertisement is not an offer of a franchise. Franchises are offered and sold only through a Franchise Disclosure Document.STATE OF CALIFORNIA: THESE FRANCHISES HAVE BEEN REGISTERED UNDER THE FRANCHISE INVESTMENT LAW OF THE STATE OF CALIFORNIA. SUCH REGISTRATION DOES NOT CONSTITUTE APPROVAL, RECOMMENDATION, OR ENDORSEMENT BY THE COMMISSIONER OF CORPORATIONS NOR A FINDING BY THE COMMISSIONER THAT THE INFORMATION PROVIDED HEREIN IS TRUE, COMPLETE, AND NOT MISLEADING. STATE OF NEW YORK: THIS ADVERTISEMENT IS NOT AN OFFERING. AN OFFERING CAN ONLY BE MADE BY A FRANCHISE DISCLOSURE DOCUMENT FILED WITH THE DEPARTMENT OF LAW OF THE STATE OF NEW YORK. SUCH FILING DOES NOT CONSTITUTE APPROVAL BY THE DEPARTMENT OF LAW OF THE STATE OF NEW YORK. MINNESOTA STATE REGISTRATION NUMBER F–2873. Hungry Howie’s Pizza & Subs Inc., 30300 Stephenson Highway, Suite 200, Madison Heights, MI 48071, 248-414-3300.

Exclusive territories are available. Call (248) 414-3300 or log on to franchising.hungryhowies.com. Take a self-guided tour of our digital brochure and complete a simple form to request more info.

MULTI-UNIT BUYER’S GUIDE 2014

RETAIL & SERVICES

MULTI-UNIT

Buyer’s Guide

SITE LOCATION

Assistance In cooperation with our Area Developers, we offer our franchisees a variety of critical services including: advice and assistance for site selection and permitting, financing alternatives with Boefly, the largest online financing marketplace, and our SmartIceTM Remote Management system.

OPPORTUNITY

Description IceBorn is the franchise model for Ice House America, the pioneer and leader in automated ice and water vending technology with a network of over 2,500 independentlyowned ice and water vending machines. Ice vending is aggressively expanding in the $4 billion packaged ice category. And with no employees necessary to operate and a variety of placement options, including real estate within your existing portfolio, an IceBorn franchise is well positioned to capitalize on that expansion.

Rankings & Awards • Entrepreneur Magazine’s Franchise 500, 2014

Fast Franchise Facts

• Entrepreneur Magazine’s Top New Franchises, 2014

Franchising Since: 2012, founded in 2003 Multi-Unit Franchisee Operating Units: 80% Total Franchise Operating Units: 20 locations, with over 1,000 commitments Company Operating Units: 132

• Military Friendly Franchise, 2013 • Multiple US patents for our ice vending technology

Capital Investment: $27,995 - $398,500 Franchise Fee (per unit): $1,000 - $5,000 Royalty Fee (per unit): Varies based on model

Demographics

Advertising Fee (per unit): 1%

IceBorn’s customer base includes a variety of socioeconomic groups. Trade workers, such as contractors, landscapers, and commercial fisherman, along with recreational participants and lower income residences make up the heavy users. Residential customers are typically located within a 2 mile radius of the ice vending machine.

Build-Out Options: Free standing kiosk, in-line at retail business centers

Earnings Claims: Yes

Available Territories: All regions, except LA, NM, OK, WV (Availability subject to change)

Qualifications Qualities of an ideal franchisee: • Vigilant adherence to our business model, including site location, operations, community service and brand building • F inancially qualified to establish and expand the business ($150,000-net worth and $50,000-capital liquidity)

Contact Franchise Development Team

• Supporters of local community organizations

(888) 391-8065 franchise@icehouseamerica.com

• Proactive strategy for local marketing

ice-born.com

• P ursuers of local growth opportunities

MULTI-UNIT BUYER’S GUIDE 2014

Power your

PorTFoLIo SerIouS BrAND Power

GrowING INDuSTry Power

MuLTIPLe reVeNue Power

• Backed by 60 years of brand equity

• $132 billion global battery market2

• Retail and business-to-business sales

• More than $1 million1 average annual store sales

• O ld yet new industry growing as demands for technology increase

• E-commerce

• Cultural cornerstone focused on customer satisfaction

• Proprietary sales tools

Franchise an Interstate All Battery Center Today ®

interstatebatteries.com/franchising | 800.730.7868 Distributorships Also Available

This ad does not constitute a franchise offering, which may only be made by Interstate All Battery Center® after receipt of the Franchise Disclosure Document (FDD), which is filed with certain states and may be obtained through Kevin Hogan at Interstate All Battery Center Franchising, 7935 B Wright Road, Houston, TX, 77041, 800.730.7868. 1The average sales total of $1,137,400 represents operating results for our 30 franchised full centers open 24+ months. Of the 30 centers, 16 centers or 54% achieved gross sales exceeding the average. See our FDD for details. ReSIDenTS OF neW YORK: This advertisement is not an offering, which can only be made by a prospectus filed first with the Department of Law of the State of new York. Such filing does not constitute approval by the new York Department of Law. Mn Franchise Registration number: F 5119. 2The Freedonia Group

MULTI-UNIT

Buyer’s Guide

FOOD

Demographics In core markets, Jack in the Box is a convenience driven restaurant chain. A vast majority of our guests come from within two miles of the restaurant, or six minutes driving time. The typical population within one mile of the restaurant is 15,00020,000 and employment is 5,000. Average daily traffic past the restaurant is 20,000-30,000.

OPPORTUNITY

Description Loved in 21 states and growing, Jack in the Box is offering select multi-unit restaurant operators a unique opportunity to franchise whole company markets with an industry leader. Jack in the Box has premium QSR items, offering guests the freedom of choice to order any product on the menu, any time of day.

Rankings & Awards • 11 EFFIES (1995-2010) • International Association for Food Protections’s Black Pearl Award, June 2004

Fast Franchise Facts Multi-Unit Franchisee Operating Units: 79% Total Franchise Operating Units: 1,766 Company Operating Units: 490 Capital Investment: $1,316,100 - $2,386,100 Franchise Fee (per unit): $2,500 per year (up to 20 years) Royalty Fee (per unit): 5% of gross sales Advertising Fee (per unit): 5% of gross sales Earnings Claims: Yes

• Nation’s Restaurant News Golden Chain Award, August 2007

Available Territories: Acquisition Only Markets: Charlotte, Greenville/Spartanburg, Nashville

• Nation’s Restaurant News Technology Innovation Award, October 2007

Contact

• Franchise Business Review’s Franchisee Satisfaction Award

Assistance

Franchising Since: 1982, founded 1951

•N ation’s Restaurant News Menu Masters Award, June 2007

• QSR Magazine Applied Technology Award for Local Restaurant Marketing, 2010

SITE LOCATION

Build-Out Options: Free-standing drive-thru, multiple footprints; walk-ups; airports; college campuses

Grant Kreutzer Director, Franchise Business Development (858) 571-4091 grant.kreutzer@jackinthebox.com jackintheboxinc.com/franchising

Jack in the Box uses demographic and analytical tools to guide development in new markets. We help educate franchisees on the real estate development process, including broker selection, site selection and construction management. Real Estate Managers and Construction Managers will assist in these areas.

Qualifications Qualifications Multi-unit restaurant operations experience; Minimum liquidity of $750,000; Minimum net worth of $1.5 million; Ability to acquire and/or develop at least 5 restaurants; Operating partner is an equity partner and resides in the desired market.

MULTI-UNIT BUYER’S GUIDE 2014

MULTI-UNIT

Buyer’s Guide

FOOD

Demographics Locations range from 1,200 1,800 square feet, and should be easily visible & accessible from road with good co-tenancy. Strong median income & daytime population required.

OPPORTUNITY

Description Jersey Mike’s has been serving authentic subs since 1956. Our concept is simple. We provide our customers with the freshest, highest quality sub sandwiches available, prepared right in front of them and served with energy and enthusiasm. Our culture of giving and making a difference in the lives of our customers creates an important bond in the communities we serve.

Fast Franchise Facts Franchising Since: 1956 Multi-Unit Franchisee Operating Units: 72% Total Franchise Operating Units: 725 Company Operating Units: 24 Capital Investment: $243,337 - $492,732 Franchise Fee (per unit): $18,500 Royalty Fee (per unit): 6.5% Advertising Fee (per unit): 3.5% Earnings Claims: No Build-Out Options: Shared pads or out parcels & end caps preferred; in-line & non-traditional Available Territories: Available throughout US

Rankings • Entrepreneur Magazine’s Franchise 500 • 3rd fastest-growing restaurant chain with sales above $200 million – Technomic’s 2013 annual report • Top 10 growth companies 2013 Nation’s Restaurant News, 2nd 100 & #1 in sandwich

Qualifications

SITE LOCATION

Assistance Franchise is equipped with construction & design teams, providing layouts, & list of certified architects & contractors, along with preferred vendors to assist franchisees. Each franchisee is also assigned a store opening coordinator.

MULTI-UNIT BUYER’S GUIDE 2014

Single & multi-unit territories available. Minimum liquidity requirements are $100,000 and minimum net worth of $300,000. Restaurant experience is preferred, but not required.

Contact Brian Sommers VP, Franchise Development (732) 292-8272 bsommers@jerseymikes.com

JOHNNY ROCKETS, PHILIPPINES

DYNAMIC LIFESTYLE BRAND

FLEXIBLE FOOTPRINT

JOHNNY ROCKETS, Cranston, RI

Malibu SPEEDZONE, DALLAS, TX

GLOBAL AWARENESS

BECOME AN OWNER TODAY. CONTACT US AT: johnnyrockets.com/franchise-with-us | (949) 625-2303 Johnny Rockets is an international restaurant chain that offers all-American food and fun. Every Johnny Rockets restaurant serves simple, great-tasting food from a menu of all-American favorites, including made-to-order hamburgers, crispy American Fries, classic sandwiches and rich, delicious hand-spun shakes and malts. Johnny Rockets and its franchisees currently operate nearly 300 restaurants in the U. S. and more than 20 countries. We are positioned, worldwide, to be a successful, enduring example of American innovation and culture for years to come.

MULTI-UNIT

Buyer’s Guide

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OPPORTUNITY

Description Demographics Our market research indicates that Krispy Kreme’s breadth of appeal extends across all major demographic groups, including age and income. An ideal trade area will have an ethnically diverse population of 50,000, traffic counts of 25,000 cars/day with major retail centers and schools in the area.

Fast Franchise Facts Franchising Since: 1937 Multi-Unit Franchisee Operating Units: Total Franchise Operating Units: 736 Company Operating Units: 94 Capital Investment: $275,000 - $1,911,250 Franchise Fee (per unit): $50,000 Royalty Fee (per unit): 4.5% Advertising Fee (per unit): 1% Earnings Claims: Yes

Founded in 1937, Krispy Kreme is an international retailer of premium-quality sweet treats, including its signature hot Original Glazed® doughnut. Headquartered in Winston-Salem, NC, the company has offered the highest-quality doughnuts and great-tasting coffee for more than 76 years. Today, Krispy Kreme and its one-ofa-kind Hot Light can be found in 800+ locations in 24 countries. The brand’s global mission is to touch and enhance lives through the joy that is Krispy Kreme.

Rankings: • Krispy Kreme has achieved 20 consecutive quarters of positive same store sales growth • Technomic suvey indicated that Krispy Kreme was the most craveable chain in North America

Build-Out Options: Freestanding, conversions, end-cap with drive thrues, non traditional venues SITE LOCATION

Assistance

Available Territories: Northwest, Midwest, Southwest, & Northeast

Krispy Kreme offers comprehensive support for all franchisees from the beginning of the site selection process through store opening. The brand also offers ongoing support for franchisees for all operating stores.

Contact Patricia Perry VP, U.S. Franchise Development (336) 726-82444 pperry@krispykreme.com krispykremefranchise.com

MULTI-UNIT BUYER’S GUIDE 2014

Qualifications Krispy Kreme is seeking qualified multi unit operators who have a passion for the brand and the willingness to live out the brand’s mission. All candidates must have a successful track record of operating a successful multi unit business, a high level of commitment to customer service and a $300,000 liquidity for each store that will be developed.

RETAIL & SERVICES

MULTI-UNIT

Buyer’s Guide

Fast Franchise Facts

OPPORTUNITY

Description

Franchising Since: 1997

Liberty Tax Service is the

Multi-Unit Franchisee Operating Units:

fastest growing income tax

Total Franchise Operating Units: 4,259 ®

preparation company in the

Company Operating Units: 261

industry’s history. Founded in

Capital Investment: $56,800 - $69,900

1997, Liberty Tax has a proven

Franchise Fee (per unit): $40,000

franchise operating system with low start-up costs and high

Royalty Fee (per unit): 14%

returns. Liberty is looking for

Advertising Fee (per unit): 5%

passionate people to own and

Earnings Claims: Yes

operate their own Liberty Tax

Build-Out Options: Store front, Kiosk, malls and free standing

franchise. Territories are selling

Available Territories: All states

quickly, but there’s still an opportunity to come grow with us. If you are passionate

Rankings

Contact

• #21 - Entrepreneur Magazine’s Franchise 500

David Tarr Director, Franchise Development

• Top 50 Franchises, Franchise Business Review

(877) AT-LIBERTY sales@libtax.com libertytaxfranchise.com

prepare

about success, contact us! SITE LOCATION

Assistance Full levels of training and support in site selection.

to go big.

Weigh in on a national level with a Liberty Tax Franchise. •

Low-Cost Investment

•

National Brand

•

Seasonal

•

Multi-Unit Opportunities For more information, call

877-AT-LiberTy LibertyTaxFranchise.com

libertytaxfranchise

libtaxfranchise

Minnesota state franchise number F-4418 and F-3918

MULTI-UNIT BUYER’S GUIDE 2014

RETAIL & SERVICES

MULTI-UNIT

Buyer’s Guide

Demographics Our customer is 60% female and 40% male ranging between the ages of 28 and 55. We are typically in in-line centers with regional or national grocery anchors with co-tenants focused on health and beauty.

OPPORTUNITY

Description With over 100 locations, Massage Heights has proven to be a successful business model serving the health and beauty sector. Recurring revenue, along with outstanding field support, marketing support, proprietary software and training, has led to the success of this proven system.

Fast Franchise Facts Franchising Since: 2004 Multi-Unit Franchisee Operating Units: 50 Total Franchise Operating Units: 101 Company Operating Units: 2 Capital Investment: $400,000 Franchise Fee (per unit): $42,000 Royalty Fee (per unit): 5% Advertising fee (per unit): 3% Earnings Claims: Yes Build-Out Options: In-line, free standing Available Territories: Available across the US

SITE LOCATION

Assistance A Massage Heights Franchise Business Consultant will walk you through the entire grand opening process, using proprietary project management software and demographic and psychographic analysis software for site selection assistance.

MULTI-UNIT BUYER’S GUIDE 2014

Rankings & Awards • # 259 Entrepreneur Magazine Franchise 500 List • #33 Franchise Business Review Top 50 Franchise to Own • Franchise Times Next 300 List Top 500 U.S. Based Franchise System In Gross Sales

Qualifications For each unit you will need a $400,000 net worth and $175,000 liquidity. You should also have a minimum of two years of sales experience or retail along with managing hourly employees and financial statements.

Contact Brenda Doucette Qualifications Specialist (888) 909-0974 mhfranchising @massageheights.com massageheightsfranchise.com

MULTI-UNIT

Buyer’s Guide

FOOD

Qualifications Franchisees should understand the importance of strong operations and be committed to offering the best guest experience. Multi-unit franchisee candidates should have restaurant experience and be successful business leaders. Also candidates should possess a minimum liquidity of $750K and net worth of $1.5M.

OPPORTUNITY

Description McAlister’s Deli is an award winning fast casual restaurant concept offering an extensive menu of American regional favorites including made to order sandwiches, salads, spuds and our Famous Sweet TeaTM. Our unique operating platform allows us to deliver quality food to our guests in an efficient operating environment. As a result McAlister’s offers exceptional unit sales volumes; an attractive sales to investment ratio and strong, consistent same store sales increases. McAlister’s is an attractive investment opportunity.

Demographics • $50,000+ median household income • Well educated, professional or clerical workforce • Families with children • College students trong daytime and • S residential population

Fast Franchise Facts Franchising Since: 1994, founded 1989 Multi-Unit Franchisee Operating Units: 85% Total Franchise Operating Units: 277 Company Operating Units: 47 Capital Investment: $536,000 - $871,000 Franchise Fee (per unit): $30,000 Multi-Unit

SITE LOCATION

Assistance

Royalty Fee (per unit): 5% of gross sales

McAlister’s Deli offers full site location assistance.

Advertising fee (per unit): Current 0.75% Earnings Claims: Yes Build-Out Options: Free standing, end cap/inline, colleges, universities, shopping malls, airports, medical facilities, casinos, travel centers, military bases Available Territories: Available in all US States.

Rankings & Awards • 2 013 Technomic Chain Restaurant Consumers’ Choice Winner • 2013 Top 40 Franchises by Franchise Business Review • 2 013 Ranked #2 of Top 100 Movers & Shakers by Fast Casual

Contact 1-888-855-DELI franchising@mcalistersdeli.com mcalistersdelifranchise.com

MULTI-UNIT BUYER’S GUIDE 2014

MULTI-UNIT

Buyer’s Guide

FOOD

Fast Franchise Facts

Qualifications

Franchising Since: 2001

• R estaurant management experience as an owner and/or operator

Multi-Unit Franchisee Operating Units: 95% Total Franchise Operating Units: 536

• Minimum net worth $1.5M

Company Operating Units: 4

• At least $500,000 liquid assets

Capital Investment: $453,215 - $787,493

• E nthusiasm for the brand and business ownership

Franchise Fee (per unit): $30,000 OPPORTUNITY

Description Now is the time to join Moe’s! We’re dedicated to selecting the best Franchise Partners who share our company vision of operating more than 850 Moe’s fast casual restaurants by 2015. Moe’s is dedicated to Franchise Partner success in one of the fastest growing segments of the restaurant industry – Fast Casual Mexican. Our Franchise Partners love what they do – and it shows year after year as our sales and locations continue to grow.

Royalty Fee (per unit): 5%

Demographics

Advertising Fee (per unit): 4%

• 2,200 - 2,800 sq. ft.

Earnings Claims: Yes Build-Out Options: All (Freestanding, Inline, Malls, Airports, Co-branded, etc.) Available Territories: Limited availability in the southeast. All other regions are available.

Contact

SITE LOCATION

Assistance

Steven Corp Senior VP, Franchise Sales

Moe’s provides site sourcing support from Moe’s local real estate brokers and evaluation by the Moe’s real estate team, customized.

(813) 933-9395 scorp@moes.com moesfranchise.com

• S trong anchored centers/ high-profile convenience centers in synergistic retail corridors • H igh visibility to street and center traffic • Minimum 45 parking stalls

Rankings: • Q SR’s Top 10 Best Franchise Deals

• # 1 Mexican quick-service restaurant in Entrepreneur Magazine

welcome to growth

rANKeD #1

Mexican quick-service category as published by Entrepreneur® magazine for 2013, 2011

rANKeD #1 Moe’s Southwest Grill ® named Top Mexican Chain by Technomic in 2013

CONSUMER

$1,177,879

Restaurant Brand Metrics

Average total annual gross sales

mArKetINg Recently launched national TV and digital ad campaigns

(Technomic “Consumer Restaurant Brand Metrics” Report for 2013)

toP 10

Growth chain ranked by Nation’s Restaurant News® in 2013

500+ reStAUrANtS And more than 200 in development

Looking for qualified multiunit operators with the ability and desire to develop multiple restaurants. Additional marketing support may be available in certain DMAs. FOR MORE INFORMATION, CONTACT:

914.305.2312 • requests@moes.com

MOES.COM

Based upon unaudited or verified financial information of 143 restaurants out of 375 continuously in operation for a three-year period. Of the 143 restaurants represented in the three-year group, 61 restaurants (or 42.7% of the three-year group) attained or exceeded the average total gross sales. Other expenses related to owning and operating a restaurant are also included in Item 19 of the April 2013 Franchise Disclosure Document. This information is not intended as an offer to sell. We will not offer you a franchise until we have complied with disclosure requirements in your jurisdiction. FOR THE STATE OF NEW YORK: This advertisement is not an offering. An offering can be made only by a prospectus filed with the Department of Law of the State of New York. Such filing does not constitute approval by the Department of Law. FOR THE STATE OF CALIFORNIA: These franchises have been registered under the Franchise Investment Law of the State of California. Such registration does not constitute approval, recommendation or endorsement by the commissioner of corporations nor a finding by the commissioner that the information provided herein is true, complete and not misleading. Moe’s Franchisor LLC, 200 Glenridge Point Parkway, Suite 200, Atlanta, GA 30342. ©2014 All rights reserved.

MULTI-UNIT BUYER’S GUIDE 2014

MULTI-UNIT

Buyer’s Guide

FOOD

Demographics

Fast Franchise Facts

MOOYAH restaurants are 1,800 - 2,400 square feet and have excellent visibility and access to high-traffic areas with above average income-level demographics.

Franchising Since: 2007 Multi-Unit Franchisee Operating Units: 90% Total Franchise Operating Units: 56 Company Operating Units: 4 Capital Investment: $334,950 - $529,700

Rankings

Franchise Fee (per unit): $35,000 OPPORTUNITY

Description

Royalty Fee (per unit): 6%

At MOOYAH, customization is king. Guests can choose from a variety of bun options to accompany three protein choices, unlimited veggies and nine delicious sauces. Add fresh-cut French fries or savory sweet potato fries and top it off with a handcrafted milkshake and it’s easy to see why MOOYAH has become one of the most craveable burger experiences around.

Earnings Claims: No

• MOOYAH was ranked 1st overall in Restaurant Business’s 2013 Future 50 list

Advertising Fee (per unit): 3%

• Listed as No. 8 in Fast Casual Magazine’s annual Top 100 Movers & Shakers in 2013

Build-Out Options: End Cap, In-Line and Non-Traditional Available Territories: United States

Qualifications

Contact

Must be committed to upholding our national reputation for being obsessed with Guest service and delivering the best Burger, Fry and Shake experience ever, while having a ton of fun doing it.

Ardag Tachian Franchise Development

• Named ‘best burger’ in its hometown by DallasChild and NorthTexasChild in 2013 SITE LOCATION

Assistance

(248) 797-2136 atachian@mooyah.com

Intensive real estate selection and an assigned personal Project Manager for hands-on construction assistance.

mooyahfranchise.com Kindly No Solicitations

101 restaurants sold

single and multi-unit franchises available in select markets

4 million

burgers sold in 2013

lunch

dinner

HIGHEST REVENUE ON THE WEEKENDS

.....................................

nearly 50% of top 200 dmas still available nationwide

nearly

THE STATS ..................................... each restaurant assigned one

franchise business consultant and one

field marketing leader

CONTACT ARDAG TACHIAN at 248.797.2136 or visit www.mooyah.com

DON’T BE SHY.

MULTI-UNIT BUYER’S GUIDE 2014

MULTI-UNIT

Buyer’s Guide

FOOD

Fast Franchise Facts

Qualifications

Franchising Since: 1986

Papa John’s net worth and capital requirements for new franchisees are as follows:

Total Franchise Operating Units: 3,705 Company Operating Units: 723 OPPORTUNITY

Description

Capital Investment: $175,000 - $250,000

Committed to delivering on its brand promise of “Better Ingredients, Better Pizza,” Papa John’s is the recognized quality leader in the pizza category. Papa John’s opened its first pizza restaurant in 1984. Today, Papa John’s boasts more than 4,400 restaurants worldwide.

Royalty Fee (per unit): 5%

SITE LOCATION

Assistance Papa John’s Development team provides customized assistance to our franchise community? regarding site selection, construction management and equipment.

Franchise Fee (per unit): $25,000 Advertising Fee (per unit): 7% Earnings Claims: Yes Available Territories: Please visit our website papajohns.com for a listing of available areas.

• Minimum of $50,000 in cash or liquid assets • Minimum net worth of $200,000 • Ability to obtain financing up to $220,000 These are minimum requirements and do not represent the total potential costs to open and operate one or more Papa John’s units.

Rankings

Contact

• For 12 out of the last 14 years, Papa John’s has earned the highest customer satisfaction rating among pizza chains in the highly regarded American Customer Satisfaction Index (ACSI).

Regan Clauson Franchise Qualifications Specialist

• Ranked in the Top 10 2012 Fastest Growing QSR Franchises according to Entrepreneur Magazine.

(502) 261-4844 Regan_Clauson@papajohns.com

• One of the ‘50 Top Franchises for Minorities’ as determined by the National Minority Franchising Initiative (NMFI).

papajohns.com

Open a Papa John’s for Less Than $250,000 * Become a franchisee in 2014 and get these incentives: • • • •

$0 Franchise Fee ($25,000 Savings) FREE set of Middleby Marshall ovens REDUCED ROYALTIES for first 5 years of operation Up to $3,000 FOOD CREDIT

Call 888.255.7272 for more Info or visit papajohns.com *Estimated costs for typical in-line location. Atypical features of a location may raise these costs. Certain restrictions apply. All benefits, discounts and payments subject to Papa John’s 2014 US Development Incentive Program.

MULTI-UNIT BUYER’S GUIDE 2014

MULTI-UNIT

Buyer’s Guide

FOOD

Demographics The site selection team identifies target sites with neighborhood retail patterns where customers shop multiple times per week. Demographics are then analyzed to select targets with the best population, households, income, growth rates and more.

OPPORTUNITY

Description Papa Murphy’s is the largest Take ‘N’ Bake pizza chain in the U.S. with over 1,400 stores worldwide. Papa Murphy’s offers a great value and a superior pizza to customers and a simple, focused concept for franchisees. The limited hours of operation and the take-n-bake concept without the hassles of dining or delivery, provide a great franchise opportunity.

Qualifications Multiple Store Agreements range from 3-10 store opportunities in numerous markets. The net worth requirement is $275k per store. Operating partners must have experience with multi-unit food industry operations.

Fast Franchise Facts Franchising Since: 1982 Multi-Unit Franchisee Operating Units: 45% Total Franchise Operating Units: 1,400 Company Operating Units: 65 Capital Investment: $215,905 - $378,421

Contact

Franchise Fee (per unit): $25,000 Royalty Fee (per unit): 5%

Rankings & Awards

Advertising fee (per unit): 2%

Scott Mellon VP of Franchise Sales

Earnings Claims: Yes

(254) 652-6110

Build-Out Options: Inline and free standing

Scott.Mellon@ papamurphys.com

Available Territories: CA, AZ, NV, NM, TX, OK, KS, MO, AR, LA, AL, GA, FL, SC, NC, VA, KY, OH, IN, MD

papamurphysfranchise.com

Papa Murphy’s Pizza has been voted “America’s Most Craveable Pizza” through an NRN Consumer Picks survey and is a four-time recipient of Pizza Today’s Chain of the Year. SITE LOCATION

Assistance The experienced Real Estate and Construction team provides guidance and assistance from the first stage of site selection to the final construction phase.

MULTI-UNIT BUYER’S GUIDE 2014

INCREASE SALES with On-Site Truck Advertising

• Affordable Short and Long Term Rentals • Quality Custom Designs • Increase Visibility and Direct More Customers to Your Location • Free Licensing, Free Insurance, Free Maintenance • Move Your Truck When and Where You Want

Testimonials: “My Patriot ad truck made a big difference right away; this is the first method of advertising that has worked for me, besides TV. We went from $10k a week in sales to almost $12K! This is a huge win for us.” — Joseph Stanley, Little Caesars

“I have a wrapped truck from Patriot Leasing at each of my six Fantastic Sams hair salons. The trucks bring us new customers everyday. They have dramatically increased our visibility to the community. Also, Patriot Creative Group has great customer service. They respond immediately to service any mechanical issues and have even come to clean off graffiti. Great marketing tool!” — David Nelson, Fantastic Sams

PATRIOT

C R E A T I V E

Find us on

G R O U P

MULTI-UNIT

Buyer’s Guide

FOOD

Demographics Our ideal site would be a dominant corner lot, at a traffic light with convenient ingress & egress on the “going home” side of the street. The lot size would be a minimum of 30,000 sq. ft. and have an average daily traffic count of 20,000 on the primary artery.

OPPORTUNITY

Description Within the QSR industry, Popeyes distinguishes itself with a unique “Louisiana” style menu that features spicy chicken, chicken tenders, fried shrimp and other seafood, as well as jambalaya, red beans and rice and other regional items. Popeyes is a highly differentiated QSR brand with a passion for its New Orleans heritage and flavorful authentic food.

Qualifications Potential restaurant franchise

Fast Franchise Facts

candidates should meet the following criteria:

Franchising Since: 1976

• P ossess solid business

Multi-Unit Franchisee Operating Units: 173

experience

Total Franchise Operating Units: 1716

• 5 Years Restaurant Manage-

Company Operating Units: 53 Capital Investment: $363,300 - $443,100 for a new free

Contact Megan Lee New Business Development Manager (404) 459-4623 megan.lee@popeyes.com popeyes.com/franchise

• M ust have a minimum net

standing facility unit excluding real estate and improvements Franchise Fee (per unit): $35,000, Development Fee $12,500 Royalty Fee (per unit): 5%

worth of $1,000,000 and $500,000 in liquid assets, per restaurant • M ake a commitment to grow

Advertising fee (per unit): 4%

with the Popeyes brand

Earnings Claims: Yes Available Territories: All states except AZ, UT, NY, NJ, PA, OH, TX & LA

ment Experience or equivalent QSR experience

• P revious franchise

experience is advantageous • M eet Popeyes

Credit Clearance SITE LOCATION

Assistance Our real estate and construction teams provide the following assistance: market analysis, broker references, site selection assistance, site evaluation, a list of preferred architects and contractors, an assigned construction manager and other services.

MULTI-UNIT BUYER’S GUIDE 2014

MULTI-UNIT

Buyer’s Guide

FOOD

Demographics Wide demographic appeal. Heavy user: Ages 25-54. Core household income average: $35,000 -$100,000. Male 47%, female 53%. Singles, families, large groups & couples.

OPPORTUNITY

Description As one of the most brand differentiated restaurants in casual family dining, Quaker Steak & Lube®, has been a successful concept for 40 years. Come expand Lube Nation with us!

Awards

Fast Franchise Facts

• Industry high average unit volumes

Franchising Since: 1997, Year Founded 1974

• Fuel-injected marketing and operations support

Total Franchise Operating Units: 45

• Multiple revenue streams in each restaurant – PickUp Wingo Window®, Online Ordering, Retail, Award-Winning Sauces, Catering & Events • A ward-Winning Menu (Best Wings USA) and Blowout Beverages

Qualifications

Multi-Unit Franchisee Operating Units: 91% Company Operating Units: 19 Capital Investment: $1,200,000 - $3,700,000 Franchise Fee (per unit): $40,000 Royalty Fee (per unit): 5% of gross sales Advertising fee (per unit): Up to 1% Advertising Fund, up to 3% Local (% of gross sales)

Hundreds of national and international awards for its chicken wings and more than 25 wing sauces, including: The 2010, 2012 - 2013 Festival Favorite at the National Buffalo Wing Festival in Buffalo, NY. The 2012 Cheers Beverage Excellence Award for Best Beverage Merchandising for Signature Bar Jars ®. The 2012 Menu Masters award for limited time offer, Shake Wrap & Roll. Featured on Man Vs. Food on the Travel Channel.

Earnings Claims: Yes Build-Out Options: Freestanding, end-cap, conversions & nontraditional Available Territories: Great markets available

Quaker Steak & Lube® is looking for franchise owners who will be passionate about the brand and philosophically aligned with our values and approaches to operating a business. Criteria includes:

SITE LOCATION

Assistance Site selection criteria and assistance, lease assistance, design and architectural plans, construction review & preferred suppliers.

• Passion for guest service • 5 00K-1M liquidity and net worth of $3 million

Contact

• Restaurant and/or operational experience

Zeb Hastings VP Franchise Development

• P roficiency & the ability to execute four-walls and local marketing

(888) MYLUBE1 (695-8231) zhastings@thelube.com

MULTI-UNIT BUYER’S GUIDE 2014

lubefranchising.com

MULTI-UNIT

Buyer’s Guide

FOOD

Demographics Salsarita’s is an a highly coveted niche and has strong appeal in markets large and small with kids, teens and young professionals.

OPPORTUNITY

Description Here at Salsarita’s Fresh Cantina, we’re building a dynamic and authentic fastcasual Mexican brand, offering delicious food, made the way you want it and prepared every day in-house. From tortilla chips our customers truly rave about, to queso and customizable burritos, tacos, salads, bowls, quesadillas and nachos, to our signature salsas and fresh-made guacamole on the house, Salsarita’s Fresh Cantina thrives on making great Mexican fare fresh daily.

Qualifications Salsarita’s welcomes single and multi-unit development agreements. During our discovery process, you will learn more about the Salsarita’s opportunity and the support we provide to our franchisees. The minimum financial requirements are $350,000 in liquid capital and a minimum net worth of $1M.

Fast Franchise Facts Franchising Since: 2003 Total Franchise Operating Units: 70 Company Operating Units: 7

SITE LOCATION

Assistance

Capital Investment: $355,600 - $619,600 Franchise Fee (per unit): $30,000 Royalty Fee (per unit): 5% (2014 is 3% per growth incentive) Advertising Fee (per unit): 1% plus 1.5% spent locally Earnings Claims: Yes Build-Out Options: End-caps, inline, airports, campuses, mall locations, sports stadiums

The Salsarita’s Fresh Cantina team works with franchisees to effectively navigate the many challenges of site selection and development.

Available Territories: Continental US—Call for details

Rankings & Awards CEO and franchising veteran Phil Friedman named one of the Top 5 Fast Casual Executives to watch in 2012.

Contact Chris Bailey VP of Franchise Sales (704) 540-9447x202 cbailey@salsaritas.com salsaritas.com

MULTI-UNIT BUYER’S GUIDE 2014

RETAIL & SERVICES

MULTI-UNIT

Buyer’s Guide

Demographics Population of at least 35,000 in the primary trade area; 20,000 in rural areas. High percentage of families with children. Total building size of approximately 12,000 to 18,000 square feet. Excellent line of sight for visibility with good ingress/egress. Co-tenancy with other value-oriented retailers desired; Expansion market nationwide.

OPPORTUNITY

Description Save-A-Lot is the nation’s leading hard discount grocery chain with over 1,300 stores across the U.S. and Caribbean. Our business model is designed to help retailers succeed and compete effectively in the grocery industry by offering smaller efficient stores, our exclusive private label brands, the buying power of over 1,300 stores and an efficient, low operating cost operation. Save-A-Lot is offering significant capital incentives - a minimum of $200,000 cash - to qualified candidates.

Qualifications Previous business experience (grocery or retail preferred but not required). Ability to follow the Save-A-Lot program. Solid personal financial history. Net worth of at least $1 million. Cash liquidity of $300k. Local knowledge, relationships, and expertise in consumer preferences, real estate, government regulations and labor. Plans and ability for multi-unit development are encouraged.

Fast Franchise Facts Franchising Since: 1978 Multi-Unit Franchisee Operating Units: 70% Total Franchise Operating Units: 952 Company Operating Units: 380 Capital Investment: Minimum $300,000 per store Franchise Fee (per unit): $0 Royalty Fee (per unit): 0% Advertising Fee (per unit): 0% Earnings Claims: Yes Build-Out Options: In-line and free standing Available Territories: 37 States and Caribbean

Contact Eric Hunn | License Development 314.592.9446 eric.v.hunn@savealot.com save-a-lot.com/own

SITE LOCATION

Assistance Each licensee is responsible for leasing or acquiring real estate as well as contracting the construction of their store. However, Save-A-Lot will provide assistance for site selection, market analysis, store layout, project management and décor/ equipment recommendations.

Rankings Save-A-Lot is the second largest grocery store banner in the U.S. and the nation’s leading hard discount grocery retailer.

MULTI-UNIT BUYER’S GUIDE 2014

MULTI-UNIT

Buyer’s Guide

FOOD

Demographics Target demographics range based on Smashburger’s markets across the country. For more details on a market of interest, please contact Smashburger’s Franchise Sales team.

OPPORTUNITY

Description Smashburger is a successful fast casual restaurant specializing in serving fresh, never frozen 100% all-natural Certified Angus beef burgers. We also serve tender marinated chicken sandwiches, fresh salads, and a variety of specialty sides. Together with our existing partners we operate 250+ restaurants across the country and internationally. We are innovators and are committed to continuing to grow our brand with multi-unit franchisees.

Rankings & Awards • Most Promising Company 2013 and 2014, Forbes •2 010 Top New Franchises, Entrepreneur Magazine •A merica’s Fastest Growing Companies, Inc. Magazine • T op 100 Movers and Shakers, Fast Casual

SITE LOCATION

Assistance Smashburger provides thorough and detailed support in the site selection and development process for our franchise partners.

Fast Franchise Facts Franchising Since: 2007 Multi-Unit Franchisee Operating Units: 50% Total Franchise Operating Units: 114

(As of February 2014)

Company Operating Units: 142 Capital Investment: Varies based on development agreement Franchise Fee (per unit): $40,000 Royalty Fee (per unit): 5.5 - 6% Advertising fee (per unit): 2.5% Build-Out Options: End cap, free-standing, in-line,

Contact

non-traditional

Smashburger Franchise Sales (303) 633 -1500

Territories: Various domestically. See website for

smashburger.com/franchising

available territories

Qualifications Smashburger is seeking multiunit development partners domestically. To be considered, individuals or partnerships must have demonstrated enthusiasm, drive, passion, and a proven record of success in the restaurant industry, five years of multi-unit restaurant management experience as an owner and/or operator, and capital availability.

MULTI-UNIT BUYER’S GUIDE 2014

MULTI-UNIT

Buyer’s Guide

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Rankings For more than 20 years, Smoothie King has earned the #1 ranking by Entrepreneur magazine. We are committed to being the best in product quality, customer satisfaction and franchising excellence. OPPORTUNITY

• 2014 Entrepreneur Annual Franchise 500® - Ranked #1 in Category

Description Smoothie King, the premier smoothie and nutritional lifestyle center with more than 600 locations worldwide, is seeking both single and multiunit operators to expand in communities across the U.S. and key international markets. Franchisees benefit from 40 years of brand building, our proven business model and multiple revenue streams, including smoothies, snacks, retail and nutritional supplements. Smoothie King’s experienced management team provides an unparalleled level of support in order to help franchisees succeed.

Demographics Smoothie King’s real estate department works closely with franchisees to determine the optimum locations and trade areas. Smoothie King Smoothie King’s analytical model assists in understanding consumer buying habits and demand, helping us pinpoint growth markets.

• 2 014 Entrepreneur Annual Franchise 500 Rank - #86 • QSR Global 30 - #21

Fast Franchise Facts Franchising Since: 1989, Founded:1973 Multi-Unit Franchisee Operating Units: 54% Total Franchise: 660 Company Operating Units: 14 Capital Investment: $140,000 - $398,000 Franchise Fee (per unit): $25,000 Royalty Fee (per unit): 6% of gross sales Advertising Fee (per unit): $1,000 - $2,500 for grand opening; minimum of 2% of gross sales – listed under local marketing requirement Earnings Claims: Top 25% of stores average more than $540,000 Build-Out Options: Free standing, end cap and strip shopping centers. Drive-thrus preferred. Non-traditional locations include malls, airports, universities and military bases. Available Territories: Southeast, Northeast, Midwest. Please visit our website smoothiekingfranchise.com for a listing of available markets.

Contact Steven K. Shields Senior Business Development Manager (985) 635-6973 ext. 224 steves@smoothieking.com smoothiekingfranchise.com

MULTI-UNIT BUYER’S GUIDE 2014

Qualifications Our ideal franchise candidates are energetic, entrepreneurial, marketing savvy and have restaurant / retail management experience (not required). Equally important, they must be friendly, outgoing, and be able to inspire customers to live healthier lifestyles. Candidates are required to demonstrate a minimum net worth of $250,000 and $75,000 in liquid assets.

MULTI-UNIT

Buyer’s Guide

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Rankings & Awards

• #1 in Burger QSR brands in 2013 Temkin Experience Ratings OPPORTUNITY

• # 3 in Advertising Brand Effectiveness by Technomic’s 2013 Consumer Brand Study

SONIC’s highly differentiated brand and entrepreneurial spirit make our next level of growth exciting! We have one of the most diversified daypart strategies in the industry that helps drive traffic all day. We opened in 1953 and began franchising in 1959. SONIC’s System-Wide Sales total $3.79 Billion and our AUV is $1.1M+. We offer Development, Operations, Staff Selection Training; National Marketing and Purchasing support as well as Product Innovation.

• #26 in Top 500 Franchise Chains, Entrepreneur Magazine

Description

Demographics SONIC has Multi-Unit opportunities in markets such as NY, GA, MA, IL, Hawaii, IN, and CA. SONIC’s Target Consumer Profile is A18 49 and Families with Children with an Average HH size of 2.5+ within a 2-mile radius of a SONIC®.

Fast Franchise Facts Franchising Since: 1959 Multi-Unit Franchisee Operating Units: 86% Total Franchise Operating Units: 3,126 Company Operating Units: 396 Capital Investment: $1.0M - 1.6 + land costs for Free-Standing Franchise Fee (per unit): $45,000 Royalty Fee (per unit): 5% Max. of Gross Sales Advertising Fee (per unit): 5% Earnings Claims: Yes Build-Out Options: Free Standing with Drive-In Stalls, Indoor Dining, Airport, In-line, C-Store and Mall Available Territories: CA, FL, GA, Hawaii, IL, IN, MA, NJ, NY, NC, RI, WV, WY, And International

SITE LOCATION

Assistance SONIC® assists you at multiple phases from Real Estate Site Selection to Site Design. Other types of assistance include Architectural Building Design, Engineering support, Review of Site during Due Diligence phase, Construction Management and we provide an Approved Vendor list.

Contact

Qualifications

Sr. Directors of Franchising:

SONIC’s Financial Requirements for 2 units = $1.0M liquidity/net worth of $1.0M. For 5+ units = $2.0M liquidity/ net worth of $2.0M. We are looking for active ownership, a restaurant background by at least one operating partner, the ability to develop, lead and inspire a management team, strong entrepreneurial skills, active community membership and preferably retail sales experience.

Lori Osley, NE Region (405) 623-8685 Lori.osley@sonicdrivein.com Craig Sherwood, West Region (972) 989-7705 Craig.sherwood@sonicdrivein.com Steve Bailey, Central and SE Region (303) 968-4482 Steve.bailey@sonicdrivein.com

SonicFranchises.com

MULTI-UNIT BUYER’S GUIDE 2014

MULTI-UNIT

Buyer’s Guide

FOOD

Demographics

• Population of 30,000 50,000 within the immediate trade area (3-5 miles, dependant on the market)

™

OPPORTUNITY

Description sweetFrog Premium Frozen Yogurt provides an unparalleled experience in every cup! Our extensive self-serve toppings bar, family-friendly environment, and wide selection of flavors answer the question: “How do you sweetFrog?” Add our lovable mascots, Scoop and Cookie, and you’ll see why customers across the nation are embracing sweetFrog! The F.R.O.G. in sweetFrog stands for Fully Rely On God, and we represent that spirit by being a good neighbor everywhere we go.

• High traffic retail centers with a large retail anchor • Easy ingress/egress with ample parking • Free Standing optional • Family/Children focused retail/activity co-tenancy preferable

Fast Franchise Facts Franchising Since: 2012 Multi-Unit Franchisee Operating Units: 76.05% Total Franchise Operating Units: 149 Company Operating Units: 73 Capital Investment: $282,500 - $467,500 Franchise Fee (per unit): $30,000 Royalty Fee (per unit): 5% Advertising fee (per unit): 1% Earnings Claims: Yes Build-Out Options: Inline and Free Standing Territories: Northeast, Great Lakes Region, & the Southeast

Qualifications sweetFrog is seeking committed entrepreneurs eager to help grow our brand in their local communities. Candidates will be evaluated based on operational experience, financial ability, and a passion for our brand.

MULTI-UNIT BUYER’S GUIDE 2014

SITE LOCATION

Assistance Each sweetFrog Franchisee recieves guidance throughout the buildout process; from market and demographic analysis, to retail site selection approval, to construction specifics with our seasoned operations team. Training is provided in our training facility, and on-site for your Grand Opening.

Contact Raven Fisher Director of Franchise Sales (804) 835-6761 raven.williams@sweetfrog.net sweetfrogyogurt.com

MULTI-UNIT

Buyer’s Guide

FOOD SITE LOCATION

Assistance Full real-estate, design OPPORTUNITY

and construction and project

Description TCBY and Mrs. Fields Pioneered the Yogurt and Cookie Industry over 35 years ago. Today with our new Dual-Brand Stores, we are poised for record growth in 2014. We are actively seeking Single and Multi-Unit owners, as well as Area Directors, and Master Franchisee’s in available territories. For a limited time, we are offering BOTH Iconic brands under one roof, for only one franchise fee.

management support provided nationwide.

Demographics With over 900 locations in more than 33 countries worldwide, we are a global brand that is growing fast.

Fast Franchise Facts Franchising Since: 1990 Multi-Unit Franchisee Operating Units: 54% Total Franchise Operating Units: 880 Company Operating Units: 5 Capital Investment: $208,000 - $419,000 Franchise Fee (per unit): $35,000

We look for A+ sites to ensure our Franchise partners are primed for success. Our new Dual Brand Locations combine 3 revenue sources with TCBY Frozen Yogurt, Mrs. Fields Bakery, and Gifting Stations supported by our $50 million dollar MrsFields.com gifting business.

Royalty Fee (per unit): 6%

Contact

Advertising fee (per unit): 3%

Todd Haavind VP, Franchise Sales

Earnings Claims: No Build-Out Options: Inline, Free Standing, Kiosk, Malls, Airports, Universities, Dual branded

(866) 728-6999 thaavind@famousbrandsintl.com franchise.tcby.com

Available Territories: All

MULTI-UNIT BUYER’S GUIDE 2014

MULTI-UNIT

Buyer’s Guide

FOOD

Demographics Preferred Demographics (within 3 mile radius): • R esidential population: 35,000 • M edian household income $50,000

OPPORTUNITY

Description The Brass Tap creates a Premium Beer Experience by offering up to 60 craft beers on tap, more than 300 varieties of imports, local craft beer and a selection of premium wine and cigars. In addition to the premium beverage experience, live music is an essential element of The Brass Tap. We strive to create a unique atmosphere where the vibe is upbeat, but casual and you won’t miss game day sports.

Qualifications Minimum net worth per location $200,000. Liquid Assets: $100,000 per location. No previous experience. Multi-unit agreements available. Franchise term 10 years. Training 5 weeks.

aily traffic counts • D 20,000 vehicles per day minimum • Average Age 25-49

Fast Franchise Facts Franchising Since: 2008 Multi-Unit Franchisee Operating Units: 3 Total Franchise Operating Units: 12 Company Operating Units: 1 Capital Investment: $385,000 - $725,000 Franchise Fee (per unit): $35,000 Royalty Fee (per unit): 4% Advertising fee (per unit): 1.5% Earnings Claims: No Build-Out Options: Regional-High End Malls, Grocery/ Retail Centers, Life Style & Strip Malls Available Territories: All States and markets.

SITE LOCATION

Assistance Complete site selection assistance with site location, building layout design and construction assistance Design manual and specifications provided.

Contact Peter Petrosian Chief Development Officer ppetrosian@fscfranchiseco.com (813) 226-2333 Ext. 224 thebrasstap.com

MULTI-UNIT BUYER’S GUIDE 2014

MULTI-UNIT

Buyer’s Guide

FOOD

Fast Franchise Facts

Qualifications

Franchising Since: 1971

Togo’s seeks individuals with a positive attitude, strong customer focus; and previous management experience. For 3 or more Restaurant Developments, we require liquid assets of $450,000 and a net worth of $900,000.

Multi-Unit Franchisee Operating Units: 50% Total Franchise Operating Units: 244 Company Operating Units: 6 Capital Investment: $200,500 - $448,500 OPPORTUNITY

Description Togo’s offers the best in class field operations support; average unit volumes that are among the highest in the sandwich franchise category; low investment and a small footprint; fresh, wholesome ingredients including bread, premium meats, and chicken that is 100% natural; deli-style model with a personal touch; brand loyalty from our guests for 40 years; single unit and multiple unit development opportunities.

Franchise Fee (per unit): $21,000 - $30,000 Royalty Fee (per unit): 5%

Rankings

Advertising Fee (per unit): 3% Earnings Claims: Yes Build-Out Options: Inline, free standing, non-traditional locations Available Territories: California, Arizona, Nevada, Washington, Utah, Idaho, Colorado, and Oregon SITE LOCATION

Assistance Togo’s is contracted with Javelin Solutions to provide our franchisees support during the site selection and acquisition process.

Contact Kim Rogers Franchise Sales Manager (877) 718-6467 franchisesales@togos.com togosfranchise.com

Togo’s was ranked in Entrepreneur Magazine’s Franchise 500 for 2014 and 2013.

Demographics Togo’s is growing and developing in the western states of California, Arizona, Nevada, Washington, Utah, Idaho, Colorado and Oregon. Our customers are frequent QSR consumers that seek big, meaty sandwiches.

MULTI-UNIT BUYER’S GUIDE 2014

MULTI-UNIT

Buyer’s Guide

FOOD

Demographics Total household population greater than 18K within a 7-9 min drive time Median income $50k Strong retail area with quality co-tenants. High visibility a must

OPPORTUNITY

Description Don’t settle for good—go for great. Toppers delivers deliciously innovative House Pizzas and World Famous Topperstix to our fanatical fans, all with unmatched service and a contagiously irreverent attitude. We’re not just aiming to outdo the generic pizza mega-chains, we’re taking over the world. For more than 20 years we’ve perfected a proven pizza delivery brand model. With over 50 locations currently open, there’s still time to stake your claim. But like anything involving Toppers Pizza, we can’t guarantee how long it will last. Join our takeover.

We love dense residential areas, colleges, hotels, business parks, hospitals, and entertainment districts We indulge the pizza freak in all of us

Fast Franchise Facts Franchising Since: 2000 (founded in 1991) Multi-Unit Franchisee Operating Units: 65% Total Franchise Operating Units: 39 Company Operating Units: 18 Capital Investment: $302,042 - $526,453 Franchise Fee (per unit): $30,000 Royalty Fee (per unit): 5.5% Advertising Fee (per unit): 3% National /4.5% local Earnings Claims: Yes Build-Out Options: End Cap, Inline, Freestanding Available Territories: Nationwide multi-unit opportunities available (except for CA, NY, WA)

Contact Mark P. Cairns | Director of Franchise Development (262) 458-1609 | (615) 838-7181 cell mcairns@toppers.com toppersfranchise.com SITE LOCATION

Assistance Our real estate department will educate franchisees on the entire real estate development process, including real estate broker selection, market demographics & site selection. Toppers experienced construction team will support the design and construction management process from start to finish.

MULTI-UNIT BUYER’S GUIDE 2014

Qualifications Seeking fanatical business owners whom are well-funded and capable to develop and manage a store level operations team. Owner/Operators or Equity Operating Partners. Financial Qualifications 3-5 units Liquidity $350-$500k Net worth $750k-$1.5M Franchise Fee: $30,000 units 1-4, $20,000 subsequent Financial Qualifications Single unit Liquidity $150k Net worth $500k Franchise Fee: $30,000

Rankings • Top 50 Breakout Chain by Nation’s Restaurant News in 2013 • Entrepreneurs Top 500 List in 2013 and 2014

MULTI-UNIT

Buyer’s Guide

FOOD

Rankings & Awards Recognized for its paradigmshifting pizza, industry-leading QSR Magazine named Uncle Maddio’s “Ones To Watch,” predicting the chain’s franchise’s remarkable offerings and growth potential.

OPPORTUNITY

Description Uncle Maddio’s Pizza Joint is the original create-your-own fast casual pizza restaurant. Operating 20 restaurants in six states, Uncle Maddio’s is the fastest growing fast casual pizza brand in the US. Our pizzas are completely customizable, made-to-order, and served up fast. We’re seeking seasoned restaurant operators and successful entrepreneurs who want to grab hold of the best franchise opportunity they can find! We’ll guide you through every step along the way. SITE LOCATION

Assistance Our veteran real estate team helps franchisees throughout the site selection and lease negotiation process, while our experienced construction and design team will provide you with customized assistance from the first stages of development through the final construction phase.

Fast Franchise Facts Franchising Since: 2007 Multi-Unit Franchisee Operating Units: 95% Total Franchise Operating Units: 20 Company Operating Units: 1 Capital Investment: $400,000 - $600,000 Franchise Fee (per unit): $25,000 Royalty Fee (per unit): 5% net sales Advertising Fee (per unit): 2% net sales Earnings Claims: No Build-Out Options: Non-Traditional, End Caps, Free Standing, Malls, Airports Available Territories: Most States

Contact Roger Wagerman | VP, Franchise Sales & Partner Development (404) 929-6654 franchising@unclemaddios.com

Demographics Target demographics range greatly by location given Uncle Maddio’s success in large and small markets. For more details on a market of interest, please contact our franchise development team.

Qualifications

unclemaddios.com

Potential franchisees should have liquid assets of $100,000 & net worth of $400,000. We are looking for partners who share in the same culture and values that we do with a proven track record of success. Servant leadership, strong operations background and commitment to giving back to the community are a must.

MULTI-UNIT BUYER’S GUIDE 2014

MULTI-UNIT

Buyer’s Guide

FOOD

Demographics

OPPORTUNITY

Description Watermill Express is the industry leader in drive-up, self-serve pure drinking water with over 1,300 locations nationwide and 30 years of operating experience. Our concept is simple – provide safe, affordable drinking water to customers. Our proprietary water purification system and patent pending dispensing equipment ensure great tasting water in every drop. We also offer the industry’s premier brand of vended ice made exclusively from our pure drinking water. The world become a better place with Waterocks® Ice in your glass!

Fast Franchise Facts

Qualifications

Royalty Fee (per unit): 8%

Turn two unused parking spaces into a revenue generating franchise. Our concept has a low employee requirement. This is an ideal opportunity for the Multi-Unit Owner looking to expand with a non-competing concept. We are tailored for large developers interested in 20+ units each. We have a tested concept with over 1,000 company stores and key territories still available.

Franchising Since: 1989 Multi-Unit Franchisee Operating Units: 30% Total Franchise Operating Units: 300 Company Operating Units: 1,004 Capital Investment: $60,000 - 250,000 Franchise Fee (per unit): $5,000 Advertising fee (per unit): 1% Earnings Claims: Yes Build-Out Options: Free standing 9’x12’ kiosk, inline concept, storefront concept. Inquire for additional custom applications. Available Territories: Multi-unit national and international territories available

SITE LOCATION

Assistance Bottled water is a $11 billion dollar industry. Everyone needs safe, affordable, water to drink. Our experts will help you figure out where your locations will work best. We are looking for growth oriented partners serious about quality operations.

Your successful multi-unit business already has a captive customer base. Increase sales by installing a Watermill Express location in your parking lot. Our customers fill-up their water bottles, on average, once per week driving loyal traffic to your existing concepts. Watermill Express customers are 18-49 and want convenience and reliability. Easy access, high visibility, neighborhood locations, proximity to grocery stores, recreational areas, construction trade routes, are all favorable attributes. Customers use Waterocks® Ice for all of their outdoor summer activities and love the convenience of a drive-up facility.

MULTI-UNIT BUYER’S GUIDE 2014

Rankings & Awards Our customers have voted us #1 in Taste! All of our locations are computer monitored and maintain the highest level of service in the nation. We support our communities through water donations/sponsorships and are proud to have saved over 500,000,000 plastic bottles from being thrown into the nation’s landfills.

Contact Matt Reinick (303) 659-1573 matt.reinick@watermillexpress.com watermillexpress.com

MULTI-UNIT

Buyer’s Guide

FOOD

Demographics

OPPORTUNITY

Description With more than 10 straight years of same store sales increases and over 600 locations nationwide, Wingstop is one of the fastest-growing franchises for single-unit and multi-unit operators. Wingstop offers a limited, high-quality menu with simple operations that appeal to experienced restaurateurs and entrepreneurs with the drive and passion to own a business. Wingstop keeps the sole focus on fresh, cooked-toorder wings and side dishes like fresh-cut seasoned fries. Due to that simple operating platform, the system is 95% franchise owned and operated.

Fast Franchise Facts Franchising Since: 1997, founded 1994 Multi-Unit Franchisee Operating Units: 55% Total Franchise Operating Units: 605 Company Operating Units: 19 Capital Investment: $242,787 - $569,528 Franchise Fee (per unit): $30,000 Royalty Fee (per unit): 5% Advertising Fee (per unit): 2%

Rankings & Awards

Earnings Claims: Yes

• 10 Years Same Store Sales Increases

Available Territories: Northeast, Southeast, Midwest, Northwest States

• Fastest Growing Franchises #47 Entrepreneur 2014 • Franchise 500 List - #77, Entrepreneur 2013 • Top 100 Movers & Shakers #26, Fast Casual 2012 • Top 10 Fastest Growing Concept, Technomic 2012

Build-Out Options: Inline, non-traditional (airports, college campuses)

Contact David Vernon | Chief Development Officer (972) 331-7565 dvernon@wingstop.com wingstopfranchise.com | wingstop.com

Wingstop restaurants are generally neighborhood service restaurants (2-3 mile radius) with a majority of takeout sales. We primarily rely upon a seven minute drive-time base in urban markets and a two mile population base of 40,000 or more. In non-urban environments, the sales radius may be larger but we strive for a target population base of not less than 50,000. A typical Wingstop is located on major traffic arteries with not less than 20,000 cars per day.

Qualifications Single-unit operators: no restaurant experience required. Minimum net worth $400,000; liquidity of $200,000. Multiunit developers: liquidity totaling $200,000 per store developed. Wingstop training guides franchisees from site selection to construction and ongoing operations. SITE LOCATION

Assistance The Wingstop real estate and development team use the latest analytical programs to assist with site selection and demographics. Stores feature a small restaurant footprint of 1600 - 2000 sq. feet, seat 3550 people, and average 75% carryout service - ideal for inline shopping centers.

MULTI-UNIT BUYER’S GUIDE 2014

MULTI-UNIT

Buyer’s Guide

FOOD

Demographics Median Age: 22 – 45 Min. Avg. Household Income: $45,000 Min. Traffic Counts: 20,000+ ADT on primary artery Seating Inside: 50 – 90

OPPORTUNITY

Description As a Zaxby’s licensee, you will be operating an independent franshise business, but you will benefit from being a part of a brand that has exhibited steady growth and success in a wide range of markets across the Southeast. You will be provided with a detailed set of operations manuals, as well as extensive marketing materials. ZFI currently holds an annual conference and assigns to each licensee an operations consultant.

Site Size: .80 to 1.25 acres Trade Area: 30,000 + SITE LOCATION

Assistance Zaxby’s will provide support that includes real estate guidelines, architectural, construction and engineering assistance.

Qualifications Fast Franchise Facts Franchising Since: 1990

Collective net worth of at least $700,000, with liquid assets greater than $400,000

Total Franchise Operating Units: 600 Company Operating Units: 101 Capital Investment: $215,100 - $655,100 Franchise Fee (per unit): $35,000 Royalty Fee (per unit): 6% Advertising fee (per unit): 2.5% - 5% Earnings Claims: Yes Build-Out Options: Free standing Available Territories: Currently operating in 16 states, call for details.

MULTI-UNIT BUYER’S GUIDE 2014

Contact Tray Doster, CFE Senior Manager, Franchise Development (706) 389-7158 tdoster@zaxbys.com zaxbysfranchising.com

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