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2006 Growth :: Top 10 New Franchises for 2007 :: Top 10 Home Based Franchises for 2007 :: Top 10 Low - Cost Franchises for 2007 :: General Highlights

Franchise Highlights

Healthy Growth in 2006

• Health–General 1733%

• Specialty/Gourmet Retail Foods 567%

• Real Estate Brokers/Service 533%

• Party-Related Goods/Services 525%

• Fitness Centers 168%

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Top 10 New Franchises for 2007

1. I Sold It
2. United Shipping
3. Massage Envy
4. Super Suppers
5. Dream Dinners Inc.
6. WineStyles Inc.
7. System4
8. N-Hance
9. Growth Coach, The
10. Instant Tax Service

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Top 10 Home Based Franchises for 2007

1. Jani-King
2. Jan-Pro Franchising Int'l Inc.
3. Matco Tools
4. Servpro Industries Inc.
5. Chem-Dry Carpet, Drapery & Upholstery Cleaning
6. Budget Blinds Inc.
7. Bonus Building Care
8. ServiceMaster Clean
9. Jazzercise Inc.
10. Cleannet USA inc.

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Top 10 Low - Cost Franchises for 2007

• Jackson Hewitt tax Service
• RE/MAX Int'l Inc.
• Jani-King
• Curves
• Liberty Tax Service
• Merle Norman Cosmetics
• Kumon Math & Reading Centers
• Jan-Pro Franchising Int'l Inc.
• Chem-Dry Carpet Drapery & Upholstery Cleaning
•  Bonus Building Care

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General Highlights

Pizza Chains Make Up 60% of the U.S. Pizza Restaurant Market
The fastest growth reported in the food industry, for new concepts, in 2006 was in the pizza food sector. All other fast food concepts were absent in the top newest concepts. This may be related to the news about trans fats and may also coincide with the increase in health club in the United States.

1. Ameci In & Out
2. Boston Pizza Intl.
3. Buck's Pizza
4. Captain Tony's
5. Cici's Pizza
6. Domino's Pizza
7. Eatza Pizza
8. Figaro's Italian Pizza
9. Fox's Pizza Den
10. Garlic Jim's Famous Gourmet Pizza

Children's Educational Franchises on the Rise
Educational franchise have a high growth rate , low failure rate with SBA and are popular with lenders. In over five years, the growth rate has been 43% with the five largest centers.

Kumon, Huntington Learning Centers, Oxford Learning Centers, Tutoring Club and Mathnasium. All have seen steady growth.  The Goddard Schools are also thriving as one of the leading brands.

1st Qtr. Growth
2007 there were 87 new franchise concepts during the first qtr. This is twice as many from the same qtr. Of 2006. 

Franchise News
75% of franchises have an initial fee. The fees vary, but most fall in the range of $50,000 and $100,000 according to the franchise association.

The Veterans Transition Franchise Initiative offers a sponsored program for veterans to get a discount on franchising as a way to thank them for serving their country. Over 200 franchises participate and provide qualified veterans savings in acquiring a new franchise. Veterans have the highest success rate over 14% because of their discipline and training.

Growth
Over the past three years, over 900 new concepts started franchising. The strongest growth in the franchise unites was with the building and construction, child-related and service businesses.  

Franchising Momentum of 2006
More franchised units in 2006 seemed to be controlled by multi-unit owners or operators compared to single-unit owners or operators. Momentum seemed to be strong among the operator (according to FRANdata research).

Franchising is a significant component of the U.S. Economy. This is measured by $1.5 trillion economic impact and a total employment of 18 million jobs (according to FRANdata research).