2015’s Fastest Growing Franchises

The fastest growing franchises in 2015 were determined based on those franchises that added the most new units. According to Entrepreneur magazine, the top 5 are:

  1. Subway
  2. Dunkin’ Donuts
  3. Cruise Planners
  4. Jimmy John’s Gourmet Sandwiches
  5. Vanguard Cleaning Systems

See the rest of the list at entrepreneur.com.

Subway’s spot at the top of the list is a bit surprising given the Jared Fogle scandal and the death of co-founder Fred DeLuca, but Bloomberg Business reports, “Subway has about 44,000 shops globally, including 27,000 in the U.S., and opens five more a day on average.” Subway is a privately-held company with no company stores; all units are run by franchisees. Bloomberg reports that each franchise, “costs $15,000 in initial fees and 8 percent of weekly sales in royalties to its owners. Franchisees also pay 4.5 percent toward advertising.”

Despite its #2 ranking, Dunkin’ Donuts reports slowing growth and the closure of 100 outlets. “The restaurants are being closed in 2015 and 2016 as convenience store chain Speedway LLC plans to exit about 100 locations with Dunkin’ Donuts franchise outlets,” Dunkin’ Brands Group reported.

In November, 2015, regarding 3rd place Cruise Planners, it was reported, “Of the 1,000-plus Cruise Planners franchisees, 69% had year-over-year growth so far in 2015, compared with 54% who responded to a similar ASTA survey. Cruise Planners CEO Michelle Fee reports that success is due in part to database tool Smart Select, “that uses client demographics to make marketing more targeted. Agents that used Smart Select typically had higher sales.”

Jimmy John’s Gourmet Sandwiches continued growth have placed the franchise in the top 5 fastest growing franchises for 2015, but the high cost of opening a franchise, reported at $323,000 to $544,000 plus the cost of real estate, and employee dissatisfaction may hamper growth moving forward.

Vanguard Cleaning Systems has 2,900 independently owned and operated franchised businesses in North America.

It should be noted that there are several different lists for top franchises using different criteria and showing disparate results. Entrepreneur based rankings on the number of new units rather than revenue growth.