MULTI-UNIT
NEED TO
KNOW
Buyer’s Guide
SERVICE BRANDS BY THE
NUMBERS
E
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
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