Multi-Unit Franchisee Magazine Issue III, 2012 | Page 14

Services Stats

Services by the Numbers

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We asked FRANdata for the numbers on franchised
services brands, highlighting trends, growth (and shrinkage),
and brands on the move. Here’s what they found.
n 2012, franchised services brands operate in 14 industries
across nearly 100 sectors. From 2000 through 2011, the
number of franchised services brands operating in the U.S.
nearly tripled, from 400 to 1,100.
Number of Franchised Services Brands 2000 - 2011

tors among the 10 fastest-growing services sectors in both the
2000–2010 and the 2005–2010 periods.
Fastest-growing services brands
The fastest growing services brand from 2000–2010 was The
Mutual Fund Store, which increased from one franchised unit
to 54 after peaking at 58 in 2008. In fact, along with Interface
Financial Group, two financial services brands made the top ten.
Ten Fastest Growing Services Brands 2000 - 2010*

Services by the unit
The number of franchised units in the services sector increased
between 2000 and 2008 from about 82,000 to more than 130,000.
In 2009, however, they took a beating after the economic crisis that
hit the country a year earlier. After growing at an annual average
of 5.9% between 2000 and 2008, the number of units operated
by franchised services brands declined by 5.7% in 2009. This decline was almost halted in 2010, and based on a small sample of
brands for which 2011 franchised unit numbers were available,
brands in this sector increased their franchised units again, by an
average 1% from 2010.

*Compound Annual Growth Rate

However, none of these brands was among the 10 fastest-growing
concepts from 2005–2010. Over the past five years, hair care and
child-related services brands grew their franchised units faster.
Fastest Growing Services Brands 2005 - 2010*

Growth of Franchised Units in the Services Sectors

*Compound Annual Growth Rate

Top sectors by unit growth
Overall, services brands increased their franchised units at a
CAGR of 4% from 2000–2010. However, for 2005–2010, this
rate decreased to 2%. Over the entire decade, computer repair
and security were the two fastest-growing sectors (by franchised
units). Hair care and pet-related services were the only two sec-

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Multi-Unit Franchisee Is s ue III, 2012

Largest services brands
Not surprisingly, the largest brands in terms of franchised unit
numbers are in the maintenance services and the business-related
sectors. Jani-King (9,200) and Jackson Hewitt (5,400) led the pack
with the most franchised units as of 2010. Both concepts were
significantly affected by the economic crisis, with their franchised
units peaking in 2007 and then declining continuously since. JaniKing’s franchised unit count fell 8% between 2007 and 2010, and
Jackson Hewitt’s fell 6%; for the latter, the trend worsened in
2011, when its unit count dropped another 11%.