Growth Club
1851 Growth Club
Comparing Franchise Brands in the Retail Industry
Breaking down the number of locations and FDD Items 7 and 19 for some of today’s leading retail brands.
The retail industry is one of the broadest and most diverse spaces in franchising—and therefore one of the most exciting to watch. And as long as consumers are using, wearing out and buying up new products, the retail business will continue booming.
Though comparing what retailers sell and the services they provide may feel like comparing apples to oranges (or bird seed to batteries), their franchise disclosure documents (FDDs) can make or break a brand for potential owners vetting their options. These documents break down franchises into items such as estimated initial investment (Item 7), and financial performance representations (Item 19). We’ve broken down the FDD details for 10 major franchisors to help paint the picture of today’s retail landscape.
Locations: 700-plus
Item 7: $189,250 to $366,350
Item 19: $1,394,889 average revenue for top quartile
Batteries Plus Bulbs is ranked No. 114 in Entrepreneur Magazine’s Franchise 500 this year, and for good reason. The franchise offers multiple revenue streams through retail, business accounts and eCommerce. The franchise sells more than 85 million batteries and light bulbs annually, with business accounts offering a prime opportunity to spur growth through community-based relationships.
Locations: 450-plus
Item 7: $281,000 to $1,133,300
Item 19: $2,811,785 average sales
Ranked No. 172 on Entrepreneur Magazine’s Franchise 500 list, Big O Tires is an automotive industry brand to watch with a presence across 25 states. The brand offers a 10-year 0% royalty rate for converted businesses, as well as a waived $30,000 franchise fee for U.S. military veterans and first responders.
Locations: 300-plus
Item 7: $350,000 to $750,000 with no royalties
Item 19: $2.3 million average unit volume
Already in six continents, Danish furniture franchise BoConcept plans to grow its global presence to more than 600 stores through targeting multi-unit operators in the next few years. In addition to sophisticated furniture designs that are at once functional and chic, the brand offers a personalized interior design service to provide franchisees with a powerful selling tool. The brand is also growing its B2B business, building its presence in residential, office and hospitality settings.
Locations: 36
Item 7: $136,700 to $334,925
Item 19: $1.1 million average unit store sales
Ranked No. 261 on Entrepreneur Magazine’s Franchise 500 list, DreamMaker has seen its average annual sales increase by more than 117% since 2011. The faith-based company offers options to start a business or convert an existing remodeling business.
Locations: 2,100-plus
Item 7: $181,650 to $459,587
Item 19: $400,000 to $899,999 average annual sales
Founded in 1954 and franchising since 1956, Midas International estimates that auto repair is a $381 billion industry and has franchise locations all over the world. In 2019, the brand was named “Americas Best Customer Service” by Newsweek and is ranked No. 301 in Entrepreneur Magazine’s Franchise 500. The brand offers to waive the $30,000 franchise fee for U.S. military veterans as well as first responders.
Locations: 450-plus
Item 7: $460,700 to $995,400
Item 19: $2,228,312 million average unit volume
Ranking No. 46 in Entrepreneur Magazine’s Franchise 500 and No. 1 for the pet industry for the fifth year in a row, Pet Supplies Plus diversifies its revenue streams through food and supply sales, grooming, self-serve pet washes and hosts adoption events. With a presence in 33 states, the brand estimates that the pet supply industry has expanded 6.5% year-over-year, even during the recession.
Locations: 3,480-plus
Item 7: $355,392 to $565,190
Item 19: Over $2.8 billion annual revenue
Rent-A-Center is currently undergoing a major refranchising effort for its corporate-owned stores, leveraging multi-unit operators to convert groups of 30 to 50 stores to local ownership. Ranked No. 200 in Entrepreneur Magazine’s Franchise 500 and a ubiquitous name in the rent-to-own space, the franchise occupies an estimated 35% of the entire U.S. market.
Locations: 175
Item 7: $224,000 to $413,500
Item 19: $969,829 average gross sales
Automotive franchise Tuffy is ranked No. 273 in Entrepreneur Magazine’s Franchise 500. Founded in Detroit, the established brand has more than 45 years of experience in the auto repair industry. Tuffy offers a wide range of services, including brakes, shocks, struts, springs, alignment, front-end, oil change, mufflers, tires, air conditioning, batteries, starting and charting, flush and fill, and C.V. joints.
Locations: 332
Item 7: $150,837 to $260,991
Item 19: $570,588 average gross sales
Wild Birds Unlimited is ranked No. 132 in Entrepreneur Magazine’s Franchise 500, and is ranked second overall and No. 1 in Franchise Business Review’s Franchisee Satisfaction Award in the retail category, among other accolades. The retail store sells bird feeding and watching supplies, birdhouses, feeders, food and more.
Locations: 326
Item 7: $160,000 to $394,500
Item 19: $1,387,745 median gross revenue
Wireless Zone is the largest independent Verizon Wireless retailer in the country. On its website, the brand purports that the number of mobile devices around the world is expected to reach 9.2 billion by 2020. The franchise sells wireless devices, smart home products, Bluetooth accessories and more. Wireless Zone offers 50% off the franchise/transfer fee for military veterans.
*This brand is a paid partner of 1851 Franchise. For more information on paid partnerships please click here.
