Companies

**Executive Summary** Best Western offers a massive global footprint with 1,801 outlets and a relatively low royalty rate of 3.5%, requiring a total investment of approximately $566K. However, the brand is currently contracting, evidenced by the closure of 86 locations last year alongside 54 terminations and a lack of financial performance disclosures (Item 19). * ✓ **Scale & Costs:** Extensive brand reach with a moderate total investment and below-industry royalty fees. * ⚠ **Network Health:** Experiencing negative growth (net loss of 54 units) with high termination rates. * ⚠ **Transparency:** Fails to provide AUV or Item 19 earnings claims, obscuring potential profitability. * ⚠ **Legal:** Carries a history of litigation.

Kona Ice demonstrates high scalability and unit stability with 1,670 outlets and aggressive expansion (209 new units in the last year), underpinned by zero terminations and a clean legal history. While the total investment is relatively modest ($173K–$222K) and franchise fees are low, the absence of a royalty structure raises questions about franchisor revenue models and ongoing support incentives. However, the lack of Item 19 financial performance representations is a significant transparency gap, prohibiting due diligence on potential unit profitability. * ✓ **High Growth & Retention:** Expanded by over 200 units last year with a negligible closure rate (4) and zero terminations. * ✓ **Low Barrier to Entry:** Minimal upfront capital ($15K fee) and no ongoing royalty payments. * ⚠ **Opaque Economics:** Absence of an Item 19 and AUV data hides the true earnings potential and unit-level financial health.

Supercuts offers a mature, low-cost entry into the haircare sector with 1,798 units and a manageable total investment range of $185,930 to $323,460. ✓ The brand provides strong unit economics, evidenced by an AUV of $322,306 and the absence of litigation or bankruptcy. ⚠ However, the system is contracting rapidly, evidenced by the closure of 303 outlets last year compared to just 119 openings, signaling a significant risk to current network stability.

**Executive Summary** Best Western offers a well-established hospitality brand with a total investment averaging $577K and a moderate 3.5% royalty rate. However, the system faces a concerning contraction, evidenced by last year’s closure of 95 outlets exceeding the 31 openings, alongside the absence of financial performance disclosures (Item 19). **Investment Overview** * ✓ **Scale & Stability:** Massive footprint of 1,770 units and a relatively low royalty rate (3.5%) compared to industry standards. * ✓ **Initial Investment:** Total investment of $577K is accessible compared to premium hotel brands. * ⚠ **Shrinking System:** Net unit loss of 64 locations last year (95 closed vs. 31 opened). * ⚠ **Lack of Transparency:** Does not provide an Item 19, leaving AUV and profitability potential unknown. * ⚠ **Risk Factors:** Presence of litigation history and a high number of terminations (31).

**Executive Summary** Liberty Tax Service operates a large, nationwide network with a relatively low initial investment barrier of $50K-$71K, though the lack of disclosed average unit earnings (AUV) obscures potential returns. The brand is currently contracting rapidly, evidenced by the closure of 123 locations last year compared to only 56 openings, alongside a high franchise churn rate and a history of litigation and bankruptcy. While the 14% royalty is steep, the significant risk lies in the system's instability and the absence of transparent financial performance data. ✓ **Positives:** * **Scale:** Extensive footprint with over 1,700 outlets and recognizable brand presence. * **Accessibility:** Lower total investment cost ($50k+) compared to many other national franchises. ⚠ **Concerns:** * **Network Contraction:** Closed more than double the number of outlets opened last year (-123 vs. +56). * **Churn:** High termination rates (73) indicating significant franchisee dissatisfaction or failure. * **Opaque Economics:** No Item 19 AUV data provided, making return on investment impossible to verify. * **Legal & Financial History:** Established history of both litigation and bankruptcy.

Century 21 offers an accessible entry point into the real estate brokerage sector with a massive global footprint and a low initial franchise fee. However, the brand faces significant headwinds, evidenced by the closure of 145 locations last year against only 72 openings and a lack of financial performance disclosures (Item 19). **Positives & Concerns:** * ✓ **Low Barrier to Entry:** Initial franchise fees range from $0 to $25,000. * ✓ **Established Network:** Operates over 1,700 outlets globally. * ⚠ **Network Contraction:** Closed more than double the number of outlets opened last year (145 vs. 72). * ⚠ **Lack of Transparency:** Does not provide an Item 19 earnings claim or AUV data.

**Executive Summary** Kumon presents a scalable, low-barrier entry opportunity with a modest franchise fee of $2,000 and a total investment cap below $165K, facilitating a network of over 1,600 outlets. While the system continues to expand, unit economics remain opaque due to the lack of an Item 19 financial performance representation, shifting the due diligence burden entirely to prospective franchisees. Operators should weigh the growth potential against the historical attrition rate, noting that over 50 centers were either terminated or ceased operations in the last year alone. **Key Indicators** * ✓ **Low Capital Barrier:** Minimal franchise fee ($2K) and reasonable total investment range ($73K–$165K). * ✓ **Established Scale:** Large footprint of 1,689 outlets indicates brand recognition and a proven model. * ✓ **Clean History:** No history of litigation or bankruptcy. **Concerns** * ⚠ **Zero Financial Transparency:** Franchisor does not provide an Item 19, offering no visibility into average unit revenues or profitability. * ⚠ **Significant Churn:** A combination of 37 closures, 20 terminations, and 3 ceased operations suggests notable

**Executive Summary: Kumon** Kumon represents a massive, global network with a low barrier to entry due to a minimal $2,000 franchise fee and an investment range below $170k. However, the lack of an Item 19 earnings claim and undisclosed AUV makes return on investment difficult to quantify, despite steady unit expansion. While the system avoids major systemic risks like bankruptcy or widespread litigation, the presence of 27 closures and 20 terminations last year indicates operational volatility. **Analysis:** * **Scale:** Established footprint with 1,689 outlets and positive net growth (opened 67 vs. closed 27). * **Investment:** Exceptionally low startup costs for a major brand ($73k–$165k total investment). * **Economics:** ⚠ Major red flag due to zero financial performance representation (No Item 19/AUV). * **Stability:** ⚠ Non-trivial attrition rate involving 20 terminations alongside natural closures.

The Maids offers a highly scalable residential cleaning model with strong unit economics, boasting an Average Unit Volume (AUV) of $1.1M and a relatively low total investment range of $81K–$159K. However, potential investors should approach with caution as the system is currently contracting, having closed more locations than it opened last year alongside high termination rates. **Key Analysis:** ✅ **Strong Unit Economics:** High AUV of $1.1M supports healthy potential returns. ✅ **Scale:** Large footprint with 1,635 total outlets indicates a proven brand. ✅ **Clean History:** No history of litigation or bankruptcy. **Key Risks:** ⚠ **System Contraction:** Network shrank last year (69 closures vs. 66 openings). ⚠ **High Attrition:** Elevated termination rate (112) suggests significant franchisee distress. ⚠ **Churn:** Ceased operations (14) signal operational challenges for some owners.

**Executive Summary** Comfort Inn and Suites represents a massive, established hospitality network with over 1,600 locations, presenting an accessible entry point with a total investment averaging $307K and a reasonable 6% royalty rate. However, the brand is currently undergoing a contraction phase, evidenced by the closure of 84 locations last year alongside 47 terminations, which signals significant operational churn. While the franchise offers legal stability with no history of litigation or bankruptcy, the lack of disclosed Average Unit Volume (AUV) data obscures potential profitability. **Key Positives & Concerns:** * ✓ **Scale & Stability:** Massive footprint of 1,655 units with a clean legal history (no bankruptcies or litigation). * ✓ **Accessible Investment:** Lower total investment cost ($307K) compared to many full-service hotel brands. * ⚠ **Network Contraction:** Negative unit growth (-54 net locations) driven by high terminations (47) and closures (84). * ⚠ **Opaque Economics:** Failure to disclose AUV makes it impossible to verify top-line revenue potential or unit-level performance.

**Executive Summary** Quality Inn offers a scalable entry into the hospitality market with moderate franchise fees, yet the system is currently contracting as it shed more units than it opened last year. While the brand maintains high legal stability with no history of litigation or bankruptcy, the high number of closures and terminations suggests significant operational challenges for franchisees. * ✓ **Established Scale:** System size of 1,621 outlets provides immediate brand recognition and economies of scale. * ✓ **Clean Legal Profile:** Zero history of litigation or bankruptcy indicates a stable, non-litigious corporate structure. * ⚠ **Negative Network Growth:** The brand closed 104 outlets last year compared to only 54 openings, signaling a decline in footprint. * ⚠ **High Attrition:** Elevated termination and ceased operation rates point to potential unit-level profitability struggles.

The Maids® represents a large-scale residential cleaning franchise with strong unit economics, boasting an impressive AUV of $1.1M and over 1,600 total outlets. While the brand demonstrates high revenue potential and no history of litigation or bankruptcy, investment costs are substantial (starting near $118K) and operational stability is a concern given the high rate of turnover with 74 closures and 34 terminations last year. * ✓ **Strong Unit Economics:** High Average Unit Volume of $1.1M supports the premium franchise fee and investment. * ✓ **Established Scale:** Large footprint of 1,620 outlets indicates brand recognition and market penetration. * ✓ **Clean Legal Standing:** No history of litigation or bankruptcy. * ⚠ **High Churn Rate:** Closed 74 units and terminated 34 franchises in the last year, signaling potential operational difficulties or owner support issues.

**Executive Summary** Applebee’s offers an established, large-scale presence with over 1,500 units and no recent terminations, signaling stability despite a lack of Item 19 earnings disclosure. However, this opportunity demands substantial capital, with total investments ranging from $2.0M to nearly $10M per location. Potential investors must carefully weigh this high barrier to entry against the brand's history of litigation and past bankruptcy filings. **Key Indicators** * ✓ **Scale & Retention:** Massive footprint of 1,587 outlets with zero reported terminations or ceased operations last year. * ⚠ **Financial Opacity:** Lacks an Item 19 earnings claim and does not disclose Average Unit Volume (AUV). * ⚠ **History of Risk:** Carries documented histories of both litigation and bankruptcy. * ⚠ **High Capital Requirement:** Total investment is substantial, ranging up to $9.9M.

**Executive Summary** Hardee’s offers an established QSR platform with significant scale, though current unit economics are tight with a high initial capital requirement relative to sales. The system shows signs of contraction, evidenced by net unit closures last year, offset partially by low royalties and a clean legal and bankruptcy history. **Key Indicators:** * ✓ **Established Scale:** Large footprint of 1,571 outlets. * ✓ **Clean Risk Profile:** No history of litigation or bankruptcy. * ✓ **Brand Recognition:** Long-standing presence in the industry. * ✓ **Accessible Financials:** Provides Item 19 earnings claims. * ⚠ **Negative Unit Growth:** System contracted with 26 closures and no reported new openings last year. * ⚠ **Heavy Investment:** High total investment ($1.4M+) relative to Average Unit Volume ($1.3M). * ⚠ **Capital Inefficiency:** High investment-to-sales ratio suggests a longer return on capital.

Tropical Smoothie Cafe represents a large-scale, established brand with strong unit economics, evidenced by an impressive $1.0M AUV. However, potential investors should exercise caution due to negative network growth last year, where 179 closures outpaced 161 new openings. **Key Factors:** * ✓ **Strong Unit Performance:** High AUV of $1.0M supports potential return on investment. * ✓ **Established Brand:** Extensive footprint with over 1,500 total outlets. * ⚠ **Network Contraction:** High unit turnover with net closures of 18 locations last year. * ⚠ **High Capital Entry:** Total investment ranges up to $814K, requiring significant upfront capital.

Super 8 commands a massive footprint of 1,375 locations, offering a wide investment range that accommodates both modest and high-capital projects. However, the brand is currently contracting, evidenced by the closure of 82 units last year compared to just 19 openings. While the availability of an Item 19 financial performance representation is a positive, the presence of litigation and the net loss of outlets signal significant operational challenges and market saturation.

Smartstyle operates at a massive scale with 463 outlets and a relatively low initial investment, but the system is currently undergoing a significant contraction. While the franchise offers a low 4% royalty fee and provides Item 19 financial disclosures showing an AUV of $263,638, the network shrank by 60 locations last year compared to just 2 openings. This drastic reduction in footprint raises a red flag regarding unit viability and demand for the brand, despite the absence of litigation or bankruptcy.

**Executive Summary** Cold Stone Creamery offers an established brand with over 1,300 locations and a wide initial investment range ($57K–$628K) to accommodate various store sizes. While the franchise maintains high stability with zero reported terminations or closures last year, the lack of Item 19 financial disclosures obscures potential earnings, making due diligence critical. **Positives & Concerns:** * ✓ **Established Scale:** System-wide footprint of 1,364 outlets. * ✓ **Stability:** Zero terminations or ceased operations reported in the last year. * ✓ **Clean History:** No reported litigation or bankruptcies. * ⚠ **Missing Financials:** No Item 19 data (AUV undisclosed) limits visibility into unit-level profitability.

**Executive Summary** Super 8 offers an entry into the economy lodging sector with a massive footprint of over 1,300 units, requiring a significant capital investment ranging from $281K to $6.9M. The system is currently experiencing a drastic contraction, evidenced by the closure of 88 locations last year compared to only 19 openings, alongside a history of litigation. * **Scale & Stability:** ✓ Large, established system with 1,375 outlets. * **Investment:** ⚠️ Highly variable costs require substantial upfront capital. * **Growth:** ⚠️ Network shrinking rapidly (net loss of 69 units in one year). * **Transparency:** ⚠️ AUV is not disclosed, limiting return visibility. * **Legal:** ⚠️ System carries a history of litigation.

Budget Blinds represents a mature, large-scale home improvement franchise with 1,298 outlets and high stability, evidenced by 66 new openings against minimal closures. The total investment ranges from $30K to $110K, though the lack of Item 19 financial disclosures obscures unit-level profitability. Key considerations include a flexible initial franchise fee and zero bankruptcies, though prospective buyers must navigate an active litigation history without verified performance data. **Key Factors:** * ✓ **High Growth & Stability:** Net unit growth of +63 (66 opened vs. 3 closed) indicates a healthy, expanding system. * ✓ **Accessible Entry:** Total investment starts as low as $30,000, offering a relatively low barrier to entry. * ⚠ **Opaque Financials:** No Item 19 or AUV disclosure prevents due diligence on potential earnings. * ⚠ **Legal Exposure:** Franchisor currently has a history of litigation, suggesting potential business practice disputes.

Hilton Franchise Holding LLC presents a highly unusual profile with zero current outlets and no unit activity in the last year, signaling a lack of operational traction or a potential holding entity structure rather than an active franchisor. The investment range is exceptionally volatile, spanning from $2.4 million to over $52 million, which indicates extreme variability in asset requirements. While the absence of litigation and bankruptcy is a positive sign, the lack of Item 19 financial disclosures is a significant red flag that prevents due diligence on potential returns. This opportunity carries substantial execution risk given the lack of established franchisees or transparent performance data.

**Executive Summary: Denny's** Denny's offers a high-volume, legacy dining concept with an attractive Average Unit Volume of $1.9M and a relatively low 4% royalty fee. The investment entry is highly variable ($255K - $3.1M), but the system faces significant headwinds, having closed 72 outlets last year amid a history of litigation and bankruptcy. **Key Metrics & Analysis:** * **Scale:** 1,334 total outlets * **Investment:** $255K - $3.1M * **Royalty:** 4.0% **Positives & Concerns:** * ✓ **Strong Unit Economics:** High AUV of $1.9M suggests significant revenue potential per location. * ✓ **Moderate Royalties:** The 4% royalty rate is competitive for the industry. * ⚠ **Negative Network Growth:** Closed 72 outlets last year. * ⚠ **Significant Risk Profile:** History of litigation and bankruptcies indicates potential operational or financial instability.

Days Inn offers a massive network of 1,326 locations with a relatively low initial franchise fee of $10,000, making it an accessible entry point for budget-conscious hotel developers. However, the system is currently contracting, evidenced by the closure of 100 outlets last year compared to just 28 openings, which signals potential systemic issues or brand fatigue. While the absence of litigation and bankruptcy is a positive sign, the massive variance in total investment costs suggests that location and asset condition are critical variables for success.

**Executive Summary: Aaron’s Sales & Lease Ownership®** Aaron’s represents a high-capital investment opportunity with an established footprint of 1,310 outlets, requiring a total investment between \$283K and \$853K plus a 6% royalty. The brand is currently experiencing significant contraction, evidenced by the closure of 89 units last year, while failing to provide an Item 19 earnings claim or AUV data to validate potential returns. Additionally, prospective franchisees must consider the presence of litigation history as a key operational risk. **Key Indicators:** * ✓ **Established Scale:** Large network of 1,310 total outlets indicates systemic presence. * ✓ **Capital Solvency:** Zero bankruptcy history reported for the franchisor. * ⚠ **Network Contraction:** High unit churn with 89 outlets closed in the last year. * ⚠ **Lack of Transparency:** Does not disclose financial performance representations (Item 19). * ⚠ **Legal Exposure:** History of litigation exists.

**Executive Summary** CleanNet offers a low-cost entry into the commercial cleaning sector with a large, established footprint of over 1,200 units and minimal upfront capital requirements. However, the system is experiencing a significant contraction, evidenced by the closure of nearly 100 units last year, and the decision to withhold financial performance data (AUV) obscures potential earnings. * **Positives:** * ✓ **High Scale:** Extensive network with over 1,200 outlets. * ✓ **Low Barrier to Entry:** Total investment ranges from $15K to $46K. * **Concerns:** * ⚠ **System Contraction:** Net loss of 71 outlets last year (98 closures vs. 27 openings). * ⚠ **Low Visibility:** Average Unit Volume (AUV) is not disclosed, complicating ROI analysis. * ⚠ **Legal Risk:** The franchise has a history of litigation.

Firehouse Subs represents a large-scale, mature sandwich franchise with over 1,200 locations and strong unit economics, evidenced by an AUV of $964K. While the brand maintains steady expansion, potential franchisees must carefully weigh the high total investment range ($380K–$1.4M) and recent closure volume against the system's stability. **Key Factors:** * ✓ **Scale & Economics:** Large footprint with 1,248 outlets and strong AUV ($964K). * ✓ **Growth:** Net unit growth remains positive (62 openings vs. 26 closures). * ⚠ **Investment:** High capital required, ranging from $380K to over $1.4M. * ⚠ **Churn Risk:** 26 outlets closed/ceased operations last year; litigation history exists.

Goosehead Insurance offers a low-cost entry into the insurance sector with a massive 20% royalty split on personal lines, but aggressive expansion has resulted in a churn rate of nearly 10% due to terminations and closures. **Key Indicators:** * ✓ **Scale & Access:** Rapidly growing footprint with 1,198 total outlets and a relatively low initial investment ($40K-$118K) compared to agency revenue potential. * ✓ **Financial Disclosures:** Possesses an Item 19 earnings claim, providing transparency for prospective franchisees. * ⚠ **Unit Economics & Retention:** The 20% royalty rate is exceptionally high, and the closure of 108 outlets alongside 62 terminations last year signals significant difficulty in franchisee sustainability. * ⚠ **Legal Risk:** The presence of litigation history suggests potential disputes regarding the franchisor-franchisee relationship.

**Executive Summary** Days Inn offers a scalable opportunity within the Wyndham portfolio, requiring a moderate franchise fee but presenting a wide total investment range that varies significantly by property type. The brand maintains a large footprint of over 1,200 locations and benefits from strong litigation and bankruptcy profiles, yet faces a notable contraction in unit count. Key risks include a negative net growth trajectory due to high closure rates and the absence of Average Unit Volume (AUV) data, obscuring potential return on investment. **Key Indicators:** * ✓ **Scale:** Established network with 1,235 total outlets. * ✓ **Financial Health:** Clean history regarding litigation and bankruptcy. * ✓ **Disclosure:** Provides an Item 19 earnings claim. * ⚠ **Shrinkage:** Network contracted by 22 units last year (48 closures vs. 26 openings). * ⚠ **Data Transparency:** AUV is not disclosed, limiting visibility into unit-level financial performance.

Brinker International Payback Company, L.p. operates at a massive scale with over 1,200 outlets, yet the system is currently contracting as evidenced by the closure of 14 locations last year compared to only 8 openings. The investment requirement is substantial, ranging from $2.3 million to over $6.3 million, which is a significant barrier to entry despite a relatively low 1.25% royalty fee. Potential buyers should proceed with caution ⚠ as the presence of litigation and the lack of an Item 19 financial performance representation limit transparency into the unit-level economics.

**Executive Summary** Motel 6 offers a highly scalable opportunity with massive brand recognition and a low initial franchise fee, but the financial commitment is volatile and volatile unit economics are obscured by the lack of AUV disclosure. While the system is opening new locations, the high number of terminations nearly matching new openings raises a red flag regarding franchisee support or operational viability. **Key Factors:** * ✓ **Scale & Entry:** Massive footprint of 1,210+ units with a low $5,000 entry fee. * ✓ **Stability:** Zero bankruptcies and established brand presence. * ⚠ **Financial Opacity:** AUV is not disclosed, making return on investment difficult to calculate. * ⚠ **High Churn:** 41 terminations almost completely offset the 45 new openings, indicating retention struggles. * ⚠ **Litigation:** Franchisor carries an active litigation history. * ⚠ **Capital Risk:** Investment range varies drastically from $195K to $8.2M.

**Executive Summary: Smoothie King** Smoothie King is an established, large-scale player with over 1,200 locations and strong unit metrics ($660K AUV), justifying its substantial initial investment range of $346K to $1.3M. While the system maintains positive net growth (85 openings vs. 36 closures), the closure of 24 locations and a history of litigation indicate significant operational challenges and friction within the network. This opportunity offers high brand awareness and scale, but prospective franchisees should scrutinize the reasons behind the recent terminations and legal disputes before committing capital. * **Scale & Economics:** 1,201 outlets with high revenue potential ($660K AUV). * **Investment:** Requires significant capital ($346K–$1.3M+). * **Growth:** Expanding network with 85 new units last year. * **⚠ Concerns:** High number of ceased operations (24) and active litigation history.

Smoothie King commands the smoothie sector with over 1,200 locations and a strong Average Unit Volume of $659,567, though the high initial investment creates a significant barrier to entry. The system is currently contracting, evidenced by the closure of 115 units last year compared to only 85 openings, which signals potential market saturation or unit churn. While the absence of bankruptcy is a positive, the presence of litigation and the 6% royalty fee require careful consideration of the long-term legal and operational costs.

**Executive Summary: Buffalo Wild Wings** Buffalo Wild Wings represents a high-barrier-to-entry opportunity backed by massive scale, with an established footprint of over 1,100 locations. While the brand demonstrates high stability with zero terminations and no litigation history, the significant capital requirement ($2.5M–$4.9M) is not offset by transparent unit performance data, as the franchisor does not disclose financial performance representations (Item 19). **Key Indicators:** ✓ Massive Scale: 1,183 total outlets indicate strong brand recognition and stability. ✓ Clean History: Zero terminations, ceased operations, litigation, or bankruptcies reported. ✓ Moderate Ongoing Fees: 5.0% royalty rate is standard for the industry. **Concerns:** ⚠ **High Capital Risk:** Total investment ranges up to $4.9M, requiring significant leverage. ⚠ **Zero Transparency:** No Item 19 financial disclosures means revenue potential is unverified. ⚠ **Ambiguous Entry:** Franchise fees vary wildly ($12K–$156K) with no disclosed AUV for ROI analysis.

TAKE 5 demonstrates robust unit economics and aggressive expansion, evidenced by an AUV of $1.4 million and the addition of 163 new outlets last year against a single closure. ✓ The availability of an Item 19 disclosure and a clean legal history with no bankruptcy or litigation further de-risks the opportunity. However, potential franchisees must carefully weigh the high initial investment, ranging from approximately $750k to over $2 million, against the 7% royalty fee.