2007 FRANCHISE TIMES Growth despite challenges Top 200 yield higher sales hile October con- jures up thoughts of ghosts and Top 200 Sales Growth by Industry goblins for most Wfolks—and signals the begin- Total ning of Christmas shopping season for the more ambitious All Other among us—here at Franchise Real Estate Services Times headquarters it marks the unveiling of our annual Top 200 Take-Out Food ranking of the country’s largest franchise companies. Travel After months of soliciting sales and unit count data from Retail more than 1,000 companies, Lodging ranging from multinational household names to lesser- Restaurants known franchisors, we offer readers a look back on what the -5% 0% 5% 10% 15% 20% prior year held for some of the largest players in franchising. Without further adieu, then, we present our 2007 Top 200 just the largest 200 franchi- the rankings contain just 300 ranking of the country’s largest sors, we’ve compiled our ‘Up company names, the sales they franchisors based on worldwide & Comers’ ranking of the next depend on come from untold system sales for 2006. Once largest 100 systems, too. And again, not content with ranking we do mean systems. Though Top 200 continued on 25 The top franchise systems ranked by worldwide sales 2006 2005 2004 2003 2002 2001 2000 Worldwide system sales* 444.8 417.9 390.5 327.1 324.3 317.2 302.4 The number of locations-domestic and international-operated by the top 200 franchise systems Total operating locations 408,526 402,647 389,495 356,362 347,820 340,248 325,059 Domestic 285,388 286,011 277,910 258,512 253,595 248,116 236,835 International 123,138 116,636 111,585 97,850 94,225 92,771 88,224 Percent international 30% 29% 29% 27% 27% 27% 27% The breakdown between company-owned and franchised locations Company units 74,517 71,895 70,380 65,874 67,757 65,155 65,307 Franchise units 334,009 330,782 319,115 290,488 280,500 275,732 259,675 Percent franchised 82% 82% 82% 82% 81% 81% 80% * billions of dollars October 2007 Franchise Times 3 n Top 200 Franchise Chains by Worldwide Sales Prior Worldwide Domestic Percent Rank Rank CHAIN PARENT COMPANY Sales ($M) Units Total Units Franchised 1 1 McDonald's McDonald's Corporation 56,800 * 13,774 31,046 74% 2 2 7-Eleven 7-Eleven, Inc. 38,445 1 6,331 31,680 95% 3 3 Carlson Wagonlit Travel Carlson Companies, Inc. 24,020 1,194 4,025 27% 4 4 KFC Yum! Brands, Inc. 14,200 5,394 14,258 71% 5 5 Ace Hardware Ace Hardware Corp. 13,000 3,900 4,700 100% 6 6 Burger King Burger King Holdings Inc. 12,700 *2 7,502 11,184 88% 7 9 Subway Restaurants Doctor’s Associates Inc. 10,000 20,755 26,893 100% 8 7 Pizza Hut Yum! Brands, Inc. 9,300 7,532 12,685 76% 9 10 Wendy's Wendy's International, Inc. 8,727 * 5,948 6,674 78% 10 11 Circle K Convenience Stores Alimentation Couche-Tard Inc. 8,018 1 3,043 6,446 60% 11 12 Marriott Hotels, Marriott International 7,594 * 340 519 39% Resorts & Suites 12 8 Coldwell Banker Realogy Corporation 7,591 3 3,470 4,033 78% 13 23 Hilton Hilton Hotels Corporation 6,879 * 227 499 41% 14 13 Taco Bell Corp. Yum! Brands, Inc. 6,500 5,608 5,846 78% 15 15 Holiday Inn Hotels & Resorts InterContinental Hotels Group 5,673 * 987 1,395 99% 16 14 Blockbuster Blockbuster Inc. 5,523 5,194 8,360 22% 17 20 Sheraton Starwood Hotels and Resorts 5,400 * 195 396 45% Worldwide, Inc. 18 18 Domino's Pizza Domino's Pizza, Inc. 5,103 * 5,143 8,366 93% 19 22 Dunkin' Donuts Dunkin Brands, Inc. 5,000 5,368 7,293 100% 20 17 RadioShack RadioShack Corp. 4,778 6,063 6,248 29% 21 25 Tim Hortons Tim Horton's Inc. 4,750 * 336 3,047 97% 22 21 Applebee's Neighborhood Applebee's International Inc. 4,695 1,841 1,930 73% Grill & Bar 23 16 CENTURY 21 Realogy Corporation 4,126 3 4,432 8,492 100% * Franchise Times Estimate 1 Does not include gasoline sales 2 Domestic units include Canadian 3 Gross Commission Income (GCI) 4 FY ended 8/31/06 5 FY ended 6/5/07 6 Uniglobe does not distinguish between domestic and international units Aaron’s Sale ARCO ampm & Lease Ownership Contacts: Greg Tanner Contacts: Franchise Development Team Phone: 678-402-3445 Phone: 888-894-2676 E-Mail: [email protected] # E-Mail: [email protected] # Web site: www.aaronsfranchise.com 58 Web site: www.arcoampmfranchise.com 39 Aaron’s is North America’s lease-to-own franchise opportunity. The ARCO gasoline offer and the ampm convenience store franchise is Ranked #58 among franchise chains in worldwide sales by unparalleled in the industry and is offered in the states of CA, AZ, NV, WA and Franchise Times, Aaron’s is NYSE-listed with a 50+ year proven OR. Together, ARCO and ampm sites produce about 24 million transactions a month with shop sales exceeding $1.0 Billion in the U.S. in 2006. The ARCO and track record and $1.6 billion in systemwide revenues. We’re ampm brands with its scale, cost structure, customer base and franchise provide reinventing the way a growing and underserved market acquires for a positive differential to compete in our chosen markets. necessities like furniture, appliances, electronics and computers. This advertisement does not constitute an offer of an ampm franchise which can only be made with a Uniform Franchise Offering Circular provided by BP. In addition, in NY and offering can only be made by a prospectus filed first with the Department of Law of the State of New York. Such filing does not constitute approval by the Department of Law”. Copyright 2007 BP Products North America Inc. All rights reserved. n 4 Franchise Times October 2007 Top 200 Franchise Chains by Worldwide Sales Prior Worldwide Domestic Percent Rank Rank CHAIN PARENT COMPANY Sales ($M) Units Total Units Franchised 24 19 H&R Block H&R Block, Inc. 4,021 12,784 14,214 36% 25 na Prudential Real Estate Prudential Financial 3,910 3 2,028 2,114 100% 26 24 Chili's Grill & Bar Brinker International, Inc. 3,740 * 1,146 1,275 26% 27 27 Hampton Inn Hilton Hotels Corporation 3,400 * 1,349 1,379 98% & Hampton Inn & Suites 28 26 Arby's Triarc Companies, Inc. 3,360 * 3,458 3,585 70% 29 29 Sonic, America's Drive-In Sonic Corp. 3,322 4 3,186 3,188 80% 30 79 Dollar Rent a Car Dollar Thrifty Automotive Group, Inc. 3,250 * 254 887 77% 31 30 Comfort Inn & Suites Choice Hotels International 3,192 * 1,848 2,439 100% 32 36 Courtyard Marriott International, Inc. 3,131 * 650 733 58% 33 33 Holiday Inn Express InterContinental Hotels Group 3,077 * 1,506 1,686 100% 34 38 Westin Starwood Hotels and Resorts 2,838 * 84 131 31% Worldwide, Inc. 35 37 Radisson Hotels & Resorts Carlson Hotels Worldwide 2,783 * 159 323 92% 36 34 Jack in the Box Jack in the Box Inc. 2,750 * 2,079 2,079 29% 37 81 Thrifty Car Rental Dollar Thrifty Automotive Group, Inc. 2,700 * 342 1,042 80% 38 40 Results Travel Carlson Companies, Inc. 2,700 908 908 100% 39 28 ampm BP West Coast Products. LLC 2,690 1 1,233 3,307 88% 40 35 T.G.I.Friday's Carlson Restaurants Worldwide Inc. 2,589 713 1,013 52% 41 31 Medicine Shoppe Cardinal Health, Inc. 2,560 983 1,342 98% & Medicap Pharmacy 42 41 Keller Williams Realty Keller Williams Realty 2,488 3 623 636 100% 43 39 Denny's Denny's Corporation 2,434 1,468 1,545 66% 44 32 Dairy Queen American Dairy Queen Corporation 2,400 4,768 5,676 99% 45 44 Chick-fil-A Chick-fil-A, Inc. 2,275 1,293 1,293 100% 46 42 Uniglobe Travel International Charlwood Pacific Group 2,200 6 710 710 100% 47 43 IHOP IHOP Corp. 2,100 1,288 1,302 99% * Franchise Times Estimate 1 Does not include gasoline sales 2 Domestic units include Canadian 3 Gross Commission Income (GCI) 4 FY ended 8/31/06 5 FY ended 6/5/07 6 Uniglobe does not distinguish between domestic and international units Boston’s BP ampm The Gourmet Pizza Contact: Ted Beaman Contacts: Franchise Development Team Phone: 866-277-8721 Phone: 888-894-2676 E-mail: [email protected] # E-Mail: [email protected] # Web site: www.bostonsgourmet.com 92 Web site: www.bpampmfranchise.com 39 As Canada’s highest-rated casual dining restaurant, Boston’s the The BP gasoline offer and the ampm convenience store franchise is offered in Gourmet Pizza continues its rapid U.S. expansion with 14 new the states of IL, IN, FL, GA and PA. BP and ampm represents the future of fuel and convenience retailing, offering unsurpassed quality within an attractive, locations in 2007. Offering a full-service restaurant and high- innovative design. Powerful, distinctive branding is the cornerstone of our high energy sports bar under one roof, Boston’s boasts an impressive visibility in the convenience-store industry. Our franchise offer is leveraged by array of pizzas, pastas, BP’s strong gas brand of Amoco fuels.