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Franchising took a hit during the economic downturn as lenders and consumers held tight to their purse strings. Now more Americans, weary of the corporate layoff cycle, are looking to franchising for stability. The number of franchised establishments is expected to grow by 1.5 percent this year in the U.S. after three years of decline, according to the International Franchise Association. Many Dallas-area brands also are expanding. North Texas is home to more than 45 franchisors companies that sell franchises offering up everything from frozen yogurt to carpet cleaning.
Franchised locations*
RED MANGO
400% 300% 400% 300%
KNOCKOUTS
400% 300%
WHICH WICH
LIQUID CAPITAL
400% 300%
HOMEVESTORS OF AMERICA
400% 300%
48.8%
200% 100% 0 N/A 200% 100% 0
27.9%
200% 100% 0
25.8%
200% 100% 0
19.4%
200% 100% 0
13.7%
07 08 09 10 11
07 08 09 10 11
07 08 09 10 11
07 08 09 10 11
07 08 09 10 11
Shrinking concepts
Five North Texas franchisors posted double-digit declines in the number of U.S. franchised outlets last year as some chains tried to bounce back after a restructuring. Bonanza was part of a Plano-based restaurant company that sought bankruptcy protection in 2008. Blockbuster sought bankruptcy protection in 2010.
Franchised locations*
BONANZA STEAKHOUSE
60% 40% 20% 0 -20% -40% 60% 40% 20% 0 -20%
BLOCKBUSTER
60% 40% 20% 0 -20%
COOKIES BY DESIGN
60% 40% 20% 0 -20%
POLLO CAMPERO
60% 40% 20%
GOLF ETC.**
0
-20%
-34.2%
07 08 09 10 11
-40%
-17.1%
07 08 09 10 11
-40%
-14.6%
07 08 09 10 11
-40%
-11.4%
07 08 09 10 11
-11.1%
07 08 09 10 11
-40%
Chilis Grill & Bar $4.3 billion TGI Fridays Curves $2.6 billion $1.1 billion
*** Loans originated between Oct. 1, 2001, and Sept. 30, 2011. SOURCES: Franchise Times; FRANdata; SBA; Dallas Morning News research