Franchising Companies Outperform Broader Market Indexes

ARLINGTON, Va., Nov. 1, 2011 /PRNewswire/ -- FRANdata has launched a new market index called FRANdex, which tracks the performance of the largest 50 U.S. publicly-traded companies that use the business format franchising model.  

(Photo:  http://photos.prnewswire.com/prnh/20111101/NY96580 )

Using 1Q 2006 as a base, the FRANdex market capitalization index outperformed both the S&P 500 and the Russell 2000 indexes.  On a quarter by quarter percentage change basis, the franchise companies in aggregate averaged 1/2-percent better than the Russell 2000 and 3/4-percent better than the S&P 500.

"As we weather this economy, it is a particularly interesting time to study the performance of franchise systems," said Darrell Johnson, President and CEO of FRANdata.  "Small business is often a leading indicator of recovery from economic downturns and the franchise systems that these 50 companies oversee are composed of individual small businesses.  The performance of these publicly-traded companies – and the much larger set of privately-held franchise companies – may be telling us something about where we are headed."

The 50 publicly-traded companies chosen for the index represent the top 50 companies by market capitalization with material activity in franchising.  They collectively operate 115 franchise brands.

For the complete quarterly newsletter, visit www.frandata.com/FRANdex.

About FRANdata

FRANdata is an independent research company that tracks and analyzes franchises and their performance.  The Arlington, Va.-based company is often called upon by investors and private equity firms to help them identify brands that meet their target performance metrics, and provide due diligence research as the deal progresses. FRANdata is often cited as an expert in such leading media as The New York Times, The Wall Street Journal and The Washington Post. Additional information is available on the company's website, www.frandata.com.

Contact:
Amy Bannon
Direct line, 202-789-1940
Cell phone, 202-271-3818
E-mail [email protected]

SOURCE FRANdata