Innholdsfortegnelse for January/February 2024 i Entrepreneur Magazine

YOU WANT SUCCESS. So why won’t it just come…easier? Haven’t you put in the work? The time? The agony? I’ll be honest: This subject is raw for me. My recent product launch flopped, and I was crushed. Then I found something to pick myself back up. I want to give that to you today. Because here’s the thing: You will fail at something this year. It’s a certainty. Failure comes for us all. But we will only be measured by how we respond. So here’s my story: I spent all of 2023 building a newsletter about how to be more satisfied and successful at work. (It’s at jasonfeifer.com/newsletter.) I grew it to 45,000 subscribers. Then in November, I launched a paid upgrade. After a week, only 14 people paid. To…

Aditi and Ankur Daga had a daring idea for the jewelry industry: to own the online market for colored gemstones. Yes, De Beers had sold the culture on “a diamond is forever” since 1947, but by 2005, the Dagas felt people were ready for a change. They weren’t so sure, however, about investors. They worried VCs wouldn’t appreciate the rainbow; they’d just want high sales and immediate returns. So the Dagas shelved their vision, and launched a business that mostly sold diamonds, called Angara. They’d married and studied as grad students at Harvard, both from families in the jewelry space in India, and thought they understood the market. But the competition was stiff. They didn’t get the revenue to attract investors. It took almost going bankrupt for them to learn…

Q I feel like work is overtaking my life. I know I’m supposed to “create boundaries,” but how? —JAMIE, HOUSTON IF YOU’RE FEELING stressed, ask yourself this question: “What activities make me feel happier and more at ease?” Whatever your answers are, those are your nonnegotiables. Please draw boundaries around them. No amount of work or obligation should encroach upon them, because then you won’t have the energy or focus to fulfill your work and obligations. For me, my nonnegotiables are my early morning exercise, a long Sunday morning walk with my husband, and the one specific work objective I identify each day. I know—it’s one thing to draw boundaries, and quite another to actually keep them. So that comes next. Start with your calendar. If something is important to…

In the second quarter of 2023, Japan’s economy surpassed its pre-pandemic peak, underscoring the country’s robust recovery from the global recession. A recent commentary by the global professional services company Deloitte noted that the external sector and the central bank’s accommodative monetary policy have played a crucial role in supporting this growth. This economic rebound is having a positive impact on the construction sector, which is expected to grow by 4.6% in 2023, reaching a total value of JPY 35.5 trillion, according to Research and Markets. This momentum is expected to continue, driving an industry compound annual growth rate (CAGR) of 3.8% through 2027, outpacing broader economic growth. As one of Japan’s largest construction and real estate conglomerates, Daito Trust Construction marks its 50th anniversary this year, having been established…

According to the IMF, Japan is anticipated to be one of the fastest-growing economies in the advanced economies in 2023 and 2024. Encouragingly, global investors and multinationals are increasingly acknowledging Japan’s economic potential, exemplified by its ascent to third place on Kearney’s FDI Confidence Index, up from fourth. Japan’s commitment to innovation significantly contributes to its economic resurgence. The nation’s emphasis on technological advancements, research and development, and fostering a culture of innovation has not only enhanced Japan’s economic competitiveness but also positioned it as a hub for cutting-edge technologies and creative solutions. With its meticulous approach to detail and fine-tuned manufacturing techniques, Japan has always been an attractive proposition for global manufacturers. Underscored by their monozukuri spirit of craftsmanship, Japanese firms have received international acclaim in detail-oriented global markets…

Japan’s education system ranks among the top ten globally, according to the World Population Review, serving as a global role model for countries with declining populations in developing future generations. Since 2014, the government has focused on globalizing Japan’s education system, forging partnerships with leading international universities. More recently, the emphasis has shifted towards constructing a national ICT education infrastructure. Initiatives encompass the implementation of digital textbooks, the goal of ‘one device per one student,’ and an ambitious ‘smart school scheme’ utilizing academic and administrative data to facilitate schools in adapting to ‘Society 5.0.’ Private education organizations are prevalent throughout Japan, and it is commonplace for parents to enroll their children in after-school supplementary classes, commonly referred to as cram schools or ‘juku,’ aiming to achieve improved grades or prepare…

As the world’s third-largest economy, Japan not only stands as an economic powerhouse with a GDP of 4.23 trillion USD, as cited by the World Bank, but also boasts a vast consumer base. In this prosperous and eco-conscious nation, the value of the reuse market is comparable to the GDP of many countries, reaching nearly $20 billion, as indicated by Statista in 2023. This growth is driven by a shift in consumer preferences towards secondhand goods and the expansion of B2C and C2C secondhand retailers. With an extensive network of 931 stores across all 47 prefectures in Japan and international locations in the USA, Taiwan, Thailand, and Cambodia, HARD OFF stands as a dominant player in the secondhand goods sector. Based in Niigata, the company envisions a self-reliant global reuse…

Japan’s economy has exceeded analyst expectations, achieving a remarkable 6% annualized growth rate in the second quarter of 2023, resulting in a GDP of $3.85 trillion, its highest-ever level. The impressive growth was primarily driven by net exports, a testament to Japan’s robust manufacturing industry, with tourism also playing a significant role. Japan has long been recognized as a global leader in the robotics industry, with its high-tech manufacturers and demographic factors contributing to its success. In fact, nearly half of the world’s industrial robots are produced in Japan, as reported by the US International Trade Administration. Established in 2014, Donut Robotics epitomizes Japan’s pioneering role in the robotics sector and is on a trajectory to elevate Japan’s robotics brand to new heights. Combining high-quality hardware and software powered by…

WHAT TO DO IF… the recession shows up late for dinner You know the recession we dodged last year? Well, some experts think it may just be tardy. Matt Higgins, an executive fellow at Harvard Business School and cofounder of RSE Ventures, believes all that boisterous consumer spending was propped up on “the contrails of federal stimulus money from the pandemic”—and it’s about to run out. At the very least, many researchers forecast a slowdown. If you’ll need funding this year, Higgins suggests raising it now, even with unfavorable terms—because they may only get worse in six months. It’s also an essential time to be building for profitability, says Jay Steinfeld, author of Lead from the Core: The 4 Principles for Profit and Prosperity. “What is wrong with growing 10%…

After registering extraordinary economic growth of 8.7% in the year 2022, Kingdom of Saudi Arabia Firmly establishing its status as the fastest - growing economy within the G20, as attested by the OECD, owing to the strong and robust performance of its non-oil sector under “Vision 2030” in fostering economic diversification and the indigenization of cutting-edge technology. Vision 2030 has helped to drive new investment deals and licenses up by 95% and 267% in 2022, respectively, according to the IMF. Unsurprisingly, last year, Saudi Arabia was named one of the world’s top five entrepreneurial economies by the Global Entrepreneurship Monitor (GEM). Education, Healthcare, and Defense are the three most essential pillar for any nation’s development and survival. Countries spend most of its fiscal budget on these three sectors. Saudi Arabia…

STARTED FRANCHISING/ 1987 TOTAL UNITS/ 2,557 COST TO OPEN/ $214.4K-$1.4M Jersey Mike’s Subs is big, but it draws strength from thinking small. Rooted in the cozy corners of small-town New Jersey, the sub shop has pursued measured growth with a community-first approach for nearly 40 years. That strategy has drawn the right franchisees in the most receptive locales, and propelled Jersey Mike’s to its highest Franchise 500 ranking ever. (Last year it was No. 3.) This year marks its 13th consecutive year in the ranking, and seventh consecutive year as No. 1 in its category. Jersey Mike’s “think small” strategy has also enabled some big ambitions: With well over 2,500 locations across the country, the company plans to open 1,000 additional stores in the U.S. over the next three years.…

STARTED FRANCHISING/ 1976 TOTAL UNITS/ 5,813 COST TO OPEN/ $579.4K-$1.9M Have you seen a lot of Ace Hardware ads lately? There’s a good reason—the brand increased its digital ad spend by $23 million in 2023, and as a result saw a 17% bump in digital business. Because 90% of online orders are placed for local pickup or delivery, most of those customers went straight to their local Ace. It’s no wonder that in 2024, Ace plans to increase digital marketing by another $25 million. Moves like this help Ace compete in a crowded hardware market. “We’re not the biggest, but we’ll be the best,” says Ace president and CEO John Venhuizen—and in Entrepreneur’s ranking, Ace has accomplished that mission. This is Ace’s ninth consecutive year as No. 1 in its…

STARTED FRANCHISING/ 1984 TOTAL UNITS/ 2,919 COST TO OPEN/ $12.8M-$24.1M How would you celebrate your 40th anniversary this year? If you’re Hampton by Hilton, the answer is: open your 3,000th worldwide location. Travel companies must walk a tightrope—maintaining brand consistency while predicting their guests’ ever-evolving needs—and Hampton by Hilton has mastered this. It’s the largest of Hilton’s 22 brands, and has been on our Franchise 500 ranking for 23 consecutive years, including 15 consecutive years in the No. 1 spot in its category. This is its ninth time in the Top 10; it stepped up from last year’s No. 9 spot. You can almost taste its strategy in the ever-changing flavors (red velvet, strawberry, pumpkin spice) of those signature free Belgian waffles, or see it in the way its hotels…

When a franchise has a successful year, we expect to see it climb in our Franchise 500 ranking. Maybe it’ll move up 20 or 30 spots. That’s normal. But every year, there are a few outliers that somehow rocketblast themselves hundreds of spots up the list. Growth like that doesn’t come easy, and there must be a story behind it. That’s why, every year, we reach out to the companies with some of the biggest growth stories to ask one question: “How’d you do it?” This year, we learned about the power of patience, the value of tapping into a national conversation, and the progress you can make by punching through a bottleneck. Hopefully, you’ll find something useful in the stories—a new way to frame a problem, perhaps, or even…

Superior was No. 346 on our list last year. Now it’s No. 179. Early in the pandemic, Zach Peyton, president of Superior Fence & Rail, met with Franchise FastLane, a firm that helps increase franchise sales. Peyton wanted to recruit new franchisees, but Franchise FastLane posed a roadblock by asking: Could Superior Fence & Rail handle the growth? Peyton wanted to say yes, but he couldn’t. Pandemic-related supply-chain disruptions all but guaranteed any new franchisees he signed would end up sitting in an empty warehouse that should be full of fencing. He could have tried waiting out the supply-chain problems. Instead, he put his energy where it would have the most impact: Although he couldn’t recruit franchisees, he could build a bigger support team to ensure his future recruits would…

* The faces you see are just some of the respondents. All responses are anonymized. We wanted unvarnished opinions—and as you’ll see on the following pages, we got them. This survey was conducted in partnership with Franchise Business Review, which produces reports for franchise buyers. The results you see are mostly from our survey of 232 new franchisees * (in business under five years), but also include a few answers from Franchise Business Review’s annual survey of 13,109 new franchisees. Did setting up your franchise cost (in time and money) about what you expected? Do you plan to buy more units/territories? Yes⟶26% Probably⟶13% Maybe⟶32% Probably not⟶12% No⟶17% How many hours a week do you work? How many units/territories do you own? How did you find your franchise? “I was just…

MICHAEL/ “We tried to give folks who had signed up earliest those first sessions.” REBECCA/ “I saw flexologists greeting members, saying, ‘Hey, Brad! How are the kids? How’s your golf game going?’ That brought me a lot of joy because it told me that our flexologists and our members were already building rapport. We have an open-concept studio, so visitors were seeing members comfortably getting stretched.” MICHAEL/ “No one was groaning in pain.” REBECCA/ “You could hear conversation, music, laughter. It was vibrant.”…

I opened my first franchise in the summer of 2006. It was an Edible Arrangements in Los Angeles, serving the neighborhoods of West Hollywood and Beverly Hills. For 13 years before that, I’d been working full time as a motivational speaker for business leaders. I’d done well—presenting to leaders of many industries in all 50 states and around the world—but I wanted another stream of income. And more than that, I wanted a place to gain real-world leadership experience and develop strategies I could share with audiences. I didn’t want my presentations to be based purely on theory or the work of others, as is often the case with motivational speakers. During the months between signing my franchise agreement and opening my store, I continued traveling and giving presentations. In…

This year marks the 45th annual Franchise 500—still the world’s first, best, and most comprehensive franchise ranking. If you’re looking to buy a franchise, this is your definitive guide. If you’re a franchisor, this is where your hard work is recognized. When Entrepreneur published the first version of this ranking back in 1980, the future of the franchise industry seemed debatable. The model had blossomed in the 1950s and ’60s; McDonald’s began franchising in 1955, for example. But what would happen in the dawning computer age and the 1980s economic turmoil? Now we know the answer: Franchising thrived, and only continues to. More and more franchise companies apply to the Franchise 500 every year, proving that founders still see franchising as one of the best ways to grow their brands—and…

Year Began/Franchising Since This shows how long a company has been in business and how long it has been franchising. Both are good to know when you’re trying to decide whether you should go with an established system or a newer concept. Available U.S. Regions and Seeking Int’l.? Check out these columns if you want to know whether a franchise system is expanding in your area and whether a company requires franchisees to buy master licenses or multiple units. Number of Franchises/Company-Owned See a franchise company’s size and how quickly it’s growing. Here we list the numbers of franchises and company-owned units open and operating worldwide as of July 31, 2021, 2022, and 2023. Startup Costs/Franchise Fee Look here for the total initial investment to open a franchise (without financing).…

The world moves fast. Thomas Tull wants founders to move faster. That’s why, when he invests in a startup, he gives them this advice: “Prepare for velocity.” In other words, make sure you’re ready to grow quickly and pivot at a moment’s notice. Tull has taken that advice himself. His career has run on fast growth—from when he ran a chain of laundromats after college, to later founding the film studio Legendary Entertainment (which made massive hits including The Dark Knight trilogy and The Hangover series). That work, along with finding success as a tech and VC investor, made him a billionaire. After leaving Legendary in 2017, he continued his investing career—starting his company Tulco that year and the United States Innovative Technology Fund in 2022—supporting companies including Pinterest, FIGS,…

Putting his stamp of approval on investing in Japan, billionaire Warren Buffet labelled his firm’s substantial investments in Japan over the past three years as “revelatory” and “exceeding expectations”. Since Buffett announced his largest bet outside the USA in August 2020, Berkshire Hathaway’s shares in Japan’s five biggest trading houses have skyrocketed by an average of 94%. Meanwhile, last November, the Nikkei index registered a new 33-year-high. Crucially, what sets Japan’s current equity market apart from its previous highs is its significantly increased affordability. As per Goldman Sachs Research, 46% of equities on the Tokyo Stock Exchange’s (TSE) Prime Market are presently trading below their book value, a stark contrast to just 5% of their S&P 500 counterparts. Coupled with the TSE’s incentives for companies to enhance valuations and earnings,…

Japan’s economic landscape boasts a record current account surplus of JPY 12.71 trillion in the first half of FY23, alongside a significant fifteenfold increase in the travel surplus to JPY 1.65 trillion. Driven by substantial foreign investment and a weakened yen, this signifies Japan’s escalating globalization and revival as a global tourism hub post-pandemic. To sustain robust economic growth amidst a declining workforce, Japan prioritizes enhancing female employment and regional revitalization. The 2016 Regional Revitalization Law offers subsidies to bolster local areas through government-led or independent projects. Japan aims to attract people and businesses to rural regions, leveraging its scenic beauty and exceptional infrastructure to spur local economies via increased inbound and domestic tourism, including cruise tours and sports events. Japan’s top-notch infrastructure favors mail-order and e-commerce retailers, with FY21’s…

Following a remarkable year of flourishing business and surging stocks, Japan has become the preferred choice for global investors seeking to strengthen their exposure to Asian markets outside China. Indeed, in October of last year, Japanese investment banks saw their revenues from equity fees surpass China’s for the first time in 25 years, as a rush in equity business raised Japan’s contribution to Asia-Pacific’s total banker fees to 30%. To translate the high global appetite for Japanese investments into long-term economic growth, the government announced eased residency requirements for April this year, allowing foreign entrepreneurs to live in the country for two years, even if they do not have a place of business or investment. Over the past two decades, the global entertainment industry has witnessed the astronomical rise in…

Highlighting Japan’s robust structural foundations, its impressive growth trajectory, and a narrowing fiscal deficit, Fitch, the ratings agency, reaf firmed the nation’s esteemed investment-grade ‘A’ rating in October 2023, maintaining a stable outlook. Describing Japan as an ‘advanced, affluent economy with robust governance standards and esteemed public institutions,’ Fitch forecasted a 2% growth for 2023, signaling an optimistic trend for business investment. Notably, Fitch underscored the economy’s resilience, attributing its strength to strong private-sector balance sheets, thriving corporate profitability, and a remarkable resurgence in inbound tourism. Japan’s considerable wealth and the immense cultural significance placed on marriage and wedding ceremonies contribute to a wedding market valued at JPY1 trillion annually, according to the Yano Research Institute Ltd. Some estimates even suggest figures higher than this. ESCRIT holds a pivotal position…

’Designing future society for our lives’ – the slogan of next year’s World Expo, which is being held in Osaka, is also the co-creative vision driving Japan’s top businesses to solve its most urgent social issues. According to a recent Bloomberg Global FDI survey, Japan leads the developed world in terms of R&D capabilities and early technology adoption in infrastructure. Japan’s population is one of the region’s most cash-loving. In a 2021 survey by Statista during the peak of the pandemic, 90% of respondents still named cash as their most-used payment method. As such, ATMs are ubiquitous across cities and towns, with banks continually making upgrades to make their machines smarter and cash withdrawals easier. Founded in 1999, SocioFuture is a leading ATM operator and provides related services to the…

Small- and medium-sized businesses are the backbone of Japan’s economy, accounting for 99.7% of all enterprises and numbering over 3.5 million, as reported by the OECD. These businesses prioritize fostering human capital, technological advances, sustainability, and, most recently, expanding internationally, making Japanese SMEs among the world’s most resilient. As the Japanese labor force experiences rapid shrinkage, manufacturers in Japan are embracing automation and Industry 4.0-related technologies at an unprecedented rate to enhance the resilience of complex supply chains, such as semiconductor manufacturing. According to Statista, Japan ranks second globally for the density of robot workers, with 399 robots per 10,000 employees, trailing only behind South Korea. In the manufacturing sector alone, Japan’s robot density amounted to 631 robots per 10,000 employees in 2021, more than double that of the USA,…

I’m constantly asked by managers, “How can I get my employees to ___?” Fill in the blank: “work as a team,” “step up their performance,” “care about their work,” etc. The question always focuses on fixing the employee. Rarely am I asked, “How can I improve as a leader?” In most cases, the answer to the second question will also resolve the first. It starts with more self-awareness. Managers can be so focused on everything that needs to get done that they don’t take time to reflect on how their leadership style affects their team’s work. Or maybe they don’t believe they’re the problem at all. It always feels better to point the finger than to look in the mirror. Please don’t feel defensive. I don’t know you or your…

The Arab world’s largest economy by some measure, the Kingdom of Saudi Arabia is distinguished by rich natural resources, a prime geographical location at the nexus of three continents, and a private sector creating new opportunities at an unprecedented pace. This year marks the midpoint of Saudi Arabia’s ‘Vision 2030’ journey, as the government seeks to diversify the Kingdom away from oil and build a vibrant, thriving, and ambitious knowledge-based economy open to foreign investment, digitalisation, and new technologies. So far, the transformation has proved incredibly successful. Between 2016-2022, the digital sector’s contribution to overall economic growth increased from 0.2% to 15%, and the number of Saudis employed in high-skilled jobs rose from 32% to 42%, according to the IMF. Meanwhile, non-oil exports reached a record USD 84.4 billion last…

Entrepreneur published its first Franchise 500 ranking in 1980. That became a magical year for franchises—because today, in this year’s ranking, 419 of the 500 companies on our list started franchising in 1980 or after. What does this statistic tell us? We’d like to think it reflects Entrepreneur’s support of great franchises—but really, it speaks to the living, breathing, ever-evolving nature of this industry. In a way, franchising is about sameness: The goal is to create a system that easily replicates. But if the industry only rewarded sameness, every brand in our ranking would be as storied as A&W Restaurants—the oldest franchise on our list by far, having started franchising in 1925. In fact, the ranking contains zero franchises that launched in the 1930s, and only three from the 1940s—Dairy…

STARTED FRANCHISING/ 1976 TOTAL UNITS/ 4,091 COST TO OPEN/ $383.5K-$3.7M If you’ve been abroad recently, chances are that you’ve spotted a Popeyes. The brand has entered 18 new countries since 2018, and opened a record number of stores the last three years running. In 2022, it launched in India and Romania. While many brands find success internationally, Popeyes has been strategic about treating each new opening as an opportunity to learn. “When we’ve entered new countries, we’ve had a blank slate to test what success may be,” says Jourdan Daleo, senior vice president of Franchising and Field Operations at Popeyes. “We’ve learned a lot and packaged it up for the U.S. market to keep a 51-year-old brand up with our current innovations.” Inspired by its international locations, U.S. Popeyes are…

STARTED FRANCHISING/ 1955 TOTAL UNITS/ 13,372 COST TO OPEN/ $437.5K-$1.8M Dunkin’ seems to have reached a tippin’ point. First of all, there’s growth: Dunkin’ fell out of our Top 10 in 2022 (it was No. 11) after its units dropped; that wasn’t long after its acquisition by Inspire Brands, which was clearly making some changes. But now its growth is back in positive territory— with 9,339 U.S. franchises and 4,033 international ones—which helped secure Dunkin’ a spot in our Top 10 for the 15th time in 20 years. And there’s another big shift at Dunkin’—an increasing presence in American culture. “The brand is just in the conversation,” says Scott Murphy, Dunkin’s president. “Whether it’s Saturday Night Live or on the nighttime talk shows or in music or social media, it…

STARTED FRANCHISING/ 1965 TOTAL UNITS/ 3,602 COST TO OPEN/ $644.95K-$2.5M Arby’s had a breakout year—thanks to a breakthrough burger. For those paying attention, that sentence is pretty wild. Why? Because, while Arby’s tagline has long been, “We have the meats,” it never put a burger on the menu until May 2022—when it debuted the Wagyu Steakhouse Burger, along with a spinoff Bacon Ranch Wagyu Steakhouse Burger. It was a hit: The burger repeatedly sold out in 2022, and Arby’s knew it was onto something. “We created the idea of something premium in a fast-food space,” says Rita Patel, the company’s brand president. Last year, Arby’s was No. 12 on the Franchise 500. This year, after strong sales, Arby’s cracked our Top 10 for the first time since 1992. It’s the…

Ellie wasn’t on our list last year. Now it’s No. 307. Shortly after Ellie Mental Health started franchising in 2021, the company hosted its first discovery day at its very first clinic in Saint Paul, Minnesota. Four potential franchisees showed up. The next month, it was five people. And by month three—in October 2021—40 people and 17 groups came in looking to buy a territory. Chris Pash, Ellie’s senior vice president of growth and development, was floored—not just by how many people were interested in opening a therapy-based franchise business, but by how vulnerable they were with their personal stories. “I would ask them, ‘Why Ellie? Why mental health?’” says Pash. “And they all would share these stories that were emotional and deep. They were really going deep in the…

Mister Sparky went from No. 475 last year to No. 315. One Hour Heating & Air Conditioning went from No. 455 to No. 282. Benjamin Franklin Plumbing went from not ranking to No. 286. Trade companies are hot, and if you need proof, just follow the trail of trade students. In spring 2022, enrollment for “construction trades” at two-year institutions jumped 19.3%, according to a report from the National Student Clearinghouse Research Center. That excitement has put a glossy sheen on Benjamin Franklin Plumbing, One Hour Heating & Air Conditioning, and Mister Sparky (an electrical company). Between September 2022 and September 2023, these brands collectively added 43 new locations and had an average unit volume of $1.1 million. But their growth story really begins in 2019. That’s when all three…

What is a grand opening? To customers, it’s the first day to check out a new business. But for a new franchisee, a grand opening is the first day of their new lives—the moment when all their planning pays off, and a new phase of hard work begins. We wanted to know what that looks and feels like—so we decided to spend a day documenting it. This past October, new StretchLab franchisees Michael and Rebecca Son were opening their first StretchLab franchise in Bothell, Washington, and were happy to welcome us in. Their franchisee journey began in 2022, when Rebecca wanted to reenter the workforce after several years of focusing on her kids, and Michael craved a new challenge after two decades in the corporate world. After six months of…

MICHAEL/ “Assisted stretching is still a new modality. Almost every one of our members goes through that process of being unsure and asking, ‘Is this really something?’ It’s our job to help them through it.” REBECCA/ “I talked to a lot of members that day. They were telling me about people they knew in need of something like this.” MICHAEL/ “For instance, I talked with a mother and her son, who’s an athlete. I got to understand that dynamic of a mother who cares about giving her son every possible benefit. He was super into it. It was almost like he felt this was something that no one else knew about.”…

Two women pull into a Carl’s Jr. drive-thru in Anaheim, California, and roll down their window. An employee introduces herself as Tori, and asks, “What can I get started for you?” The question is normal enough, but something about Tori sounds a little weird. The women in the car start giggling. Tori takes it all in stride. She’s not offended. She’s a robot, after all. She collects their order flawlessly—asking about drinks and combo sizes—and even tries to upsell them on some strawberry shortcake. A human employee hands them their food, and as they drive off, the woman riding shotgun gasps. “Oh, my God! AI is coming! AI is at Carl’s Jr.!” All of this played out on TikTok, where you can find a proliferating number of videos of AI…

COSTS & FEES → Franchise fee → Total investment → Royalty fees SIZE & GROWTH → Open and operating units → Growth rate → Closures SUPPORT → Training times → Marketing support → Operational support → Franchisor infrastructure → Financing availability → Litigation BRAND STRENGTH → Social media → System size → Years in business → Years franchising FINANCIAL STRENGTH & STABILITY → Franchisor’s audited financial statements Note: Pillars are not listed in order of importance or weighting.…

In the ’90s, I got my first management job in the public accounting department at Deloitte. As a woman leading a team in a male-dominated industry, I was intimidated. I knew it would be easier to stick with the status quo—implementing a monotonous, bureaucratic office culture for my team. But I also knew this kind of management was ineffective and resulted in unmotivated, disgruntled employees. So I decided to take a risk and do things differently. I built a collaborative environment that highlighted my team members’ unique skills and diverse perspectives. I thought it was effective, but I wasn’t sure how my team actually felt about it—until years later, when I left for another industry job. At my goodbye party, my team gave me a Swingline red stapler. If you’ve…

1/ The angry, undermining boss “She would yell and throw things at people. She was also very controlling and received copies of every email for the company, regardless of the intended recipient. Then she’d answer those emails without copying the employee. The final insult was when she wouldn’t promote me because she said I was too valuable in my existing role, and then hired an unqualified director and required me to train her. This taught me that a company must present a unified and consistent face, and abuse and bullying don’t work.” —DONNA SHANNON, president and founder, Personal Touch Career Services 2/ The freeloader bully boss “I had a boss who abused his position of power to get free stuff. When my coworkers and I went to lunch, he would…

1/ Smart glasses that are actually cool. Google Glass never captured the hearts of fashionistas (or really anyone), but Ray-Bans endure—which may be why Meta collaborated with the brand. The Ray-Ban Meta Smart Glasses [from $299; ray-ban.com] feature barely detectable 12-megapixel cameras for an ultrasharp view, and five mics to provide immersive audio. For the first time, content creators can stream to Facebook and Instagram directly from the glasses—or just take a call or listen to a podcast, all while swaggering like Tom Cruise. 2/ Next-gen Wi-Fi for crisp video calls. The sleek Eero Max 7 router [from $599; eero.com] can make fuzzy video calls a thing of the past. It’s tri-band—using 2.4 GHz, 5 GHz, and 6 GHz frequencies—and supports devices (like iPhones) optimized to work on Wi-Fi 6.…

Synonymous with tradition, excellence in craftsmanship, and time-honored design practices, Japan’s textile industry is one of the top global players in high-end fashion, with a projected market size of USD 13.9 billion in 2023, according to Statista. In the world of global luxury brands and fashion retailers, Japan’s upscale market shines as a beacon of stability and high-potential investment, a leading choice for international expansion, as noted by McKinsey. Japanese consumers’ dedication to monozukuri, the art of crafting, is synonymous with their pursuit of premium quality, and a growing commitment to sustainable fashion. This trend has enabled luxury apparel manufacturers to thrive in recent years. Celebrating its 80th anniversary, Sanyo Shokai stands as a distinguished high-end apparel manufacturer, overseeing a brand portfolio comprising seven luxury fashion labels, which notably include…

With continuous investments from international investors, robust corporate earnings, and long-awaited inflation, Japan’s TOPIX index reached a 33-year milestone on September 1, 2023, when it hit 2352.58, breaking a record set back in July 1990. Impressively, the index appreciated by 27.06% within the year’s initial eight months, supported by the yen’s depreciation, which enhanced Japan’s export advantage. Core inflation in Japan has exceeded the Bank of Japan’s 2% goal for the 17th consecutive month, as reported by Reuters. This signals that 2023 is a pivotal juncture in Japan’s economic trajectory. Over the past decade, Japanese venture capitalists have transformed the country into a leading regional – and global – hub for startups, providing solutions to some of the biggest social and environmental challenges. In 2022, despite a global slowdown in…

Fueled by a sustained growth trajectory and a decade-long transformation in corporate governance, the remarkable ascent of Japanese stocks in 2023 is poised for long-term continuation, according to JP Morgan. One of Japan’s most notable recent transformations is the shift from a stakeholder-focused to a shareholder-driven corporate landscape, embracing foreign investment and innovative management strategies. The Financial Times reports that the percentage of Japanese firms disclosing investor materials in English has surged to 97% from 80% in 2020. Simultaneously, legacy cross-shareholding models have reached a historic low, and approximately 99% of companies now have two or more independent directors, a significant increase from just 22% in 2014. Since establishing the Digital Agency in 2021 under the slogan ‘Government as a Startup,’ Japan has made digital transformation (DX) a strategic anchor…

In the heart of Japan’s resurging economy, a digital transformation wave is sweeping across businesses, promising remarkable growth. Japan’s government is steering this wave with a nationwide digital transformation (DX) strategy, projected to add a staggering JPY 78 trillion to the economy by the end of this decade, as per McKinsey’s predictions. Among the sectors poised for innovation, the world of accounting, home to 31,200 tax accountant firms stands at the forefront of this transformative journey. Japan’s digital transformation (DX) initiatives present a substantial opportunity. Promisingly, the findings from a series of 2023 surveys of business executives by the IMD’s Global Center for Digital Business Transformation revealed that Japan currently leads in DX momentum compared to Europe and North America, particularly in terms of the percentage of businesses embracing a…

According to the Economist Intelligence Unit (EIU), Japan’s economy is poised to sustain its expansion in 2024, driven by a convergence of positive trends. These encompass the alleviation of inflation, a resurgence in inbound tourism, and a heightened demand for Japanese products bolstered by a two-decade low yen. Additionally, the EIU suggests that the country “is on track for continued growth in the upcoming years.” The real estate sector in Japan stands out as a significant beneficiary of the low yen, drawing in JPY 513 billion from international investors in the initial half of 2023. This marks a substantial 41.6% year-over-year (YOY) increase, as reported by Jones Lang LaSalle. Beyond the currency advantage, Japan’s real estate market is bolstered by factors like political stability and the accessibility of low-cost borrowing,…

Saudi Arabia is undergoing a remarkable transformation. Seeking to power new growth outside its considerable oil reserves, the Kingdom has embarked on a landmark diversification effort to propel itself into a global powerhouse for innovation, investment, and trade. Its rewards already include surpassing the USD 1 trillion GDP mark for the first time in 2022 and the accolade of the fastest-growing G20 economy the same year. Encouragingly, the Kingdom’s non-oil economic growth has sharply accelerated since the pandemic and is expected to reach 5.4% next year, according to the IMF – which expects the economy as a whole to grow above the global average at 4.0%. The centrepiece of the Kingdom’s diversification effort is its ‘Vision 2030’ roadmap. Unveiled in 2016, the Vision 2030 strategy aims to develop the Kingdom…

STARTED FRANCHISING/ 1980 TOTAL UNITS/ 5,570 COST TO OPEN/ $101.8K-$476.99K If you have worked in policing or firefighting, The UPS Store had a new deal for you in 2023: It offered discounts on franchise fees to help you open your own shop. That’s part of the company’s ongoing effort to widen its franchisee pool, as it expands beyond its preexisting program that has offered the same incentives to veterans and people from underrepresented groups. “As we look to grow our network, we have programs in place to help us attract diverse owners,” says Michelle Van Slyke, the brand’s senior vice president of marketing and sales. This initiative helps the store to be relevant in more communities. “When we look at our customer base from 10 years ago compared to where…

STARTED FRANCHISING/ 1988 TOTAL UNITS/ 918 COST TO OPEN/ $2.5M-$7.2M Some people might see Culver’s in our Top 10 for the sixth year in a row and wonder, How? It’s a reasonable question. Unlike the other brands in our Top 10, which have national or international footprints, Culver’s is open in only 26 states. But here’s what you might overlook: The Franchise 500 is not just about size; it’s also about strength and growth. Culver’s shows steady, consistent growth of about 50 units per year, which is impressive for its size, especially when each unit can cost $2.5 million and up to open. Culver’s U.S. franchise units increased by 5.3% this year, which is a lot compared to similar brands (our No. 1 company, Taco Bell, saw 2.9% U.S. franchise…

STARTED FRANCHISING/ 1958 TOTAL UNITS/ 26,244 COST TO OPEN/ $68.4K-$146.6K For many businesses, the pandemic shutdown is becoming a distant memory. But for Kumon, the aftershocks are still being felt—and they’re strengthening the brand. It began with loss: Some franchise locations lost up to 30% of their enrollment during virtual classes in the pandemic. But by 2022, students were flocking back to their learning centers. “With schools being closed, remote learning really exposed a lot of the learning gaps that kids have,” says Craig Mayer, Kumon’s Canadian manager of center network development. “We’re still getting a ton more leads from families who in 2021 saw their child in school for the first time, getting beat. The parents could actually see them struggling.” Although Kumon slipped a little in our rankings…

Zoom Room was No. 464 on our list last year. Now it’s No. 275. Zoom Room expected to have 45 total locations open by the end of 2023. It hit more than 60. That growth caps an incredible turnaround story. Zoom Room’s past troubles are notorious. Shortly after it started franchising in 2009, the company made some bad deals. It was “picking the wrong franchisees and growing without a plan,” says Mark Van Wye, who was the company’s COO at the time. In 2016, the year Van Wye took over as CEO, the franchise had just 10 locations—down from 14 the year prior. So his first act was to implement a two-year moratorium on sales of new franchised locations. He used the hiatus to build out the support team, bring…

DonutNV didn’t rank last year. Now it’s No. 298. DonutNV is known for its hot mini doughnuts. It is not especially known for the trailers it produces at its 31,000-square-foot factory in Georgia. But those trailers have become the key to its business. Here’s why. DonutNV is a mobile operation, with franchisees selling doughnuts out of trailers at corporate events, graduations, and so on. The brand once relied on trailers purchased from third-party vendors—but in February 2023, shortly after it ramped up its sales operations, it foresaw a problem: What if the brand recruited franchisees faster than trailers were available? “It was kind of a necessity,” says Alex Gingold, DonutNV’s cofounder. So now, DonutNV can assemble custom-made trailers on its own schedule and have them delivered—which is both useful for…

MICHAEL SAYS/ “Even a couple of weeks prior, I thought, Is this really going to happen?” REBECCA SAYS/ “On the morning of Opening Day, I remember feeling that everything had finally come together. The artwork was in place. The benches were no longer in plastic wrap. The staff got there early. We came together and said, ‘Let’s just enjoy. We’ll figure this out. The goal is to keep doing what we’re doing.’” MICHAEL/ “I could finally breathe.”…

REBECCA/ “I just remember feeling super proud and wanting to get the team together to thank them for getting us to this point.” MICHAEL/ “We had so many of the people who had been with us from the start, along with a mix of partners, friends, other people’s family, and other local store owners. It felt like a moment to hand it off a little and just enjoy. To some extent, you need to let things go to really see your business thrive. We’re still working through that process of empowering our team. But if you find the right people, success will come.”…

What’s it like being a franchisee? Bart Bess is a good guy to ask—because he’s on his way out, but also on his way in. Bess once owned more than 100 retail outlets of a cell phone brand. Then he opened four clinics with QC Kinetix, a franchise that offers regenerative medical treatments for pain management. Now he’s switching places in the franchise world: In late 2023, he put his clinics up for sale so he could become QC Kinetix’s chief operating officer. We wanted to know: As Bess transitions over to the franchisor side, what advice does he have for incoming franchisees? Here’s what he said. Research a business. Research a lifestyle. “When you’re researching franchises, reach out to a lot of owners and see how their lifestyles are.…