Sponsored Section: Million Dollar Franchises

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"A million dollars" has a nice ring to it, especially when the phrase describes the annual sales volume of a franchise business opportunity. And, says Rick Bisio, a Bradenton, Fla., franchise consultant and author of The Educated Franchisee (Bascom Hill Publishing, 2008), "It is a realistic expectation. I'd say that the majority of systems have at least a few franchises that are at $1 million or plus. There are some systems where pretty much everybody is at or over $1 million."

One of those opportunities is Bojangles' Famous Chicken ‘n Biscuits, a quick-service concept from Charlotte, N.C. In 2008, the average full-sized Bojangles' franchise served more than $1.7 million worth of made-fromscratch biscuits; hand-breaded, never-frozen chicken; dirty rice; and other menu items. More than 40 percent of Bojangles' daily sales occur at breakfast, and breakfast is served all day. That is a key element differentiating Bojangles' from other quick service restaurants, and also contributes to the unit sales volume.

The company claims that, unlike fast-food patrons interested only in convenience, Bojangles' customers will go out of their way to visit its locations. “The combination of fresh biscuits, made from scratch every 20 minutes all day, freshly prepared food, and unique flavor make us a destination restaurant," ExecutiveVice President Eric Newman says."We have the most loyal customers in the business," he adds.

Franchisees need significant operational expertise in order to combine rapid service with fresh, hand-made food. "People who can operate the concept is our number one concern," Newman says. "It's more important than money. It's more important than anything."Thanks in large part to its appealing sales volume, Bojangles' has attracted enough highly qualified candidates to expand the 461-unit chain by a projected 44 new restaurants in 2010.

A creative concept coupled with operational excellence also underlies the high sales volume generated by Yogurtland franchises. The Anaheim, Calif., chain averages just over $1 million in annual sales at each location, says Larry Sidoti, vice president of development and operations. Sidoti says they rely on "the three wows" to draw customers to their offering of yogurt, fun, and value. "The wow when you walk into the store, the wow when you taste the product, and the wow when you pay for the product," he explains.

Yogurtland allows customers to mix their own yogurt dishes, employing custom flavors and toppings as well as active culture yogurt. Sidoti says that retailers today need to provide consumers with something besides a quality product and excellent customer service. “It's great if you can have an element of entertainment,'he says.“And with Yogurtland,we have an outstanding product and the element of entertainment because you get to do it yourself."

Ideal Yogurtland franchisees have elements of both business and food service in their backgrounds. "It's not that simple a concept," Sidoti explains. "It's not a restaurant and it's not a quick-service food operation. You're dealing with dairy, and you're dealing with live and active cultures. And it's always more beneficial if you have a business background."

Yogurtland has 64 locations today, which he expects will expand to between 125 and 150 stores by the end of 2010. The company is targeting Sunbelt states from Arizona through the Carolinas and offers a number of area development opportunities within those markets."So it's a great time to get involved in this concept," Sidoti says.

Motorists who never think it's a great time for an oil change can find room in their day for a stop at Express Oil Change. The Birmingham, Ala., franchiser's locations strive to greet each customer within 15 seconds of driving onto the lot,change the vehicle's oil and check fluids in 10 minutes, and have the customer back on the road in 12 minutes, says Jerry Perch, director of franchise development. To reach that standard, the concept has drivers stay inside their vehicles during the oil change and never tries to sell unneeded parts or services.

The approach gives Express Oil Change considerable traction when it comes to generating sales. "Fifty percent of all our stores, including the new stores and acquisitions and everything, do dollar volume of over $1million,"Perchsays. Infact, he says they won't agree to place a franchise in a location that doesn't have the potential to reach $1 million in annual sales.

In addition to the oil change bays,the franchise locations have bays next door where more complicated mechanical service and repair takes place. Perch says this has helped keep overall revenues up in 2008 and 2009."They learn to trust us,"he says of customers."And when they need brakes and A/C, they go to the mechanical side."

Potential franchisees have to be willing to trust Express Oil Change's requirements and follow the system in detail.Franchisees are asked to purchase prime commercial real estate and own their buildings, for instance, rather than leasing. Done right, however, the system works."We've been in business 30 years and franchising most of those years,"Perch says,"and there has never been a lawsuit filed by a franchise against Express Oil Change."The company aims to increase its 173-unit chain with 12 new franchises in 2010.

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