How is the health of the publicly traded franchise business? Was this quarter better or worse than last quarter for franchise format businesses? How are franchise businesses doing compared to other businesses? Wouldn’t it be helpful if there was an index, much like the S&P 500, to identify and track US public companies that are involved with business format franchising?
Well, there is. In 2000, the University of New Hampshire’s Rosenberg International Center of Franchising created an index that tracks the performance of fifty of the top US publicly traded businesses that incorporate a business format franchising as its model.
The index, called the RFC 50, uses methodology similar to the S&P Index and has created both monthly and quarterly indices to track the combined stock market performance of the top fifty franchisors. Also, if you need to track specific segments, such as Lodging, Food, Services, the RFC 50 has identified franchise sectors.
How is the RFC 50 doing compared to the S&P 500 Index? From the inception back in 2000 through the end of the third quarter 2011, the RFC 50 is up 100.6% compared to the S&P 500 which was down 18.9% over the same period. This is reported by UNH’s Rosenberg’s website.
If you’d like to learn more about franchises and how you can invest as an owner, contact an expert FranFinders franchise consultant.
