FRANdata works with a diverse group of clients on their most challenging issues, investing significant time and effort in developing an expertise and knowledge base that offers unique perspectives and insights. We apply our understanding of market and industry forces to develop long-term franchise perspectives.
Buoyed by a mix of market correction and federal government assistance like PPP loans, payroll tax cuts, etc., FRANdex achieved major quarter-over-quarter gains in Q2-2020. In the quarter, franchise companies’ (excluding McDonald’s) annual returns outperformed both broader indices – S&P 500 and Russell 2000. Non-food franchises were the major gainers in the quarter, up 51.6% q-o-q, boosted by the returns from lodging franchises (39.57%). Food franchises were up by 48.55%.
FRANdata has been studying the trajectory of publicly-traded franchises for more than 3 years. FRANdex tracks the performance, based on market capitalization, of 62 U.S.-based publicly-traded companies operating under and generating income through the franchise business model. All index levels are normalized to 1,000 at Q1 2006 for comparison purposes, and all remaining periods are adjusted accordingly.
About the Analyst
SENIOR RESEARCH ANALYST
Ritwik’s expertise as a senior research analyst has allowed him to analyze the ins and outs of the operational and financial performances of hundreds of franchise brands.