2009 Franchise 500 Top 10

Read up on this years franchise power players.

Franchise 500 Top 10 After dedicating the past several months to painstakingly calling, e-mailing, researching and analyzing hundreds of franchise companies--not to mention the three decades weve spent perfecting out ranking procedure and top-secret formula--were proud to present Entrepreneurs 30th Annual Franchise 500, the worlds first, best and most comprehensive franchise ranking.
Illustration Alan Kitching/debutart.com

#1: Subway

With an initial $1,000 investment, 17-year-old Fred DeLuca and family friend Peter Buck opened Petes Super Submarines in 1965. The duo changed the name to Subway a few years later and began franchising in 1974. Fast-forward 43 years, and the Bridgeport, Connecticut, sandwich shop has become the worlds largest submarine sandwich chain, boasting more than 28,000 restaurants in 86 countries. Number of franchises: 29,612 Franchising since: 1974 Startup costs: $78,600 to $238,300 2008 rank: #2 Franchise details

#2: McDonalds At the age of 52, Ray Kroc pitched the idea of opening several quick-service restaurants to brothers Dick and Mac McDonald, owners of the McDonalds hamburger stand in San Bernardino, California. With their approval, Kroc opened the first restaurant/franchise in Des Plaines, Illinois, in 1955. Now the global food-service retailer has around 30,000 restaurants in more than 100 countries. Number of franchises: 24,799 Franchising since: 1955 Startup costs: $950,200 to $1.8 million 2008 rank: #5 Franchise details

#3: Liberty Tax Service In 1997, after selling Jackson Hewitt Inc.--the tax-preparation service company he founded 15 years earlier--John Hewitt acquired a Canadian tax franchisor and established Liberty Tax Service. A year later, Hewitt expanded into the U.S. with five offices; at the close of 2008, the number of U.S.-based Liberty Tax Service franchises had grown to nearly 2,500. Number of franchises: 2,579 Franchising since: 1973 Startup costs: $53,800 to $66,900 2008 rank: #23 Franchise details

#4: Sonic Drive-In

In 1953, Troy Smith purchased Top Hat, a root beer stand in Shawnee, Oklahoma, where customers would park, buy food and eat in their cars. He expanded that concept into a restaurant with partner Charles Pappe, introducing the Sonic name in 1959. Today, the $3 billion company operates more than 3,000 drive-ins in the U.S. and Mexico. Number of franchises: 2,678 Franchising since: 1959 Startup costs: $1.2 million to 3.2 million 2008 rank: #6 Franchise details

#5: InterContinental Hotels Group In 1988, U.K.-based Bass Brewers (founded by William Bass in 1777) moved into the hospitality industry with the purchase of Holiday Inns International. The company focused on expanding its hotel properties and finally sold the brewery business off in 2000. The InterContinental Hotels Group now owns seven brands and operates more than 4,000 hotels spanning nearly 100 countries. Number of franchises: 3,498 Franchising since: 1954 Startup costs: Varies 2008 rank: #8 Franchise details

#6: Ace Hardware Ace Hardware began in 1924, when Richard Hesse banded together with other Chicagoarea hardware retailers to increase their collective buying power and profits. The company was incorporated in 1928, and 80 years later has evolved into one of the largest hardware cooperatives in the world, with more than 4,600 stores in seven countries. Number of franchises: 4,693 Franchising since: 1976 Startup costs: $243,500 to $1 million 2008 rank: #12 Franchise details

#7: Pizza Hut

While college students in Wichita, Kansas, Frank and Dan Carney were inspired to open a pizza parlor. So the brothers borrowed $600 from their mother and opened the first Pizza Hut in 1958. Now there are approximately 6,200 locations in the U.S. and more than 4,000 restaurants in 100 countries. Number of franchises: 10,239 Franchising since: 1959 Startup costs: $638,000 to 2.97 million 2008 rank: #4 Franchise details

#8: The UPS Store/Mail Boxes Etc. Herb Goffstein and Pat and Mimi Senn founded Mail Boxes Etc. as an alternative to the U.S. Postal Service in 1980, and opened their first store in Carlsbad, California. In 2001, Mail Boxes Etc. became a subsidiary of The UPS Store and now runs a network of almost 6,000 franchises located in the U.S. and more than 40 other countries. Number of franchises: 5,982 Franchising since: 1980 Startup costs: $171,200 to $280,000 2008 rank: #11 Franchise details

#9: Circle K Circle Ks roots go back to 1951, when Fred Hervey purchased three Kays Food Stores in El Paso, Texas. Hervey expanded the retail network over the next few decades and entered the international market in 1979. A franchise program was introduced in 1999, and now more than 6,000 Circle K sites operate around the world. Number of franchises: 4,085 Franchising since: 1995 Startup costs: $161,000 to $1.4 million 2008 rank: #17 Franchise details

#10: Papa Johns

In 1984, John Schnatter knocked out a broom closet in the back of his fathers tavern and began selling his pizzas to the taverns customers. Due to their popularity, he was able to expand into an adjoining space and open the first Papa Johns restaurant in 1985. Today, there are more than 3,000 Papa Johns restaurants worldwide. Number of franchises: 2,615 Franchising since: 1986 Startup costs: $135,800 to $491,600 2008 rank: #36 Franchise details