Investment Themes

Franchises: A model that generates recurring income

To access our selection of stocks, regularly updated with new opportunities, discover our customized subscription formulas with exclusive tools.

Investment Themes

The franchise model is based on collaboration between a brand and independent entrepreneurs. One company (the franchisor) grants another party (the franchisee) the right to use its brand, products and services. This system enables rapid expansion, with little initial investment on the part of the franchisor. Companies such as McDonald's, Starbucks, Marriott International and Planet Fitness have built their success on this model.

The franchisor helps the franchisee start up the business to ensure it runs smoothly. He contributes his reputation, experience, marketing strategy, national or international communications and know-how. This pooling of resources enables franchisees to get up and running quickly, and to benefit from a proven business model that is often profitable from the outset, thanks to the experience of other franchises.

In return, the franchisee must bring the brand's concept to life locally, in line with the franchisor's business model. To use the brand, the franchisee pays part of his income in the form of royalties, which can represent several tens of percent of sales, and rent if he does not own the land. They must also pay an entry fee to become a franchisee, and make a personal contribution that is not financed by a bank. In addition to these costs, the franchisee must respect the franchisor's guidelines, which can limit his or her flexibility.

Despite the high initial costs for the franchisee, this model is advantageous for both parties. It ensures recurring revenues and requires little initial capital for the franchisor, while offering the franchisee a guarantee of success without the need for extensive prior knowledge. This model has proven its effectiveness, enabling businesses to grow rapidly while maintaining uniformity of quality and service.

For potential franchisor shareholders, it's important to know that you're investing as much in a property portfolio, brand and logistics network as in a chain of restaurants, car dealerships or hotels. You also benefit from recurring revenues, greater visibility and a business model that's light on assets and capital expenditure.

Here's a list of the main franchisors listed on the stock exchange.

Our selection

Consumer Non-Cyclical
Carbonated Soft Drinks
2.46TCr +22.63%
Real Estate
Residential Real Estate Development
40Cr -10.25%
Consumer Cyclical
Other Toys & Juvenile Products
835.32Cr -0.73%
Energy
Gasoline Stations
5.65TCr +14.05%
Consumer Cyclical
Quick Service Restaurants
4.26TCr +2.99%
Financials
Insurance Brokers
172.17Cr -1.91%
Industrials
Other Industrial Machinery & Equipment
2.04TCr +16.24%
Consumer Non-Cyclical
Supermarkets & Convenience Stores
2.71TCr -10.06%
Consumer Cyclical
Quick Service Restaurants
4.74TCr +1.54%
Consumer Cyclical
Optical Goods Stores
89Cr -13.04%
Real Estate
Other Real Estate Services
631.29Cr -6.76%
Consumer Cyclical
Quick Service Restaurants
310.16Cr -51.88%
Industrials
Pest Control Services
1.75TCr -38.04%
Consumer Cyclical
Gyms, Fitness and Spa Centers
395.19Cr -50.85%
Consumer Non-Cyclical
Supermarkets & Convenience Stores
1.31TCr +12.02%
Consumer Non-Cyclical
Consumer Repair Services
419.89Cr +15.73%
Consumer Cyclical
Quick Service Restaurants
299.3Cr -8.56%
Consumer Cyclical
Sporting & Outdoor Goods
84Cr +12.44%
Consumer Cyclical
New Car Dealers
817.53Cr +13.47%
Consumer Cyclical
Quick Service Restaurants
2.84TCr +18.88%
Consumer Cyclical
Gyms, Fitness and Spa Centers
254.56Cr +13.06%
Consumer Cyclical
Other Computer & Electronics Retailers
118.59Cr +19.52%
Consumer Cyclical
Quick Service Restaurants
1.16TCr -17.22%
Consumer Cyclical
Other Hotels, Motels & Cruise Lines
9.33TCr +16.03%
Consumer Cyclical
Other Hotels, Motels & Cruise Lines
2.41TCr +16.56%
Consumer Cyclical
Quick Service Restaurants
19TCr -12.30%
Consumer Cyclical
Other Hotels, Motels & Cruise Lines
7.41TCr +15.38%
Consumer Cyclical
Copyright Management
40Cr +9.68%
Consumer Cyclical
Jewelry
905.08Cr +18.34%
Consumer Cyclical
Sports & Outdoors Retailers
559.36Cr +3.74%
Consumer Cyclical
Hotels & Motels
563.04Cr +1.13%
Consumer Cyclical
Quick Service Restaurants
35Cr +6.06%
Consumer Cyclical
Other Restaurants & Bars
12TCr +27.13%
Consumer Non-Cyclical
Consumer Repair Services
217.11Cr -11.07%
Consumer Cyclical
Automotive Parts & Accessories Retailers
43Cr +1.10%
Consumer Cyclical
Other Miscellaneous Specialty Retailers
124.7Cr -13.94%
Consumer Cyclical
Other Restaurants & Bars
79Cr -38.27%
Industrials
Other Employment Services
24Cr +63.46%
Consumer Cyclical
Quick Service Restaurants
32Cr -13.03%
Industrials
Passenger Car Rental
512.68Cr +13.54%
Consumer Cyclical
Quick Service Restaurants
173.89Cr +7.14%
Consumer Cyclical
Quick Service Restaurants
60Cr -4.77%
Healthcare
Other Healthcare Facilities & Services
11Cr -2.35%
Consumer Cyclical
Quick Service Restaurants
18Cr +137.31%
Industrials
Passenger Car Rental
79Cr -57.59%
Consumer Cyclical
Gyms, Fitness and Spa Centers
22Cr -33.96%
Consumer Non-Cyclical
Personal Care Services
26Cr +61.67%
Consumer Cyclical
Other Restaurants & Bars
121.96Cr +11.61%

News of the components

░░░░ ░░░░░ ░░░░░ ░░░░░░░░░ ░░░░░░░░░ ░░░░░░░░░░░░░ ░░ ░░░░░░░░░░░░ ░░░░░░░░░░░░░░░
░░░░ ░░░░░░ ░░░░░░░░ ░░░░░░░ ░░░░░░░░░░ ░░░░░ ░░░░░░ ░░ ░░░░ ░░░░ ░░░░░░░░
░░░░ ░░░░░░░░░ ░░░░░░ ░░░░ ░░░░░░ ░░░░░░░ ░░ ░░░░░░ ░░ ░░ ░░░░░░░░░ ░░░░░░░░ ░░░░░ ░░░░░░░░░ ░░░░░ ░░░░░░░░
░░░░ ░░░░░░░░░░░░░░░░░ ░░░░░░░ ░░░░░░░░░░░ ░░░░░░░░░░░ ░░ ░░░░░ ░░░░░░ ░░░░ ░░░ ░░░ ░░░░░░░░░
░░░░ ░░░░░░░░░░ ░░░░ ░░░░░░░ ░░░░░ ░░░░░░ ░░ ░░░░░░░░░░░░░░░░ ░░░░░░ ░░░░░ ░░ ░░░░ ░░░░ ░░░░░ ░░░░░ ░░░ ░░░░░░░░░░
░░░░ ░░░░░ ░░░░░░ ░░░░░░░░░░░░░ ░░░░░░░░░ ░░░░░░░░░░░░░ ░░ ░░ ░░░░░░░░░░░░ ░░░░░░░░░░░ ░░ ░░░░ ░░░░░░░░
░░░░ ░░░░░░░░░░ ░░░░░░ ░░░ ░░░░░░ ░░ ░░░░ ░░░░░░ ░░░░ ░░░░░░░░
░░░░ ░░░░░░░░░░░░░░░░░ ░░░░░░ ░░░░░ ░░░ ░░░░░░░░░ ░░░░░░░░░░░ ░░ ░░░ ░░░░░░ ░ ░░░░░░ ░░░░░░
░░░░ ░░░░░ ░░░░░ ░░░░░░░░░ ░░░░░░░░░ ░░░░░░░░░░░░░ ░░ ░░░░░░░░░░░░ ░░░░░░░░░░░ ░░░░ ░░░░░░░░░░ ░░░░ ░░░░░░░░
░░░░ ░░░░░ ░░░░░░ ░░░░░░░░░░░░░░ ░░░░ ░░░░░░░░░ ░░░░░░░░░░░░░ ░░ ░░░░░░░░░░░░ ░░░░░░░░░░░ ░░░░ ░░░░ ░░░░░░ ░░░ ░░░ ░░░░░ ░░░░ ░░░░░░░░░░ ░░░░░░░
░░░░ ░░░░░░ ░░░ ░░░░░ ░░░░░░░░░░ ░░░░ ░░░░ ░░░░░░░░░░░ ░░░░░░░ ░░░ ░░░ ░░░ ░░░░░░░░░░ ░░ ░░░░ ░░░░░░░ ░░░░░░░░░░░░░
░░░░ ░░░░░ ░ ░░░░░░░░░░░ ░░░░░░░ ░░ ░░░░░░ ░░ ░░░░░░░░░░░ ░░░░ ░░░░░░░░░░ ░░░░░░░░░░░░
░░░░ ░░░░░░░░░ ░░░░░ ░░░░░░ ░░░░░░ ░░░░░░░ ░░ ░░░░░░░░░░
░░░░ ░░░░░░░░░ ░░░░░░░░░░░░░ ░░░░░░░░░ ░░░ ░░░░░ ░░░░░░░░░ ░░░░░░░ ░░ ░░░░░ ░░ ░░░░ ░░ ░░░░░░░ ░░░░░░ ░░░ ░░░░░░░ ░░░░░░░░░░ ░░░░░░░░░ ░░ ░░░░░░░ ░░ ░░ ░░░░░░░░░░░
░░░░ ░░░░░░░░░ ░░░░ ░░░░░░░░░ ░░░░░░░░░░░ ░░ ░░░░░░ ░░░░░░ ░░ ░░░░░░ ░░░░ ░░░░░░░░░ ░░░ ░░░░░ ░░░░░ ░░░ ░░░░░░ ░░░░░░░░ ░░░░░░░░░ ░░░░░░░░░ ░░░ ░░░░░░░░
░░░░ ░░░░░░░ ░░░░░ ░░░ ░░░░░░░░░ ░░░░░░░░░░░ ░░░░░░ ░░░░░░░░░░░░ ░░ ░░░░░░░░░ ░░░░░░ ░░░░░ ░░░░░ ░░░░░░░
░░░░ ░░░░░░░░░░ ░░░░░░░ ░░░░░ ░░░░░ ░░░ ░░░░░░░ ░░ ░░░░░░░░░░░
░░░░ ░░░░░░░░░░ ░░░░░░░ ░░░░░ ░░░░░ ░░░ ░░░░░░░ ░░ ░░░░░░░░░░░
░░░░ ░░░░░░░ ░ ░░░░░░░░ ░░░░░░░░░ ░░░░░░░░░░░ ░░ ░░░░░ ░░░░░ ░░ ░░░░░░░░░░ ░░░░░░░░░░░░░

Heatmap

Sector allocation

Ratings chart - Surperformance

Ratings ESG MSCI

  1. Stock Market
  2. Investment Themes
  3. Franchises: A model that generates recurring income