Been digging through some older franchise stock analysis and found something worth revisiting. Back in 2023, there were some interesting picks floating around in this space that still merit a second look, especially if you're thinking about exposure to the franchise business model.

FirstService grabbed my attention most. The company operates two distinct segments - residential property management and franchise brands - which gives you diversification within a single holding. What's compelling is that roughly 57% of revenue comes from their franchised operations, with over 1,500 franchisees and company-owned locations generating serious system-wide sales. Their property restoration brands (First Onsite and Paul Davis) were pulling in around $2 billion from just 450 locations, which hints at massive runway given the restoration market size.

Then there's European Wax Center. When it went public in 2021 at $16, it had 808 locations mostly franchised. By mid-2023, they'd grown to over 1,000 franchised locations across 45 states. The numbers looked solid - they were projecting system-wide sales north of $965 million. The concern back then was debt load, which was eating into profit growth despite operating income climbing nearly 20%. Classic franchise stock tension between expansion and balance sheet health.

Latham Group was the wild card - trading in penny stock territory despite being the largest residential pool manufacturer in North America. They went public in 2021 at $19, peaked around $31, then got absolutely hammered. The direct-to-consumer pool business model was innovative, but higher interest rates crushed demand. Sales were down 21% in the first half of 2023. The thesis was basically betting on interest rate normalization bringing back consumer spending on discretionary items like pools.

Looking back from 2026, these franchise stocks represent different risk profiles within the sector - from the stable, growing FirstService to the volatile, recovery-dependent plays. The franchise model itself remains attractive for investors seeking recurring revenue and scalability without massive capital requirements. Worth keeping these names on your radar if you're building exposure to this space.