One of the best ways to start a new business is by capitalizing on a franchise opportunity. Not only do franchise opportunities come with premade marketing collateral and high brand awareness, but you get extensive business support from the franchiser.
When was the last time you made a fast food stop or purchased a cup of coffee before work If the brand is recognizable and has multiple locations throughout your city or town, like McDonald's or Dunkin', it's quite possible your favorite food joint is a franchise.
In fact, the US Census reports that 11.4% of all businesses in the US are franchises. While restaurants make up the bulk of franchise opportunities, gas and convenience stores, car dealerships, fitness, real estate, and hospitality sectors also make up a sizable chunk.
Determining the profitability of a franchise isn't an exact science, but there are a few factors to consider, including the unit growth, new franchisee success rate, and the franchiser's financial statements.
7Eleven, for example, flies accepted franchisees to their support center in Dallas for training. They also have a resource center with seminars and events. Not all franchisers, especially small ones, will have extensive resources like 7Eleven, but make sure they offer basic training.
Popeyes is consistently one of the top franchises to own in Entrepreneur's Franchise 500 Rankings. It's a well-known fast-food brand with a global presence, strong advertising strategies, and well-developed core philosophies.
Great Clips has been in business for 30 years and provides its franchise owners with up-to-date technology and training. It has invested heavily in market research to provide customers with the best service and experience.
This quick-service restaurant brand has been around for 50 years and has developed financial stability and brand recognition. It has a proven operating system and gives you access to restaurant resources and a community of more than 350 franchisees who know the business.
Ace Hardware exudes a local feel, which starkly contrasts the big-box home improvement stores like Home Depot and Lowe's. This franchise prides itself on stellar customer service and store-brand products.
The initial investment in a franchise can be pricey, and range anywhere from a few thousand dollars to over a million. If you're looking to purchase a franchise at a lower price point, there are options for you in a variety of industries.
JAN-PRO is a commercial cleaning franchise whose clientele is other businesses. They offer three options for franchising: international master franchise, executive business, and home-based opportunities.
If you're looking to start a low-investment, exercise business, a Jazzercise franchise might be a good fit for you. It offers various price points to begin a franchise and you can find the one that aligns with your budget.
This bakery is unique because, despite being a franchise, it has a \"Mom and Pop shop\" feel. There are locations across the United States, and its cakes have been featured in popular media outlets like Food and Wine Magazine, Food Network \"Unwrapped\", and Franchise Times.
Soccer Shots is a children's soccer program with a focus on character development. It has a low overhead cost, supports its franchisees, and has well-established relationships with national brands like Adidas and the U.S. Soccer Foundation.
That does come at a premium cost, such as franchise fees and ongoing royalties paid out to the franchisers. However, you will see a high return-on-investment once new customers begin walking in almost immediately after opening the location.
In addition to dictating how your business runs, franchises also lack autonomy when it comes to finances. Your franchisor will most likely control all aspects of the franchise's financial dealings. Be prepared to routinely submit financial statements such as your balance sheet and income statements.
In addition to startup costs, franchise owners should budget funds for reinvestment in the business and other fees stipulated by the franchisor. These additional costs can come in the form of training fees, royalty fees or other services like advertising.
First up, make sure that you have a good enough credit score to qualify for loans. Having a savings account is also essential. Keep in mind that some franchisers could require you to pay for the up-front fee without a loan. For that reason, you should consider franchises that accommodate your unique financial situation.
Small business loans are an excellent option for covering your franchise fee and up-front investments. Depending on your financials and your lender, you can qualify for hundreds of thousands of dollars, which will more than cover you during the setup phase.
Needless to say, one of the best franchise businesses is United Parcel Service (UPS). You can leverage its brand name to open a brick-and-mortar UPS Store that provides shipping and printing services to local customers.
Founded in 1927, this convenience store chain has established itself as one of the best franchises to invest in. The company offers up to 65% financing on the initial franchise fee for qualifying applicants. Virtual seminars are offered periodically for those interested in buying a franchise.
Opportunities are available to convert another building into a 7-Eleven store or run a 7-Eleven that you lease from the parent company. Multi-franchise investments are also available, with one-third of franchisees operating this way.
Snap-On is a mobile tools company founded in Wisconsin in 1920 and franchised since the 1990s. U.S. manufacturing facilities are located in more than 10 states throughout the country. In 2021, Snap-On earned net sales of $4.25 billion, with more than 80,000 stock-keeping units in its product line.
The need for senior care and elderly services is ever-present and rising with aging populations. If this top franchise opportunity sounds appealing, consider that franchisees average nearly $1 million in annual gross sales with 15%-18% in net profit, according to Visiting Angels.
Kona Ice is a brand of shaved-ice trucks popular at community, sporting and personal events. It was founded in 2007 and was recently named the third-most affordable franchise you can start in your 50s by AARP. The initial inventory pack is designed to generate approximately $50,000 in revenue. Partial franchise financing is available for 60 months at 8.99%.
Ice cream franchise Dairy Queen has been serving up sweet treats since 1938, with contemporary menus sporting burgers, fries and chicken tenders too. If this industry appeals to you, consider that franchisees benefit from support from regional marketing managers, operations business consultants, purchasing and distribution and more.
Founded in 1997 in Las Vegas, Nothing Bundt Cakes is making a name for itself with its array of specialty cakes. Currently, franchise stores are found throughout the U.S. and Canada. Entrepreneur ranked the company No. 19 among the top franchises to own in 2022.
Another popular cleaning service brand is MaidPro, named among the top 10 low-investment franchises to buy in 2022 by Forbes, which noted its 5-year growth rate as 9.65%. The average annual revenue for franchisees with a single territory is $489,433, according to MaidPro. The company offers up to $100,000 in low-interest loans for qualified franchisee applicants as well as discounted franchise packages for veterans.
The endurance of the franchising industry and new technologies that allow business owners to work effectively from home will attract young entrepreneurs to franchise opportunities in various verticals.
Franchising opportunities are attractive to people who have saved substantial amounts of money and have the capital to invest. Industry veterans predict that high unemployment and low interest rates will lead to an increase in franchise sales.
During the COVID-19 pandemic, most people adapted to using various online tools to work and communicate. With the aid of technology and a new remote working mindset, many franchise owners are now running their businesses virtually. They also recognize the advantage of being able to work from home.
Not only are franchises more likely to succeed than traditional businesses, but franchising is becoming a more popular route to business ownership. The International Franchise Association (IFA) released its annual report, which anticipates franchise growth of 2.2% in 2022.
The additional revenue stream for parent brands (franchisors) is a huge incentive for offering franchise opportunities, and the improved technologies and supply chain logistics have made it easier for brands to scale franchises.
Franchises only work because the franchisor has garnered enough brand equity or other proprietary value to pass on to other locations. The act of franchising involves scalability, and franchises need explicit support from franchisors to succeed.
Taco Bell currently sits atop the Franchise 500 list, but would it still be the most profitable franchise if every entrepreneur opened a Taco Bell Even more importantly, would you feel excited or passionate about running one
Choosing the best franchise is about finding the right one for you within the market you intend to operate. Because every situation is different, consider the following questions when deciding which franchise is best.
The World Travel and Tourism Council (WTTC) projects the travel industry to rebound to pre-pandemic levels in 2022. This is great news for travel agencies like Cruise Planners. Founded in 1994, this travel agency brand has grown to offer more than just planning cruises. If you own a Cruise Planners franchise, you own a full-service travel agency as an American Express Travel Representative.
If bringing joy to your community sounds like a fun business, you may be the perfect franchisee for Card My Yard. Best of all, you can own one with an investment of less than $10,000. As a Card My Yard franchise owner, you get access to a turnkey eCommerce website, ongoing training, and marketing collateral.Learn more about owning a Card My Yard franchise 404. 59ce067264