If you’re considering a new business opportunity, franchising can be as close to plug and play as you can get. By paying an initial fee and a licensing fee (also called a royalty), you’re granted the rights to sell branded products or services using the franchise’s trade name, business model, intellectual property, proprietary business knowledge and processes. Learn about the top franchises to own right now and the reasons to consider investing in one.
Related: Licensing vs. Franchising: Which One Is Right for You?
1. The UPS Store
According to Market Reports World, the courier and local delivery services market is projected to register a compound annual growth rate (CAGR) of more than 5% by 2023.
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.
Franchisees get assistance from UPS to secure a retail location, build the store, procure permits and bids as well as order equipment and computers. You’ll also have access to web-based training on operational procedures, product knowledge and business acumen.
- Investment: Startup costs vary by store size, market and location
- Traditional locations: $240,959 – $508,472
- Rural locations: $206,423 – $459,136
- Store in store locations: $80,357 – $216,148+
- Fees: Royalty fee of 5%; ad royalty fee of 2.5%
- Financial requirements: At least $75,000 in liquid assets
- Total locations: Nearly 5,000
2. Chick-fil-A
Is there ever a time when Chick-fil-A isn’t busy? Since 1967, this fast-casual restaurant has been wowing patrons with its excellent food and customer service.
In terms of the franchise application, it’s a highly selective process, which could take 1-2 years to complete. Additionally, there is a tiered application with multiple virtual and in-person interviews. This is a rigorous hands-on franchise opportunity focused on integrity.
- Investment: Franchise fee of $10,000 with investments estimated to be approximately $582,000-$2.25 million
- Fees: Royalty fee of 15%, plus 50% of pretax profits
- Minimum financial requirements: Specific figures are not listed, though a solid history of financial stewardship is required
- Total locations: 2,000+
3. Papa John’s
Papa John’s has been in the franchising business since the 1980s. Consider this popular pizza chain if you’re interested in owning multiple franchise units. Currently, Papa John’s is seeking to establish relationships with franchisees looking to operate at least 5 locations. The estimated cost to open a Papa John’s store is $130,120 to $844,420.
- Investment: Reportedly, one-time franchise fee of $25,000
- Fees: Royalty fees reportedly 5% of monthly net sales
- Minimum financial requirements: Minimum net worth of $750,000; minimum of $250,000 in cash or liquid assets
- Total locations: 5,000+
4. McDonald’s
McDonald’s is a long-standing franchise leader that has been in operation since the 1950s. Indeed, the famous golden arches are known throughout the world. In 2020 alone, the brand reported more than $93 billion in global sales. The reputation McDonald’s has earned makes it one of the best franchises to open.
- Initial investment: $1.40-$2.5 million, with an initial franchise fee of $45,000
- Fees: 4% royalty fee; 4%+ ad royalty fee
- Minimum financial requirements: $100,000 cash
- Total locations: 40,000+
5. 7-Eleven
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.
- Initial investment: $70,000-$1.2 million, with initial franchise fee of $0-$1 million
- Fees: Royalty fee varies; ad royalty fee of 1%
- Minimum financial requirements: $50,000-$250,000 cash
- Total locations: 77,000+
6. Taco Bell
Taco Bell was founded in 1962 and is part of Yum! Brands, which includes other notable eateries, such as Pizza Hut and KFC. This Mexican fast-food chain topped Entrepreneur’s Franchise 500 ranking list as the best franchise to buy in 2022. Franchising information on the company’s website is scarce. However, Entrepreneur reports the following.
- Initial investment: $575,600-$3,370,000; initial franchise fee of $25,000-$45,000
- Fees: Royalty fee of 5.5%; ad royalty fee of 4.25%
- Minimum financial requirements: $1.5 million net worth; cash requirement of $750,000
- Total U.S. locations: 7,500+
7. Firehouse Subs
Firehouse Subs has been around for almost 3 decades and operates throughout the U.S. Today, it’s a part of Restaurant Brands International, Inc., which also owns Burger King and Popeyes. If you want to be part of a franchise that gives back, consider that a portion of sales at Firehouse Subs locations goes to provide lifesaving equipment to first responders.
- Initial investment: Initial single-unit franchisee fee is $20,000; the average total cost for a traditional Firehouse Subs restaurant is $412,731
- Fees: Royalty is 6% of sales; franchisees spend between 3%-5% of sales on advertising
- Minimum financial requirements: At least $100,000 to invest
- Total locations: 1,200+
8. SONIC
SONIC’s roots go back to Oklahoma in the 1950s. Today, 95% of SONIC’s drive-ins are franchise locations. The eatery is part of the Inspire Brands line, which also includes Arby’s, Baskin-Robbins and Dunkin’, among others.
- Initial investment: Franchise fee of $45,000, with a total investment ranging from $1.24 to $3.5 million (excluding land)
- Fees: Royalty of 5%; advertising fee of 3.25%
- Minimum financial requirements: $500,000 in liquid capital needed and a minimum net worth of $1 million to open 1-2 units
- Total locations: 3,600+
9. Dunkin’
You can’t go wrong with coffee and doughnuts; these days, that’s not all Dunkin’ offers. Customers can also buy frozen drinks, teas, sandwiches, wraps, bagels and muffins. What once began as a single shop in Massachusetts in the 1950s has turned into a profitable global brand and another one of the best franchise opportunities throughout the U.S.
- Initial investment: Franchise fee of $40,000-$90,000, with an investment range of $526,900-$1.787 million for a traditional unit (1,200-2,600 square feet)
- Fees: Continuing franchise fee of 2%-6%; advertising fee of 5%
- Minimum financial requirements: $250,000 minimum in liquid assets and a net worth of $500,000 per restaurant
- Total locations: 8,500+ in U.S.
10. Kumon
Kumon is a math and reading learning center for children ages 3 and older. The program was developed by a Japanese father in 1954 and helps kids grasp key concepts through short, incremental assignments.
If you’re interested in opening one of these franchises, the company offers up to $36,400 in incentives to help cover some of the items needed for each franchise center.
- Initial investment: Investments range from $67,428-$145,640; franchise fee is $2,000
- Fees: Royalty fee of $34-$38 per student per month
- Minimum financial requirements: $70,000 in liquid capital and $150,000 net worth
- Total locations: 26,000+
11. Fast Signs
Fast Signs has been operating since 1985 and is a leader in the $29 billion sign industry. Today, the brand is recognized in 9 countries, where it offers design and installation services, signage products and visibility strategies. Franchisees benefit from ongoing business support, protected territories, nationwide marketing initiatives and national buying power.
- Initial investment: Average franchise fee $49,750; total investment $234,317-$322,489
- Fees: 3%-6% royalty fees; 1%-2% ad fees
- Minimum financial requirements: $80,000 available capital; $300,000 net worth
- Total locations: 750+
12. Snap-On
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.
Franchise financing is available through the company, and veteran franchisees are able to benefit from a $20,000 credit toward their initial tool inventory.
- Initial investment: Startup costs can range from approximately $34,000-$54,000, with total estimated investments ranging from roughly $175,000-$412,000
- Fees: No advertising fee; royalty fee reportedly $150 per month
- Minimum financial requirements: Approximately $37,500-$55,500
- Total locations: 4,800 mobile stores in more than 130 countries worldwide
13. Orangetheory Fitness
Orangetheory Fitness studios are located throughout the U.S., and the company boasts more than 500,000 members worldwide. The concept of this fitness studio is to provide members with a 1-hour, full-body workout focused on training endurance, strength and power.
Though franchise opportunities are limited, with less than 0.1% of new interested parties becoming franchisees, this is another one of the best franchises to consider owning in 2022 and beyond.
- Initial investment: Franchise fee of approximately $60,000, with initial investment of approximately $575,000-$1.5 million
- Fees: Ongoing royalty fee of 8%
- Minimum financial requirements: $500,000 in net worth; liquid cash requirement of $150,000
- Total locations: 1,400+ franchises is 27 countries
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14. School of Rock
This music education company has been in operation for over 2 decades and operates in 15 countries. Today, there are more than 35,000 students worldwide, including kids and adults. Participants can learn guitar, keyboard, drum or singing skills and hone their technique with one-on-one instruction, group sessions and live concerts.
- Initial investment: Franchise fee is $49,900; total investment on a single location ranges from $395,800-$537,400
- Fees: 8% monthly royalty fee
- Minimum financial requirements: $125,000 in liquid assets and $350,000 in net worth
- Total locations: 290+
15. Great Clips
Great Clips has been operating for over 35 years and is the official hair salon of the National Hockey League (NHL). It provides haircut and styling services to men, women and children on a walk-in basis or by appointment and is open 7 days a week.
- Initial investment: Franchise fee of $20,000, with initial investment ranging from approximately $146,000-$302,000
- Fees: 6% royalty fee and 5% ad royalty fee
- Minimum financial requirements: Liquid assets of $50,000-$75,000 and net worth of $300,000-$500,000
- Total locations: 4,200+
16. Visiting Angels
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.
You’ll receive comprehensive training to get started as well as ongoing corporate support. Additionally, national TV ad campaigns run on major networks, such as CNN, Fox News and HGTV, and local marketing guidance is provided.
- Initial investment: Franchise fee $49,950-$79,950, with initial investment of $84,085-$125,885
- Fees: Royalty fees start at 3.5%, with a floor royalty rate of 3% depending on revenue
- Minimum financial requirements: Not listed
- Total locations: 500+
17. Senior Care Authority
Senior Care Authority is another franchising chain of elderly care services to consider when you’re researching the best franchises to own this year. It was listed as one of the top affordable franchises you can start in your 50s by AARP. The company offers consulting to families who are considering assisted living, nursing homes or other long-term care options.
- Initial investment: Total investment is $71,095-$90,395, with an initial franchise fee of $52,500
- Fees: Not listed
- Minimum financial requirements: $50,000 in liquid capital and $150,000 in net worth
- Total locations: 70+
18. Kona Ice
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%.
- Initial investment: Franchise fee of $15,000 with a total cost of $140,350
- Fees: Annual royalty fee may be paid over 3-6 months, including $3,000 for the first 5 years, $3,500 for years 6-7 and $4,000 for 8 years or more
- Minimum financial requirements: Cash deposit of $20,000
- Total locations: 1,300+
19. Dairy Queen
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.
- Initial investment: Franchise fee is $45,000, with an investment range totaling $1,461,200-$2,426,990
- Fees: 4% royalty fee and 5%-6% marketing fee
- Minimum financial requirements: $400,000 in liquid capital needed for a single unit and $750,000 in net worth required
- Total locations: 6,800+ worldwide
20. Nothing Bundt Cakes
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.
- Initial investment: Franchise fee of $35,000, with total investment ranging from $430,200-$624,300
- Fees: 6% royalty and 5% marketing royalty collected weekly
- Minimum financial requirements: $150,000 in liquid capital and combined net worth of $600,000
- Total locations: 430+
21. Valvoline Instant Oil Change
Another of the best franchise opportunities of the year is the vehicle servicing brand Valvoline, with the average operating income per store is nearly $233,000. In operation since 1986, the company has grown to serve more than 9 million customers annually in 42 U.S. states. As a franchisee, you’ll receive training and onboarding for yourself and your employees.
- Initial investment: Development costs for a single service center can range from $200,000-$2 million depending on whether you build or buy an existing facility or purchase or lease property, equipment and signage
- Fees: Not listed
- Minimum financial requirements: Liquid assets of $300,000-$800,000 and a net worth of $1 million
- Total locations: 900+
22. RE/MAX
If you’re interested in the real estate industry, consider buying into RE/MAX, which has been in operation since the 1970s. Under the RE/MAX model, real estate agents operate under a high commission structure, and each one is responsible for their own business. The brand is in more than 110 countries and employs over 140,000 agents worldwide.
- Initial investment: Franchise fee of $17,500-$37,500, with total initial investments ranging from $33,000-$236,500
- Fees: Monthly fees are reportedly $138 per sales associate, with a franchise fee of 1% gross commissions and revenue and technology fee of up to $15 per sales associate; additional fees, such as marketing fees, annual dues and renewals also apply
- Minimum financial requirements: $35,000 in cash
- Total locations: 9,000
23. Monster Tree Service
Tree care services make up a multi-billion dollar industry, one which Monster Tree Service began capitalizing on in 2008. Since then, it’s grown from a small company in the northeastern U.S. to one of the largest providers today.
Services include commercial and residential tree removal, pruning, trimming and plant health care. Interested franchisees who are veterans, women or minorities are eligible for financial incentives.
- Initial investment: Single territory franchise fee of $49,500, with a total investment of $422,166-$568,358
- Fees: For each royalty period, the royalty fee is calculated using the greater of: (a) the applicable percentage; or (b) the minimum royalty fee, as determined here:
- 6.5% of sales collected for the first $1 million in annual sales
- 5% of sales collected for annual sales from $1,000,001-$2 million
- 4.25% of sales collected for annual sales from $2,000,001-$3 million
- 3.5% of sales collected for annual sales over $3 million
- Minimum financial requirements: $150,000 in liquid capital and $500,000 net worth
- Total locations: Not listed
24. Jan-Pro Cleaning & Disinfecting
MarketResearch.com reported that the multi-billion dollar commercial cleaning services industry will experience 5.4% annual gains through 2025.
The fast-growing international commercial cleaning franchise Jan-Pro offers the opportunities to get long-term and steady contracts with clients in industries such as auto dealerships, daycare and preschools, banks, government, property management, retail, fitness centers, business offices, medical facilities, restaurants, manufacturing and more. Additionally, the company has a dedicated team of sales professionals who find guaranteed clients for franchisees, so you don’t have to worry about selling.
- Initial investment: $1,250-$50,000
- Fees: 10% royalty fee and 1% ad fee
- Minimum financial requirements: $50,000 in liquid capital and $150,000 net worth
- Total locations: 8,500+
25. MaidPro
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.
- Initial investment: Franchise fee of $35,000, with a total estimated initial investment of $94,560-$119,800
- Fees: 4%-7% monthly royalty fee and 2% marketing fee
- Minimum financial requirements: $100,000 net worth and $25,000 in cash
- Total locations: 250+
Why Buy Into One of the Best Franchises Opportunities of 2022
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.
Here are some reasons to consider investing in one of the top franchises of 2022.
Industry Resilience
According to the International Franchise Association, the industry has a long history with modern franchising dating back to the 1850s. It has survived many economic recessions, adapted to new market conditions and proven to be very resilient.
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 in 2022.
Technology-Driven Practices
During the COVID-19 pandemic, most people have 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.
Even legacy franchises have made strides to adopt technologies that will keep them relevant. For example, many are supporting franchisees with digital platforms to connect with customers and operate cost-efficiently when in-person interactions aren’t possible.
Focus on Entrepreneurship
Entrepreneurship has become an attractive option to many. Many younger generations, for example, are turning to franchising to build a legacy while leveraging the support of an established brand. These entrepreneurs are also bringing with them innovative ideas that will help franchisors adapt to new consumer demands and behaviors so they can become more relevant.
Tried-and-True Business System
There’s no time to reinvent the wheel in today’s fast-changing market. Becoming a franchisee allows you to leverage an established brand name already trusted by consumers as well as a proven business system and infrastructure, so you don’t have to start everything from scratch.
You can get support from franchisors in different areas to run your business cost-effectively while meeting changing consumer expectations. These can include site selection and development, research and development of new products or services, technical and field support, marketing and advertising and training for your management team.
Choosing the Best Franchise Business for You
The coronavirus pandemic has changed the business world. As the dust is settling, entrepreneurs now have insights to identify the best franchising opportunities for 2022 and beyond.
By balancing market conditions, consumer trends, your area of interest or expertise and the amount of capital you have available to invest, it’s not a far-fetched dream to own a successful franchise.
FAQs
What is the biggest franchise in the world 2022? ›
1. McDonald's. Founded in 1954, McDonald's has since climbed to be one of the most widely-recognized franchises in the world. The company currently operates more than 33,000 locations worldwide, with profits exceeding $89 billion.
Which franchise can I make the most money? ›- McDonald's. Units in operation: 39,360. ...
- Dunkin Donuts. Units in operation: 12,800. ...
- Taco Bell. Units in operation 12,800. ...
- Subway Franchise. Offers Financing: Yes. ...
- Anytime Fitness Franchise. Units in operation: 4,904. ...
- Sonic. Royalty: 2.5% - 5.0% ...
- Planet Fitness. Royalty 7.0% ...
- Orangetheory Fitness.
The bottom line is that while a franchise can make you independently wealthy, it isn't a guarantee. Choosing the right business in the right industry, and going in with preexisting entrepreneurial experience and/or existing wealth can help, but your income-generating potential may still be somewhat limited.
Whats a good return on a franchise? ›The General Rules of Thumb
However, there is an oft-repeated rule of thumb that, after the second full year in business, a franchisee should be realistically able to anticipate a 15- 20% per year ROI plus an equitable salary for whatever work they do in the business.
| Franchise name/rank | Category/Description |
|---|---|
| # 1 7-Eleven | Convenience Stores Convenience stores |
| # 2 Century 21 Real Estate | Real Estate Real estate |
| # 3 KFC | Chicken Chicken |
| # 4 Stratus Building Solutions | Commercial Cleaning Environmentally friendly commercial cleaning and disinfecting |
- 5/10 Godzilla Is The Longest-Running Movie Franchise.
- 4/10 Harry Potter Connected With An Entire Generation.
- 3/10 Batman Has A Long History With Cinema.
- 2/10 Star Wars Changed Movie Franchises Forever.
- 1/10 The Marvel Cinematic Universe Reigns Supreme.
If you're a fledgling entrepreneur or a seasoned business person wanting to diversify your holdings, you've probably wondered, “Are franchises a good investment?” The simple answer is yes, especially if a great opportunity presents itself. There is an obvious appeal to starting a business via buying a franchise.
How long before franchise becomes profitable? ›Building a profitable franchise is likely to take at least two years, but once you're there, you're golden, and you're nearly guaranteed to get there if you put in the work.
Do franchise owners set salary? ›In some cases, to maintain uniformity or to take advantage of bulk purchasing, a franchisor may recommend its franchisees pay their employees using a particular vetted and approved payroll software. In other situations, franchise owners may have complete freedom to choose whatever payroll method they see fit.
What are 5 keys to success in owning a franchise? ›- Motivation to Succeed. Successful franchise owners are devoted to their brand. ...
- Follow the System. Franchise owners are given a playbook for success. ...
- Open to Support. ...
- Avoid Burnout. ...
- Become a Valuable Community Member.
What are the 3 types of franchises? ›
There are three main types of franchise opportunities available, these are: Business format franchises. Product franchises, or Single operator franchises. Manufacturing franchises.
What are 3 examples of franchise? ›Examples of well-known franchise business models include McDonald's (NYSE: MCD), Subway, United Parcel Service (NYSE: UPS), and H&R Block (NYSE: HRB).
Is it risky to buy a franchise? ›Like starting any business, buying a franchise involves risk. Although most franchisees are satisfied and successful, some do suffer financial losses. That's why you must be particularly wary of any company that “guarantees” profit or certain success.
Are franchise owners happy? ›Owning and operating a franchise is one path to reaching your maximum potential, making for a fulfilled career and happy life. Most business owners (more than 75%) are happy about running their own business. Above all, this is primarily attributed to the fact that they're able to take control of their work life.
How much does a single franchise owner make? ›The Numbers
When researchers accounted for the inflations caused by the few top franchises, it was established that the average annual income of 51 percent of franchisees is less than 50,000 dollars. The study also found that only 7 percent of franchise owners earn over 250,000 dollars a year.
IFA surveys suggest that, in the USA, 92% of franchise businesses are still operating after 5 years. This is compared to an 80% national small business failure rate.
Am I better off buying a franchise or starting a new company? ›It's always better to buy a franchise rather than starting a new startup business. Franchise owners are more likely to become successful entrepreneurs as compared to the owners of a startup business. Starting a new startup from scratch can be extremely difficult.
Which franchise was the cheapest to buy? ›- Cruise Planners. Franchise fee: $10,995. ...
- Fit4Mom. Franchise fee: $5,495 to $10,495. ...
- Chem-Dry. Franchise fee: $23,500. ...
- Jazzercise. Franchise fee: $1,250. ...
- Stratus Building Solutions. ...
- SuperGlass Windshield Repair. ...
- Mosquito Squad. ...
- Pillar to Post Home Inspectors.
- Cruise Planners. Franchise fee: $10,995. ...
- Jazzercise. Franchise fee: $1,250. ...
- Help-U-Sell Real Estate. Franchise fee: $15,000. ...
- United Country Real Estate. Franchise fee: $8,000 to $20,000. ...
- Stratus Building Solutions. ...
- Anago Cleaning Systems. ...
- JAN-PRO. ...
- Dream Vacations.
How much is a 30 minute hit franchise? ›
How much does 30 Minute Hit franchise cost? 30 Minute Hit has a franchise fee of up to $40,000 with a total initial investment range of $100,000 to $165,000.
What franchise has been rebooted the most? ›- Spider-Man. Spider-Man is one of the most popular comic book superheroes of all time, which is why he's had so many movies made about him. ...
- The Jungle Book. ...
- Godzilla. ...
- The Texas Chainsaw Massacre. ...
- The Terminator. ...
- Planet of the Apes. ...
- Batman. ...
- Tarzan.
...
18 Affordable Franchises Under 10K in the U.S.
- Krispy Krunchy Chicken. ...
- Java Dave's Coffee House. ...
- Capriotti's Sandwich Shop. ...
- MOMLETA / Baby Boot Camp. ...
- Fit4Mom. ...
- Jazzercise. ...
- Social Owl. ...
- Fastest Feedback.
Often the best answer to a franchise that is not succeeding is for the franchisee to sell the business to a third party who becomes the new franchisee for that territory. This allows the failing franchisee to terminate its obligations under the franchise agreement and under any lease.
Is owning a franchise stressful? ›It's a lot of work
It's a hard job with long hours, many weekends and a lot of stress. Running your own business is always a lot of work. It's especially true in a restaurant that is usually open seven days a week and all day at that.
Warning. Buying a franchise might seem like easy money, but those royalties and fees will quickly cut into profit margins. The majority of franchise owners earn less than $50,000 per year.
Is it hard to sell a franchise? ›Selling an operating franchise has a higher success rate than selling an independent business because most buyers place a high value on the support provided by the franchisors. Unlike franchises, most independent businesses lack the infrastructure and systems that make a business attractive to buyers.
How many hours a week does a franchise owner work? ›Owning a franchise unit can be demanding, requiring work of 60 to 70 hours a week, but owners have the satisfaction of knowing that their business's success is a result of their own hard work. Some people look for franchise opportunities that are less demanding and may only require a part-time commitment.
What businesses make millions? ›- Business Consulting: ...
- Cleaning Services: ...
- Courier Services: ...
- Personal Chef: ...
- Tutoring, both face to face and online: ...
- Property Management: ...
- Technology Consulting and Repair. ...
- Marketing Services:
States charge businesses franchise taxes for the privilege of incorporating or doing business in the state. Franchise tax is different from a tax imposed on franchises. And, it is not the same as federal or state income taxes. Business owners must pay franchise taxes in addition to business income taxes.
What is a disadvantage of franchising? ›
Disadvantages to franchisees include high costs and royalty payments, strict product rules, lack of support from uninterested franchisors, lack of flexibility in where to locate and how to trade, and other start-up challenges. Entering into an agreement with an interested franchisor is important.
Can franchise owners get fired? ›While franchisees are not technically employees of a franchise brand, they can be “fired” by franchisors, who reserve the right to terminate their contract “for cause.” This involves ending the relationship based upon a default under the franchise agreement.
What makes a strong franchise? ›What makes a good franchise is an agile yet strong and supportive infrastructure. All franchisees need initial training when they start. Even if they have experience, they'll still need to learn the ropes of your operating model. Providing ongoing training ensures standards are maintained and benchmarks are met.
What makes a good franchise owner? ›To be a successful franchise owner, you must know how much you can invest and how much risk you are willing to take. You need to account for living expenses until the franchise is profitable and make sure you have enough money to provide everything your franchise needs.
What skills does a franchise owner need? ›- Marketing Skills. ...
- Business Management Skills. ...
- A Business Owner Mentality. ...
- Family Support. ...
- Ability to Follow a System.
- What are my personal goals? ...
- What type of industry do I want to conduct business in? ...
- What are my strengths?
- What role do I want to play in the business? ...
- What kind of commitment do I want to make? ...
- What is my investment budget? ...
- A strong support system for franchisees.
C-Corporations
C-corps are more ideal for the franchisor than the franchisee, primarily for their equity distribution for investors. This legal structure is most commonly used for publicly traded companies with several equity investors and executive boards.
Soft franchise
The agreements are much more flexible and leave a lot of room for the individual entrepreneurship of the franchisees. Often only a logo or name is shared and it's difficult to recognize the business as a franchise. There are, however, also cases with stricter agreements and controls.
Well-known franchise operations include McDonald's, Holiday Inns, Ace Hardware, Rexall Drug Stores, and Amway Distributors.
What is pure franchising? ›Many franchisors choose to have no corporate-owned stores, only franchised ones. This means they are a “pure” franchise and their entire system is made up of franchisees. The advantage of this model is that their main focus can be on their franchisees.
What is the most profitable franchise to own in 2022? ›
- Dunkin'
- 7-Eleven.
- Planet Fitness.
- JAN-PRO.
- Taco Bell.
- Orangetheory Fitness.
- Great Clips.
- Mac Tools.
| Rank | Name | Industry |
|---|---|---|
| 1 | KFC | Food Franchises |
| 2 | 7-Eleven | Retail Franchises |
| 3 | McDonald's | Fast Food Franchises |
| 4 | Marriott International | Travel Franchises |
There are basically two types of franchises. There's Product Distribution Franchising (or what's really called traditional franchising), and there's Business Format Franchising, which most people recognize as franchising.
Is it a good time to buy a franchise 2022? ›There are always unknowns, but most signs indicate that 2022 is going to be a great year to buy a franchise. If business ownership has been on your list of goals, then resolve to learn more about it.
What is the #1 franchise according to the Franchise 500 rankings? ›One common misconception when it comes to operating a franchise is that once you sign on the dotted line and open for business, the customers and revenue will start flowing. This is typically not the case. It normally takes a year or two to become profitable.
Is it wise to buy a franchise? ›If you're a fledgling entrepreneur or a seasoned business person wanting to diversify your holdings, you've probably wondered, “Are franchises a good investment?” The simple answer is yes, especially if a great opportunity presents itself. There is an obvious appeal to starting a business via buying a franchise.
How much does the average franchise owner make? ›According to a survey done by Franchise Business Review involving 28,500 franchise owners, the average pre-tax annual income of franchise owners is about 80,000 dollars.
What franchises can you start with 100k? ›- Healthy YOU Vending. ...
- Blue Moon Estates. ...
- The Lending Network. ...
- Automated Ecom Profits - Amazon FBA. ...
- Phoenix Ecom. ...
- Mathnasium. ...
- Build My Brand. ...
- Kumon Math and Reading Centers.
Bottom line, franchises have a higher overall success rate than startups. Franchises operate under a predetermined business model that has already brought success while independent businesses make adjustments and decisions to their business model as they go.