Franchises are companies that give products and services the right to name for a certain price. These companies have proven their high-quality and reputation and have been successful. In the franchise system, the franchisee of a brand provides support for the business’s management and execution. This support provided by the brand to the franchise owner is under certain conditions. In the franchise model, the brand allows independent investors to use its brand for a certain financial price. This business model is called the franchise. The franchise system is accepted all over the world today. Before we get to our top ten franchise opportunities, let us give you a few examples.
Singer brand first implemented the franchise business model in 1863. Singer brand first applied this model in the distribution system. In 1988, General Motors used the franchise system. Then, in 1902, the Recall company used the franchise system. After the 1950s, the franchise system has undergone its fastest-growing period. During this period, franchise businesses spread all over the world. It especially gained momentum in the trade sector. During this period, the first association of the franchising system, the IFA, was established in 1960. (International Franchise Association)
Franchises are one of the best business opportunities. So, what are the elements of the franchise businesses?
Elements of the Franchise Businesses
Take a look at these franchise elements to better understand why people wish to grow a franchise instead of a smaller business.
System & Brand
Before giving a franchise, you must be a company that has achieved success in the following areas.
- Company presentation
The above elements are the most necessary elements to give a franchise. A person who wants to buy a franchise thinks about the possibility of winning financially and morally. After that, they get into this job. Therefore, it is important to improve the company’s quality in all aspects before switching to the franchise system.
Quality work is essential in the franchise industry. The parties should be able to work with each other for many years, in the sense of trust. This is how they get along and apply. To ensure a certain discipline, brands should check the places where they give a franchise. They should also provide training.
Why Switch to Franchising System?
You spend a lot of energy and time when starting your own business. You may save time and energy with the franchise system. The franchising system has years of knowledge. Thanks to this, it provides you with a competitive advantage in a short time. It may provide a solution to even the slightest problem. With someone at the top level, it saves both time and money. Since it is a known brand or product, you may easily sell it. Because it is a ready-made system, you will spend less time promoting your product or brand. You may also sell faster and with higher quality.
The Entrepreneur has been ranking the top 500 franchises in the USA for 40 years. The criteria they use in this ranking are:
Total Costs and Fees
- Franchise fee
- Total investment fee
- Royalty fee
Size and Growth
- Open dealers
- Working units
- Total growth rates
- Training times
- Marketing support
- Operational support
- Franchisor infrastructure
- Financial availability
- Social media
- System size
- Years in business and sector
- Years in franchising
What are the Most Common Franchise Sectors?
Franchises operate in almost every industry that you may imagine. However, there are certain sectors in which it appears to be common. Some of them are the following industries. These industries depend on a large presence in the restaurant, hotel, and home-based industries:
- Carpet cleaning
- Maintenance and cleaning services
- Household furnishings
- Home repair and remodeling
- Real estate
Franchises are often seen in business support services. These are as follows:
- Mail processing
- Package shipping
- Printing services
- Advertising services
- Personal services
Other commonly franchised sectors are as follows:
- Home care
- Hair salons
- Children’s services
- Computer and phone repair
- Environmental services
- Health aids and services
- Clothing stores
- Automative damage restoration and services
Let’s list the best franchise opportunities now.
10 Best Franchise Opportunities
Here are the 10 best franchise opportunities that you need to know to understand what makes a good franchise.
Franchising start date: 1955
Total number of units: 13k
Franchise cost: Between $ 400k – $ 1.5 mn
Dunkin’ is at the top of our list of the best franchise opportunities. As you know, the Dunkin’ brand was formerly called Dunkin Donuts. But, Dunkin’ dropped the word “Donuts” from its brand name in 2018. Despite this, Dunkin’ managed to sell more donuts. Thanks to this, it deserved to be number one on our list. This is the kind of energy we should all use in the new year: “Let go of what was left of the past, continue to grow and innovate.”
Franchising start date: 1964
Total number of units: 7,150
Franchise cost: Between $ 525k – $ 3 mn
Taco Bell ranked 45th on the “Franchise 500” list a few years ago. Today, it has risen to 2nd place on the same list. The growth performance of the company in the last short period was effective in this. If we look at the just last two years, the fast-food business has grown enormously. The fast-food business grew by 6% in 2018 t0 $ 11 billion. They predict that store sales will increase by 5% as of the third quarter of 2019. Also, overall sales will increase by 8%.
The key to this growth of Taco Bell is a POS system directly integrated into the Gruphub app. Also, more than 4800 stores that offer home delivery in the US location have been effective in this. Taco Bell calls these business services focused on convenience.
Franchising start date: 1955
Total number of units: 38k
Franchise cost: Between $ 1.3 mn to $ 2.2 mn
McDonald’s ranks 3rd in our list of the best franchises to own. Isn’t it surprising that this huge company is still growing? There are several reasons McDonald’s may achieve this. First, the company focuses on technological solutions to improve business services. They manage to optimize all of their already fast platforms into even more speed-focused locations. These places are now more accessible than ever.
McDonald’s currently handles 10 delivery orders every second. The most important reason underlying this success is that they have systematically optimized all their stores. That’s what makes them one of the most profitable franchises.
Franchising start date: 1959
Total number of units: 3,600
Franchise cost: Between $ 1.2 mn to $ 3.5 mn
Sonic Drive-In is at 4th place on our list of top franchises. So, what makes Sonic Drive-In 4th on this list. Sonic Drive-In has been on the market for over 60 years. The company is completely focused on the future. The company constantly updates its menu and completely renew it when necessary. Sonic focuses on analytics collected through the new pre-order app. Thanks to this, it helps to find the right offer for each customer. Inspire Brands bought Sonic for $ 2.3 billion in 2018. Thus, it settled in the same company family as Arby’s and Buffalo Wild Wings. The company is preparing to present a new brand logo this year. Who might know where Sonic will be in the future? However, you may be sure that it won’t stay still.
The UPS Store
Franchising start date: 1980
Total number of units: 5,200
Franchise cost: Between $ 140k to $ 500k
A six-figure investment label is definitely a huge amount. That’s why UPS offers the most affordable franchise on this list. This is a good opportunity to be a business owner. UPS offering franchises with the lowest start-up costs. If you are looking for franchises for sale, UPS might be a good option. Most businesses are focus on the future on this list. However, UPS is just as focused on returns. Tim Davis, president of UPS store, said: “About a third of online purchases are returned. That has become a quite attractive business for us.”
These words do not mean that UPS Store is a retrograde business. UPS has actively signed agreements with several major retailers to become an official returns courier. One of the biggest changes in UPS Stores is evident before you step into the store. The UPS Store evaluates a brand new store concept. They have added to the company’s traditional brown palette white, yellow, and blue colors.
Franchising start date: 1976
Total number of units: 5,300
Franchise cost: Between $ 300k to $ 2 mn
There is an ACE store within 15 minutes to 75% of all homes in the USA. The retailer sold more than $ 16 billion last year, according to company sources. In the third quarter of 2019, ACE’s online sales increased by 81%. This is because the company has begun to offer customers the opportunity to deliver their orders at the nearest store. ACE recently acquired the Denver-based Handyman Matters franchise. This shows that ACE continues to focus on personal customer service.
Franchising start date: 2003
Total number of units: 1900
Franchise cost: Between $ 1.1 mn to $ 4.2 mn
A fitness franchise should run so lean. Planet Fitness CEO Chris Rondeau describes their business in the following words: “We don’t have pools, we don’t have classes, we don’t have instructors to pay. We run our stores with 15 people.” This allows Planet Fitness to have a basic membership pricing policy of only $ 10 per month. Thus, Planet Fitness targets 80% of Americans who do not have a gym membership. According to the company’s sources, Planet fitness memberships have doubled over the past five years. Planet fitness memberships have grown from 7 million to over 14 million in the last five years. This proves how effective business strategies are.
Jersey Mike’s Subs
Franchising start date: 1987
Total number of units: 1,600
Franchise cost: Between $ 240k to 800k
Jersey Mike’s Subs deserves to be ranked 8th on our best franchise opportunities list. The company aims to have 2,000 restaurants and $ 2 billion in sales by the end of 2020. Jersey Mike’s Subs’ growth surely has a secret. The key to this growth is that Jersey Mike’s Subs’ existing franchisees open more franchises. Regarding this growth, Jersey Mike’s Subs CEO Mike Manzo stated: “That is telling us two things. One, franchisees are happy. Two, they are profitable enough to be investing back into their brand.”
Franchising start date: 1988
Total number of units: 720
Franchise cost: Between $ 2 mn to $ 5 mn
What is Culver’s key to success? The answer to this question will surprise you. The first is scrubbing floors. The second is picking up garbage. The company runs a 16-week training program for franchisees at Culver’s ButterBurger University in Wisconsin. During this training program, they ask franchise owners to sweep the floor and pick up garbage. So in this training program, they prove to franchise owners that no one wants to do the dirty work. The company gave 175 new franchises as a result of this program. So this training program seems to be successful. Culver’s also makes great burgers and frozen custard. Hard work never hurts, right?
Franchising start date: 1959
Total number of units: 18k
Franchise cost: Between $ 360k to $ 2.2 mn
Pizza Hut announced that they’re planning to close 500 restaurants where you may eat in the US in August 2020. Despite this, they also announced that they opened thousands of international franchises in the past three years. Pizza Hut had a hard time due to the increasing competition in the domestic market. However, the international market allowed Pizza Hut to thrive. Another growth opportunity for Pizza Hut comes with football. Pizza Hut signed new partnerships with FL and EA Sports.
Franchising start date: 1964
Total number of units: 70k
Franchise cost: Between $ 50k to $ 1.2 mn
7-Eleven growing for a long time. It also continues to grow at a massive rate today. In the last two years alone, they have added more than 4500 units. 7-Eleven ranked first in Entrepreneur in 2017. Recently, they are one of the most preferred franchise opportunities. That’s why they deserved to be on our list of the best franchise opportunities.
FAQ About the Best Franchise Opportunities
Business format franchise, Disclosure statement, FDD (The Franchise Disclosure Document), Franchise, Franchise agreement, Franchisee, Franchising, Franchisor, Product distribution franchisee, Royalty, Trademark.
The FTC franchise rule is a federal regulation. The FTC franchise rule requires that franchisers prepare a comprehensive disclosure document. Franchisors need to give a copy of this document to any prospective franchise buyer.
First of all, you may use the Directory of Franchise Attorneys. Second, you may use the American Bar Association’s Forum on Franchising. You may also use IFA’s council of Franchise Suppliers (CFS).
There are two main factors affecting franchise opening costs. The first of these is the location cost. The second is the size of the store. You may find detailed information about the factors affecting franchise opening costs from FDD.
You may use the International Franchise Association directory. They have the largest directory of available franchise opportunities online.
Shortly, the Best Franchise Opportunities
Franchises have been a common business model for a long time. Singer brand was the first to introduce the franchise business model. Franchise businesses have two elements. These are the system, brand, and discipline. System and brand require these are: Company presentation, branding, high-quality, and service. The franchise system has important advantages. These advantages may give you an edge in the market. Lastly, a bigger business should go hand to hand with bigger marketing strategies. So if you are serious about expanding your business, you must study various marketing techniques as well.