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If you are looking to start your own business, but want the security of an already established corporate framework, buying a franchise could be a good fit for your entrepreneurial endeavors. A franchise allows individuals to buy into and use an existing company’s brand name, logo, products and all other rights under that company’s umbrella.
Owning a franchise is essentially the paint-by-number method of starting a business. The outline and resources are already there, but you now get to operate your location by paying the larger company, or franchiser, for the rights to license their business.
What Is a Franchise Opportunity?
As all franchise opportunities vary greatly, from risk to reward, there is no cut-and-dry method to running a successful franchise business. Franchise opportunities exist in a multitude of industries at varying buy-in price ranges. Before diving in, be sure you understand how many of those franchises are projected to still be open after one year, and what that success rate looks like. Other factors to consider include the unit growth of how many of that franchises have opened in the past few years, as well as the franchise financial statements of that company.
To truly assess whether or not a certain franchise is a good investment for you, you can analyze based on the following factors:
- What is the franchise fee?
- What is the royalty fee for that franchise?
- What is the projected initial investment?
- What is the projected liquid capital requirement?
While delving into these questions it helps to see what real franchise opportunities currently resemble. After some configuration, the 15 best franchise opportunities that rose to the top might surprise you as six are in the fast-food industry while the other nine are in a wide array of industries.
Fast-Food Franchise Opportunities
One of the most common ways of breaking into the restaurant franchise business is through the fast-food chain sector. All projected figures are estimations so be sure to check with your local company’s updated franchise guidelines.
1. Dunkin’
With great brand recognition even after dropping the “Donuts” from its name, Dunkin’ is a popular spot serving coffee, donuts and more.
Franchise fee: $40,000 to $90,000
Royalty fee: 4{194d821e0dc8d10be69d2d4a52551aeafc2dee4011c6c9faa8f16ae7103581f6} to 5{194d821e0dc8d10be69d2d4a52551aeafc2dee4011c6c9faa8f16ae7103581f6}
Initial investment: $121,400 to $1.6 million
Available liquid capital requirement: $125,000 to $250,000
2. McDonald’s
It would be difficult to find any person internationally, let alone locally who would not recognize the golden arches of McDonald’s. Because it is one of the most famous food and drink franchise options, they have a tried and true corporate strategy in place for purchasing franchises.
Franchise fee: $45,000
Royalty fee: 4{194d821e0dc8d10be69d2d4a52551aeafc2dee4011c6c9faa8f16ae7103581f6}
Initial investment: $1 million to $2.3 million
Available liquid capital requirement: $500,000
3. Popeyes
With its roots and flavors stemming from Louisiana, Popeyes has made a name for itself in the franchise market, especially with its famous fried chicken. It has popular advertising as well as a stronghold in the fast-food industry.
Franchise fee: $50,000
Royalty fee: 5{194d821e0dc8d10be69d2d4a52551aeafc2dee4011c6c9faa8f16ae7103581f6}
Initial investment: $383,500 and $2.6 million
Available liquid capital requirement: $500,000
4. Sonic
The retro-style Sonic Drive-In offers customers a taste of nostalgia as well as quick-serve classics like burgers, fries and shakes. This fare is ordered from a speaker in a covered drive-in and then delivered right to the car.
Franchise fee: $45,000
Royalty fee: 2.5{194d821e0dc8d10be69d2d4a52551aeafc2dee4011c6c9faa8f16ae7103581f6} to 5{194d821e0dc8d10be69d2d4a52551aeafc2dee4011c6c9faa8f16ae7103581f6}
Initial investment: $1.2 million to $3.5 million
Available liquid capital requirement: $500,000
5. Taco Bell
With its Mexican-inspired menu, Taco Bell is considered one of the largest taco chains in the world. It keeps growing in popularity thanks to its ever-evolving menu items at low prices, its social media presence and creative advertising and promotions.
Franchise fee: $25,000 to $45,000
Royalty fee: 5.5{194d821e0dc8d10be69d2d4a52551aeafc2dee4011c6c9faa8f16ae7103581f6}
Initial investment: $575,600 to $3.4 million
Available liquid capital requirement: $750,000
6. 7-Eleven
Though not technically a restaurant, the convenience store 7-Eleven does specialize in quick eats, and of course the iconic “Slurpee” frozen drink. It has seen a massive amount of growth in the last few years and the turnaround time for opening a franchise is relatively quick given it averages between three to six months.
Franchise fee: $1 million
Royalty fee: Varies by location
Initial investment: $37,550 to $1.1 million
Available liquid capital requirement: $50,000
Other Franchise Opportunities
When seeking a franchise outside the world of fast food or restaurants worry not, there are numerous other options available. Keep in mind that these projected figures are also estimations so be sure to assess your franchiser’s current data.
- Ace Hardware
- Anytime Fitness
- Planet Fitness
- Great Clips
- Keller Williams
- Kiddie Academy
- Kumon Math & Reading Centers
- Primrose Schools
- Merry Maids
7. Ace Hardware
Trying to separate itself from its other hardware counterparts, Ace Hardware emphasizes customer service and enhancing the shopping experience. It is one of the largest retailer-owned home improvement product cooperatives in today’s business landscape.
Franchise fee: $5,000
Royalty fee: Varies by location
Initial investment: $280,000 to $2 million
Available liquid capital requirement: $250,000
8. Anytime Fitness
Anytime Fitness is a 24-hour and co-ed fitness center that prides itself on being the most convenient place to work out for its customers. Gym members get a keycard to access the center even during off hours, which helps people work around their busy schedules.
Franchise fee: $25,000 to $42,500
Royalty fee: $699 per month
Initial investment: $35,000 to $693,917
Available liquid capital requirement: $160,000
9. Planet Fitness
The Planet Fitness franchise model centers around having a judgement-free environment to encourage customers who are new to exercising. It is not for professional bodybuilders, but rather for the average person looking to get in better shape. It also offers lower fees than other gyms which helped increase its business volume.
Franchise fee: $20,000
Royalty fee: 7{194d821e0dc8d10be69d2d4a52551aeafc2dee4011c6c9faa8f16ae7103581f6}
Initial investment: $1 million to $4.2 million
Available liquid capital requirement: $1.5 million
10. Great Clips
As a hair salon, Great Clips has been in business for over 30 years and offers hands-on training and technological updates to any who buy into the franchise. Great Clips is a full-service salon for men, women and children.
Franchise fee: $20,000
Royalty fee: Varies by location
Initial investment: $136,900 to $259,400
Available liquid capital requirement: $50,000
11. Keller Williams
Keller Williams Reality is one of the largest real estate franchises in the world. It centers around real estate agents and allows them to professionally grow while profit sharing.
Franchise fee: $183,947 to $336,995
Royalty fee: 6{194d821e0dc8d10be69d2d4a52551aeafc2dee4011c6c9faa8f16ae7103581f6}
Initial investment: $35,000
Available liquid capital requirement: $150,000
12. Kiddie Academy
Kiddie Academy Child Care Learning Centers are great for child education and development, as well as provide much-needed child care for busy parents. There are franchise opportunities in nearly every state and there is high demand for quality educational child care.
Franchise fee: $120,000
Royalty fee: 7{194d821e0dc8d10be69d2d4a52551aeafc2dee4011c6c9faa8f16ae7103581f6}
Initial investment: $342,600 to $643,500
Available liquid capital requirement: $250,000
13. Kumon Math & Reading Centers
As one of the industry’s most sizable after-school programs, Kumon Math & Reading Centers place importance on educating the right way, and with the right tools. Kumon’s curriculum emphasizes math and reading skills and prioritizes preparing kids for their future education.
Franchise fee: $1,000 to $2,000
Royalty fee: Varies per student, per month
Initial investment: $74,428 to $156,590
Available liquid capital requirement: $70,000
14. Primrose Schools
Each Primrose School location is operated by an independent franchise owner. These schools offer education programs year-round and have an exclusive approach to early education.
Franchise fee: $50,000 to $80,000
Royalty fee: 2{194d821e0dc8d10be69d2d4a52551aeafc2dee4011c6c9faa8f16ae7103581f6} to 7{194d821e0dc8d10be69d2d4a52551aeafc2dee4011c6c9faa8f16ae7103581f6}
Initial investment: $637,900 to $6.4 million
Available liquid capital requirement: $350,000
15. Merry Maids
Merry Maids is one of the biggest house-cleaning franchises domestically. This growing cleaning franchise has nothing but potential. It has a strong business model and is in high demand as everyone wants a clean house but may not have the time or inclination to do it themselves.
Franchise fee: $37,500 to $51,500
Royalty fee: 5{194d821e0dc8d10be69d2d4a52551aeafc2dee4011c6c9faa8f16ae7103581f6} to 7{194d821e0dc8d10be69d2d4a52551aeafc2dee4011c6c9faa8f16ae7103581f6}
Initial investment: $94,480 to $144,425
Available liquid capital requirement: $85,000
Franchise Requirement Summary
| Franchise | Fees | Initial Investment | Liquid Capital Requirement |
|---|---|---|---|
| Dunkin’ | Franchise Fee: $40,000 to $90,000 Royalty Fee: 4{194d821e0dc8d10be69d2d4a52551aeafc2dee4011c6c9faa8f16ae7103581f6} to 5{194d821e0dc8d10be69d2d4a52551aeafc2dee4011c6c9faa8f16ae7103581f6} |
$121,400 to $1.6 million | $125,000 to $250,000 |
| McDonald’s | Franchise Fee: $45,000 Royalty Fee: 4{194d821e0dc8d10be69d2d4a52551aeafc2dee4011c6c9faa8f16ae7103581f6} |
$1 million to $2.3 million | $500,000 |
| Popeyes | Franchise Fee: $50,000 Royalty Fee: 5{194d821e0dc8d10be69d2d4a52551aeafc2dee4011c6c9faa8f16ae7103581f6} |
$383,500 to $2.6 million | $500,000 |
| Sonic | Franchise Fee: $45,000 Royalty Fee: 2.5{194d821e0dc8d10be69d2d4a52551aeafc2dee4011c6c9faa8f16ae7103581f6} to 5{194d821e0dc8d10be69d2d4a52551aeafc2dee4011c6c9faa8f16ae7103581f6} |
$1.2 million to $3.5 million | $500,000 |
| Taco Bell | Franchise Fee: $25,000 to $45,000 Royalty Fee: 5.5{194d821e0dc8d10be69d2d4a52551aeafc2dee4011c6c9faa8f16ae7103581f6} |
$575,600 to $3.4 million | $750,000 |
| 7-Eleven | Franchise Fee: $1,000,000 Royalty Fee: Varies by location |
$37,550 to $1.1 million | $50,000 |
| Ace Hardware | Franchise Fee: $5,000 Royalty Fee: Varies by location |
$280,000 to $2 million | $250,000 |
| Anytime Fitness | Franchise Fee: $25,000 to $42,500 Royalty Fee: $699 per month |
$35,000 to $693,917 | $160,000 |
| Planet Fitness | Franchise Fee: $20,000 Royalty Fee: 7{194d821e0dc8d10be69d2d4a52551aeafc2dee4011c6c9faa8f16ae7103581f6} |
$1 million to $4.2 million | $1.5 million |
| Great Clips | Franchise Fee: $20,000 Royalty Fee: Varies by location |
$136,900 to $259,400 | $50,000 |
| Keller Williams | Franchise Fee: $183,947 to $336,995 Royalty Fee: 6{194d821e0dc8d10be69d2d4a52551aeafc2dee4011c6c9faa8f16ae7103581f6} |
$35,000 | $150,000 |
| Kiddie Academy | Franchise Fee: $120,000 Royalty Fee: 7{194d821e0dc8d10be69d2d4a52551aeafc2dee4011c6c9faa8f16ae7103581f6} |
$342,600 to $643,500 | $250,000 |
| Kumon Math & Reading Centers | Franchise Fee: $1,000 to $2,000 Royalty Fee: Varies per student, per month |
$74,428 to $156,590 | $70,000 |
| Primrose Schools | Franchise Fee: $50,000 to $80,000 Royalty Fee: 2{194d821e0dc8d10be69d2d4a52551aeafc2dee4011c6c9faa8f16ae7103581f6} to 7{194d821e0dc8d10be69d2d4a52551aeafc2dee4011c6c9faa8f16ae7103581f6} |
$637,900 to $6.4 million | $350,000 |
| Merry Maids | Franchise Fee: $37,500 to $51,500 Royalty Fee: 5{194d821e0dc8d10be69d2d4a52551aeafc2dee4011c6c9faa8f16ae7103581f6} to 7{194d821e0dc8d10be69d2d4a52551aeafc2dee4011c6c9faa8f16ae7103581f6} |
$94,480 to $144,425 | $85,000 |
Owning a Franchise
There is no shortage of franchise opportunities if you are looking to own and operate your own business. Each option comes with its own possibilities and price points, so be aware that these projections are merely estimations based on company information. Some franchises require a certain amount of net worth as well as these other factors. Buying a franchise can be a good headstart to running your own business.
FAQ
- What is the most profitable franchise to get into?
- Though there are several underlying variables, according to the 2021 Franchise 500 Ranking the top most profitable franchises were Taco Bell and Dunkin’.
- What is the easiest franchise to start?
- Opening any business takes work, but there are some franchises with few restrictions than others. It just depends on how much you are willing to invest both financially and physically.
- Can you get rich owning a franchise?
- Franchises can be a good way to quickly open a business with less overhead, which leads to earning profit sooner than you would if you started from scratch.
- What is the number one franchise to own?
- Though there are several underlying variables, according to the 2021 Franchise 500 Ranking the most profitable franchise was Taco Bell.
Information is accurate as of Nov. 9, 2022.
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