According to the National Franchise Association, the GDP of the Franchise industry is set to increase 5.2 percent, to an estimated $426 billion from last year’s $405 billion. This industry has created 7.8 million jobs and is set to expand 3.3 percent this year, based on the statistics on the group’s Business Economic Outlook report. To say that there is opportunity for you in this industry, would be an understatement.
Owning a Franchise allows you to go into business for yourself, but not by yourself. A Franchise provides an individual owner or franchisee with a certain level of independence to operate their business. You are essentially buying the rights to an established product or service, which allows you the rights to an established and proven business system. A franchise increases your chances of business success because you are associating with proven products and methods. Franchises assure consumers a certain level of quality and consistency because it is mandated by the franchise agreement.
You will find that the term franchise is associated with some of the most popular fast food restaurants. However, there are more than 75 industries that operate within the franchising format. There are over 3,000 franchised brands in the U.S., so you have a plethora of options to consider if you are thinking about starting your own established business. Many of the stores and restaurants that you see every day are franchises. The most common are Subway, 7-11, McDonald’s, The UPS Store, Jiffy Lube, Supercuts, Hilton Hotels, Denny’s, and many more. Here are some of the most popular types of franchises that are available for you to consider.
- Restaurants make up the top percentage of Franchises in the world. The top fast food chain franchises include: McDonald’s, Subway, Taco Bell, Pizza Hut, among many others. However, these are not the only options when it comes to Restaurants. If you are looking to provide the “foodie” experience for your consumer…here are some options that might appeal to you: The Melting Pot, Another Broken Egg, Gyu-Kaka Japanese BBQ, Quaker Steak & Lube, Wow Bao, Go-Grill, Huddle House, Fresh Healthy Café, The Brass Tap, I Dream of Falafel, and SaladWorks.
- The Children’s entertainment and education industry made Entrepreneur’s list of top franchises to watch in 2015. Since then we have witnessed rapid growth in these types of business. These franchises range from tutoring centers such as Mathnasium and Kumon, to play places like Adventure Kids Playcare.
- Personal services such as maids and handyman services are also very popular businesses to consider. MaidPro is top ranked in the industry and Merry Maids falls right behind them. Unlike many franchises which sell a product or experience, this type of franchise is going to depend heavily on its employees and its hiring practices. Unlike other Franchises, this category tends to have lower start-up costs. Merry Maids offers in-house financing to cover the following: franchise fee, startup costs, equipment, and inventory.
- In 2016, analysts reported that the global wellness economy reached $3.7 trillion and growth is expected to accelerate by 17% in the next five years. There is a tremendous opportunity for Fitness outlets, like gyms and specialty studios. Forbes ranked Anytime Fitness as the top 5 on their list of best franchises with an initial investment of over $150,000. There are many other great fitness franchises to choose from in this category. Here are just a few of the many that are available to you: Pure Barre, 9Round, Crunch Fitness, Planet Fitness, Title Boxing Club, Charter Fitness, and Fit4Mom.
- The Health & Wellness market space is dominated mostly by beauty and anti-aging product sales, which generated $679 billion in 2016. Needless to say, there is definitely opportunity for growth in the Beauty/Spa industry. Some examples that fall in this category include: Supercuts, Elements Massage, The Joint Chiropractor, Urban Float, SeraSana, BodyBrite, and Massage Envy.
Top 20 Ranking Franchise
- 7-Eleven Inc. (Initial Investment: $37k-$1.6M)
- McDonald’s (Initial Investment: $1M – $2.2M)
- Dunkin Donuts (Initial Investment: $229K – $1.7K)
- The UPS Store (Initial Investment: $159K -$435K)
- Jimmy Johns Gourmet Sandwiches (Initial Investment: $326K – $555K)
- Dairy Queen (Initial Investment $361K – $1.8K)
- ACE Harware Corp. (Initial Investment: $273K – $1.6)
- Wingstop Restaurants Inc. (Initial Investment: 303K – $923K)
- Sport Clips (Initial Investment: $189K – $355K)
- RE/MAX LLC (Initial Investment: $38K – $224K)
- Kumon Math & Reading Centers (Initial Investment: $69K – $141K)
- Taco Bell (Initial Investment: $1.2M – $2.6M)
- Supercuts (Initial Investment: $144K – $294K)
- Anytime Fitness (Initial Investment $80K – $490K)
- Firehouse Subs (Initial Investment: $125K – $1.3K)
- Hardee’s (Initial Investment: $1.4M – $1.9M)
- Massage Envy (Initial Investment: $412K – 943K)
- Krispy Kreme Doughnut Corp (Initial Investment: $275K – $1.9M)
- Orangetheory Fitness (Initial Investment: $425K – $981K)
- Culver Franchising System Inc. (Initial Investment: $1.8M – $4.2M)
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