When was the last time you made a fast food stop or purchased a cup of java before work? If the brand is recognizable and has multiple locations throughout your city or boondocks, like McDonald's or Dunkin', information technology's quite possible your favorite nutrient joint is a franchise.

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Owning a franchise has countless benefits. You can profit from the franchiser's recognizable make while essentially running your own operation. The nearly profitable franchises rarely fail, removing the risks typically associated with opening a brand new business.

Let's accept a look at the definition of a franchise, the bones criteria for evaluating an opportunity, and the best franchises to own this year.

What is a franchise?

A franchise is a business concern in which independent entrepreneurs utilize the rights to a larger company's business organisation proper name, logo, and products to operate an individual location. The franchiser is the owner of the larger company who sells the rights to license their business, and the franchisee is the tertiary-party owner and operator of the business locations.

You lot've washed business with a franchise before, even if you don't know it. Peradventure yous've even considered purchasing and owning one yourself.

Only which franchises are best suited for your budget and skill set? Permit's take a look at how y'all can evaluate a franchising opportunity.

How to Evaluate a Franchise Opportunity

No franchise is i-size-fits-all. Entrepreneurs who want to open a franchise must take into account their budgetary constraints and the franchiser'south support organization during the evaluation phase.

Here are a few criteria that y'all should consider.

Franchise Fees and Set-Upwardly Costs

Every franchiser requires an upfront fee. This can range from hundreds to hundreds of thousands of dollars.

Preferably, the franchise fee would be paid out-of-pocket (though some franchisers offering financing options). Either way, we recommend having at least $10,000 to invest upwards-front.

Profitability

When you're evaluating a business investment, it's of import to know if the opportunity is worth the money. Determining the profitability of a franchise isn't an verbal science, merely there are a few factors to consider:

  • Unit growth: Encounter how many units (franchise locations) have opened in recent years.
  • New franchisee success rates: Look at the percentage of new franchises that are yet operating after a year.
  • Franchiser's fiscal statements: Analyze the franchise disclosure document and look at average sales per unit.

Support Systems for Franchisees

When selecting a franchiser, have a await at the support systems they've put in place to ensure their new location is a success.

7Eleven, for example, flies accepted franchisees to their support center in Dallas for training. They also have a resource middle with seminars and events. Not all franchisers, especially small ones, will have extensive resources like 7Eleven, only brand sure they offer basic training.

Time Commitment

Operating a franchise will be a decades-long commitment, ideally longer — you can't operate a shop and leave afterwards a twelvemonth. The franchise term for McDonald's, for instance, is twenty years.

Be sure that you're prepared to stick around for a while without pursuing other time-consuming commitments (such equally an additional career). If you lot experience that y'all'll want to go out in less than 10 years, be sure to choose a make whose franchises are easier to sell.

Available Territories

Most, if not all, franchisers are looking to abound in a particular geographical area. It wouldn't exist assisting, for example, to open up a new location just miles from some other, or in an area where there's no demand.

Be sure to check whether your target franchiser wants to open a location in your area. If not, decide whether you're willing to relocate.

Brand Recognition or Growth

How recognizable is the make that you'll be franchising? If it's a smaller brand, has it seen significant growth in the past twelvemonth?

These two characteristics volition determine whether it volition be profitable to operate a franchise for a prospective brand. Sometimes, going for a big, highly recognizable brand isn't ideal, because upward-front costs are significant.

A smaller franchiser could be an easier entry point — then long as the visitor has been growing in revenue.

Now that you know how to evaluate an opportunity, let'south have a wait at our list of the best franchise opportunities to select from. Throughout the pandemic, these franchisers have either seen growth or very little stagnation, making them the best franchises to own in 2021.

Best Franchises to Buy

  1. McDonald'due south
  2. 7-Eleven
  3. Dunkin'
  4. The UPS Shop
  5. Popeyes
  6. Sonic Drive-In
  7. Peachy Clips
  8. Taco Bell
  9. Kumon Math & Reading Centers
  10. Sport Clips

Allow's take a await at some of these franchises and see how they stack up. I'll review what each franchise requires in terms of the franchise fee and the initial investment yous'll need to make. A franchise fee is a toll a potential franchisee pays up front to operate the franchise. And the initial investment corporeality includes expenses such as royalty fees, real estate, and inventory costs.

Let'south take a await at some of these franchises and see how they stack up. I'll review what each franchise requires in terms of the franchise fee and the initial investment y'all'll need to make.

Each opportunity volition have the following information:

  • Category: This is the business or industry category for the franchise.
  • Franchise fee: A franchise fee is a toll a potential franchisee pays upward-front to operate the franchise.
  • Initial investment: The initial investment corporeality includes expenses such as royalty fees, real estate, and inventory costs.
  • Financing available: This volition tell you whether financing is available for initial investments.
  • Franchise details: This is a link that volition pb to the franchising page for the business.

1. McDonald's

Category: Fast-Food Franchise

Franchise fee: $45,000

Initial investment: $1,008,000 to $2,214,080

Financing bachelor: Yes, through tertiary-political party lenders

Franchise details: McDonald's

If you want aureate arches of your own, you'll need to put in a hefty initial investment. But with that investment, you lot get brand recognition, popularity, and years of experience in the fast-nutrient manufacture.

ii. 7-Eleven

Category: Retail Franchise

Franchise fee: $10,000 to $1,000,000

Initial investment: $37,550 to $1,149,900

Financing available: Yes, through 7-Eleven's internal program

Franchise details: 7-Xi

As the #1 convenience store, 7-Eleven is seeing unprecedented growth. Its stores are turnkey and you can get started within three to six months, including application, testing, and training.

3. Dunkin'

Category: Food & Beverage Franchise

Franchise fee: $forty,000 to $ninety,000

Initial investment: $109,700 to $1,637,700

Financing available: Yeah, through third-party lenders

Franchise details: Dunkin'

Dunkin' dropped the "Donuts" from its proper name, just this business concern is as recognizable as ever with locations in 32 countries. It was rated #ane in client loyalty by Brand Keys' Customer Loyalty Date Index. And they support their franchisees with training and assistance with site selection, structure, operations, management, and marketing.

4. The UPS Store

Category: Printing and Packing Franchise

Franchise fee: $29,950

Initial investment: $138,433 to $460,031

Financing bachelor: Yeah, through Guidant Financial

Franchise details: The UPS Shop

The UPS Store is the top-ranked franchise in the business services industry. It boasts financial stability, brand recognition, and dedicated training and back up — and 84% of the U.S. population lives within 10 miles of a UPS Shop.

v. Popeyes

Category: Fast-Food Franchise

Franchise fee: $l,000

Initial investment: $383,500 and $2,620,800

Financing available: No

Franchise details: Popeyes

Popeyes is consistently one of the top franchises to ain in Entrepreneur'due south Franchise 500 Rankings. Information technology'due south a well-known fast-food brand with a global presence, strong advertisement strategies, and well-adult core philosophies.

6. Sonic Drive-In

Category: Fast-Food Franchise

Franchise fee: $45,000

Initial investment: $1,240,000 to $3,540,000

Financing available: No

Franchise details: Sonic Drive-In

This drive-in chain prides itself on its operational excellence and customer service. This brand keeps growing — its franchise owners saw $1,341,000 in average gross sales.

7. Great Clips

Category: Hair Salon Franchise

Franchise fee: $20,000

Initial investment: $136,900 to $259,400

Financing available: Aye, through tertiary-party lenders

Franchise details: Cracking Clips

Great Clips has been in business for thirty years and provides its franchise owners with up-to-date technology and grooming. It has invested heavily in market research to provide customers with the best service and experience.

8. Taco Bell

Category: Fast-Food Franchise

Franchise fee: $25,000 to $45,000

Initial investment: $525,100 to $two,622,400

Financing available: Yeah, through third-party lenders

Franchise details: Taco Bong

This quick-service eating house make has been around for fifty years and has developed financial stability and brand recognition. It has a proven operating system and gives yous access to restaurant resource and a community of more 350 franchisees who know the business.

9. Kumon Math & Reading Centers

Category: Children'southward Education Franchise

Franchise fee: $1,000

Initial investment: $74,428 - $156,590

Financing available: No, merely Kumon will cover upwardly to $36,000 of your business expenses

Franchise details: Kumon

Kumon is ranked consistently in the meridian 10 of Entrepreneur'south Franchise 500 list. This is an ideal franchise to purchase because of its depression fee and potential for high profitability in a fourth dimension of remote learning.

10. Sport Clips

Category: Hair Salon Franchise

Franchise fee: $59,500

Initial investment: $224,800 to $373,300

Financing available: Yep, through third-party lenders

Franchise details: Sport Clips

Sport Clips is growing and showing its forcefulness and stability — it has a high continuity rate of 95.iv% over the past five years. This means that out of all the stores that opened throughout the final five years, more than than 95.4% of them are open today. It attributes this stability to relatively low startup costs, solid support systems, and continual monitoring of store performance.

Low-Cost/Inexpensive Franchises

The initial investment in a franchise tin 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 bespeak, there are options for you in a variety of industries.

1. Cruise Planners

Category: Travel Franchise

Franchise fee: $6,995

Initial investment: $ii,095 to $22,867

Financing available: Yes, through third-party lenders

Franchise details: Cruise Planners

Cruise Planners is a cruise planning agency. It's home-based, so you don't demand to cistron in the cost of real manor. Prior experience in travel planning is not required, and the company offers comprehensive training.

2. SuperGlass Windshield Repair

Category: Vehicle Maintenance Franchise

Franchise fee: $nine,500 to $28,500

Initial investment: $9,910 to $31,000

Financing available: No

Franchise details: SuperGlass Windshield Repair

SuperGlass Windshield Repair has been operating for xxx years and specializes in the repair of stone damaged and croaky windshields. Overhead costs can exist kept low due to its mobile option — a physical store location is not required. It also offers classroom and on-the-chore training,

iii. January-PRO

Category: Cleaning and Maintenance Franchise

Franchise fee: $ii,520 to $44,000

Initial investment: $3,985 to $51,605

Financing available: Yes

Franchise details: Jan-PRO

JAN-PRO is a commercial cleaning franchise whose clientele is other businesses. They offer 3 options for franchising: international master franchise, executive concern, and habitation-based opportunities.

four. Jazzercise

Category: Group Fitness Franchise

Franchise fee: $1,250

Initial investment: $2,500 to $38,000

Financing available: No

Franchise details: Jazzercise

If you lot're looking to commencement a depression-investment, practise business, a Jazzercise franchise might exist a proficient fit for you. It offers various toll points to brainstorm a franchise and you can find the ane that aligns with your budget.

5. Dream Vacations

Category: Travel Franchise

Franchise fee: $495 to $nine,800

Initial investment: $3,245 to $21,850

Financing available: Yes, through their internal financing system

Franchise details: Dream Vacations

Dream Vacations is a abode-based travel bureau franchise with no overhead or inventory — this keeps the cost of initial investment low. It's a great pick for military machine veterans and offers discounted investment prices.

All-time Franchises to Open up and Own

  1. Freddy's Frozen Custard and Steakburgers
  2. Culver's Butterburgers and Frozen Custard
  3. Planet Fitness
  4. Club Pilates
  5. Nix Bundt Cakes
  6. Pure Barre
  7. uBreakiFix
  8. Soccer Shots
  9. Mathnasium
  10. Kona Ice

Some companies have seen unprecedented growth or are particularly driven to grow. They're actively looking for new opportunities because they're still in the initial stages of expanding their reach.

These are prime opportunities for prospective franchisees. You lot tin accept advantage of a growing name in the business concern while being the reason the proper name grows and becomes more than administrative.

Beneath are our top picks for the best-growing franchises to buy. In this list, we'll accept a expect at the initial investment, the franchise'due south growth charge per unit over the by three years, and the number of franchise locations, or franchise units.

i. Freddy'due south Frozen Custard and Steakburgers

Initial investment: $640,552 - $2,077,046

Three-yr growth rate: 44.6%

Total franchise units: 386

This fast-casual eating place is known for its burgers and freshly-churned custard. Later on your initial investment, you tin can expect your restaurant to open in eight to eighteen months, depending on location and whether you're buying or leasing property.

2. Culver's Butterburgers and Frozen Custard

Initial investment: $2,349,000 - $5,356,000

Three-yr growth rate: 21.ii%

Total franchise units: 765

Founded in 1984, Culver's has been a well-recognized name in the burger and custard business. It's a top franchise and offers an established operating organization with over 35 years of experience.

iii. Planet Fitness

Initial investment: $968,100 - $4,113,000

Three-yr growth rate: 45.9%

Total franchise units: ii,059

Planet Fitness is known for its Judgment Free Zone® philosophy — making beginning-fourth dimension gym users feel comfortable as they begin their fitness journeys. This gym has over 14 one thousand thousand members and franchisees have a median annual operating income of $567,000.

four. Club Pilates

Initial investment: $178,000 - $365,200

Iii-year growth rate: 192.6%

Total franchise units: 597

Club Pilates is one of the pinnacle pilates franchises in the U.s.. Founded in 2007, this group fitness franchise carries out upward to 8 one thousand thousand pilates workouts a year.

5. Nothing Bundt Cakes

Initial investment: $430,200 - $624,300

Three-twelvemonth growth charge per unit: 60.6%

Total franchise units: 355

This bakery is unique because, despite beingness a franchise, it has a "Mom and Pop shop" feel. There are locations beyond the United States, and its cakes have been featured in popular media outlets like Food and Wine Magazine, Food Network "Unwrapped", and Franchise Times.

half-dozen. Pure Barre

Initial investment: $204,100 - $461,700

Three-year growth rate: xx.6%

Full franchise units: 563

Pure Barre is a popular, boutique fettle brand with nearly 600,000 clients. The business organisation offers multiple revenue streams: bar classes and activewear. And it provides support and training for real estate, operations, consulting, marketing, and more.

vii. uBreakiFix

Initial investment: $98,350 - $303,000

Three-year growth rate: xiv.viii%

Total franchise units: 585

uBreakiFix specializes in repairs of all types of electronics — from computers to TVs to gaming consoles. The rising of remote work and in-habitation entertainment makes this a slap-up contender for this year.

8. Soccer Shots

Initial investment: $41,034 - $55,100

Three-year growth charge per unit: 26.seven%

Full franchise units: 242

Soccer Shots is a children'south soccer program with a focus on character development. It has a low overhead price, supports its franchisees, and has well-established relationships with national brands similar Adidas and the U.S. Soccer Foundation.

9. Mathnasium

Initial investment: $112,750 - $149,110

Three-year growth charge per unit: 26.ane%

Total franchise units: 1,074

This math learning center opened in 2002, and its mission is to "help every kid understand — and master — math." Mathnasium has earned many accolades, and over the past iv years, its average-per-unit gross sales grew ten% annually.

10. Kona Water ice

Initial investment: $145,600 - $169,200

Three-year growth rate: 43.seven%

Total franchise units: 1,305

Kona Ice, a seller of shaved water ice, offers the benefit of having relatively low initial costs while nevertheless having solid make recognition. Each franchise is operated out of a truck, meaning that y'all won't spend coin on state or existent estate. The all-time part? You can open a Kona Ice location in less than 2 months.

Next, we curate the well-nigh assisting franchises overall — taken from both our listing and lists around the web.

Most Assisting Franchises

  1. Dunkin'
  2. 7-Xi
  3. Planet Fitness
  4. JAN-PRO
  5. Taco Bell
  6. Orangetheory Fitness
  7. Neat Clips
  8. Mac Tools
  9. Cruise Planners
  10. Jazzercise
  11. McDonald's
  12. Mathnasium
  13. Jimmy John's Gourmet Sandwiches
  14. Papa John'due south
  15. Someday Fettle

The franchises listed above are seeing the largest growth in franchise locations over the past yr, which is one of the key indicators of profitability.

Feeling overwhelmed? Not sure how to get started? Read our guide on how to go an entrepreneur to get the basics down before purchasing a franchise.

Get an Entrepreneur by Buying a Franchise

You can become an entrepreneur by starting your own business — or by ownership a franchise from a major make. Take advantage of an established brand name while enjoying the perks of running your ain performance. Franchises can be highly worthwhile to own, particularly when you lot create a strong concern programme that helps your profits grow.

Editor's note: This mail service was originally published in October 2022 and has been updated for comprehensiveness.

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Originally published February xviii, 2022 two:00:00 PM, updated July fifteen 2021