what are some franchise business

Some of the most successful franchise businesses in the United States include Subway, McDonald's, Pizza Hut, Burger King, and Dunkin' Donuts; but restaurants are not the only kind of franchise businesses available. Some business types are more appropriate for franchising than others.

Full Answer

Why are franchised businesses so successful?

Why Franchise?

• Lower Cost. Unlike employees, franchisees make an initial payment in return for becoming a part of your business and then they continue to pay you a percentage of their revenue, ...
• Simpler Management. ...
• Faster Expansion. ...
• Better Market Penetration. ...
• Greater Commitment. ...
• Less Recruitment. ...
• International Potential. ...

What are the best franchise opportunities?

Here is the 10 most profitable franchise business opportunities in the US

• Chick-fil-A. ...
• Jersey Mike's Subs. ...
• Kumon. ...
• Great Clips. ...
• Dunkin' Dunkin' Donuts LLC, also known as Dunkin', is an American multinational coffee and doughnut company, as well as a quick service restaurant.
• McDonald's. ...
• Jazzercise. ...
• Budget Blinds. ...
• uBreakiFix. ...
• MaidPro. ...

What is a good franchise to own?

What are the Best New Franchises to Own?

• McDonald’s. McDonald’s is one of the best food franchises to own in the world. ...
• The UPS Store. UPS is a global company with franchise opportunities for willing investors. ...
• Dunkin’ Donuts. ...
• Sonic Drive-In Restaurants. ...
• Taco Bell. ...
• Great Clips. ...
• Hardee’s. ...
• Jimmy John’s Gourmet Sandwiches. ...
• Culver Franchising System Inc. ...
• Supercuts. ...

More items...

What defines the best money-making franchises?

The best money-making franchises have a strong brand with a clear set of values that most people share. While all the things we have discussed so far are very important, none of it really matters if you don't have a quality product or service. Take for example, restaurant franchises. It all starts with delicious food.

What are examples of business franchises?

Examples of well-known franchise business models include McDonald's (NYSE: MCD), Subway, United Parcel Service (NYSE: UPS), and H&R Block (NYSE: HRB). In the United States, there are franchise business opportunities available across a wide variety of industries.

What are five examples of franchises?

Some notable examples of franchises include:McDonald's.Starbucks.Dominos.KFC.Pizza Hut.Subway.Dunkin' Donuts.Taco Bell.More items...

What are the 4 types of franchising?

The four types of franchise business you can invest inJob or operator franchise. These owner operator franchises are usually home based, which keeps overheads down to a minimum. ... Management franchise. ... Retail and fast food franchises. ... Investment franchise.

What are the top 10 food franchises?

Which Are the Best Food Franchises in India in 2022?KFC Franchise. Kentucky Fried Chicken (KFC) is the most famous fried chicken recipe brand with no competitors. ... Domino's Franchise. ... Subway Franchise. ... Tibbs Frankie Franchise. ... Chick Blast Franchise. ... Bubbles Franchise. ... Mozart Franchise. ... Amul Ice Cream Business.More items...•

Which franchise is best?

Top 100 Franchises 2022RankNameCountry1KFCUnited States of America27-ElevenUnited States of America3McDonald'sUnited States of America4Marriott InternationalUnited States of America16 more rows

What is the most successful franchise?

The 25 Highest-Grossing Media Franchises of All TimePokémon – $92.121 billion.Hello Kitty – $80.026 billion.Winnie the Pooh – $75.034 billion.Mickey Mouse & Friends – $70.587 billion.Star Wars – $65.631 billion.Anpanman – $60.285 billion.Disney Princess – $45.187 billion.Mario – $36.143 billion.More items...

How do I choose a franchise?

Top questions to ask when choosing a franchiseWhat 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.More items...

What is the most common type of franchise?

business format franchiseThe most common type of franchise is the business format franchise. This type of franchising facilitates the expansion of the franchiser business by allowing individuals to buy a business with an established brand name.

How do you create a franchise?

How to Franchise a BusinessMake sure your business is ready to franchise.Protect your business's intellectual property.Prepare a financial disclosure document (FDD)Draft a franchise agreement.Compile an operational manual for franchisees.File or register your FDD.Set a strategy to achieve your sales goals.

What is the number 1 franchise in the world?

McDonald'sMcDonald's The company enjoys over $90 billion in global sales and represents the largest franchise network in the world.

What is the most profitable franchise to own in 2022?

Most Profitable FranchisesDunkin'7-Eleven.Planet Fitness.JAN-PRO.Taco Bell.Orangetheory Fitness.Great Clips.Mac Tools.More items...•

Which industries are most likely to franchise?

Other commonly franchised industries include:Automotive repairs and services.Environmental services.Hair salons.Health aids and services.Computer and phone repair.Clothing stores.Children's services.

Is Coca Cola a franchise?

Coca-Cola is a franchise as a product distribution system and the largest beverage company in the world. As a product and trade name franchisor, The Coca-Cola Company licenses its franchisees to sell and distribute the end product using the franchisor's trademark, trade name, and logo.

Is Starbucks a franchise?

Starbucks Coffee doesn't franchise. Even though franchising is a classic, successful growth strategy for myriad beloved, familiar brands, Starbucks does not grant franchises. It's not because franchising isn't a time-tested model for growth. Many companies offer franchises.

Is Walmart a franchise?

Unfortunately, you cannot buy a Walmart as of 2022. Walmart is made up of various shareholders which makes Walmart not able to be a franchise. The Walton family still owns over 50% of the company through Walton Enterprises LLC and the Walton Family Holdings Trust.

Is KFC a franchise?

KFC Franchise is owned by Yum! brands, global franchisor whose 3 restaurant brands, Pizza Hut, Taco Bell and KFC, are amongst the largest and most well-known franchises in the world. They are leaders in their respective industries - Pizza, Mexican and chicken. Yum!

Do I own the rights to a franchise business name?

When you buy a franchise business, you’re only buying the license to use the company’s resources and not the rights to own or manage the company it...

Do I have to pay a royalty when I sell through the franchise?

The payment structure for each franchise business depends on the agreement you have with the owning company. For instance, a company may choose to...

What is the difference between a franchise fee and a royalty fee?

While both the franchise fee and royalty fee are necessary to own a franchise, the two are not the same. The franchise fee is the cost of buying a...

Can I sell a franchise?

If you’re not happy with your franchise business, you always have the option to sell it. Franchise exits are pretty common, especially in larger ci...

How does a franchise work?

In this franchise business, the franchisees invest in the business with their own money and management team, or engages the franchisor to operate the business while producing capital gain on exit or return on investment.

What is product franchise?

Product Franchise Business model depends on the supplier-dealer relationship, where the franchisee distributes the products of the franchisor. The franchisor licenses his trademark, but does not provide full access to the franchisee for running the business. They mainly deal with large products, but sometimes the franchisor not only licenses the distribution, but also a part of the manufacturing process.

What is a franchise business?

A franchise business, simply, involves an owner of a product or service who licenses some aspects of the business to a third party for their use. The owner, also known as the franchisor, grants the license to the third party, also known as the franchisee.

What are some examples of product franchises?

Some examples of Product Franchise Business are: Car & Repair Parts (Ford, Exxon) Computers (HP, Dell) Appliances (LG, Philips)

Why are conversion franchises so popular?

While the franchisees adopt the trademarks, marketing and advertising, training and client servicing programs, they are also popular for increasing procurement savings. With rapid growth and royalty potential in terms of units and income, the conversion franchise model is a hit in the industry.

Is franchisee business from scratch?

While the franchisee is not beginning the new business from scratch, it is easier for existing companies to rise quickly. The basic business and even the clientele doesn’t change as much. People using this business model benefit by gaining from the popularity, support systems and success of the brand.

Do you need to be a manager to run a franchise?

While the manager does not need to be a part of the day-to-day running of the business, it is ideal for someone with previous managing experience allowing individuals with transferable skills to take the ownership of the franchise and operate it to success.

Top 100 Franchises Report 2021: Overview

Annually, Franchise Direct takes a look at how the previous year in franchising went down through the lens of a number of popular and up-and-coming franchises in the world. Here's how our 2021 version came out.

Top 100 Franchises Report 2021: The 2020 Franchise Year in Review

This is how the novel coronavirus impacted franchises, from operations to franchise sales. In addition, we tell the story of a couple that took the plunge into franchise ownership in 2020.

Top 100 Franchises Report 2021: International Market Spotlight: New Zealand

The 2021 Top 100 Report concludes with a look at the New Zealand franchise industry, our international franchise market spotlight for this year.

What is the Kumon method?

The Kumon Method for improving math and reading comprehension was first created in 1958, based on a curriculum developed by Toru Kumon in Osaka, Japan. Today, Kumon Math and Reading Centers help students learn critical math and reading skills that prepare them for more complex concepts later on in their education. With a low cost to entry and high demand, Kumon can be a great opportunity to help students get a leg up on their education, while also creating a great business opportunity for prospective franchisees.

What is franchise investment?

All franchises come with some kind of investment, which usually comprises corporate fees, startup costs, real estate, staff, equipment and other expenses, too. Your investment will be contingent on several things, but the two most important are the mandatory expenses set by the parent company to get up and running as well as the regional expenses that dictate costs (in other words, some markets are more expensive than others).

How many states does Sonic have?

Sonic is an American fast-food staple with unmissable branding, mostly fueled by their drive-in style of service and unique soft drinks. With franchises in 46 states, Sonic offers a strong franchise opportunity that comes with a cult following for their unmistakable menu items (cherry limeade, anyone?) as well as core staples that customers expect and love.

What is Keller Williams?

Keller Williams has a reputation for providing real estate agents with opportunities to grow professionally while helping their clients find their dream homes. The company began in 1987 and has been attracting agents through profit-sharing agreements and other perks, which can make it easier for franchise owners to recruit and retain top talent.

What type of loan do entrepreneurs take?

Many entrepreneurs choose to take advantage of a business loan, including SBA loans, business lines of credit, term loans and equipment financing. To begin, check out the best franchise financing options.

Is Anytime Fitness a franchise?

Few fitness franchises are as hot right now as Anytime Fitness. This gym franchise focuses on offering group workouts as well as solo workout equipment. Best of all, the franchise provides members with a keycard to access the gym during off-hours, allowing people to work out on their schedule. Operating costs are low, and name recognition is high — so high, in fact, that there are currently 4,000 locations worldwide.

Is Ace Hardware a good franchise?

Ace Hardware is an excellent franchise prospect for providing an antidote to the big-box home improvement store experience, which is typically marked by unhelpful staff and overwhelming product choices. Instead, Ace Hardware locations pride themselves on hiring staff that put customer service at a premium and keeping product choices to a reasonable selection. Their franchises make it easier for local hardware stores to remain competitive against mega-stores by way of their cooperative structure and store-brand products.

Do I have to pay a royalty when I sell through the franchise?

For instance, a company may choose to accept royalties for every purchase in addition to a licensing fee. Companies can also work with a fixed-fee payment structure for each franchise location.

How does a car wash franchise benefit?

Car wash franchises with strong branding can benefit from repeat-purchase loyalty, helping you attract new customers and build long-term relationships—keeping your business profitable.

What is franchise business?

A franchise business is a licensing model of business where a successful company allows you to run a version of its business using its logo, processes, and in-house resources.

What companies are franchises for coffee?

Consider working with companies like Dunkin ’, Aroma Joe’s Coffee, and Scooter’s Coffee.

What is home service franchise?

Home service franchises offer services related to moving and housing. These work best for regional companies as most people prefer using local home repair and renovation services to save time and money.

What is the first industry that comes to mind when you think about shopping?

When people think about shopping, retail is one of the first industries that come to mind.

Is pizza a good franchise?

Popular food items like pizza have the potential to sell well, offering you a chance to build a profitable franchise business. This is one of those categories where there’s tight competition, but great growth potential.

How Does the Franchising Process Work?

The franchising process varies depending on the type of franchise arrangement, state, and franchisor guidelines. That said, a typical franchising process will look something like this:

What is a franchise disclosure document?

The franchise disclosure document, or FDD, forms the legal foundation to sell a franchise. It is a fundamental requirement for both the federal and state franchising laws. The FDD requires a franchisor to provide all franchise disclosure documents with their respective state regulators. Also, under the FDD, franchisors can renew their agreement with their franchisees at the end of an agreement in accordance with (Sec. 8) Small Business Franchise Act.

What is franchising in business?

New locations and desirable market: Franchising is a source of capitalized expansion to new and desirable locations. Rather than franchisors putting their own money into market research, franchisees invest their funds to establish a business in a desirable location.

How to get a franchisor to offer you a franchise?

Contact the franchisor's representative and schedule a meeting . A face-to-face meeting is an opportunity for you to know more about the business and help you make an informed decision. Key questions to consider include inquiring about how long the business has been in operation, its growth plan, and risk factors. After the interview, the franchisor should offer you their franchising brochures, guidelines, and other relevant initial documentation for potential franchisees.

What is business format franchise?

Business format franchise: This is the most common type of franchise arrangement. In this model, the franchisor allows a third party to do business using their trademarks and business model in exchange for fees and a recurring percentage of sales revenue. Franchisees under this model are run according to the parent company's guidelines and rules.

What is a franchise model?

Franchising, or a business franchise model, is a contractual business model or relationship whereby an established brand, known as the 'franchisor,' allows an independent business owner, or franchisee, to use its branding, business model, and other intellectual property. In return, the franchisee agrees to pay an upfront franchise fee, plus ongoing royalties to the franchisor.

What does franchising do for you?

Quality leadership and lower operating costs: The franchisor will train you and help you identify the best strategies to manage your business operations effectively while keeping your costs low.

What is a franchise?

A franchise is a business in which independent entrepreneurs use the rights to a larger company’s business 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 third-party owner and operator of the business locations.

What is club pilates?

Club Pilates is one of the top pilates franchises in the United States. Founded in 2007, this group fitness franchise carries out up to 8 million pilates workouts a year.

How much does a franchise cost?

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

What is super glass windshield repair?

SuperGlass Windshield Repair has been operating for 30 years and specializes in the repair of rock damaged and cracked windshields. Overhead costs can be kept low due to its mobile option — a physical shop location is not required. It also offers classroom and on-the-job training,

How long does it take to run a McDonald's franchise?

The franchise term for McDonald’s, for example, is 20 years.

How much does it cost to buy a franchise?

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

How long does it take to get started with 7-11?

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.

What Is a Franchise?

A franchise is a type of license that grants a franchisee access to a franchisor's proprietary business knowledge, processes, and trademarks , thus allowing the franchisee to sell a product or service under the franchisor's business name . In exchange for acquiring a franchise, the franchisee usually pays the franchisor an initial start-up fee and annual licensing fees .

What Are the Risks of Franchises?

Disadvantages include heavy start-up costs as well as ongoing royalty costs. By definition, franchises have ongoing fees that must be paid to the franchisor in the form of a percentage of sales or revenue. This percentage can range between 4.6% and 12.5%, depending on the industry.

How Does the Franchisor Make Money?

Typically, a franchise agreement includes three categories of payment to the franchisor. First, the franchisee must purchase the controlled rights , or trademark , from the franchisor in the form of an upfront fee. Second, the franchisor often receives payment for providing training, equipment, or business advisory services. Finally , the franchisor receives ongoing royalties or a percentage of the operation's sales.

What is franchise contract?

Franchise Basics and Regulations. Franchise contracts are complex and vary for each franchisor. Typically, a franchise agreement includes three categories of payment to the franchisor. First, the franchisee must purchase the controlled rights, or trademark, from the franchisor in the form of an upfront fee.

What does a franchisor receive?

Finally, the franchisor receives ongoing royalties or a percentage of the operation's sales. A franchise contract is temporary, akin to a lease or rental of a business.

How long does a franchise contract last?

It does not signify business ownership by the franchisee. Depending on the contract, franchise agreements typically last between five and 30 years, with serious penalties if a franchisee violates or prematurely terminates the contract.

When a business wants to increase its market share or geographical reach at a low cost, it may franchise its product?

When a business wants to increase its market share or geographical reach at a low cost, it may franchise its product and brand name. A franchise is a joint venture between franchisor and franchisee. The franchisor is the original business. It sells the right to use its name and idea. The franchisee buys this right to sell the franchisor's goods or services under an existing business model and trademark .

Who Owns the Business?

A business may have multiple locations without being a franchise. If the locations all have the same owner, then the business does not meet the definition of a franchise. A business franchise is defined by the structure of its ownership.

What is business format franchising?

Business Format Franchising refers to franchises where the franchisor and franchisee have an ongoing relationship in which the franchisor provides services such as site selection, training, marketing plans, and other tools for your business.

What is a franchise contract?

Franchises are built out of contracts between the franchisor and franchisees. As such, there are two places a franchisee can look to determine their rights and responsibilities within the relationship: the language of the contract itself and the relevant jurisdiction's contracts laws.

What is a franchise agreement?

The franchise agreement creates many of the most important rights and obligations between the franchisor and franchisee, including the degree of control the franchisor may exercise over the franchisee, terms of operation, training requirements, trademark and copyright obligations, renewal and termination options, and other important details. The jurisdiction's laws indicate how contracts are interpreted and enforced when the parties have a disagreement.

What are the advantages of franchise?

One of the great advantages of a franchise is that a relatively inexperienced businessperson can purchase a business that has many of the most complicated decisions have already been made by the franchisor. However, the difference in experience and sophistication between the prospective franchisee and franchisor can also make choosing and negotiating a franchise challenging. Consider contacting a local attorney with experience in franchise law to help locate and launch the right business opportunity for you.

What is the term for a business owner who grants a license to another person?

Franchising occurs when the owner of a business grants a license to one or more parties for the purpose of conducting business using the same trademarks, trade names, trade dress, and other identifying aspects of the business. The party granting the license is referred to as the "franchisor," while those purchasing licenses are referred to as the "franchisee."

Who pays the franchisor a fee?

The franchisee pays the franchisor a fee.