If you’ve ever eaten at a great restaurant on vacation and wished there was the same restaurant in your own city, maybe they have a franchise that you can buy and open your own! There are many people who have entered the franchise market to create a profitable business.
A franchise is a company that grants permission to a person or group of people, authorizing them to carry out specific commercial activities. Franchising is a business strategy used to capture and retain market share. This business model helps build an image in the minds of current and potential customers about the benefits of the company’s products and services.
The franchise allows people to share a proven way of doing business, create brand identification, and help with distribution and marketing. Basically, franchises involve a strategic alliance between individuals who have particular relationships and responsibilities and have a common goal of capturing and dominating markets.
Basically, buying a franchise involves investing your resources in a proven business model. You and the other franchisees have a joint commitment to finding and keeping customers. You are legally obliged to serve customers using the operating and marketing systems prescribed by the franchisor.
To be successful in franchising, you need to understand the business and legal implications of your relationship with other franchisees and the franchisor. You need to understand that other franchisors are not your competition, but your assets to improve brand awareness, which is mutually beneficial.
The following are a sampling of the top franchises to consider. They are classified based on initial investment, growth, and closing.
1. 7-Eleven
This company was founded in 1927 by Joe C. Thompson, who was an employee of the Southland Ice Company, and began selling bread, eggs, and milk in addition to blocks of ice. He eventually bought the business and began opening convenience stores. 7-Eleven offers a renewable ten-year franchise agreement and its royalty rate is negotiable. Franchise fees range from $ 10,000 to $ 1 million, with a total investment ranging from $ 30,000 to $ 1.6 million.
2. Meter
Started in 1965 by Fred DeLuca and his friend Peter Buck in Connecticut with a thousand dollars, this business was started with the sole objective of getting DeLuca to college. The company began franchising in 1974 and currently has operations in 98 countries worldwide. The franchise agreement lasts for twenty years and is renewable. Subway has an ongoing royalty rate of eight percent for franchises and can cost between $ 85,000 and $ 263,000 for the initial investment.
3. Dunkin ‘Donuts
This company owes its origins to a donut shop in Massachusetts. It can be found in more than 32 countries worldwide. They offer more than seventy types of donuts. This company attracts a royalty rate of five percent from franchisees. The duration of the contract is not renewable. You will have to invest between $ 300,000 and $ 1.5 million dollars to buy said franchise.
4. Pizza Hut
Founded by Frank and Dan Carney in 1958, the company opened a franchise just one year later. More than five decades later, Pizza Hut can be found in various locations worldwide. Franchisees have to pay a six percent ongoing royalty fee, a $ 25,000 franchise fee on a twenty-year contract. The individual must have a net worth of not less than $ 700,000 and have liquid cash of $ 350,000.
5. Servpro
What began in 1967 as a painting entity was later transformed into a cleaning and restoration company by its founders, Ted and Doris Isaacson. This company specializes in offering cleanup and repairs after fire or water damage and disaster restoration. Potential franchisees must be worth at least $ 100,000 with $ 85,000 in liquid cash. The franchise fee is $ 43,000 with a royalty fee of between three and ten percent. The total investment is between $ 130,000 and $ 180,000.
If you want to make money from a franchise, consider these top contenders and research additional businesses offering opportunities. The franchise business is a great way to earn a living by providing great products and services to the community.
