If you are looking for a business opportunity, it’s time to consider a franchise. The US franchise industry is one of America’s largest and fastest-growing industries.
A franchise opportunity in the U.S. is recognized as a progressive and favoured method of working by bringing large corporations and small entities together for mutual gain.
Franchising offers numerous benefits to both the franchisor and franchisee. It facilitates a company with a unique asset-light model for expeditious expansion. It provides individuals with a comparatively safer and more successful formula of a ready-made business with its already established brand. Though franchising has multiple benefits, it still has to be approached prudently.
Fransmart, provides you with all the information you need to start a successful franchise business. Whether you want to purchase an award-winning dine and drink franchise or franchise in a different industry, we have the expertise to make your new venture a success. Fransmart assists in finding you the golden opportunity in the franchise business, with a franchise having low investment cost, and a company that has the best state-of-the-art technology.
While franchises are a great business opportunity, before you invest thousands of dollars in any franchise, you must fully understand what a franchise opportunity is, how to buy a franchise, and what you should know about running a franchise.
What Is a Franchise?
A Franchise is a unit of a company that franchisees own to sell the brand’s products under its brand name using its business processes.
Franchising is a progressively popular business method to create and expand wealth. A franchise business model involves a legal and contractual relationship between a franchisor and a franchisee. A franchisor is an entity that grows its business by giving rights to individuals to sell its offerings under its brand indicia. A franchisee is an individual who buys a brand’s rights to set up its business unit in exchange for an agreed fee and royalty.
According to the data from the Small Business Association (SBA), almost 50% of small businesses fail within the first five years. A startup has many risks and challenges that small entities can find difficult. Owning a Franchise provides an individual with that entrepreneurial opportunity that has the backing of a large organization and professional know-how to succeed.
For a company that wants to expand, a franchise model provides faster growth in multiple territories.
How to Buy a Franchise in the USA:
Buying a franchise in the U.S. takes time, hard work and commitment, but all that will be worth it when you have a successful business running at the end of the process.
As you think of buying a franchise, the first step of the 10 step process is to research the many franchise opportunities available in the market. The franchise you choose should match your interest, budget, and qualifications. Some of the things you need to consider before opting for any franchise opportunity:
- Investment required by the company
- The ongoing cost of running the unit
- Training and support provided by the company
- Competition
A franchise brand will often host a discovery day so a prospective franchisee can evaluate the brand and the franchisor can address essential questions.
Once you have a franchise brand you’d like to invest in, the Small Business Association can be a resource for funding your business. As soon as you secure the funds for the company, you are ready to sign the contract and start the business.
Before signing the agreement, we recommend you read this to help you have a grand opening of your Owned franchise store.
Can You Buy an Existing Franchise in the U.S.?
Yes, buying an existing franchise can set you up quicker in your business than opening a new franchise. Additionally, it can help you avoid some of the growing pains a new location could experience. However, it’s important to make sure you understand the reason behind the sale of a franchise location. You should find out:
- The valuation of the business
- The success of the business
- Motivation for selling the unit
*Also, read why you should or shouldn’t buy a franchise.
Where Can I Find Franchise Opportunities in the USA?
Franchise opportunity is an excellent way to create wealth. There are thousands of franchise opportunities across various industries, and potential franchise buyers can find a lot of information about franchises on the Internet. However, working with an experienced franchise consultant can help you hone in on brands and avoid many pitfalls franchisees experience when trying to go it alone.
Fransmart is the global leader in emerging franchise development. Fransmart has sold over 5,000 franchises worldwide and launched franchising for Five Guys, QDOBA, The Halal Guys, Vapiano, and many more. Fransmart has also invested directly in brands including Sweetgreen, Cava, and by Chloe. After building a reputation for launching restaurant franchising for emerging brands, the company is now expanding into non-restaurant franchise brands, including high-performing service and retail concepts.
Fransmart’s formula for success is finding the right emerging franchise opportunities at the right time. The company has also researched more than 100 franchises and pointed out the main reason why you should not buy particular franchises.
**The next most important thing for you to know is: How much money does a franchise owner make?
Things You Should Know About Franchise Opportunities in the USA :
There are a few factors you should consider before you invest in the franchise world::
A. Market Requirements of the Brand:
One of the first things to consider before buying into a business is understanding its market demand and growth potential. Invest in a company that has been successful in the past and present, and has a thriving future ahead of it.
Food franchises, for example, are a better investment in the post covid market than most other businesses.
B. Track the Franchisor:
Having multiple franchises does not guarantee the success of the business. You have to track the brand’s history, dig into the details and speak to its current franchisees to understand what being a franchisee is like.
Remember, the existing franchise partners will tell you the best about the brand. The top franchise opportunity may not be the one with the most visibility in the market.
C. Budget:
A franchise business could require investments in any range. Besides the franchise fee and initial expenses, you will incur additional costs when opening a new location. These should match your budget.
D. Competitors:
Every business will have competitors. Make sure you understand the competition in the market, and the value your brand creates to capture its market share.
A franchisee may have competition from the same brand from other franchisees in its territory, lowering its business earning potential. The exclusivity of territory in a franchise agreement will govern this potential problem.
E. Access your Strengths:
Make sure you do what you enjoy doing or are good at. If the franchise industry matches your work experience, it is a massive advantage as you know its challenges and pitfalls and how it is to work in it all day.
Do not join a restaurant industry just because you enjoy food, do it if you have experience serving and managing people and operations.
F. Use professional help:
You will need the help of a good franchise consultant to guide you in your franchise journey. You can trust Fransmart to guide you from franchise opportunity to opening. We will negotiate better franchise opportunities for you and provide you with other professional help to start a franchise.
Top 10 Franchises below $10K:
Opening a franchise need not always require hefty investments. There are many franchise investments for less than 10K dollars investment.
The top franchises under 10K are:
Social Owl:
Social Owl is a franchise opportunity that sells social media software solutions to businesses. They help small businesses by providing marketing packages, shopping carts, sweepstakes, reputation monitoring, and analytics assistance.
The financials of Social Owl are:
- Initial Franchise Fee: No standard franchise fee; $149 for the first month, reseller fee starting at $1.25/month per business client
- Total Investment: $149 to $249 per month
- Average ROI: $300/month per client (as per Social Owl)
Coffee News:
Coffee News is another franchise brand that can operate from home. It provides its franchise opportunities to publish weekly magazines that people pick up in coffee shops or restaurants.
- Initial Franchise Fee: $6,000
- Total Investment: $9,250 to $11,750
- Royalty Fee: $80/week
Eazi-Apps:
Eazi-Apps offers a platform to its franchisees to make sophisticated apps for their clients. It works on a drag and drops feature to add content, select components, and brand appearance on their app.
- Initial Franchise Fee: $9,995
- Per-app fee: $13.00/month per app, minimum $260/month
- Average ROI: $315/year per app (as per Eazi-App’s website)
Momleta ( Baby Boot Camp):
Momleta includes the famous fitness chain Baby Boot Camp. It offers franchise opportunities to fitness enthusiasts who want to help moms by providing wellness and fitness guidance.
- Initial Franchise Fee: $4,000 to $7,000
- Total Investment: $4,570 to $10,800
- Working Capital: $400 to $2,000
Fit4Mom:
Fit4Mom was the fastest-growing franchise of 2019. It offers pre and post-natal health and other fitness programs for different stages of motherhood. It is one of the best franchise opportunities to own for the people who want to help mothers of all ages.
- Initial Franchise Fee: $6,495 to $12,395
- Total Investment: $6,905 to $26,385
- Working Capital: $0 to $3,240
- Royalty Fee: 4.0% + $399 maximum monthly fee
Jan-Pro Cleaning and Disinfecting:
The franchise provides commercial cleaning services to businesses.
- Initial Franchise Fee: $1,250 to $50,000; starter kits start from $900
- Total Investment: $4,170 to $56,020
- Working Capital: $1,000
- Royalty Fee: 10.0%, 1% Ad Royalty Fee
Buildingstars:
The Buildingstars franchise focuses on commercial cleaning services for office buildings. It is ranked among the top 200 franchises in the Franchise Business Review.
- Initial Franchise Fee: $795 to $1,995
- Total Investment: $2,245 to $8,295
- Average ROI: $1,000 to $5,000 ( as per Buildingstars website)
Ameriprise Financials:
Ameriprise Financial franchise offers its customers financial planning, brokerage services, insurance products, and other financial consultation.
- Initial Franchise Fee: $1,500
- Total Investment: $10,432 to $114,480
- Working Capital: $2,299 to $21,290
- Association Fees: $290 per month
- Average ROI: Performance-based payout rates range from 72% to 91% of GDC (as per the Ameriprise website)
Winzer:
Winzer franchisees sell fasteners, tools, and other supplies to customers in the automotive, industrial, and fleet markets.
- Initial Franchise Fee: $3,500
- Total Investment: $5,950 to $16,153
- Working Capital: $0 to $2,500
- Royalty Fee: 14.0%
Stay Safe Vending:
This new franchise catches a lot of attention selling PPEs like masks, gloves, and hand sanitisers through vending machines.
- Initial Franchise Fee: None
- Total Investment: $10,000+
- Working Capital: $10,000+
- Top 10 Franchises below $20K :
The best Franchises in the market under $20K are:
2B Organized:
The franchise provides professional and personal assistance services for commercial and residential clients. 2B Organized is a franchise concept in the home and building service industry.
- Initial Franchise Fee: $9,150-$14,250
- Total Investment: $9K-$14K
- Marketing fee: 100$
AmSpirit Business Connections:
The franchise owns and operates AmSpirit Business Connections to organize and provide administrative support services to entrepreneurs and professionals who meet periodically to exchange business referrals.
- Initial Franchise Fee: $13,900-$19,900
- Total Investment: $14K-$20K
- Marketing fee: 23%
- Royalty fee: 7%
Cell Phone Repair:
The franchise offers cell phone repair businesses within a specified business territory.
- Initial franchise Fee: None
- Total Investment: $13K-$25K
- Marketing fee: 2%
- Royalty fee: 6%
Cruiseone:
CruiseOne offers franchises for operating businesses that sell cruises, vacation packages, and other travel-related products and services.
- Initial franchise Fee: $1,795-$21,000
- Total Investment: $2K-$21K
- Marketing fee: 3%
- Royalty fee: 2%-3%
Color Me Mine:
Color Me Mine is a franchise concept in the retail products and services industry.
- Initial Franchise Fee: $11,150-$12,250
- Total Investment: $11,150-$12,250
- Marketing fee: 1%
- Royalty fee: 5%
Compuchild:
Compuchild franchises teach children in preschools and daycare centres how to operate and maintain computers. It’s a very low cost but high-profit franchise opportunity for the owner.
- Initial Franchise Fee: $9,900-$14,900
- Total Investment: $15K-$31K
- Marketing fee: N.A.
- Royalty fee: Varies
Here We Grow Again:
Here We Grow Again is a franchise selling children’s clothing, toys, and other products on consignment.
- Initial franchise Fee:$6,500
- Total Investment: $12K-$25K
- Marketing fee: 1.30%
- Royalty fee: 3%
Gokhale Method Institute:
The franchises offer classes and products that help restore the body’s primary architecture and movement patterns trademarked under the “Gokhale Method.”
- Initial Franchise Fee: $4,000
- Total Investment: $8K-$24K
- Marketing fee: N.A.
- Royalty fee: Varies
Lakeplace.com:
Lakeplace franchises are real estate brokers featuring on lakeplace.com.
- Initial Franchise Fee: $10,000
- Total Investment: $16K-$33K
- Marketing fee: N.A.
- Royalty fee: 10%
Mighty Kicks:
Mighty Kicks offers Mobile Soccer Program to preschools, elementary schools, daycares, and child learning centres.
- Initial Franchise Fee: $9,700
- Total Investment: $10K-$16K
- Marketing fee: N.A.
- Royalty fee: NA
Top 10 Franchises Opportunities below $30K:
The most profitable franchise opportunities under 30K are:
Healthier 4U Vending:
Healthier 4U Vending launched the premier healthy vending franchise.
- Total Investment: $ 30K
ClaimTek Systems:
ClaimTek is the most trusted medical and dental billing franchise opportunity in the industry.
- Initial franchise Fee: $24,995 – $49,995
American Business Systems:
With more than 20 years of experience, ABS is the nation’s largest Certified Medical Revenue franchiser.
- Total Investment: $29,990
- Royalties: None
Startup HomeCare:
Startup Homecare franchise is a non-medical senior care agency.
- Initial Franchise Fee: $12,500
- Total Investment: $25,000
- Royalties: None
Bizfundingfinder:
Bizfundingfinder helps businesses get the cash they need. They are the industry leader in the fast-growing small business working capital market.
- Total Investment: $20,000
Inlingua:
Inlingua is one of the world’s leading language training organizations with more than 250 language centres.
- Total Investment: $21,500
Curry Up:
Curry Up is the largest and fastest-growing Indian fast-food chain in America.
- Initial franchise Fee: up to $ 35,000
Club Z!:
Club Z! Franchise is an in-home tutoring service. It is the world’s largest one-on-one tutoring facility.
- Initial franchise Fee: $19,750 with an additional $10,000 for working capital
- Total Investment: $30,000 – $55,000
360clean:
A 360clean franchise is a commercial cleaning franchise specializing in health-focused office cleaning. It is ranked among the top low-cost franchise businesses.
- Initial Franchise Fee: $ 10,000
- Total Investment: $15,000 -$24,000
Butter Chicken:
Butter chicken is the fastest growing Indian chain in North America in the QSR industry.
- Initial franchise Fee: up to $ 35,000
Things to Consider Before Buying a Franchise:
The benefits of starting a franchise are very apparent. However, the franchise business is not foolproof. Before you invest in a franchise, it’s important to understand these concepts:
- Restricted Control: Franchises work on a set procedure, and not much is allowed to be changed, which can become the major disadvantage of a franchise business for some individuals. The creativity of an entrepreneur cannot be fully utilized in a franchise business.
- Franchise costs: The franchisees are required to pay a set amount of money to the franchisor. Some top-rated franchises are expensive and require large initial investments and an additional yearly charge.
- Revenue Sharing: For most franchises, a revenue share model is adopted in which a particular part of the sale amount is paid to the parent company as royalty. Though the royalty percentage is different in different companies, it does reduce the revenue of the franchisee.
- Risk Involved: While the franchise business is considerably safer than a startup, it also has its share of risks involved. Not all franchises are successful or profit-yielding.
To understand and analyze more about the advantages and disadvantages of a franchise business.Â
How The Entire Franchise Process Works:
Franchising on the onset looks simple enough, but many aspiring entrepreneurs don’t understand the depth of franchise business work that needs to be meticulously done to be a profitable investment with good ROI.
Researching franchises, understanding a brand’s requirements, creating the proper documentation, legal assistance, financial assistance, and all the rest of the work that goes into making a franchise is of utmost importance in determining the future of your investments.
Contact us, and we will help you in your franchise ownership endeavours.
Frequently Asked Questions
Q. What should you consider before buying a franchise?
Even the best franchise opportunities can go wrong if you have not considered the following factors before buying a franchise:
- The type of experience required in the franchise you are considering.
- What is the cost of the franchise?
- The personal commitment and hours required to run the business.
- The track record of the franchisor and its top-level employees’ experience and background.
- How other franchisees in the system are performing.
- How much it will cost you for the continuing right to operate the franchise.
- You have to buy the products or services from the franchisor and how that is channelled.
- The terms under which the franchise can be terminated or renewed, and how many franchisees have left the system in the past.
- The financial shape of the franchisor and its system.
Q. What are the most profitable franchises to own?
The most profitable franchises to own are in the fast serving or QSR industry. More than 80% of restaurants are franchises, and 7 out of the top 10 franchises are food-related.
Q. Is buying a franchise a good option?
Franchising has many benefits. It provides opportunities for individuals to have their own business with the backing of a large organization.
Whether or not you should buy a franchise depends on many personal factors.