The Best Franchise Opportunities and their Costs
If you discover that your favorite coffee or food joint is a famous brand with multiple locations within your city, there are chances that the joint is a franchise.
The benefits of having a franchise are countless; from avoiding the risk related to opening new businesses to enjoying profit from an already recognizable brand, most franchise owners have almost nothing to lose. If you consider having a franchise, here are ways to estimate franchise opportunities, but first, you should know what a franchise is.
What Is A Franchise?
Franchising involves a business system where an independent entrepreneur buys the license to operate a business in another location using a more recognizable business name, product, and logo. The more prominent, recognizable brand that sells the right is called the franchisor, and the franchisee is the entrepreneur who buys the business operating license and runs the business.
How to Estimate a Franchise Opportunity
There is no exact or general estimation system of measurement when it comes to franchises. Potential franchise entrepreneurs must consider their budgets and the franchise’s support system when estimating a franchise opportunity. Here are a few criteria to consider when evaluating franchise opportunities:
Franchise Set Up Costs
Generally, before starting a franchise, every franchisee is required to make an upfront payment, which can vary between hundreds to thousands of dollars. Some franchises may offer various financing options, while others will expect a one-time fee. However, franchises may need substantial capital, and we recommend having a minimum of 10,000 dollars for a start.
Every business aims to make profits. Hence, it’s vital for you to know the profitability of the franchise opportunity before venturing into it. Here are a few ways to consider the profitability of the franchise:
- By analyzing the franchise disclosure document.
- By examining the number of franchises that became successful in the business.
- By evaluating the number of franchise locations opened in a few years.
Support System for Franchise
It’s vital to consider the franchise’s support system that ensures the business thrives. Franchises that provide extensive resources and training offer greater opportunities for success.
Time commitment usually varies with each franchise. Franchisees are required to operate for more than 15 years, while some may need less. Consider if you want to stick around for more extended periods or shorter periods. If you intend to operate the business for less than ten years, you should consider choosing a brand that would be easier to sell.
Big brands usually require higher upfront fees while small brands are easier to enter; however, the brand’s size is not the most crucial aspect. Your priority should focus on the significant growth of the brand over the years.
Opening a franchise just a few miles from another may not be profitable. Check that your target franchisor is willing to open a location in your territory and ensure demand for the business.
7 Best Low-Cost Franchises – What to Expect
Franchises may have a high initial investment; however, if you want a low-cost franchise opportunity, check our list of the best low-cost franchises which have experienced growth over the years alongside their upfront fee and initial investment.
McDonald’s provides fast food franchise opportunities with a franchise fee of $45,000 and an initial investment of between $1,008,000 and $2,214,080.
Cruise Planners provides a travel planning franchise opportunity with a franchise fee of $9,995 and an initial investment of between $2,095 and $22,897. They provide extensive training, and you don’t need previous travel planning experience to start this franchise.
JAN-PRO provides a cleaning and maintenance franchise opportunity with a franchise fee of $2,520-$44,000 and an initial investment of between $3,985 and $51,605.
Jazzercise provides a group fitness franchise opportunity. The upfront franchise fee is $1,250, while the initial investment ranges from $2599-$38,000.
American Family Care
If you’re looking to start a medical business, American Family Care provides urgent care franchise opportunities and walk-in clinics with an initial franchise fee of $60,000. This fee funds pre-opening support of your medical operation, such as your on-site assistance, headquarters-based training, and more. Also, the total initial investment is between $1,008,000 and $1,441,500.
If you want to start a dental clinic business, you can buy a franchise rather than starting from scratch. You can provide a host of dental services, including clear teeth aligners brands like Byte teeth aligners, or snap-on veneers brands, two great solutions for those seeking brighter and straighter teeth. Here are a host of dental franchise opportunities:
Based in the U.S, you can own the business with a franchise fee of $29,996. Note that the franchise has a 5-year duration.
This dental business is one of the most profitable dental franchise opportunities. However, you’ll need to mail them to get the franchise fee and have an initial investment of not less than $400,000.
Dental Fix RX LLC
With a franchise fee of between $25,000 and $25,000 and an initial investment of $62,600 to $153,509, you can be a part of the Dental Fix RX LLC franchise opportunity.
Franchises provide a host of benefits to entrepreneurs as they leverage the recognition of another brand to make profits. If you intend to open one, you should get started already!