Owning a franchise brings in a ton of benefits. You just run your operations and profit from the franchise owner’s well-recognized brand. On the other hand, opening a brand new business brings the risk of failure. You may lose all of your investment or face other severe consequences. So it is best to buy a franchise as they rarely fail, eliminating the risk of potential failure. This article will discuss the benefits of buying a franchise and the 10 world’s best franchises to buy in 2021.
A franchise gives you access to best practices
Some franchise opportunities are easier to start than others. If your time, energy and resources allow, consider starting a franchise in a booming industry. If you need to have more time or resources to develop a company, look for an established brand already thriving. Most importantly, it’s important to consider the following for finding the right franchise opportunity:
- Franchise opportunities that are in the fast-growth sector:
Franchise opportunities that are growing and are in the fast-growth sector of a popular franchise tend to be relatively safe and lucrative. This allows you to start a business that grows with you.
- Competition:
Always look for low competition franchises based on your selected location. There may be many fast-food restaurants already at your location, so opening another one isn’t clever. The people might be looking for a hair salon, go with what the public demands and you will achieve big.
There are more but let’s just keep these important ones in mind for now.
Franchises are affordable
It’s no secret that starting a business is expensive. And many new ventures have failed because their costs were just too high. You can easily get started with the right franchise investment. An investment in a small business can get you started for less than $25,000. But even the best franchises can be a big help when it comes to saving a down payment on a home or other major purchase. Franchising can be beneficial to your health and wellbeing You can expect to spend about 30 hours per week working at a franchise. That means you can spend quality time with your family while putting your time to good use. You also don’t have to worry about hiring and training someone full-time. You can save on that expense and still run the day-to-day operations.
A franchise comes with built-in marketing strategies
But if you are thinking about opening your franchise, there are plenty of options to consider. There are currently over 2000 franchise opportunities available in some of the world’s best franchises. A few to highlight include Auto, spa, Gymnastics, Magician, Tea bar, Tomato bar, Museums, Crab Shack, Domino’s Pizza, Car wash, Cakeshop and Law firm etc. You probably don’t know who has the best car wash or pizza joint, but some franchises are growing like weeds in any particular area. Often, they are owned by large corporations or franchises with extensive expertise in the industry. Franchises are known for their success, so it can be intimidating to consider opening a business with the uncertainty that comes with opening a business without years of business experience.
Franchises are low risk
Investing in a franchise comes with major risks, but with that comes major rewards. The franchiser provides everything a franchisee needs to have a successful business. That includes complete operations, intellectual capital and cash to start and run a successful franchise. There is a myriad of franchise opportunities to choose from, so you can find one that aligns with your desire and skill set. Customers are loyal Customers are a key component to any successful business, but few franchises require the customer to purchase a product, make a service call or subscribe to a newsletter to maintain their interest. The most successful franchises utilize the reputation, credibility and loyalty of their brand to build trust.
Franchisees don’t need a lot of startup capital
While opening a brick-and-mortar store can require anywhere from $1,500 to $20,000, those figures don’t account for startup costs. A good franchise can be had for a fraction of what you’d have to pay to open a traditional retail business. An established franchise can have more than $200,000 in start-up costs. There are more than 11 million franchises worldwide, so you have a good chance of finding a home-run investment. And the US Department of Commerce estimates that up to 37 per cent of the US workforce could be affected by the franchise industry. That makes franchise ownership one of the smartest ways to put that knowledge to use. Your investment will pay you back Often, franchises promise to increase profits over time. In the case of franchising, this is especially true.
Franchises have short and clear franchise agreements
When you buy a franchise, you typically purchase a written agreement that describes the details of the business, the franchisee’s obligations, and fees and payments. Business contracts are a legal requirement and are the most commonly used agreements among franchisers. A franchise agreement can be complex, but the franchiser usually has an attorney drafting a contract for the franchisee. You may still need additional legal counsel to read a franchisor’s legal documents, but it’s much less likely you’ll need to consult a lawyer to review a franchise agreement. Franchises offer profit potential Not every franchise opportunity will be a home run, but many franchises can generate significant income for the franchiser.
The franchisor is responsible for buying the building or leasing space for your store
Other Income Opportunities Franchisees can also generate additional revenue through the various franchiser’s systems. This means you can develop an additional source of income that isn’t covered by the income generated from the business itself. This can help offset the additional expenses associated with opening a business. Discounted Property Deals Real estate has always been a good business investment. You may not realize that franchisers are often willing to help franchisers with their real estate costs. By working together, franchiser’s can save millions of dollars in new development and construction costs. Real estate developers also don’t have to worry about the hundreds of thousands of dollars it takes to build a store themselves.
The franchiser provides training and support
It’s essential to have franchisees trained, especially in the critical areas of finance, marketing, operations, and business basics. No one wants a franchise without a solid foundation of knowledge and an understanding of how to run a franchise effectively. Franchisors often offer their courses, workshops, and resources to ensure their franchisees are in the best position possible to succeed. You receive a high level of training One of the greatest advantages of a franchise is the level of training you receive as a franchisee. Usually, franchisees are grouped by specific expertise and then trained under a designated trainer. This enables the franchisee to pick up new skills on the go. You can become an expert in a specific area quickly.
Assessing A Franchise Possibility
A person who wants to open a franchise should keep in mind two basic things.
- The limit of budget you can invest.
- The franchisers will assist you for the duration of the evaluation phase.
Here are some criteria that you should recollect.
Franchise Set-Up and Costs
Each franchiser requires a premature price. This may range from loads to hundreds of dollars. Preferably, the franchise charge could be paid out-of-pocket (even though a few franchisers offer financing options). Either manner, we advocate having at least $10,000 to make investments up the front.
Gainfullness
whilst you’re comparing a commercial enterprise investment, it’s critical to recognize if the opportunity is worth the cash. Determining the profitability of a franchise isn’t specific technological know-how. However, there are a few factors to keep in mind:
Unit boom:
See what number of units (franchise locations) have opened in recent years.
New franchisee success track:
look at the percentage of the latest franchises that can be nevertheless running after a year.
Franchiser’s economic statements:
analyze the franchise disclosure report and observe average sales according to the unit.
Assist systems for Franchisees
When selecting a franchiser, test the support structures they’ve put in the location to make sure their new area is a success. 7Eleven, as an instance, flies usual franchisees to their assist center in Dallas for training. They also have a resource center with seminars and occasions. Not all franchisers, particularly small ones, can have full-size sources like 7Eleven. However, make sure they offer simple education.
Territories
Most franchisers are trying to grow in a particular geographical area. It wouldn’t be profitable, for example, to open a new area just miles from another, or in an area where there’s no call for. Be sure to test whether your goal franchiser desires to open a location in your region. If not, determine whether you’re willing to relocate.
Popularity Of The Brand
These traits will determine whether it will likely be profitable to operate a franchise for a potential brand:
- How popular is the emblem which you’ll be franchising?
- If it’s a smaller brand, has it seen a widespread increase within the past year?
Now and then, going for a huge and recognizable brand isn’t ideal. Since the upfront expenses are substantial. A smaller franchiser may be a less complicated access factor, so long as the agency has been growing in revenue.
Now that you realize how to examine an opportunity, allows testing our listing of the fine franchise opportunities to pick out from. For the duration of the pandemic, these franchises have either visible boom or little or no stagnation, making them the quality franchises to own in 2021.
World’s Best Franchises To Buy In 2021
The process of getting a franchise has a few steps to follow, and they’re all not entirely necessary. You can start, for example, a fast-food franchise in less than a month by simply getting help from a franchise sales representative. However, before signing a franchise agreement, you need to know what it’s really like to run a franchise. To help you understand the process of becoming a franchisee, I’ve listed the top 10 world’s best franchises to buy quickly and easily. Without having to work in the industry.
McDonald’s
McDonald’s has over 39,000 restaurants in over 100 countries around the globe, 93% of which are franchise operations. This makes McDonald’s the largest fast-food franchise in the world. You can buy the franchise with a fee of 45,000$; financing through third-party lenders. The total necessary investment ranges from $1,008,000 to $2,214,080 to start operating a McDonald’s franchise. Buying an existing franchise may cost more than 1 million dollars ($1 Million). The costs are high but what the world’s best franchises give back, is awesome.
Subway
As of 2019, Subway has a store count of over 42,000 which makes it the largest in these terms. A big relief here is that Subway has the lowest franchise cost. Initially, you will have to identify a store location and pay the initial fee. The initial fee is used for construction and real estate. The estimated franchise cost for Subway is around $150,050 to $342,400, which is quite low compared to its rivals.
Great Clips
Great Clips is a hair salon franchise and has been around for more than 30 years. It has invested a good amount in business, providing the latest technology to its franchise owners. Great Clips is known for its service which makes it a perfect franchise to buy. The franchise fee is $20,000 and the initial investment is between $130,000 to $250,000.
Burger King
With over 11,000 restaurants in 69 different countries, Burger King delivers the best taste and quality. 90% of their restaurants are owned by independent franchisees, which shows how awesome they are to work with. Also, they keep bringing in new products, each tastier than the previous. The franchise fee is $50,000 and the initial investment reaches $300,000, which is not much compared to other brands in the market. The marketplace is competitive, so burger king offers an initial 70 days of training.
Dunkin’ Donuts
In the US, coffee and doughnuts are the most famous breakfast pair. Dunkin’ Donuts(Now “Dunkin’ ”), is the leading doughnuts and coffee franchise and has proved itself with almost 12,000 franchises around the world. If you are looking for a customer-friendly and top-rated franchise to buy, Dunkin’ is your choice. The franchise fee varies by location and goes up to $90,000 maximum. The total investment ranges from $100,000 to $1.7 million. Dunkin’ provides a 3-day business training in Boston, once your application is approved.
KFC
KFC is no doubt the most popular chicken restaurants chain and among the world’s best franchises. Dating back to 1952, KFC still serves its customers the best quality and delicious chicken recipes. They are famous for Herland Sander’s signature Fried Chicken which he mastered. With 17,000 restaurants in 115 different countries, you won’t regret buying a KFC franchise. The franchise fee is $45,000 and the total investment can go up to $1,400,000.
7-Eleven
7-Eleven is a retail franchise and lands in the retail store category. It is rated the best franchise to own in the USA. 7-Eleven is easy to start with, you can start running your franchise within 6 months. Franchise fee varies from place to place between $10,000 to $1,000,000 and the initial investment is up to $1,150,000.
Dominos Pizza
Dominos Pizza is no doubt the most famous pizza delivery business. It has 10,000 restaurants running around the globe. Buying a Dominos Pizza franchise means attracting a huge fan base. The initial franchise fee is $25,000 and the initial investment may go up to $460,450.
Lidl
Lidl is a german international chain that operates over 12,000 stores as a discount retailer. It offers a wide range of fresh foods and offers each day. Lidl is currently only franchising in the US and not the UK.
The UPS Store
In the business service industry, The UPS Store is the top-ranked industry. In the US, you will see The UPS Store almost every 10 miles. It is of great value among franchise brands and requires a pretty high investment Franchise fee is almost $29,000 and the initial investment is up to $475,000.
Conclusion
These were the world’s best franchises to buy in 2021. As you can see, owning a franchise can help you grow your income and create a source of passive income. You’re not going to be a millionaire overnight, but several franchises pay dividends as they make their way through the franchising pipeline. You’ll never be tied to one particular company, which means you can scale the business to meet your future growth goals. By owning a franchise, you can change careers, work flexible hours, and stay within your means.
