Each and every year is a different year for franchise businesses around the world and within the United States. Entrepreneur.com puts out a list of the top franchises for sale each year. They also list the full top 500 franchises and estimated start up costs. If you are an entrepreneur looking to expand or start into a franchise, this is the list to check out. The top 10 for each year cover many different industries and are usually the best and more active franchises available.
This list for 2009 consists of the following top 10 franchises to buy. As listed on Entrepreneur, here they are from 10 to 1.
Number 10. Papa John's International
The first Papa John's Pizza started in 1985 and started franchising early. By 1986 they were already franchising this, now well known, pizza restaurant. This franchise now has over 3000 franchises worldwide and is continuing to grow. The franchise fee is $25,000 with 5% royalties. You can expect the investment to range from $135,000 to under $500,000 depending on the location, size and market.
Number 9. Circle K
This convenience store franchise is the highest rated convenience store franchises on the top 500 list. For good reason, it has a well established background and foundation. It started in 1951 in El Paso, Texas. Franchising did not start until 1995 and has grown quickly since then. The United States franchises are few compared to the over 3000 foreign franchises. The franchise fee is only $15,000 with royalties based on annual sales numbers. You can expect the investment to range from $160,000 to over $1,000,000. There are franchise opportunities globally for this successful convenience store business.
Number 8. The UPS Store / Mail Boxes Etc.
Mail Boxes Etc. began in 1980 and was designated as an alternative to the U.S. Postal Service. UPS bought out Mail Boxes Etc in 2001 and began re-branding the existing franchises as UPS Stores in 2003. The UPS stores include a variety of postal services, materials, printing and computer services. Your Franchise investment will have a franchise fee of $30,000 and 5% royalties. The start up costs will range from $155,000 to almost $300,000.
Number 7. Pizza Hut
Pizza Hut started with a mere $600 back in 1957 in a rented building with used equipment. Within 1 year they had already sold their first franchise and have not looked back since. Pizza Hut is now owned by Yum! Brands along with Taco Bell, Long John Silver, KFC and A&W restaurants. All successful restaurant franchises. There are just under 10,00o Pizza Hut franchises worldwide and range from full restaurants to kiosk and express locations such as in Movie Theaters. The franchise fee is $25,000 with 6% royalties. You can expect the investment to range from $315,000 to nearly $3,000,000. Pizza Hut Franchise opportunities are limited in the United States at this time, but are available in other foreign countries.
Number 6. Ace Hardware Corp.
This hardware store began some time ago in 1924 as a cooperative effort with it's founders to maximize profits by minimizing their wholesale costs by buying in bulk. This Hardware store did not start franchising until 1976 and has had steady growth throughout the world to nearly 5,000 stores to date. If you have been to an Ace Hardware Store, you will know that is based on true value and small town feel. They also offer their own line of products exclusive to their stores. The franchise charges an application fee of $5,000 as the franchise fee. You can expect the investment to range from $400,000 to over $1,000,000. Business experience as well as a personal net worth of at least $400,000 is required.
Number 5. InterContinental Hotels Group
The company franchises seven hotel brands around the world that include InterContinental Hotels and Resorts, Candlewood Suites, Crowne Plaza Hotels and Resorts, Holiday Inn, Holiday Inn Express, Hotel Indigo and and Staybridge Suites. These hotel brands can be recognized around the world as some of the most prestigious hotels in many of the large cities and capitals worldwide. With nearly 4,000 franchises globally, with steadily increasing numbers every year, this Franchise has an excellent track record and staying power. The franchise royalties are 5% and the franchise fees vary on brand within the group of hotels and resorts. Expect your investment to be substantial compared to a restaurant franchise and you must have Industry and business experience here.
Number 4. Sonic Drive-In Restaurants
Will you believe that this well known restaurant started as a root-beer stand over 50 years ago. The sonic name was introduced along with the founders partner and began franchising in 1959. This franchise business is well known throughout the Unite States and is seeking franchisors in Canadian and other overseas countries now. The business has seen steady growth for the last 5 years and shows no sign of slow down. The franchise fee is $45,000 and your initial investment will be over $1,000,000 with an equivalent in net worth and liquid cash. Royalty fees vary between %1 and %5.
Number 3. Liberty Tax Service
You can't get away from the tax man, and every year, more and more tax payers hire an expert to help them with their personal taxes. The Tax system tends to get more and more complicated each year and having someone that knows the system get you the most back on your return far out-weights the cost. This is why this franchise is in the top 3. It has had huge growth over the last 5 years and now has nearly 3,000 franchise locations within North America since 1973, when it started franchising. The franchise fee is $40,000 , but your initial investment is under $70,000. The franchise royalty fees do vary on the market but is a very low cost franchise to get into. Training and support is provided and makes this franchise a highly profitable and sought after business.
Number 2. McDonald's
Most people see McDonald's as the king of franchises, but it only got to number 2 this year. This franchise is the largest fast-food restaurant chain in the world and have been franchising since it was founded back in 1955. There are over 25,000 franchises worldwide and growing. McDonald's has been the founder of the franchising businesses for many years, innovating and inspiring for many restaurant and fast-food restaurant owners. The franchise fee is $45,000 with a %12.5 royalty fee. This may seem high, but McDonald's has the most recognizable symbols in the world - the golden arches. Your initial investment can range between $1,000,000 and $2,000,000. Franchise training and support are superb and almost guarantee success.
Number 1. Subway
This health conscious fast-food alternative restaurant started back in 1965 with $1,000 and a great idea. It has since grown into a worldwide franchise business with over 30,000 locations. In recent years, the focus on healthier eating has really boosted the subway franchise and made it number 1 for several years in a row. Their innovative and very successful marketing campaigns have given the Subway brand as fresh and healthy alternative to fast-food restaurants. The minimal franchise fee of only $15,000 and reasonable start-up costs of under $250,000 bring this franchise to the top of the most wanted list. A royalty of %8 is reasonable for the success of this company.
This list does change every year, but you tend to see a pattern and common faces. Any savvy entrepreneur can make any one of these franchise opportunities a successful business with minimal effort.
Monday, November 2, 2009
Subscribe to:
Post Comments (Atom)

No comments:
Post a Comment