Owning a franchise has its advantages and disadvantages. The advantage favored by business owners when getting a franchise is the established name of the business. It is fast for a franchise to get noticed since it is already stable and has been operational for years.
There is a completed business idea that has been tried and tested, and the owner who will get a franchise will no longer need to brainstorm for the aspects of the business cause it will be provided by the franchisor.
The franchisee will also get the support they need from the start of the business and during the operation. They will also not need to have solid experience with the franchise they will purchase since the franchisors often provide the training.
Although some business owners who buy a franchise are interested in the business, they will go for and may have some previous experience or have studied about the franchise they are to purchase.
Franchisers also find it easy to find financing when the franchise they will acquire is well known and has been in operation for a couple of years, and most have a worldwide presence.
However, as with any other business, there is also a downside to owning a franchise. One is having to purchase the franchise for such a huge amount, as opposed to starting your brand.
You cannot change the product you are selling, or if you want to enhance it or improve it, you may not have the freedom to do so, particularly if it is a rule when owning a franchise.
Below, let us discuss some of the well-known and fastest-growing franchises and find out how each started its journey to success.
They established the company in 1971, and two real estate agents, Marsh Fisher and Art Bartlett, founded the company. It was only in 1972 when they started accepting franchises. It was then when the number of franchise brokers commenced. Now, over 14,000 franchise broker offices are operational in 86 countries. Century 21 Real Estate has its main office in Madison, New Jersey.
The initial franchise fee for this company can reach up to $25K, with the initial investment ranging from $25K up to almost half a million dollars. There is also a net worth requirement, cash requirement, royalty fee, and ad royalty fee that needs consideration.
McDonald’s has a presence in over 100 countries and has been serving burgers, fries, apple pies, and the usual popular meal in over 38K locations. This restaurant has 93% of franchise owners and continues to accept individuals or business entities who would like to venture into this lucrative business opportunity.
The company prefers franchisees who have significant business know-how and have previous management experience. Any individual showing an interest in a McDonald’s franchise must be sure to have a good financial resource and knowledge in customer service.
The initial franchise fee is between $45K – $47K, while the initial investment you will need can reach from $1,300,000 to $2,500 000. Cash requirement is half a million, and then royalty fee, ad royalty fee, among others, is discussed during the proceedings or negotiation.
The convenience store chain started in 1951 and began the franchising journey in 1999. It is now owned by the parent company, Alimentation Couche-Tard.
Circle K is found in 10 countries and over 20 states from its humble beginning of a mere food store in El Paso, Texas.
The company accepts multi-site and single-site franchise agreements. There are qualifiers that any interested franchisee needs to have, such as a net worth of half a million dollars and liquid assets of a hundred thousand dollars. Anyone who shows interest or has discussed their interest in getting a franchise must also have an enterprising character.
Currently, the company is looking forward to having franchisees from Asia, Australia, New Zealand, Africa, Central America, Canada, Middle East, and more.
Taco Bell started in California, USA. The person responsible for putting up and starting the business is an ex-Marine Corps, Glen Bell. He started with a simple hot dog stand and then incorporated tacos. When his tacos got noticed, he started his “Taco Tia” stand, offering tasty and savory tacos. In 1962 he sold his business to his partners and put up the first Taco Bell in Downey, California.
In 1964, Taco Bell started accepting franchises that resulted in various restaurant locations, not just in the U.S. but around the world.
The initial investment required is between $500K to $3.5M. A franchisee must have at least a net worth of $1.5M. There is also a cash requirement of almost a million dollars. The cost mentioned does not include the royalty fee over 5% and the ad royalty fee, which is over 4%.
The company started in 1927, and it was originally named Tote’m Stores. In 1991, Japanese affiliate Ito-Yokado acquired 70@ of the company. In 2005, it became a subsidiary of Seven-Eleven Japan Co., Ltd. Presently; it operates in 17 countries with over 71K stores.
The store hours were from 7 a.m. to 11 p.m. during those days, and now it is open for 24 hours.
The initial investment that 7-11 company requires from interested franchisee starts from $69K to over $1,200,000, and the franchise fee can reach up to a million. Cash requirement varies and can be between $50K to $250K.
They originally named Dunkin Donuts The Open Kettle. The brainchild of the company was Bill Rosenberg, who founded Industrial Luncheon Services, whose business is to deliver meals plus snacks to workers within the vicinity of Boston.
He then changed the name “Industrial Luncheon Services” to “The Open Kettle” and turned it into a doughnut shop. Two years later, he named it Dunkin’ Donuts.
Dunkin’ Donuts not just serve doughnuts but also coffee, sandwiches, baked goods, and bagels.
In 1955, Dunkin’ Donuts started franchising, and they already have a presence in 32 countries and still increasing.
Today, the initial investment required is from half a million to less than two million. The initial franchise fee can range from $40K to over $80K. There is a net worth requirement of $250K to half a million.
The company has 1.4K locations around the world, and its headquarter is in Dallas, TX. Wingstop started in 1994, when their tasty and delicious classic wings, boneless wings, and tenders were offered to guests.
Thanks to Antonio Swad, who founded Wingstop and believed in the popularity of this specialty.
Wingstop is also famous because of its unique sauce, flavors, and various dips.
In 1998, Wingstop started accepting franchisees, and the initial investment they require ranges from $350K to $750K, and the franchisee must have a net worth of over a million. The initial franchise fee required is $20K, while the cash requirement is over half a million dollars. Royalty fee and ad royalty vary.
It was Michael Grondahl who made this company happen when, in 1992, he acquired an old gym and started an affordable gym for occasional or first-time gym clients. He reduced membership costs to compete with the other well-known fitness center in the area.
In 2003, the company started accepting franchisees, and today, the initial investment they require can range between $900K to $4.6M with a net worth requirement of almost $3M. There is a cash requirement of 1.5M dollars, and the initial franchise fee is $20K.
The royalty fee and the Ad royalty fee are 7% and 9%, respectively. As of today, Planet Fitness is still as prosperous.
Steve Kuhnau founded the company in 1973. He suffered from allergies and found out that it was because of his diet. He started eating healthy, and he also experimented with drink mixing by combining fresh fruits to have a high protein and nutritious drink that will also avoid hypoglycemia.
Smoothie King not only carries smoothies but also has various minerals, vitamins, nutritional supplements, and low-fat snacks.
Smoothie King accepted franchises in 1988, and the criteria include a net worth requirement of $300K, a cash requirement of $100K, initial investment between $250K to less than a million. The initial franchise fee can range from $15K to over $30K. The royalty fee is 6%, and the ad royalty fee is half of the royalty fee.
The company was introduced as Mail Boxes, Etc. in 1980, which is set as an alternative to the post office. In 2003, UPS acquired the business and changed the store concept, and a new brand was established. It was called the UPS Store brand. After the first acquisition, 3K Mail Boxes, Etc in the USA, was converted to The UPS Store and made their services more affordable by reducing the shipping rates.
It was in 2021 when Mail Boxes Etc. was renamed as The UPS Store Inc. Their services, however, remain the same, offering printing, packing, shipping, freight, among others.
Franchising with UPS gives you training back up, business support, and a worldwide following. When UPS opened the business for franchising in 1980, they were all out with their guidance to make each franchise a success.
They found Cinnabon in 1985 in Seattle, Washington, USA. We know them for their cinnamon rolls, drinks, coffee, and other baked goodies. As of today, there are over a thousand Cinnabon bakeries found in 48 countries. They made this possible when they started franchising in 1985 and offered it to different parts of the world.
There are some financial requirements and fees that a franchisee must comply with; one is paying the initial investment that ranges between $100K to $500K. The net worth requirement should not be below $300K and can reach up to $600K. A cash requirement ranging from $100K to over $250K is expected. An initial franchise fee can reach up to $31K, while the royalty fee is 6%, and the Ad royalty fee is less than 2%.
Kumon was founded 60 years ago in Japan by Toru Kumon. He developed the Kumon Method to help his son having a hard time with second-grade arithmetic. He made worksheets for his son, realizing that a firm foundation for basic learning, in addition, multiplication, subtraction, and division, is required.
His son started mastering the subject and finally understood how it is to solve vital math problems.
Kumon is found in various countries such as Poland, Portugal, Spain, Germany, France, Belgium, Austria, Canada, Mexico, U.K., Netherlands, Ireland, and more.
For those interested in franchising Kumon, the net worth requirement is $150K and above. The franchise fee is less than $3K. Although there are some additional fees required, it is still affordable.
Ace Hardware was founded by Richard Hesse, Franke Burke, Oscar Fisher, and E. Gunnard Lindquist in 1924. They were hardware store owners wanting to compete with bigger stores that sell various merchandise, particularly items for home improvement.
In 1976, Ace Hardware started offering a franchise to those interested, and, following that offer, Ace Hardware has a presence in many countries.
Today, there are thousands of Ace Hardware stores in seven countries offering a variety of merchandise, materials, and other items specific for repairs, improvement, and enhancement of any home, property, building, and any other construction.
Ace Hardware’s initial franchise fee ranges between $5K to $8K, and the initial investment can reach over two million dollars. The net worth requirement is between $400K to $800K, while the initial franchise fee is from $5K to $10K.
Papa John’s started their business in 1984 when the founder “Papa” John Schnatter bought pizza-making equipment to put up a pizza business. It proved to be the best choice he ever made cause after a year, Papa John’s Pizza became popular as they also offer dipping sauce for their pizza.
In 1993, Papa John’s Pizza offered a franchise to the public, and in 1997, there were over 1.5K stores not just in the U.S. but in different parts of the world.
Papa John’s Pizza has operations in Europe, Latin America, parts of Asia, and India. The required net worth for potential franchisees should be at least $300K, while the franchise fee ranges between $25K to $35K. The royalty fee is 5% of the net sales, while the ad royalty fee is 8% of the net sales.
Subway is a well-known fast-food restaurant that sells sub sandwiches, beverages, salads, and wraps. Fred De Luca founded the company in 1965 and has financial backup by Peter Buck. They originally named subway “Pete’s Super Submarines” in Connecticut. They renamed it Subway two years after.
The company is now offering franchises around the globe. The signature of the company is their various topping choices that are all fresh and healthy.
In 2015, Subway was one of the fastest-growing franchises, with over 37K locations in over 100 countries.
If you want to get a Subway franchise, the initial franchise cost can range between $15K to $50K, while the total investment can reach $300K. The cost mentioned above does not include the royalty and advertising fees.
The Valvoline Instant Oil Change started in 1986, which is a division of The Valvoline Co. They offer a quick-lube fix for vehicles with branches in New York, Michigan, and Minneapolis. They also offer chassis lubrication, vehicle maintenance, and other automotive assistance.
VIOC started accepting franchises in 1988, and, to date, there are over 900 VIOC locations all over the globe.
Those interested in getting this business need a net worth of a million dollars, with cash requirements of more than $500K, and an initial investment not less than $3M. The initial franchise fee can range from $30K to $40K. The royalty fee and ad royalty vary.
The company’s current name is Popeyes Chicken & Biscuits and Popeyes Famous Fried Chicken & Biscuits. Alvin C. Copeland found it in 1972 in New Orleans, Louisiana, with headquarters in Miami, Florida.
Copeland first named the restaurant “Chicken on the Run,” but when he noticed that customers were “running” away from the restaurant, he changed the name to “Popeyes.”
It proved to be the best decision cause the restaurant became well known and popular from then on.
In 1976, Popeyes started offering franchise opportunities with requirements such as a net worth of $1M, a cash requirement of $500K, an initial investment of over 3M, and a franchise fee that ranges between $50K to $70K.
Domino’s Pizza started in 1960 with headquarters in Ann Arbor, Michigan. It is called Domino’s now, with it being on top in the business of pizza-making. Their sumptuous pizza, with its fantastic flavors in one bite, has reached 83 countries and over 5K cities worldwide.
They have over 17K stores now and continuously growing as of this writing.
In 1967, Dominos started franchising and grants franchise requests only to successful managers or store supervisors for at least a year.
The initial investment required to open your own Domino restaurant can range between $150K to $500K, with the franchising fee is initially $10K. The net worth requirement is at least $250K, and the cash requirement is not less than a hundred thousand dollars.
Dan and Frank Carney found pizza Hut in 1958. Now, it has over 19K restaurants worldwide.
Pizza Hut not just offers pizza but also other dishes such as pasta, salad, fried chicken, soups, and even hamburgers.
Pizza Hut started the craze such as Stuffed Crust Pizza, Hand-Tossed, Thin and Crispy, Dippin’ Strips, P’Zone, and the Bigfoot Pizza.
Franchising for Pizza Hut started in 1959, and they screen applicants and prefer those with retail management or restaurant experience. There is a training program offered for franchisees to ensure the smooth handling of the franchise.
The cost will include the franchise fee of $25K with an initial investment ranging from $300K to over $2M. A royalty fee plus the ad royalty fee is required as well. The net worth that franchise applicants must have should be at least $700K.
Tim Horton is a fast-food restaurant chain that offers doughnuts, coffee, and other food items. They are based in Toronto and were founded in 1964 by Tim Horton, a Canadian hockey player, and Jim Charade.
After Horton died, his partner Roy Joyce expanded the restaurant and started franchising.
Any applicant for franchising must satisfactorily complete the requirements demanded by the company. Anyone interested in getting a franchise must also have a background in restaurant management or have supervisory experience.
Franchising fees can range from $100K to $2.3M or up. The price is inclusive of the franchise fees, equipment, site development costs, training, initial inventory, and license fees.
Franchising is a great opportunity even if you have less experience as long as you inject effort and time into the venture. Most franchise offers training for those who have completed the requirement and have the initial investment required for the business.
However, one must be open-minded and know how to work hard. Even if the business you invested in is a popular name in the industry, you still need focus to help it gain profit.
Getting a franchise is for those ready to face the challenge of being a business owner and have the vision. One needs to explore their options and believe in the possibilities.