4 frequently asked questions for choosing the best franchises to own in the US
A franchise is a type of license that a party, known as the franchisee acquires in order to allow them to have access to the franchiser’s (a business’) proprietary knowledge, trademarks, and processes to allow the franchisee to sell a product or provide a service under the established business’ name. The franchisee pays the franchisor initial start-up and annual licensing fee. Choosing the best franchises to own in the US can be a tricky business. Here are some questions that you should ask before owning a franchise.
What is the ideal budget when choosing the best franchises to own?
- The cost of a franchise depends on the industry and the business model.
- There are some business models that have an upfront fee of $10,000, while others can go up to $1 million.
- Before deciding to own a franchise, the prospective franchisees should consider the initial investment that would be required to own the franchise and how much returns should be expected from the business. The franchisee should consider their own lifestyle, wealth, income, and equity when choosing from the best franchises to own.
What are the basic business skills required for own the best franchise?
- It is important for the franchisees to understand basic entrepreneurial skills.
- To succeed in a franchise, franchisees should be willing to take small and controlled risks to the least. This risk aversion comes with a fact that every business involves some level of risk and failure.
- To own some of the best franchises you need a specific set of operations which will tell you the best way of associating with the business.
How to determine which franchisee is the best for you?
- When choosing the best franchises to own, you need to narrow down the reasons for choosing one primarily.
- Decide on the factor if you want own the franchise as a hobby, a part-time, or a full-time job. This will help you decide whether you want the franchise as a primary source of income or to build it as an equity.
- Evaluate your skill sets as you should possess prior professional experience that you were comfortable with before choosing from the best franchises to own across the country. This includes interacting with clients via cold calling or interacting with them from behind the counter. In the initial days of setting up a franchise, you might have to manage minimum wage employees and work on the field with clients and customers yourself.
Which are some of the best franchises to own in the country?
Based on the risk involved in the business, here are some of the best franchises that you can own:
- Ace Hardware currently owns and operates more than 10000 stores across seven countries. It has been franchising since the past 40 years and has a brand tradition of 93 years. They offer their customers a wide range of tools to maintain their gardens and houses and also provide advices regarding the same.
- Fast food chains and fancy restaurants is a very profitable business. Jack in the Box is one such franchise. Opened back in 1951, it started franchising around 35 years ago. Although the initial investment of setting up this franchise is around $1 million, it might turn out to be a profitable investment.
- Continuing to state the fact restaurant franchises are one of the most profitable businesses to own, Hardee’s is one of the franchises that need a initial investment capital of roughly $1.5 million.
- Fitness is very important nowadays, especially when many people have desk jobs that make them sit for most of their working hours. Being one of the youngest and one of the best franchises to own, Anytime Fitness has acquired great success by promoting a healthy lifestyle. The start up cost to own this franchise ranges between $80,000 to $100,000.
- Being in the cleaning and a restoration industry, Servpro has been franchising for the last 48 years. If you are looking to avoid food-based business and are considering to go for a more practical type of a business, Servpro might be the choice for you. The initial investment needed for this venture is around $150,000.