Investing in franchises can be a great way to grow your business footprint and income without taking all of the same risks inherent in starting a new business.
Franchises are set up with established methods of operation, advertising, training, and reputation to better ensure that new ventures are successful. But which franchises will give you your best possible return?
Let’s take a look at eight of the top franchises you should consider owning today.
Jersey Mikes
Jersey Mikes has been ranked in the top three of all franchises to invest in for 2023. This New Jersey-based submarine sandwich shop has been around since the 1950s and now has more than 2,400 franchise locations.
Initial investments in a Jersey Mike’s location range from $194,000 to $955,000 with the initial franchise fee coming in at $18,500. Further, a royalty fee of 6.5% and an ad royalty fee of 5% must also be paid regularly.
Playa Bowls
Playa Bowls started as a small pop-up patio shop and has evolved into a franchise with more than 170 franchise locations. This surfer-founded business works to promote healthy acai and pitaya bowls to customers from their native New Jersey to the rest of their locations around the States.
The initial licensing fee for a Playa Bowls franchise is $35,000 which must be paid upfront. Further, the total expected investment for any new Playa Bowl location will range from $168,675 to $435,058.
Additionally, royalty fees at 6% of the gross monthly sales and a 1% fee for brand development must also be paid.
Great Clips
Great Clips is a hair salon that’s been in business for over three decades. It operates in both cutting and styling men’s, women’s, and children’s hair on a walk-in or appointment basis. Additionally, Great Clips serves as the official hair salon of the National Hockey League (NHL).
Initial investments in a Great Clips franchise cost owners $20,000 for the franchise fee, an investment ranging from $178,400 to $376,900, and then a 6% royalty fee with a 5% ad royalty fee.
Additionally, any franchisee must also have a net worth of $300,000 to $1,000,000 and $75,000 to $250,000 in cash.
McDonald’s
McDonald’s is one of the most consistent franchise leaders with operations dating back over seventy years. The fast-food empire has a great reputation among the public and a total of more than $112 billion in global sales in 2021.
To open your own McDonald’s, you’ll need to make a $1.4 to $2.5 million initial investment with an initial franchising fee of $45,000. Further, a 4% royalty fee and a 4%+ ad royalty fee will also be added.
You must also meet the minimum financial requirements of $100,000 in cash to qualify for this franchise.
Nothing Bundt Cakes
Nothing Bundt Cakes was founded in Las Vegas in the late 90s, becoming a very popular spot for specialty cakes. In fact, it’s been ranked in the top 100 franchises to own in the U.S..
For your initial investment in a Nothing Bundt Cakes location, you’ll need a franchise fee of $35,000 and a total investment of $483,600 to $699,700. Royalty fees rate at 6% and marketing royalties are collected weekly at 5%.
Additionally, to open one of these franchises, you’ll need to meet the established minimum financial requirements of $200,000 in liquid capital and a combined net worth of $600,000.
7-Eleven
7-Eleven has been around for almost one hundred years. It operates as a convenience store offering fresh-made meals, drinks, snacks, first aid equipment, and more.
7-Eleven, unlike some other franchises, offers up to 65% financing on the initial franchise fee for some qualifying applicants. This can be very beneficial as this fee can extend to one million dollars for a single establishment, not including the $125,250 to $1,333,500 a new owner needs to pay for the separate initial investment fee.
The royalty fee for this franchise will vary by the individual, but the ad royalty fee is typically 1%, and owners must have $50,000 to$250,000 in cash to be financially eligible.
Taco Bell
Taco Bell is a franchise that’s part of Yum! Brands including other noteworthy franchises like Pizza Hut and KFC. But despite Taco Bell being ranked as one of the top best franchises to own in 2023, there is very little franchising information available on the company’s website.
Entrepreneur reports indicate that an initial investment in a Taco Bell franchise runs from $575,600 to $3,370,100 with an initial franchise fee of $25,000 to $45,000. Additionally, you will also have to pay a 5.5% royalty fee and a 4.25% ad royalty fee.
To own a Taco Bell, you must have a minimum of five million dollars in net worth and two million dollars in cash.
Dunkin’
Dunkin’ is an incredibly popular franchise that sells coffee, doughnuts, frozen drinks, sandwiches, wraps, and more. Additionally, unlike other franchises on this list, Dunkin’ grew from a single shop into a successful global empire.
Initial investments for this franchise run from $40,000 to $90,000 with an investment range of $437,500 to $1,787,700 for a traditional, 1,200-2,600 square foot unit. A franchise fee of 2% to 6% and an advertising fee of 5% is also required.
Further, there are a few minimum requirements to own a Dunkin’ franchise. Any owner must have $250,000 in liquid assets and a net worth of $500,000 per restaurant owned.
Key Takeaways
If you’re looking to open a franchise, there are many excellent options you may want to consider. From New Jersey native businesses like Jersey Mikes and Playa Bowls to other profitable franchises like Great Clips and Taco Bell, there is no limit on the kinds of franchises available for investment.
Want to learn more about the best franchising options and the right insurance policies to protect them? Reach out to Schumacher Insurance Agency today!
Disclaimer
The price ranges, percentage estimates, and other statistics on this page are accurate to research present as of February 19, 2023. Deviations from these numbers may occur as franchises and the business market change over time. Make sure you always conduct independent research into whichever franchise you choose to invest in to ensure you are fully aware of the exact costs, legal requirements, and important details per the time of your purchase.