Want to be your own boss and have the opportunity to make passive income doing what you love for a living? Franchises are a great way to have your own business without all the work of building a company from scratch.
A franchise gives you business guidance and marketing support to be successful. They also come with built-in brand reputations (and sometimes a pre-existing customer base). Let’s take a look at some of the best franchise opportunities, organized by type, along with more info about each one.
Article Overview
- How Franchising Works (An Illustrated Video Guide)
- 4 Things To Look For In A Franchise
- Franchise Locator
- Best Franchises
- Tips For Getting Started
- Strapped For Cash? Funding Opportunities
Video: How Franchising Works: An Illustrated Guide
Before we jump into the best franchises to own, here’s a quick overview of how they work from both the franchise owner and the franchiser’s perspective.
4 Things To Look For In A Franchise
There are a number of things you should consider including:
- Location: If you live in a city that has a colder climate year-round then you probably don’t want to open an ice cream parlor in the middle of winter.
- Demands: If you have always dreamed of having a neighborhood pizza place but there are already several struggling pizzerias in the area, then you might want to reconsider.
- Your Values: If you value is making money, then you should look for a franchise opportunity with higher profit margins and growth rates. But if you are more interested in a franchise with flexibility and freedom, then you should consider those types of business opportunities when making a decision.
- Personality and Skillset: If your a passionate, business savvy mom then TotSquad (a baby stroller and car seat cleaning franchise company) gives you the ability to utilize your background in business to help other busy moms who have the same desire to keep their children clean and safe. On the flip side, if you are allergic to gluten and a vegetarian, then opening a Jimmy John’s sub shop might not be the best fit for you.
Franchise Opportunity Locator
Locate The Best Franchise For You
Franchise Genius offers a franchise database you can search by industry, location and price range to find the perfect fit for you, your interests and your budget. You can also use Franchise Genius to learn more details about companies we review below, and the next steps to owning one.
What Are The Best Franchises To Own?
With those things in mind, we broke out the best franchises by type and picked the top three picks for each category. These made our shortlist because they topped multiple other lists for being reputable brands with high growth potential.
Feel free to use the menu below to jump to the top franchises for sale by category, or keep scrolling to read them all.
Food & Beverage | Health & Wellness | Home-Based | Retail | Educational
Best Food & Beverage Franchises
Are you a foodie with a knack for customer service? Owning a fast-casual dining concept is a great way to dip your toes in the restaurant world without taking the plunge. Being in food and beverage means there are more overhead costs, potential health hazards, and lots of competition. But it could be a delicious deal if you have the cash.
Culver’s
Description: Family oriented restaurant with butter burgers, fresh frozen custard & Wisconsin cheese curds
Founded: 1984, franchising since 1998
Type of Business: Brick and mortar
Minimum Investment Required: $1,845,000
Net-worth Requirement: $350,000
Franchise Fee: $55,000
Royalty Fee: 4%
Number of Units: 562
Required Employees: 40-50
Jimmy John’s
Description: Shop and delivery offering fast, fresh, made to order sub sandwiches
Founded: 1983, franchising since 1993
Type of Business: Brick and mortar and delivery
Minimum Investment Required: $325,000
Net-worth Requirement: $300,000
Franchise Fee: $35,000
Royalty Fee: 6%
Number of Units: 2,434
Required Employees: 20
Zaxby’s
Description: Fast food serving chicken fingers, wings, sandwiches and salads
Founded: 1990, franchising since 1994
Type of Business: Brick and mortar
Minimum Investment Required: $284,000
Net-worth Requirement: $700,000
Franchise Fee: $35,000
Royalty Fee: 6%
Number of Units: 574
Required Employees: 7-10
Best Health & Wellness Franchises
Love the idea of making the world a better, fitter place, and improving other’s mental or physical state without going back to med school? Then you might be a good fit for a fitness or health franchise. In a health-conscious society, there’s never been a better time to get moving on this trend.
Two of our picks are brick and mortar but one is an in-home service which has less overhead.
Planet Fitness
Description: Gym and fitness facility focusing on occasional or first-time gym users
Founded: 1992, franchising since 2003
Type of Business: Brick and mortar
Minimum Investment Required: $728,000
Net-worth Requirement: $3,000,000
Franchise Fee: $10,000
Royalty Fee: 5%
Number of Units: 956
Required Employees: 12-15
Massage Envy
Description: Customized, affordable therapeutic massages, spa and skincare services
Founded: 2002, franchising since 2003
Type of Business: Brick and mortar
Minimum Investment Required: $411,700
Net-worth Requirement: $500,000
Franchise Fee: $45,000
Royalty Fee: 6%
Number of Units: 1,146
Required Employees: 20
Right at Home
Description: Senior care, elder care, home health care, caregiver assistance, and other home care needs
Founded: 1995, franchising since 2000
Type of Business: In-home service
Minimum Investment Required: $74,000
Net-worth Requirement: $150,000
Franchise Fee: $48,500
Royalty Fee: 5%
Number of Units: 376
Required Employees: 2+
Best Home-Based Franchises
If you like taking care of people, then a service-oriented franchise business might be your best bet. Unlike traditional brick and mortar companies, home-based and service companies are the best low cost franchises to own. Plus, a mobile service gives you more flexibility and a wider range of customers without the costly overhead of a building.
Keep in mind you’re limited in terms of time, will be managing schedules, and need specialized employees to train and hire in addition to ensuring the drivers, fluctuating gas costs and wear and tear on your fleet. In addition to TotSquad, we recommend these three services to grow your bottom line faster.
Weed Man
Description: Landscaping, lawn care, and pest control
Founded: 1970, franchising since 1976
Type of Business: In-home service
Minimum Investment Required: $68,450
Net-worth Requirement: $60,000
Franchise Fee: $20,000
Royalty Fee: 6%
Number of Units: 425
Required Employees: 4-6
Two Men And A Truck
Description: Local packing and moving company
Founded: 1985, franchising since 1989
Type of Business: In-home service
Minimum Investment Required: $178,000
Net-worth Requirement: $350,000
Franchise Fee: $50,000
Royalty Fee: 6%
Number of Units: 267
Required Employees: 7+
MaidPro
Description: Residential, customized eco-friendly cleaning subscription service
Founded: 1991, franchising since 1997
Type of Business: In-home service
Minimum Investment Required: $58,960
Net-worth Requirement: $50,000
Franchise Fee: $17,000+
Royalty Fee: 3-6%
Number of Units: 189
Required Employees: 1-25
Video: MaidPro Success Story
Watch this 2-3 minute video of Jesse Z who owns and operates a successful MaidPro franchise out of Pennsylvania and is considering opening more. He talks about the freedom and flexibility it allows him and his wife in their life.
Best Retail Franchises
Retail stores are a good option if you like interacting with people and have set hours where you can close up your doors at night. So, you don’t have to have a desk to have a 9 to 5 job.
Two of the retail picks are brick and mortar while one is a pop-up shop that caught our attention as a unique way to earn income without having to run a store year round. You’ll have inventory to deal with but skilled labor is not an issue with retail, just plenty of smiling faces.
While cheap franchises do not really exist, there are some opportunities in this industry that offer a lower capital investment.
Just Between Friends
Description: Children’s and maternity consignment sales events
Founded: 1997, franchising since 2004
Type of Business: Pop-up retail events
Minimum Investment Required: $32,774
Net-worth Requirement: $15,000
Franchise Fee: $14,900
Royalty Fee: 2-3%
Number of Units: 151
Required Employees: 1 full-time, 15-20 team members for events
Batteries Plus Bulbs
Description: Replacement batteries, light bulbs and smartphone and tablet repair services
Founded: 1988, franchising since 1992
Type of Business: Brick and mortar
Minimum Investment Required: $211,552
Net-worth Requirement: $350,000
Franchise Fee: $37,500
Royalty Fee: 5%
Number of Units: 634
Required Employees: 3-4
7-Eleven
Description: Convenience store
Founded: 1927, franchising since 1964
Type of Business: Brick and mortar
Minimum Investment Required: $34,550
Net-worth Requirement: $100,000
Franchise Fee: $10,000
Royalty Fee: none, profit sharing
Number of Units: 8,100
Required Employees: 7-10
Best Education Franchises
Education is one thing that will never go out of style. In fact, as gaining entrance into college gets more competitive, many parents are giving their kids an advantage with tutoring and test prep.
Mathnasium
Description: Custom math tutoring services for preschoolers through high school
Founded: 2002, franchising since 2003
Type of Business: Brick and mortar / delivery / online
Minimum Investment Required: $90,750
Net-worth Requirement: $137,610
Franchise Fee: $40,000
Royalty Fee: 10%
Number of Units: 624
Required Employees: 1
The Learning Experience
Description: Education-based childcare services
Founded: 1979, franchising since 2003
Type of Business: Brick and mortar
Minimum Investment Required: $495,299
Net-worth Requirement: $500,000
Franchise Fee: $60,000
Royalty Fee: 7%
Number of Units: 150
Required Employees: 10-20
Sylvan Learning Center
Description: Personalized instructional services to students of all ages and skill levels
Founded: 1979, franchising since 1980
Type of Business: Brick and mortar
Minimum Investment Required: $186,945
Net-worth Requirement: $250,000
Franchise Fee: $48,000
Royalty Fee: 8-9%
Number of Units: 1,050
Required Employees: 2-4
More Franchise Opportunities
There are several other top franchises in categories we didn’t cover (hotel chains, big box stores, and countless others). So if you don’t see one that interests you, we recommend searching Franchise Genius database to search by industry, location and price range to find the perfect fit for you and your interests and budget.
You can also use Franchise Genius to learn more details about one of the companies above and the next steps to owning one.
How Can I Get Started In Franchising?
Ready to start taking the next steps to making money and living your dream with one of these top franchises to own? Before taking the plunge, Jennifer Saxton from Tot Squad recommends attending a “Discovery Day” at a franchise headquarters as a good way to kick the tires and gauge if you are a fit for the franchise model. That way you can get a real taste to see if it’s truly the best franchise for you to invest in.
Strapped For Cash?
Need funding? Be sure to read our best small business loans article to learn possible ways you can get some cash to get off the ground (from the comfort of your home). And once you get your business off and running, be sure to check out our best accounting software review and our best payroll services to help you run your franchise more efficiently.
Tagged With:
