Owning a franchise allows you to run your own business without all the stress of starting from scratch. Opening a franchise location close to where you live lets you check in on your investment and manage any day-to-day tasks quickly and easily. You might wonder if the best way to find these great opportunities is to search “franchises for sale near me.” That is certainly one approach, but we at Franchise Opportunities wanted to make it even easier to reach your businesses owning goals. We provide an easy-to-use searchable database of franchises that can be filtered by state. This way you can pinpoint exactly which franchises would be a good fit for you in your location.

Happy local franchiser

For instance, if you wanted to find the top 10 franchises in California, you can visit this page for the most current selection. Similarly, if you prefer to look for the most profitable franchises in Texas, the best Texas franchise opportunities can be found here. You can also search for franchises by industry and investment level.

If you aren't quite ready to start searching for franchises that's fine. After all there is a lot that goes into opening a franchise locally, so it is important to consider several factors before you decide which option is the best for you. This article will go through the most commonly asked questions and essential considerations to guide you on your way to your career as a franchise owner.

Which Type of Franchise Is Best?

At the end of the day, the best franchises to own will vary from person to person. The first step in choosing which type of franchise is right for you is to decide what you want out of franchise ownership. Here are some common factors that people use to decide which type of franchise might work best for them:

Industry

Many people are drawn to specific industries when it comes to opening a franchise. This could mean that you are most passionate about running a franchise in an industry you are already familiar with. If you have always worked in retail stores, you may be inclined to pursue retail franchise opportunities. Or it might mean that you have a hobby or other area of interest that you want to turn into a career. For example, if you are passionate about weightlifting and interested in exploring health and fitness franchises.

Some of the most popular industry types for franchises include:

  • Automotive - From oil changes to window tinting, drivers need services to keep their cars running smoothly.
  • Beauty - With the growing trend toward self care and everyone’s desire to look their best, beauty based franchises like hair salons and waxing spas are always in demand.
  • Cleaning - So many of us are strapped for time, having someone else do the cleaning can be a real life saver. Franchise opportunities in the cleaning sector include everything from a whole house clean to specialists in carpet, duct, or window cleaning.
  • Education - From tutoring to swim classes, teaching kids (or adults) new skills is always in demand.
  • Pets - Pet owners want to provide the best for their furry friends, and there are many franchise options to choose from in this area, everything from pet grooming to doggy daycare.

Investment Level

Other future franchise owners have a specific amount of money they want to invest in a franchise, and prefer to shop for franchises that fit their budget. There is a huge range of different investment amounts available in franchises, allowing you to tailor your franchise search for the startup cost that works for you. Why not search for low cost franchises with high profit potential if you have a smaller budget? Or you could choose an established franchises with a higher starting cost but even larger possible return on investment if your budget allows.

Location

Working close to home (or even from home) is another huge motivator for many wishing to become their own boss. Searching by state to find out which franchises you could open exactly where you live (or want to live) is a great option. Alternatively, you can also search for home based franchises that allow you to run your own turnkey business from the comfort of your own home. There are even great options for mobile franchises that give you the flexibility to move your franchise with you so it’s always conveniently located.

What Franchise Is the Most Profitable?

Determining which are the most profitable franchises can be harder than you might think. There are a lot of factors that go into calculating the profit of a franchise parent organization, and even more variation in the profitability of individual locations (called units). Let’s look at some tools and metrics that can help you understand how profitable you might expect to be when you open your own franchise location near you.

  • New Unit Success Rate - This percentage will show you how many newly opened franchise locations are still open after one year.
  • Growth of Units - This number shows how many locations of a franchise have opened recently
  • Financial Details - These will come from the Franchise Disclosure Document and might include things like average sales per location.

One thing that is true is that the most profitable franchise locations are often the ones that are run well by a franchisee that did their homework. The parent company of a franchise provides a huge amount of support for their franchisees, but it is important that you educate yourself and make the best business decisions possible too.

At Franchise Opportunities, we have a resources page that can get you started learning about many of the important aspects to consider before you choose your franchise. This includes things like a guide to understanding a franchise agreement, a finance center, FAQ’s page, and legal guidance and resources.

Which Food Franchise Is Most Profitable?

Although predicting the exact profit of an individual franchise location isn’t possible, there are some franchises that consistently perform well. At Franchise Opportunities, we’ve compiled a list of the Top 50 Franchises for 2022 that have proved successful for many. Any of the food franchises from this list have great potential to be very profitable for a new franchisee.

There are options like:

What Is the Cheapest Franchise to Buy?

There are franchise opportunities for a huge range of budgets. If you find yourself asking, “Which franchise is best with low investment?,” we have several options of cheap franchises under $8,000. These include:

  • Ideal Directories - $159 minimum cash required. This franchise lets you start a local business directory and coupon website for your town or city.
  • My Business Venture - $3,995 minimum cash required. This franchise gives you the ability to start an online business from your home with your choice of 2 million products to include.
  • Wood Defender - $7,500 minimum cash required. This franchise is for fence and deck staining to protect the longevity and beauty of your customers homes.

If you have a slightly larger budget, as you plan for your new career as a franchise owner, we also have many

franchises for sale under $10k. Like these:

  • VELUX Skylight Specialist - $10,000 minimum cash required. This franchise is the world leader in skylight manufacturing, and helps entrepreneurs from a variety of backgrounds build successful skylight installation businesses.
  • US Glass Fence - $10,000 minimum cash required. This franchise specializes in the design, fabrication and installation of frameless glass fences and railings.
  • Kinderdance - $10,000 minimum cash required. This franchise is an educational based dance and movement program designed to inspire children's imagination.
  • Honest Lash - $10,000 minimum cash required. This franchise is an eyelash and brow studio specializing in providing a warm and welcoming atmosphere.

Food based franchises are some of the most well known and popular franchise options, and people often have questions specific to this industry. If you are wondering what the cheapest food franchises to open might be, here’s a list of some popular options:

starting a local franchise

How Much Cash Do You Need to Start a Franchise?

When considering how much money you need to start a franchise, there are several things to think about. Let’s look at one specific franchise, Le Macaron French Pastries, as an example as we go through the different costs associated with opening a franchise.

Minimum Cash Required

The minimum cash required to start a franchise lists much liquid capital is needed to successfully open your doors as a brand new franchisee. For our example pastry company, the minimum cash requirement is expected to be $70,000.

Net Worth Required

Because franchisors want you to be successful when you open a new franchise, they also share what total net worth their franchisees should have in order to successfully launch their new business. For our pastry example, a net worth for franchise of $250,000 is recommended.

Startup costs for a franchise are not the only expenses (more on this in the next section) and it may take several months of operations before your new business is earning enough for you to draw a paycheck. Paying attention to your net worth amount is important as you consider which franchise will best fit your needs. There are many great franchise options for people with a range of amounts to invest — making sure to choose one that is within your budget will make the process easier and less stressful.

If you are wondering how to calculate your net worth, Franchise Opportunities offers a Net Worth Calculator to help you understand what budget makes the most sense for the purchase of your franchise.

Total Investment

The minimum cash required to open a franchise location isn’t the only money you will need to successfully begin your franchise. The total investment amount reflects all of the anticipated expenses, including those that can be financed through your franchise parent company or external lending sources. This total investment amount is often provided as a range because it depends on the location and specific amenities you want your business to have.

Le Macaron French Pastries gives their total investment costs as $88,730-$458,560, and includes additional information about the three different styles of their franchise you can choose to open that will affect this cost. For this franchise, a new owner can choose to open a full café, modular kiosk, or mobile cart, depending on their preference, location, and desired investment level.

Franchise Fee

The franchise fee is the amount that a franchisee pays to the parent company for the rights to use their brand and receive their support and training. Each franchise parent company will provide information about exactly what this training and ongoing support entail, so it will be a little different for each one. At the end of the day, the expertise, advertising, brand recognition, and parent company support are what make opening a franchise so much easier and more successful than starting a brand-new, unproven business from scratch. Le Macaron French Pastries shares that their franchise fee is $45,000, and this fee is included as part of the total investment amount listed as well.

Unit Economics

Some franchises will share the average gross sales of their franchise locations. This is usually provided as Item 19 of the Franchise Disclosure Document, but some franchises choose to share this amount with all prospective franchisees. Le Macaron shares that, across their more than 60 locations in the US, the average gross sales are $473,877 a year. If you are considering opening a franchise location, knowing this average sales figure can make planning for your location easier. These averages are not a guarantee for sales in your location but can give you an idea of what others have experienced.

Can You Borrow Money to Start a Franchise?

Yes, you can borrow money to help you start and run a franchise. There are several different lending options available for new franchisees, including:

  • Franchisor Funding - Many franchises offer funding options for new franchisees that want to open a unit. The terms and exactly what is available will vary by the individual franchise, but this is a popular option. Getting funding through your franchise means you don’t have to work with outside lending agencies and can simplify the whole process.
  • SBA Loans - Funds available for small businesses that are partially backed by the US Small Business Association. Because of this backing, these loans are often available for a longer repayment schedule or with lower interest rates than a traditional loan might be.
  • Commercial Bank Loans - These are what most people think of when they think of a standard loan. This option includes regular monthly payments over a set period of time to repay the principal plus interest that was borrowed.
  • Alternative Lenders - There are options for financing that are not traditional loans through a bank. Most of these will function similarly to a traditional loan, but often have shorter repayment timelines and different requirements to apply.
  • Retirement Funds - There are options for purchasing a franchise using your retirement funds, like an IRA, 401(k), 403(b), 457(b), SEPs and others. It is possible to use these funds without paying taxes or penalties. Franchise Opportunities has more information about this option here.
  • Friends and Family - It isn’t uncommon for someone wanting to start a franchise to get part of their financing through help from friends or family. This could take the form of a financial gift, loans, or becoming franchise partners in opening a new unit.

How Much Do Most Franchise Owners Make?

Although there is no way to guarantee how much money you will earn opening a franchise, there is data available about average income for franchise owners. The Franchise Business Review found that “the average annual income reported by all food and beverage operators that we surveyed is $120,000 for businesses open at least two years.” Similarly, Glassdoor.com found that the “estimated total pay for a Franchise Owner is $109,470 per year in the United States.”

Just like in all sectors, average income can give you a good idea of what to expect, but there will be variation depending on the specifics of each situation. The type of franchise you choose, location, your management skills, and local market factors will all determine your specific franchise profit margin.

Franchise Opportunities: Helping You Start Your Next Career

Starting a new franchise can be an exciting time. Making sure to choose a franchise that is a good fit for you and fits your career goals will make it even better. At Franchise Opportunities, we have information about hundreds of franchises that make searching for your best option easy. Check out our wide selection of top franchises to begin your journey now!

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