What’s the Best Franchise for You?
It’s one thing to browse a list of top franchises, but how do you decide on the best franchise for you? Some businesses that may be suitable for other individuals might not be the best fit for you. Here are some key factors to consider as you look for the right opportunity:
- Niche. What industry is the franchise in? Is it a small niche targeting a very specific type of customer or a broader niche with a larger audience? While it’s not necessary to have an interest in the company to run a successful business, being passionate about the niche can help to improve your enjoyment as a business owner. Additionally, it can be helpful to ensure your skillset aligns with the requirements of the niche you choose. For instance, if you want to be hands-on and have a deep knowledge of automotive mechanics, a car repair franchise might be a great fit for you.
- Budget. When determining your budget, it’s important to consider startup costs and fees. Some of the top franchises can also be some of the most expensive. Be sure that you understand the startup and ongoing costs required from you to open and manage your franchise. The good news is that there are financing options available that can help you get started.
- Location. Does the franchise operate in your region? Do you have any control over where you can open a franchise? Are there already strong competitors in your area? These are all important considerations when looking for the best franchise opportunities for you.
- Support. Almost all franchisors will offer some level of support to help you start and manage your new business. But some companies offer more support than others. When comparing opportunities, be sure to ask what initial training and resources are provided as well as what types of ongoing support will be available.
- Time. As you compare franchises, you’ll want to consider both your day-to-day time commitment and your long-term time commitment. Will you need to be hands-on daily managing the business, or will you be able to hire staff and delegate tasks? Is there a franchise term in place that requires you to manage the business for a certain number of years? And, if you do decide you want to change directions later, how easy will it be for you to sell the franchise?
- Growth Opportunities. What opportunities are there to grow your business? If you choose a larger brand, there may be less room to grow—but if you choose a smaller brand, there may be many challenges to overcome as you expand. Is there a wider market that hasn’t yet been tapped into, or has the brand reached the limit of its market cap? How easy would it be for you to open a second location if things were going well with your first location? While you might not be thinking too heavily about expansion before you even get started, considering the growth potential is an important factor when deciding on the best franchises to own.
** Footnote: This list was compiled based on the most requested franchises and business opportunities on Franchise Opportunities Network of websites in calendar year 2022. The four sites include: FranchiseOpportunities.com, FranchiseForSale.com, FoodFranchise.com, and BusinessBroker.net. The number of inquiries a franchise receives is influenced by their advertising budget and the number of days active on the websites. This is not an endorsement of any particular franchise or business opportunity nor is this a scientific ranking.