Last updated on April 3rd, 2021

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Top 10 Franchises You May Consider Investing In

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Owning a franchise can be an incredible way of owning a business while minimizing the risks involved in starting from scratch. This is because franchising comes with many advantages such as having access to proven, established vendors and suppliers which you do not get if you start your own company without these benefits.

Joining one of the most profitable franchises is usually safer for any aspiring investor. To be able to know the amount you can make buying investing in a given franchise, you will have to consider several factors though there are several indicators that a potential franchisee will give you a good chance of earning a profit.

For instance, the franchise should favor your local demographic, have a good reputation and have a support system that is proven. Some other good indicators include having an appealing annual revenue and have a good nationwide number of locations. This will mean that you are likely to earn a profit by investing in such a franchise.

According to Franchise Direct, the ultimate method to determine a franchise’s future disclosure document (FDD), that outlines the financial performance of a business. It is a wise idea to seek advice from a lawyer or an accountant who can help you assess the odds that favor your investment.

You should understand that turning a profit means that debt is mitigated and therefore you should only consider the franchises whose initial fee and upfront investment are doable as per your financial situation.

This should also be a conversation you discuss with your accountant or lawyer too.

Having a clear view on whether the franchise has a huge possibility of helping you earn a profit is important. This said, here are the top ten most profitable franchises in the USA.

All of these ten franchises are representatives of a wide range of big industries, degree of brand recognition, and several locations.

Let’s jump straight into it;

1. McDonald’s

There is something very special associated with brand recognition and McDonald’s is a brand that that is well recognized. Buying a McDonald’s franchise regardless of your location in the USA guarantees you a customer base which is a key thing in helping you earn a profit.

This said, however, it is worth noting that buying a McDonald’s franchise requires a huge initial investment hence blocking someone who has limited access to franchise funding.

However, we must acknowledge that buying a McDonald’s franchise will certainly be a profitable venture. This is a big company that has branches in very many regions and the customer base is amazing.

Potential franchisees are required to have access to at least half a million dollars in liquid assets to have their application considered.

You should also be ready to put down at least 25% in cash which will be a down payment to help you secure your McDonald’s franchise location. So basically here is a breakdown of it.

  • Initial franchise fee: $45,000
  • The estimated initial investment: $1 million to $2.2 million

2. Dunkin’

The Dunkin’ franchises do also enjoy huge brand recognition. This is specifically true in the Northeast, where the doughnut shop is beloved and considered as something of a cultural institution.

Just like McDonald’s, the Dunkin’ franchise has a really good support system and huge customer base.

Buying a Dunkin’ franchise will also require a huge investment. The bare minimum amount for your application to be considered is to have a liquid asset amounting to $250,000 and a $500,000 minimum net worth per unit.

These numbers however may vary regarding your location. It is also worth noting that Dunkin’ franchise come at different prices in different regions and therefore entrepreneurs in a certain area can enjoy a reduced minimum amount required for their application to be considered.

Dunkin’ is also famously known for providing some great discounts for those investors who are planning to open startups in different areas and those planning to start hotels in regions under development as well as veterans whose applications are qualified. The breakdown is as follows;

  • Initial franchise fee: $40,000 to $90,000
  • Estimated initial investment: $95,700 to $1.5 million

3. The UPS Store

The UPS Store has been doing very well and is even ranked among the top five on entrepreneur magazine’s franchise list consecutively for the past three years.

This is because the company has a really good reputation, its brand is well recognized and it has a great support system for new franchisees and its training is world-class.

What you should understand is that opening a UPS store franchise will require a significantly less upfront investment as compared to opening a food franchise that has equal name recognition.

The franchise also offers programs and incentives to help ease the burden. The UPS Store has partnered with Guidant Financial which is a small lending institution that offers qualified investors franchise financing.

They do also offer some special financing incentives for people opening UPS stores in rural areas as well as veterans.

All you need to know is that for you be legible for a UPS franchise, you ought to have direct access to about sixty grand in liquid assets. Here is what is required for an investor to buy this franchise;

  • Initial franchise fee: $9,950 to $29,950
  • Estimated initial investment: $138,433 to $470,031

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4. Dream vacations

If you are an investor interested in owning a travel agency, buying a Dream Vacations franchise can be a great way. This is the most profitable franchise due to its low-cost investment.

This will depend on your experience level, the initial franchise fee can be as low as five hundred dollars.

The franchise provides financial incentives for some other franchisees as well which include military spouses, war veterans, community heroes like teachers and medical practitioners as well as members of DiversityFran.

This is an ideal opportunity for people who would like to work from home. Dream Vacations franchise does not require you to be physically at a certain place which means you can run your business remotely. Here is the breakdown;

  • Initial franchise fee: depending on the experience, you will need to invest an amount ranging from $495 to $9,800
  • Estimated initial investment: You need to invest an amount ranging from $1,795 to $20,300

5. The Maids

This is a company that has been in existence for over four decades as a franchise and they have an incredible support system.

The company states that it makes an average amount of $1.1 million in annual revenue and their most successful franchise raked a handsome amount of $6.5 million in one year.

Additionally, the first charge on the franchise and the cost of other startups are a bit lower in comparison to other available options.

The ultimate total initial investment ranges under $200,000. This said though, you can expect to spend a sum ranging around two grand in your maiden year owning a Maids franchise. Here is the breakdown;

  • The initial franchise fee is around $12,500
  • The estimated initial investment ranges between $48,950 up to $124,950

6. Anytime Fitness

Just like the name implies, Anytime Fitness is a business that offers its services 24 hours a day throughout the year.

The availability of their services makes this business ideal for many people and thus attracts a huge customer base. It can maximize its operations in every location and thus can bring more revenue.

The company acknowledges that it can sign a new member almost every minute and this is clear from its growing market base.

An interesting thing is that Anytime Fitness usually does not collect monthly based fees on the sales total but rather requires one to pay a flat monthly fee of $699 and this normally makes the ongoing cost quite easy to plan for. Here is the breakdown of the Anytime Fitness Franchise;

  • The initial franchise fee ranges between $3,150 to $42,500
  • The estimated initial investment ranges from $58,870 to $521,437

7. Pearle Vision

This company has been in existence for around six decades. It was a great revolution in the eye care industry by simply bringing the retail and medical experience under one roof. This is a business model that continues to be successful to date.

They are currently owned by Luxoticca which is by far the largest eyewear company in the world. This means that investors a great opportunity to reach customers far and wide.

This is what makes Pearle Vision a great opportunity that has the capacity of generating revenue at a great rate.

To be precise, in the year 2018, Pearle Vision locations that had hired or employed an optometrist were able to make a handsome 1.325 million dollars in revenue and about 1.04 million dollars made through retail.

Here is a breakdown of what is required for an investor to purchase a franchise in Pearle Vision;

  • The initial franchise fee is about thirty thousand dollars
  • The estimated initial investment ranges between $391,795 to $620,538

8. JAN-PRO

This company is the world leader in janitorial services and commercial cleaning and has been in this industry for over twenty-five years. They are therefore experienced and have some awesome innovative ideas for cleaning property with state of art equipment.

Besides, JAN-PRO offers potential franchisees three incredible options which are appropriate for varying levels of experience and do also require different investment levels.

Another thing about this company is that they offer a remote franchise opportunity that is flexible for people who are unable to work away from their homes and its cost is relatively low. Here is a breakdown of what is required while buying a JAN-PRO franchise;

  • The initial franchise fee ranges between a thousand dollars to twenty thousand dollars and this will depend on the type of franchise you want to buy.
  • The estimated initial investment ranges between a thousand dollars to seven hundred and sixty-eight dollars respectively.

9. Supercuts

This is one of the most popularly known salon franchises in the world largely because it has been around for more than four decades.

This company is in more than 2,600 locations which is an incredible statistic. More to offering Supercuts and haircuts, franchisees can take advantage of its diverse income streams to optimize their profitability in things like salon services and selling hair care products.

Those interested in buying a franchise do not have to boast any kind of experience in the salon industry.

However, having some management skilled will do you good. You however need to have a total net worth of half a million dollars and a hundred and fifty thousand dollars in liquid assets. You also need to have good credit history for your application to be considered.

Though Supercuts doesn’t provide any kind of financial assistance themselves, they will conveniently link you up with institutions that finance individuals who want to invest in the franchise and help you get a loan that will help you.

Here is a little breakdown of what you need to have to be able to invest in a Supercuts franchise;

  • The initial franchise fee is around $39,500
  • The estimated initial investment ranges between $151,370 to $321,020

10. Ace Hardware

This business offers potential investors three incredible franchise opportunities. They give you the chance of opening an Ace Hardware Grocery, converting a specific location into an Ace Hardware, or simply open a new Ace Hardware.

All these options will help you open utilize a space that was initially left unused with a hardware store.

An incredible thing about buying an Ace Hardware franchise is that they have a waiver of the primary fee for all these options. It spares the first fee to a specific group of people such as veterans.

With this in mind, building spaces into hardware from scratch and converting other spaces can be incredible profits.

The company’s reputation all over the country helps a lot in ensuring consistent customer influx which results in revenue generation. Here is what you need to keep in mind when intending to buy an Ace Hardware franchise;

  • The initial franchise fee is five thousand dollars
  • The estimated initial investment ranges between $286,000 to 1.07 million dollars

Just like discussed earlier, determining the most profitable franchise requires intensive research.

In addition to analyzing a potential franchisor’s FDD within the franchise agreement with your accountant or lawyer’s help, you should also speak with different franchisees and make an informed decision.