The Best Franchise Opportunities to Buy and Own in 2024

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As a business owner, I know how daunting it is to start from scratch and build up a customer base and brand awareness. A great way to start a new business with more support is with franchise opportunities.

I like that you're not beginning at zero with a franchise. Instead, you're working with a brand that's already worked out best practices and built a reputation customers trust.

In this article, I'll cover what franchises are, what to look for when evaluating opportunities, and the best franchises to own.

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If you're like me and like to stop for a cup of coffee before work, you've likely been to a franchise. Many recognizable brands with multiple locations are franchises. For example, McDonald's and Dunkin' have been franchising locations since 1955 and have thousands of units.

The International Franchise Association estimates there will be 821,000 franchise businesses in the United States in 2024. Restaurant franchises such as Arby's and Taco Bell are the largest category of franchises, followed by retail, which includes brands like 7-Eleven and Ace Hardware.

That said, there's a wide variety of franchise opportunities from service industries, like cleaning services, to seasonal food, like ice cream. Finding success in business ownership starts with learning how to evaluate the opportunities to select the best one for your life and goals.

How to Evaluate a Franchise Opportunity

No franchise is one-size-fits-all. As you explore opportunities, I find it important to consider factors like total investment and minimum net worth requirements, geographic locations, and the level of ongoing support each franchisor provides.

Here are the top items I recommend considering when looking for the right franchise for you. Much of this information can be found in the franchise disclosure documents.

Franchise Fees and Initial Investment Costs

Every franchisor requires an upfront franchise fee to license their brand name, ranging from hundreds to thousands of dollars. You'll also need a business license, and unless the franchise is turn-key, you may need to invest in building (or leasing) and stocking a location.

If you can't pay the franchise fee out-of-pocket, some franchisors offer financing options.

Pro tip: Invest in professional advice if you don't have a background in finance or economics.

Tim Murphy, CEO of Boomers Parks, has been involved in the franchise industry since 2006. He recommends that "Potential franchisees should review all of the financials involved in any potential franchise relationship, make sure they understand the numbers, and confirm the numbers add up and will work for them."

He adds, "This may require the help of an independent financial advisor, which would be money well spent."

Profitability

In my experience, profitability is one of the most important factors to consider in any business venture. As you compare franchises, I recommend paying attention to ongoing costs like royalties and advertising fees. Expected gross sales alone won't tell you if it is a profitable franchise or not.

You can also research unit growth and the franchisor's finances to get an idea of the profitability of the overall business model.

Pro tip: I recommend asking about new franchisee success rates. Ideally, you want to work with a company that has a proven track record of profitable franchising.

Support Systems for Franchisees

One of the best parts of franchising, in my opinion, is that you don't need to be an expert to start. Many franchisors offer support systems and training programs that get you up to speed on their business so you can be successful.

Dunkin's franchise training, for example, covers a wide variety of topics from operations to marketing, and it can be tailored to fit your experience level. Most franchisors should offer training, but if you work with brands that are newer to franchising, their materials might be limited.

Pro tip: I suggest looking at brands with over a decade of franchising experience to find more comprehensive training and support.

Time Commitment

If I've learned one thing as a business owner, it's that you want to be in it for the long haul. When it comes to franchising, most agreements last for five to 25 years. In other words, you can't operate a store for one year and then leave.

Different franchises require different ongoing time commitments as well. If you want to work full-time elsewhere while building your business, your franchise choices may be limited.

Pro tip: If you are concerned about meeting time commitments, check the agreements to see which franchises are easier to sell.

Available Territories

Franchises often limit locations to avoid too much competition. So, you want to make sure that the ideal locations for a franchise align with where you want to be living and working.

Eric Croak, CFP and president of Croak Capital explains, "The right territory is crucial for the success of any franchise operation. It doesn't make sense to open a franchise too close to another branch of the same franchise or in a location far from potential customers or where demand is low."

Pro tip: Look at franchises that meet existing local needs.

Brand Recognition or Growth

As I said before, brand recognition is one of the biggest benefits of franchising vs. starting from scratch. However, more recognizable brands might have higher upfront costs, while smaller brands can cost less to open.

Making the right choice for you depends on your budget and how much business risk you're willing to accept.

Pro tip: If you want low startup costs, smaller brands can be a great opportunity, but I'd recommend looking at their financials and paying attention to their franchise unit growth.

Type of Business

Finally, consider the type of business and how well it aligns with your goals for running a business and the lifestyle you want. For example, if you want to become a business owner and make a positive change in your community, you need to look beyond whether it is high profit and consider how the product impacts others.

Pro tip: Hao Lam, founder and CEO of Best in Class Education Center says to "Choose a franchise that aligns with your interests and leverages your strengths. Passion and expertise in the industry can significantly impact your success."

For each franchise opportunity, I'll cover:

• Category. The business or industry category for the franchise.
• Franchise fee. The initial up-front franchise fee.
• Initial investment. Initial investment includes expenses like royalty fees, real estate, and inventory costs.
• Liquid cash requirement. The recommended or required liquid cash that potential franchisees should have on hand.
• Financing available. Whether or not financing is available for initial investments.
• Royalty fee. The ongoing cost of running the franchise. Typically a flat monthly fee or a percentage of monthly sales.
• Franchise details. A link to the franchising page for the brand.

1. McDonald's

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• Category: Fast-food
• Franchise fee: $45,000
• Initial investment: $1,314,500 to $2,313,295
• Liquid cash requirement: $500,000 minimum
• Royalty fee: 4.0%
• Financing available: Yes
• Franchise details: McDonald's

McDonald's may be one of the most recognizable franchise opportunities available. It does have a more significant initial investment, but the brand offers top-notch training developed over decades of franchising, runs continuous advertising campaigns, and boasts a huge customer base.

2. 7-Eleven

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• Category: Retail
• Franchise fee: $50,000 to $750,000
• Initial investment: $69,650 to $1,233,900
• Liquid cash requirement: $50,000
• Royalty fee: Varies
• Financing available: Yes. Internal programs offer franchising for up to 65% of the initial franchise fee.
• Franchise details:7-Eleven

Considered the top American convenience store, 7-Eleven offers franchisees a brand with strong recognition and growth opportunities.

One of my favorite things about the franchise program at 7-Eleven is that the brand provides fully stocked stores, so you don't have to worry about finding a building and managing stock initially.

3. Dunkin'

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• Category: Food and drink
• Franchise fee: $40,000 to $90,000
• Initial investment: $526,900 to $1,809,500
• Liquid cash requirement: $500,000
• Royalty fee: 5.9%
• Financing available: Yes
• Franchise details:Dunkin'

America may run on Dunkin', but this brand also has a global presence with more than 13,000 locations in over 40 countries. As a top-rated brand in terms of customer loyalty, Dunkin' is an excellent choice for franchisees.

I particularly like that Dunkin' offers a streamlined ownership process and comprehensive training that includes support from site selection and construction all the way to operations and marketing.

4. The UPS Store

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• Category: Printing and packing
• Franchise fee: $29,950
• Initial investment: $185,306 to $474,193
• Liquid cash requirement: $60,000 minimum
• Royalty fee: 5.0%
• Financing available: Yes
• Franchise details:The UPS Store

The UPS Store has an established strong reputation as a trustworthy and community-minded company. Plus, 85% of the U.S. population lives within 10 miles of a UPS Store.

If you're like me and want your business to make a positive impact on your local community, owning a UPS Store franchise can be a great option because you'll likely be serving local businesses in your area, whether it's packing and shipping products or printing brochures and catalogs.

5. Popeyes

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• Category: Fast-food
• Franchise fee: $50,000
• Initial investment: $383,500 to $3,545,800
• Liquid cash requirement: $500,000 minimum
• Royalty fee: 5.0%
• Financing available: Yes
• Franchise details:Popeyes

Popeyes is consistently one of the top franchises to own in Entrepreneur's Franchise 500 Rankings. It's a well-known fast-food brand with a global presence, strong advertising strategies, and well-developed core philosophies.

6. SONIC Drive-In

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• Category: Fast-food
• Franchise fee: $22,500 to $45,000
• Initial investment: $1,242,200 to $3,537,700
• Liquid cash requirement: $1,000,000 minimum
• Royalty fee: 2.5 to 5.0%
• Financing available: No
• Franchise details: SONIC Drive-In

For more than 65 years, SONIC has led drive-in food. With a menu consumers love, it runs a business based on operational excellence and customer service excellence. In addition to its drive-in locations, SONIC has options for non-traditional franchise units, such as in airports or stadiums.

I also like that the brand's pre-opening training includes resources on "soft" topics like how to hire friendly employees and ensure positive vendor relationships.

7. Great Clips

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• Category: Hair salon
• Franchise fee: $20,000
• Initial investment: $160,000 to $202,000
• Liquid cash requirement: $50,000 minimum
• Royalty fee: 6.0%
• Financing available: Yes, through third-party lenders.
• Franchise details:Great Clips

Great Clips has been franchising for over 35 years, which means the brand has had plenty of time to create an effective training program for franchisees. It's also one of the few options for hair salon franchises.

In addition to providing franchisees with a recognizable brand, I like that Great Clips stays competitive by investing in user-friendly technology like online appointment check-ins and wait time updates that create a better customer experience.

8. Taco Bell

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• Category: Fast-food
• Franchise fee: $25,000 to $45,000
• Initial investment: $575,600 to $3,370,100
• Liquid cash requirement: $750,000 minimum
• Royalty fee: 5.5%
• Financing available: Yes
• Franchise details:Taco Bell

Taco Bell combines the recognition of a brand that's been around for 50 years with strong financial performance and a culture dedicated to forward-thinking. Listed as one of the top ten most innovative companies by Fast Company, it's an excellent choice for franchisees who want a brand that's going to remain competitive.

Taco Bell also offers a proven operating system and a community of more than 350 experienced franchisees who know the business inside and out. I also like that the brand offers international locations for those seeking business opportunities outside the United States.

9. Kumon Math & Reading Centers

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• Category: Children's Education
• Franchise fee: $2,000
• Initial investment: $64,458 to $139,890
• Liquid cash requirement: $70,000 minimum
• Royalty fee: Varies
• Financing available: No, but Kumon will cover up to $37,100 of your business expenses.
• Franchise details: Kumon

Kumon is a strong franchise opportunity to buy because it has low startup costs compared to many options on this list, boasts more than two decades of experience, and has high brand recognition in its industry.

To make it even more affordable, Kumon helps cover certain startup business expenses, making it an excellent option for entrepreneurs looking for lower initial investments.

10. Sport Clips

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• Category: Hair salon
• Franchise fee: $69,500
• Initial investment: $266,300 to $439,500,
• Liquid cash requirement: $200,000 minimum
• Royalty fee: 6.0%
• Financing available: Yes, through third-party lenders.
• Franchise details:Sport Clips

Sport Clips has remained a dominant brand in men's hair for over two decades. Serving over 600,000 clients each week, it's an excellent franchise opportunity for any new business owner. It also offers high-quality training and education that empowers many of its franchisees to become multi-unit owners with more than 10 locations.

11. Anytime Fitness

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• Category: Gym
• Franchise fee: $42,500
• Initial investment: $397,516 to $973,120
• Liquid cash requirement: $225,000 minimum
• Royalty fee: $799 per month per center
• Financing available: Yes, through third-party lenders.
• Franchise details: Anytime Fitness

Anytime Fitness is one of the strongest-performing fitness franchises available. With over 3,000 gyms worldwide and a customer base of almost 3 million members, I also like that Anytime Fitness offers high brand recognition with lower operating costs.

12. Ace Hardware

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• Category: Home improvement
• Franchise fee: $5,000
• Initial investment: $579,000 and up
• Liquid cash requirement: $250,000
• Royalty fee: $0
• Financing available: Yes
• Franchise details: Ace Hardware

Ace Hardware exudes a local feel, which starkly contrasts the big-box home improvement stores like Home Depot and Lowe's. This franchise prides itself on stellar customer service and store-brand products.

One thing I particularly like about them is that they are a retailer-owned cooperative with no ongoing royalty fees.

Low-Cost/Cheap Franchises

Data collected by Franchise Business Review shows the average franchise costs $150,000 to open, which can be out of reach for many. However, there are plenty of established and reliable affordable franchise opportunities at lower entry points.

Here are some of my top choices for franchises with lower initial investment costs.

Cheapest Franchise to Open: Jazzercise

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• Category: Group fitness
• Franchise fee: $1,250
• Initial investment: $3,000 to $33,100
• Liquid cash requirement: $2,980
• Royalty fee: Varies
• Financing available: No
• Franchise details:Jazzercise

In terms of the liquid cash requirement to get started, Jazzercise is the cheapest franchise to open on this list. If you're looking to start an exercise business with a low initial investment, it's an excellent option.

All certified Jazzercise instructors are considered franchisees, but that's not the only option. The company also offers a class owner franchisee program that doesn't require you to become an instructor.

Dream Vacations

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• Category: Travel
• Franchise fee: $495 to $9,800
• Initial investment: $3,245 to $21,850
• Liquid cash requirement: $10,000
• Royalty fee: 1.5 to 3.0%
• Financing available: Yes, through their internal financing system.
• Franchise details: Dream Vacations

As a home-based franchise, Dream Vacations doesn't have building overhead or inventory costs, making it one of the most affordable options for franchisees to open and continue running.

One thing I appreciate about this brand is its internal financing options that help new business owners get started even if they don't have the entire initial investment on hand.

Cruise Planners

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• Category: Travel
• Franchise fee: $10,995
• Initial investment: $2,095 to $22,867
• Liquid cash requirement: $10,995 minimum
• Royalty fee: 1.5 to 3.0%
• Financing available: Yes, through third-party lenders.
• Franchise details: Cruise Planners

Cruise Planners is a travel planning agency that focuses on personalized luxury plans. It's home-based, like Dream Vacations, so you don't need to worry about paying for real estate to open a location.

I particularly like that the company offers lead-generation tools to help you hit the ground running and professional coaching to make the most of your leads.

JAN-PRO

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• Category: Cleaning and maintenance
• Franchise fee: $1,250 to $44,000
• Initial investment: $1,250 to $50,000
• Liquid cash requirement: $3,150
• Royalty fee: 10%
• Financing available: Yes
• Franchise details:JAN-PRO

JAN-PRO is a B2B commercial cleaning and disinfecting services franchise that's been listed by Entrepreneur as the top commercial cleaning franchise for 15 years in a row.

You can choose from types of franchises: international, executive business, and home-based, making it a flexible option with multiple time requirements.

SuperGlass Windshield Repair

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• Category: Vehicle Maintenance Franchise
• Franchise fee: $5,000 to $17,500
• Initial investment: $28,652 to $57,992
• Liquid cash requirement: $15,000
• Royalty fee: 6.0%
• Financing available: No
• Franchise details:SuperGlass Windshield Repair

SuperGlass Windshield Repair specializes in repairing damaged and cracked vehicle windshields. With over 30 years of experience, they have a fine-tuned business plan in place. Plus, SuperGlass offers classroom and on-the-job training.

I love that its mobile option keeps overhead costs low since a physical shop location is not required.

It's the business equivalent of going viral. These companies have caught the public's attention and are growing fast or have the potential for quick growth. They're actively looking for new opportunities because they're still in the initial stages of expanding their reach.

These are prime opportunities for prospective franchisees. You can take advantage of a growing name in the business before more competition steps in.

These are our top picks for the best growing franchises to buy. In this list, we'll take a look at the initial investment, the franchise's growth rate over the past three years, and the number of franchise locations or units.

1. Dave's Hot Chicken

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• Initial investment: $619,800 to $1,963,000
• Three-year growth rate: 236.2%
• Total franchise units: 154

I admit I laughed out loud the first time I saw Dave's logo, but the flavor is no joke. With its bold flavors and streamlined menu, Dave's Hot Chicken has been taking the fast-casual food industry by storm since it debuted in 2017.

Despite its relative youth compared to powerhouse brands like KFC or McDonald's, I'm particularly impressed with the company's strong social media following, which boasts more than 2.3 million followers on TikTok and the highest Instagram followers per restaurant.

2. Crumbl Cookies

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• Initial investment: $367,666 to $1,404,333
• Three-year growth rate:106.4%
• Total franchise units: 876

Also founded in 2017, Crumbl Cookies redefined the sweets experience with a rotating menu of more than 200 flavors of cookies in a signature pink box. The brand has experienced explosive growth, achieving more than $1 billion in sales in 2022 with stores across the U.S. and Canada.

If you're looking for an exciting brand you can grow with and the potential for international franchising opportunities, I'd recommend checking out Crumbl Cookies.

3. Everbowl

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• Initial investment: $133,899 to $451,628
• Three-year growth rate: 41.9%
• Total franchise units: 80

Everbowl is a craft superfood restaurant with a foundation in nutrient-packed açai bowls. The brand is pursuing growth at full speed through new locations and partnerships with Drew Brees, Jayson Tatum, and Gary Vaynerchuck.

Though it's been around for less than 10 years, I like that the brand has taken time to develop a comprehensive training program for franchisees, which includes one to two-week sessions at the corporate HQ.

4. Scooter's Coffee

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• Initial investment: $894,500 to $1,393,000
• Three-year growth rate: 32.64%
• Total franchise units: 651

In my experience, the true story of any business lies in its numbers, and Scooter's Coffee has an impressive narrative. This drive-thru coffee kiosk company is in the top 25% for drive-thru kiosk average unit volume, net profit margin, and EBITDA.

If you want a fast-growing opportunity with a solid financial foundation, Scooter's Coffee is one to explore.

5. Stratus Building Solutions

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• Initial investment: $4,450 to $79,750
• Three-year growth rate: 19.5%
• Total franchise units: 3,641

Stratus Building Solutions has been named by Entrepreneur as the fastest-growing franchise for two consecutive years. This eco-friendly commercial cleaning firm has more than 3,600 units across the U.S. and Canada and continues to grow.

I particularly like that they offer two franchise options catering to small business owners and executives.

6. Corvus Janitorial Systems

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• Initial investment: $9,575 to $34,500
• Three-year growth rate: 15.79%
• Total franchise units: 1,959

Another rising star in the full-service commercial cleaning industry, Corvus Janitorial Systems is ranked as one of the Top Franchises under $50K by Entrepreneur.

Offering one of the lowest startup costs in its industry, I think it's an excellent option for new franchisees who want to work with a growing brand to explore.

7. Jersey Mike's Subs

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• Initial investment: $214,000 to $1,400,000
• Three-year growth rate: 13.65%
• Total franchise units: 2,557

Jersey Mike's is one of the fastest-growing restaurant brands in the U.S. and the second-largest sandwich chain, following Subway.

In addition to a strong record of continued growth, I find it to be one of the more flexible franchisors with traditional, nontraditional, and even part-time-to-owner franchise opportunities.

Why Own a Franchise?

Buying a franchise offers several benefits for anyone who wants to be a small business owner. I find it's a great way to run your own operation while having the support of a recognizable brand. Plus, access to tried and true training programs and business models reduce the overall risk of venturing into business for yourself.

Here are the key benefits I see in taking advantage of franchise opportunities.

1. Franchises are already well-known in their market.

In my experience, one of the biggest challenges of launching a startup is creating enough brand awareness. With a franchise, you don't have to worry about developing a brand identity or perfecting your marketing materials.

Because most franchises have been operating for a few years at minimum, they've generated enough awareness for your first customer to walk in within days of opening your doors. The brand can be recognized immediately.

2. Franchises can offer higher profit margins.

Because franchisors have already established multiple businesses, generated brand awareness, and developed a proven business model, I find that you will have a greater potential for profits than if you were to operate an independent business.

In addition, the break-even point often comes faster with franchises because you can have new customers walking in almost immediately after you open your location.

3. You get the training you need to operate the franchise.

Don't have industry-specific experience? Good news: You don't need any. One thing I love about the franchise model is that franchisors don't expect you to have specific experience in the field.

For instance, if you're considering opening a Dunkin' location, the company doesn't expect you to know everything about coffee, baking, and retail food. Instead, you get help from the brand's years of experience by participating in its training programs as part of the franchise process.

4. Access to in-person support and assistance.

Opening your own business can be daunting without help. Most franchisors have field representatives who visit independently owned locations to ensure operations are progressing smoothly.

Even if the franchisor doesn't offer an in-person visit, you will have a strong support group from your fellow franchisees. I recommend going to networking events (or creating your own) to find new ways to market your location, hire more help, and attract more customers.

5. Franchises offer lower risks.

Franchises are generally lower-risk business ventures because of a large brand backing them. While there's no such thing as guaranteed success in business, the risk of failure with a franchise is much lower than what you face when starting a completely new business from scratch.

If things go awry, you can sell the franchise location to another person. After all, the brand name is still valuable. Just because you aren't happy operating that location doesn't mean another person won't find success with it.

Potential Drawbacks of Owning Franchises

While franchises offer a wide range of advantages, there are some potential downsides to consider before making a decades-long commitment.

1. Franchises can have high upfront costs.

Initial investment costs in a franchise can be pricey. I find these costs can become barriers for many new entrepreneurs if they are buying a well-known and profitable business like Dunkin' or McDonald's. For smaller franchises, you'll still have to shell out thousands upfront.

While buying into a successful franchise comes with many benefits - including a built-in customer base, the initial lump sum needed to get started can be prohibitive.

2. Franchises may come with restrictive guidelines.

Unlike starting your own business from scratch, franchises come with a list of guidelines franchisees must follow. These terms and guidelines can be found in your franchise agreement.

In my experience, it's common for franchisors to dictate decisions such as:

• Pricing.
• Location.
• Products.
• Marketing.
• Equipment.
• Business hours.
• Decor and signage.

These guidelines are meant to create uniformity so that each franchise is the same at every location, but if you want more decision-making power in your business, they can feel restrictive.

3. The franchisor may oversee your business' finances.

In addition to providing guidelines for how the business runs, your franchisor will most likely have some control of your unit's financial dealings. As a franchisee, you want to be prepared to regularly submit financial statements to the franchisor for review and oversight.

4. Franchises often require additional ongoing fees and expenses.

In addition to startup costs, I recommend that franchise owners budget funds for reinvestment in the business and other fees stipulated by the franchisor. These additional costs can come in the form of training fees, royalty fees, or other services like advertising.

While owning a franchise offers important benefits, it does come at a high cost. Read on to learn how you can afford a franchise.

How to Afford Your Franchise

Opening up a new location of a franchise opportunity is costly. You'll need to cover the franchise fee and have thousands of dollars in liquid assets. I also recommend having a savings account and a credit score that's high enough to qualify for loans.

When it comes to funding franchises, the most common options are:

1. Small Business Loans

I find that small business loans are an excellent option for covering your franchise fee and up-front investments. Depending on your financials and your lender, you can qualify for hundreds of thousands of dollars to cover the setup phase.

2. Small business grants

Small business grants are another avenue to consider. However, many grant-issuing authorities look for independent startup owners rather than franchise owners. For that reason, I recommend reading the fine print before pursuing a grant application.

3. Microlending

Microlending is another great funding option I like for franchises. If you don't have enough capital to qualify for bigger loans, you can use a micro-loan. These loans typically amount to less than $50,000 and are best for you if you're planning to open up a location for a low-cost franchise.

Ideally, you would also have other sources of funding, such as investors and friends and family, to cover the up-front franchise costs.

4. Investors

Just as if you were launching your own startup, you can and should look for investors for your new franchise location. You should also distribute equity according to your investors' initial investment.

Before taking this route, I always recommend checking the franchise agreement to ensure you're not violating the terms of the partnership, as some franchisors may not allow you to seek individual investors.

It also may be overly complicated to account for franchise royalties, investor equity, employee payouts, marketing fees, and operational costs when calculating your net profits.

5. Friends and Family

One of your best options for funding is your very own friends and family. I find this option useful when you don't require financing for the full initial investment amount.

Even if your friends and family can only offer $100 each, you'll be much closer to affording your franchise than you were yesterday. In addition, your friends and family can be an excellent source of new business once you open your doors.

6. Look for Franchise Discounts

Many franchisors offer discounts for qualifying individuals, such as U.S. military veterans, first responders, and minority business owners. These programs can offer up to 20% off initial franchise fees.

If you fall into one of these groups, I recommend researching franchisors who have pricing or financing programs tailored to you.

Start Your Entrepreneurship Journey With a Franchise

Owning a franchise is an excellent way to become a business owner with more support and less risk. You get the benefits of working with an established brand name and the perks of running your own operation.

Franchises can be highly worthwhile to own, especially when you create a strong business plan that helps your profits grow. Start your franchise ownership journey off on the right foot with our free franchise startup checklist.

Editor's note: This post was originally published in October 2022 and has been updated for comprehensiveness.

Topics:Franchise

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