Best Franchise Business Ideas – Caution, Read This First!

Best Franchise Business IdeasAre you considering buying a franchise? Do you want to get some of the best franchise business ideas? Buying a franchise business is a major investment. It’s a big commitment of time and money. How long will it take you to make a profit? What is the success rate? Are there other options to starting your own business? We’ll see the answers to all these questions below. There are a few things here that you might definitely want to be aware of before you take the big plunge.

What Are The Initial Startup Costs?  

Let’s look at some of the top ranked franchises and do a little comparing of the startup costs. Listed below are some franchise businesses you might consider owning and their startup costs:Best Franchise Business Ideas

  • 7-11 – Approximate startup cost: $50,000 – $750,000
  • McDonald’s – Approximate startup cost: $1,000,000 – $2,225,000
  • Subway – Approximate startup cost: $120,000 – $263,000
  • Taco Bell – Approximate startup cost: $1,200,000 – $2,600,000
  • Dunkin’ Donuts – Approximate startup cost: $225,000 – $1,700,000
  • Dairy Queen – Approximate startup cost: $360,000 – $1,800,000
  • Hilton Hotels and Resorts – Approximate startup cost: $56,000000 – $97,000,000Best Franchise Business Ideas
  • Days Inn – Approximate startup cost: $170,000 – $7,700,000
  • Super 8 – Approximate startup cost: $125,000 – $4,000,000
  • H&R Block – Approximate startup cost: $31,000 – $150,000
  • The UPS Store – Approximate startup cost: $160.000 – $435,000
  • Merry Maids – Approximate startup cost: $56,000 – $180,000
  • Anytime Fitness – Approximate startup cost: $80,000 – $500,000
  • Massage Envy – Approximate startup cost: $410,000- $950,000
  • Supercuts – Approximate startup cost: $180,000 – $350,000
  • Pearle Vision – Approximate startup cost: $410,000 – $625,000
  • Ace Hardware Corp. – Approximate startup cost: $270,000 – $1,500,000

The startup cost to open a franchise business can be anywhere from $20,000 to $96 million or more! You will also have to pay a percentage of your sales in royalty fees to the franchise. Many franchisees are required to spend a certain amount of dollars on advertising too.

How Long Before I See A Profit?

According to a report on food franchising in North America, half the restaurant’s profits are less than $50,000 a year with the average being $82,000. That’s not too bad, right? But subtract the initial investment and you’re probably not making any money in the first year.

In addition to the startup costs, you should have at least enough cash on hand to cover the business expenses for 6 months and enough to survive for a year with your personal expenses.  

When you will see profits all depends on a number of things. The location of where you start your business has aBest Franchise Business Ideas great factor in it. How much advertising are you going to do? People need to know your in business. Just because you have an “OPEN” sign in the door, doesn’t mean people are going to flock in.

You won’t really get a straight answer out of the franchisor about this question either. They don’t want to promise or quote you anything. You could come back and try to sue them if you weren’t making a profit by the time they said you would. You are taking a big risk.

What Is The Average Success Rate?

Franchise businesses fail at about the same rate as all businesses do. Two-thirds of businesses with employees willBest Franchise Business Ideas last 2 years. Half will survive for 5 years. After that 90% of the franchises will continue to operate.

Imagine that you just get your Subway business going and you’re starting to see some headway. Things are finally starting to look good for you. Then someone has the nerve to open up a Subway business just 2 blocks away! That’s right where all the traffic drives by to get to your Subway so they all stop at the other Subway. It happens, and there is nothing you can do about it.

A Few More Thoughts To Consider

Another thing to consider is not to be late on any of the royalty payments. Do not violate the franchise’s operating procedure either. These could end up in the franchisor terminating your agreement and you would lose your entire initial investment.

You must not get creative with the food or the coloring of the walls or the building. You will have a strict set of rules to go by that the franchisor will set up with you ahead of time.

Let’s say you decide that you want to move on and get out of the franchise and start your own similar business. That’s a big NO, NO! There are restrictions put on you that limit you from business opportunities similar to the franchise for years after your contract expires.

Some franchises will only sell to people who have had prior experience working at the company for a certain amount of years.

Is There A Better Business Opportunity?Best Franchise Business Ideas

Why would you want to go through all that? You can turn your passion into a thriving online business for just a smidgen of the cost. Matter of fact, you can start for FREE!

The FREE Starter Membership gives you 2 FREE Websites and 7 days live help training. After that you can stay a FREE Member or you can upgrade once you’ve tested the waters. Our Premium Membership offers you 50 Websites with unlimited Live Help training. See my Wealthy Affiliate Review for all the details.

Learn from the Experts. You can build your Successful Online Business right from the comfort of your own home. It’s FREE to check it out and there is never any obligation, so why wouldn’t you?

If you have any questions or comments, please leave them in the comments section below, I’d really like to hear from you.

10 thoughts on “Best Franchise Business Ideas – Caution, Read This First!

    1. Hi Asamad,
      Thank you for visiting my site. That is a statistic for North America. If you want the statistics for a different country or area you can let me know and I could research it for you.
      Best of luck to you!

  1. Good day

    I realy want to know where can someone get a loan to buy franchise?I am much interested and i am in Sout Africa can someone help me on that one

    1. Hi Moffat,
      You can try RainFin, FirstRand Bank Limited, ABSA, or Barclays or just Google South African business loans and there are a number of places to try. I wish you the best of luck with your new business. If things don’t work out come back here and join Wealthy Affiliate and you could have a home business.
      Take care,

  2. Hi Norma,

    I knew that franchise is expensive but when I seen those digits I was totally shocked. It takes big risk to get into that type of business and there is no doubt for a minimum investment it is way better to start with affiliate marketing.

    1. Hi Bojana,
      You’re right, you are taking a big risk with buying a franchise. Affiliate marketing makes so much more sense. With Wealthy Affiliate you get all the training to help you get started and show you the way. Thank you for your comment. I wish you the best!

  3. Hi Gina,
    You have done your research. I did not realize that some of those businesses take so much money to start. We must be mindful that after a few years a number of them will file bankruptcy because they did not make a profit. They are all risky you have to do proper research before you start.
    Affiliate Marketing is expensive too, based on some reviews I have done. I think Wealthy Affiliate offers the best package for the best price. Training period can be seen as Start Up investment.
    The training at Wealthy Affiliate is awesome I hope your readers will try the Free Membership.
    Would you say the start-up investment for online business is less than offline?
    Which is more Risk?
    Good Read

    1. Hi Luna,
      The cost to start an online business is far below the cost of a franchise start up cost. With affiliate marketing you don’t have to buy your own products. You sell other peoples products so there is no risk. The fact that you can try Wealthy Affiliate for free makes it that much more of a good reason to check it out. Thank you for stopping by. I wish you the best!

  4. I think franchising is way too expensive in the offline sense. I prefer online business these days as it’s soooo much cheaper to get up and running.

    Affiliate marketing is probably the best way to go for anyone as long as they know it takes time to grow into a full time income and more time to exceed that.

    Do you know Pat Flynn of

    He now makes over $150,000 a month from blogging. He started at the bottom not knowing anything the same as everyone else does. In fact he will often say that it takes about 18 months to really get going, that’s because there’s a lot of bits and pieces of the puzzle to put together. However, they can be put together more easily when you get involved in the right program (I joined Wealthy Affiliate for that)…

    Thanks for a cool read, Gina!

    1. Hi James,
      You’re right franchising has huge startup costs. Affiliate marketing just makes so much more sense. At Wealthy Affiliate, the training and help you get is absolutely amazing. It really helps when you get the proper training to show you the way. Thank you James for stopping by and commenting on my post.
      I wish you the best!

Leave a Reply

Your email address will not be published. Required fields are marked *