Tag: Buying a Franchise

There Is No Such Thing as the “Hottest” Franchise | Entrepreneur
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Opinions expressed by Entrepreneur contributors are their own.
After a decade-plus of advising people about getting started in the franchise industry, my colleagues and I at FranCoach have seen and heard just about everything. One of the questions that we hear a lot from our clients is, “What is the best franchise?” Or sometimes people ask “What is the hottest industry out there?”

Without a doubt, these are the easiest questions we have to answer.

The Myth of the “Best” Franchise

So what is the best franchise?

The answer is incredibly simple: There is not one. There is not one best franchise. There is not one best or hottest industry. It is truly that simple.

If anybody tells you differently, they are either lying to you or they do not know what the heck they are talking about.

You might be thinking, how is that possible? There has to be a “best” franchise and a “hottest” industry.

Well, there is not — and I will explain why. There are a few different bits of information that go into the reasoning here, but first off, franchising is an incredibly individualized and personalized process.

What is best for you is not what is best for the next person or the person. Here’s the analogy I often use:

My wife’s friends or family might ask her, “Why in the holy hell did you marry that old bald dude?” It’s probably a valid point, but for whatever reason, I was her person, her match. The same concept applies to franchises. Sometimes, the old bald dude is really the best fit for people. And for the next person, the best fit will be totally different.

In other words, beauty is in the eye of the beholder.

Related: How to Franchise a Business in 7 Steps

How to Find the Right Franchise Match

When it comes to the franchising industry, there are a few important points to understand.

If you combine every franchise out there, the industry is valued at over $800 billion – yes, billion, with a B. There are over 800,000 franchise units in the country, and they employ over 9 million people. This is a massive industry.

Within that, there are many different industries and niches. For example, at FranCoach, we work with over 600 franchises and about 70 industries.

Related: See the 2024 Franchise 500 Rankings

Every one of those niche industries is going to throw shiny buzzwords and stats at you. This industry is booming, this one is recession-proof, and that one is essential. That one over there is up-and-coming, this other one is trendy… you get the idea.

But ultimately, none of that matters. What matters is YOU. What is the best thing for YOU?

The Get Out of Bed Test

We talk a lot about the Get Out of Bed Test. What does that mean? It means that you are the one who is going to be the franchise owner. You are the one that has to get your butt out of bed and go run this business every day.

With the Get Out of Bed Test comes a series of questions you will want to ask yourself:
- What are you good at?
- What do you enjoy doing?
- Who are the people that you want to be around? Think about your staff, if you have one, and the customers in your community.
- What are the core values of the business?
- What is it that you want to do every single day?
Your answers to those questions are what matters. At the end of the day, franchisors are not looking for industry experts. They are looking for people who will run their business. So instead of looking at a certain industry or a certain brand, trying to figure out what is the “hottest” or the “best,” you want to think about what is best for YOU.

Related: All the Costs to Consider Before Buying a Franchise

As you think about your answers to the questions above, a whole world of possibilities begins to open. It can be a little bit overwhelming to consider all of the franchise options out there — remember, this is an $800 billion industry. There are over 4,000 franchise brands in the U.S. alone, not even considering brands located internationally.

In other words, it is a lot to sift through. So what do you do? How do you find the right fit?

Finding the Right Fit

That’s where the FranCoach team comes in. What our team does is not hunt for the best or the hottest franchise — instead, we get to know you. Everything revolves around you: What are you good at? What do you want to do?

Once we understand your answers to those questions, we start to build from scratch what you are looking for, what you are good at, and what you do not want to do. What are the core elements of the right business for YOU?

We know the differences between all of the 4,000 franchises out there — we have seen behind the curtain. We know what each one is all about, so we can hunt down what is going to be the best thing for you. The hottest thing for you is going to ultimately be your match.

Success in franchise ownership is really simple. It boils down to two steps:
1. Follow the plan.
2. Put forth the required effort.
Pretty darn simple, right? So what is the trick? The trick is finding the absolute best franchise for YOU.

Think about it like this: You are terrible at sales, you hate people, and you never want to talk to anybody. Then you start a franchise because somebody tells you how good it is or how hot it is. But it turns out that you have to sell and be the face of the business to succeed.

Related: Yes, You Can Buy a Franchise In a Bad Economy

Well, guess what? It is not going to go very well. That is a terrible match. It does not mean that is a bad franchise. It does not mean you should not own a franchise. It means it is a bad match.

There is no “best.” There is no “hottest” for everybody. What matters is YOU and finding the best franchise for your skills, needs, and goals.

Work With the FranCoach Team Today

If you are ready to learn more about franchise ownership, you are in the right place. Here at FranCoach, we work with our clients to help them find the absolute best franchise for them.

Related: Is Owning a Franchise the Best Move?

Our number one goal is to properly educate you about franchise ownership. We want to help you determine if franchise ownership is the right path for you — and if so, we will guide and support you through the process of finding your perfect match.

And the best part? Our services are 100% free, 100% of the time – seriously. Reach out to us today to learn more about becoming a franchise owner. You have read this far… so why not take the first step today toward your better tomorrow?
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Tim Parmeter

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March 12, 2024
The 19 Covenants of a Standard Franchise Agreement | Entrepreneur

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Opinions expressed by Entrepreneur contributors are their own.

The following excerpt is from Rick Grossman’s book Franchise Bible. Buy it now from Amazon | Barnes & Noble | iTunes | IndieBound

The franchise agreement is the contract between the franchisor and franchisee, but it’s not a “standard” or “form” agreement. The format of the contract differs from one franchise system to another.

While each franchise agreement will differ in style, language and content, all franchise agreements have covenants, each of which describes a promise, right or duty that the franchisee or franchisor owes to the other or that benefits the franchisor or franchisee. The following is a list of those covenants that one most often sees in a typical franchise agreement. (The franchise agreement on our companion website will have the specific language that addresses each covenant.)

Related: Considering franchise ownership? Get started now and take this quiz to find your personalized list of franchises that match your lifestyle, interests and budget.

1. Grant of franchise

The “Grant” section lets franchisees know that the franchisor is granting them the limited, non-transferable, non-exclusive right to use the franchisor’s trademarks, logos, services marks (called generally the Marks) and the franchisor’s system of operation (often called the System) for the period of time defined by the franchise agreement. The franchisee receives no ownership rights to the Marks or the System, and the franchisor always retains the right to terminate the franchisee’s grant-of-license because of a breach of the franchise agreement.

2. Opening date, territory limitations, build-out and similar rights

This covenant describes the franchisee’s territory (be it exclusive or not) and sets up a time schedule by which the franchisee must find a brick-and-mortar location, must have the plans for the unit approved and must be built-out and opened. This section may also disclose other matters such as the computer equipment needed to operate the business and the like.

Related: The 23 Items That Make Up the Heart and Soul of the Franchise Disclosure Document

3. Fees and required purchases

This section will disclose the fees more specifically described elsewhere in the agreement. The fees include the initial franchise fee, any fees paid to the franchisor prior to opening, any fees paid to the franchisor during the term of the franchise, all advertising fee obligations and the like.

4. Advertising

In this section, the franchisor should repeat the franchisee’s advertising obligations as they’re stated in Item 11 of the franchise agreement (and the fees for which are identified in Items 5, 6, 7, 8 and 11 — as applicable).

5. Term and renewal

This covenant spells out the term (length of time) of the franchise agreement measured from the date the franchise agreement is signed to the date that the franchise agreement expires. If renewal rights are granted, this section will also spell out the prerequisites of this arrangement.

6. Services offered by franchisor

Though not all franchisors will repeat the pre-opening and post-opening services that they offer the franchisee in the franchise disclosure documents, sound drafting principals will require that these matters be repeated in the franchise agreement. Including them in the franchise agreement, however, removes the specter of litigation as a way to insert rights into the contract that aren’t otherwise stated.

7. Protection of proprietary information, marks and other intellectual property

As discussed in the “Grant of Franchise” section earlier, the franchisor is granting only a temporary license to the franchisee. Most franchisors will enforce this understanding by adding specific language that identifies each item that makes up its proprietary, confidential and trade-secret information and by then stating the limitations that are placed on the franchisee’s right to use such information. It is important protection for the franchisor and is not usually a covenant missing from the franchise agreement.

Related: When Evaluating a Franchise, Ask These Questions

8. Training

This section should disclose any training offered by the franchisor, including any additional training, seminars, meetings or the like that the franchisor will either require or urge the franchisee to attend.

9. Quality control

As the name suggests, franchisors will address the franchisee’s specific quality-control requirements. This is sound franchising and is necessary to insure that the goods and services offered throughout the system meet the franchisor’s minimum requirements.

10. Transfers

Virtually all franchise agreements control the franchisee’s right to transfer their interest in the franchise relationship. This section will list the prerequisites to a transfer.

Related: The Anatomy Of A Franchise Disclosure Document

11. Defaults, damages and complaint limitations

All franchise agreements will contain some recitation of the violations of the franchise agreement that will be treated as a breach. These violations may be divided into those breaches that result in the immediate termination of the franchise agreement, for which no cure is given, and those violations for which cure is provided.

12. Obligations upon expiration or termination

Once the franchise relationship has ended — either because the term has naturally concluded and no renewal has occurred, or because the franchise agreement was terminated — it is typical for the contract to list a series of steps that the franchisee must take to “de-identify” the business and the franchisee’s association with the franchise system.

13. Franchisor’s right of first refusal

Most franchise agreements give the franchisor the option, but not the obligation, to exercise a first right refusal to purchase the franchisee’s business — in the case where the franchisee seeks to transfer the business, or the first right to purchase the franchisee’s assets at the time that the franchise agreement expires or is terminated.

14. Relationship between the parties

Franchisees are always treated as independent contractors of the franchisor. This has several important implications. An independent contractor is not an employee or agent of the principal. Instead, the independent contractor is in business for themselves. The parties to this relationship pay their own taxes, hire on their own, are responsible for their own employees and generally operate independently of the other in carrying out the contract between them.

Related: How Franchisees and Franchisors Can Master Their Relationship

15. Indemnification

All franchisee agreements will contain an indemnification covenant, which means that the franchisee will reimburse the franchisor for any losses it suffers as a result of some negligent act or wrongdoing of the franchisee. These covenants are almost always one-sided in favor of the franchisor — which is fair, given that the franchisee and not the franchisor is responsible for the day-to-day operation and maintenance of the business.

16. Non-Competition covenant and similar restrictions

A non-competition covenant is one that seeks to prevent the franchisee from opening a business that would compete with the franchised business. Virtually all franchise agreements will have non-competition covenants. The covenant is often broken into two parts: the “in-term” covenant; and the “post-term” covenant.

As the name suggests, the in-term covenant prevents the franchisee from competing against the franchisor and any other franchisees while the franchise agreement is in force. Typically, this covenant covers a geographic area around each franchised, company-owned and affiliate-owned business. The post-term covenant covers the former franchisee after the franchise agreement expires or is earlier terminated because of an uncured breach.

Related: The 5 Items in Your Franchise Disclosure Document That Can Make or Break a Real Estate Deal

17. Dispute resolution

This covenant spells out the methods the franchisor uses to resolve disputes with franchisees.

Most often one will see at least a nonbinding-mediation requirement followed by a binding-arbitration requirement. In other cases, these two methods of resolution will be preceded by the requirement that the parties first meet face-to-face.

18. Insurance

All franchise agreements will require the franchisee to obtain insurance to cover its business operations. In all cases, each of the franchisee’s insurance policies will require that the franchisor be named as an “additional insured,” meaning that the franchisor enjoys the same coverage as does the franchisee, even though the franchisor is not paying for the coverage.

19. Additional or “miscellaneous” provisions

This is kind of the catch-all section of the franchise agreement that contains what some call “boilerplate” language, meaning that it is “usual” that such language be included in any contract. In virtually all franchise agreements, you’ll see covenants that cover mergers, modifications or amendments, non-waiver provisions, state-specific addenda and more.

Related: 8 Steps to Finding the Right Franchise

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Rick Grossmann

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March 29, 2023
5 Items in Your FDD That Can Make or Break a Real Estate Deal | Entrepreneur
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Opinions expressed by Entrepreneur contributors are their own.
A Franchise Disclosure Document (FDD) provides information about the franchisor, the franchise system and the franchise agreement terms. This legal document must be provided to potential franchisees by the franchisor and read back and forth by potential franchisees — it is recommended that a potential franchisee have a franchise attorney review.

The FDD helps potential franchisees make informed decisions about investing in the franchise. Therefore, all items in the FDD are essential. That said, here’s my list of the sections in the FDD that can make or break getting to lease your desired real estate space.

Related: 7 Things Not to Miss in the FDD

Item 1: Business experience

This section provides information about the franchisor’s key executives, including their business experience and any bankruptcy or litigation history litigation. Most landlords will ask you for details on not only your background but the franchisors as well. So make sure the franchise you purchase has a good story.

Also, ask to see the franchisor’s marketing materials prepared for landlords. These materials should contain the company’s success stories, details on the current state of the brand, and information on the growth plans of the brand.

Additional information should include the following:
- Specifics on existing locations.
- High-quality images of existing locations.
- High-quality images of product or food photography
Related: ‘My Brain Is Literally Going To Explode’: Viral Video Sparks Debate Over Whether or Not Renters Should Tip Landlords

Item 7: Estimate initial investment

Item 7 covers what the franchisor believes will be your estimated initial investment. This item will be relevant to a landlord since they want to know how much money you will spend on your build-out. Once you share that number, the landlord will want proof of funds.

If the money comes from your savings, your bank account statements will be proof of funds. If the money comes from a loan, you must show at least a pre-approval letter from your bank.

Item 12: Territory

This section provides information about the territory where the franchisee will be allowed to operate the franchise. Some franchisees are particular on territory, while others are not. Having a defined territory is excellent since you have protection and the right to open where others can’t.

If you don’t have a defined territory, it can be advantageous since you have a larger pool of real estate to search for your location. However, this often means you might compete with other franchisees for the same sites.

Related: The 23 Items Your Franchise Disclosure Document Must Include

Item 17: Initial franchise term, renewal, termination, transfer and dispute resolution.

Many essential elements can be found in Item 17, but I will focus on franchise length and renewal. Regarding the length of your initial franchise, you must pay close attention to ensure your lease mirrors the time you have confirmed rights to the franchise. Signing a lease longer than you control the franchise will be precarious. Remember that your initial franchise period needs to be considered when factoring in your total investment costs. For example, if your total build-out costs are $750,000 and the franchise will only give you the rights for five years, purchasing the franchise may not make sense. You will also want to ensure you have renewal options for the franchise and are comfortable with the renewal options.

Related: How Your Business Can Be Its Own Landlord

Item 19: Financial performance representation

This section is optional, meaning franchisors are not required to provide financial performance information in the FDD. However, if a franchisor chooses to provide financial performance information, they must follow specific guidelines set forth by the Federal Trade Commission (FTC).

The purpose of Item 19 is to help potential franchisees evaluate the potential financial benefits and risks of investing in the franchise system. Suppose a franchisor chooses to include financial performance information in Item 19. In that case, it must provide specific details about the performance of its franchisees, including any average or median sales figures, expenses, profits, or other financial metrics. It’s important to note that the financial performance information provided under Item 19 must be based on actual data from the franchisor’s franchisees. The franchisor must also clearly explain how the data was collected and any assumptions or limitations that may apply to the data.

Related: 23 Questions to Ask a Franchisor When You Meet Face to Face

Because Item 19 is optional, it’s not included in every FDD. However, if financial performance information is provided, it can be a valuable tool for potential franchisees in evaluating the possible return on investment and profitability of the franchise system. Many landlords will ask you to provide details on the average sales of the franchise.

These sales help the landlord decide to lease to your franchise brand. On a side note, it is also important to understand that these sales also help the landlord know what type of rent you could pay. Thus I recommend you keep this information to yourself unless you feel it will help the landlord’s decision on picking your brand.

When purchasing a franchise, remember that once you buy the franchise, you must sell the franchise concept to potential landlords. Most landlords think about a use for their center just as much as they factor in terms of the deal. Therefore, if your franchise has a use that landlords do not favor, or it is a brand actively closing stores, it might be difficult for you to secure a real estate location of your choosing.
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Roxanne Klein

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March 17, 2023
Considering Becoming a Multi-Unit Franchise Operator of a New Brand? Here’s What You Should Know First.
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Opinions expressed by Entrepreneur contributors are their own.
Multi-unit operators (MUOs) in the U.S. own more than 50% of franchise units. According to FRANdata, the number of MUO franchisees with more than 50 units has grown 112.3% since 2019. Some sectors skew higher. MUOs control 82% of all quick-service restaurant (QSR) units, 71.5% of beauty-related and 72% of sit-down restaurants in the U.S.

Some of this is natural consolidation of existing units due to retirements, and some is due to new multi-unit agreements. Many articles have been written about building wealth in franchising via multi-unit ownership. Should you consider it?

Related: 4 Reasons to Become a Multi-Unit Franchise Owner

Should you consider becoming a multi-unit operator?

Let’s break this into two discussions: resales (which I will address in my next article) and new development multi-packs. Selling new multi-pack licenses is becoming increasingly common in franchising. The reasons are simple:
1. Multi-packs generate more cash for the parent company.
2. They demonstrate “demand,” which franchisors hope will attract private equity.
3. Fewer franchisees are less costly to support.
4. Only higher net worth buyers qualify
5. Buyers themselves demand multi-pack buying opportunities because it’s easier to build operating scale and profitability.
Multi-packs can be as small as two to three units and as large as 50-100 units or more to sell out entire large territories or states. Note that the sale of “multi-packs” is distinct from the sale of area development agreements or master licenses, which have different performance requirements.

The competition to attract franchisee talent is fierce and expensive. High-commission outsourced sales channels, marketing and expensive lead generation eat up franchise fees. Under-capitalized young brands are at a distinct disadvantage. Royalty self-sufficiency (when a brand can fund corporate activities through royalties) is pushed out as franchisee recruiting costs rise.

Traditionally, franchisors limited the number of licenses a new franchisee could sign until they proved themselves as an operator (or had existing MUO experience). Once inside, limits were also put on expansion licenses to ensure only proven operators in good standing with the franchisor were allowed to add territories. But more emerging brands now skip the initial step and jump right to selling multi-packs.

Besides trying to sell their way onto private equity’s radar, this is how some young brands get around the “starvation by high commission” problem in a high-cost sales environment. It seems nonsensical to me that anyone would agree to buy a 10+ pack of licenses from a brand with only 10 total units open. But buyers are doing exactly that. Some brands even sell with messages about how they only accept “executive” buyers who don’t need financing. This is meant to partly flatter buyers but can also signal that there isn’t enough margin in the business to allow any financing!

There shouldn’t be pressure to buy so much upfront from an emerging brand. There’s little chance your home market will suddenly “sell out.” But aggressive salespeople sometimes convince buyers otherwise (“We have ten units, all in Florida. Where are you calling from? Indianapolis? It just so happens we have another candidate ready to sign for that market!”). Furthermore, candidates may be rushed through a 30-day buying process (“Don’t wait! Territories are selling fast!”).

Related: 5 Encouraging Facts to Know About Multi-Unit Franchising

Case study

Here is a case study to consider. This is an emerging franchise currently sold by an outsourced franchise sales organization (FSO). I’m not including names because I want you to take away the signals of a potential problem brewing … not get hung up about a specific brand.

The company’s Franchise Disclosure Document: Item 19 earnings disclosure for 2020 included the financials of only one corporate unit. Three franchise units had been sold but were not yet open, so no financials for those franchise units were included. The company showed a net loss of $92,000 in 2020 and had only $43,000 in cash. Mid-year in 2021 the company had nearly $26,000 of credit card debt. The company paid $363,000 in franchise sales commission. There were also $753,000 of “uncategorized expenses,” a whopping 62% of total corporate expenses reported. Based on the “strength” of this FDD disclosure, the company hired an FSO to help it start selling franchises. And sell it did! As the FSO proudly asserts on its own website, “from 3 to 320 awarded!”

The current 2022 FDD shows $9M 2021 income, of which $8.8M was franchise fees. But 6.1M immediately went out the door in sales commissions paid. Credit card debt was $32,000. The Item 20 showed 50 units open and another 49 in development. Training expenses were $15,000. I pay more than that for my kid’s school tuition! What sort of training was provided for the 50 units open that only cost $15k? And what happened to the “320 awarded?” Some multi-pack opportunities are worthwhile, but to me, this emerging brand has red flags.

Here’s my advice on new multi-pack agreements:
1. Start small — three or fewer units. Unless you have franchise experience and the system is proven, you’re burning cash on fees for units you may never open. You can add expansion territories later. Have your attorney carefully review territory, site approval and encroachment contract language.
2. Validate! Talk to as many franchisees as possible. Are they meeting their profit objectives? Did all their units open?
3. “Territories” sold by population size require extra due diligence. It’s often a crafty way to upsell you and get you to pay more in fees instead of crafting viable territories of the appropriate size in the first place. If the territory is not exclusive, you have double trouble. Population number also doesn’t address demographics or density. Talk to franchisees at length about what makes their territories and the model financially viable. Determine cash on cash return for your investment. Is it worth it?
4. Slow down. Do your homework. If you see red flags, don’t talk yourself into anything. Move on. The right franchise opportunity is out there.
Related: Considering franchise ownership? Get started now and take this quiz to find your personalized list of franchises that match your lifestyle, interests and budget.
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Alicia Miller

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February 13, 2023
Top 15 Home-Based and Mobile Franchises 2023

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Franchising doesn’t have to be far from home, with some concepts allowing for completely remote operations. Many home-based and mobile franchises allow for “absentee ownership,” meaning the franchisee is not required to be on-site or involved in the day-to-day operations of the business. For entrepreneurs looking to start a side business or make a career change that allows for flexibility, home-based and mobile franchises might be the ideal route for both success and convenience. From food trucks to at-home travel agencies, these are the top 15 franchises that are mobile or home-based from our 44th Annual Franchise 500 List.

Related: Considering franchise ownership? Get started now and take this quiz to find your personalized list of franchises that match your lifestyle, interests and budget.

Home improvement

Budget Blinds sells window coverings from shades to wood blinds to shutters and more. The company allows homeowners to remodel their windows at an affordable price. Budget Blinds also offers at-home shopping for other household accessories such as rugs, pillows, bedding and more.

Initial franchise fee: $19,950

Initial investment: $140,500 – $211,750

Number of units: 1,378

Number of employees required to run: 1-3

Absentee ownership allowed: Yes

Retail

Recognized by Franchise Business Review as a “recession-proof” franchise, Snap-on Tools is the leading tool brand in the world and a top professional tool franchise. The concept manufactures and markets high-end tools and equipment for professionals. Snap-on Tools has more than 58,000 products and operates in more than 130 countries.

Initial franchise fee: $8,000 – $16,000

Initial investment: $175,146 – $411,941

Number of units: 4,771

Number of employees required to run: 1

Absentee ownership allowed: No

Related: Are You an Ideal Franchisee? Here’s How to Find Out.

Residential cleaning

The Maids offers at-home cleaning services for those who want to enjoy a tidy household but cannot find the time to do so themselves. With more than 40 years of experience in the cleaning industry, The Maids has perfected the art of cleaning and sets franchisees up for success.

Initial franchise fee: $0

Initial investment: $57,500 – $155,900

Number of units: 1,589

Number of employees required to run: 20

Absentee ownership allowed: Yes

Retail

Matco Tools manufactures and distributes automotive repair tools, diagnostics and toolboxes with a product line of more than 25,000 items. You might need to lease or purchase a truck to operate the business, but that becomes the hub to run the operation.

Initial franchise fee: $8,000

Initial investment: $76,819 – $309,133

Number of units: 1,919

Number of employees required to run: N/A

Absentee ownership allowed: No

Commercial cleaning

Jan-Pro Cleaning and Disinfecting specializes in commercial cleaning in places like daycares, dealerships, offices, schools and healthcare facilities. Jan-Pro Cleaning and Disinfecting has become a leading franchise in the commercial cleaning sector through efficient processes, support systems and excellent customer service.

Initial franchise fee: $2,520-$44,000

Initial investment: $4,830 – $58,070

Number of units: 10,418

Number of employees required to run: 1

Absentee ownership allowed: No

Related: 7 Things You Need to Know Before Becoming a Franchise Owner

Environmentally friendly commercial cleaning and disinfecting

Stratus Building Solutions provides commercial cleaning services that are environmentally friendly, relying on the latest janitorial technologies, such as UVC light and HEPA filters. The company only uses green seal-certified cleaning products.

Initial franchise fee: $3,600-$69,000

Initial investment: $4,450-$79,750

Number of units: 2,900

Number of employees required to run: N/A

Absentee ownership allowed: No

Commercial cleaning

Anago Cleaning Systems provides deep cleaning from disinfection to sanitization. Anago Cleaning Systems also offers a selection of three different franchising packages: the master franchisee, unit franchisee and cleaning contract package.

Initial franchise fee: $5,015-$31,000

Initial investment: $11,265-$68,250

Number of units: 1,791

Number of employees required to run: 1-2

Absentee ownership allowed: Yes

Related: 5 Great Ways to Research Franchise Businesses

Food

The beloved shaved-ice truck has ranked #1 in franchisee satisfaction by Franchise Business Review nine years in a row. The company provides delicious shaved ice for any occasion as well as parties, events, fundraisers and more.

Initial franchise fee: $15,000

Initial investment: $149,995 – $189,300

Number of units: 1,480

Number of employees required to run: N/A

Absentee ownership allowed: No

Food

This nationwide franchise offers flexibility regarding ownership, allowing franchisees to choose from a variety of options for their Cinnabon location ranging from a co-brand store, kiosk or a co-brand kiosk.

Initial franchise fee: $5,500 – $30,500

Initial investment: $112,000 – $546,800

Number of units: 1,807

Number of employees required to run: N/A

Absentee ownership allowed: No

Related: Owning a Franchise Could Be Your Fastest Route to Business Ownership. Here’s What You Need to Know to Succeed.

Maintenance

Monster Tree Service is a work-from-home franchise that offers tree removal, land clearing, hazardous tree assessment, dead wooding, plant health care and more. The company also provides services for cleaning up after a storm and assists clients with insurance claims. While not required, an ideal franchisee should love being outside.

Initial franchise fee: $49,500

Initial investment: $422,166 – $568,358

Number of units: 253

Number of employees required to run: N/A

Absentee ownership allowed: Yes

Services, Real estate

HomeVestors of America offers a fast and easy way to sell a house or unwanted property for cash. As America’s no. 1 cash buyer, the company has perfected the art of efficient and smooth sales for selling and buying. Prior real estate experience is not required to be a HomeVestors franchisee, as the franchise provides extensive coaching and training as part of the program.

Initial franchise fee: $39,000 – $80,000

Initial investment: $80,000 – $456,250

Number of units: 1,155

Number of employees required to run: 1

Absentee ownership allowed: No

Travel agencies

As a Dream Vacations franchisee, you can assist in helping others plan their perfect getaway — all from the comfort of your own home. This franchise allows you to start a home-based travel agency, where you can be an expert in anything from cruises and luxury resorts to weddings and honeymoons. Dream Vacations offers extensive support and training to help franchisees kickstart their business.

Initial franchise fee: $495-$10,500

Initial investment: $1,795-$21,000

Number of units: 1,618

Number of employees required to run: 1

Absentee ownership allowed: No

Related: How I Turned a Side Hustle into a Million-Dollar Travel Business

Retail

Founded in 1919, Cornwell Quality Tools is the longest-running mobile tool company in the country. The company manufactures and sells quality tools to professional technicians. As a franchisee, you will become a “tool consultant” to technicians and professionals on products for their business.

Initial franchise fee: $0

Initial investment: $59,525 – $277,825

Number of units: 789

Number of employees required to run: 1

Absentee ownership allowed: No

Retail

Mac Tools manufactures and sells quality hand tools. The company offers exclusive products and services such as power tools, tool storage, shop equipment, diagnostics and more. Mac Tools has more than 8,000 different tools in its product line.

Initial franchise fee: $8,000

Initial investment: $120,500 – $340,535

Number of units: 1,131

Number of employees required to run: 1

Absentee ownership allowed: No

Related: A Billionaire Who Operates More Than 2,400 Franchises Knows These Types of Franchisees Make the Most Money

Maintenance

Lawn Doctor has established itself as a leader in the lawn care industry through excellent customer service and the use of innovative technology. Lawn Doctor specializes in habitual lawn care for commercial and residential customers. Services include weed control, shrub care, lawn mower maintenance, commercial lawn care, lawn pest control and more.

Initial franchise fee: $40,000

Initial investment: $116,465 – $141,815

Number of units: 625

Number of employees required to run: N/A

Absentee ownership allowed: Yes

For more information on the best franchise opportunities of 2023, check out our 44th Annual Franchise 500 List — a comprehensive list of franchise leaders across various industries. If you’re interested in a big-name brand with decades of history or hopping on the next emerging trend, there’s something for every prospective franchisee.

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Entrepreneur Staff

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January 18, 2023