Opening a business is good, but opening a sure hit business is better, and franchising is the politically correct word for that. Franchising is the modern way to raise capital and there are many good reasons and benefits of franchising like, spending lower cost in putting up a business, better penetration of the market, taking advantage of an already established business, and the assurance of risking less just to name a few.
We have listed the 5 best franchises to open this 2017.
– 7 Eleven Inc
Established in 1927, this 24hour convenience store has been franchising since 1964. It was founded by Joe Thompson who was an employee of an ice company in Dallas Texas who eventually started putting up the convenience stores from his background of selling eggs, milk, and bread, and ice blocks. The initial investment needed to open up a 7 Eleven franchise is ranging from $37,000 – $1, 635, 200, the Net-worth requirement is $100 000 to $250 000, and the Liquid cash requirement is $50,000 to $150,000. The initial franchise fee is $10,000 to $1,000,000 depending on the location of the franchise. In-house financing is offered by 7-Eleven to cover franchise fee, equipment, inventory, payroll, and startup costs. The company usually requires 8 to 10 employees in running a franchise.
Founded in 1955 by the McDonald’s brothers Dick and Mac, with their partner Ray Kroc in Des Plaines, Illinois. This fast food giant started out as a burger stand that sells the best hamburgers, fries, chicken, and milkshakes in town. A reputation that they still boast up until this day, ranking in our top 2 best franchise. The initial investment is ranging from $1.3 million to $2.2 million. The liquid cash requirement is $500,000. McDonald’s the ongoing fees for initial franchise fee of $45,000, an ongoing royalty fee of 4%, and Advertisement Royalty Fee of 4%+. There are third-party sources partnered with McDonald’s which offers financing to cover for equipment.
Bill Rosenberg founded a company delivering meals and snacks to workers in Boston named Industrial Luncheon Services in 1946. The success of the food delivery company gave him the idea of putting up a doughnut shop in Quincy, Massachusetts named The Open Kettle which after two years, changed its name to Dunkin Donuts. Dunkin Donuts now has over 70 varieties of doughnuts, cold and hot drinks, and sandwiches located in over 30 countries. The required initial investment is ranging from $230,000 to $1.6 million, the Net-worth requirement is $250,000, and a liquid cash requirement is $125,000. Dunkin Donuts has ongoing fees of initial franchise fee amounting to $40,000 to $90,000, an ongoing royalty fee of 5.9%, and Advertisement fee of 2-6%. Dunkin Donuts has 20% off franchise fee for first five traditional restaurants.
Founded in 1980 in Carlsbad California by Gerald Aul, Pat Senn, and Robert Diaz, The Ups Store was first known as Mail Boxes Etc that was put up as an alternative to the US Postal Service. It was rebranded in 2003 to The Ups Store that is now known across the world for its packaging, shipping, mailbox services, copy and print services that caters to small and big businesses and private individuals. Specific franchises are in Canada and the United States. The UPS Store requires the following: Initial Investment of $159,224 to $434,521, a Net-worth requirement of $150,00, and a liquid cash requirement of $60,000 to $100,000. They have ongoing fees for initial franchise fee amounting to $29,000, an ongoing royalty fee of 5%, and Advertisement royalty fee of 2.5%. They also offer in-house financing for startup cost, inventory, and equipment. Up to 5 employees are required to run a franchise.
-Ace Hardware Corp.
The store was founded in 1924 in illinois when four hardware stores owners joined forces to buy bulk merchandise orders to increase their profit and to effectively be able to compete with their rival hardware stores. The four pillars of the Ace Hardware Corporation are Oscar Fisher, Franke ?Burke, Richard Hesse, and E. Gunnard Lindquist. Now their legacy has reached to seven countries with thousand of stores that offers varieties in home improvement merchandise, equipment and tools. They also now has their own exclusive line of products available worldwide. They require an initial investment of up to $1.5 million, net worth requirement of $400,000. An initial franchise fee of $5000 is required. The number of required employees is from 15 to 25 people.