How to make money with a franchise

If you’ve ever eaten at a great restaurant on vacation and wished there was the same restaurant in your own town, maybe they have a franchise that you could buy and open your own! There are many people who have taken advantage of the franchise market to create a profitable business.

A franchise is a company that grants permission to an individual or group of people, authorizing them to carry out specific business activities. Franchising is a business strategy used to capture and retain market share. This business model helps build an image in the minds of potential and current customers about the benefits of the company’s products and services.

Franchising allows people to share a proven way of doing business, create brand identification, and help in the way of distribution and marketing. Basically, franchising involves a strategic alliance between people who have particular relationships and responsibilities and have the common goal of capturing and dominating markets.
Essentially, buying a franchise involves investing your resources in a proven business model. You and the other franchisees have a joint commitment to gain and retain customers. You are legally required to serve customers using the marketing and operating systems prescribed by the franchisor.

To be successful in franchising, you need to understand the business and legal implications of your relationship with other franchisees and the franchisor. You need to understand that other franchisors are not your competition, but rather your assets in enhancing brand awareness, which is mutually beneficial.

The following are a sampling of the best franchises to consider. They are classified based on initial investment, growth and closing.

1.7-Eleven

This company was founded in 1927 by Joe C. Thompson, who was an employee of the Southland Ice Company, and began selling bread, eggs, and milk in addition to blocks of ice. He eventually bought the company and began opening convenience stores. 7-Eleven offers a ten-year renewable franchise agreement and its royalty rate is negotiable. Franchise fees range from $10,000 to one million dollars, with a total investment ranging from $30,000 to $1.6 million.

2.Meter

Started in 1965 by Fred DeLuca and his friend Peter Buck in Connecticut with $1,000, this business was started with the sole purpose of getting DeLuca through college. The company began franchising in 1974 and currently has operations in 98 countries worldwide. The franchise agreement has a duration of twenty years and is renewable. Subway has an eight percent ongoing royalty fee for franchises and can cost anywhere from $85,000 to $263,000 for the initial investment.

3. Dunkin’ Donuts

This company owes its origins to a donut shop in Massachusetts. It can be found in more than 32 countries worldwide. They offer more than seventy types of donuts. This company attracts a five percent royalty fee from franchisees. The term of the contract is not renewable. You will have to invest between $300,000 and $1.5 million dollars to acquire such a franchise.

4.Pizza Hut

Founded by Frank and Dan Carney in 1958, the company opened a franchise just a year later. More than five decades later, Pizza Hut can be found in various locations around the world. Franchisees have to pay an ongoing six percent royalty fee, a franchise fee of $25,000 on an agreement that lasts twenty years. The individual must have a net worth of not less than $700,000 and have liquid cash of $350,000.

5.Servpro

What began in 1967 as a painting entity was later transformed into a cleaning and restoration company by its founders, Ted and Doris Isaacson. This company specializes in providing cleanup and repairs after fire or water damage and disaster restoration. Prospective franchisees must be worth at least $100,000 with $85,000 in liquid cash. The franchise fee is $43,000 with a royalty fee of between three and ten percent. The total investment is from $130,000 to $180,000.

If you want to make money franchising, consider these top contenders and research additional businesses that offer opportunities. Franchise business is a great way to earn a living by providing excellent service and products to the community.