Aug. 26, 2024
For many budding business owners, buying a franchise is a no-brainer. That&#;s because the best franchises to buy have high profit margins and low failure rates.
Please visit our website for more information on this topic.
In addition, franchises benefit from a proven business model, brand recognition, and a loyal customer base. This model makes it easier for a franchise business to earn a high annual revenue quicker than other businesses.
That&#;s why we did a franchise business review to identify the most profitable franchises. We include a mix of food truck businesses, fast food franchises, service businesses, and some unique franchises that you might not have heard of before.
Sure, you&#;ll have high initial investments and ongoing fees. That&#;s a small price to pay given that the most successful franchises are 63.3% more likely to succeed than the average small business over a three-year period.
Keep reading or click on any of the links below to jump to that section and learn more about owning a franchise.
Let&#;s start by answering some questions about franchise ownership.
Yes, franchises can be profitable. According to Sculpture Hospitality, franchisees can expect to have profit margins of 4% to 12% within a few years of opening a new franchise.
Profitability will depend on the franchise, investment costs, location, and managerial experience of the franchisee.
Earlier, we told you that the most profitable franchises are 66.3% more likely to succeed than the average small business. Here&#;s how we figured that out:
That means 98% of the top 100 franchises survive a three-year period compared to 60% of businesses overall. Do a little more math (98% divided by 60%), and you&#;ll find that a top-100 franchise has a 63.3% higher probability of surviving three years.
The most profitable franchise to own is Express Employment Professionals, a staffing agency. We&#;ll dive further into Express Employment Professionals, how we arrived at this conclusion, and the rest of the most profitable franchises below.
We spent a lot of time debating the best way to establish the most profitable franchises. The absolute best way to establish the most profitable franchise businesses is to review franchise disclosure documents and establish the profit margins for over 2,000 franchises.
Unfortunately, that requires a ton of labor (or an amazing web crawler), so we went with a more viable option.
First, we consider the profitable franchise opportunities that we&#;ve interacted with at UpFlip. We know they have a proven business model because we&#;ve personally worked with the franchise owners to establish that they&#;re profitable franchises.
Then we found three franchise brokers who came highly recommended by mentorship groups we work with and asked them which franchises they recommend as the most profitable franchise opportunities.
Finally, we found an Insider Monkey report that ranked the top 10 most profitable franchises. It provides annual sales numbers and maximum initial costs. We took that information and went a couple of steps further.
We divided the average annual sales by the number of franchises to find the annual revenue per franchise. This allowed us to determine the average monthly revenue per franchise.
Then we divided the high end of the estimated franchise cost by the average monthly revenue to find the &#;time to return,&#; or time to recoup the initial franchise cost. It&#;s not as precise a method as we would like for the most profitable franchises, but it gives you a good idea of the franchises that will pay for themselves quickly.
We list the most profitable franchise opportunities by the profit made but group them based on how certain we are about the data.
The following franchise ideas include some of the franchises we&#;ve interviewed. These make our best franchise opportunity list because they have low startup costs, good business processes, and great owners who believe in helping franchisees succeed.
This home and Airbnb cleaning franchise lands on the list of most profitable franchises because its extensive support and remote business model provide many financial benefits.
&#; Number of franchises: 20
&#; Average monthly revenue: $60K
&#; Maximum initial cost: $69K
As a franchisee, you focus on business processes and pay others to clean the properties. Franchise units require a $35K franchise fee, and you can expect between $48K and $67K in total startup costs.
The average location makes $10K per month in revenue. Assuming you make 30% profit, you&#;ll make back your money in less than two years.
Pro Tip: Competing with other franchisees won&#;t limit your financial success because most areas don&#;t have a MaidThis franchise. When you want to expand your business model, you can quickly expand to other cities.
Learn more about how to start a remote cleaning business from Neel below:
Like Neel&#;s strategy?
Find out how to start a MaidThis franchise.
Brown&#;s Pressure Washing just launched a franchise opportunity developed by founder Joshua Brown and UpFlip. This opportunity enables you to easily launch a fully equipped pressure washing business.
&#; Number of franchises: 1
&#; Average monthly revenue: $166.7K
&#; Maximum initial cost: $100K
Among other features, the licensing fee gives franchisees access to video courses, a boot camp, contracts, and a 24/7 online support community. Franchisees also agree to pay a 10% royalty fee to cover weekly coaching and administrative support.
&#; Licensing fee: $20K
&#; Total investment: $50K to $100K
&#; Royalty fee: 10%
&#; Space needed: 100 to 2K square feet
&#; Employees: Enough employees or subcontractors to provide services
&#; Territories: Can buy more than one territory if available in your area
&#; Franchising funding assistance: Yes, through third-party financing services
Find out how Joshua Brown started Brown&#;s Pressure Washing below:
Want to use Josh&#;s recipe? Become a Brown&#;s franchisee.
A Wise Coatings franchise coats garage floors and other surfaces with a material similar to epoxy.
&#; Number of franchises: 25
&#; Average monthly revenue: $100K
&#; Maximum initial cost: $134K
The initial franchise fee is $50K, but it can cost you between $114K and $134K to become a franchise owner with Wise Coatings.
These franchises make between $400K and $500K in revenue. You can expect to keep 15% to 20% in profit. Based on these numbers, the average Wise Coatings franchise recoups its initial costs in two to three years.
&#; Franchise fee: $50K
&#; Total investment: $117K to $160K (including 3 months of working capital)
&#; Space needed: 100 to 2K square feet
&#; Employees: 2 to 4 (recommended)
&#; Territories: Discounts for buying more than one
&#; Franchising funding assistance: Provided through Benetrends
Check out our interview with Brandon Vaughn, who runs a successful epoxy flooring business, below:
Spray-Net holds patents in a unique painting process created by Carmelo Marsala after he found an innovative way to modernize the house-painting industry.
&#; Number of franchises: 40
&#; Average monthly revenue: $104.2K
&#; Maximum initial cost: $241.8K
The company has 40 franchisees (and counting). Spray-Net also owns patents that mean only those who buy in and learn the process can offer it to their customers.
&#; Franchise fee: $45K
&#; Total investment: $170.8K to $241.8K
&#; Royalty fee: 8%
&#; Space needed: 100 to 2K square feet
&#; Employees: Enough employees or subcontractors to provide services
&#; Territories: Can buy more than one territory if available in your area
&#; Franchising funding assistance: Yes, through third-party financing services
See how you can start a Spray-Net painting franchise in this video:
John Evans started EverLine with $500 and a unique vision for parking lot maintenance.
&#; Number of franchises: 100
&#; Average monthly revenue: $25.9K
&#; Maximum initial cost: $332.4K
Twelve years later, the multi-million-dollar company has franchises all over North America that keep other businesses&#; parking lots safe and looking sharp.
&#; Franchise fee: $49.5K
&#; Total investment: $164.7K to $332.4K
&#; Royalty fee: 9% or $500 per territory + 3% (whichever is greater)
&#; Space needed: 100 to 2K square feet
&#; Employees: Enough employees to provide services
&#; Territories: Can buy more than one territory if available in your area
&#; Franchising funding assistance: Yes, through third-party financing services
Learn more about EverLine in our in-depth interview with its founder:
With Photo Booth International, you can start a photo booth business for only $12,500. These turnkey businesses have no ongoing royalties, making it one of the most profitable franchise opportunities for business owners.
&#; Number of franchises: 4.6K
&#; Average monthly revenue: $300 to $1K per session
&#; Maximum initial cost: $12K
Learn more about Photo Booth International.
Owning a franchise is a big decision. Every franchise system has different startup costs, marketing support, and franchise revenue. Each established brand in this section is recommended by one of our broker partners.
You can learn more about how we analyze franchises.
Anchored Tiny Homes is a franchise that comes to your property and builds a tiny home.
&#; Number of franchises: 48 (47 corporate, 1 franchise)
&#; Average monthly revenue: $168.2K
&#; Maximum initial cost: $1.8M
They offer basic studios, 1-bedrooms, and 2-bedrooms that range from bare bones builds to customized builds that match your home.
This medical franchise business focuses on anti-aging solutions such as hormone replacement, botox, chemical peels, facials, and more.
&#; Number of franchises: 9
&#; Average monthly revenue: $155.9K
&#; Maximum initial cost: $828K
4EverYoung maintains a loyal customer base of middle-aged people.
Franchise owners who invest in Brothers Gutters will focus on providing gutter installation, repair, and cleaning services.
&#; Number of franchises: 98 (1 corporate, 97 franchises)
&#; Average monthly revenue: $97.6K
&#; Maximum initial cost: $498.5K
These franchises provide services to both homeowners and businesses.
Fundraising University franchise owners help schools run charity events. Franchisees average between 18% and 28.4% profit.
&#; Number of franchises: 9
&#; Average monthly revenue: $54K
&#; Maximum initial cost: $560K
This profitable franchise is a great deal, especially since you can often become a franchise owner for under $100K.
GameDay Men&#;s Health offers franchise owners the ability to help men with problems like low testosterone, nutrition, and weight loss.
&#; Number of franchises: 5
&#; Average monthly revenue: $43.9K
&#; Maximum initial cost: $386.5K
This healthcare franchise business has a 35.8% profit margin according to their franchise disclosure document.
360° Painting is a clever name for this painting company because their services focus on everything you can paint inside and outside of a house.
&#; Number of franchises: 100
&#; Average monthly revenue: $43K
&#; Maximum initial cost: $145K
Despite the name, I&#;d make the argument that a franchise owner is actually buying a coatings company when you purchase this franchise.
Temporary Wall Systems provides an alternative to drywall for businesses that need separate spaces.
&#; Number of franchises: 110
&#; Average monthly revenue: $27.1K
&#; Maximum initial cost: $352.5K
Clients include companies renting office spaces, throwing events, or trying out a setup before they finalize their design.
Dryer Vent Wizard is the only national company that installs, maintains, and cleans dryer vents. Service locations typically include a mix of residential homes and commercial buildings.
&#; Number of franchises: 100
&#; Average monthly revenue: $25.9K
&#; Maximum initial cost: $159.4K
Cleaning and maintaining dryer vents removes potential fire hazards and increases the efficiency of dryers.
Tippi Toes is a mobile dance studio franchise. Franchise owners travel to locations that allow them to use the space.
&#; Number of franchises: 33
&#; Average monthly revenue: $23.7K
&#; Maximum initial cost: $83.5K
Their franchise disclosure document states there is a 30% profit margin, making it one of the most profitable franchises for a business owner.
Measured by the time it takes to make to recoup your initial investment, the most profitable franchises include:
Although Express Employment Professionals is one of the lesser-known names on the list, this staffing agency has been in business for over 40 years.
&#; Number of franchises: 860
&#; Average monthly revenue: $400K
&#; Maximum initial cost: $400K
Once fully operational, the average franchise is able to cover its initial costs within the first month. That&#;s hard&#;nay, impossible&#;to beat.
RE/MAX is one of the best franchises in the real estate market, with each RE/MAX real estate agent averaging 13.3 transactions per year.
&#; Number of franchises: 9.2K
&#; Average monthly revenue: $1.8M
&#; Maximum initial cost: $239.5K
RE/MAX is the only real estate franchise to make this list.
Wendy&#;s franchises have the shortest time to return of any fast food industry franchise on the list.
&#; Number of franchises: 6.9K
&#; Average monthly revenue: $1.8M
&#; Maximum initial cost: $698.5K
The brand recognition will help drive net profit, and many franchisees own multiple stores.
Chick-Fil-A is one of the best franchises to own because the brand brings in massive revenue. With less than six months from opening to reach profitability, most franchises will be highly successful.
&#; Number of franchises: 2.9K
&#; Average monthly revenue: $5.8M
&#; Maximum initial cost: $2.8M
However, they are closed on Sundays and require franchisees to have Christian values, which may exclude some people who are looking to buy a franchise.
Ace Hardware is another one of the best franchises to own.
&#; Number of franchises: 5.6K
&#; Average monthly revenue: $333K
&#; Maximum initial cost: $1.9M
With 5,555 stores and average sales of $4 million per year, it can take six months for this franchise to recoup its initial investment.
The UPS Store is one of the best franchises to open. It consistently ranks on the Entrepreneur list of top 10 franchises.
&#; Number of franchises: 5.5K
&#; Average monthly revenue: $631.3K
&#; Maximum initial cost: $477K
The average revenue indicates that the franchise requires about 10 months to earn back the initial investment.
Matco Tools is a mobile automotive tool franchise. It&#;s the best franchise to open that doesn&#;t require a building.
&#; Number of franchises: 1.9K
&#; Average monthly revenue: $400K
&#; Maximum initial cost: $313.6K
Matco Tools franchisees deliver tools straight to mechanics. It&#;s easy work, low cost, and doesn&#;t ask for royalties, which makes it one of the most popular franchises to start.
People commonly think McDonald&#;s is the best franchise to buy due to its high profit margins and brand recognition.
&#; Number of franchises: 40K
&#; Average monthly revenue: $2.8M
&#; Maximum initial cost: $2.5M
However, there is a hefty initial investment and a lot of competition for new McDonald&#;s franchisees.
PIRTEK focuses on maintaining hoses for hydraulic machines and other industrial applications.
&#; Number of franchises: 590
&#; Average monthly revenue: $1M
&#; Maximum initial cost: $899.3K
If you&#;re looking for an entrepreneurial endeavor that&#;s both industrial and financially stable, PIRTEK might be for you.
Snap-on is another of the most profitable franchises that sells tools, but the retailer goes beyond the automotive sector.
&#; Number of franchises: 4.8K
&#; Average monthly revenue: $429.3K
&#; Maximum initial cost: $465.4K
Both the revenue and the minimum initial costs are higher than Matco. The time to return might be slightly longer because of the higher initial costs.
There are plenty of other franchises that provide profitable opportunities. Some commonly mentioned options include Anytime Fitness and Dream Vacations.
Anytime Fitness earns monthly membership fees from people who want a workout. The company has 2,349 franchises and claims a 16.9% profit margin.
Dream Vacations franchises require very little in upfront costs. You can get a franchise for a few thousand dollars. Once you&#;re a franchisee, you&#;ll make a commission on each travel arrangement you help someone book.
Factors that impact a franchise&#;s profitability include:
There are a variety of ways to measure a franchise&#;s profitability. We&#;ll discuss how to measure a franchise&#;s profitability using:
Let&#;s look at how each of these helps prospective franchise owners identify the most profitable franchise opportunities.
The best metric to measure a franchise&#;s profits is NOI. This measure of profitability excludes taxes, financing costs, earnings from investment activities, and depreciation to show how much money the business is making.
Every franchisor charges a franchise fee for the right to use their business name, business model, and intellectual property. Depending on the opportunity, expect to pay initial franchise fees between $1,000 and $1 million dollars.
Your franchise won&#;t be truly profitable until you&#;ve taken home at least enough to offset your initial investment.
In addition to an initial franchise fee, you&#;ll want to know the total initial investment to start owning a franchise. Franchise opportunities may require up to $5 million as an initial investment, but most are between $10K and $100K.
Until you make the initial investment back, you haven&#;t really made a profit.
Another way to measure the most profitable franchises is by comparing ROI. To calculate this, divide your net operating income by your total investment.
You can measure your ROI on both an annual and a lifetime basis.
This is the amount of money going in and out of the business each month.
A negative number means cash is flowing out of the business. You&#;ll need to reinvest or cut your losses. A positive number means you&#;re bringing more in than your expenses.
You can divide the initial investment by the cash flow to see how long it will take to get the investment back.
The break-even point considers the initial investment, fixed and variable expenses, and revenue. To break even, your investment and expenses must equal your revenue. In other words, it&#;s the point where you&#;re not losing money.
Check out our article on performing a break-even analysis.
Buying any of the most profitable franchises is a great way to start your entrepreneurial journey. While buying a franchise location might cost more than starting your own business on the front end, they are more likely to succeed long term.
With competitive price and timely delivery, THE MIDI. sincerely hope to be your supplier and partner.
We discussed whether franchises are profitable for aspiring entrepreneurs and the success rate of a new franchise compared to an independent business. Then we took a look at some of our favorite franchises, followed by the business venture suggestions from brokers. Finally, we discussed the most profitable franchises overall.
In each case, we discussed the sales revenue, startup costs, and financial performance of existing franchises.
Which of these successful businesses are you considering purchasing?
&#; Estimated read time: 10 minutes
For aspiring entrepreneurs, joining a franchise is an excellent opportunity to become a business owner while mitigating much of the risk involved in starting a business from scratch. That&#;s because franchise advantages include a proven business model, name recognition, and vendor and supplier network, which cuts out a lot of the work involved in starting a business from the ground up.
Of course, joining one of the most profitable franchises is a particularly safe bet for aspiring entrepreneurs.
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Determining how much money you can make by buying a franchise depends on a number of factors, but there are a few boxes a potential franchise should tick to ensure that you have the best possible chance of turning a profit. For example, the franchise should appeal to your local demographic, have a proven support system for franchisees, and have a strong reputation generally. Nationwide number of locations and annual revenue are also good indicators of whether a franchise can be profitable for you.
According to Franchise Direct , the best way to determine a franchise&#;s future profitability is by analyzing Item 19 of the franchise&#;s franchise disclosure document (FDD), which outlines the business&#;s financial performance. It&#;s a good idea to consult an accountant or lawyer, who can help you crunch the numbers. Of course, turning a profit also means mitigating debt, so you should only consider the franchises whose initial franchise fee and upfront investments are doable for your current financial situation&#;and this, too, should be a conversation you have with your lawyer or accountant.
Clearly, determining whether a franchise will be profitable for you is a subjective activity. But with that in mind, there are several franchises out there that meet all those general requirements we mentioned, and which are well worth looking into.
10 of the most profitable franchises in
The following 10 franchises are representative of a range of industries, investment amounts, number of locations, and degree of brand recognition. The diversity on this list is indicative that a franchise doesn&#;t necessarily have to be top-tier in order for
you
to turn a profit. That said, we would be remiss not to include some of the world&#;s most popular franchises on this list, as well.with Fundera by NerdWallet
We&#;ll start with a brief questionnaire to better understand the unique needs of your business.
Once we uncover your personalized matches, our team will consult you on the process moving forward.
1. McDonald&#;s
is
something to be said about brand recognition, and you&#;d be hard-pressed to find a franchise (or virtually any business, for that matter) with greater brand recognition than McDonald&#;s. Owning a McDonald&#;s franchise, wherever you&#;re located, guarantees a loyal customer base&#;a key for generating a profit. With that said, buying aTheresomething to be said about brand recognition, and you&#;d be hard-pressed to find a franchise (or virtually any business, for that matter) with greater brand recognition than McDonald&#;s. Owning a McDonald&#;s franchise, wherever you&#;re located, guarantees a loyal customer base&#;a key for generating a profit. With that said, buying a McDonald&#;s franchise requires a hefty initial investment, so this is not a pathway to profitability if you have limited access to franchise funding. Potential franchisees must have access to at least $500,000 in liquid assets for their application to be considered, and you&#;ll be expected to put down at least 25% in cash as a down payment to secure your McDonald&#;s franchise location.
Initial franchise fee:
$45,000Estimated initial investment:
$1 million to $2.2 million2. Dunkin&#;
also
like McDonald&#;s, buying aDunkin&#; franchisees also enjoy massive brand recognition&#;and that&#;s especially true in the Northeast, where the doughnut shop is beloved as something of a cultural institution. And, like McDonald&#;s, franchisees can take advantage of the robust franchisee support system that Dunkin&#; offers. Butlike McDonald&#;s, buying a Dunkin&#; franchise requires a serious upfront investment. At a minimum, candidates must have at least $250,000 in liquid assets and $500,000 minimum net worth per unit, though those numbers vary depending on your location. Dunkin&#; franchise fees vary depending on your state, so entrepreneurs in certain areas will have a lower barrier to entry here. Dunkin&#; also provides discounts off the initial franchise fee for certain investors, such as entrepreneurs who plan to open several locations, those who plan to open restaurants in developing areas, or qualified veterans.
Initial franchise fee:
$40,000 to $90,000Estimated initial investment:
$95,700 to $1.5 million3. The UPS Store
The UPS Store has been ranked among the top five on Entrepreneur Magazine&#;s Franchise 500 List for the past three years, thanks to the company&#;s world-class training and support system for new franchisees, strong brand recognition, and spotless reputation. Opening a UPS Store franchise may require significantly less upfront investment than opening a food franchise with equal name recognition, and the franchise offers programs and incentives to help ease that burden. The UPS Store is partnered with Guidant Financial, a small business lending institution that can offer qualified investors with franchise financing. They can also provide special financing incentives for veterans, and people opening UPS Stores in rural areas or small store-in-stores. Just be aware that to qualify for a UPS Store franchise, you&#;ll need to have access to at least $60,000 in liquid assets.
Initial franchise fee:
$9,950 to $29,950Estimated initial investment:
$138,433 to $470,0314. Dream Vacations
If you&#;re interested in owning a travel agency, a Dream Vacations franchise should be at the top of your to-research list. This is one of the most profitable franchises firstly for its low-cost investment: Depending on your experience level, the initial franchise fee may be as low as $495. That rate is unparalleled by any other franchise we&#;ve seen, especially from a franchise whose reputation matches that of Dream Vacations. The franchise offers financial incentives for other franchisees as well, including veterans, military spouses, first responders, &#;community heroes&#; such as medical professionals and teachers, and members of DiversityFran. This is also a great opportunity for people who prefer or need to work from home&#; Dream Vacations franchises don&#;t require brick-and-mortar locations, so you can run your business entirely remotely.
Initial franchise fee:
$495 to $9,800, depending on experience level (more experienced franchisees receive larger discounts)Estimated initial investment:
$1,795 to $20,3005. The Maids
The Maids has over 40 years of experience as a franchise, and that robust support system proves itself in the numbers. According to the company, the average Maids franchise makes about $1.1 million in annual revenue, and their most successful franchise raked in $6.5 million last year. Plus, their initial franchise fee and other startup costs are much lower than most other cleaning franchise opportunities out there. At the high end, the total initial investment is under $200,000. All in, you can expect to spend a relatively modest $200,000 in your first year of owning a Maids franchise.
Initial franchise fee:
$12,500Estimated initial investment:
$48,950 to $124,9506. Anytime Fitness
As the name implies, Anytime Fitness&#; unique business proposition is that their facilities are open 24 hours a day, seven days a week, 365 days of the year. The sheer availability of their services maximizes each franchise location&#;s opportunity to bring in revenue, and the company says that they sign on one new member every minute&#;which proves their huge, and growing, market. Interestingly, Anytime Fitness doesn&#;t collect monthly fees based on sales totals; rather, franchisees pay a flat monthly fee of $699, which makes ongoing costs easier to plan for.
Initial franchise fee:
$3,150 to $42,500Estimated initial investment:
$58,870 to $521,4377. Pearle Vision
Founded in , Pearle Vision was revolutionary in eye care for bringing the retail and medical experience under one roof&#;a business model that continues to be successful today. They&#;re now owned by Luxottica, the world&#;s largest eyewear company, which gives Pearle Vision franchise owners access to a massive range of both mid-tier and designer glasses and sunglasses. That all spells a franchise system with a huge opportunity to generate revenue: In , Pearle Vision locations that employed an optometrist made an average $1.325 million in revenue, and $1.04 million was generated through retail.
Initial franchise fee:
$30,000Estimated initial investment:
$391,795 to $620,5388. JAN-PRO
JAN-PRO is a world leader in commercial cleaning and janitorial services, with over 25 years of experience and several innovative, proprietary cleaning systems under their belt. Plus, JAN-PRO offers potential franchisees three ownership options, which are appropriate for varying experience levels and require varying levels of investment. Uniquely, they offer a remote franchise opportunity, which is both relatively low-cost and flexible for people who don&#;t or can&#;t work outside their homes.
Initial franchise fee:
$1,000 to $20,000, depending on the type of franchise you buyEstimated initial investment:
$1,000 to $768,0009. Supercuts
Supercuts is one of the most recognizable names in salon franchises, which is likely due to their 40+ years in business and over 2,600 locations. In addition to offering haircuts, Supercuts franchisees can take advantage of diverse income streams to maximize their profitability, like selling hair care products and offering other salon services. Supercuts candidates don&#;t need prior experience in the salon industry (though prior management experience is preferred). However, you will need $500,000 in total net worth, $150,000 in liquid assets, and good credit for your application to be considered. While Supercuts doesn&#;t provide financial assistance themselves, they can link you up with franchise financing institution FranFund to help you secure a franchise loan.
Initial franchise fee:
$39,500Estimated initial investment:
$151,370 to $321,02010. Ace Hardware
Ace Hardware offers potential investors three types of franchise opportunities: They can either open a new Ace Hardware store , convert their current location into an Ace Hardware, or open an Ace Hardware Grocery, which converts previously unused space within existing grocery stores into an Ace Hardware &#;store-within-a-store.&#; The latter is the least expensive option, most notably because Ace waives the initial franchise fee for these types of franchises. (Ace also waives the initial franchise fee for veterans.)
That said, new Ace locations and conversions also have ample opportunity to make a profit, thanks to the company&#;s training and marketing support, name recognition, national presence (they have locations in all 50 states), and robust supplier network. They also don&#;t collect monthly royalty fees, which cuts out a major monthly expense required of just about every other franchise out there.
Initial franchise fee:
$5,000Estimated initial investment:
$286,000 to $1.07 millionThe bottom line
As we mentioned, determining what will be the most profitable franchise for you requires research. In addition to analyzing your potential franchisor&#;s FDD within the broader franchise agreement (ideally with the help of your lawyer or accountant), it&#;s a good idea to speak with as many current franchisees from each franchise that you&#;re considering as possible. That&#;s the most accurate way to receive detailed and practical answers about the question of profitability.
In your interviews, however, it&#;s important to look beyond the numbers. Ask franchisees about their satisfaction with the support they receive from the franchisor, as well as their opinions about the overall outlook of the business. That way, you&#;ll get a holistic understanding of whether you feel comfortable putting your money, time and effort into this franchise, or if you should set your sights elsewhere. And if one franchise doesn&#;t cut it for you, there are so many other franchise opportunities you can look into, so there&#;s no need to settle for an unsafe bet.
This article originally appeared on JustBusiness, a subsidiary of NerdWallet.
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