Make the right franchise investment in the new year
Owning a business is a dream for many, but starting your own business from the ground up has so many risks involved. Startups have a 25 percent failure rate within the first year, and another 50 percent fail within five years. Franchises are a great alternative to starting your own business, as you’ll be purchasing a turnkey business from an established brand.
Some other advantages of buying a franchise are the training and support you’ll receive from the company, including marketing assistance and materials, construction assistance and site selection, and the purchasing power of a strong network when buying supplies and inventory. The company will help you find much better deals on things than you would as an independent contractor. As explained in this franchisor vs franchisee article, it’s common for franchisees to own multiple franchise units once the original is success.
Another thing to consider is that your goal should be to scale up — this is, own more than one franchise unit. Many franchise owners report that owning a single unit is like buying a 40-hour workweek, and while it can be a bit slow to start, the real profits start rolling in when you have more than 3 franchise units.
In this article we’re going to look at the best franchise opportunities going into 2020, based on average reported franchise ROI, projected expansion rates, and other factors (data collected from Forbes and Entrepreneur).
KFC US LLC
Investment: $1.4M to $2.8M
KFC has over 23,000 restaurants globally, and is a part of Yum! Brands, which also owns Pizza Hut and Taco Bell. Yum! Brands has aggressively expanded the number of KFC restaurants around the world in recent years, and not only in western countries KFC is the largest restaurant chain in China.
Investment: $1.06M to $2.23M
The world-famous fast food restaurant chain operates over 37,855 restaurants worldwide, and similar to KFC, has seen massive expansion in China in recent years. McDonald’s is known for their unique regional menu items, appealing to local tastes, like Loco Moco burgers in Japan, Green Curry Chicken Pie in Thailand, and the Cadbury Crème Egg Mcflurry in Australia.
Pizza Hut LLC
Investment: $297,000 to $2.1M
Pizza Hut has over 18,431 locations worldwide, and is the 3rd-ranked pizza outlet in the United States. As part of Yum! Brands along with KFC and Taco Bell, Pizza Hut franchise owners enjoy a large corporate network of resources, and offers smaller franchise opportunities as well, such as Pizza Hut mall kiosks.
Investment: $100,000 to $1M
The world’s largest convenience store has 66,000 stores worldwide, in 17 countries. Interesting, 7-Eleven operates the most stores in Japan (18,860) followed by Thailand, the United States, South Korea, and Taiwan.
Investment: $38,000 to $219,000
This real estate company operates around 6,800 offices in over 100 countries. It was ranked the top real estate franchise four years in a row by Entrepreneur magazine. Of course, owning a franchise with ReMax means being tied into the real estate industry, which requirements careful planning and strategy.
Ultimately, deciding on the best franchise opportunity is a difficult endeavor, with so many brands and business types available, at various entry prices. As this post from Legalzoom outlines, there are a number of things to consider when deciding if a franchise is right for you.