What Types of Franchises Are There, And How Much Do They Cost?
There are 3,000 different franchises available in the US, and they fall under five general categories. Cost-wise, they range from $50,000 to over $1,000,000.
This category includes everything from:
- ice cream shops like Dairy Queen, ($382,000-$1,828,000 total investment);
- to fast food franchises like Buffalo Wild Wings, ($1,389,200 – $3,148,200 total investment);
- to sandwich shops like Subway ($84,300 – $258,300)
Since food-related franchises are the most visible of all franchise types, (as well as being the highest percentage of franchises) it’s a common starting point for would-be franchise owners, who like the idea of associating with a popular type of business.
This category of franchising is a highly visible one. Retail franchises are for people that want customers to come to them, as opposed to having to go out to find them. For instance, The UPS Store ($150,984 – $337,946) has thousands of locations. Other retail franchise businesses include:
- Batteries Plus, ($159,300 – $313,900)
- EmbroidMe, ($85,460 – $232,465)
- Supercuts, ($112,550 – $243,200)
It’s common for retail franchise owners to own more than one store; they’re called multi-unit franchisees.
This sector of franchising tends to cater to busy families, and more recently, seniors. Service Brands International is a great example of a franchisor that focuses solely on this busy segment. Their brands include:
- Mr. Handyman, ($91,500 – $132,600)
- Molly Maid, ($71,525 – $116,200)
- 1-800-DryClean, ($59,800 – $78,950)
- Protect Painters ($78,850 – $97,950)
When it comes to keeping our senior citizens in their homes, (as opposed to a nursing home):
- BrightStar Care, ($90,895 – $155,723)
- Synergy Homecare, ($53,300 – $115,300)
- Visiting Angels, ($52,285 – $84,035)
Those are just three of the over 30 different senior care-related franchises being offered. Read about the senior care franchise numbers.
Business to Business
This category of franchising attracts sales and marketing minded folks. These types of franchises are outbound franchises; franchisees go out to find their clients and customers:
- Servepro ($127,300 – $174,700) is a company that specializes in water and fire damage clean-up and restoration.
- Jani-King ($13,150 – $93,150) is in the commercial cleaning business, servicing office buildings, restaurants, and stadiums/arenas.
- TeamLogic IT ($91,850 – $148,850) is a franchise that provides IT consulting services to small businesses.
Several types of home-based franchises fall into the B2B category, too. OneCoach ($40,100 – $318,800) franchisees offer consulting/coaching services to small businesses. Cost-cutting is an important part of running a business, so franchisees of Expense Reduction Analysts Inc., ($66,100 – $81,750) consult with business owners and executives on how to do just that.
When it comes to children, consumers generally spend their money, freely. Opportunities in this sector abound, and for people that love children, this is a popular sector. In January of 2002, President Bush signed the No Child Left Behind bill, which increased funding for school systems. Since then, the school systems have reached out to the franchisees of Sylvan Learning, ($179,069 – $305,090) and Huntington Learning Centers, ($197,450 – $382,450) to help them with students who may be struggling in school.
Parents that need a place to hold their children’s birthday parties can go to Pump It Up, which offers an indoor arena featuring giant inflatables. Child safety is an important topic these days, and the 250 locations of Ident-A-Kid,($34,005 – $44,205) work with schools and community centers to provide identification cards for children.
Next we’ll cover how to find and research franchises. Click on page 2 below to continue . . .