If you have ever walked into one of the major fast food joints or a famous global convenience store, chances are that you are already someone who is familiar with a franchise setup.

Franchise stores have become one of the most popular and the most viable kinds of businesses everywhere in the world. In fact in the US, more than 11 percent of the total businesses that you see around you are franchise setups.

So what exactly is a franchise? Is it the next best business idea for you? What are the best kinds of franchise opportunities that you can take up in 2023?

Let us explore these questions and find out more!

What is a franchise?

A franchise is a type of business model where a larger company allows the use of its trade name, logo, brand, and all kinds of products and services to a smaller company in a key demographic area owned locally by a business provider.

A franchiser, for example, McDonald’s, is a bigger company that owns the rights of usage of the name, logo, products, and its unique offerings but sells these rights to a smaller enterprise, for example, ABC Foods, for a cost to providing these services and products in that particular region.

By doing so, the franchiser develops and spreads out its business globally and can earn additional revenue by allowing third parties to open up stores in their name without having to invest in them directly.

For a smaller business, it works as an exciting opportunity to work with a bigger brand that has a good reputation and be able to kick start their business with formal training and with brand recognition in the market.

The best franchise opportunities in 2023

If you are looking for the best franchise opportunities to get started with in 2023, here are the 20 top most preferred franchise opportunities today:

1. McDonald’s

McDonald’s

Mcdonald's is one of the most successful fast food giants of the world, with an amazing brand reputation and recognition all over the world.

With the first store that opened in 1954 in California, today Mcdonald's has stores all over the world. This is one of the best franchise opportunities in 2023, with incredible returns thanks to its popularity and high ROI model.

Key Franchise Details

Category

Fast Food

Franchise Fee

USD 45,000

Initial Investment

USD 1.3 to USD 2.3M

Operational Cost

USD 1M approx

Royalty 

4 percent 

Training from brand

Online and in-store training

Financing

Third Party Lenders

2. Subway

Subway

Subway is another popular option in the world for a franchising opportunity. One of the fastest moving fast and healthy food joints, Subway offers quick turnover and an easy restaurant model that comes in two types of setup: Traditional and Non-traditional.

Franchisees can choose to open up a full fledged traditional Subway restaurant or a food joint established within another business such as at a rest stop or within a mall in a non-traditional format.

Key Franchise Details

Category

Fast Food

Franchise Fee

USD 15,000

Initial Investment

USD 185k to USD 507k

Operational Cost

USD 30,000 liquid cash

Royalty 

4.5 to 8 percent

Training from brand

Online training, classroom etc

Financing

Third Party Lenders

3. Dunkin’ Donuts

Dunkin’ Donuts

Dunkin’ Donuts and their world-famous donuts, baked goods and coffee is perhaps one of the biggest addictions for those with a sweet tooth worldwide. With an easy-to-run Quick Service Restaurant (QSR) with high ROI, this investment opportunity is excellent for those looking to start a franchise opportunity. They have over 13500 stores in 42 countries currently.

Key Franchise Details

Category

QSR/Coffee Shop

Franchise Fee

USD 40,000 to USD 90000 based on facility type

Initial Investment

USD 110k to 1.6M USD based on type of facility

Operational Cost

USD 110,000 approx

Royalty 

5-10 percent including Loyalty Program

Training from brand

Provided (20 days training program)

Financing

Not Available

4. Ben and Jerry’s

Ben and Jerry’s is one of the most famous and preferred ice cream vendors in the US and has a huge crowd following.

Ben and Jerry’s has expanded exponentially and become one of the most preferred franchise opportunities in the US for 2023. With a high ROI model with low investment, this is one of the best options in our list.

Key Franchise Details

Category

Ice Cream Parlour/Scoop Shop

Franchise Fee

USD18000 (Special Venue), USD39,500 (traditional shop)

Initial Investment

Kiosk (USD113k-257k), Scoop shop (USD163k-310k), Full size shop (USD195k-475k)

Operational Cost

USD30,000 liquid cash

Royalty 

5 percent (3 percent royalty and 2 percent ads)

Training from brand

Provided

Financing

Nil

5. Ace Hardware

Ace Hardware

Ace Hardware is one of the most popular yet profoundly personal hardware stores that gives people one of the best home care and maintenance shopping experiences.

Ace Hardware was founded in 1924 but now has more than 5000 stores around the world which speaks of its popularity and reputation. This is one of the best hardware store franchise options in 2023.

Key Franchise Details

Category

Hardware Store

Franchise Fee

USD 5000

Initial Investment

USD 292000 to USD 1.6M depending on size

Operational Cost

USD 250,000 cash, USD 400,000 net worth

Royalty 

Nil

Training from brand

Provided by franchisor

Financing

Directly provided by franchisor

6. 7-Eleven

6. 7-Eleven

7-eleven has been voted one of the best convenient stores across the globe thanks to its turnkey operations and quick setup model. This convenience store is one of the best options for those looking for a retail outlet franchise model in the US.

7-eleven offer 3 kinds of setups namely: Traditional, multi-unit and Business conversion programs.

Key Franchise Details

Category

Retail store

Franchise Fee

Upto USD 100,000 based on the size/type of store

Initial Investment

USD 54000 to USD 1.16M depending on size/type of store

Operational Cost

USD 50,000 approx

Royalty 

USD 50,000 

Training from brand

8 weeks Operations Leadership program

Financing

Down Payment and financing fee along with Open Account

7. The UPS store

The UPS store

The UPS Store is a printing and packaging service provided in the USA that has become the standard shipping partner globally.

UPS deliveries are one of the most common means of shipping in the USA, and their services extend to other things such as notaries, office supplies, printing and copying, communications including fax, etc.

Key Franchise Details

Category

Printing and Packaging Service

Franchise Fee

USD 29950

Initial Investment

USD 218k to USD 477k depending on size/type of facility

Operational Cost

USD 75000

Royalty 

5 percent apart from marketing fee at 1 percent and National Ad fee of 2.5 percent

Training from brand

8 days at (Guidant Financial) training facility and 5 days in-store

Financing

Equipment lease and loans for acquiring or building facility

8. Anytime Fitness

Anytime Fitness is one of the leading fitness and gym chains in the US and was also voted the best fitness chain in the US in 2014.

One of the fastest-growing chains for health and fitness that allows members to access their health centers 24 hours a day, this facility has surely become one of the most profitable and notable franchise chains for health-specific businessmen.

Key Franchise Details

Category

Gym

Franchise Fee

USD 25000

Initial Investment

USD 390K to USD 970K depending on size of gym

Operational Cost

USD 100,000

Royalty 

USD 599 for 1-10 gyms, USD 549 for 10+ gym owners

Training from brand

Online training program, 2 to 6 days direct training on job

Financing

3rd party lenders for Equipment lease


9. Supercuts

Supercuts

Supercuts is one of the most renowned budget-friendly salon establishments that offers haircuts and other styling services from well-trained and professional stylists.

The Supercuts franchise establishment is fully supported using a Training service for stylists at a professional beauty school. This grooming service establishment is a great franchise opportunity in 2023.

Key Franchise Details

Category

Grooming Services

Franchise Fee

USD 10000 to 39500 based on type of setup 

Initial Investment

USD 150K to USD 312K depending on size of salon

Operational Cost

USD 75000

Royalty 

4 percent 1st year and 6 percent consecutive years

Training from brand

Online training program, in-person training program

Financing

Nil

10. Jani-King

Jani-King

Jani King is a janitorial service franchise that provides cleaning and sanitizing facilities to its clients, which includes hotels, hospitals, resorts, sports venues, residential areas, schools, and offices.

Jani King was founded in 1968 but today is spread across 10 countries with over 7500 franchise units. It is one of the best low-investment, high-ROI franchise models.

Key Franchise Details

Category

Janitorial Services

Franchise Fee

USD 16750

Initial Investment

Approx USD 100 to 220k

Operational Cost

USD 25000 approx

Royalty 

10 percent of gross revenue

Training from brand

Two week online course, 40 hours self study program

Financing

3rd party lease for equipments available 

11. Papa John’s

Papa John’s

Papa Johns is a pizzeria that every pizza lover recognises. With one of the best tasting pizzas in town, this franchise option is one of the most preferred by those interested in the food and restaurant business in the USA.

Papa John's pizza was founded in 1984 and already has close to 5750 franchise units all over the world.

Key Franchise Details

Category

QSR/ Fast food service

Franchise Fee

USD 25000

Initial Investment

USD 130k-844k for standard restaurant, USD 26500 to USD 388k for a non-standard business

Operational Cost

USD 250,000 approx

Royalty 

5 percent of gross revenue

Training from brand

6 weeks, 50 hours/week training program provided

Financing

48 month lease of equipment through PJUSA scheme

12. General Nutrition Centers (GNC)

General Nutrition Centers (GNC)

GNC or General Nutrition Center is a world-famous healthy lifestyle supplementing program that helps people with supplements and nutritional products that help them lead a healthy and active lifestyle.

With a wide channel for operating through stores, direct and online sales, this franchise option gives you a scope to expand the business beyond the general parameters. GNC was founded in 1935 and already has 6377 stores worldwide.

Key Franchise Details

Category

Nutritional Supplements/Health 

Franchise Fee

USD 40000

Initial Investment

USD 188K - 467K USD 

Operational Cost

USD 130K

Royalty 

6 percent of gross revenue + 3 percent for ads/marketing

Training from brand

40 hours on the job training, 5 day classroom training

Financing

Not provided

13. H&R Block

H&R Block

For those who want to stay away from typical retail models and are looking for service-related franchise options, H&R Block is perhaps the best option.

H&R Block provides tax assessment and filing services for individuals and businesses and also provides many other Tax related affiliate services. Founded in 1955, the company already has 10,000 branches in 11 countries employing more than 100,000 tax analysts.

Key Franchise Details

Category

Tax Analysis and Filing

Franchise Fee

USD 2500

Initial Investment

USD 31505 to USD 150K

Operational Cost

USD 2500

Royalty 

Varied (depends on the year of establishment and changes frequently as and when business establishes)

Training from brand

35 hours classroom training, 16 hours on the job training

Financing

Commercial Financing through Franchise Partner Inc 

14. Jersey Mike’s subs

Jersey Mike’s subs

Jersey Mike's Subs is a sub sandwich shop that was founded in 1956 in the Jersey shore. The iconic fresh bread sandwiches baked with succulent Italian and American Cheese and meats has become extremely popular amongst the global population. Today there are more than 1500 stores in operation all over the world.

Key Franchise Details

Category

QSR/Fast Food joint

Franchise Fee

USD 18500

Initial Investment

USD 215K to 398K

Operational Cost

USD 100,000

Royalty 

6.5 percent

Training from brand

Intensive On the Job and classroom training

Financing

3rd Party Financing available

15. Great Clips

Great clips

Great Clips is an American Salon and Styling establishment that provides amazing hairdressing services, including haircuts, conditioning treatments, coloring and other hair treatments.

Founded in 1982 in Minnesota, today Great Clips is present in all top countries of the world with more than 4500 salons.

Key Franchise Details

Category

Hair Salon

Franchise Fee

USD 20000

Initial Investment

USD 137K to 260K

Operational Cost

USD 50,000

Royalty 

6 percent

Training from brand

Great Clips Academy training, Sales Training, Franchisee training, In-salon training

Financing

3rd Party Financing available

16. Circle K

Circle K

Circle K is a global convenience store that offers a wide variety of services including refreshments, quick snacks and plenty of other options that you might need on the go.

It is one of the best franchise options for those looking for a successful retail outlet model. Founded in 1951, the company already has 12000+ units worldwide.

Key Franchise Details

Category

Retail/Convenience Store

Franchise Fee

USD 25000

Initial Investment

USD 1 to 2M

Operational Cost

USD 100,000

Royalty 

2.5 to 5.5 percent

Training from brand

Online Training and 2 week in-store training

Financing

Direct Financing from the franchisor

17. Denny’s

Denny’s

Dennys is a full-fledged, casual restaurant that allows its customers to have a family dining experience. This restaurant is also available in a non-traditional outlet format called Dan’s. Both these franchise models are excellent for those who want casual dining formats that allow for exponential growth and full sized restaurant experience. Founded in 1953, today there are more than 1500 Denny’s in the world.

Key Franchise Details

Category

Restaurant

Franchise Fee

USD 30000

Initial Investment

USD 300k to 2M

Operational Cost

USD 500,000

Royalty 

4.5 to 7 percent

Training from brand

2 days training for franchisee, Food and Safety training etc

Financing

POS systems may be supported

18. Culver’s

Culver’s

Culvers is an authentic American Diner that offers everything between refreshments, short eats, fast food and desserts to its customers in the US. Culvers was founded in 1984 and there are more than 500 outlets operational today. Their iconic Butterburgers and Frozen custards are the most popular food items in the US making it a promising casual diner franchise option.

Key Franchise Details

Category

Restaurant/Diner

Franchise Fee

USD 55000

Initial Investment

USD 2 to 5M

Operational Cost

USD 350000

Royalty 

4 percent

Training from brand

16 days franchisee development program

Financing

Not available

19. Little Caesars

Little Caesars

Little Caesars is one of the largest pizza chains just after Dominos and offers Ready to go pizza and other snack options, making them one of the best QSR options in the market.

Little Caesar has some of the best pizza options and signature dishes, making it one of the most popular franchise options today. Founded in 1959, today there are more than 5500 stores worldwide.

Key Franchise Details

Category

QSR

Franchise Fee

USD 20000

Initial Investment

USD 350K to USD 1.4M

Operational Cost

USD 50000

Royalty 

6 percent

Training from brand

12 hours equipment training, 64 hours classroom training and 250 hours on the job training

Financing

Not available

20. Cruise Planners

Cruise planners

Cruise Planners is one of the most unique franchise models on this list giving businessmen to implement their acumen for travel by helping clients book tours, cruises and vacations. This franchise model is extremely good for those who want a low investment work from home model that helps them earn easy revenue. It is powered by American Express and is the number 1 travel partner in the USA today.

Key Franchise Details

Category

Travel and Tourism

Franchise Fee

USD 700 to 10,000

Initial Investment

USD 1000 to 23000

Operational Cost

USD 200,000

Royalty 

1.5 to 3 percent

Training from brand

Intensive training in travel, technology, marketing and operational planning

Financing

Not available

Conclusion

A franchise is a great opportunity to dive into business or to grow your present business by taking on a brand that is well-known and recognised in the market. These 20 franchise options are the best recommendations for the year 2023 for interested businessmen.

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