A franchise opportunity enables someone to purchase rights and conduct business using an established brand’s business model, logo, products, strategies, and even marketing and leadership training. When you invest in and open a franchise, the franchisor (aka parent company) has a vested interest in your success and defines the processes and operations to achieve it. This requires the franchisor gets to know the person investing in the franchise opportunity, meaning not just an application, but an interview process and review of the investor/prospective franchisee’s financial background. Essentially, a franchise opportunity is a close business partnership, where the franchisee invests in and is trusted as a steward and representative of an established brand.
What is a Turnkey Business Opportunity?
A turnkey business opportunity is a business model where the product or service is ready to make money the moment the investment is purchased. Common examples of turnkey business opportunities include vending machines, print-on-demand businesses, and home improvement services like blind installation or carpet cleaning. While some business opportunities may include training, business opportunities generally come with less support, structure, and oversight from the parent company than a franchise does. This means someone who invests in a business opportunity versus a franchise will likely have more freedom to create their own business model and also may not have to share revenue with the franchisor. On the other hand, this increased freedom may also come with more work required on the part of the business owner to make the business opportunity a success.
Are Franchises Good Business Opportunities?
Overall, franchises are great business opportunities, not just for investors and franchisors, but for the communities where franchisees live and work.
And for every person who opens a franchise, the benefit trickles downward. In 2019, small franchise establishments supported nearly 8.4 million jobs. As a result of more opportunity for employees, owners, and franchisors, the franchise business contribution to the United States GDP was predicted to grow 4.6% in 2020, compared to overall GDP growth projected at 4.1%.
Though these incredible benefits of franchise opportunities apply nationwide, the International Franchise Association has identified the top 10 states in the US where franchises are highly likely to be established and contribute to employment. Here are those states, and the reasons for their attractive environment for franchises.
- Growing populations and pro-business environments: Texas, Colorado, Florida, and North Carolina.
- Innovative economic policies: Tennessee, South Carolina, and Georgia
- Favorable business tax climate: Nevada
- Growing lodging and tourism boom: Arkansas
- Blossoming tech sector and low living cost: Idaho
That is not to say opening a franchise in the other 40 states isn’t a great investment. In fact, it may mean your state is ripe for opening a franchise!
Overall, franchise businesses are expected to continue their trajectory, especially in the Western and Southern United States. Quick service restaurants (QSR), full service restaurants, and personal service businesses are expected to lead the boom.
There are over 773,000 franchise businesses in the United States, and a new one opens every eight minutes of each business day. That doesn’t just represent growth of commonly-recognized franchise brands like 7-Eleven, McDonalds, or Ace Hardware. In fact, small businesses you may not even predict can be franchises. Many local and regional businesses grow by taking advantage of franchising. And if there isn’t an option you like right now, it’s a great idea to keep researching and looking for the right fit. 300 new companies start offering franchise opportunities every year.
What Advantages of the Franchise Opportunity Can You Identify?
When choosing a franchise to invest in, you can’t simply ask “what is the hottest franchise opportunity?” Trends will come and go, and it’s essential to pick a franchise or business opportunity that will serve your needs, goals, and aspirations for years to come. The average length of a franchise agreement is ten years. Instead of simply looking to the trends, ask how many of the advantages from the list below you can identify in alignment with what you want as a business owner.
- Business Assistance: One of the biggest benefits of investing in a franchise is that you are purchasing the industry experience, insights, training, and business model of the franchisor. Identify how much of this support you want, and in what areas, to begin narrowing your search for the right franchise opportunity. Some franchises provide everything from assistance picking a location to the advertising plan. Others train you to deliver services but leave other elements up to your discretion. Whatever business assistance benefits you envision, the right franchise opportunity can provide them.
- Brand Recognition: Another major benefit of investing in a franchise opportunity is the power of purchasing brand recognition. This doesn’t mean you have to invest in a major national brand. In fact, franchise companies with well-known and highly-advertised brands tend to retain much higher rates of company ownership. Regional franchises that are recognized in your state can bring you more brand and customer loyalty where it counts, while providing you more benefits of actual business ownership.
- Built-In Customer Base: Whether you invest in a nationally-recognized franchise, or open the first location in your state, a franchise comes with a built-in customer base. Customers who have traveled to other places will recognize your brand. In some cases, the franchisor may even provide leads to your business so you can grow your local reputation.
- Buying Power: Starting your own business from the ground up means paying more money for products, supplies, and even employee benefits. One benefit of franchising your own small business instead is greater buying power through the parent company. This also extends to supply chain reliability.
These are some of the basic advantages of a franchise opportunity. Reflecting on how you want each to manifest in your future as a business owner will help you ensure you make the right investment of time and money for you, and your family.
Best Franchise Opportunities of 2021
The best franchise opportunities near you depend not only on your current market location, but your long-term strategic goals as a business owner. With that said, there are some industries the International Franchise Association has identified as the fastest-growing franchise sectors of 2021. These are:
Personal Services Franchise Opportunities: Personal services is an umbrella term for industries as diverse as education, home health care, personal finance, and entertainment. This type of business is the sector where franchises are growing the fastest, expected to achieve nearly 5% year-over-year growth. Brands like Anytime Fitness and Great Clips are some well-recognized franchises in this business line. Other opportunities include:
- AAMCO: The worldwide leader in transmission repairs, AAMCO has learned the ins and outs of how to simplify owning, running, and staffing a high-quality auto repair franchise. With a focus on expanding its service offerings as well as its footprint, AAMCO is working hard to stay at the top of the industry. This franchisor provides support in everything from location selection, to training, to advertising.
- Griswold Home Care: Griswold Home Care is the #1 non-medical home health care franchise, delivering care to adults with disabilities or needs related to aging. This is a mission-driven company committed to making a difference in the lives of the individuals they and their franchisees serve in 33 states. Franchise owners typically provide services like homemaking support, companion care, and respite care.
- Skill Samurai: Skill Samurai is a children’s education franchise, focused on teaching kids coding, engineering, and web design based on games and activities they love. With skyrocketing demand for both STEM education and private tutoring, this franchise opportunity is a chance to transform the future for the kids in your community.
- Color Me Mine: Developed around the art of having fun, Color Me Mine is an art-as-entertainment ceramics studio where customers paint their own ceramics and make lasting memories. Founded in 1992, this company now has over 140 locations in 14 countries, partnering with companies like Disney, Warner Brothers, Universal and more to provide amazing high-quality products your clients will come back to create time and again.
Quick Service Restaurant Franchise Opportunities: Quick-service restaurants continue to be a popular option for consumers and franchisees alike. This industry is seeing evolution toward healthier options, meaning some QSR franchise standards like Subway may attract more business, while others like McDonalds could be making changes to the product line. Technology like ordering kiosks is also transforming the employment costs at QSRs, even as international supply chain challenges may compromise efficiency for widely-known national brands. The number of QSR locations and jobs continues to grow, with an expected industry growth rate of around 4%. Outside fast food, there are alternative QSR food franchise opportunities, including:
- Garbanzo Mediterranean Fresh: A fast-casual restaurant, Garbanzo is the nation’s fastest-growing Mediterranean food franchise in the US. Serving scratch-made dishes that are prepared to order and customized to each diner’s preferences, this food franchise opportunity meets the demands and desires of today’s casual diners.
- Saladworks: Saladworks offers a guilt-free menu of gourmet salads to diners at over 100 locations in 13 states and 2 countries, with 50 more locations in development. Founded in 1986, this business did not begin franchising until 2001, meaning they have a strong business model and strategies to attract and retain customers. Healthy, simple, and accessible, this QSR franchise won several awards in 2020 and is not slowing down in 2021.
- Mahana Fresh: Mahana Fresh is a tropical fast-casual concept serving veggie and protein bowls that accommodate a wide range of dietary needs without sacrificing flavor. Each ingredient is cross-utilized to maintain an appealing, healthy menu without too much expense or food waste for the owner. This brand is committed to sharing the positive energy of paradise through food and company culture.
- Nestle Toll House Café by Chip: Nestle Toll House Café by Chip franchises put you at the center of the smell of fresh-baked cookies, providing more than 50 scrumptious baked goods through proprietary recipes. This franchise comes with support choosing the right location and managing your launch, as well as comprehensive training and marketing.
Full Service Restaurant Franchise Opportunities: Sit-down restaurant franchise opportunities are also growing in popularity and profitability. As this sector catches up with the same changing food preferences that are driving transformation in QSR franchises, it is projected to grow by as much as 2%, compared to 1% growth or less in 2017 & 2018. Fresh ingredients and comfortable dining options seem to be important to the success of a franchise in this sector, as does the opportunity for carry-out. Franchises like Texas Roadhouse and First Watch, which offer more specialty dining, have also experienced an uptick in business. Other specialty full service restaurant franchises to consider include:
- Dickey’s Barbecue Pit: Dickey’s Barbecue Pit is committed to making delicious Texas barbecue available not only across the US, but around the world. The company has deployed innovative solutions for online ordering, contactless delivery, catering, and more that provide 8 different revenue streams to the more than 500 locations around the world.
- Pizzeria Halt: Pizzeria Halt is the world’s first vegan pizza franchise, offering a healthy hormone- and chemical-free alternative to other pizza chains. Committed to delivering a unique and family-friendly experience to health-conscious diners, this food franchise opportunity has been ranked by Forbes as an up-and-coming franchise.
- Huddle House: Huddle House is an iconic Southern diner known for round-the-clock breakfast and hospitality. This business thrives in small towns and suburbs, not only through a modernized dining environment but a flexible business model where the franchisee can purchase land, lease a space, or add onto an existing truck stop or hotel.
- Growler USA: This microbrew pub franchise concept is 100% committed to America’s booming craft beer industry. Comfortable, fashionable pubs allow you to serve local customers while also growing relationships with regional brewers, making this franchise opportunity an investment that supports other entrepreneurs at the same time. You will also select a menu from a cookbook full of great recipes designed to partner perfectly with great beer.
Find the Best Franchise Opportunities Through Franchise.com
Franchise opportunities are as diverse and exciting as the people who decide to invest in them. Whether you’re looking to supplement your income with a turnkey business opportunity like a vending machine or want to invest in a job for yourself and others in your community, we know there is a franchise opportunity in our database that can help you achieve your goals. We invite you to peruse the many incredible options on our site and reach out to those that catch your attention for more information.