If you're considering investing in a franchise, check out the stats first. Below is a brief listing of the top five franchises on the market, ranked by average franchise revenue.
Subway
Subway has over 23,000 franchises around the world and commands an 8% royalty fee from sales. The total investment into the franchise ranges between $70,000 and $220,000 and requires a net worth of $30,000 to $90,000. Subway has been so successful with its franchises partly due to the extensive training and support that it offer franchise owners. Owners are invited to a two week training session at the Subway quarters in over seven countries. Additionally, Subway provides ongoing support in the way of newsletters, meetings, and marketing help.
Curves
Curves has nearly 9,000 franchises around the world, with the majority in the United States. The company requires only a 5% royalty fee and has a modest investment into the company of only $36,400 to $42,900. The company requires a net worth of $75,000 to operate. Curves succeeds at offering one week-long training course at the national headquarters in addition to offering a four-day training course at the franchisee location. Franchise owners are also invited to regional meetings that are full-day, conventions and local events. Curves offers generous marketing help and on-going support to encourage franchise owners to spread the word about the innovative women-only gym.
Quiznos Sub
Quiznos Sub operates about 2,500 Italian sandwich stores around the world. The start-up investment is sizeable - ranging from $208,400 - $243,800, plus a 7% royalty fee. Net worth also must be high - at $125,000 with a $60,0000 cash liquidity requirement. Perhaps because of the high expenses, only about 7% of franchise owners own two or more stores. Quiznos does, however, offer substantial training, including one week at the Quiznos headquarters and a full three weeks at the franchise locations. Quiznos also offers a competitive support package for operations and marketing.
Jackson Hewitt Tax Service
Jackson Hewitt Tax Service has just over 4,000 locations spread out across the US. The tax firm specializes in federal and state taxes and sees clients year-round. The franchise requires a mid-line investment of $51,700-$85,400 and commands a rather large royalty fee of 15%. Net worth requirements must fall between $100,000 and $200,000 and most franchise owners own two or more Jackson Hewitt stores. Training for franchise owners is at a minimum. Jackson Hewitt offers five days at the headquarters and two days at a regional location. The company also offers support such as a newsletter, meeting invitations, Internet and operational materials. Additionally, Jackson Hewitt assists with marketing support in the way of national media and co-op advertising.
The UPS Store
The UPS store franchises nearly 6,000 franchises around the world, including over 4,200 in the US. The total investment is high, ranging from $138,700 - $245,500 with a low royalty fee of only 5%. Net worth also must be high at $150,000 and owners are required to have business and computer experience. Training and support for the UPS franchisee is substantial - with two weeks at the headquarters and two weeks at the franchisee's location. Ongoing support is also available.
