Every aspiring business owner needs information to make the best decision when selecting a franchise. It is important to know which franchises offer the best opportunities for success and investment. To that end, the International Franchise Professionals Group (IFPG) compiles a list of frequently asked questions (FAQs) in regards to the #1 franchise in the US.
Since its inception, the IFPG has been dedicated to helping individuals launch their own successful franchise. To assist, we have put together the following FAQs about the #1 franchise in the US, as well as some tips from franchise experts. This should provide aspiring business owners with a comprehensive overview of the best franchises in the US.
FAQs about the #1 Franchise in the US
1. What is the #1 franchise in the US?
The answer to this question is subject to change depending on the year, as the competitive franchise industry is constantly evolving. The most recent list of the top 10 franchises in the US is based on criteria such as annual turnover, unit growth, and the number of franchise owners.
According to research conducted by Entrepreneur Magazine, the #1 franchise in the US is the fast-food chain, Subway. Subway has 27,000+ US locations and is especially well known in the Millennial and Gen Z demographic. Ranked second on the list is The UPS Store, followed by 7-Eleven in third place.
2. What advantages does the #1 franchise in the US offer investors?
The advantages of investing in the #1 franchise in the US starts with the brand recognition. Subway the second most well-known fast-food chain in the US. As a result, potential customers already have a positive preference and image of the brand. This provides a great starting point for business owners who hope to tap into this loyal customer base. Subway also ensures that its franchisees get the best training and support programs that work towards optimising their profitability. Finally, the franchise agreement is quite flexible for Subway, and the ability to invest multiple locations is a great benefit for investors.
3. How much does it cost to start the #1 franchise in the US?
The costs associated with investing in the #1 franchise in the US, Subway, will vary depending on the size of the desired location. The startup costs ranges from $100,000 to $325,000 and includes a variety of expenses such as a one-time franchise fee, rent, equipment, store design, and hiring employees. Thus, investing in Subway is an expensive endeavor that requires significant working capital.
4. How long does it take to become a successful franchisee?
The timeline is dependent upon the circumstances surrounding the individual franchisee. Someone who already has experience in the fast-food industry will potentially have an advantage over someone without such experience. Similarly, someone who has significant working capital will also potentially have a leg up on those who may not have such funds available.
On average, it generally takes between two to four years for Subway franchisees to become profitable. The first year is crucial in optimizing processes and profiting from the operational model, and the subsequent years are for refining operations and continuing to grow the business.
5. What type of investor should consider starting a #1 franchise in the US?
Ideally, an investor looking to start the #1 franchise in the US, Subway, should have experience in the fast-food industry. This experience will prove beneficial in multiple areas, from marketing to customer service, inventory management, and more. In addition, potential franchisees should have significant working capital, as the startup costs for Subway can be quite steep.
Franchisees should also have a passion for the brand, as Subway will require a significant time commitment in order to be successful. Ultimately, becoming a successful Subway franchisee is something that takes determination, energy, and belief in the brand in order to be successful.
Summary
In summary, Subway is currently the #1 ranked franchise in the US according to Entrepreneur Magazine. Before investing, be aware of the associated costs and requirements, which include significant experience and working capital. Although it takes a few years to become profitable, once a successful Subway franchisee is established, they often reap the rewards for many years to come.
Topics:
