Are you a husband and wife looking for the perfect franchise opportunity that will give you time freedom and flexibility? With so many options, it can be difficult to know which franchise is the best choice. The International Franchise Professionals Group (IFPG) provides a wealth of resources to help aspiring business owners make informed decisions and narrow down their search.
In this article, we’ll cover frequently asked questions about choosing the most profitable franchise for 2023, as well as the key factors business owners should consider when researching different franchising opportunities. Keep reading to find out more about the franchising industry and the top contenders for the most profitable franchise for 2023.
What is Franchising?
Franchising is a business model that involves a franchisor (the owner of the brand, trademark, or intellectual property) granting a franchisee (the person or entity buying into the franchise) the rights to open an independent business offering goods or services under the franchisor’s brand. The franchisee pays an initial franchise fee and ongoing fees in return for the right to use the franchisor’s business system, which typically includes standardized procedures, branding, and marketing material.
In today’s digital age, franchising is on the rise, with an increasing number of people turning to franchising as an avenue for business ownership. According to the International Franchise Association, franchising now accounts for 8.7 million jobs and about 7.1% of the US GDP.
Which Franchises Will Be Most Profitable in 2023?
While it’s impossible to predict the future with certainty, franchises with a proven track record of success and a relatively low initial investment tend to fare well in times of economic uncertainty. Here are some of the top contenders for the most profitable franchise for 2023:
Subway is the world’s largest submarine sandwich chain, with over 41,000 independently operated locations worldwide. The franchise has a well-established global presence, making it a secure option for potential franchisees who are looking for a business venture with relatively low startup costs. With one of the lowest start-up investments among food franchises, Subway has a competitive edge. Potential franchisees benefit from an initial fee of only $15,000 and a total investment of around $105,000 to $386,000.
McDonald’s is one of the most recognizable franchises in the world, and it has one of the best track records for profitability in the industry. Although the investment to become a McDonald’s franchisee can be quite high — the initial franchise fee is $45,000 and the total investment can range from $1,018,000 to more than $2.2 million — the franchise provides a great return on investment (ROI) that typically makes the initial investment worthwhile.
3. DUNKIN’ DONUTS
Dunkin’ Donuts is a mainstay in the competitive food franchise sector, offering potential franchisees the opportunity to join an established brand. The initial franchise fee is relatively low, at just $40,000, and the total investment can range from $228,601 to $1.7 million. Dunkin’ Donuts’ strong customer base and extensive product line make it a particularly profitable franchise.
4. PLANET FITNESS
Planet Fitness has become one of the most sought-after franchises in the United States. The franchise provides everything aspiring gym owners need to launch their own health club, including a turnkey business model, a variety of equipment packages, and ongoing operational support. The initial franchise fee for Planet Fitness is $10,000, and the total investment can range from $530,150 to $5,165,350.
7-Eleven is one of the biggest convenience store franchises in the world, with more than 67,000 stores worldwide. It provides a comprehensive business package, including a variety of training modules, ongoing support, and low startup costs. The initial franchise fee for 7-Eleven is $50,000 — lower than many similar franchises — and the total investment ranges from $37,550 to $1,150,000.
What Other Qualities Should I Look for in a Franchise?
When researching possible franchise opportunities, it’s important to consider more than just the initial investment and potential return on investment. Here are some of the other factors aspiring business owners should consider:
1. The Franchise’s Reputation
The size of the franchise and its reputation in the industry are still key factors to consider. Franchises with a long history of success — and a commitment to satisfaction and excellent customer service — tend to make good investments. Reputable franchises also tend to offer better training, support systems, and resources, making them more likely to succeed.
2. The Franchise’s Requirements
Different franchises have different requirements for potential franchisees. Some require business experience, while others require specific certifications or degrees. It’s important to understand what the franchise’s requirements are before making a commitment.
3. Buy-in Requirements
There may also be specific buy-in requirements for potential franchisees, such as a minimum amount of money to be invested and the need to purchase equipment or supplies from approved vendors. It’s important to understand these requirements before committing to a franchise.
4. Support Systems
Many franchises offer ongoing support, such as ongoing corporate training programs and access to shared resources. It’s important to determine what type of support the franchise provides and whether it meets your needs.
Final Thoughts on Choosing the Most Profitable Franchise for 2023
Choosing the right franchise can be a daunting task, but with the right information and resources, it’s possible to make an informed decision that will provide a profitable return on your investment. Franchises such as Subway, McDonald’s, Dunkin’ Donuts, Planet Fitness, and 7-Eleven are all contenders for the most profitable franchise for 2023. Be sure to consider the franchise’s reputation, requirements, buy-in requirements, and support systems before committing to a franchise.