Starting a business can be an exciting, but also daunting prospect, especially if you’re starting from scratch with a great idea but no guarantee that your business will survive. One way to approach a business is to consider a model that has a proven track record of preventing success from buying an existing business, the best way to do this may be open a franchise.
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A franchise is an existing business model, often with multiple locations across the country, where things are done in a standard and consistent way, providing you with a template. Most of the time, you just need to provide the start-up capital and staff, and you may be able to make money relatively quickly compared to starting a brand new business.
If you start one, you can join a small but mighty force of business owners who are going this route. Nearly 5% of U.S. businesses with employees are franchises, according to Lending Tree. This represents approximately 130,492 partially or fully franchised businesses.
Given the failure rate of new businesses, it’s no surprise that many aspiring business owners choose to become franchisees rather than starting their own business. If you buy a franchise, you benefit from operating an established brand with a proven system. But – as the Federal Trade Commission warns – buying a franchise is no guarantee of success.
This is why it is important to carefully consider franchise options before investing in one. Costs vary widely, so you want to make sure you get what you pay for. To help, GOBankingRates has analyzed Franchise Direct’s Top 100 Franchises in 2023 to identify which ones are most likely to be lucrative based on their track record, start-up costs and ongoing fees. They are ranked from most to least likely to succeed financially.
If you’re considering buying a franchise, find out which ones are most likely to make you rich.