Franchising is expected to continue to grow in 2024 according to the 2024 Franchising Economic Outlook, the International Franchise Association’s annual study in partnership with FRANdata 

The number of franchise establishments will increase by more than 15,000 units, or 1.9%, to 821,000 units, according to that research. That franchise growth is expected to contribute to nearly 9 million jobs, and $545.8 billion in GDP. 

Franchises allow you to own a small business with a blueprint that gets you started. But with so many franchise opportunities available, how do you choose what’s right for you?

Here we tapped three experts with deep experience in the franchise industry for tips and guidance: 

• Scott Greenberg is a speaker, writer, and coach who helps franchisees grow their businesses. He’s also the author of The Wealthy Franchisee: Game-Changing Steps to Becoming A Thriving Franchise Superstar and his newest book, Stop the Shift Show: Turn Your Struggling Hourly Workers Into a Top-Performing Team.
• Pete Baldine is president of Moran Family of Brands, one of the largest automotive aftermarket franchisors with six different brands spread across the United States and internationally in Africa with strong core values and support services designed to help franchisees succeed.
• David T. Azrin, partner at Gallet Dreyer & Berkey, is a franchise law attorney who works with both franchisors and franchisees.

How To Evaluate a Franchise

If you’re thinking about getting into franchising, you’ll have a lot of decisions to make. 

• What type of franchise do you want to operate?
• What franchise can you afford?
• How do you make sure you’re getting into the right franchise?

Greenberg recommends prospective franchise owners consider these factors: 

Unit-level economics

“It’s not just about how much money the franchise is making overall or your top line sales, but how much you, as a franchisee, can realistically expect to take home, based on the performance of one location unit,” he says. While franchisors can’t promise specific earnings, he encourages would-be franchisees to ask questions about how they support “franchisee profitability – not just sales.” 

Ownership

Take a close look at ownership. A franchise owned by a private equity firm versus a passionate founder, “can say a lot about the franchise’s direction and priorities,” he advises. 

Culture

Greenberg encourages you to find a franchise that’s a culture fit. “Remember, you’re not just buying into a business, but a community,” he says. 

Baldine agrees that culture is a major factor to consider. “Make sure you are in sync with the management team, their direction, their style of leadership, and make sure to verify everything that they tell you,” he warns. 

Selectivity

While your first instinct may be to choose a franchise that’s easy to buy into, consider how selective the franchise is. “A brand that’s choosy about who they bring on board is often more focused on long-term success and quality, which is a huge plus,” he recommends. 

Satisfaction

Finally, be sure to focus on franchisee satisfaction. “It’s the ultimate litmus test of how well the franchise supports and fulfills its franchisees’ needs,” he points out.

Avoid the hard sell

Baldine also recommends being very leery of hard sell tactics. “Don’t make the wrong decision due to being told that you will miss the opportunity and that other people are interested in the same territory,” he says. “Make sure it is right for you and that you are not pressured to move quicker than you want.”

Other factors to consider, “is whether it is (a) trendy or mature concept, if it is growing, and what does the market in that sector look like for sustainability” says Baldine. “Most importantly, make sure the model is making money and is it something you can see yourself doing every day.” 

Affordability 

This is a big factor,  of course, especially if you are new to franchising and don’t have a lot of capital to invest. While you may be able to get small business loans to start franchises (we’ll talk about those later), you’ll want to make sure you choose an affordable option since it can take time to really start making money. (And, of course, profitability is not guaranteed.) 

Purchasing a franchise typically involves an initial investment plus ongoing franchise fees. The Franchise Fee is a one-time fee to join the franchise, and it’s usually in the range of $20,000—$50,000.

Costs will be described in the Franchise Disclosure Document (FDD) which you can request from the company. Some FDDs are maintained in state databases like the Wisconsin Department of Financial Institutions Franchise Database where you can search for free.  

Training & Support

Will you get comprehensive training to get started? Once you are up and running, are there ongoing training programs available? Talk with other franchisees: how do they view the support they get from the franchisor? 

Best Franchises

Following are franchises that have made best franchise lists from multiple sources, such as the Entrepreneur Franchise 500, Franchise Business Review, and experts featured here. 

These are just a starting point for your research. Review the Franchise Disclosure Document (FDD) carefully and ask questions. 

“Clarify what’s most important to you, and use that to make your choices,” says Greenberg. 

The best franchise opportunity is the one in which you can succeed. 

Best Food and Beverage Franchises

While fast food franchises like McDonald’s, Arby’s, Chick-fil-a, Taco Bell, Dunkin or Subway are very well known, these established brands can also be expensive. For example, you’ll currently need to invest somewhere between $861K to almost $2.5 million to open a free-standing Arby’s restaurant. 

Here, we focus on several less expensive food and beverage franchises that may be more accessible to business owners who are just getting started. 

Name of franchise	Franchise Legal Name	Cost*
Tropical Smoothie	Tropical Smoothie Cafe, LLC	The initial investment range is $296,500 to $661,500.
Wingstop	Wingstop Franchising LLC	The total investment necessary to begin operation of a WING-STOP® Restaurant is $325,616 to $974,733, excluding real estate purchase and lease costs.
Culver’s	CULVER FRANCHISING SYSTEM, LLC	The total investment necessary to begin operation of a Culver’s® Restaurant is from $2,524,000 to $7,228,000.
Kona Ice	Kona Ice, Inc.	The total investment necessary to begin operation of a Kona Ice franchised business is between $167,115 and $212,100.
Smoothie King	Smoothie King Franchises, Inc.	The total investment necessary to begin operation of a traditional Smoothie King® Business ranges from (i) for an end-cap or in-line location, $311,600 to $638,465, and (ii) for a free-standing drive-thru location,$762,400 to $1,379,150.

*Cost information derived from FDD documents obtained through state agencies where available. 

Best Service Franchises

The service economy continues to grow, offering a variety of business opportunities. This is a broad category that can include everything from commercial cleaning services, to senior care services, to hair salons. Here are a few opportunities to consider: 

Name of franchise	Franchise Legal Name	Cost
Two Men and a Truck (moving services)	TWO MEN AND A TRUCK SPE LLC	The total investment necessary to begin operations of a Franchised Business ranges from $164,000 to $446,600 for a Metro Market Franchise and $105,500 to $250,100 for a Mod Market Franchise.
Dogtopia (pet services)	Better Together, LLC	The total investment necessary to begin operation of a Dogtopia franchise ranges from $780,104 to $1,469,845.
Tint World (window tinting)	Tint World, LLC	The total investment necessary to begin operation of a TINT WORLD® Center under a franchise agreement ranges from $289,950 to $469,950.
European Wax studios (waxing & beauty)	EWC FRANCHISOR LLC	The total investment necessary to begin operations of a European Wax Center franchise is $396,600 to $554,950.
UPS Store (business & shipping services)	The UPS Store, Inc.	The total investment necessary to begin operation of a New or Relocation Traditional (non-Rural and non- Veterans) Center under the Laser Lite design is $250,031 to $479,718, which includes $35,821 to $62,079 that must be paid to the franchisor or affiliate. The total investment necessary to begin operation of a Remodel Traditional (non-Rural and non-Veterans) Center under the Laser Lite design is $104,597 to$216,229, which includes $9,825 that must be paid to the franchisor or affiliate. The total investment necessary to begin operation of a Rural New or Relocation Center under the Laser Lite design is $220,873 to $421,951, which includes $29,471 to $34,621 that must be paid to the franchisor or affiliate. The total investment necessary to begin operation of a Rural Remodel Center under the Laser Lite design is $144,597 to $271,220, which includes $9,825 that must be paid to the franchisor or affiliate.

Best Health and Wellness Franchises

The Global Wellness Institute projects 8.6% average annual growth in the wellness economy, reaching $8.5 trillion in sales in 2027. It lists eleven sectors that bring in billions of dollars in sales, including personal care and beauty; healthy eating, nutrition and weight loss; public health, prevention and personalized wellness; and physical activity. Top candidates in this sector include:

Name of franchise	Franchise Legal Name	Cost
30 Minute Hit	30 Minute Hit USA, LLC	The total initial investment necessary to begin operation of a 30MINUTE HIT® Gym unit franchise ranges from $123,350 to $324,950.
Fit4Mom	Stroller Strides, LLC	The total investment necessary to begin operation of a FIT4MOM® franchise is from $8,245 to $28,685.
Clean Eatz	CLEAN EATZ FRANCHISING LLC	The total investment necessary to begin operation of a Clean Eatz Franchise is $357,700 to $762,000.
AF/American Family Care	AFC Franchising, LLC	The total initial investment necessary to begin operation of a franchised business (in which you are not converting an existing urgent care business), ranges from $1,227,774 – $1,778,851.

Best Franchises for Travelers

People are traveling again, and spending lots of money while doing so. Travel and tourism spending is estimated to grow annually at a rate of 3.47%, resulting in a market volume of US $1,063.00 billion by 2028 according to Statista. 

Similar to restaurant franchising, hotels make up some of the top franchises in this sector, but a hotel franchise can be expensive. While we have included some hotels in these picks, we’ve chosen franchise brands with lower costs to get started. 

Name of franchise	Franchise Legal Name	Cost
CruiseOne Dream Vacations	CRUISEONE,INC.	The total investment necessary to begin operating a new franchise is $11,800 to $21,000.
Cruise Planners		At $10,995, Cruise Planners® is one of the most affordable low-cost franchises to own, and for a limited time, we are lowering the price even further to $9,995.
Studio 6	G6 Hospitality Franchising LLC	The total investment necessary to begin operation of a newly constructed 100 room Studio 6 Suites (excluding land acquisition costs) is $6,417,575 to $7,838,659 and a conversion 100 room Studio 6 Suites (excluding land acquisition costs) is $206,850 to $1,625,050.
AmericInn by Wyndham	AmericInn International, LLC	The total investment necessary to begin operation of a 100-room conversion Facility will range from $279,269 to $4,054,753. Land acquisition costs are not included in these ranges.
Motel 6	G6 Hospitality Franchising LLC	The total investment necessary to begin operation of a newly constructed 100 room Studio 6 Extended Stay Motel (excluding land acquisition costs) is $6,812,341 to $9,216,088, and a conversion 100 room Studio 6 Extended Stay Motel (excluding land acquisition costs) is $197,107 to $1,892,930.

What To Watch Out For 

Azrin suggests looking for these red flags in the Franchise Disclosure Document:

Lack of an Item 19 Disclosure 

Franchisors have the option of including historic average revenues of existing franchises in Item 19 of the Franchise Disclosure Document; it’s not required. “Successful franchises typically provide this information, so a lack of information about historic average revenues can be a sign that franchisees are not doing well,” Azrin says. 

“If the franchisor does not include such information in Item 19, the franchisor is legally prohibited from providing any historical or projected revenue figures that are not included in writing in Item 19. If the franchisor does not include such information in writing in Item 19, and then gives the prospect historical or projected revenue information informally, either verbally or by email/text, this is a big red flag that the franchisor is engaged in improper and misleading sales practices,” he warns. 

Too few franchises 

While it may seem appealing to “get in on the ground floor,” watch out for a franchise that “does not yet have many franchises, and where there have been many closures of franchised businesses,” Azrin advises. “Item 20 of the Franchise Disclosure Document shows the franchisor’s track record over the past three years, including the number of openings and closings each year in each state. A big red flag is a track record of many closures.”

Legal Considerations

Is the franchisor being sued? If so, the Franchise Disclosure Document (FDD) will alert you. “This isn’t uncommon, especially for larger brands, but ask questions if you’re concerned,” says Greenberg. “Excessive litigation in the FDD should be fully evaluated,” Baldine advises.

Review the franchise agreement, and consider hiring an attorney to help you do that. “A good franchise attorney will be able to tell you what clauses are standard, and which are atypical,” says Greenberg.  

How to Finance Your Franchise

There can be a variety of ways to finance your franchise, including:

1. Franchisor Franchise Loan

 Some franchisors offer financing, which can be a good option since they’re familiar with the franchise. Compare small business loan options, though, as you might find better rates elsewhere, especially with strong credit.

2. Bank Loan

Banks may finance franchises with a solid track record (especially established brands0 and proven business model. You will need a good credit score, a business plan, and possibly collateral. Financing may come in the form of term loans and supplemented by lines of credit. Expect to put down 20-25% of upfront costs.

3. SBA Loan

Small business loans guaranteed by the US Small Business Administration offer attractive rates but require a thorough application process and good credit. Typically collateral is not required to qualify, but if you have it, you will need to pledge it. A popular option, the SBA 7(a) loan offers up to $5 million with repayment periods up to 25 years.

4. Alternative Financing

You may find some online lenders offer financing, though this type of financing is usually best for franchisees looking to expand or add additional locations. 

5. Retirement Funds

If you have good retirement savings, you could consider using them to fund your franchise. ROBS plans can be a popular option here, but be sure to consult with a tax professional.

6. Small Business Credit Card

If you just need a small amount of money to supplement your savings, or to purchase one of the least expensive franchises, a small business credit card might be an option to help cover startup costs. A 0% APR credit card can also provide working capital for your franchise. 

As a bonus, small business credit cards can help business owners establish business credit. 

Navs Verdict

Becoming a business owner doesn’t require starting from scratch. A franchise business can help you achieve your entrepreneurial dreams with support from the franchisor. 

“Franchising is a great model that can be an excellent vehicle for someone looking to make a career change,” says Baldine. “There are about 3,500 franchise companies out there. 

“As with anything, you need to do your research and find the companies with the right core values that are committed to the success of their franchisees.  The model must be strong, sustainable and (meet) the needs of the market,” he says. 

He recommends tapping the resources of the International Franchise Association and tapping the expertise of a franchise professional. With the right expertise, and the right financing, a franchise can offer an excellent opportunity for prospective business owners.