Through years, many entrepreneurs chose to acquire a franchise as a way to kick-start their path to self-sufficiency and profits. Buying a franchised business has many advantages, such as the support of a large company and getting access to a strong brand and established reputation. In addition, it can cheaper to buy a franchise than start your own business from the ground, although many of the most profitable franchises require investments that range from a couple of hundred thousands to well over a million dollars. However, banks are more willing to offer financing for a franchise. Moreover, franchises can be acquired even by inexperienced entrepreneurs, since companies usually provide all the necessary training.
At the same time, franchising also comes with some disadvantages. While owning your own business allows you to conduct operations the way you want, franchising involves adhering to some rules. The company that franchises the business also requires franchisees to stick with the suppliers, equipment and products that they provide. In addition, buying a franchise means sharing some profits with the franchisor. On the one hand, getting a franchise means there is a higher probability of success, so sharing some profits can be worth it, although over the long run an independent company can provide higher returns.
So, in the end, whether or not to get a franchise is an individual decision. There is also the matter of picking what franchise to acquire, since there are hundreds of companies that offer franchises and they operate in various industries, from quick service restaurants, to apparel retailing, to real estate. It’s important to do your research and to make sure that the business you are about to launch will have a market in your designated region. Buying a franchise from a large and well-known brand like McDonald’s involves very high costs and it does not guarantee a success. At the same time, there are low-cost franchises that can generate substantial returns (take a look at best low cost franchises with high profits in 2018).
Let’s take a look at investing in franchises from another angle: buying stock in companies that offer franchises. Often, franchise stocks are great growth investments and are known to outperform the broader market. When a company offers to sell franchises, it makes it one of its main objectives to reduce the number of company-owned outlets. The reason for this is that, even though companies that offer franchises see less revenue, they also get better profit margins. Moreover, having more franchised locations frees the company from the need to invest in space, equipment, pay wages and maintain locations and provides it with a consistent and stable cash flow that can be used on growing the brand value and expanding the network, as well as paying dividends.
So, whether you are interested in buying a franchise, or investing in a company that sells franchises, we have compiled a list of 11 fastest growing franchises in the US in 2018. The list uses data from Entrepreneur‘s ranking of fastest growing franchises in the US and Canada, but includes those companies that saw the largest increase in the number of locations over the last two reported years.
11. Jan-Pro Franchising Int’l. Inc.
Company: Premium Franchise Brands LLC
Jan-Pro Franchising Int’l. Inc. is a subsidiary of Premium Franchise Brands and it offers commercial cleaning services to businesses. To acquire a Jan-Pro franchise, an initial investment between $3,985 and $51,105 is required. Jan-Pro has been offering franchises since 1992 and in 2010 it had over 10,000 franchises in the US and Canada. However, in 2011 the number of franchises slid to 6,000 in the US and 1,083 in Canada and since then these numbers have been climbing and reached 7,105 in the US and 1,381 outside the US in 2017, up by 130 and 132 on the year, respectively.