The Best Franchise Opportunities
Posted by Frugal on August 25th, 2006
Do you know what is the top franchise in the US? According to Entrepreneur’s Franchise 500 data, in 2006, it’s Subway. What’s amazing about Subway franchise is that in 2005, 2004, 2003, 2002, Subway ranked #1 for consecutive 5 years. The #2 this year is Quiznos Sub which was also in the top ten list from 2002 to 2005. And the #3 this year is Curves, but it was in the top 3 list from 2002 to 2005.
Here is the list combined from 2006 to 2003, only 15 franchises in total:
- Subway
- Quiznos Sub
- Curves
- The UPS Store
- Jackson Hewitt Tax Service
- Dunkin’ Donuts
- Jani-King (commercial cleaning)
- RE/MAX
- 7-Eleven
- Liberty Tax Service
- Sonic Drive In Restaurants (#6 in 2005)
- McDonald’s (#7 in 2004)
- Baskin-Robbins (#10 in 2004)
- Taco Bell (#6 in 2003)
- Super 8 Motels (#8 in 2003)
You can click on the franchise to go to the franchise page on their website. Most of these franchises are food (7 in total). The rest of them are mostly personal or business services. I personally looked into Subway and Quiznos Sub franchise. The start-up cost is about $150K to $250K, and the potential income is about $70K to $100K for the owner with depreciation added back. But if you have a well-managed restaurant at very good location, you can bring in $500K a year without problems. Two friends of my friends have brought in profits close to 0.5 million a year. I never knew or could believe it, until I heard it myself. The upside for franchise can be huge (although only a small percentage makes to that level). And the downside is more limited. In the worst case, you can sell your franchise at a discount and recover some of your initial franchise costs.
Here are the start-up costs for all the fastest growing franchises in 2006. Since the start-up cost is the biggest entry barrier, you can look over it and decide on what franchises you can potentially consider. By the way, you can borrow a loan for your start-up cost too. But obviously, you will need to put in a significant stake to the start-up cost in order to get such loan to come through.
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August 25th, 2006 at 12:25 pm
I did an internship at a Subway in college. It seemed after everything, they didn’t make enough for the trouble from the data I was able to see. Is the amount you are quoting sales or net income (not including the owners pay)? If you look hard, there are some interesting franchises out there, such as, The Original SoupMan (the soup-nazi guy from Seinfeld), Cereality (all about cereal), and the different ones under the Raving Brands umbrella. I have been looking for just the right franchise, but I really don’t want to work a lot more hours than I am or work on most weekends and holidays.
August 25th, 2006 at 1:51 pm
The numbers are after everything, except owners’ salaries. Sorry, let me make it clear: I didn’t say it was a Subway. Sorry for the confusion. One of the restaurant was Burger King. The other one I can’t remember now.
However, a $70K for owner is quite doable. Except that if you can find a job that pays more, you may not want to open a Subway.
Most well-run restaurants, the owners put in many hours. If you put in less than 20 hours a week, I’m very certain that you are lukcy to get $70K at all.
August 26th, 2006 at 5:21 pm
HAH quiznos actually ranked #2. I know you haven’t make this chart but have they ever read about the quiznos owners reviews. I heard quiznos is a TERRIBLE franchise..
Oh well
August 27th, 2006 at 8:37 am
When I shopped for franchises, I did find some not very well-run Quiznos franchises. I guess that is the reason for it?
But the successful Quiznos can be very good. There is one near where I work, and their business is quite crazy.
November 7th, 2006 at 2:10 pm
start-up costs for all the fastest growing franchises in 2006.
that link is not working
December 3rd, 2006 at 11:52 pm
Sorry. It’s an old post with a valid link at that time. You may need to dig around now.
February 27th, 2008 at 1:00 pm
I can’t believe Quizzno’s is ranked that high. I know a few people who had Quizzno’s franchises and they were horrible.
February 28th, 2008 at 8:05 am
I saw your posting and want to share with you how my client, Wireless Toyz is a good example where franchisees with passion for the business are typically more successful. Wireless Toyz was founded on the realization that even knowledgeable consumers of wireless products and service are overwhelmed by rapid changes in technology, confused by too many choices and intimidated by ‘techie experts.’ A successful Wireless Toyz franchisee actually looks forward to every frustrated customer and unique problem that walks in the door. Patience is a plus, but what really characterizes their consistent sales leaders is a passion for solving problems, one customer at a time! Learn more about how to choose a franchise or determine whether a franchise business is right for you by contacting Richard Simtob at 866-2FRANCHISE or email him at franchise@wirelesstoyz.com. You may also visit http://www.wirelesstoyz.com/franchise for more information.
June 25th, 2008 at 6:27 am
I work for Wireless Toyz. I suggest you Google “Wireless Toyz fraud” to get the truth about this company and Richard Simtob.
July 2nd, 2008 at 9:24 am
I am a Wireless Toyz franchisee and are quickly coming to the conclusion that I have been ripped off.
July 4th, 2008 at 5:32 am
Franchise Direct – Business Franchise Opportunities
In order to check top franchises check if the franchise has won any awards.
July 20th, 2008 at 5:13 pm
Subway and Quiznos do dominate the franchise markets– even in a an economic downturn, people still have to eat! Subway has just over 21,000 franchises, while Quiznos is at about 4,800. It costs about twice as much to open a Quiznos– upwards of $250k when all is said and done– but you could argue that there is less market saturation for Quiznos, and their food does taste better. I’ve done my homework on both of these guys and can tell you that you’ll find a TON of unhappy franchisees out there. Certainly, owning a franchise is lower risk that starting your own restaurant concept. But you still have to manage employees effectively, have good business sense, and BE THERE at your store. Looking for will yield you plenty of bogus claims and unhappy owners, who unfortunately, yell louder than the folks who actually are happy and don’t want to spread the word, since they don’t want another Quiznos opening next to them.
$500k a year in gross is doable from the other Quiznos franchisees I’ve talked to. The owner himself can make $100k a year, though that usually requires owning multiple stores and/or having a great location. You’re not going to get rich on one store– there’s no free lunch. But for a first-time business owner, this isn’t a bad start.
August 27th, 2008 at 3:53 pm
John (Wireless toyz franchisee)
Can you tell me why you feel ripped off? I have been investigating wireless toyz and would like to hear your experience….
please email me at glhooley@gmail.com
Thanks,
Gavin
August 28th, 2008 at 7:10 pm
If you enjoy working seven days a week for no pay, then this is the franchise for you. I have an idea, send me the thirty thousand dollars you would spend on a franchise fee and then send me a thank you because you didn’t open a store and lose another $250,000. While you continue to do your due diligence, make sure you talk to franchisees that are not related to any corporate employee, then you may here the same thing that I am telling you.
May 26th, 2009 at 2:47 pm
Wireless Toyz is a fraud. Joe Barbat, Jack Barbat, Richard Simtob & Dave Ebner are all crooks. They feed people bogus financial numbers just to sell franchises. Many stores are closing on a monthly basis and the corporate office is clueless on what to do. They hired Dave Keegan, Gregg Kuperstein and other upper management people with no wireless background trying to turn things around.
The entire executive and management staff has been shuffled and reshuffled over few years with different titles hoping that something would work. Nothing worked off course and things went from bad to worst.
The new investment company brought in a new CEO “Neil” and fired many, many people including executives; Jack Barbat, Dave Ebner Dave Keegan, Gregg Kuperstein and others.
They are all crooks and the biggest crook is Joe Barbat. Do not trust any of them and do not associate yourself with any of them also.
May 26th, 2009 at 2:47 pm
Wireless Toyz is a fraud. Joe Barbat, Jack Barbat, Richard Simtob & Dave Ebner are all crooks. They feed people bogus financial numbers just to sell franchises. Many stores are closing on a monthly basis and the corporate office is clueless on what to do. They hired Dave Keegan, Gregg Kuperstein and other upper management people with no wireless background trying to turn things around.
The entire executive and management staff has been shuffled and reshuffled over few years with different titles hoping that something would work. Nothing worked off course and things went from bad to worst.
The new investment company brought in a new CEO “Neil” and fired many, many people including executives; Jack Barbat, Dave Ebner Dave Keegan, Gregg Kuperstein and others.
They are all crooks and the biggest crook is Joe Barbat. Do not trust any of them and do not associate yourself with any of them also.
July 12th, 2009 at 7:47 am
If you’re thinking about buying a franchise, get the only you need to make your first million at 33.
April 26th, 2010 at 6:03 pm
It’s tough finding a good franchise out there. I recommend using a free franchise guide or software application. It’s the best tool I’ve ever seen. It also helped the owner make his first million before 33.
August 9th, 2010 at 11:58 pm
The internet is full of rich information about franchising but if we are searching for a unique business then Edible fruitFranchise opportunities.
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