While business and economies across the globe suffer under the doom and gloom of the never ending pandemic that is Covid-19, let's take a positive turn and focus on the 10 fastest growing franchises in the US in 2020. Click to skip ahead and see the top 3 fastest growing franchises in the US in 2020.
Many people have heard of the term 'franchise' but not realized what it actually means. In franchising, the franchisor provides the know-how, license and procedures and intellectual property, and receives royalty fees in return. Do you think fast food chains across the world with thousands of locations own every single one of them? They actually franchise their name and their menu and recipes, to allow people to establish their own restaurants.
This is a much easier and less difficult method to enable growth. Owning every restaurant or location would take an unfathomable amount of capital and hence, would not really be a very prudent move in return. Further, you don't have to be involved in the day to day operations since you don't own that location; instead, that is the responsibility of the franchisee. This also results in fewer employees being needed as compared to a company owned network of locations. Another benefit of franchising is that your risk and liability is restricted, as this is mostly assumed by the franchisee. On the other hand, your cut of the profits is lower than if you owned each location yourself, while there is a lack of control too.
The best new franchises in 2019 and new franchises in 2020 include The Flying Locksmiths, Snapology and Burn Boot Camp. Of course, each country has different top franchises which is why the fastest growing franchises in India include Amul Franchise, provider of dairy products and Domino's (NYSE:DPZ), which is huge in not just India but the entire world. On the other hand, if you're considering the fastest growing franchises in UK, then ActionCOACH and Cafe2u are current surefire bets. We should also note that some of the most successful fast food franchises like McDonalds Corporation (NYSE:MCD), Wendys (NASDAQ:WEN) and Burger King (NYSE:QSR) didn't make our list because they are mature companies with slower growth rates.
To obtain our list of the fastest growing franchises in the United States, we consulted rankings from Entrepreneur, taking into account not just the 2020 rankings but the 2019 rankings as well and calculating their average. To see the changes year on year, you can compare this with our previous list as well. It is important to note that these growths were pre Covid-19, and the way the pandemic has decimated all businesses, but especially focused on typical franchise businesses such as restaurants, gyms and salons, we don't yet know what the impact will be, which can only be ascertained once the pandemic starts to subside. So let's take a look at the franchises you should consider investing in, starting with number 10:
10. Dream Vacations
Dream Vacations helps you plan cruises and resorts vacations, and offer excellent deals because of their vast network and connections. It is also one of the cheapest franchises to invest in, with the investment needed ranging from $2,000 to $20,000.
9. Great Clips
I honestly was quite surprised to hear that hair salons have tons of franchises and Great Clips is one of the biggest hair salon franchises, with over 4,000 locations in the United States and Canada. The investment required is also significantly higher, ranging from $147,000 to $282,000.
8. Kona Ice
A unique twist to the icecream truck has worked wonders for Kona ice, which serves shaved ice in trucks to its customers, who can then flavor it themselves. Generally, franchisees tend to partner with schools, community groups and youth teams. You will again need around $150,000 as initial investment in this popular franchise.
7. Club Pilates Franchise
Exercise is all the rage these days, and fitness franchises are reaping the benefits, which is why Club Pilates Franchise is on the list of 10 fastest growing franchises in the United States. You'll need between $160,000 to $280,000.
6. Planet Fitness
We told you fitness in in these day, and Planet Fitness embodies this perfectly. The fact that it is one of the fastest growing franchises even though it needs a lot of investment (over $1 million to $4 million) shows the benefits that this franchise is providing. It has close to 2,000 locations right now.
5. Stratus Building Solutions
Everything can be a franchise if you want it to be, and if you become a franchisee of Stratus Building Solutions, you can provide its trademark Green Clean services, with proprietary chemicals and other equipment to offices, schools and other buildings as well.
4. Orangetheory Fitness
Fitness dominates our list and in Orangetheory, trainers lead groups in fitness workouts. These workouts include both cardiovascular and strength training, and the franchise has nearly 1,500 locations. You will need around $576,000 - $1.5 million to be able to become part of this franchise.
Click to continue reading and see the top 3 fastest growing franchises in the US in 2020. Disclosure: 10 Fastest Growing Franchises in the US in 2020 is originally published at Insider Monkey.