Top 20 Franchises

How Much You Have To Invest To Open One Of The Top 20 Franchises

There are an estimated three quarters of a million franchises in the U.S. alone. While most people think of franchising in terms of fast-food restaurants, the U.S. Census Bureau notes that a number of other industries including fitness, beauty, and automobiles also rely on a franchise model to generate business. Our latest visualization illustrates how much it would cost to open one of the top 20 U.S. franchises based on initial investment requirements.

Q1 hedge fund letters, conference, scoops etc

Top 20 Franchises

This data for this visualization comes from Entrepreneur’s 40th annual Franchise 500® list. The methodology behind the ranking includes five main factors: costs & fees, size & growth, support, brand strength, and financial strength & stability. The final results were determined based on information provided by 1,094 franchisees nationwide. We used the investment information collected by Entrepreneur to map out the low-end investment cost and the high-end investment cost for the top 20 franchises.

Initial Investment Costs for the Top 10 Franchises

  1. McDonald’s – $1,058,000 to $2,230,000
  2. Dunkin’ – $228,621 to $1,717,103
  3. Sonic Drive-In – $865,000 to $3,641,300
  4. Taco Bell – $525,100 to $2,622,400
  5. The UPS Store – $168,885 to $398,323
  6. Culver’s – $2,043,000 to $4,652,000
  7. Planet Fitness – $969,600 to $4,242,500
  8. Great Clips – $136,900 to $258,250
  9. Jersey Mike’s Subs – $178,523 to $746,342
  10. 7-Eleven – $47,050 to $1,165,400

Most of the franchises on the top 10 list are in the food and beverage industry, with Great Clips, The UPS Store, and Planet Fitness being the notable outliers. Among the franchises in the top 20, Culver’s has the largest spread, with a $2.6 million difference between the lower end of investment and the higher end. By contrast, Kumon Math & Reading Centers had the smallest spread, with only a $79,382 difference. Within the top 20, Culver’s has the most expensive investment costs at both the low end ($2,043,000) and the high end ($4,652,000). At $40,000, REMAX has the lowest potential investment cost on this list. Keep in mind, these numbers do not take into account operating costs or ongoing royalty fees, so the total cost of owning a franchise will be much higher.

Curious to see how franchise costs vary by location? Check out another visualization here to see initial investment costs for franchises headquartered in different states.

Data: Table 1.1

Article by How Much

Saved Articles

The Life and Career of Charlie Munger

Charlie is more than just Warren Buffett’s friend and Berkshire Hathaway’s Vice Chairman – Buffett has actually credited him with redefining how he looks at investing. Now you can learn from Charlie firsthand via this incredible ebook and over a dozen other famous investor studies by signing up below:

  • Learn from the best and forever change your investing perspective
  • One incredible tidbit of knowledge after another in the page-turning masterpiece of a book
  • Discover the secrets to Charlie’s success and how to apply it to your investing
Never Miss A Story!
Subscribe to ValueWalk Newsletter. We respect your privacy.

Are you an intelligent investor?

ValueWalkPremium is a website and newsletter for smart investors like yourself. We focus on the latest hedge fund industry news much of which is not in the public domain and obtained via our sources.

We also have 10 years of resources on how to use this information to better your investment process.

Sign up for  today for only a few dollars a day and get a 3 day no obligation trial with a targeted 20% discount coupon code.

Cancel anytime during trial and you are never charged.

Limited time offer: For first 50 subscribers