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Popular Franchise Companies

Guest post by: John Henning

Article Overview: Owning franchises in the United States is just one way to raise capital for yourself and for your business. There are all sorts of reasons why one might want to invest in a franchise on their own, and there definitely are some popular franchises in the United States. If you have ever wanted to know about what's required when owning a franchise of a certain company then here is the information that you need. Here's a trivia question that you can take home to your family, though: what franchise has been ranked #1 many times over? You probably could very well guess what it is, and if you were thinking McDonald's Restaurant you were exactly right. There have several times when McDonald's Restaurant has been ranked #1 for the food category it's been placed in.

Popular Franchise Companies

Owning franchises in the United States is just one way to raise capital for yourself and for your business. There are all sorts of reasons why one might want to invest in a franchise on their own, and there definitely are some popular franchises in the United States. If you have ever wanted to know about what's required when owning a franchise of a certain company then here is the information that you need. Here's a trivia question that you can take home to your family, though: what franchise has been ranked #1 many times over? You probably could very well guess what it is, and if you were thinking McDonald's Restaurant you were exactly right. There have several times when McDonald's Restaurant has been ranked #1 for the food category it's been placed in, but here are some other interesting facts about owning a McDonald's franchise: The McDonald's Franchise

Did you know that there are more than 11,000 McDonald's franchises all over the United States? Indeed, McDonald's has seen tremendous growth in the restaurant level over dozens of years and it has essentially created a world filled with Chicken McNuggets, Big Macs, and Ronald McDonald characters. But it's actually easy to see why owning a McDonald's franchise is popular, and it's actually not as expensive as everyone would have thought. In order to have a McDonald's franchise about the only thing that is required of the franchisee is to have a cash liquidity value of about $100,000. In addition, the franchise fee for owning a McDonald's is set right at about $45,000 and the total investment that one is required to put forth when creating a McDonald's franchise restaurant altogether is somewhere between half-a-million dollars and one-and-a-half million dollars!

On the other hand, owning a McDonald's franchise restaurant is well worth the opportunity, which is why many franchisees see it as a golden opportunity. Considering the fact that many McDonald's franchises make well over $1 million per year, having a McDonald's franchise under your belt may be just the thing you need. In return, though, be prepared to pay a hefty royalty fee to the McDonald's headquarters, which is currently set right at about twelve percent!

Burger King is Much More

You may be surprised to find out, however, that when it comes to owning a franchise, Burger King is more all over. The franchise fee is more, the total franchise investment is more, but the only thing that is less is actually the royalty fee, which is just around five percent! Who would have thought that owning a Burger King, though, would be more expensive than a McDonald's franchise? In fact, a Burger King franchise costs just about double what a McDonald's franchisee is required to have available and pay.

Nevertheless, these are two of the most popular franchises throughout the United States. The McDonald's Corporation is definitely raking in the dough, but the comparison up against their fast food restaurant rival, Burger King, is interesting as well!

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Article Tags: top franchises



Related Forum Posts
Re: Enticing Franchises - Top 9 List - All Franchise listed above are in millions of dollars. Do you have the list of Franchise in thousands
Re: Info for would be franchisers... - [quote="Sebastien":1d29sdv1]Like Franchise Times, Franchise Update is a very practical magazine. There is no blah blah, just straight facts that anyone in the franchise community can relate to. I just want to mention that all these magazines are NOT franchisee oriented. I mean these magazines are for franchise professionals. If you're looking to buy a franchise, you won't find much information in there. To answer your question, getting published in Franchise Times was fairly easy. I don't want to brag too much but I think I am known in the franchise industry. I was the marketing guy at Franchise.com for a few years before joining my new company, the World Franchising Network. So people know me and I have a very good relationship with Nancy Weingartner, the Managing Editor at Franchise Times. I was talking with her at the last Franchise Expo South in Miami and she mentioned she'd like me to be profiled. I was like "ok, sure!". I like this franchise executive profile thing in Franchise Times as it is rarely BS. People are usually really natural in there.[/quote:1d29sdv1] Thanks for the follow up Sebastien! And I can't say that I'm surprised that networking with the right people and managing your relationships with them properly are the keys to being published. I guess the old adage holds true of "it's not who you know, but who knows you" that's important.
how much for a franchise fee? - Dear Colleague There is no easy answer to this question. Things to consider: [list=] The sizeof the Franchise Clent base Expected Turnover Intellectual Property costs (recoup) Number of Franchises Number of employees Original Set up costs Franchise admin costs An example: A franchise that I was involved in setting was to a simple "lawn mowing/home repair" franchise. The Franchise included national/local advertising - preparation of client lists - general admin - central accounting etc The Franchise involved 300-500 clients - and an annual turnover of about $300,000 . The annual franchise fee was $30,000. Hope that this gives you some idea Take care Ian[/list]
Re: Franchise Surveys - Another good tool to researching a franchise is to speak with their existing franchisees. This contact information is included in most Franchise Disclosure Documents. In order to get a Franchise Disclosure Document or FDD as it is often referred to, you will have to complete a basic franchise application. The franchisor will then usually provide you with the FDD at that time. Included in that book of information is a list of the existing franchisees, the contract, the investment information etc... This information is required by Federal Law to be disclosed to your prior to making a purchase. So be sure to do your research and start with the Franchise Documents to get the initial information.
Profiling Famous Women Entrepreneurs - Great suggestion Leanne! The PROFIT Companies are always great sources!


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