Do You Want to Grow Your Company Bigger? Then Use Franchising

23 minute read

 

Best American franchises in 2018

Large initial investment (over 500,000 USD)

  Name Average init.investment 5 year growth rate Units Industry
1 Freddy’s Frozen Custard and Steakburgers 1,282,165 31.3% 282 Food
2 Culver’s Butterburgers & Frozen Custard 3,347,500 6.5% 641 Food
3 Planet Fitness 2,545,915 22.0% 1,494 Fitness

 

Medium initial investment (150,000 – 500,000 USD)

  Name Average init.investment 5 year growth rate Units Industry
1 Sport Clips 286,550 12.3% 1,700 Barber shop
2 School of Rock 237,975 18.5% 176 Music school
3 Nothing Bundt Cakes 398,387 32.1% 239 Bakery

 

Small initial investment (under 150,000 USD)

  Name Average init.investment 5 year growth rate Units Industry
1 Right at Home 108,575 14.8% 475 Home maintenance
2 Soccer Shots 41,842 11.1% 195 Kids football school
3 Mathnasium Learning Centers 130,930 19.9% 797 Learning Centers

 

Worst American franchises in 2018

Large initial investment (over 500,000 USD)

  Name Average init.investment 5 year growth rate Units Industry
1 Godfather’s Pizza 631,850 -7.7% 514 Food
2 GuestHouse 5,148,250 -15.6% 29 Accomodation
3 Epcon Communities 2,650,500 -9.76% 79 Construction

 

Medium initial investment (150,000 – 500,000 USD)

  Name Average init.investment 5 year growth rate Units Industry
1 Blimpie 271,615 -16.05% 261 Food
2 Games2U 269,575 -16.75% 32 Entertainment
3 Country Hearth Inn 310,547 -13.19% 41 Accomodation

 

Small initial investment (under 150,000 USD)

  Name Average init.investment 5 year growth rate Units Industry
1 Donut Connection 67,457 -12.93% 73 Food
2 The Growth Coach 68,145 -14.26% 63 Coaching
3 American Express Travel 40,000 -19.82% 26 Travel services

Source: Forbes.com. America’s Best & Worst Franchises to Buy 2018.