Valley Forge Mailboxes Blog, Valley Forge PA

Top 10 Franchise Opportunities for 2009

Which Opinion Counts the Most?
Over the years, late night television host David Letterman’s “Top 10 List” has become one of the most talked-about social media subjects around.  The best “this” or “that” is always an interesting topic of conversation, and the same is true when it comes to franchises.  As you cruise around the Internet, you will come across dozens of sites that place a claim on naming the top ten franchise opportunities.  Everybody has an opinion and may even use different criteria to reach that goal – the number of franchises in existence, gross annual sales, or the “hottest” franchise opportunity based upon the number of Google searches.  But the recognized gold standard in this field has to be the list compiled by Entrepreneur magazine.  Every year they name a “Franchise 500,” and this year is no exception.  Here is their Top 10 for 2009.

1. Subway
Thanks to an innovative national marketing campaign (remember Jared’s weight loss program?) and freshly made sub sandwiches – plus a wide selection of salads – this fast-food restaurant chain has been around since 1965.  The company began franchising in 1974 and has more than 21,000 franchises in the United States.  The company charges a franchise fee of ,000, with ongoing royalties of eight percent based on gross annual sales.  One’s total investment will run from between ,000 and 8,000.  Subway offers franchise opportunities in nearly every U.S. state.

2. McDonald’s
If you have never heard of this fast-food hamburger restaurant, welcome to Earth!  The company was founded in 1955 and has dominated the burger market ever since.  Even though their menu includes lots of other items – chicken sandwiches, fries, milkshakes, salads, fruit cups, and various breakfast selections – the hamburger is at the center of this universe.  The company charges a franchise fee of ,000, with ongoing royalties of 12.5 percent based on gross annual sales.  One’s total investment will run from between 0,000 and .8 million.  A franchise opportunity awaits residents of every U.S. state, plus worldwide opportunities exist as well.

3. Liberty Tax Service
Every U.S. citizen who earns some sort of income is required to file a tax return each year.  As tax laws become more and more complex, people are turning to experts in order to satisfy the I.R.S.  Originally named Jackson Hewitt Tax Service when it was founded in 1972 (and began franchising a year later), the company changed its name after acquiring a similar business that was operating in Canada.  The company charges a franchise fee of ,000, with variable ongoing royalties based on gross annual sales.  One’s total investment will run from between ,000 and ,000.  Liberty Tax Service has franchise opportunities for anyone living in the U.S. or Canada.

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4. Sonic Drive-In Restaurants
This company began as a root beer stand in Shawnee, Oklahoma, in 1954.  The owners franchised the concept in 1959, and today there are close to 3,000 franchises across the country.  The company charges a franchise fee of ,000, with ongoing royalties ranging from two percent to five percent, based on gross annual sales.  One’s total investment will run from between .2 million and .2 million.  Sonic currently seeks out residents of Canada, New Zealand and Australia, offering exclusive territories in its franchise opportunity.

5. InterContinental Hotels Group
This hotel chain started life overseas in 1952 as a branch of Pan-Am Airlines.  Several sales, mergers and reorganizations later, this hotel conglomerate includes among its properties such familiar brand names as Holiday Inn, Crown Plaza, Staybridge, Candlewood, and the flagship InterContinental.  There are more than 2,600 franchises in the U.S. alone, as well as another 800-plus in foreign countries.  Franchise fees and total investments vary widely due to the complexity of each individual property.  The company charges an ongoing royalty of five percent based on gross annual sales.  InterContinental is seeking franchise opportunities in Oregon and assorted worldwide locations.

6. Ace Hardware Corp.
Despite the growth of so-called big box home improvement businesses, people still like to shop at their local hardware stare, where they enjoy personal service and receive expert advice on how to stop that leaky faucet.  The company got its start in 1924 and decided to franchise the concept in 1976.  There are currently more than 4,200 U.S. franchises.  The company charges an application fee of ,000, and one’s total investment will run from between 0,000 and .1 million.  Ace Hardware has a franchise opportunity for prospective owners in every U.S. state.

7. Pizza Hut
This monster corporation got its start as a single pizza shop in Wichita, Kansas, back in 1957.  The owners soon realized their potential and began franchise operations two years later.  This largest pizza restaurant chain on the planet has nearly 10,000 franchises, and the recent adoption of “express” and kiosk locations has the ability to bring Pizza Hut products to more people than ever.  The company charges a franchise fee of ,000, with ongoing royalties of six percent based on gross annual sales.  One’s total investment will run from between 7,000 and .9 million.  Pizza Hut is seeking franchise opportunities in Oregon and assorted worldwide locations.

8. The UPS Store / Mail Boxes Etc.
This company offers all kinds of services to the public, including the sale of packing materials, copying and printing services, mailbox rentals, and the ability to ship pretty much anything pretty much anywhere by a wide variety of carriers.  The company began in 1980 as a private alternative to U.S. Postal Service operations.  The company charges a franchise fee of ,000, with ongoing royalties of five percent based on gross annual sales.  One’s total investment will run from between 5,000 and 5,000.  The UPS Store has a franchise opportunity for prospective owners in every U.S. state, plus various locations worldwide.

9. Circle K
The Southwestern United States was the original home to this convenience store chain, founded in 1951.  Although a relative newcomer to the franchise model (1995), Circle K stores can now be found throughout the west and south as well.  The company charges a franchise fee of ,000, with ongoing royalties of four percent based on gross annual sales.  One’s total investment will run from between 1,000 and .4 million.  In a nationwide expansion mode, Circle K is now seeking franchise opportunities across the U.S. and in assorted worldwide locations.

10. Papa John’s International
This pizza chain concentrates primarily on delivery and takeout, having gotten its start in Jeffersonville, Indiana, in 1985.  The company charges a franchise fee of ,000, with ongoing royalties of five percent based on gross annual sales.  One’s total investment will run from between 5,000 and 0,000.  Papa John’s has a franchise opportunity for prospective owners in every U.S. state.