Here Are Your Chances of Owning These 7 Franchises

Franchises have been an attractive option for potential business owners for a myriad of reasons. And it could be attributed to the existing business model and support system provided by the franchisor to a potential franchisee. Although franchises like Dunkin’, McDonald’s, and Taco Bell continue to entice franchisees and expand their business to other locations and markets, it can be challenging to own a franchise. Then, what are your chances of owning a major franchise?

1. Chick-Fil-A

Chick-Fil-A is notorious for having a low acceptance franchise rate. Entrepreneur finds that only 75 to 80 applicants get approved as franchisees among the thousands that apply annually. In fact, it gets compared to Harvard’s acceptance rates. Business Insider and NerdWallet say it’s harder to get approved as a Chick-Fil-A franchisee than to get accepted at Harvard.

What makes Chick-Fil-A a franchise difficult to own?

It’s surprising that even if Chick-Fil-A has lower acceptance rates, they have low franchise fees too. In fact, their franchise fee is only $10,000.

One of the reasons Chick-Fil-A is difficult to own is because of the months-long, rigorous screening process. According to Semfia, one franchisee had to answer essays, undergo different interview rounds, and complete an intensive training program to open a Chick-Fil-A.

2. Popeyes

Entrepreneur reports that Popeyes is still looking to expand its stores. Based on their US franchise unit count since 2017, it appears that Popeyes opens on average 145 franchised units every year.

You have higher chances of franchising a Popeyes, if you do the following:

• Experience in running a business, preferably in the quick-service industry
• Must have liquid assets of at least $500,000
• Must have a net worth of $1,000,000
• NerdWallet states that potential franchisees MUST complete and submit all needed documentation and forms to move forward with their application

Based on their map here, Wyoming and Hawaii are US states that have lower numbers of stores.

3. Dunkin’

If you still want to buy a Dunkin’ franchise, here’s what you should know to get an opportunity to buy a franchise:

• Prior experience in food service management
• Knowledgeable in real estate and negotiating agreements
• Initial investment of $438,000 to $1,800,000

Although their tagline is “America runs on Dunkin’,” there are still states with no Dunkin’ stores, specifically in the Northwest. Then-Senior Vice President of Franchising and Development Grant Benson said that Dunkin’ didn’t have plans to expand in some states. 

Dunkin’ indicated on their website that the Northwest is part of their plans for future expansion. No word yet on when it will be open. Plus, ScrapeHero also reveals that several states, such as Wyoming, Nebraska, and Oklahoma, have fewer Dunkin’ stores in their states. Perhaps, it could be an opportunity for you to open one there.

4. McDonald’s

Although you could see and dine in McDonald’s in any state, the quick-service restaurant still opens opportunities for franchising. Similar to Dunkin’, McDonald’s isn’t rampant in the Western states. You may have a higher chance of opening a McDonald’s in states like Idaho, Montana, and North Dakota.

Entrepreneur states that if you want to own a McDonald’s franchise, you should prepare an initial investment of $1.4 to $2.5 million.

5. Cinnabon

Cinnabon is another major franchise to consider. According to Entrepreneur, so far, Cinnabon has 938 stores in 2022. Seeing that they’ve been on an upward trend since 2012, Cinnabon might still want to increase their stores in 2022. And if you want to open a Cinnabon, you have higher chances of opening one in the following states:

• Vermont
• Rhode Island
• Maine

These are states where Cinnabon hasn’t made its mark yet. Who knows, you might be the first to put Cinnabon on the map in those states.

If you’re interested in opening a Cinnabon, their initial franchise fee is $30,000. Be prepared for other fees, such as advertising and royalties.

6. The UPS Store

The UPS Store is a major franchise, considering they ranked second in the Entrepreneur Franchise 500 list. Unlike most food and beverage franchises, the UPS Store has a lot of opportunities in store for potential franchisees. In fact, they have openings for franchising in almost every state.

And if you want to start a UPS store franchise, costs vary depending on the location you want to claim. Franchise costs begin at $80,357 and could go up to $508,472. 

7. 7-Eleven

Convenience stores are another franchise option to consider. One of the major ones in the market is 7-Eleven. The convenience store chain has some opportunities for growth for those planning to franchise with them. You have higher chances of opening a 7-Eleven in these locations:

• Denver, Colorado
• Austin, Texas
• San Antonio, Texas
• Pittsburgh, Pennsylvania
• Florida

To start a 7-Eleven franchise, you should have around $50,000 to $750,000, depending on the store type you want to open. Plus, you also have to prepare around $29,000 for the downpayment on inventory, supplies, bonds, licenses, and permits.

Conclusion

There are plenty of opportunities for you to choose as a franchisee. But the competition is fierce among the big-name franchises listed above. And if you intend to open any of the franchises above, make sure to look at potential markets and the franchising fee. This way, you can prepare ahead of time and possibly own and open a franchise.