Examples of a Franchise in 2024 | Established and Emerging Franchises
In today’s dynamic business landscape, the concept of franchising has become an increasingly popular avenue for entrepreneurs and investors alike. Franchising offers a unique opportunity to tap into established brands while minimizing risk and leveraging existing successful business models. As we fast-forward to 2024, the franchise industry continues to evolve, presenting both familiar names that have stood the test of time and exciting emerging brands poised for expansion. In this article, we will delve into examples of franchises in 2024!
Three from well-known established giants such as McDonald’s, Chick-fil-A, and 7-Eleven; and three from promising emerging brands like Crumbl Cookies, QC Kinetix Regenerative Medicine Centers, and Signal. By exploring these diverse franchises across different industries – food service, healthcare services, and financial services – we aim to provide a comprehensive overview of the current state of franchising while highlighting some exceptional success stories.
Examples of franchises
Firstly, let us delve into the world-renowned McDonald’s corporation, an example of a franchise. McDonald’s is the quintessential American fast-food chain restaurant and one of the most successful examples of franchises in history. It was founded in 1940 as a restaurant operated by Richard and Maurice McDonald in San Bernardino, California, United States. Since then, they have been serving hamburgers, chicken nuggets, french fries, milkshakes, and ice cream under their franchise model. In the present day, it has over 36,000 locations in over 100 countries around the world, making it a prime example of global franchising success.
With over six decades under its belt since Ray Kroc founded it in 1955 as a small burger joint in California turned global phenomenon serving millions worldwide daily with their iconic golden arches logo still shining bright on every corner street around the globe.
McDonald’s has been a franchising company since 1955 and has relied on its franchisees to play a major role in the system’s success. Currently, about 95% of all U.S. restaurants are franchised to independent franchisees and about 5% are company-owned.
McDonald’s CEO
Chris Kempczinski is the current President and Chief Executive Officer of McDonald’s Corporation. He joined the company in 2015 overseeing global business strategy, business development, and innovation. In addition to this, he previously served as the President of McDonald’s USA and was responsible for the business operations of approximately 14,000 McDonald’s franchises in the US.
McDonald’s Investment Cost
The total investment to begin the operation of a traditional McDonald’s franchise ranges from $1,366,000 to $2,450,000, which includes an initial franchise fee of $45,000 that must be paid to the franchisor. The initial franchise fee for satellite locations is $500 (none if it’s on a Walmart location), for STR/STO locations is $22,500, and Franchisees with a ten-year term or less agreement will get a prorated initial fee.
There are over 36,000 McDonald’s franchises around the world, with about 13,000 of them in the United States. The company has a long history of franchising dating back to 1955 which has played a big role in its success over time.
With an average initial investment of about $1.8 million, it would take you 8.5 years or less to recoup your investment with a 10% or more profit margin.
Example of a Franchise: Chick-Fil-A
Next up is Chick-Fil-A – an example of a fast-food franchise known not only for its delicious chicken sandwiches but also for its strong values-driven approach toward customer service excellence. Despite being closed on Sundays due to religious beliefs since its inception by S.Truett Cathy in Atlanta back in 1967 when he opened his first restaurant, Chick-Fil-A quickly grew and became a successful franchise dwarfed by towering competitors at that time who never saw them coming!
The Chick-fil-A Franchise develops quick-service restaurants throughout the United States. It serves as an example of how franchises can specialize in specific menu items, such as their boneless breast chicken sandwiches. Chick-Fil-A is also famous for its waffle fries and a wide variety of sauces. Most of these restaurants are run by franchised operators (independent contractors), making it one of the many examples of franchises operating successfully in the fast-food industry.
Chick-Fil-A’s franchise model
Chick-Fil-A’s franchise model stands out due to its selective and rigorous application process. Unlike many other franchises, Chick-Fil-A handpicks its franchisees based on their character, leadership skills, and alignment with the company’s values. This approach ensures that each Chick-Fil-A location is operated by individuals who are dedicated to upholding the brand’s reputation for exceptional customer service and high-quality food. It serves as an exemplary example of a franchise that prioritizes finding the right fit over simply selling franchises to anyone willing to invest.
It is important to remember how competitive it is to open a franchise, such as Chick-Fil-A. Furthermore, it is easier to be accepted to Harvard than it is to open a Chick-Fil-A! Only about 0.4% of applicants are approved for opening this particular franchise. Meanwhile, when looking at Harvard, approximately 5% of applicants are accepted.
The Demands of Owning a Chick-Fil-A Franchise and Similar Opportunities
If you are considering opening a location under the umbrella of Chick-Fil-A, you should be prepared for the required commitment of working 60–70 hours per week operating your restaurant. While Chick-Fil-A helps provide financial resources when first getting started in their specific example of franchising, it is essential to keep in mind the significant time investment expected by owners once their location opens.
When applying for a franchise opportunity like Chick-Fil-A or any other similar franchises out there, you should anticipate going through a serious vetting process. This may include interviews with representatives from the franchisor company and credit checks, among other assessments.
Additionally, speaking with other operators who have experience in that specific example or examples can also be part of the evaluation process. If you become an owner within this particular example or others alike in terms of franchising opportunities available out there today, expect continuous evaluation from the company based on your performance as well. Excelling may even lead them to grant you additional rights and opportunities, such as opening more locations within that same brand’s network.
Bear in mind that it typically takes between 18–24 months before officially launching your standard franchise outlet under their nameplate after approval has been granted throughout all stages involved here, including training periods where many new owners shadow veteran stores’ operations, so they can hit the ground running once their store opens its doors.
Chick-Fil-A Franchise Fee charges $10,000 for the initial fee and $5,000 for any additional franchise unit. Of the initial fee of $10,000, $5,000 is considered working capital and can be received back at the end of the term at the franchisor’s discretion. It is rare for a Chick-Fil-A franchise owner to operate more than two locations.
Chick-Fil-A Investment Cost
The total investment necessary to begin the operation of a franchised Chick-fil-A restaurant business is from $219,055 to $2,912,697. However, the Chick Fil A franchise is only responsible for $10,000 of the Chick-Fil-A Franchise Fee. Chick Fil A corporation will invest up to $2 million or more to build the restaurant! This helps overcome traditional financial barriers of entry for potential franchisees, but opening a Chick-Fil-A is very competitive.
Example of a Franchise: 7-Eleven
Moving away from food service but staying within convenience retailing is 7-Eleven, an example of a stalwart franchise. 7-Eleven (also known as 7-11 or 7-Eleven) began its story in 1927 when Joe C. Thompson started selling milk, bread, and eggs across its stores. Previously, they had only sold ice blocks. With the growing success of the store’s innovation, Joe Thompson was eventually able to buy Southland Ice Company and convert it into Southland Corporation – a company focused on opening convenience stores across the state. By 1946, this new store model had expanded significantly across several locations.
This success led the stores to extend their opening hours from 7 am until 11 pm, seven days a week – hence the name “7-Eleven.” Franchising began in 1964 after the Southland Corporation purchased an additional 126 Speedee Mart franchised convenience stores in California, which were then incorporated into the business model of 7–Eleven. Today, with over more than nine thousand stores across the United States and additional units spread throughout Europe, Asia, and Oceania continents; The brand continues to be headquartered in Dallas, Texas under Joseph DePinto who has been serving as President and CEO since December 2005.
7-Eleven Investment Cost
The total investment amount required to open a 7-Eleven franchise ranges from $47,050 to $1,165,400. This includes the company’s franchise fee, which can range from $0 to $1,000,000. It depends on several factors, particularly the location the investor will be pursuing. Because 7-Eleven offers multi-unit investment opportunities in addition to single-store purchases and business conversions, candidates must have minimum liquid assets ranging from $50,000 to $250,000.
The annual revenue across all 7-Eleven’s stores in 2019, the last year 7-Eleven publicly disclosed earnings, was $4.20 billion, while the average gross profit from 7-Eleven’s franchised stores in Wisconsin for example, ranged from $217,080 to $435,394 out of which 50%-60% of stores within this group met or exceeded this range. Based on the median sales estimated for 7-Eleven’s franchise locations, at an average of a 5% profit margin, it will take around 9 years to recoup your investment. This is longer than other franchise opportunities. You may not get a 5% profit margin, which would elongate getting a return on your investment.
Once the store has been built and operations begin, the parent company receives a royalty fee from the franchisees. This varies according to the growth percentage of the store’s Gross Profit for that month. And an additional marketing fee of 1% in return for the franchisor’s marketing services.
Examples of Emerging Franchises
Shifting gears, let’s explore some emerging brands that have been making waves in their respective industries. Crumbl Cookies has taken the dessert scene by storm with its delectable and ever-changing menu of gourmet cookies. QC Kinetix Regenerative Medicine Centers are revolutionizing healthcare services through cutting-edge regenerative treatments for joint pain, athletic injuries, and chronic conditions. Lastly, Signal is a franchise offering security services.
Example of a Franchise: Crumbl Cookies
Crumbl franchise is a prime example of a rapidly growing franchise with over 300 locations across the United States. The company, founded in 2017 by Blake Robinson and Bryan Blakely, serves as an excellent model for entrepreneurs looking to create a successful cookie shop that offers something unique and delicious. Crumbl Cookies quickly gained popularity for its ever-changing weekly flavors, making it one of the standout examples of franchises in the industry. Additionally, this thriving franchise extends beyond cookies to include a variety of other delectable products such as ice cream, milk, and coffee.
Crumbl Cookies has become a sought-after destination for both locals and tourists alike. Their mouthwatering cookies have garnered attention from renowned publications including Forbes, The New York Times, and The Wall Street Journal—solidifying their status as one of the most notable examples within the world of franchises. Whether you’re seeking a delightful treat or simply want to enjoy some quality time with loved ones over coffee at an exceptional franchise establishment like Crumbl Cookies—it’s undeniably worth considering!
Crumbl franchises perform
Did you know that Crumbl franchises perform 3X better than other cookie franchises? Want to know the franchise costs and fees? The total investment amount to open a Crumbl franchise, including additional working capital, is $367,666 – $1,404,333. Crumbl charges $50,000 for the regular initial fee, but for territory reservation agreements, which allow for franchisees to open multiple Crumbl units, the initial fee is $150,000 for the opening of 3 locations.
The median Crumbl Cookie Owner in 2022 earned $1,796,339 in total revenue with a net profit of $256,029. The high is $4,022,090 in total revenue and $1,117,012 in profit. The low end is $589,291 in revenue with a $160,202 net loss. Given the $367,666 – 1,404,333 investment to open a Crumbl Franchise, that is a pretty standard return on investment. You used to be able to make a lot more money with a Crumbl Franchise, but now it is falling behind its old figures and more in line with industry standards, especially as the higher end of cost has ramped up from around $650k to almost 2.5x of $1.4 million.
Crumbl success
Crumbl has had tremendous success in the few years since it opened its first location in Utah. The low start-up cost to open a franchise with a significant annual profit makes it an ideal investment opportunity for anyone looking to open a Food and Beverage Franchise. That said, it is still a relatively new concept when compared to franchises that have thousands of locations across the country. Crumbl provides extensive training on how to maintain quality standards, and an owner needs to have an effective management structure and plan to attract a customer base.
Thankfully, Crumbl has done an excellent job marketing the brand on social media platforms such as TikTok. Ultimately, Crumbl has the potential to be one of the biggest desert players for years to come, and be sure to take advantage of this sweet opportunity.
Example of a Franchise: QC Kinetix
QC Kinetix provides “non-surgical regenerative medicine services.” They provide services like Joint Pain Treatment, Hair Restoration, and Men’s Health Services. Justin Crowell launched QC Kinetix franchise in Charleston, South Carolina, in 2017 with Tyler Vail and Dr. Richard Schaffer as a regenerative medicine concept, providing treatments for various musculoskeletal and joint pain issues as an alternative to pain medications and surgery.
Over 26 years, the current CEO, Scott Hoots, worked his way up from a Domino’s pizza delivery driver to Regional Vice President of the chain, overseeing 1,500 franchise stores. Hoots was also the VP of Franchising for American Family Care and most recently served as President of Pet Wants, a boutique pet food franchise system based in Cincinnati, before coming to QC Kinetix.
They began franchising in 2020 and quickly grew. With the help of Hoots, QC Kinetix franchise’s systemwide sales hit $8 million in 2020 from nine corporate clinics and grew to $27 million in 2021 with the addition of franchise locations, Crowell told Franchise Times in 2023.
Unfortunately, the excitement about stem cells has outpaced the science in many areas of health care. In addition, due to ethical issues associated with the use of fetal tissue, the U.S. Food and Drug Administration (FDA) has severely restricted its use. Adult stem cells have fewer regulatory issues, but the FDA has prohibited “manipulation,” which includes the processing and culturing of these cells. Therefore, obtaining an abundant source of concentrated stem cells can be difficult.
Initial QC Kinetix Investment Cost
The initial QC Kinetix Franchise Fee is $55,000. The estimated total investment necessary to begin the operation of a QC Kinetix Franchise ranges from $220,130 to $328,830. Based on the median sales provided by QC Kinetix’s franchise locations, at an average of a 17.5% profit margin, it will take around 3.5 years to recoup your investment. This is in the same range as other franchise opportunities. You may not get a 17.5% profit margin, which would elongate getting a return on your investment.
QC Kinetix is trying to break into the Physical and Alternative Therapy market. However, there is controversy surrounding the franchise. While there are many positive reviews, the negative reviews of QC Kinetix franchise by medical doctors and patients draw into question the effectiveness of their services.
Example of a Franchise: Signal
Signal franchises provide security services that include patrol and dedicated service. Specifically, Signal’s locations engage in the provision of onsite and off-site surveillance, executive security services, and security consulting services for contracting clients. Signal 88 is a security company that was founded in 2003 by Reed Nyfler. McCarthy Capital Fund V is a minority investment partner for the company.
Signal franchises offer a wide range of security services to meet the needs of their clients. One example of the franchise’s offerings is its patrol service, which involves trained and licensed officers conducting regular patrols in designated areas. This can include residential neighborhoods, commercial properties, or even event venues.
In addition to patrol services, Signal franchises also provide dedicated security personnel for clients who require round-the-clock protection. These security professionals are highly skilled and experienced in handling various situations that may arise, ensuring the safety and well-being of individuals or property.
Another example of a franchise offering from Signal is its surveillance services. Franchise locations are equipped with state-of-the-art technology that allows them to monitor both onsite and off-site locations remotely. This can be particularly beneficial for businesses that want to keep an eye on their premises during non-business hours or when they are away on vacation. Furthermore, Signal 88 franchises offer executive security services for high-profile individuals such as CEOs or celebrities who may face potential threats due to their status. These specialized teams provide discreet protection while maintaining the utmost professionalism and confidentiality.
Signal Franchise Investment Cost
The initial Signal Franchise Fee is $85,000 (minimum) to $170,000 (or higher depending on territory size). You have to pay this upfront fee when opening a Signal franchise. The estimated total investment necessary to begin the operation of a Signal franchise ranges from $93,200 – $241,150. The following costs are part of the upfront costs included in the initial investment for a Signal. Many of these are one-time fees that are needed to launch the franchise.
Signal was ranked as the best franchise opportunity by Entrepreneur and has good returns. We recommend talking to 3 – 5 other Signal franchisees before starting a franchise.
Conclusion
In conclusion, the franchising landscape in 2024 showcases both established giants that continue to dominate their industries and promising emerging brands ready to disrupt the market. The examples we have examined – McDonald’s, Chick-Fil-A, 7-Eleven alongside Crumbl Cookies, QC Kinetix, and Signal – serve as testaments to the enduring appeal of franchising across various sectors. While each brand brings its unique strengths to the table, the common thread among them lies in its ability to adapt and evolve with changing consumer demands and maintain a commitment toward delivering exceptional products or services. Aspiring entrepreneurs looking for lucrative business opportunities can draw inspiration from these franchises’ success stories while keeping an eye on future trends shaping this dynamic industry.
