Franchises give many Americans the opportunity to become their own bosses and determine how well they can run a competitive business. In a nutshell, they continue to heavily impact the nation’s economy. According to a June 16, 2014 article published by Forbes, “an estimated 770,000 franchise establishments will employ 8.5 million Americans and create $840 billion in output.”
Whether you have ever thought about running this type of business, or if you’re just curious about which franchises are succeeding or struggling, you might want to review the summary below of some of these companies that made this list. After some of the most successful franchises are referenced, you’ll also find a second list noting which franchisees may be struggling to keep their businesses afloat. Finally, there’s some brief information about the challenges all franchises must sometimes face.
Franchise Chains Still Thriving on Top
Among the companies that are doing quite well (with start-up costs ranging between about $150,000 to $500,000 and up) are:
Franchises offering in-home care to people of various ages. BrightStar is doing quite well, in addition to Right At Home and Synergy HomeCare;
Fitness and health-oriented services. These thriving franchises include: Massage Envy; Retro Fitness, Anytime Fitness, and Planet Fitness;
Food and beverage companies. Jack in the Box is still doing quite well, along with Jamba Juice, Which Wich, Jimmy John’s, Dutch Brothers Coffee, and Chester’s;
Specialty services for home or personal needs. MaidPro, Oxi Fresh Carpet Cleaning; Sport Clips (haircuts for men and boys); Batteries Plus Bulbs; and Dryer Vent Wizard.
Currently Struggling Franchises – Although Some May Still Succeed
Food, Beverages and Other Treats. Shoney’s is a good place that’s still trying to hang on, along with: Steaks Escape; Cookies by Design; Great Steak & Potato Company; Tastee Freeze; Bennigan’s; La Salsa; It’s a Grind Coffee House; Atlantic Break Company; Ground Round Grill & Bar; Bonanza Steakhouse; and Samurai Sam’s Teriyaki Grill;
Fitness or Special Health/Beauty Services. The once highly fashionable Curves workout franchise for women is struggling, as well as: Beauty World and Desert Suns Tanning Salons;
Companies providing services for your home/real estate or furnishings. House Doctors which provides handymen to customers is trying hard to remain afloat, along with ERA Real Estate; Realty World; FastFrame; and Dreammaker Bath & Kitchen.
Common Concerns to Both Successful and Struggling Franchise Owners
According to the same Forbes articles referenced above, franchise owners frequently complain about “the constant royalties and advertising fees [owed] to the home office – up to $1,200 a month when they prosper, $300 even [when] they don’t.” Furthermore, an attorney quoted in this same article said that one of the darker secrets about franchising profits is that franchisors really only make a lot of money if they’re “requiring franchisees to buy products and services from either the franchisor directly or from franchisor-designated suppliers.”
If this type of business interests you, be sure to first meet with your Peachtree City business attorney and your accountant so you can be sure you really have enough capital to invest in this type of business – and are willing to keep buying supplies you may not always need or want. Of course, you also have the option of asking your lawyer to negotiation better (or more agreeable) contract terms on your behalf.
To obtain help with handling all of your Georgia business planning needs, please contact Shane Smith Law today. You can schedule your free initial consultation with a knowledgeable Peachtree City estate planning attorney by calling: (770) 487-8999.