Most Expensive Franchise

Guide To The Most Expensive Franchise Businesses

Most Expensive FranchiseHave you ever wondered which franchise is the most expensive franchise? People usually associate franchises with small, manageable operations, such as fast food chains, mall kiosks, or even brand representatives that run their businesses out of the home.

However, many people do not realize that certain franchises can cost many millions of dollars to open and operate, and a few of them might surprise you.

No if we are speaking about one physical entity, then buying into a hotel franchise is your best bet for the most expensive franchise, but owning multiple convenience stores or restaurants can also cost you millions.

Most Expensive Franchises List

Below are the top franchise opportunities that require a lot of money to invest in.

As you drive along the interstate or through your own town, you may pass a Denny’s, KFC, or Hardee’s. Those establishments are some of the most expensive franchises in the food industry to open – with an entry price ranging from $1.5M on up to $4M. That is just the range for the startup cost. Add into this royalty fees that franchise owners pay to the parent company – which can be upward of 3%, financing for property, build-outs, inventory, etc., and those “fast food” restaurants command a pretty penny. The other reason for the high price is that the parent companies hold each franchise owner to specific standards in terms of service and quality of food, to ensure that all customers get the best, whether they are at a Denny’s (for example) in Bethlehem, PA or in Cheyenne, Wyoming. While all of this may seem very cost prohibitive, the most expensive franchises in the fast food industry also bring in many times the initial cost in profits every year. Other food franchises with more universal recognition (Burger King, McDonald’s, Pizza Hut, etc.) have even higher entry fees depending on location, market saturation, economic demographics, and other factors.
24-hour convenience stores – such as AMPM, which has establishments across the United States and South America – rank as the most expensive franchises that straddle the retail and service industries. Convenience store franchises can have an initial startup fee upward of $7.5 million and a 5% royalty fee. With all of that money being invested into one of the most expensive franchises, the revenue for owning a high-end convenience store averages to hundreds of millions of dollars every year.
The storage industry has grown up from rows of garages secured by inexpensive padlocks. Amazing Spaces, based out of Houston, Texas, boasts clean and secure facilities that have easy-to-navigate loading areas, and each storage unit is furnished with its own door alarm. Renting out space for people to keep their things is a booming industry, and having the highest ranked storage franchise comes at a price. Opening an Amazing Spaces franchise has an $8.5 million entry fee, but the low maintenance combined with the price people are willing to pay to ensure their belongings stay safe more than makes up for the initial cost.

The hospitality industry serves people traveling for both business and pleasure, so there is never a shortage of customers. Choice Hotels International (which holds brands such as EconoLodge, Clarion, Comfort Inn, and many others under its umbrella) combines great rooms and service at fantastic prices for all budgets. As one of the most expensive franchises around, Choice Hotels International commands a price over $14 million as an entry price. Training, property, construction, branding, staffing and supplies are figured into this price – but with yearly revenues of over $100 million every year, it is easy to see why the mid to upper tier hospitality franchises are some of the most expensive to open. Beyond that, Hilton hotels, which have an internationally award-winning reputation, are the most expensive franchises in the hospitality industry, with starting rates of over $50 million.

Why The Most Expensive Franchises Cost So Much

At their hearts, most branded franchises are the same – they are extremely refined business models that remove any guesswork out of being an entrepreneur, and follow streamlined formulas and practices to offer customers what they expect from the brand while getting the most money for the volume of business.

So why are the entry fees so expensive?

The most expensive franchises all have to ensure that new operations are capable of living up to brand expectations – those set by the parent corporation and those that customers have about the franchise. On top of brand expectations, the most expensive franchises also have to consider the cost of insurance, marketing campaigns directed at specific locations, the cost of training new owners (and their staff), the logistic of establishing relationships with vendors, and everything else involved with setting up a new franchise operation.

Financing also plays a tremendous role in determining the entry fee for the most expensive franchises. Hotels need to pick prime locations, and then have to build from the ground-up to make a building that matches the corporate specifications. Storage facilities need a lot of land, that is easily accessible as well as secure. Restaurants need to have a location that isn’t overlapping and cannibalizing the customer base from one of their other franchise operations, plus construction. Often, the most expensive franchises will put up a portion of the financing needed, with the franchise owner covering the bulk of it, combined with external financing from banks and commercial lenders.

Low Cost Business Opportunity With A Lucrative Return

If you are considering owning a franchise, but do not want to gather the funding needed to open one of the most expensive franchises out there, consider the Commercial Capital Training Group.

The Commercial Capital Training Group (CCTG) is similar to a traditional franchise in that it provides all of the training, resources, tools, and support you would expect from the most expensive franchises, but with a very low entry cost and none of the royalty fees.

CCTG graduates can open their own businesses with their own unique branding while still having access to all of the resources and and support, as well as the ability to make unlimited income.

If the idea of getting the training you need to run your own business and achieve financial independence appeals to you, check out what the Commercial Capital Training Group has to offer.

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