7 fast-growing franchises

Thinking about starting a small business? Consider one of these franchises, which have relatively low startup fees and good growth prospects.

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VIDEO ON MSN MONEY

146Comments
Oct 16, 2012 7:56AM
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Hi, I'm a former Business Lender and I've read MANY franchise circulars in my day. The question has to be... buy into a franchise or start my own from scratch? I have TWO small businesses of my own and of my own making. A franchise is great if you can afford to buy multiple locations and are willing to let control go to others. First, all franchises actually ARE businesses, so they make their income from your efforts. Usually... off the top. Second, they often have requirements like buying inventory from specific sources, which is like getting paid in company coins you can only use at the company-owned store and subject to their supply and price demand. Do franchises hold value? Not really. After 2007, many that cost $300,000 or more were being forced-sold for 90% less. When you consider that a business loan is typically secured by YOUR assets, that 90% haircut was someone's life savings. Second... why would a franchise appreciate? Anyone could buy one from the source and follow your same course. Being a start up today isn't as hard as it used to be. Places like your Chamber of Commerce and County Offices will guide you to resources like SCORE- who will help you write a Business Plan and the SBA- which offers government-sponsored financing. A blend of brick and mortar and online business planning are a winning combination. Let's also separate small business from franchise. A small business you buy from the owner isn't a franchise. Many terrific and well-run businesses are in the Maturity Arc of their life cycle. Do some proper diligence or use professionals to help you do it, renew the cyclical aspect of the business (New Owner) or just slip in unnoticed and continue business as usual. IT'S A FACT that the best time to start up is at the bottom of an economic cycle because as we recover, you grow, but what you learn during the low period is priceless. Good luck and no... network marketing is a scam. Services are generally too. We are enduring a period where drop shipping, imports and colluded services have destroyed what once was in America. That's a train headed off the cliff. Learn to make something or to sell what is made locally, it's a win win win for you and where you live. Shortcuts using paper and button pushing and false administration? Not a good idea.
Oct 12, 2012 10:11AM
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most of those franchises are concepts one could start themselves WITHOUT bothering with any franchise fees or continued royalty payments. 

 

so WHY buy those franchises?  that's the deeper story today's reporters find "too hard" to ask and report on. 

 

simple "people magazine's fluff reporting"

 

.......move along people.........

Oct 16, 2012 10:06AM
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For several of these businesses they are offering you nothing else but a "brand Name".  SAVE your money. You can start a business with much less money and grow your own business name! I own my own retail store, I started it with a $100 in 2005, now I have grown it to be worth $75,000 in 7 years.  I don't owe anyone any money as I have purchased my own products out of the sales that i have made on my existing product and kept rolling the money over.  Be SMART people, do not go into debt and grow your business at a nice even pace.  If you stick to it, you will get there!
Oct 12, 2012 2:45PM
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This is the most uninteresting group of alleged business that I have seen in a long time. Usually, there are a couple that sound reasonable.
Oct 16, 2012 5:36AM
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Small businesses don't have the money to pay $15-$20/hr to mow lawns because nobody will pay that much to have their lawns mowed.  Maybe US workers need to understand that they don't need to smoke cigarettes, carry the newest cell phone, drive the biggest truck with the highest gas mileage, not use credit cards to make purchases they can't afford (like the newest video games) and make smarter choices when spending their money so that illegal labor wouldn't seem like a good option.  "Obbutwad" as you call him needs to start helping the people who help themselves and let the people to lazy to work for less than $15/hr. live in the streets. 
Oct 16, 2012 9:39AM
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"I've started several small businesses over the years. Some have worked quite well. Others have not. However, I don't have to spend $100K to find out whether or not my business will succeed. If a franchise does not work, you will lose $100K. If my business idea does not work, I lose about $1,000"

AWESOME!!! I'm so glad you posted this. As a Business Lender I read a LOT of well-written business plans no one bothered to read themselves or follow. MILLIONS get lent based on the prospect of assets as security and the good intentions of the borrower. I started BOTH of my businesses at a hobby level to gather skills and deal with obstacles during a reasonable Risk level. Often the best find a way through those obstacles and grow knowing that others will need to encounter them to compete. It's called-- Free Enterprise. Inheriting your dad's giant business isn't the same thing. Getting hired-in at the top- isn't the same thing. Losing is learning and the mettle that success is forged from. Luckily, today we can blend street and virtual dynamics to see our businesses grow instead of fail (and lose too much). Readers need to realize that the franchise option starts as a turn-key venture and they pay dearly for it. A self-started venture is all you (or me) and we know it intimately. Great post, CBOT!
Oct 16, 2012 10:15AM
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For everyone who thinks that voting for Obama is the right way to go.  Don't you think it's interesting that companies are starting test markets where they do not hire any full time employees?  This way they don't have to pay any health benefits...Thank you Obama.
Oct 16, 2012 10:16AM
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Most of the businesses suggested have high franchise fees.  These can be started without a franchise.  Use the franchise fee money to research and get advice and start your own business.  That way you will last longer while trying to build a customer base.
Oct 16, 2012 6:01AM
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If you need a franchise for any of these so called, “business opportunities,” chances are you shouldn’t be in business in the first place. These are all BS businesses. Want a real franchise with a relatively low start-up cost, try ‘Inks-To-Go’ or something like that. It’s a viable service that’s in demand. The only one who stands to profit here is the franchiser, not the franchisee.

Oct 16, 2012 9:21AM
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I've started several small businesses over the years. Some have worked quite well. Others have not. However, I don't have to spend $100K to find out whether or not my business will succeed. If a franchise does not work, you will lose $100K. If my business idea does not work, I lose about $1,000. During the past ten years, I've made about $50K per year working out of my house. It is definitely possible to start a successful business working from home. It's not easy but it is possible. I'm living proof.
Oct 16, 2012 10:54AM
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The idea of a franchise is to use a system from someone who already made a business.  Of course you could do these businesses on your own, but you pay for a much higher chance at success.  Nothing is guaranteed in life, but you can always increase your odds.  90% of small business fail, 80% of franchises succeed.

Stick to the topic of the article, and quit posting stupid opinions.

Oct 16, 2012 10:07AM
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franchises like the ones in this article provide nothing one cannot do with out their help....So you pay for NOTHING....
Oct 16, 2012 9:21AM
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Who in the world has that kind of money?
Oct 16, 2012 10:34AM
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VOTE  well we do have a "CLUE" whats been instore for us in a past Obama Administration and it wasn't good at all!!!   Im sure a second chance will not be any better.  He can continue blaming it on everyone else or MAN-UP and take some responsibilities for his own actions, or in this case lack of action.  Our economy is nothing at all to brag about, maybe CRY ABOUT.    In fact it's the worst its ever been under his lack of experience.   If you started a business with your own hard earned money and hire Obama to be the CEO and he produced the same job preformance for your company as he did for our country, you'd FIRE him in a minute.  Funny when it's not your money, but the money of others, you don't seem to really care!   I guess it really does matter hiring someone with actually experience.   I doubt you'd hire a doctor to preform brian surgery on you that had no experience.  
Oct 12, 2012 1:09PM
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Probably one of the biggest employers of illegal aliens so this company would be anti-American.  I wouldn't invest one dime in this company!  Stay away from companies that hire illegal workers instead of American workers who need the jobs.
Oct 12, 2012 8:52AM
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Except for the cruise line, these are all businesses geared for a poor economy.
Oct 16, 2012 12:07PM
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Funny How I am a pig, because I dont want share my money or welth as it is, I have lost 2 business's several Great employees, home and property, I have to start all over again so I can be a PIG and employe some more great employees!

Wow! sound like I am a pig republican, triing to  help others while helping my self!  I am confused. 

I guess I should get in line with my hand out! for the Hand Out!

Oh! and vote for Noboma! 

Sorry! I just cant stop carring for others, my country and my family!

Oct 16, 2012 7:01AM
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The problem with franchises are their capital structures.  Franchise businesses just like specialty retailers etc only put up 4/10ths of the required capital actually required for them to be an economic entity.  The remaining 6/10ths of the infrastructure capital required for them to be viable as an economic entity is always being born by someone else.  Even worse is the government programs put other peoples into the mix as well.  Thereby allowing businesses to be formed with only 2/10ths the actual capital charge being allocated to the party receiving the economic benefit.
Oct 16, 2012 11:40AM
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Why be like Mr. Romney, why not be like Obama.  That is where you can pocket BILLIONS of dollars and don't have to answer to anyone about it.  He can go on lavish vacations where the people of these United States HAS no choice than to pay th expenses.  He can do what ever he wants at tax payers expense and does not have to answer to it.  So Mr. Randy Christan or what ever name you want, you can sit on you thoughts and ROTATE............................................. Obama is the Worst President EVER...........................................................................

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Business for everybody,........... business for idiots
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