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Top 5 Franchise Business FAQs

Top 5 Franchise Business FAQs

Get answers to some of the most frequently asked questions about buying a franchise business. 

Are you considering opening a franchise business but not sure where to begin? Chances are you have questions such as, “How do I start my own franchise?” and “How do franchises work?” Read on for a breakdown of what you need to know and a list of the most successful franchise brands. 

What is a franchise and how does it work? 

A franchise business provides individual retail owners, or franchisees, the use of the company name, branding, and permission to sell their products and services. All new retail owners typically receive training, although how much training is offered or required varies from franchise to franchise. While individual owners can count on some guidance and support from their franchisor, running the business and adhering to the established rules of operation is the sole responsibility of the franchisee.

The relationship between the franchisor and franchisee is established through a contract or franchise agreement. As with any business arrangement, the specifics vary, but this legally binding document outlines the responsibilities and expectations of both parties. 

Why should I buy a franchise? 

Unlike opening your own business outright, purchasing a franchise business allows you autonomy, although limited, while providing security and assistance. Buying a franchise rather than building a business from scratch also allows you to benefit from the franchisor’s reputation and brand equity along with their established base of loyal customers. Although there is a certain amount of risk involved in any business venture, these factors make starting your own franchise less risky than building a new business from the ground up. 

Franchising can be an extremely rewarding experience, but keep in mind success is not guaranteed. The system will not do all the work for you.

How do I buy a franchise? 

Take the time to thoroughly research franchise options available before signing on the dotted line. Think about what industry you’d like to work in and do some digging to find the best companies to partner with in that sector. Most importantly, look for a company with the requirements and terms that best suit you. Be sure to account for every fee for which you will be responsible and ensure the costs are in line with what you can afford, to prevent starting your new business venture in the red. 

Talk to current franchisees in the network to learn about aspects that may not be evident on paper, such as company culture and how much the franchisor assists their retail owners. Learn about the competition and how the franchise has performed in the past within the market. An accountant and lawyer can also be helpful for guiding you through fees and requirements hidden in the fine print that could be easily overlooked. 

Is owning a franchise profitable? 

It can be, especially if you partner with a well-known franchise brand with a proven business system. Refer to the Franchise Disclosure Document for sales, earnings, and expense information but note the franchisor is not required to provide these details. Since every market varies, franchisors cannot explicitly make earnings claims or revenue projections for potential retail owners although they can provide financial representations based on past financial performance. Keep in mind even if the numbers look great, there is no guarantee you will have the same level of success.

Joining a franchise network gives you somewhere to turn if times become difficult, and your franchisor can advise you through some common issues in maintaining a healthy bottom line. However, ultimately you are the one responsible for the financial success of your franchise business.

How do I get funding to buy a franchise? 

If you have a limited budget or capital, there are several different financing options for which you may qualify when buying a franchise. The best place to start is with the franchisor. Many have options for financial assistance or incentives for veterans, minorities, or first-time franchisees. If there are no options available within the franchisor’s organization, you can try applying for a loan with the Small Business Association (SBA) or contacting a lending company to discuss financing opportunities. If you’re unable to go that route, you can look into borrowing from a retirement savings account, or apply for a line of credit. 

2021 Top 10 Franchise Companies

According to Entrepreneur’s 2021 Franchise 500 ranking, the top ten franchise companies based on an evaluation of costs and fees, size and growth, support, brand strength, and financial strength and stability are: 

  1. Taco Bell
  2. Dunkin’
  3. The UPS Store 
  4. Popeyes Louisiana Kitchen 
  5. Culver’s
  6. Kumon Math & Reading Centers
  7. Jersey Mike’s Subs 
  8. Planet Fitness 
  9. 7-Eleven
  10. Servpro

Franchising can be a great way to go into business for yourself but not by yourself. However, there’s a lot to think about and knowledge is key. The more you learn, the better prepared you are to make an educated decision. Before you buy, make sure it’s in an industry you want to be a part of, can potentially give you the returns you’d like, and supports your business and life goals.

2023 Entrepreneur's Franchise 500 Top Rated for Veterans badge

We Proudly Support Our Veterans

Participating partners with the VetFran program, The UPS Store offers qualifying veterans $15,000 off their franchise fee to start their new business. To learn more, contact The UPS Store Franchise Development Team.

Entrepreneur's Franchise 500 Ranked #4 in 2023 badge

Ranked for over 30 Consecutive Years

The UPS Store has been ranked #1 in the postal and business services category for over 30 years and remains in the top 5 overall for the seventh consecutive year according to the Franchise 500 list.

Kristin Howard

Franchisee, Michigan

The reason my husband and I decided to go into franchising and specifically with The UPS Store, is the different opportunities we're given with the business. The UPS Store has name recognition as well as opportunities to expand.

Debbie Adams

Franchisee, Kentucky

What I enjoy most about being a The UPS Store owner is working with my customers. We are the solution specialists for our customers.

Jim George

Franchisee, Illinios

My favorite part about The UPS Store network is the camaraderie with other franchisees. Everybody loves to help everybody else. You’re really part of a family.

Greg Murray

Franchisee, Florida

The interesting thing about The UPS Store is that when a customer walks through the door there's an extremely high probability that they're coming there to do something that is important to them. So at the end of the day, what we do for customers is very important and they are trusting that we are going to do it well.

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Mariana Huberman

Franchisee, Washington, D.C.

One of the things that I love about The UPS Store franchise system is that you're not ever in this by yourself. The franchisees of The UPS Store network are great.

Heidi Morris

Franchisee, Colorado

The thing I enjoy most about being a The UPS Store franchisee is I get to get up, go to work and know that I'm helping other business owners succeed in what they're doing.

Bob Brown

Franchisee, Tennessee

Owning a The UPS Store franchise has changed my life because it's finally given me the opportunity to engage my customers and my staff and be able to take real pride in what I do. As a franchisee, we get faced with solving peoples' problems every day and we do everything we possibly can to try to help.

Marie Jensen

Franchisee, Oregon

My favorite thing about The UPS Store is the variety. I love the variety of customers, I love the variety of services; getting to know the customers, meeting their needs, finding out how we can help them accomplish what they need to accomplish and seeing how happy they are. That makes me ecstatic.

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Tad Mollnhauer

Franchisee, Florida

With the products and services that The UPS Store provides we can make a difference in people's lives and that is the best reason for being a The UPS Store owner.

Joy Batchelor

Franchisee, Idaho

What makes being a The UPS Store franchisee worthwhile at the end of the day is the customers. The customers treat us like we're family.

Paul Erchinger

Franchisee, Texas

One nice benefit of owning a The UPS Store franchise for me has been that it gives me the opportunity to be more involved in the community. As I make relationships with others it seems like no matter what the environment is, in one way or another business comes out of that and that's not my objective—it's been a secondary benefit to being involved in the community.

Chris Reminder

Franchisee, Ohio

There are several things that I really enjoy about being a The UPS Store franchisee. First and foremost it allows me to get to know the people in the local community and that is a lot of fun. We get to see people on a regular basis. We get to know their life stories. That's a lot of fun.

Bruce Jones

Franchisee, Kentucky

Since we have joined The UPS Store, our life has changed by just having more time to spend together as a family. We've been very fortunate with the stores that we have and we have a great staff that looks out for our best interest and we look out for theirs.

Lonnie Williams

Franchisee, Oklahoma

What makes The UPS Store so successful is it gives each individual an opportunity to grow with the network and just meet the challenges that are brought to them on a daily basis. Every day gives us a new opportunity to help another person, to help another small business, to answer a question and to solve a problem.

Jeff Graham

Franchisee, Alabama

I love my customers. I love my employees. I love every person, every face that comes into my store. I enjoy every day going into work and I can't see doing anything else for the rest of my life.

Stacie Stigar

Franchisee, Alaska

I think that this franchise is so successful because of all of the resources that are available to us as center owners—we have marketing materials, we have so many different opportunities for help from the home office, and it just really makes for a great franchise.

Don Pollard

Franchisee, New Jersey

I think the thing that makes this franchise successful is a number of things. First of all we have an outstanding system, we have a great product, a great brand, and we're able to attract dynamic people to run these centers and run the business. So I think when you put all that together it really provides for a winning combination.

Mary Ellen Nichols

Franchisee, Tennessee

The thing I love about the franchise is that you have the UPS name backing you but yet you also have the autonomy to make your own decisions to promote.

Laura Griffin

Franchisee, Florida

In the eight short months I've owned my The UPS Store it has really changed my life. I've gone from being an employee of someone else to being an employer of my associates. It's a big responsibility but it's exciting every day.

Sandy Scandrett

Franchisee, Wisconsin

Being a The UPS Store franchisee has improved every aspect of my life. It's very rewarding financially, professionally, and emotionally. I have a large number of regular customers who are really, really appreciative of everything we do.

Kristie Robison

Franchisee, Alabama

I would say owning a The UPS Store location has changed my life to where I have more time and flexibility. In owning your own business you get your store up and running and you get employees that you can trust that are going to help keep your store running. This allows me to attend my two boys' ball games and also travel and do things with them so it has really changed my life for the better.