Best Franchises to Own in California

Franchising is a popular route to business ownership in California, offering opportunities for aspiring entrepreneurs across various industries. This guide explores some of the franchise options available in the state, helping you find a business that aligns with your interests and goals.

Free Map of 13 Featured California Franchises

1. P3 Cost Analysts 

P3 Cost Analysts focuses on helping businesses and organizations identify and reduce recurring expenses in categories such as telecom, utilities, and waste removal. As a franchisee, you would utilize their proven system to audit client bills, negotiate better rates with vendors, and share the resulting savings with your clients. 

Since its inception, P3 Cost Analysts has saved clients over $200 million. Notable clients include First Security Bank, Jason’s Deli, KFC, Sonic, and various cities and school districts. For instance, P3 Cost Analysts identified an error for a school system that resulted in a $150,000 refund.

The franchise model includes comprehensive training, support, and access to proprietary tools designed to help you successfully launch and grow a business dedicated to saving clients money. 

Franchise Requirements and Costs 

Financial Requirements 

• Initial Franchise Fee: $59,500. 
• Total Investment: Ranges from $68,690 to $85,935. 
• Liquid Capital Required: $50,000. 
• Minimum Net Worth: $100,000. 
• Veteran Discount: $5,000 off the initial franchise fee. 
• Royalty Fee: No traditional royalty fee; franchisees retain 40% of the total revenue for the lifetime of the client engagement. 

Costs Breakdown 

• Furniture: $0 to $1,000. 
• Computer Hardware and System: $0 to $1,000. 
• Internet Connection: $0 to $225.
• Office Equipment and Supplies: $400 to $500. 
• Business Licenses and Permits: $175 to $700. 
• Marketing and Promotional Materials: $500 to $1,500. 
• Insurance: $500 to $750. 
• Professional Fees: $1,500 to $3,000. 
• Training Expenses: $1,615 to $3,260. 
• Additional Funds/Working Capital: $4,500 to $7,500. 

Franchise Details 

• Founded: 1991. 
• Franchising Since: 2019. 
• Number of Units: 45 as of 2022. 
• Absentee Ownership: No. 
• Training: 3-week virtual training session. 
• Support: Ongoing support including meetings, conventions, online support, and field operations. 
• Marketing Support: Includes ad templates, social media, SEO, and website development. 
• Technology: Franchisees have access to a fully integrated suite of software for business operations. 

Statistics and Numbers 

• Revenue Growth: Revenue reached $2.75 million in 2019 and is expected to rise to at least $4 million. 
• Client Success Rate: P3 Cost Analysts finds savings for 90% of its clients. 
• Leadership: Michael Nicholas, with 30 years of franchising experience, was hired as president of franchising to help expand the company.

Fun Facts 

• CEO Aaron Stahl is an adventurer who has traveled to over 40 countries and is also a flight instructor.
• The franchise offers a risk-free service model, sharing the savings identified with clients without requiring any upfront costs.
• Articles and interviews with P3 Cost Analysts’ leadership, including Kevin Harrington from Shark Tank, offer valuable insights into the franchise’s operations and growth strategies.
• The company rebranded from P3 Waste Consulting to P3 Cost Analysts after acquiring a competitor in 2018.

2. TeamLogic IT 

TeamLogic IT specializes in offering managed IT services and solutions tailored to the needs of small and medium-sized businesses. As a franchise owner, you will focus on nurturing client relationships, understanding their specific IT requirements, and delivering personalized solutions that may include cybersecurity, cloud services, data backup, and ongoing technical support.

The TeamLogic IT franchise model is designed to support entrepreneurs with comprehensive training, access to marketing resources, and the advantage of established brand recognition. This framework enables franchisees to establish themselves as trusted IT partners within their local business communities. Successful franchise owners often come from diverse professional backgrounds and benefit from robust training and ongoing support.

Independent research indicates high satisfaction levels among TeamLogic IT franchisees, highlighting the potential for franchise owners to thrive and excel in the competitive IT services market.

Franchise Requirements and Costs 

Financial Requirements 

• Initial Franchise Fee: $40,000 to $49,500. 
• Total Initial Investment: $109,550 to $160,000. 
• Net Worth Requirement: $300,000. 
• Liquid Cash Requirement: $50,000 to $78,092. 

Ongoing Fees 

• Royalty Fee: 7% of gross sales. 
• Advertising Fund Fee: 1.2% of gross sales or $200 per month, whichever is greater, after the first 12 months. 

Detailed Costs Breakdown 

• Advertising Cooperative Association Fee: $0 to $500 monthly.
• Marketing: $2,000. 
• Help Desk Service Fee: $1,200. 
• Email Hosting: $3.36 to $16.80 per email user. 
• Software Fee: $2,100 to $3,500 annually. 
• QuickBooks Online: $100 to $150 per month. 
• Vehicle Lease and Graphics: $0 to $350 (lease)/$100 to $3,000 (graphics). 
• Initial Equipment: $4,125 to $7,400. 
• Real Estate Leasehold Improvements, Monthly Rent: $750 to $1,500. 
• Additional Funds for 10 to 12 Months: $60,540 to $78,092. 

Training and Support 

• On-The-Job Training: 34 to 61 hours. 
• Classroom Training: 40 to 94 hours. 
• Ongoing Support: Includes newsletters, meetings, conventions, online support, security procedures, lease negotiation, field operations, site selection, proprietary software, and franchisee intranet platform. 

Statistics and Numbers 

• Franchise Units: Over 270 locations across the United States. 
• Reported ROI $162,369 to $1,898,675 (average gross revenue by quartile).

Fun Facts 

• Veterans are eligible for a discount ranging from $5,000 to $9,500 off the initial franchise fee at TeamLogic IT.
• TeamLogic IT achieved the #1 ranking in the IT Services category of Entrepreneur magazine’s 2024 Franchise 500 list.
• In 2023, TeamLogic IT reported a 17% increase in network-wide annual revenues, surpassing the industry average growth rate of 12.5%.
• Salt Creek Capital, a private equity firm, acquired IT Assist, a TeamLogic IT franchise located in Philadelphia, underscoring the franchise’s appeal to investors.
• Success Story: Tony Lee, formerly a priest, successfully transitioned to franchise ownership with TeamLogic IT in Pensacola, Florida, achieving a doubling of business growth within one year.

3. N-Hance 

N-Hance Wood Refinishing specializes in refinishing cabinets, furniture, and hardwood floors, providing a more affordable and eco-friendly alternative to complete replacements. According to a study by the Joint Center of Housing Studies at Harvard University, home improvement spending increased by more than 3% in 2020, even as the broader economy contracted–this franchise opportunity allows entrepreneurs to tap into the growing demand for home renovations without the high overhead costs typical of traditional remodeling businesses. 

Many franchisees have experienced significant growth and success, often being booked out months in advance and achieving record sales. N-Hance’s comprehensive Quick Start Program, which includes personalized coaching and marketing support, is designed to help new franchisees succeed in their first year. It’s important to note that N-Hance franchises require full-time operation and active involvement from the franchisee to ensure optimal performance and growth.

Franchise Requirements and Costs 

Financial Requirements 

• Initial Franchise Fee: $22,500 – $45,000.
• Initial Investment: $58,547 – $197,582.
• Cash Requirement: $50,000 – $90,000.
• Net Worth Requirement: $70,000 – $90,000. 
• Royalty Fee: $209-$786/mo.
• Ad Royalty Fee: $118-$400/mo.

Financing Options 

• In-House Financing: Available for franchise fee, equipment, and inventory. 
• Third-Party Financing: Available for franchise fee, startup costs, equipment, and inventory.
• Veteran Discount: $2,500 off first-unit franchise fee.

Statistics and Numbers 

• Total Units: Over 500 locations in North America. 
• Market Size: The home improvement market hit a record of nearly $450 billion in 2019 and is projected to reach $500 billion by 2026.
• Franchise Growth: N-Hance has been one of the fastest-growing franchises in the nation for six consecutive years. 
• Initial Training: 45-55 hours on-the-job, 8-18 hours classroom.
• Ongoing Support: Newsletter, meetings, conventions, toll-free line, grand opening support, online support, field operations, proprietary software, franchisee intranet platform.
• Marketing Support: Ad templates, national media, regional advertising, social media, SEO, website development, email marketing. 
• Absentee Ownership: Not allowed.
• Part-Time Operation: Not allowed.
• Employees Required: Minimum 2.
• Exclusive Territories: Available 

Fun Facts 

• N-Hance employs a distinctive Lightspeed® Nano Instant-Cure Refinishing technology, which enables surfaces to be ready for use immediately upon job completion.
• The high demand for home improvement services has led to many franchise owners being booked several months in advance.
• Franchise owners have experienced record sales, with top performers averaging $1,309,239 in revenue in 2022.

4. EarthWise Hauling 

EarthWise Hauling offers franchise opportunities in the eco-friendly junk removal and demolition industry, emphasizing responsible waste management practices. Franchisees have the opportunity to run their own business while contributing to sustainability efforts in their communities. The company distinguishes itself by recycling or repurposing up to 95% of the materials they haul, supporting eco-friendly initiatives.

Franchise owners benefit from EarthWise Hauling’s established brand recognition and comprehensive support in operations and marketing. The company’s commitment to sustainability is evident through initiatives like its blog, which offers tips on eco-friendly practices such as creating sustainable outdoor spaces. EarthWise Hauling proudly maintains a no-landfill guarantee, having diverted waste away from landfills for over eight years.

Customer satisfaction is paramount for EarthWise Hauling, as evidenced by their impressive reputation on Yelp, boasting over 800 five-star reviews and earning recognition as California’s highest-rated junk removal service. The franchise operates with transparent pricing structures based on volume, which includes all taxes and disposal fees, ensuring clarity for customers. For instance, hauling dense materials costs $60 per wheelbarrow, reflecting their straightforward approach to pricing and service delivery.

Franchise Requirements and Costs 

• Initial Investment: Ranges from $150,250 to $403,500. 
• Franchise Fee: Specific details on the franchise fee are not provided, but financing options are available through third parties. 
• License and Insurance: EarthWise Hauling is the only junk removal company in Southern California with the state-required license and bonds for removing and disposing of construction debris. They carry $1,000,000 policies for General Liability, Commercial Auto, and Workers Comp. 

Statistics and Numbers

• Years in Business: 17 years. 
• Waste Diverted: Over 15,000,000 pounds of waste from landfills.
• Revenue: Over $10,000,000 in revenue. 
• Expansion: EarthWise Hauling is expanding its franchise opportunities to territories throughout California and select border states. 

Fun Facts 

• The company began with a modest $500 pickup truck and has grown steadily ever since.
• EarthWise Hauling has been honored with the Angie’s List Super Service Award for six consecutive years and has received the “People Love Us on Yelp” certificate for three years.
• The company handles heavy item removal, such as a 250-pound commercial freezer for $220, a 375-pound cast iron bathtub for $250, and a 1700-pound camper shell for $1500.
• Customers have commended EarthWise Hauling for its quick service, fair pricing, and commitment to eco-friendly practices.
• While not the cheapest option on the market, EarthWise Hauling focuses on delivering professional, eco-conscious services, distinguishing itself from unlicensed and uninsured contractors.
• EarthWise Hauling demonstrates its commitment to sustainability by using natural gas trucks, recycling and repurposing materials, and maintaining a paperless operation.

5. Premier Pools & Spa 

Premier Pools & Spas specializes in constructing high-quality, custom in-ground swimming pools and hot tubs for residential customers. Headquartered in Carlsbad, California, their franchise model offers comprehensive training, support, and brand recognition to assist franchisees in establishing themselves in their local markets–ensuring that no prior industry experience is necessary to be successful.

The pool industry experienced significant demand even during the global pandemic, as many people invested in home improvements–a trend that is predicted to continue at a CAGR of over 7.5% between 2024 and 2032, with the global market size valued at over USD 2 billion in 2023. 

Franchise Requirements and Costs 

Financial Requirements 

• Initial Franchise Fee: $45,000.
• Initial Investment: Ranges from $48,000 to $125,000.
• Cash Requirement: Minimum liquid capital required is $50,000.
• Royalty Fee: 3.5% to 4.0% of gross revenue.
• Advertising Fee: Up to 1.0% of gross revenue, currently set at 0.4%. 

Training and Support 

• On-The-Job Training: 40 hours. 
• Classroom Training: 45 hours. 
• Online Training: Includes videos and courses. 
• In-Field Training: At other franchise locations. 

Franchise Details 

• Company Overview 
  • Founded: 1988 by Paul Porter and Keith Harbeck. 
  • Franchising Since: 2014.
• Franchise Benefits 
  • Marketing and Web Support: In-house marketing, SEO, social media, and reputation management.
  • Training Systems: Comprehensive training on construction, operations, marketing, and sales. 
  • National Brand Recognition: Instant brand recognition and exclusive vendor programs.

Statistics and Numbers 

• Number of Units: 125 as of 2023
• Pools Built: Over 90,000 pools constructed since inception.
• Growth Rate: 37% growth rate year over year.
• Franchise Units Opened: 21 new units opened in 2023. 

Fun Facts

• Premier Pools & Spas appeared on seasons 7 and 8 of “Pool Kings” featured on HGTV’s DIY Network.
• The company has received multiple awards from Franchise Business Review and Entrepreneur for its achievements in the industry.
• Premier Pools & Spas was involved in legal action initiated by the Nebraska Attorney General, accused of leaving customers with incomplete pool projects.
• More than 20 customer complaints were lodged with the state Attorney General’s office, underscoring issues related to unfinished projects and subpar customer service.

6. Stratus Building Solutions 

Stratus Building Solutions, a commercial cleaning franchising company based in Hollywood, California, offers a range of services including janitorial, green cleaning, floor and carpet maintenance, and restroom sanitization. Founded in 2004 and beginning franchising in 2006, the company has seen significant growth, following industry trends. In fact, the commercial cleaning industry, currently valued at approximately $63 billion, is projected to continue expanding by 2% annually due to the increasing necessity of cleaning services during and after the pandemic. 

Stratus Building Solutions offers two franchise models: the Janitorial Unit Franchise, suitable for small business owners seeking a low initial investment with personalized support, and the Master Franchise, designed for experienced business executives to manage larger operations including recruiting, training, and supporting unit franchisees. 

With 18 years of franchising experience, Stratus Building Solutions operates in 71 major cities and supports over 3,400 unit franchisees. The company boasts a 50.6% growth rate over three years and received six high-profile awards in 2023, reinforcing its leadership in the industry. 

Franchise Requirements and Costs 

• Initial Franchise Fee: $3,600 – $75,000. 
• Total Initial Investment: $4,350 – $350,000. 
• Net Worth Requirement: $5,000 – $300,000. 
• Liquid Cash Requirement: $2,000 – $250,000. 
• Ongoing Royalty Fee: 5%. 
• Veteran Discount: 10% off franchise fee. 

Statistics and Numbers 

• Number of Units: 3,641 as of 2024. 
• Franchise Enterprises: 1,549. 
• Customers Served: Over 35,000. 
• Regional Master Offices: Approximately 70. 
• Unit Franchisees: Over 2,900. 
• No prior industry experience is required as Stratus provides extensive training: 
  • On-The-Job Training: 6.5 hours. 
  • Classroom Training: 8 – 11.5 hours. 
  • Additional Training: on top of classroom and on-the-job training, the company also offers follow-up training at the franchisee’s location, turnkey marketing solutions, proprietary software, annual meetings, peer-to-peer support, monthly calls, digital marketing & CRM, sales & development programs. 

Fun Facts 

• Stratus Building Solutions was ranked #1 in Entrepreneur’s Fastest-Growing Franchises list for 2023, adding more than 300 new franchise units in North America from July 2021 to July 2022.
• The company completed a unique royalty transaction with Diversified Royalty Corp., becoming the first U.S.-based franchisor to do so. This deal allowed Stratus to generate liquidity without selling equity.
• Stratus Building Solutions uses Green Seal Certified, biodegradable, and non-toxic cleaning chemicals, emphasizing environmentally friendly practices.
• The company offers one of the lowest franchise buy-ins in the industry, with initial investments starting as low as $1,000.
• Success story: Gary Graves, a master franchisee in Atlanta, Georgia, leveraged his two decades of experience in sales and business management to launch Stratus Building Solutions in his region, highlighting the company’s support and the potential for franchisee success.

7. Sport Clips 

Sport Clips operates in the men’s haircutting industry through a well-known chain of salons specializing in haircuts for men and boys, creating a sports-themed environment that attracts a loyal customer base. The franchise model provides comprehensive training and ongoing support, enabling franchise owners to manage a business focused on convenience and quality haircuts. Although Sport Clips primarily caters to men and boys, they also provide haircuts for women, though they do not offer color or chemical treatments. 

Franchisees receive extensive support, including assistance with site selection, lease negotiation, and ongoing operational guidance. To enhance customer experience and streamline operations, Sport Clips has integrated mobile check-in software.

Founded by a veteran, Sport Clips demonstrates a strong commitment to supporting military personnel by offering significant discounts to veterans and providing free haircuts to veterans on Veterans Day. This emphasis on veteran support and community involvement further solidifies Sport Clips’ reputation as a customer-focused and socially responsible franchise.

Franchise Requirements and Costs 

Financial Requirements

• Initial Franchise Fee: $30,000 to $69,500. 
• Total Initial Investment: $266,300 to $439,500. 
• Net Worth Requirement: $400,000. 
• Liquid Cash Requirement: $200,000. 

Ongoing Fees 

• Royalty Fee: 6% of Net Sales. 
• Advertising Fee: $300 per week or 5% of Net Sales, whichever is higher. 

Training and Support 

• On-The-Job Training: 43.5 to 51.25 hours. 
• Classroom Training: 85 to 111.5 hours. 
• Additional Training: At existing locations. 

Operational Details 

• Number of Employees Required: 8. 
• Absentee Ownership: Allowed, but franchisees must be engaged and work on their business. 
• Store Size: Typically between 1,000 and 1,400 square feet. 

Special Requirements 

• Minimum Licenses: New franchisees must buy a minimum of three licenses, costing $69,500 for the first three. 
• Veteran Incentives: 20% off the initial franchise fee for qualified veterans. 

Statistics and Numbers 

• Average Gross Sales: $467,919 for company-owned stores. 
• Variable Costs: 7% of gross sales. 
• Payroll Costs: 43% of gross sales. 
• Occupancy Costs: 14% of gross sales. 
• Advertising Costs: 5% of gross sales. 
• Profitability: Sport Clips franchises have shown resilience and profitability, even during economic downturns and the COVID-19 pandemic. 
• Market Position: Sport Clips is a dominant player in the men’s haircare market, with a strong brand presence and customer loyalty. 

Fun Facts 

• In February 2024, Sport Clips collaborated with Primanti Brothers to offer free mullet haircuts to celebrate NHL legend Jaromir Jagr’s jersey retirement.
• Established in 1993, Sport Clips started franchising in 1995.
• Sport Clips has expanded to more than 1,800 locations across North America.
• The chain provides unique services such as hot steamed towel treatments, relaxing neck and shoulder massages, scalp massages, and massaging shampoo services.

8. Qdoba 

Qdoba Mexican Eats is a prominent player in the fast-casual dining industry, specializing in customizable Mexican cuisine. Qdoba is the largest franchisor in the Mexican fast-casual dining sector across North America, larger than even Chipotle. 

The restaurant chain offers a variety of fresh ingredients that guests can use to create their own burritos, bowls, tacos, and salads, catering to the preferences of younger diners who favor on-the-go options and healthier choices. 

Research indicates that Qdoba’s emphasis on customization and fresh ingredients resonates well with its target demographic–making its catering services the most profitable segment for Qdoba, outperforming other business lines within the restaurant.

Franchise Requirements and Costs 

• Franchise Fee: $30,000 for traditional units; $15,000 for non-traditional units. 
• Total Estimated Cost: $489,200 to $1,178,000
  • Development Costs: Plans, legal fees, permits range from $10,000 to $50,000. 
  • Leasehold Improvements: $75,000 to $400,000; $180,000 to $400,000. 
  • Furnishings, Fixtures, and Equipment: $185,000 to $380,000. 
  • Signage: $5,000 to $50,000. 
  • IT and Other Systems: $33,700 to $55,000. 
  • Opening Inventory: $5,000 to $10,000. 
  • Miscellaneous Pre-Opening Expenses: $5,000 to $15,000. 
  • Grand Opening Advertising: $5,000 to $25,000. 
  • Insurance: $5,000 to $10,000. 
  • Business Licenses, Health Permits, and Similar Permits: $500 to $3,000. 
  • Additional Funds for 3 Months: $25,000 to $150,000.
  • Liquor License: Varies depending on location. 
  • Real Property Lease/Purchase Costs: Varies depending on location.

Franchise Details 

• Year Business Began: 1995. 
• Franchising Since: 1997. 
• Headquarters: San Diego, California. 
• Training Overview: Designated operator (DO), general manager, and a third person must attend a seven-week training program (315 hours). 
• Territory Granted: Generally a radius of two miles from the franchised restaurant, but may vary. 
• Obligations and Restrictions: Full-time supervision by a DO and general manager is required for multiple units. 
• Store Formats: Includes end-caps, in-line, and freestanding units.

Statistics and Numbers 

• Current Units: Approximately 750 units, with plans to reach over 1,000 by 2027 and 1,500 six years after. 
• Key Markets for Expansion: California, Texas, and Florida identified as ripe for expansion. 
• Average Unit Volumes: $1.6 million in 2023. 
• Global Sales: $1,002,000,000. 
• US Units: 728; International Units: 13. 
• Sales Growth: 8.8%. 
• Unit Growth: 0.3%. 

Financial Performance and Incentives 

• Average Unit Volume: $1,998,222 for top quartile units. 
• Median EBITDA for Traditional Locations: $171,251 annually. 
• Cash Bonus: $100,000 for franchisees opening new units by September 2026. 
• Expansion Plans: Targeting 1,500 units over the next seven years.

Fun Facts 

• Qdoba Mexican Eats offers a menu featuring a variety of Mexican-themed food items such as burritos, tacos, salads, and quesadillas. Some locations also serve breakfast and operate 24 hours on weekends, catering to diverse customer preferences.
• In response to consumer demand for spicier flavors, Qdoba recently introduced the Habanero Lime Steak, showcasing their commitment to menu innovation.
• Qdoba’s ownership history includes previous ownership by Jack in the Box and Apollo Global Management before being acquired by Butterfly Equity in 2022.
• The franchise made its largest deal by partnering with an experienced operator to expand its footprint with 30 new restaurants in Florida.
• In a strategic move, Qdoba sold 77 of its company-owned restaurants to North Fork Fresh Mex, which currently operates 97 Qdoba units and plans to develop an additional 73 locations over the next seven years.

9. Gloria Jean’s Coffees 

Gloria Jean’s Coffees specializes in serving gourmet coffees, teas, and baked goods in a welcoming and inviting atmosphere. The franchise model provides comprehensive training and ongoing support to franchise owners, enabling them to operate a coffee shop under the established Gloria Jean’s Coffees brand. This can be an attractive option for entrepreneurs looking to run a coffee shop business with strong brand recognition and proven systems.

Despite some criticism regarding the quality of their coffee compared to local cafes, Gloria Jean’s remains popular due to its consistent product offerings and well-known brand. Positioned within the specialty coffee market segment, a $26.4 billion market, Gloria Jean’s appeals to customers seeking higher quality coffee experiences than traditional fast-food coffee options.

The franchise model offers various store formats, catering to entrepreneurs with different investment levels and space limitations. This flexibility includes traditional cafes, kiosks within malls, and drive-thru options, making it accessible to a wide range of potential franchisees.

Franchise Requirements and Costs 

Financial Requirements 

• Liquid Capital: $100,000 – $200,000.
• Net Worth: $200,000 – $450,000. 
• Total Investment: $173,150 – $541,600. 

Initial Franchise Fee

• Standard Fee: $15,000 – $25,000.
• Discount for Existing Franchise Owners: $7,500. 

Ongoing Fees 

• Royalty Fee: 6% of gross sales. 
• Advertising Fee: 2% of gross sales, potentially increasing to 3%. 

Additional Costs 

• Grand Opening Advertising Expenditure: $5,000. 
• Leasehold Improvements: $60,000 – $215,000. 
• Equipment, Furniture, and Fixtures: $114,000 – $143,000. 
• Signage: $17,000 – $20,000. 
• Training Expenses: $3,500 – $8,000. 
• Miscellaneous Opening Costs: $10,500 – $12,500. 
• Additional Funds for 3 Months: $25,000 – $30,000. 

Financing Options 

• Third-Party Financing: Available. 
• SBA Loans: Available through the SBA’s Franchise Registry program. 

Training and Support 

• On-The-Job Training: 40 hours. 
• Classroom Training: 40 hours.
• Operational Support: Includes marketing, quality control, and a Territory Manager.

Statistics and Numbers

• Total Units: Approximately 850 coffee houses in 40 countries. 
• U.S. Locations: 54 franchises as of 2018. 
• Revenue Growth: 6% revenue growth in international markets in 2023. 
• Profitability: EBITDA of $1.8 million in 2023. 
• Expansion Plans: Retail Food Group plans to open 100 new Gloria Jean’s cafés in the U.S. over the next three years. 

Fun Facts

• Gloria Jean’s Coffees was established by Gloria Jean Kvetko in 1979 in Long Grove, Illinois.
• The company ventured into the Australian market in 1996, where it now operates over 460 locations
• Retail Food Group purchased Gloria Jean’s Coffees in 2014 for AU$163.5 million.
• Although coffee remains their primary offering, Gloria Jean’s Coffees is also renowned for its delectable treats, including muffins, scones, cookies, and even some sugar-free choices.

10. Checkers Drive-In Restaurants 

Specializing in classic American fare such as burgers, fries, and milkshakes, Checkers Drive-In Restaurants emphasizes value and convenience. Their business model focuses on speed and affordability through a double drive-thru system, eliminating the need for indoor seating. 

Checkers’ modular restaurant design allows for quicker construction and opening times, with many stores being built off-site and assembled on location. The company is modernizing many of its 830-plus stores to improve operational efficiency and update their appearance, including the addition of FIT Kitchens to reduce energy waste and enhance food quality. 

This franchise opportunity includes comprehensive training and marketing support to help franchisees establish and operate a Checkers location within their territory, making it an attractive option for those looking to enter the fast-food market with a well-established brand.

Franchise Requirements and Costs 

Financial Requirements 

• Net Worth: Minimum of $750,000 per location. 
• Liquid Assets: Minimum of $250,000 per location. 
• Initial Franchise Fee: $20,000 to $30,000. 

Initial Investment 

• Total Estimated Initial Investment: $790,797 to $2,368,316. 
• Initial Advertising Deposit: $10,000.
• Restaurant Building Costs: $370,000 to $1,219,243.
• Restaurant Building Shipping Costs: $8,400 to $49,660. 
• Restaurant Equipment and Technology: $177,733 to $226,010.
• Site Development Costs: $150,000 to $641,000.
• Signage Including Menu Boards: $12,775 to $56,023. 
• Inventory: $1,000 to $5,000.

Ongoing Fees 

• Royalty Fee: 4% of net sales. 
• Advertising Expenditure Requirement: 4.5% of net sales. 

Statistics and Numbers

• Global Sales: $863,610,000.
• US Units: 800.
• Percent Franchised: 69% or 575 units.

Fun Facts

• Checkers and Rally’s hosted a unique themed wedding for a couple, featuring a bouquet made of chicken tenders and a reception catered by a Rally’s food truck. 
• One of Checkers’ signature offerings is the Fry Lovers Burger, which includes their renowned seasoned fries inside the burger.
• The franchise received the Top 50 Franchise Satisfaction Award from Franchise Business Review.
• Checkers has introduced several technological innovations to enhance the customer experience, including an AI ordering system with bilingual capabilities at 350 locations to improve order accuracy and efficiency. 
• Many locations now feature a dedicated e-commerce drive-thru lane for mobile order pickups, offering increased convenience for customers.

11. The UPS Store 

The UPS Store is a franchise network that enables individuals to operate retail locations under the UPS brand, offering services beyond traditional UPS shipping, such as packing, mailbox rentals, printing, and notary services. Consistently ranking in the top five of Entrepreneur Magazine’s “Franchise 500,” The UPS Store has a strong reputation for its robust business model and comprehensive support system. 

Franchisees benefit from a thorough training program that includes web-based training, in-store experience, and a business course at The UPS Store University in San Diego. Ongoing support encompasses advertising, marketing, product development, and networking opportunities with other franchisees. 

The UPS Store also provides non-traditional franchise opportunities in diverse locations like colleges, universities, hotels, and self-storage facilities, offering flexibility and additional revenue streams.

Franchise Requirements and Costs 

Initial Investment 

• Traditional locations: $247,523 – $474,193.
• Rural locations: $133,470 – $484,762. 
• Store-in-store locations: $120,929 – $250,540. 

Franchise Fees 

• Initial franchise fee: $29,950. 
• Monthly royalty fee: 5% of gross sales. 
• Marketing fee: 2.5% of gross sales. 

Financial Requirements 

• Minimum liquid assets: $75,000. 
• Net worth requirement: $150,000. 
• The UPS Store provides financing options for qualified franchisees, including loans for initial equipment and additional centers.

Profitability 

• Estimated time to profitability/ROI: 3.5 – 4 years. 
• Year 2022 data:
  • Average Adjusted Gross Sales (“AGS”) for All Centers:  $709,713
  • Average AGS for Top 10% of Centers:  $1,216,162
  • Average AGS for Bottom 10% of Centers:  $358,227

Statistics and Numbers

• Number of UPS Store locations in the U.S.: 5,237. 
• Number of UPS Store locations in Canada: 383. 
• Total number of units worldwide: Over 5,500. 

Fun Facts

• The UPS Store, originally known as Mail Boxes Etc., rebranded in 2003.
• Entrepreneur Magazine has ranked The UPS Store as #1 in the “Postal and Business Services” category for 34 consecutive years.
• About 60% of UPS Stores do not reach break-even, with profitability varying widely depending on location and management.
• “The UPS Store: A Study of Current Operations and Solutions for the Future” offers a comprehensive analysis of the franchise’s operations and potential areas for improvement.
• The study includes research on seven UPS Store locations, revealing patterns and reasons for revenue decline, underscoring the significance of location and management for franchise success.

12. Meineke Car Care Center 

Established for over 50 years, Meineke Car Care Center is a well-recognized brand specializing in brake and exhaust system repairs, along with a variety of other preventive maintenance and car care services. The company has been growing following the larger industry trends. The automotive maintenance and repair industry in the US accounted for over $83.71 billion in 2023 and is expected to grow at a CAGR of 4.87% from 2023 to 2033–a strong indicator of the sector’s stability.

Meineke is part of Driven Brands Holdings Inc., which also includes Maaco, Take 5 Oil Change, and CARSTAR. This conglomerate offers extensive support and resources to its franchisees, enhancing their chances of success regardless of their amount of experience in the automotive or mechanical sectors.

As a Meineke franchise owner, you’ll benefit from their proven business model, comprehensive training, and ongoing support, enabling you to build a business focused on providing quality car care and excellent customer service.

Franchise Requirements and Costs 

Financial Requirements

• Liquid Capital: $110,000. 
• Net Worth: $250,000.
• Initial Franchise Fee: $45,000.
• Total Initial Investment: $206,774 – $561,688.

Ongoing Fees 

• Royalty Fee: 5%.
• Advertising Fee: 8%.

Training and Support

• Initial Training: Two-week program in Charlotte, NC.
• Ongoing Support: Includes marketing, operational guidance, and access to proprietary software.

Statistics and Numbers 

• Total Units: Over 700 locations in the US. 
• Average Gross Revenue: $726,400 per franchise unit.
• Number of Employees Required: 3-6 per center.

Fun Facts 

• Meineke launched its first EV service center in Indian Land, South Carolina, marking a significant move into the electric vehicle market.
• Meineke is recognized by 92% of consumers in the auto repair industry.
• The company offers veterans a 50% reduction in royalty fees for the first six months.
• Kian Capital Partners acquired a major Meineke franchisee to create PARC Auto, which operates 15 Meineke centers in Louisville, Kentucky.
• Meineke participated in the National Auto Body Council Recycled Rides program, refurbishing a vehicle for a deserving family in Tucson, Arizona.

13. Club Pilates 

Club Pilates is the world’s largest Pilates brand, specializing in reformer-based Pilates classes, which are low-impact workouts designed to improve flexibility, strength, and core stability. Club Pilates provides a franchise model with comprehensive training and support, which allows franchisees to bring their proven method to their communities and operate a business focused on health and wellness. 

The Pilates industry is valued at $9 billion in the U.S. alone, indicating substantial market potential. Club Pilates has demonstrated significant growth, expanding from 30 locations in 2015 to over 1,000 locations in 2024. 

Research highlights the health benefits of Pilates, showing that it can improve bone density and joint health, particularly benefiting older adults. Studies also indicate that Pilates can reduce anxiety and enhance mental clarity through its emphasis on controlled movements and breathing techniques.

Franchise Requirements and Costs 

Financial Requirements 

• Initial Franchise Fee: $60,000.
• Total Initial Investment: Ranges from $179,100 to $368,000.
• Liquid Capital Requirement: $50,000 to $100,000.
• Net Worth Requirement: $300,000 to $500,000. 

Ongoing Fees 

• Royalty Fee: 7% of gross sales. 
• Marketing Fund Contribution: 2% of gross sales. 

Initial Investment Breakdown 

• Real Estate/Lease and Professional Fees: $13,200 to $45,000. 
• Initial Inventory Kit: $12,000. 
• Furniture, Fixture, and Related Supplies Package: $31,500 to $43,500. 
• Computer System and Related Components: $2,500 to $3,500. 
• Travel and Living Expenses While Training: $0 to $3,000. 

Training and Support 

• Initial Training Program: No fee, but travel and living expenses are the franchisee’s responsibility. 
• Ongoing Support: Includes marketing tools, site selection assistance, grand opening support, and continuous training. 

Statistics and Numbers

• Number of Units: Over 1,000 locations globally.
• Customers Served: Over 1 million members.
• Franchise Growth: The brand saw 36.4% growth in studios from 2019-2022, indicating a significant customer base and growing demand.

Fun Facts 

• Club Pilates has expanded its international presence with studios in countries such as Japan, Singapore, South Korea, Australia, and various European nations.
• Offering a diverse range of classes, Club Pilates utilizes unique and advanced equipment like Pilates Reformers, EXO Chairs, and Spring Boards.
• Many members have reported notable physical improvements, including enhanced posture, increased muscle tone, and reduced joint pain.
• Franchise owners have shared positive experiences, emphasizing the support from the corporate team and the positive impact their studios have on the community.

FAQ

What legal requirements are there for franchises in California? 

In California, franchisors must register their Franchise Disclosure Document (FDD) with the California Department of Financial Protection and Innovation (DFPI) before offering or selling a franchise in the state. The initial registration fee is $675, with annual renewals costing $450.

The registration process requires several documents:

• A cover letter with the applicant’s name, Org-Id number, and fiscal year-end date.
• The Franchise Registration Application Facing Page.
• The Uniform Consent to Service of Process.
• Customer Authorization of Disclosure of Financial Records.
• Sales Agent Disclosure Forms.
• The Franchise Disclosure Document (FDD) in plain English.
• The California State Addendum.
• Audited financial statements prepared in accordance with U.S. GAAP.
• An Internet Ad Exemption Notice.
• A Guarantee of Performance or other financial assurances, if required.

Certain franchises may qualify for exemptions from registration, including those with significant net worth, seasoned franchisors, large franchise investments, and fractional franchises. However, these exemptions are specific and fact-dependent.

Franchisors must adhere to ongoing reporting requirements. This includes notifying the DFPI of any negotiated changes to franchise agreements and providing prospective franchisees with the terms of all addenda signed by other franchisees over the past year.

If a state examiner determines that a franchisor lacks sufficient capital, they may require financial assurances. These can include deferring the initial franchise fee, escrowing initial franchise fees, or posting a bond.

How many franchise establishments are there in California, and what is their economic impact?

California has over 81,000 franchise establishments, generating nearly 788,000 jobs and contributing $81.5 billion to the state’s economy.

What is the national impact of franchises on the U.S. economy?

Franchises make up approximately 10.5% of all businesses in the U.S. and contribute about 3% to the national GDP. The franchise industry in the U.S. was projected to contribute $860.1 billion to the economy in 2023, up from $825.4 billion in 2022.

How many jobs does the franchise industry support in the U.S.?

The franchise industry supports over 8 million jobs nationwide, with quick-service restaurants accounting for nearly half of all franchise employment.

Are non-competition clauses enforceable in California?

Non-competition clauses are generally not enforceable in California, except under very limited circumstances specified in the Business & Professions Code.

What percentage of franchise owners are veterans, and what is their economic contribution?

Veterans make up 14% of franchise owners, significantly higher than their 7% representation in the U.S. population. Veteran-owned franchises generate $41 billion in GDP.

How did franchisee advocates respond to the recent California labor bill?

Franchisee advocates felt excluded from the negotiation process of the new California labor bill, which raised the minimum wage for employees at quick-service restaurants to $20 an hour starting in April 2024. The bill also establishes a new fast-food worker council.

What are the success rates of franchisees compared to independent businesses?

According to FranNet, 92% of franchisees were still operating after two years, compared to 20% of independent businesses that closed within the same period.

Is franchising a diverse industry?

Yes, franchising spans over 300 business categories, including technology, health, and education, not just fast food.

Are all franchises expensive to start?

No, while some franchises require significant investments, there are many opportunities with varying investment ranges, making franchising accessible to a broader audience.

How has TeamLogic IT performed in Orange County, California?

TeamLogic IT was recognized among the fastest-growing large private companies in Orange County, California, achieving a 56% revenue growth over two years.

What is the market demand like for N-Hance franchises in California?

The demand for home improvement services in California is high, and the state has a strong emphasis on sustainability. N-Hance’s eco-friendly refinishing process could resonate with environmentally conscious homeowners, potentially increasing demand.

What are Checkers and Rally’s expansion plans in California?

Checkers and Rally’s are actively seeking to expand in California, among other states, with opportunities for new franchises in several markets.

How is the market performance of Checkers and Rally’s in southwestern states like California?

The southwestern states, including California, are listed as substantial markets for Checkers and Rally’s.

What books can I read to learn more about franchising?

• “Franchising for Dummies” by Michael Seid and Dave Thomas, is a comprehensive guide covering the franchise business model, including legal requirements, financial considerations, and operational strategies.
• “The Wealthy Franchisee” by Scott Greenberg offers insights into successful franchise ownership and was a keynote topic at the BELFOR Franchise Group Convention.
• “The Franchise MBA: Mastering the 4 Essential Steps to Owning a Franchise” by Nick Neonakis offers insights into the critical steps of owning a franchise, from initial research to successful operation.
• “Franchise Your Business: The Guide to Employing the Greatest Growth Strategy Ever” by Mark Siebert provides insights into franchising strategies.

Where can I find additional resources on franchising?

• Franchise Tax Board: Provides transparent historical information and statistical research data on personal income tax, corporation tax, and other tax data.
• Public Policy Institute of California: Offers data on business ownership in California, highlighting the representation of different demographic groups among business owners.
• Franchise Industry Resources: The DFPI website includes guidelines for franchise registration, forms, and links to franchise industry associations.
• Franchise Listings by State: Franchise Insights provides data on the percentage of franchise listings by state, with California having 55.3% of franchise listings.
• Franchise Opportunities: Franchising.com offers a directory of franchise business opportunities in California, allowing prospective franchisees to narrow their search by industry, investment range, or business type.

Brad Crisp

Brad Crisp is the CEO at Maptive.com, based in Denver, CO and born in San Francisco, CA. He has extensive experience in Business Mapping, GIS, Data Visualization, Mapping Data Analytics and all forms of software development. His career includes Software Development and Venture Capital dating back to 1998 at businesses like Maptive, GlobalMojo (now Giving Assistant), KPG Ventures, Loopnet, NextCard, and Banking.