franchise business concept with people working on the sideAn analysis ranked Freddy's Frozen Custard & Steakburgers as the best franchise for 2018 under the investment category of more than $500,000. Those who want to invest below $150,000 for a franchise should consider opening a Right At Home business. On the other hand, the best mid-tier investment between $150,000 and $500,000 is a Sport Clips franchise, according to the analysis.

Historical Data

The analysis based its rankings on historical data of 3,300 companies between 2012 and 2016. It then shortened the list to 60 brands based on five benchmarks comprising franchisor support and stability, system demand and sustainability, and value for investment. Most aspiring franchisees will need professional advice before they embark on a new venture. If you are a business broker, you can take advantage of the growing demand for buying businesses.

Return on Investment

If you have been planning to buy a Freddy's franchise, the midpoint initial investment costs more than $1.28 million in the analysis’ time frame. The five-year growth rate, however, was 31.3% during the period. Those who want a lower investment with a higher return should consider buying a Firehouse Subs franchise, which yielded 16.50% from a midpoint initial investment of around $585,000.

Most people who are new to the franchising world aren’t too keen on spending even more than $100,000. However, a low initial investment doesn’t always mean a small rate of return. Take the Soccer Shots franchise as an example. The median investment for this business was more than $41,000, yet it achieved an 11.1% growth over a five-year period.

Before franchisees choose their preferred brand, they most likely look for an expert opinion on which companies offer the best in terms of investment returns among other things. If you’re planning to become a business advisor, choose a brokerage firm that could offer as many revenue streams as possible from different services.

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