Nov 9, 2018 - Blog, Franchise Articles by |

When buying a franchise, there are numerous factors that should guide your decision with regard to both (i) the type of franchise you choose, and (ii) where you choose to open for business. Statistics on the top franchised industries and top franchise locations can lean in both directions. On the one hand, it makes sense to choose a popular franchise in a location where people are used to shopping and eating at well-known brands. On the other, if you buy into too much competition in an over-saturated market, you could be setting yourself up for failure.

Earlier this year, Franchise Direct published lists of the most-popular franchises and the locations that are most popular for opening a franchise. Neither list includes an explanation of its methodology, so take these for what they are worth. But, the rankings make sense, and even general trends are worth considering when deciding on the franchise opportunity that seems like the best fit for you.

Most-Popular Franchised Industries

According to Franchise Direct, as of May 2018, the 10 most-popular franchised industries in the United States were as follows:

  1. Food Franchises
  2. Children’s Franchises
  3. Coffee Franchises
  4. Home-Based Franchises
  5. Automotive Franchises
  6. Business Opportunities
  7. Vending and ATM Franchises
  8. Restaurant Franchises
  9. Cleaning Franchises
  10. Pet Franchises

Notably, there is a bit of ambiguity in Franchise Direct’s list, as the list includes broad categories in addition to niche industries that could fall into one or more categories. For example, while “Children’s Franchises” ranks at number two, Retail Franchises come in just outside of the top 10 at number 11, and Sports Franchises rank nineteenth. Similarly, while Food Franchises are number one, Fast Food Franchises come in at a somewhat surprising number 18.

Most Popular Locations for Opening a Franchise

While most people limit their search to close to home, Franchise Direct’s data indicate that franchising’s popularly varies widely across state lines. According to Franchise Direct, the following are the 10 states that are most popular for opening a franchise:

  1. California
  2. Texas
  3. Florida
  4. New York
  5. Georgia
  6. Illinois
  7. North Carolina
  8. New Jersey
  9. Pennsylvania
  10. Michigan

At the bottom of the list, these are the states where opening a franchise is least popular:

  1. Rhode Island
  2. West Virginia
  3. Delaware
  4. North Dakota
  5. Maine
  6. South Dakota
  7. Montana
  8. Alaska
  9. Wyoming
  10. Vermont

Clearly, population is a factor in the Franchise Direct rankings. However, the rankings are not directly correlated to state population rankings, so other factors must be at play as well.

Learn about more factors to consider when buying a franchise from national franchise attorney Jeffrey M. Goldstein: What Does it Really Mean to Be Named a “Top Franchise”?

Are You Considering a Franchise Opportunity?

If you are thinking about buying a franchise and need help understanding the risks and other legal considerations involved, we encourage you to inquire about our flat-fee franchise business review programs. To speak with attorney Jeffrey M. Goldstein about your franchise opportunity in confidence, please call 202-293-3947 or inquire online today.

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