Best Franchise to Own in Texas

As the second-largest economy in the U.S and as a State with one of the lowest taxes, Texas represents an ideal business environment for investors who are considering owning a franchise. Also, Lone Star State has the second-largest population in the U.S, which suggests that there is much demand for all kinds of services and products.

Our goal is to help investors in their search for the best franchise opportunities in Texas. Starting a franchise business is less risky than starting a company from scratch, so we hope that all people who have entrepreneurial spirit will find here their ideal franchise to own in Lone Star State.

Best Texas Franchises

Taco Bell – Mexican Food Brand

The first Taco Bell outlet was opened in 1962 in California, and since then, this brand with more than 7,500 franchise units across the whole U.S has positioned itself as a leader in the Mexican-style fast-food market. More than 600 of these franchises are located in Texas, and that fact speaks for itself about the popularity of this chain among residents of the Lone Star State.

For investors who want to own a Taco Bell franchise in Texas starting cost will be between $575,600 and $3.3M. Also, it is possible to make Licensing Agreement with this brand or purchase an already existing restaurant; this type of business deal will be a cheaper option than starting a new facility.

Financial requirements that must meet every potential new franchisee are Liquid Assets (non-borrowed money) in a minimum of $750,000 and a Net Worth of minimal of $1.5 million. This is a high-cost franchise, but these fast food outlets in Texas have a large base of loyal customers, so this investment offers a quick Return of Investment(ROI).

The franchisor itself doesn’t offer financing options, except for Hispanic Americans and other minorities. So, this can be the ideal business opportunity for Mexican Americans who want to own a Taco Bell franchise in Texas.

Taco Bell franchise cost and fees in Texas:

Estimated total investment: $575,600 – $3.3M
Initial Fee: $25,000 – $45,000 Depends on type of facility
Royalty Fee: 5.5% of the monthly Gross Revenue
Ad/Marketing Fee: 4.25% of the monthly Gross Revenue
Franchise Agreement Duration: 25 years

Culver’s – Casual Fast Food Brand

First Culver’s fast food outlet was opened in 1984 in Wisconsin. Today, this brand has more than 800 franchise units in the U.S. Only 10 of Culver’s restaurants are operating in Texas, so this will be a good franchise opportunity for investors who want to own a facility entirely different from others.

Culver’s franchise starting cost in Texas ranges between $2.4M and $5.4M. Although it has a high starting cost, these fast food outlets are more popular than ever among investors because they deliver high Gross Revenue with good Operating Profit Margins.

According to Culver’s Franchise Disclosure Document, these restaurants in Texas, on average, make Gross Sales of $1,800,000 with an Operating Profit Margin in the range between 14.7% and 23.1%. Because of this high profit that the owner can expect, this franchise must be included in the list of best franchises to own in Texas.

Custer’s main Trademark is the famous “butter burger,” but frozen custard, cheese curds, chicken, fish, salads, and a wide variety of cold and hot drinks are on the menu.

All interested investors who want to own this franchise will need to meet the Cash Requirement (non borrowed money) of a minimum of $350,000; there is no requirement regarding past business experience, so for opening a new facility can apply all people who own the necessary investing funds.

Culver’s franchise cost and fees in Texas:

Estimated total investment: $2.4M – $5.4M
Initial Fee: $55,000
Royalty Fee: 4% of the monthly Gross Revenue
Ad/Marketing Fee: 2.5% of the monthly Gross Revenue
Franchise Agreement Duration: 15 years

Burger King – Fast Food Brand

Burger King started business operations in 1953, and since then, they have managed to open more than 7,300 restaurants across the whole U.S (550 franchises are located in Texas). This company constantly grows every year; today, they have positioned themselves as one of the most popular fast-food brands in the world.

Investors who want to own a Burger King franchise in Texas will need an investment fund in the range between $220,000 and $3,398,000; the exact starting cost will depend primarily on the type of facility. The inhabitants of Lone Star State love Burger King and its products, so investment in this franchise can be a very lucrative business decision.

Although this is a high-cost franchise, this opportunity can also be suitable for investors who own a limited investing budget!

It is possible to start the so-called Delivery Facility; this type of franchise costs between $220,000 and $400,000, and the initial fee is only $2,500. The delivery franchises do assignments related to preparing food for delivery and pick up only, so investors will only need to invest in a kitchen that meets Burger King’s requirements.

Opening Delivery Facility Store can be an ideal business opportunity for entrepreneurs who want to own a Burger King franchise in Texas but don’t have millions of dollars at their disposal.

Burger King franchise cost and fees in Texas:

Estimated total investment: $220,000 – $3,398,000
Initial Fee: $2,500 – $50,000 – Depends on type of franchise
Royalty Fee: 4.5% of the monthly Gross Revenue
Ad/Marketing Fee: 4% of the monthly Gross Revenue
Franchise Agreement Duration: 20 years

Jersey Mike’s Subs – Submarine Sandwich Brand

First Jersey Mike’s Subs restaurant was opened in 1956 in New Jersey, and in 1987 they started with expansion through franchising. Today this brand has more than 2000 franchise units in the US and abroad. This company’s number of outlets is growing every year, and today this brand is one of the leaders in the Sandwich Industry.

There is only one Jersey Mike’s Subs restaurant in Texas, so they are actively searching for new franchisees in this area. There is the possibility to make a Multi-Unit Franchise deal, so this franchisor will be ideal for entrepreneurs who want to own more than one franchise.

Investors who want to start Jersey Mike’s Subs franchise in Texas will need to make an investment in the range between $169,000 and $800,000. The Initial Fee is $18,500, and ongoing fees are a Royalty Fee of 6.5% and an Ad/Marketing Fee that is 5% of the monthly Gross Revenue.

This franchise will be a perfect business opportunity for people who already own a restaurant and want to change business direction or for rookie entrepreneurs who wish to own a franchise different from those already presented in Texas.

Every potential franchisee must meet the requirement of owning Liquid Cash (non-borrowed money) in the amount of $100,000. There is no requirement regarding past business experience, so everyone can apply for starting Jersey Mike’s Subs franchise.

Jersey Mike’s Subs franchise cost and fees in Texas:

Estimated total investment: $169,000 – $800,000
Initial Fee: $18,500
Royalty Fee: 6.5% of the monthly Gross Revenue
Ad/Marketing Fee: 1% of the monthly Gross Revenue

Blaze Pizza – Pizza Brand

Rick and Elise Wetzel founded the Blaze Pizza brand in 2011 in California. Today this company has more than 350 franchise units, and approximately 10 outlets are located in Texas. They are searching for new franchisees in this area, so this will be an excellent franchise opportunity for entrepreneurs who want to own a unique pizza shop like this.

The estimated investment for starting a Blaze Pizza franchise in Texas is between $545,500 and $1,145,500. One-time Initial Fee that every investor must pay is $30,000, and ongoing monthly Royalty Fees are 7% of the Gross Revenue that the pizzeria makes.

Blaze Pizza offers a new concept in the market regarding ingredients and cooking time. The customers assist in making their meal, and at the end of the process, they have custom-built pizza with a cooking time of only 3 minutes; this is the record time of the cooking pizza.

Also, people with dietary restrictions love this pizza chain because the Blaze Pizza franchises offer gluten-free, sugar-free doughs with all-natural toppings. Because of these facts, they are the fastest-growing U.S pizza chain, so all investors who would like to own a pizzeria in Texas must consider this company’s franchising offer.

Every potential new franchisee must meet the financial requirements: Net Worth of $500,000 and Liquid Capital (non-borrowed funds) in a minimum of $250,000.

Blaze Pizza franchise cost and fees in Texas:

Estimated total investment: $545,500 – $1,145,500
Initial Fee: $30,000
Royalty Fee: 5% of the Gross Revenue
Ad/Marketing Fee: 2% of the Gross Revenue
Franchise Agreement Duration: 5 years

Jamba Juice – Smoothie Brand

Kirk Perron opened the first Jamba Juice bar in 1990 in California, and since then, this company has grown its number of outlets to more than 850 in the U.S and abroad. Today, approximately 40 franchise units from this brand are in Texas, and this number grows every year.

The total starting cost of the Jamba Juice franchise in Texas is between $164,750 and $563,100. The cost of one time Initial Fee is $35,000 for all groups of investors except for Veterans who have the right to a 45% off discount.

The cheapest option will be to start Jamba Juice Food Truck; this type of store has starting cost under $200,000, and it can deliver an operating profit margin of more than 20%. The most significant advantage of these mobile franchises is that there is no lease property cost, which means more money from the Gross Revenue will stay in the owner’s pocket.

All investors who want to start a Jamba Juice franchise must have a Net Worth of a minimum of $300,000 and own liquid capital ( non borrowed money) in the amount of a minimum of $120,000.

Healthy food brands will be even more popular in the future, so this franchise can be the ideal franchise opportunity for entrepreneurs who want to own a business that will bring profit for many years in front.

Jamba Juice franchise cost and fees in Texas:

Estimated total investment: $164,750 – $563,100
Initial Fee: $10,000 – $35,000
Royalty Fee: 6% of the Gross Revenue
Ad/Marketing Fee: 3% of the Gross Revenue
Franchise Agreement Duration: 20 years

Read Jamba Juice franchise in-depth analysis.

Tropical Smoothie Cafe – Smoothie Brand

First Tropical Smoothie Cafe was opened in 1997 in Florida, and today with more than 1000 franchise units, they are one of the leading brands in the Smoothie Industry. They’re actively searching for new franchisees in the Texas area, so this can be a good business opportunity for all investors who wish to start a business in the Healthy Food market.

Today in Texas, there are more than 60 Tropical Smoothie Cafe franchises presented, and in the last three years, 50 new outlets were opened on the territory of the Lone Star State.

The entrepreneur who wants to own the Tropical Smoothie Cafe franchise in Texas will need to invest $198,500 to $543,500. The one-time Initial Fee cost is $30,000; only the Veterans have the right to the 50% discount on this fee, so they will need to pay $15,000.

Although this is Smoothie Brand, these cafes on the menu also have sandwiches, wraps, salads, flatbreads, and a wide variety of other snacks. So, the Tropical Smoothie Cafe franchise owner can count on income from various products.

There are no franchisor requirements regarding potential franchisees’ past business experience. The Liquid Capital (non-borrowed money) requirement is $125,000, so this franchise opportunity in Texas is available to all entrepreneurs who possess the necessary investing funds.

Tropical Smoothie Cafe franchise cost and fees in Texas:

Estimated total investment: $198,500 – $543,500
Initial Fee: $30,000
Royalty Fee: 6% of the Gross Revenue
National Ad/Marketing Fee: 3% of the Gross Revenue
Local Advertising Fee: 2% of Gross revenue
Franchise Agreement Duration: 15 years

The UPS Store – Postal & Printing Brand

The UPS Store was founded in 1980, and today, it is the leading provider of postal and printing services in the U.S. With more than 400 franchise units in Texas and more than 5,000 across the whole States, they are one of the better-known franchising concepts on the market.

The total estimated starting cost of The UPS Store franchise in Texas is between $185,306 and $474,193. For some starting costs, the franchisor offers in-house financing and, for other expenses, has a relationship with third-party funding sources, which means that all investors will get full support regarding startup financing options.

The UPS stores offer the customers packaging, shipping, postal, printing, and a wide range of business services in high demand among customers. Also, the franchisor’s ongoing support is comprehensive, which means that every new franchisee can count on support in all business segments.

This brand must be mentioned as one of the best franchises to own in Texas because the UPS Stores are one of the most popular service providers among small business owners. Today, small businesses are the backbone of the Lone Star State economy so, a franchisee can count on a large base of loyal customers who will be willing to use this store’s services regularly.

The UPS Store franchise cost and fees in Texas:

Estimated total investment: $185,306 – $474,193
Initial Fee: $29,950
Royalty Fee: 5%% of the monthly Gross Revenue
Ad/Marketing fee: 2.5% of the monthly Gross Revenue
Franchise Agreement Duration: 10 years

Kumon – Education Brand

Kumon opened their first United States center in 1983, and with today’s more than 2,000 locations, they are one of the leading Educational franchising brands. They have more than 150 franchises in Texas, so this can be one of the better business opportunities for investors who want to own a school center.

The estimated investment of starting the Kumon franchise in Texas is between $74,400 and $156,445. The one-time Initial Fee is $2,000, and the ongoing monthly Royalty Fee is $34 per student.

High-cost royalties are a disadvantage of this franchise, but it is possible to make a good income as an owner of this learning center. This is not a franchise opportunity that will deliver millions of dollars, but Operating Profit potential is higher than teachers’ salaries in Texas.

Every new potential franchisee must have a bachelor’s degree, so this franchise opportunity will not be available for everyone. The candidate also must meet the financial requirement of $150,000 Net Worth and own a Liquid Capital (non borrowed money) in the amount of a minimum of $70,000.

The school center, to be profitable, will need to have a certain number of Kumon students enrolled, which will be the most demanding task for every owner of this franchise. But this is one of the better franchising opportunities for investors who find their passion in educating others.

Kumon franchise cost and fees in Texas:

Estimated total investment: $74,400 – $156,445
Initial Fee: $2,000
Royalty Fee: $34 per every full-paying student
Franchise Agreement Duration: 5 years

Servpro – Cleaning & Restoration Brand

Servpro was founded in 1967 in California, and today with more than 1,990 franchise units, this brand is the leading company in the Cleanup & Restoration market. In Texas, there are approximately 130 Servpro franchises, and they are looking for investors who are willing to invest in starting new ones.

The total cost of starting a Servpro franchise in Texas is between $191,825 and $245,700. The one-time Initial Fee cost is $70,000, and the ongoing monthly Royalty Fees are 3-10% of the Gross Revenue.

The most significant advantage of this franchising opportunity is that there is no need for leasing expensive real estate facilities; the franchisee can run a business from his home garage or rent some cheap storage facility where it is possible to hold work equipment.

These franchises offer a wide range of services, such as Commercial Cleaning, Cleanup after water and fire damage, painting, etc.; this list goes on and on. Servpro will be an excellent franchise opportunity for people who don’t feel afraid to get their hands dirty and who are hard workers.

This franchisor offers in-house financing regarding fees and equipment costs; the only financial requirement that every potential franchisee must meet is to own a Liquid Capital (non-borrowed funds) in the amount of a minimum of $105,000.

Servpro franchise cost and fees in Texas:

Estimated total investment: $191,825 – $245,700
Initial Fee: $70,000
Royalty Fee: 3-10% of the monthly Gross Revenue
Ad/Marketing fee: 1-3% of the monthly Gross Revenue
Franchise Agreement Duration: 5 years

Summary

All franchising concepts have their advantages and disadvantages, and these brands presented on this list of the best franchise to own in Texas are not an exception. So all investors must do comprehensive market research if they want to find at least one or more franchises that will meet the available budget and other preferences.

Franchising isn’t a rich quick scheme, and every investor must carefully analyze the franchisor before closing the Franchise Agreement deal. The final choice will depend on the investor’s preferences and the available budget for funding the new business venture.