Best Franchise Opportunities in California

There is a lot of franchise opportunities in California, and we will present to the interested investors the best of them. Choosing an ideal franchising concept is a process that will take some time because there is a lot of brands that operate in the same niches of business.

More than thirty-nine million people are residents of this state. This number grows every year because California provides excellent opportunities and a good foundation for starting a small business. Franchising is significantly developed in this state because it involves fewer risks than starting an independent business venture.

The Californian economy is the leading in the U.S, so there are a lot of franchise opportunities for investors interested in this business concept. This state has the largest gross state product (GSP) in the United States, and that fact speaks for itself.

Best Franchise to Own in California

Jazzercise – Fitness Brand

The First Jazzercise gym opened its door in 1969. Today, with more than 9000 gyms, this company is one of the better-known brands in the Fitness Industry. There are only a few Jazzercise gyms in California, so this franchise can be a good business opportunity for fitness trainers who have an entrepreneurial spirit.

The total cost of starting a Jazzercise franchise is between $3,700 and $32,750. This is the cheapest fitness franchise on the US market, and because of that, it must be included in this list of best franchises to own in California.

The number of people who go to the gym increases every year, so this industry has had high growth in the last few decades. This type of franchise can be a very lucrative business venture, so many entrepreneurs are investing money in services or products related to fitness.

The ongoing Royalty Fee of the Jazzercise franchise is 20% of the gross revenue; in exchange for this fee, the franchisor provides to the franchisee support in all business segments thru the whole duration of the franchise agreement.

Jazzercise franchise cost and fees in California:

Estimated total investment: $3,700 to $32,750
Initial Fee: $1,250
Royalty Fee: 20% of gross revenue

Fatburger – Fast Food Brand

Fatburger was founded in 1947, and they are one of the oldest companies in the burger industry. Today, they have more than 180 franchise units, and more than 20 of those franchises are located in California.

This company is currently searching for new franchisees in California, so this can be an ideal franchise opportunity for those entrepreneurs who want to try their hand in Burger Industry.

Investors who want to start the Fatburger franchise in California will need investment funds in the range between $ 450,000 and $ 900,000. The initial franchise fee that every new franchisee must pay is $50,000.

Every potential franchisee must own $ 500,000 of non-borrowed funds, which is the main financial requirement that every investor must meet. There is no requirement regarding past business experience, so that this franchise opportunity will be available to all entrepreneurs.

Fatburger provides excellent support in all aspects of the business to their franchisees during the whole duration of the franchise agreement. This franchise is low-cost compared to the offer of other similar brands in this industry, and because of that, we put this brand on the list of the best franchise to own in California.

Fatburger franchise cost and fees in California:

Estimated total investment: $ 450,000 – $ 900,000
Initial Fee:$ 50,000
Royalty Fee: 6% of the gross revenue
Ad/Marketing Fee: 4% of the gross revenue
Franchise agreement duration:15 years

Taco Bell – Fast Food Brand

The first Taco Bell restaurant was opened in 1962 in Downey, California. More than 7,500 franchise units of this brand are currently operating on the market, which puts this franchise in the top 5 companies by the number of franchise units.

The cost of starting Taco Bell in California is between $ 576K and $ 3.4M. The total cost depends primarily on the type of franchise; the new Inline Restaurant will cost between $ 575,600 and $ 1,415,100, and the Traditional Unit will cost between $ 1,298,600 and $ 3,370,100.

The initial Taco Bell franchise fee is $ 45,000 for Traditional Units and $ 25,000 for new Inline restaurants. The ongoing franchise fees are a Royalty Fee of 5.5% and an Ad Fee of 4.25% of gross revenue.

When we talk about the best franchise to own in California, Taco Bell must be on the top because this brand’s restaurants produce a good Operating Profit Margin. So, this will be a very profitable business for investors who are Mexican food lovers.

Also, the franchise agreement has 25 years duration, which means that the investor can build his long-term business future in partnership with this brand.

Taco Bell franchise cost and fees in California:

Estimated total investment: $ 576K – $ 3.4M
Initial Fee: $ 25,000 – $ 45,000
Royalty Fee: 5.5% of the gross revenue
Ad / Marketing Fee: 4.25% of gross revenue
Franchise agreement duration: 25 years

Domino’s Pizza – Pizza Brand

The first Domino’s Pizza was opened in 1960, and today, they are the second-largest pizza chain in the U.S. This company has a few hundred franchise units in California, and they are very popular among Californian investors.

The total cost of starting Domino’s Pizza in California is between $119,700 and $461,450; this financial prediction includes an initial fee of $25,000. This is a relatively low-cost franchise, and because of that, this franchise will be available also to investors that don’t have a large startup fund.

For the U.S. Army Forces Veterans, the initial fee will be only $5,000 (Veterans have the right to a $20,000 discount).

This franchise can be an ideal business opportunity for all investors who want to own a pizzeria in California. Domino’s pizza shops are very popular among customers, and every investor can benefit from this brand’s large base of loyal customers.

By investing in this franchise concept, franchisees will get support in all business segments, which can be especially helpful for all those people who are starting their first business venture.

Domino’s Pizza franchise cost and fees in California:

Estimated total investment: $119,700 – $461,450
Initial Fee: $25,000
Royalty Fee: 5% of the gross revenue
Ad / Marketing Fee: 3% of the gross revenue
Franchise agreement duration: 10 years

Smoothie King – Smoothie Brand

Steven Kuhnau opened the first Smoothie King Shop in 1973. Today, this brand has more than 1,300 franchise units, and it is the largest U.S smoothie chain. The Smoothie Industry is growing every year, so this and similar franchising concepts can be a good investment for the future.

There are only eight Smoothie King shops in California, so this franchise can be a perfect business opportunity because this market is not oversaturated. Also, these kinds of shops are very easily managed, and the owner of this franchise doesn’t need past managerial business experience to be successful.

The total cost of starting a Smoothie King franchise in California is $ 260,000 do $ 850,000.

The main advantage of this kind of shop is that they have an excellent Operational Profit Margin and fast Return of Investment (ROI). This business can be very profitable, so we must put Smoothie King on the list of the best franchises to own in California.

The initial franchise fee is $15,000 to $30,000; this fee depends on the chosen type of franchise. This company is part of the VetFran Program; Veterans of U.S. Army Forces have the right to 20% off the initial fee.

Smoothie King offers a proven business model, and it can be an ideal opportunity for all those California investors who want to start a franchise in the Bar&Juice Industry.

Smoothie King franchise cost and fees in California:

Estimated total investment: $ 260,000 – $ 850,000
Initial Fee: $15,000 – $30,000
Royalty Fee: 6% of the gross revenue
Ad / Marketing Fee: 3% of the gross revenue

Tropical Smoothie – Cafe & Bar Brand

First Tropical Smoothie Cafe was opened in 1997 in Florida; today, they are one of the largest chains in the Juice&Bar Industry. This brand is not so widespread in California, so this can be a good business opportunity for investors who want to start something different than the usual cafe shop.

Since 1997 this brand has had constant growth, and today they have more than 1000 franchise units across the whole U.S. This company plans to open 2000 more franchise units in the next few years, so they search for new franchisees in the California territory.

The total cost for starting a Tropical Smoothie franchise in California is between $257,000 and $560,000; this financial prediction includes an Initial Fee of $30,000 (U.S. Veterans have the right to a 50% initial fee discount) and a Grand Opening Marketing Fee of $10,000.

Smoothies are the main products of this company, but Tropical Smoothie shops also sell hot and cold beverages, sandwiches, and other snacks; all these products have a good profit margin, so this can be a very lucrative business.

Tropical Smoothie Cafe franchise cost and fees in California:

Estimated total investment: $257,000 – $560,000
Initial Fee: $30,000
Grand Opening Marketing Fee: $10,000
Royalty Fee: 6% of gross revenue
National Marketing Fee: 3% of gross revenue
Local Ad Fee: 2% of gross sales

Dunkin Donuts – Doughnut Brand

Bill Rosenberg opened the first Dunkin Donuts shop in 1950 in Quincy, Massachusetts. Today, this company has more than 13,000 franchise units; more than 50 are located on the territory of California.

This company is one of the largest doughnuts and coffee chains, and because of that, we must put it on the list of the best franchises to own in California. This is not a low-cost franchise; investors will need to own a significant investment fund if they opt for this franchising concept.

The total cost of starting a Dunkin Donuts franchise in California is between $199,700 and $1,687,200. The ongoing fees that every franchisee must pay from the gross revenue are a Royalty Fee of 5.9% and Ad/ Marketing fee of 5%.

For the territory of California, the initial franchise fee cost is $60,000, and Marketing Start-Up Fee is $10,000; these fees are one-time costs and must be paid immediately after closing the Dunkin Donuts franchise agreement.

The advantage of starting a small business in partnership with this franchisor is that investors will get a proven business model from a well-known brand with a large base of loyal customers.

Dunkin Donuts franchise cost and fees in California:

Estimated total investment: $199,700 – $1,687,200
Initial Fee: $60,000
Marketing Start-Up Fee: $10,000
Royalty Fee: 5.9% of gross revenue
Ad/Marketing Fee: 5.0% of gross revenue

Duck Donuts – Doughnut & Coffee Brand

Duck Donuts is the most growing company on the doughnut market, and it has one of the overall best franchising opportunities for all investors interested in this business concept.

Today this company has more than 100 franchise units across the United States and Canada. Only four shops of this brand are located in California, so this can be an excellent low-cost replacement for California-based investors who want to start a Dunkin Donuts franchise.

The total cost of starting Duck Donuts in California is between $351,164 and $541,448; this is a low-cost franchise compared to the other doughnut brands’ offers. Also, the ongoing fee cost of this franchising concept is only 7% of the gross sales.

This brand has one of the lowest ongoing fees, and because of that, we put this franchise on the list of the best franchises to own in California. This company will grow even more in the future, so starting a shop from this franchisor can be a great investment for the future.

Duck Donuts franchise package is among the best in the market, so this will be an ideal business opportunity for rookie entrepreneurs who want to start a profitable small business with a low-risk failure rate.

Duck Donuts franchise cost and fees in California:

Estimated total investment: $351,164 – $541,448
Initial Fee: $40,000
Royalty Fee: 5% of gross revenue
Ad/Marketing Fee: 2% of gross revenue

Big O Tires – Auto Repair Brand

With more than 450 franchise units, Big O Tires is one of the biggest U.S. Auto Repair brands. This company has more than 100 franchises in California, so we can say that they are especially popular among Californian investors.

1963 was opened first Big O Tires shop, and since then, they managed to become one of the leading Tire Repair chains in the U.S. California has the highest number of registered vehicles in the United States, and because of that, Auto Repair services are in high demand in this state.

The total cost of starting a Big O Tires shop in California is between $314,000 and $1.1M; this financial estimation includes an initial franchise fee of $35,000. The ongoing fees that franchisees must pay regularly are 2% to 5% of the unit’s gross revenue.

The Veterans of the United States Army Forces have the right to 50% initial fee off discount, so this can be an ideal business opportunity for military persons who want to start a new career in Auto Industry.

Big O Tires is one of the best franchises to own in California, and this is due to a good Operating Profit Margin that these shops make. Also, the franchisor has connections with third-party financing sources, which makes it a lot easier to start this shop.

Big O Tires franchise cost and fees in California:

Estimated total investment: $314,000 – $1.1M
Initial Fee: $35,000
Royalty Fee: 2-5% of the gross revenue
Ad / Marketing Fee: 0.9% of the gross revenue

Chem-Dry – Cleaning Brand

Chem-Dry was founded in California in 1977. Today with more than 4000 franchise units, it is one of the most widespread cleaning brands in the U.S. In California, cleaning services are in high demand, so starting a cleaning franchise can be a profitable business venture.

The total cost of starting a Chem-Dry franchise in California is between $68,000 and $ 107,000. The franchisor offers in-house financing options, which simplifies the process of starting because investors don’t need to search for third-party financing sources.

The most significant advantage of the Chem-Dry franchise compared to other similar companies is their ongoing Royalty fee. Every franchisee is obligated to pay the ongoing fee of only $414.32 per month; this fee can’t be higher no matter how much gross revenue the unit makes.

Usually, the ongoing franchise fees are paid according to the gross revenue, which can be an enormous burden to profitability. So, because of this flat ongoing fee, this is the best cleaning franchise to own in California.

Also, the franchisee doesn’t need to pay ongoing fees for the first four months after starting a business; this reduces stress because we all know that the first few months after starting a new business are most challenging.

All entrepreneurs who are searching for a cleaning franchise business opportunity in California must outline this company offer because Chem-Dry has one of the most affordable franchise packages in the Cleaning Industry.

Chem-Dry franchise cost and fees in California:

Estimated total investment: $68,000 – $ 107,000
Ongoing Fees: $414.32 per month

Summary

Investors who are considering starting a franchise in California must be aware that this business model also has its risks. People often misunderstand this business model and think there is no need for hard work when you own a franchise.

We did not guide this list of the best franchise to own in California to present only well-known brands to potential investors; our focus was on pointing out the benefits of ”smaller” franchise brands with a very good franchise package.

Every investor who wants to own a franchise in California must carefully study what the franchise package of the franchisor contains. This type of business is not a rich quick scheme, and that is why before signing a franchise agreement, you need to find out all the advantages and disadvantages of a franchisor’s offers.