You have been looking to start your own business, you have raised some initial capital, but how do you know what business to start! Obviously, it has to be something you are good at, but how do you know it is going to work and it will bring in the rewards you seek. Franchisors know their market and have created formulas proven to work in various markets. So, this might be the best time to own a franchise. Here is our pick of top franchises to buy right now!

Checkers Drive-In: Checkers has been around for over 30 years, but has begun franchising only recently in 2010. The fast food franchise is a hot property today and is rated highly for growth prospects, training, and support. With an initial capital investment of $250K and total investments of up to $520K, Checkers is one of the popular picks.

The Cleaning Authority: Our second pick, The Cleaning Authority, has been around from 1996. An initial investment of just $44K will get you started and this home maintenance company will help you finance the remaining investment. The home cleaning industry is currently seeing a rising trend, with more people calling in for domestic cleaning services.

AAMCO Transmissions and Total Car Care: AAMCO offers a range of services under its franchise. Franchises begin at an initial capital of $65K and total investments can range between $227K-333K. AAMCO has been franchising since 1963 and is a brand to reckon with. Recently AAMCO Franchise has shown up on many top 10 lists in the US.

Hyatt Hotels & Resorts: Hyatt has been franchising since 1957. With a capital of $139K-188K. you can buy into a Hyatt franchise. The company has an international reputation and offers more than hotels and resorts. Hyatt is the only hotel franchise to make it to our list.

Maid Brigade: Another home cleaning service in our list, goes to show that the trends in hiring cleaners to clean homes are rising. Maid Brigade has been answering the call to clean homes since 1979. A low investment of $25K-40K can get you a franchise, with options on Financing the total investment of $85K – 125K.

Grease Monkey: The second automotive maintenance franchise in our list, Grease Monkey specializes in the preventive auto care and has been around since 1978. With as little as $30K investors can get their business going. Grease Monkey is not owned by any oil company and offers its franchisees the best possible bargain on oils.

Owning a franchise holds a lot of appeal amongst investors looking to start their first business. Many franchises can be started with as little initial capital as $50K. A plethora of services and goods are provided by franchise businesses in a range of industries that finding one that suits your personality and disposition is easy. Here is our pick of the top 5 franchises you can begin with an initial capital of less than $ 50,000.

The Cleaning Authority: The Cleaning Authority has been franchising since 1996. This home maintenance company has been on the market for over 20 years. Investors can put down an initial investment of just $44K and the company will help finance the remaining investment. The industry trend is on the up and up and The Cleaning Authority is a great way to get into the home maintenance industry.

Maid Brigade: The second home cleaning services in our list, the Maid Brigade has been franchising since1979. Investors with capital as less as $25K-40K can get a franchise with options on financing the total investment of $85K-125K. Trends for the home cleaning industry is on the rise and Maid Brigade is amongst the top hitters in the industry.

Grease Monkey: This preventive auto care franchise has been on the market since 1978 and is the leader in the market. With as little as $30K investors can get their business going, the company will help you finance the remaining cost. Grease Monkey is not owned by any oil company, thus not obliged to buy a specific brand of oil. Maybe that is why they are industry leaders.

Baskin Robbins: The world-famous ice cream brand has been franchising since 1967. The minimum capital required to start a franchise is just $20K. The company will help finance the remaining $125-250K. The company is known to innovate regularly and is an international brand. Returns on investment have been regular and the company is known for the support it provides its franchisees.

360Clean: Another home maintenance company in our top 10 list, 360Clean is relatively new when compared to the rest of this list. The company began franchising in 2005 and has proved its processes over 10 years. Investors need only put in $5000 to get started with this franchise with a total investment of around $10K-16K. The rise in the industry trends compounded by 360Clean’s standing in the industry has made this a sure-fire winner.

Your business has grown well and now it is time to expand. The fastest way to grow your business is to Franchise. But not all businesses can or should be franchised. Let’s skim the waters and see what will it take to get your business franchised.

• Knowing your business: Before franchising your successful business, you must know your business well enough to set procedures. From front desk operations and keeping books to ordering supplies, franchisors have the obligation to teach franchisees how to run their franchise. You must be able to express running the smallest detail of your business in procedural steps. As you set the standards for your franchise, franchisees will have little to no room to improvise.
• Knowing how to grow your business: You may have a business, that is unique to your market, but is the proposition unique to the markets you are exploring. On one end of the spectrum, franchises can be grown as locally, as in a city or as an international brand. Knowing the market, you intend to grow in, is paramount. Growth of your business should be natural or else it will get surprisingly difficult to support your franchise.
• Knowing the legalities of running a franchise: The Federal Trade Commission oversees Franchising in the US State via the FTC franchise rule. Individual states may have specific requirements in the State Disclosure Document, but they too are in compliance with FTC rule. As Franchise laws are myriad and differ from state to state as well as country to country, it is highly recommended that you hire a franchise consultant or lawyer.
• Selecting a franchisee: Enthusiasm is good, but growing a business is 90% hard work, so you will have to select investors who are enthusiastic about the franchise, but are also willing to put in the hours to make it successful. As a franchisor, it is your responsibility to ensure that franchisees hold the same vision for the brand as you do, especially when they are growing the business in a market alien to you.
• Supporting Franchisees: A franchisee earns their livelihood from your franchise. They are responsible for how your franchise performs in a designated area. How you respond to their needs will determine how your franchisee deals with you.

Finally, before taking the plunge, new franchisors must understand that the franchisee-franchisor relation is symbiotic. You will need to get all ships sailing in the same direction to make a successful franchise.

It is time to grow your successful business and scale new heights, and you are faced with the option of going it alone or going to a venture capitalist and offering them a certain amount of control in exchange for capital. Franchising the business opens up a larger market to the new businesses with lower investment and total control of the business. There are few fundamental questions you must ask yourself, before diving headlong into Franchising.

Can your business be franchised?
For a business to be franchised it must have a standing in the market. Good press, Goodwill, and good management are the basics. It is essential to know if your business can spread to other markets in its current form. Your business processes must be streamlined so that they can be taught in a few months. Reading prevalent market trends is a must. Franchisees generally end paying 4-8% in royalties and if they do not recover their investments, they will be displeased, leading to further issues.

Have you done your Due Diligence?
Due diligence refers to all and any appraisals undertaken before selling or buying a business. Make sure that your financials match up to your proposal as investors will check up on your financials too. Ensure that you have a concrete plan for growth. Investors will invest only if you are sure of how you plan to grow the business. Besides the financials, you must also be aware of all the legalities across the states. An understanding of standard franchise contracts, state registrations and federal and state franchising rules are a must. It would be advisable to involve a franchise lawyer at this point.

Have you set up operational standards?
Operational standards help retain quality at across all franchisees universally. A stand operational manual that explains and teaches the business processes are essential as procedures to deal with problems like negligence allegations and consumer liability. Regular checks on facilities are part and parcel of the franchise business, after all when it comes to quality, the buck stops with you.

Can you sell your franchise?
Finally, be prepared to sell and promote your franchise. Attracting potential buyers is an art as well as a science. DVDs and Brochures are just media that helps potential buyers understand what they are buying. At the end of the day buyers are buying the vision you sell them. Buyers must clearly understand your sales, compliance and disclosure dealings.

The idea of owning a franchised business is appealing to many first-time business owners. The lure of buying into an existing, successful business model is hard to resist with many urban myths on the ease of owning and running a franchise. With many franchises failing within the first year of business is proof that the idea of a franchise that runs itself is nothing but a myth. This myth is the first and biggest pitfall of the Franchise business. So, first time investors, ask yourself the ultimate question before you commit to a franchised business, ‘Is Franchising for You?’

The first question before committing to a franchise is to know what franchise to pick. Most investors run through the plethora of available franchises and prefer to take one up, that is more attuned to their personal sensibilities. This may not be the best for the brand or the franchisee. A franchise, like another business, is dependent on the local market. If the product is sellable and has a demand in the area, the chances of it bringing in profits are higher. Buying into a franchise that is attuned to your personality will only offer you a happy work place.

The second question before settling down on a franchised business is, ‘How much time can you give the business?’. The idea of the self-running franchise, working at your own pace, and that the franchisor does most of the thinking are all myths. The reality is that a franchisee is solely responsible for the franchised business. Forget the Franchise myth of a 40-hour week, depending upon the business you choose, you may end up spending 70 hours a week to make sure everything runs right. Franchisees must understand that the business does not run itself, each outlet requires management, either from franchisees or from employees hired for the job.

The most important question to ask yourself before you invest in a franchise is, ‘can you afford the franchise?’ Though Franchisors will take in some of the costs to get the franchise up and running. Most franchises that die within the year die because of low capital. Franchisors can provide average running costs, but the franchise is still a business and needs to have enough funds to run till it is profitable. Most franchises start with a bang, but revenues coming in is solely dependent on local market conditions and how franchisees can tackle problems that arrive on a regular basis.

If you believe you can run your own business, toe the line and follow orders, put in the man hours, then buying into a franchise might bring you the financial rewards you seek.

In the past few decades, franchising has become the quickest way to grow businesses. Franchising is beneficial to both parties, the Franchisor as well as the Franchisee. The franchisor is able to retain the value associated with the Trademark and does not have to bear the cost of building and running a distribution system. The franchisee is able to obtain a successful business module and the benefits of an established business. With the wide range of franchises up for grabs, franchisees can choose franchises that are suitable to their personalities which is essential to fully integrate into the business module.

When a business model has proven itself, it is ripe for franchising. Businesses with branches eventually end up owning capital heavy distribution systems. Franchising the business offers opportunities of growth by reducing capital heavy chains. The Franchisee takes up part of the costs and owns part of the growing business without altering the trademark. The franchisors end up having less to lose, while gaining larger market access. Franchising helps with ad spend too. The ad spend for individual business may be small, but by franchising your business, individual franchisees pool in their ad spend and in turn get wider exposure.

By buying into a franchise, a franchisee is offered the setup of running a well-established brand. The Franchisor will provide all the support as mentioned in the Franchise agreement. The Franchisee is expected to run the business as per the franchisor’s standards. Merely buying into a franchise will not help. Those looking to invest in a franchise, must do their groundwork, as franchisor generally set the rules, though most are open to negotiation. Franchises that are over 10 years old are the safest bets as these franchisors have a sound business model that has worked over the years.

The Federal Trade Commission generally keeps oversight on all franchises through the FTC Franchise Rule. As per the FTC, the Franchisor is obliged to provide the franchisee with the Franchise Disclosure document two weeks prior to any monetary transaction. The Franchise Disclosure Document can be negotiated with the franchisor. Every state can alter the contents of the FDD as long as there are compliant with the rules that govern federal regulatory policy. With a wide array of franchises up for grabs, it is always good to look for those business that hold the same values as you do, thus ensuring you have a good time running your business.