Five Most Expensive Franchise Types
There are thousands of franchises in all type of industries, some of which can be started for as little as $25,000 and some of which require millions of dollars. Here are five of the most expensive industries for franchise businesses:
1. Hotels and motel franchises
Hotels and motels are generally the largest franchises and are far and away the most expensive. Hotel and motel franchises of all different price and quality levels cost a couple of million dollars to begin. The real estate is expensive to begin with, and then building out the hotel property costs a lot more property size. One of the most expensive franchises in this area may be the Doubletree by Hilton, which can cost upwards of $50 million to get started.
2. Restaurant franchises
Casual restaurants like TGI Fridays cost around $1 million to begin. A Denny's, for example, costs between $1 million to $2 million to start up.
3. Fast food franchises
While not all franchises in this category are very expensive, many of the biggest fast food names, such as McDonald's and Burger King charge higher franchise fees than some lesser-known chains for the universal power of their brand names.
4. Gas station/convenience store franchises
This category is dominated by large national names like 7-Eleven that cost about a million dollars. Only some locations have a gas station, but that addition significantly tacks on to the total costs.
5. Storage franchises
The massive commercial space necessary for a storage franchise is the biggest expense incurred
The Importance of Setting Clear Expectations
So my recommendation is as follows: As early in the relationship as possible, invest the time necessary to clearly describe the shared expectations for how you will work with your customers and, and how you will work with your employees. If you do this well, everyone will be on the same page and when you deliver something a little bit better than they expect, the will see you as someone they trust, like and want to be loyal to – a strong driver of success for any business.
We'll Leave the Light On For You: Motel 6's Advertising Success
When Motel 6 conceived of the idea for a campaign in the mid-1980s, Bodett worked on NPR’s All Things Considered program. The Richards Group, a Dallas- based advertising agency, was hired by Motel 6 in 1985 and thought Bodett would be an excellent spokesman for the chain because of his warm and friendly vocal style. Hired in 1986, Bodett ad-libbed the line, “We’ll leave the light on for you”while in the recording studio for the first time and the slogan was both an instant and lasting success, staying with the chain for over 25 years and counting.
