Top Three Franchises for 2019

When you think of a franchise, you think of food — Dunkin Donuts and McDonalds. Both of these companies have strong brands and bring in a great deal of money. We even see ads looking for people to become franchisees. What exactly is a franchise? And why do people buy into them? When you (the franchisee) buy a part of a business from the owner (franchisor), you are getting the rights to sell the company’s products and/or services as well as use its brand, processes, business model and equipment. Although you pay the franchisor an initial fee and royalties pertaining to the business, you do get support and use of the trademark. It’s important to note that the franchisor retains the license to the business whereas the franchisee can only use it. The franchisor grows his business through the franchises. It is not the same as growing a business by increasing its locations (e.g. Starbucks).

People are quick to buy a franchise because they are essentially cash cows. They also want to learn how to manage a business. That said, let’s take a look at some franchises that will be popular this year.

  1. McDonald’s — This will always be a popular franchise. The company started out as a small hamburger shop and became a multi-million dollar corporation. Brothers Maurice (Mac) and Richard McDonald opened their restaurant in 1948 in San Bernardino, California. Restaurant equipment salesman Ray Kroc saw how the brothers sold their food cheaply with a self-serve counter and came up with the idea of franchising the restaurant. The first franchise opened in 1954 in Des Plaines, Illinois. McDonalds continues to grow based on its brand, quality of food and reinvention (e.g. renovated restaurants).
  2. Dunkin Donuts — The fast food chain is now called Dunkin (or DD). The franchise decided last year to drop the “Donuts” and focus on beverages. Like McDonalds, the chain has grown due to its brand, products and convenience. It was started by William Rosenberg in 1948 and was originally called Open Kettle. The mission was to sell donuts and coffee quickly. However, after meeting with consultants, it was changed to “make and serve the freshest, most delicious coffee and donuts quickly and courteously in modern, well-merchandised stores.” The name was changed to Dunkin Donuts in 1950 and the first franchise opened in 1955. The mission holds true today with numerous franchises across the nation.
  3. The UPS Store — Originally called Mail Boxes Etc., this postal services company grew and embraced technology. It created the “business services category” with its digital capabilities for small businesses. In 2001, UPS acquired Mail Boxes Etc. and became the world’s “largest franchisor of retail shipping, postal, printing, and business services centers.” In 2003, the UPS Store Brand was introduced. In 2012, the Mail Boxes Etc. was absorbed into the UPS Store. Last year, the UPS Store was ranked #1 by Entrepreneur Magazine’s annual “Franchise 500.” There is no doubt this franchise will continue to be popular.

Themed Hotels Are Gaining Popularity

When going on vacation, you plan the activities around yourself or your family. If you have children, you include fun things to do, such as theme parks or beaches. For adults, you would go to the regions known for its wine, beer or cuisine, aside from the scenery. In the past ten years, there have been vacations designed around a theme, and hotels have not only have taken part in these themes, but some have their own individual theme. Why would a hotel create its own theme? There have always been themed hotel rooms (e.g. the Honeymoon Suite), but aside from theme-park resorts, themed hotels have been few until recently. What sparked my curiosity is the number of themes. And each state has its own claim to themed hotels, from ones that are underwater to the ones in trees.

The popularity of themed hotels began in the past decade, with the increase of boutique hotels. More than receiving customer feedback that guests would like more fitness equipment in the hotel gym or even creating a hotel gym, these hotels decided to make themselves stand apart from their competition (e.g. hotel chains) and create their own guest experience. There are many hotels themes that are based off of pop culture (including movies and TV shows), such as The Clown Motel in Tonopah, Nevada, where everything is clowns. This will create smiles or cringes, since clowns have been made to be evil in some movies (e.g. It). Another theme is animals. The Dog Bark Park Inn is built to look like a huge dog. Located in Cottonwood, Indiana, the beagle-shaped hotel offers a low-tech stay with old-fashioned games instead of the latest TV in rooms. And there are themes based on nostalgia. The Legoland Hotel offers nostalgia for parents (LEGO is 86 years old) and plenty of fun for kids. The brightly-colored hotel located in Winter Haven, Florida, is an alternative to the beach hotels. It not only has themed rooms, but the entire resort is one big LEGO set.

Staying a themed hotel is not cheap, though. You can expect to pay hundreds of dollars a night. However, the experience is worth it, especially if it’s on a person’s bucket list. These hotels make every stay memorable without the guests paying for the activities in the town they are located in. They are easy to find since people post their experiences, which the hotel owners encourage since it’s free publicity. The number of themed hotels increases each year, and you can count on unique themes.