Overview: Coffee vs. Gym vs. Hotel vs. Ice Cream Franchise Opportunities Comparison Guide

Making the business decision to purchase a franchise is an exciting opportunity. For many Americans, the allure of owning your own business fits into the entrepreneurial American spirit. A franchise business is an excellent choice for a first-time business owner who is looking to improve his or her financial situation without taking too big of a risk.

A franchise is a proven way to start a business that will, more than likely, succeed, which is why many look into Starbucks franchise opportunities. Starbucks franchise opportunities are many in counting, as the brand has built a reliable reputation around it.

Here, at AdvisoryHQ, we’ve noticed a lot of folks trying to pick out the best franchise opportunity to fit their liking. Some big questions that we’ve seen folks ask is:

  • Are there many Starbucks franchise opportunities?
  • Is it better to open up a coffee franchise or a gym franchises?
  • How profitable is a hotel franchise?
  • What do I need to know before opening up an ice cream franchise?

Our goal is to help answer all of your questions concerning opening up a coffee shop franchise, hotel franchise, ice cream franchise, and even gym franchises.

With so many franchise businesses to choose from, we hope this comparison guide will help you pick the best franchise opportunity for your personal goals and needs. Becoming a business owner has never been easier or more lucrative than now. 

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This “franchise opportunities and comparison” review article covers the types of franchises below.

Click any of the names below to go directly to the detailed review section for that franchise:

Coffee Franchise Opportunities

Coffee Franchise

Image Source: The Original Starbucks

One of the biggest franchise opportunities available is the coffee franchise. In fact, with the rising popularity of Starbucks and similar coffee chains, many people have begun to look into Starbucks franchise opportunities.

The coffee shop franchise is one of the most trusted in America. It makes perfect sense, then, why so many Americans would begin to look into Starbucks franchise opportunities and coffee franchise opportunities.

So what do you, as a possible future coffee franchise business owner, need to know before taking the plunge to invest?

The Pros & Cons of Coffee Franchise Opportunities

In today’s market, coffee takes up a huge space, meaning that coffee franchise opportunities are very strong. Customers are constantly coming and going in a coffee franchise, unlike other franchise types – whether morning, noon or night, a coffee shop franchise will continue to have people rushing in through its doors looking to purchase a hot cup of coffee.

Besides coffee, a coffee shop franchise will often also serve pastries, baked goods, and other treats that will keep customers coming in and coming back. A coffee franchise is the perfect business for someone looking for a “no frills” opportunity. 

In terms of profitability, a coffee franchise rings in at an average net profit of $600,000. Starbucks franchise opportunities tend to ring in a higher net worth because of its top-tier coffee options and pastries.

coffee shop franchise-min

Image Source: How Profitable are Coffee Shops

Choosing the right franchise brand to open your coffee franchise under is another important decision. Starbucks franchise opportunities tend to weigh out others due to its mainstream preference and top-tier coffee. However, there are many other low-cost coffee shop franchise options to choose from that offer just as great a coffee and pastries selection.

Some brands include Dunkin’ Donuts, Coffee Bean and Tea Leaf, and Crimson Cup franchises.  

The Saturated Coffee Franchise Market

However, with the positives also come the negatives of owning a coffee franchise. Since coffee is such a profitable commodity in the market, the coffee franchise market has become incredibly saturated. With so many coffee shop franchise businesses opening, it can become increasingly difficult to compete with other major brands and still turn a profit.

Coffee franchise opportunities also begin to dwindle when you keep in mind that, these days, many customers are able to brew their own coffee at home. With rising coffee prices, fellow competitors, and at-home coffee machines, a coffee franchise can have a hard time succeeding at first.

Before investing in a coffee franchise, it pays to keep in mind all of the pros and cons involved with the business.

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Gym Franchise Opportunities

With millions of Americans struggling with their health and fitness routines, now is a fantastic time to look into gym franchise opportunities.

As 70% of the American population is considered as overweight or obese, fitness franchises have a great opportunity at success. The market for gym franchises only continues to grow larger as Americans progress toward healthier life goals and lifestyle changes.

The Pros & Cons of Gym Franchises

American’s growing concern over obesity and health problems has prompted a huge spike in the success of fitness franchises. Health club memberships are constantly on the rise, with more and more Americans signing up.

According to IBIS World, the gym franchise market value estimate is around $27 billion. Fifty of the largest gym franchises account for about 30 percent of the estimated revenue coming in. Gym membership rates for 2014, on average, were $41 per month. That’s around $500 per year for each person that signs up to your fitness franchise.

A good deal of gym franchise opportunities surround the clientele and yearly contracts that many customers sign up under. Research has shown that the average salary of gym goers is $75,000. With many gym franchises seeing an 18 percent spike in the month of February, most fitness franchises make their payout through gym members who never even show up.

gym franchises

Image Source: Gym Franchises

For a majority of gym franchises, the minimum cash requirement is around $100,000.

Gym franchises are the perfect business for those willing to make a pretty large upfront investment in order to reap the gym franchise opportunities. With a constant stream of customers always signing up, fitness franchises are a great way to turn a profit while running your own business and being your own boss.

The Downsides of Gym Franchises

Despite the never-ending customer base for fitness franchises and the great gym franchise opportunities in terms of financial gain, there are still some pretty big downsides that need to be explored.

One of the biggest downsides that cause many people to turn away from gym franchise opportunities is the large capital that you must spend in the beginning. Purchasing the brand name, the equipment, the fitness bar, and everything in between for new gym franchises can all add up.

This can be a pretty big investment for many people who are first-time business owners and have no previous experience with gym franchises.

Another downside with gym franchises to consider is that it is involved in the service industry. With service industry businesses, you can expect to devote long hours to ensuring the success of your gym. Fitness franchises require you to hire competent and skilled personal trainers as well.

Unless you hire a trustworthy manager to take care of the fitness franchises, you’ll be showing up and managing your gym franchise for a majority of its operating hours. 

Investing in gym franchises is a big upfront cost. Gym franchise opportunities include a huge payout on your initial investment as the market is constantly growing with a huge yearly revenue estimate.

However, fitness franchises do require you to invest long hours in order to ensure success.

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Hotel Franchise & Opportunities

Hilton hotel franchise

Image Source: Hotel Franchises

As long as there are families, couples, and friends all looking to vacation, there will be a constant market for the hotel franchise. The hotel franchise is unique in that it not only provides a service but also provides an experience.

Unlike coffee franchises, where customers come and go, a hotel franchise builds its reputation through providing the most comforting experience it can for its customers. A hotel franchise is perfect for the new business owner looking to expand his or her travel horizons while making a profit.

Hotel Franchise: An Overview of the Pros

These days, in the United States, roughly 70% of all hotels are associated with a franchised name. Less than 30% of hotels are independent. Signing up with a hotel franchise that is well-trusted can make a world of a difference in terms of revenue and success.

In terms of real estate, investing in a hotel franchise is a wise move. These days, each room in a hotel franchise has increased significantly. If you manage your hotel franchise the proper way, you could be looking at a 25% increase value in your hotel franchise real estate.

Investing in a hotel franchise come with a few plus sides. A hotel franchise offers you brand recognition, marketing assistance, operations systems, and buying power. All of these aspects help make your hotel franchise profitable. International marketing will help bring clients to your hotel. Brand recognition will bring old and new clientele while operations systems will have your hotel franchise running smoothly.

With a hotel franchise, you avoid the entire startup process of building up your hotel’s brand from scratch. Your hotel franchise will help you to acquire customers much more easily and sustain your business model without difficulty.

The hotel business has been steadily increasing in revenue since the 2008 crisis. Prices for the construction and labor of a hotel franchise have also gone down, making it an even more affordable investment.

The hotel franchise industry is a fantastic option as many of the positives associated with franchising help make it successful. For those looking for an easy way to start their own business, revolving around traveling, then a hotel franchise is the perfect option.

Disadvantages of Owning a Hotel Franchise

Despite the fantastic opportunities surrounding the hotel franchise industry, there are still some considerable disadvantages that must be taken into account.

Unlike many other franchises, the hotel franchise is notoriously known for having huge initial costs. Building a hotel franchise from the ground up requires a significant amount of capital. First-time business owners may have a difficult time coming up with such capital for their first hotel franchise.

Another big disadvantage that cannot be overlooked is operational restrictions regarding each hotel franchise. An aspiring businessperson may find it frustrating that many changes cannot be made to certain aspects of the hotel franchise.

If the hotel franchise provides you with an agreement that states you must abide by its merchandizing, utilities, etc., then you cannot go around it, regardless of whether you find other more cost-effective means.

However, taking the plunge to invest in a hotel franchise is an exciting way to start a new business. Since 2011, the hotel industry has been seeing great increases in revenues and real estate property values.

Although the initial upfront capital may be much for an inexperienced business owner, the ease with which you will run your hotel franchise is truly worth the initial cost. 

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Ice Cream Franchise & Opportunities

For those of you with a particularly strong sweet tooth, the prospect of investing in an ice cream franchise can be alluring. Americans have a soft spot for their sweets, and an ice cream franchise can prove to be more profitable than you may have originally thought.

These days, ice cream revenues are estimated at roughly $36 billion globally. An ice cream franchise is the perfect opportunity for someone interested in the restaurant industry. 

The Upside to the Ice Cream Franchise

An ice cream franchise is a hugely profitable business in the United States. Americans spend roughly 1/3 of their food and beverage budgets on foods that they deem taste good. This means that 1/3 of their budget is going toward businesses like an ice cream franchise.

With so many viable ice cream franchise options available, the possibilities of rendering a successful ice cream franchise are endless.

From frozen yogurt shops, ice cream shops, homemade ice cream brands, and tons of other customizable ice cream options, the ice cream franchise is filled with profitable opportunities.

The market for an ice cream franchise only continues to expand. With the market currently geared toward frozen yogurt shops, investing into an ice cream franchise that incorporates both ice cream and frozen yogurt is your best way toward financial success.

ice cream franchise

Image Source: Ice Cream Franchises

Disadvantages to Investing in an Ice Cream Franchise

A huge disadvantage associated with an ice cream franchise is that the business requires a ton of foot traffic to drive sales. Picking a high-traffic location for your ice cream franchise is essential to staying successful.

At least 28% of all ice cream purchases were impulsive.

Another major disadvantage with an ice cream franchise is that the business is seasonal. If you start your business in an area with changing seasons, then your ice cream franchise business will dwindle during the winter months.

Overall, with a profit margin of $20 billion in the United States alone, the ice cream franchise is a highly lucrative choice. Many options are available to franchisers that are looking for a unique spin on the classic ice cream franchise.

Conclusion: Franchise Opportunity Overview

Choosing the right franchise opportunity for your next big investment is all about preference and personal finances.

Coffee franchise opportunities may be more intriguing to a coffee aficionado while investing in gym franchises may be the perfect fit for someone looking to be highly involved in their business.

Your financial reward will greatly depend on your ability to put forward the initial capital necessary to start the business and your management skills.

After looking through our detailed overview, choosing between a coffee franchise, hotel franchise, ice cream franchise, and gym franchises can be made easier. 

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Reasonable efforts have been made by AdvisoryHQ to present accurate information, however all info is presented without warranty. Review AdvisoryHQ’s Terms for details. Also review each firm’s site for the most updated data, rates and info.

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